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CCNA PRINCE2 Processes Questions

75 of 479 questions · Page 6/7 · PRINCE2 Processes · Answers revealed

376
MCQhard

A Project Manager is planning the next stage and updates the Project Plan. In which process is this activity performed?

A.Managing a Stage Boundary
B.Directing a Project
C.Initiating a Project
D.Controlling a Stage
AnswerA

Correct. SB updates the Project Plan and produces the next Stage Plan.

Why this answer

Updating the Project Plan when planning the next stage is a key activity in the Managing a Stage Boundary process. This process is specifically designed to provide the Project Board with information needed to approve the next stage, which includes updating the Project Plan to reflect the current stage's actuals and the revised plan for the remainder of the project.

Exam trap

The trap here is that candidates confuse 'Controlling a Stage' (which handles day-to-day work) with 'Managing a Stage Boundary' (which handles stage-end planning and plan updates), leading them to incorrectly select option D.

How to eliminate wrong answers

Option B (Directing a Project) is wrong because this process covers the Project Board's decision-making and overall project oversight, not the detailed planning and plan updates performed by the Project Manager. Option C (Initiating a Project) is wrong because this process creates the initial Project Plan and PID, but updating the plan during stage boundaries occurs later in the project lifecycle. Option D (Controlling a Stage) is wrong because this process focuses on day-to-day management of work packages and issue handling within a stage, not on planning the next stage or updating the Project Plan.

377
MCQmedium

During the Managing Product Delivery process, who produces the Checkpoint Report?

A.Project Manager
B.Team Manager
C.Project Support
D.Project Board
AnswerB

The Team Manager produces Checkpoint Reports for the Project Manager.

Why this answer

The Team Manager is responsible for producing Checkpoint Reports to inform the Project Manager of progress within a Work Package.

378
MCQmedium

Which process includes the activity of 'Authorize Work Packages'?

A.Directing a Project
B.Controlling a Stage
C.Managing Product Delivery
D.Starting Up a Project
AnswerB

The Project Manager authorizes Work Packages as part of day-to-day management.

Why this answer

Authorizing Work Packages is an activity in the Controlling a Stage process, where the Project Manager assigns work to Team Managers.

379
MCQeasy

Which document is the key output of the Initiating a Project process?

A.Project Initiation Documentation
B.Checkpoint Report
C.Project Brief
D.End Project Report
AnswerA

The PID is the key output that includes the Business Case, plans, and management approaches.

Why this answer

The PID is the comprehensive document that defines the project and provides a basis for decision-making. Other documents like the Business Case are updated but the PID is the key output.

380
MCQmedium

During the Directing a Project process, the Project Board receives an Exception Report. What action should the Project Board take?

A.Authorize the next stage as planned
B.Request a new Project Brief
C.Assess the situation and, if appropriate, approve an Exception Plan
D.Instruct the Project Manager to continue with the current plan
AnswerC

Correct: The Board reviews the exception and may approve an Exception Plan to bring the project back within tolerance.

Why this answer

An Exception Report is raised when a tolerance is forecast to be exceeded. The Project Board must assess the situation and decide whether to approve an Exception Plan, amend the project, or close the project. Option C correctly reflects this action.

381
Multi-Selectmedium

Which TWO of the following are outputs of the Initiating a Project process?

Select 2 answers
A.End Project Report
B.Exception Plan
C.Risk Management Approach
D.Project Brief
E.Project Plan
AnswersC, E

The Risk Management Approach is part of the PID produced in IP.

Why this answer

IP produces the PID (which includes the Risk Management Approach) and the Project Plan, among others.

382
MCQmedium

A Work Package has been completed and the products have passed quality checks. What should the Team Manager do next in the Managing Product Delivery process?

A.Raise an Exception Report
B.Update the Project Plan
C.Close the project stage
D.Deliver the Work Package to the Project Manager
AnswerD

After completion, the Team Manager delivers the Work Package and obtains acceptance.

Why this answer

The final activity in MP is to 'Deliver a Work Package', which involves handing over the completed products to the Project Manager and obtaining formal acceptance.

383
MCQhard

In the Closing a Project process, what is the Project Board's responsibility?

A.To produce the Lessons Report
B.To hand over the project products to the operational environment
C.To confirm the project has met its objectives and authorize closure
D.To release the project resources
AnswerC

In CP, the Project Board reviews the End Project Report and formally authorizes project closure.

Why this answer

The Project Board authorizes the closure of the project after reviewing the End Project Report and Lessons Report, ensuring all products are accepted and benefits review plans are in place.

384
MCQmedium

Which document is the key output of the Initiating a Project process?

A.Exception Report
B.Project Brief
C.Project Initiation Documentation
D.End Stage Report
AnswerC

The PID is the key output of IP, providing the foundation for the project.

Why this answer

The Initiating a Project process is focused on establishing a solid foundation for the project, and its key output is the Project Initiation Documentation (PID). The PID consolidates all essential information—such as the business case, project plan, risk register, and project controls—into a single, approved document that defines the project's scope, objectives, and governance. This document is used to obtain authorization to proceed with the project's delivery stages.

Exam trap

The trap here is that candidates often confuse the Project Brief (created in Starting Up a Project) with the Project Initiation Documentation (created in Initiating a Project), because both contain similar high-level information, but the PID is far more detailed and is the formal baseline for project execution.

How to eliminate wrong answers

Option A is wrong because an Exception Report is an output of the Managing a Stage Boundary or Controlling a Stage process, used to report deviations from stage tolerances, not a key output of Initiating a Project. Option B is wrong because the Project Brief is created during the Starting Up a Project process as an input to Initiating a Project, not as its key output. Option D is wrong because an End Stage Report is produced at the end of each management stage (as part of Managing a Stage Boundary) to report stage performance, not during project initiation.

385
Multi-Selectmedium

Which TWO of the following are responsibilities of the Project Manager during the Controlling a Stage process?

Select 2 answers
A.Produce the End Stage Report
B.Authorize Work Packages
C.Review the Business Case for continued viability
D.Produce the Lessons Report
E.Authorize project closure
AnswersB, C

Done in CS.

Why this answer

During CS, the PM authorizes Work Packages and reviews the Business Case (if needed). Producing Highlight Reports is also a CS activity, but the question asks for two; authorizing Work Packages and reviewing the Business Case are both correct. Producing the End Stage Report is from SB.

386
MCQeasy

Which document is the key output of the Initiating a Project process?

A.Project Initiation Documentation
B.Project Brief
C.Exception Report
D.End Project Report
AnswerA

The PID is the comprehensive document produced in IP.

Why this answer

The Initiating a Project process is where the project's baselines are established, and the key output is the Project Initiation Documentation (PID). The PID consolidates all the information needed to justify the project, define its scope, and provide a basis for decision-making. It is the definitive document that is approved by the project board to authorize the project to proceed.

Exam trap

The trap here is that candidates often confuse the Project Brief (created earlier) with the PID, or think that the End Project Report is a key output of initiation because it summarizes the project, but PRINCE2 specifically tests the sequence of processes and their distinct outputs.

How to eliminate wrong answers

Option B is wrong because the Project Brief is created during the Starting Up a Project process, not the Initiating a Project process; it provides initial high-level information but is not the comprehensive baseline document. Option C is wrong because an Exception Report is an issue management document produced during the Managing a Stage Boundary or Directing a Project process when a stage is forecast to exceed tolerance, not a key output of initiation. Option D is wrong because the End Project Report is produced during the Closing a Project process to evaluate project performance against the PID, not during initiation.

387
MCQmedium

A project is in the Closing a Project process. What should the Project Manager produce to recommend project closure?

A.Exception Report
B.End Project Report
C.End Stage Report
D.Project Brief
AnswerB

The End Project Report is the key output that summarizes the project and recommends closure.

Why this answer

The Project Manager produces an End Project Report and a Lessons Report, and then recommends closure to the Project Board.

388
Multi-Selecthard

Which THREE activities are part of the Controlling a Stage process?

Select 3 answers
A.Authorize Work Packages
B.Produce the Project Initiation Documentation (PID)
C.Review progress and update stage status
D.Approve the next Stage Plan
E.Escalate issues and risks that exceed stage tolerances
AnswersA, C, E

Correct: The PM authorizes Work Packages in CS.

Why this answer

Authorizing Work Packages, reviewing progress, and escalating exceptions are all activities in CS. Producing the PID is done in IP. Approving the next Stage Plan is done by the Project Board in DP.

389
MCQmedium

A Team Manager completes a Work Package and requests formal acceptance of the product. Which process handles this?

A.Managing a Stage Boundary
B.Managing Product Delivery
C.Closing a Project
D.Controlling a Stage
AnswerB

MP includes delivering the completed product and obtaining acceptance.

Why this answer

Managing Product Delivery is the process where the Team Manager executes the work and delivers completed products to the Project Manager for acceptance. Controlling a Stage is the PM's process for managing the stage; Managing a Stage Boundary focuses on stage end and next stage planning; Closing a Project handles final project closure.

390
MCQmedium

What is the purpose of the Starting Up a Project process?

A.To appoint the Project Board
B.To decide whether to initiate the project
C.To produce the Project Initiation Documentation
D.To close the project
AnswerB

SU determines if there is sufficient justification and information to proceed to initiation.

Why this answer

SU ensures that the project has a viable business case and necessary foundation before committing to full initiation. It checks if the project is worthwhile and doable.

391
MCQeasy

In the Directing a Project process, which of the following is a key responsibility of the Project Board?

A.Producing Highlight Reports
B.Authorizing the next Stage Plan
C.Managing day-to-day work within a stage
D.Accepting Work Packages
AnswerB

Correct. The Project Board authorizes stage plans.

Why this answer

In PRINCE2, the Directing a Project process is the decision-making layer where the Project Board exercises overall control. A key responsibility is authorizing the next Stage Plan, which formally approves the detailed plan for the upcoming management stage and commits the resources required to execute it. This ensures the project remains viable and aligned with business justification before proceeding.

Exam trap

PeopleCert often tests the distinction between the Project Board's strategic control (authorizing stages) and the Project Manager's tactical execution (producing reports, managing daily work), leading candidates to confuse the two roles.

How to eliminate wrong answers

Option A is wrong because producing Highlight Reports is a responsibility of the Project Manager, not the Project Board; the Project Board receives these reports to monitor progress. Option C is wrong because managing day-to-day work within a stage is the responsibility of the Project Manager, who coordinates the team and handles operational issues. Option D is wrong because accepting Work Packages is a task performed by the Team Manager or team members, not the Project Board; the Project Board authorizes the stage plan that contains the work packages.

392
MCQmedium

During the Controlling a Stage process, who is responsible for producing Checkpoint Reports?

A.Team Manager
B.Project Manager
C.Project Board
D.Project Support
AnswerA

The Team Manager produces Checkpoint Reports as part of Managing Product Delivery.

Why this answer

Checkpoint Reports are produced by the Team Manager and sent to the Project Manager to inform about progress within a Work Package.

393
MCQmedium

During the Initiating a Project process, which document is the key output that defines how the project will be managed?

A.Project Initiation Documentation
B.End Stage Report
C.Project Brief
D.Business Case
AnswerA

The PID is the definitive document produced in IP, containing plans, approaches, and baselines.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It consolidates all baselines for managing the project.

394
Multi-Selectmedium

Which TWO of the following are activities performed in the Directing a Project process?

Select 2 answers
A.Produce the Project Initiation Documentation
B.Take corrective action within stage tolerances
C.Manage day-to-day work of a stage
D.Authorize a stage or exception plan
E.Authorize initiation
AnswersD, E

The Board authorizes plans.

Why this answer

The Directing a Project process includes the activity of authorizing a stage or exception plan, which is a key decision-making step performed by the project board. Option E is correct because authorizing initiation is also an activity within Directing a Project, where the project board gives formal approval to proceed with the initiation stage. These activities ensure the project board maintains control over major decisions and boundaries.

Exam trap

PRINCE2 often tests the distinction between the project board's strategic activities in Directing a Project and the project manager's or team manager's operational activities in other processes, leading candidates to confuse day-to-day management or documentation production with board-level authorization.

395
Multi-Selecthard

Which TWO of the following are responsibilities of the Project Manager during the Controlling a Stage process?

Select 2 answers
A.Review the Business Case and decide on stage tolerances
B.Escalate issues that cannot be resolved within stage tolerances
C.Approve the Project Plan
D.Produce Checkpoint Reports
E.Authorize Work Packages
AnswersB, E

The PM escalates issues to the Project Board via Exception Reports when tolerances are exceeded.

Why this answer

During CS, the Project Manager authorizes Work Packages, reviews progress, and reports to the Project Board. Producing Checkpoint Reports is a Team Manager responsibility, and making decisions on project tolerances is a Project Board responsibility.

396
Multi-Selecteasy

Which TWO documents are produced during the Starting Up a Project process?

Select 2 answers
A.Project Initiation Documentation
B.End Stage Report
C.Stage Plan for the next stage
D.Initiation Stage Plan
E.Project Brief
AnswersD, E

The plan for the initiation stage is created in Starting Up a Project.

Why this answer

The Starting Up a Project (SU) process produces the Project Brief and the Initiation Stage Plan. The Project Brief provides a high-level overview of the project's justification, scope, and approach, while the Initiation Stage Plan details the activities, resources, and controls for the initiation stage. Both are mandatory outputs of SU, ensuring the project has a clear mandate and a plan for the next phase before committing to full initiation.

Exam trap

PeopleCert often tests the distinction between outputs of Starting Up a Project versus Initiating a Project, specifically confusing the Project Brief (SU) with the Project Initiation Documentation (IP) and the Initiation Stage Plan (SU) with a Stage Plan for a subsequent stage (SB).

397
MCQeasy

Who is responsible for authorising the initiation of a project?

A.Project Manager
B.Project Board
C.Executive
D.Senior User
AnswerB

Correct. The Project Board authorises initiation via DP.

Why this answer

The Project Board authorises initiation as part of the Directing a Project process. The Executive is a member of the Project Board, but the decision is taken collectively by the Board.

398
MCQeasy

During the Initiating a Project process, the project manager is reviewing the Business Case. Which statement best describes the purpose of this review?

A.To confirm the project's scope and high-level risks before the project mandate is issued.
B.To authorize work packages for the first stage of the project.
C.To develop a detailed justification for the project and confirm it remains viable.
D.To obtain final approval from the project board before project execution begins.
AnswerC

Initiating a Project refines the Business Case to ensure the project is worthwhile.

Why this answer

During the Initiating a Project process, the Business Case is reviewed to develop a detailed justification for the project and confirm it remains viable. This involves refining the outline Business Case from the Starting Up a Project process into a fully detailed document that justifies the project's continued existence based on costs, benefits, risks, and timescales. The review ensures the project is still aligned with corporate objectives and that the investment is worthwhile before proceeding to the next stage.

Exam trap

The trap here is that candidates often confuse the purpose of the Initiating a Project process with the Directing a Project process, mistakenly thinking that the Business Case review is for final approval rather than for developing and confirming viability.

How to eliminate wrong answers

Option A is wrong because the project scope and high-level risks are confirmed during the Starting Up a Project process, not during the Initiating a Project process, and the project mandate is issued before the Initiating a Project process begins. Option B is wrong because authorizing work packages for the first stage occurs during the Managing a Stage Boundary process or the Controlling a Stage process, not during the Initiating a Project process. Option D is wrong because obtaining final approval from the project board before project execution begins is the purpose of the Directing a Project process when the project board decides to authorize the project, not a review of the Business Case within the Initiating a Project process.

399
MCQeasy

Which document is the key output of the Initiating a Project process?

A.Project Initiation Documentation
B.End Stage Report
C.Project Brief
D.Exception Report
AnswerA

The Initiating a Project process produces the Project Initiation Documentation (PID) as its mandated output, satisfying the question’s requirement for the key document that formally defines the project’s scope, business justification, and management controls before proceeding. The PID consolidates the project brief, business case, risk register, and stage plans into a single baseline, which the project board uses to authorise the initiation stage. This directly meets the stem’s constraint of identifying the output that enables the transition from initiation to delivery.

Why this answer

The Initiating a Project process is where the project's baselines are established and the Project Initiation Documentation (PID) is created. The PID is the key output because it consolidates the business case, project plan, risk register, and controls, providing the foundation for project execution. Without the PID, the project cannot proceed to the next stage.

Exam trap

The PRINCE2 Foundation exam often tests the distinction between the Project Brief (output of Starting Up a Project) and the Project Initiation Documentation (output of Initiating a Project), causing candidates to confuse the two because both contain similar elements like the business case and project plan, but the PID is more detailed and formally approved.

How to eliminate wrong answers

Option B is wrong because the End Stage Report is produced at the end of each management stage (including the final stage), not during Initiating a Project. Option C is wrong because the Project Brief is created during the Starting Up a Project process, not during Initiating a Project; it serves as input to the Initiating a Project process. Option D is wrong because the Exception Report is produced during the Managing a Stage Boundary or Directing a Project process when a stage is forecast to exceed tolerances, not during initiation.

400
MCQmedium

Who produces Checkpoint Reports?

A.Project Board
B.Senior User
C.Project Manager
D.Team Manager
AnswerD

The Team Manager produces Checkpoint Reports to report progress on Work Packages.

Why this answer

Checkpoint Reports are produced by the Team Manager and sent to the Project Manager as part of Managing Product Delivery.

401
MCQmedium

What is the difference between Starting Up a Project and Initiating a Project?

A.SU initiates the project; IP plans the first stage
B.SU produces the Project Brief; IP produces the Project Initiation Documentation
C.SU is done by the Project Manager; IP is done by the Project Board
D.SU authorizes the project; IP manages the project
AnswerB

SU outputs the Project Brief; IP outputs the PID, which includes more detailed plans and approaches.

Why this answer

Starting Up a Project (SU) is the pre-project process that produces the Project Brief, which includes the outline business case and project approach. Initiating a Project (IP) is the second process that produces the Project Initiation Documentation (PID), which contains the detailed plans, business case, and risk register needed to justify proceeding with the project. The key distinction is that SU creates the high-level Project Brief, while IP creates the comprehensive PID.

Exam trap

The trap here is that candidates confuse the outputs of SU and IP, often thinking SU produces the PID or that IP produces the Project Brief, when in fact SU produces the Project Brief and IP produces the PID.

How to eliminate wrong answers

Option A is wrong because SU does not initiate the project; it is a pre-project process that prepares the groundwork, while IP plans the entire project, not just the first stage. Option C is wrong because SU is managed by the Executive (not the Project Manager) and involves the Project Board for approval, while IP is led by the Project Manager but still requires Project Board authorization. Option D is wrong because SU does not authorize the project; authorization occurs at the end of IP when the Project Board approves the PID, and IP does not manage the project—that is the role of the Managing a Stage Boundary and Controlling a Stage processes.

402
MCQmedium

The Project Board has received an Exception Report from the Project Manager. What is the Project Board's next step?

A.Approve the Exception Report
B.Request a new Project Plan
C.Request an Exception Plan to assess options
D.Close the project
AnswerC

Why this answer

When the Project Board receives an Exception Report, they typically request an Exception Plan to evaluate options. They then decide whether to approve the plan, which may involve changes to the project. A new Project Plan may be part of the Exception Plan, but the immediate step is to request the plan.

403
MCQhard

What is the difference between the Starting Up a Project (SU) and Initiating a Project (IP) processes?

A.SU is performed before the project is authorised; IP is performed after
B.SU is done by the Project Board; IP is done by the Project Manager
C.SU and IP are two names for the same process
D.SU produces the Project Plan; IP produces the Project Brief
AnswerA

Why this answer

SU is a pre-project process to determine feasibility before committing to initiation, while IP establishes the project management foundation and produces the PID.

404
MCQhard

In the Managing a Stage Boundary process, the Project Manager updates the Project Plan. What is the main purpose of this update?

A.To reflect the actual progress and re-forecast the remaining work
B.To provide a baseline for performance measurement
C.To replace the original Project Plan entirely
D.To create a detailed plan for the next stage only
AnswerA

The update incorporates actuals and re-forecasts to give an accurate picture.

Why this answer

The Project Plan is updated to reflect the actual progress of the completed stage and to provide a realistic baseline for the remaining stages. This helps the Project Board make an informed decision about whether to proceed with the next stage.

405
MCQhard

The Project Board gives ad-hoc direction during which process?

A.Controlling a Stage
B.Starting Up a Project
C.Managing a Stage Boundary
D.Directing a Project
AnswerD

Correct: DP includes ad-hoc direction from the Board.

Why this answer

The Directing a Project process includes the activity 'Give ad-hoc direction to the Project Manager'. The Board provides guidance as needed throughout the project.

406
MCQmedium

A Work Package is being executed by the Team Manager. During this, the Team Manager identifies a new risk that could delay delivery. What should the Team Manager do?

A.Update the Risk Register and inform the Project Manager
B.Update the Project Plan
C.Stop work and wait for instructions
D.Inform the Project Board directly
AnswerA

The Team Manager should log the risk and escalate to the PM.

Why this answer

The Team Manager manages the Work Package and reports issues/risks to the Project Manager via Checkpoint Reports and the Issue Register.

407
Multi-Selectmedium

Which THREE of the following are activities of the Managing a Stage Boundary process?

Select 3 answers
A.Hand over products to the customer
B.Update the Project Plan
C.Plan the next stage
D.Authorize Work Packages
E.Produce an End Stage Report
AnswersB, C, E

The Project Plan is updated to reflect progress and future plans.

Why this answer

Managing a Stage Boundary includes producing an End Stage Report, updating the Project Plan, and planning the next stage. Authorizing Work Packages is part of Controlling a Stage, and handing over products is part of Closing a Project.

408
MCQhard

Which report from the Team Manager is used by the Project Manager to review progress within a stage?

A.Highlight Report
B.End Stage Report
C.Exception Report
D.Checkpoint Report
AnswerD

Correct. Checkpoint Reports from Team Manager to PM show progress.

Why this answer

Checkpoint Reports are produced by the Team Manager in Managing Product Delivery and sent to the Project Manager for progress monitoring.

409
MCQmedium

Who is responsible for reviewing the End Stage Report and deciding whether to authorize the next stage?

A.Project Manager
B.Executive
C.Senior User
D.Project Board
AnswerD

Correct. The Project Board authorizes the next stage.

Why this answer

The Project Board is responsible for reviewing the End Stage Report and deciding whether to authorize the next stage. This is a key governance point in PRINCE2, where the Project Board assesses the current stage's performance against the plan and approves moving forward.

Exam trap

PeopleCert often tests the misconception that the Project Manager has the authority to authorize the next stage, but in PRINCE2, the Project Manager only recommends, while the Project Board decides.

How to eliminate wrong answers

Option A is wrong because the Project Manager creates the End Stage Report and presents it to the Project Board, but does not have the authority to authorize the next stage. Option B is wrong because the Executive is a member of the Project Board, but the decision to authorize the next stage is a collective Project Board responsibility, not an individual one. Option C is wrong because the Senior User is also a member of the Project Board, but the authorization decision requires the full board, not just the user representative.

410
MCQmedium

During which process are the Benefits Management Approach and the Risk Management Approach first created?

A.Directing a Project
B.Managing a Stage Boundary
C.Initiating a Project
D.Starting Up a Project
AnswerC

Correct. All management approaches are created in IP.

Why this answer

These management approaches are created during Initiating a Project as part of establishing solid foundations for the project.

411
MCQeasy

Which process is responsible for authorising the initiation of a project?

A.Controlling a Stage
B.Starting Up a Project
C.Directing a Project
D.Initiating a Project
AnswerC

Authorising initiation is a key decision made by the Project Board within Directing a Project.

Why this answer

Directing a Project is the process by which the Project Board authorises the initiation of a project, among other key decisions.

412
MCQeasy

What is the purpose of the Starting Up a Project process?

A.To ensure that the prerequisites for initiating the project are in place
B.To close the project in a controlled manner
C.To produce the Business Case and Project Plan
D.To initiate the project and produce the Project Initiation Documentation
AnswerA

SU ensures the project is viable before moving to initiation.

Why this answer

The Starting Up a Project process is designed to ensure that the prerequisites for initiating the project are in place before the project is formally authorized. It answers the question 'Do we have a viable and worthwhile project?' by creating the Project Brief (including an outline Business Case) and appointing key roles, but it does not produce the full Business Case or Project Plan, which are developed later in the Initiating a Project process.

Exam trap

The trap here is that candidates often confuse the outline Business Case created in Starting Up a Project with the full Business Case and Project Plan, which are actually developed in the Initiating a Project process.

How to eliminate wrong answers

Option B is wrong because closing the project in a controlled manner is the purpose of the Closing a Project process, not Starting Up a Project. Option C is wrong because while an outline Business Case is created in Starting Up a Project, the full Business Case and detailed Project Plan are produced during the Initiating a Project process. Option D is wrong because initiating the project and producing the Project Initiation Documentation (PID) is the purpose of the Initiating a Project process, not Starting Up a Project.

413
MCQmedium

A project is in the Initiating a Project process. Which document is the key output that defines how the project will be managed?

A.Stage Plan
B.Project Brief
C.Business Case
D.Project Initiation Documentation
AnswerD

PID is the key output of IP.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It consolidates the Project Brief, Business Case, and other management strategies into a single, controlled document that defines how the project will be managed, controlled, and executed. The PID serves as the foundation for decision-making and is used throughout the project lifecycle.

Exam trap

The trap here is that candidates often confuse the Project Brief (a pre-initiation document) with the Project Initiation Documentation (the formal management document produced during initiation), or they mistakenly think the Business Case alone defines how the project is managed.

How to eliminate wrong answers

Option A is wrong because a Stage Plan is a detailed plan for a specific management stage, not the overarching document that defines how the entire project will be managed. Option B is wrong because the Project Brief is created during the Starting Up a Project process and provides initial context and justification, but it is refined and expanded into the PID during Initiating a Project. Option C is wrong because the Business Case is a key component within the PID that justifies the project's viability, but it is not the comprehensive management document itself.

414
MCQhard

What is the difference between Starting Up a Project and Initiating a Project?

A.SU is a pre-project process; IP formally initiates the project
B.SU is performed after IP
C.SU produces the PID; IP produces the Project Brief
D.SU is performed by the Project Board; IP is performed by the Project Manager
AnswerA

SU prepares for initiation; IP establishes the project's basis.

Why this answer

Starting Up a Project is a pre-project process that ensures the prerequisites for initiation exist, while Initiating a Project formally establishes the project's foundations and produces the PID.

415
MCQeasy

What is the purpose of the Closing a Project process?

A.To plan the next stage of the project
B.To approve the Project Brief
C.To authorize work packages
D.To ensure the project completes and that benefits are reviewed after closure
AnswerD

Correct. It also includes handover and lessons learned.

Why this answer

The Closing a Project process is designed to provide a fixed point to verify that the project has delivered its products, confirm that the project's objectives have been met, and ensure that the project's benefits are reviewed after closure. It also triggers the formal handover of products and the closure of the project, including the creation of the End Project Report and the Lessons Log.

Exam trap

The trap here is that candidates often confuse the Closing a Project process with the Managing a Stage Boundary process, mistakenly thinking that closing a project involves planning the next stage, when in fact it is about finalizing all project activities and setting up for post-project benefits reviews.

How to eliminate wrong answers

Option A is wrong because planning the next stage is the purpose of the Managing a Stage Boundary process, not Closing a Project. Option B is wrong because approving the Project Brief occurs during the Starting Up a Project process, not at project closure. Option C is wrong because authorizing work packages is the responsibility of the Managing Product Delivery process, which is executed during a stage, not at the end of the project.

416
MCQmedium

During the Controlling a Stage process, which report does the Project Manager send to the Project Board?

A.Exception Report
B.Checkpoint Report
C.End Stage Report
D.Highlight Report
AnswerD

Highlight Report is sent to the Project Board.

Why this answer

In the Controlling a Stage process, the Project Manager sends the Highlight Report to the Project Board at regular intervals to provide a summary of progress against the stage plan, including achievements, next steps, and any issues or risks. This report is the standard communication tool for keeping the board informed during a stage, as defined in PRINCE2.

Exam trap

In PRINCE2, candidates often confuse the Checkpoint Report (sent to the Project Manager by team managers) with the Highlight Report (sent to the Project Board by the Project Manager) due to their similar names and periodic nature. This distinction is critical in the Controlling a Stage process.

How to eliminate wrong answers

Option A is wrong because the Exception Report is sent only when a stage plan is forecast to exceed tolerance levels, not as a routine report during Controlling a Stage. Option B is wrong because the Checkpoint Report is a team-level report from Team Managers to the Project Manager, not to the Project Board. Option C is wrong because the End Stage Report is produced at the end of a stage during the Managing a Stage Boundary process, not during Controlling a Stage.

417
Multi-Selecthard

Which TWO of the following statements about the Managing Product Delivery process are correct?

Select 2 answers
A.The Project Board authorises Work Packages directly to the Team Manager.
B.MP includes the activity of reporting stage progress to the Project Board.
C.The Project Manager updates the Project Plan during MP.
D.The Team Manager produces Checkpoint Reports to inform the Project Manager of progress.
E.The Team Manager is responsible for ensuring the quality of products being delivered.
AnswersD, E

Correct. Checkpoint Reports are a key output of MP.

Why this answer

MP is where the Team Manager executes the Work Package and produces Checkpoint Reports. The PM authorises the Work Package at the start.

418
MCQmedium

According to PRINCE2, which process is responsible for ensuring that the project has a clear and agreed start before any substantial work is undertaken?

A.Initiating a Project
B.Starting Up a Project
C.Directing a Project
D.Controlling a Stage
AnswerB

Why this answer

Starting Up a Project is the pre-project process that ensures basic conditions exist before initiating. It produces the Project Brief and decides whether to proceed. Directing a Project is the Project Board's process.

Initiating a Project establishes solid foundations after SU. Controlling a Stage manages day-to-day work.

419
MCQhard

What is the primary difference between Managing Product Delivery and Controlling a Stage?

A.Managing Product Delivery focuses on the Team Manager delivering Work Packages; Controlling a Stage focuses on the Project Manager's day-to-day management
B.Managing Product Delivery produces the Highlight Report
C.Managing Product Delivery is only used in the Initiating a Project process
D.Managing Product Delivery is the Project Manager's process; Controlling a Stage is the Team Manager's process
AnswerA

Why this answer

Managing Product Delivery (MP) is the Team Manager's process for accepting, executing, and delivering Work Packages. Controlling a Stage (CS) is the Project Manager's process for authorising Work Packages, monitoring progress, and managing issues. MP does not produce Highlight Reports; CS does.

MP is not limited to initiation.

420
MCQeasy

Which document is the key output of the Initiating a Project process?

A.Project Brief
B.Lessons Report
C.Project Initiation Documentation
D.End Stage Report
AnswerC

The Initiating a Project process produces the Project Initiation Documentation (PID) as its mandated output, satisfying the question’s constraint that the document must formally define the project’s scope, business justification, and governance baseline before proceeding to the next stage. The PID consolidates the Project Brief, Business Case, and stage plans into a single controlled artefact that authorises the project board to commit resources.

Why this answer

The Initiating a Project process is responsible for establishing a solid foundation for the project, and its key output is the Project Initiation Documentation (PID). The PID consolidates all the essential information needed to justify, define, and plan the project, including the Business Case, Project Plan, and Risk Register. It serves as the definitive reference document for the project board to authorize the project.

Exam trap

PeopleCert often tests the distinction between the Project Brief (output of Starting Up a Project) and the Project Initiation Documentation (output of Initiating a Project), so the trap here is confusing the two documents and their associated processes.

How to eliminate wrong answers

Option A is wrong because the Project Brief is created during the Starting Up a Project process, not the Initiating a Project process; it provides initial high-level information but is not the key output of initiation. Option B is wrong because the Lessons Report is produced during the Closing a Project process to capture lessons learned for future projects, not during initiation. Option D is wrong because the End Stage Report is produced at the end of each management stage (including the initiation stage) to report progress against the plan, but it is not the key output of the Initiating a Project process itself.

421
MCQmedium

A Project Manager is about to begin work on a new stage. Which document provides the authority to proceed with the stage?

A.Project Brief
B.Stage Plan
C.Project Initiation Documentation
D.Business Case
AnswerB

The approved Stage Plan gives the PM authority to execute the stage.

Why this answer

The Project Board authorises the stage by approving the Stage Plan. Work cannot start without this authorised plan.

422
Multi-Selectmedium

Which THREE of the following are activities performed during the Controlling a Stage process?

Select 3 answers
A.Authorise Work Packages
B.Produce the End Stage Report
C.Produce the Project Plan
D.Report on progress to the Project Board via Highlight Reports
E.Take corrective action to keep the stage within tolerance
AnswersA, D, E

Yes, the PM authorises Work Packages in CS.

Why this answer

CS includes authorising Work Packages, reviewing progress, reporting highlights, and managing issues and risks.

423
MCQeasy

Which process ensures that the project's products are handed over and the project is formally closed?

A.Controlling a Stage
B.Managing a Stage Boundary
C.Directing a Project
D.Closing a Project
AnswerD

Correct: CP ensures controlled closure.

Why this answer

Closing a Project (CP) is the process that ensures controlled closure, including product handover and formal acceptance.

424
Multi-Selectmedium

Which TWO of the following are outputs of the Initiating a Project process?

Select 2 answers
A.Risk Management Approach
B.End Project Report
C.Benefits Management Approach
D.Checkpoint Report
E.Project Brief
AnswersA, C

The Risk Management Approach is part of the PID.

Why this answer

The Risk Management Approach and Benefits Management Approach are both management products created during the Initiating a Project process. The Risk Management Approach defines how risk will be managed throughout the project, while the Benefits Management Approach defines how the project's benefits will be realized and measured. These are documented in the Project Initiation Documentation (PID) and are key outputs of this process.

Exam trap

PeopleCert often tests the distinction between inputs and outputs of the Initiating a Project process, specifically confusing the Project Brief (an input from Starting Up a Project) with an output, and the Checkpoint Report (a Controlling a Stage product) with a process output.

425
MCQmedium

What is the purpose of the Managing a Stage Boundary process?

A.To plan the entire project in detail
B.To control the day-to-day work within a stage
C.To provide the Project Board with information to decide whether to continue to the next stage
D.To approve work packages and monitor progress
AnswerC

SB produces the End Stage Report and next Stage Plan for Project Board decision.

Why this answer

The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information—such as the current stage's performance, updated business case, and the next stage's plan—to make an informed decision about whether to authorize proceeding to the next stage. This process ensures that the project remains viable and aligned with business objectives before committing further resources.

Exam trap

The trap here is that candidates confuse the 'planning' aspect of Managing a Stage Boundary (which only plans the next stage) with the 'detailed planning' of the entire project in Initiating a Project, or they mistake it for the day-to-day control activities of Controlling a Stage.

How to eliminate wrong answers

Option A is wrong because planning the entire project in detail is the purpose of the Initiating a Project process, not Managing a Stage Boundary, which only plans the next stage in detail. Option B is wrong because controlling day-to-day work within a stage is the responsibility of the Controlling a Stage process, which manages work packages and handles issues. Option D is wrong because approving work packages and monitoring progress are activities within the Controlling a Stage process, not the stage boundary review.

426
MCQhard

A project has completed all work but the Project Manager discovers that a key product was delivered with a minor defect that does not affect the Business Case. What should the Project Manager do during Closing a Project?

A.Reject the product and request rework before closing
B.Raise an Exception Report to the Project Board
C.Close the project and ignore the defect
D.Record the defect in the Lessons Report and recommend closure
AnswerD

The defect is minor; the board can accept it. The Lessons Report captures the issue.

Why this answer

During CP, the PM should ensure all products are accepted. If a defect exists, it should be documented in the Lessons Report and an updated product status should be provided. The board decides acceptance.

427
MCQeasy

Which process is responsible for authorizing the initiation of a project?

A.Directing a Project
B.Initiating a Project
C.Starting Up a Project
D.Controlling a Stage
AnswerA

The Project Board authorizes initiation under DP.

Why this answer

Directing a Project (DP) is the process where the Project Board makes key decisions, including authorizing initiation. Starting Up a Project (SU) prepares the conditions but does not authorize initiation.

428
MCQhard

During the Closing a Project process, which document is used to confirm that the project's products have been accepted?

A.Project Product Description
B.End Project Report
C.Benefits Management Approach
D.Lessons Report
AnswerB

The End Project Report includes confirmation of product acceptance.

Why this answer

The End Project Report confirms acceptance of products and provides a summary of project performance.

429
MCQmedium

Which role is responsible for producing the Highlight Report?

A.Senior User
B.Project Manager
C.Team Manager
D.Project Support
AnswerB

The PM produces Highlight Reports in the CS process.

Why this answer

The Project Manager produces Highlight Reports to inform the Project Board of progress during a stage.

430
MCQmedium

The Project Board has authorized a Stage Plan. During the stage, the Project Manager identifies a risk that could cause the stage to exceed its time tolerance. What should the Project Manager do first?

A.Inform the Team Manager to accelerate work to stay within tolerance
B.Raise an Exception Report to the Project Board and await their direction
C.Record the risk in the Risk Register and continue monitoring
D.Implement a contingency plan to mitigate the risk and continue as planned
AnswerB

When a stage tolerance is forecast to be exceeded, the PM must escalate via an Exception Report to the Project Board.

Why this answer

According to PRINCE2's management by exception, if a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. The PM cannot unilaterally change the plan.

431
Multi-Selectmedium

Which THREE of the following are responsibilities of the Project Board during the Directing a Project process?

Select 3 answers
A.Approving stage plans and updates
B.Producing Checkpoint Reports
C.Managing the day-to-day activities of the project team
D.Authorising closure of the project
E.Authorising initiation of the project
AnswersA, D, E

The Board approves stage plans and Exception Plans.

Why this answer

The Project Board is responsible for approving Stage Plans and any updates to them during the Directing a Project process. This ensures that the project remains aligned with the business case and that management stage boundaries are properly controlled.

Exam trap

PeopleCert often tests the distinction between strategic and operational responsibilities, so the trap here is confusing the Project Board's high-level decision-making role with the Project Manager's or Team Manager's execution-level duties.

432
MCQhard

A Team Manager identifies a quality problem in a product that is being delivered. What should the Team Manager do?

A.Record the problem and inform the Project Manager
B.Update the Checkpoint Report and ignore the problem
C.Reject the product and stop all work
D.Fix the product immediately to meet quality criteria
AnswerA

The Team Manager should raise an issue and escalate to the Project Manager for a decision.

Why this answer

The Team Manager should first record the quality problem as an issue and escalate it to the Project Manager, who will decide how to handle it. The Team Manager cannot unilaterally change the product or stop work without authorization.

433
MCQmedium

In which process are Work Packages authorized and progress reviewed by the Project Manager?

A.Directing a Project
B.Controlling a Stage
C.Managing a Stage Boundary
D.Managing Product Delivery
AnswerB

Correct: CS includes authorizing and reviewing Work Packages.

Why this answer

The Controlling a Stage process is where the Project Manager authorizes Work Packages to Team Managers and reviews their progress against the stage plan. This process ensures that work is executed, monitored, and controlled within the current stage, with the Project Manager managing day-to-day activities and escalating issues as needed.

Exam trap

The trap here is confusing the Project Manager's role in Controlling a Stage with the Team Manager's role in Managing Product Delivery, where candidates mistakenly think Work Package authorization happens in the latter process instead of the former.

How to eliminate wrong answers

Option A is wrong because Directing a Project is the process for the Project Board to make key decisions, authorize the project, and provide overall direction, not for authorizing Work Packages or reviewing progress at the detailed level. Option C is wrong because Managing a Stage Boundary focuses on planning the next stage and updating the business case, not on authorizing or reviewing Work Packages. Option D is wrong because Managing Product Delivery is the process where the Team Manager accepts and executes Work Packages and reports progress to the Project Manager, but the authorization and review of Work Packages are done by the Project Manager in Controlling a Stage.

434
MCQmedium

Which process ensures that the project's products are formally handed over to the operational environment?

A.Controlling a Stage
B.Directing a Project
C.Closing a Project
D.Managing Product Delivery
AnswerC

Correct. CP handles the formal closure and handover.

Why this answer

The Closing a Project process is responsible for ensuring that the project's products are formally handed over to the operational environment, as it includes the 'Hand over Products' activity. This process verifies that acceptance criteria are met, obtains formal acceptance, and transfers ownership to the operational team, aligning with PRINCE2's focus on controlled closure.

Exam trap

PRINCE2 candidates often confuse Managing Product Delivery with Closing a Project for the handover; however, Managing Product Delivery only covers delivery of products within the project, not the formal transfer to operations, which is exclusive to Closing a Project.

How to eliminate wrong answers

Option A is wrong because Controlling a Stage focuses on day-to-day management of a stage, including monitoring progress and handling issues, not on the formal handover of products to operations. Option B is wrong because Directing a Project is the decision-making layer for the Project Board, covering authorization and oversight, but it does not execute the operational handover itself. Option D is wrong because Managing Product Delivery is about creating and delivering products within a work package, not about the final handover to the operational environment, which occurs after delivery is complete.

435
MCQmedium

Which process is responsible for producing the End Project Report?

A.Closing a Project
B.Initiating a Project
C.Directing a Project
D.Managing a Stage Boundary
AnswerA

CP produces the End Project Report as part of the closure activities.

Why this answer

The Closing a Project process produces the End Project Report, which assesses how the project performed against its plan and justifies closure.

436
Multi-Selectmedium

Which TWO of the following are outputs of the Starting Up a Project process?

Select 2 answers
A.Project Brief
B.Benefits Management Approach
C.Project Initiation Documentation
D.Daily Log
E.End Stage Report
AnswersA, D

Why this answer

Starting Up a Project produces the Project Brief, Initiation Stage Plan, and Daily Log. PID and Benefits Management Approach are from Initiating a Project. End Stage Report is from Managing a Stage Boundary.

437
MCQeasy

What is the purpose of the Closing a Project process?

A.To ensure the project is closed in a controlled way
B.To plan the next stage of the project
C.To authorize the start of the project
D.To manage day-to-day activities in a stage
AnswerA

Correct. Closing a Project provides controlled closure.

Why this answer

Closing a Project ensures a controlled closure, handover of products, evaluation of the project, and recommendations for future projects.

438
MCQmedium

The Project Manager has produced an End Stage Report for the current stage. According to PRINCE2, what is the next step?

A.Update the Business Case and close the project
B.Distribute the report to stakeholders and continue to the next stage
C.Seek approval from the Executive to continue
D.Submit the report to the Project Board for a decision on whether to proceed
AnswerD

Why this answer

In PRINCE2, the End Stage Report is produced by the Project Manager to provide the Project Board with a summary of the stage's performance. The next step is to submit this report to the Project Board, which then decides whether to authorize the next stage, amend the project, or stop the project. Option D correctly reflects this governance checkpoint, as the Project Board holds the authority to approve continued investment.

Exam trap

A common misconception in the PRINCE2 exam is that the Project Manager can unilaterally proceed to the next stage after producing the End Stage Report, when in fact PRINCE2 mandates that the Project Board must formally authorize the next stage.

How to eliminate wrong answers

Option A is wrong because the Business Case is not updated solely from an End Stage Report; it is reviewed and updated as part of the Managing a Stage Boundary process, and closing the project occurs only after the final stage. Option B is wrong because distributing the report to stakeholders is not the immediate next step; the report must first go to the Project Board for a decision, and continuing to the next stage requires explicit authorization. Option C is wrong because approval from the Executive alone is insufficient; PRINCE2 requires collective decision-making by the entire Project Board, not just one member.

439
MCQmedium

During the Managing Product Delivery process, a Team Manager discovers that a product cannot meet its quality criteria without significant extra work. What should the Team Manager do?

A.Modify the quality criteria to match what can be achieved
B.Raise an issue to the Project Manager for direction
C.Proceed with the work and report the variance in the next Checkpoint Report
D.Inform the Project Board directly
AnswerB

The Team Manager should raise an issue to the PM, who will decide on corrective action or change.

Why this answer

In PRINCE2, the Team Manager works within the constraints set by the Project Manager. When a product cannot meet its quality criteria without significant extra work, the Team Manager must escalate this as an issue to the Project Manager, who has the authority to decide on changes to scope, quality, or budget. This aligns with the 'Manage by Exception' principle and the defined roles in the Managing Product Delivery process.

Exam trap

The trap here is that candidates often think the Team Manager should directly inform the Project Board (Option D) because quality is a board-level concern, but PRINCE2 strictly requires escalation through the Project Manager first.

How to eliminate wrong answers

Option A is wrong because modifying quality criteria without authorization violates the agreed baselines and the Project Manager's authority; only the Project Manager can approve changes to quality criteria. Option C is wrong because proceeding with work that cannot meet quality criteria and deferring reporting to the next Checkpoint Report would hide a critical deviation, violating the principle of timely issue management and exception reporting. Option D is wrong because the Team Manager reports to the Project Manager, not directly to the Project Board; the Project Board is only informed via exception reports escalated by the Project Manager.

440
Multi-Selectmedium

Which TWO documents are produced during the Closing a Project process?

Select 2 answers
A.Project Brief
B.Lessons Report
C.Stage Plan
D.End Project Report
E.Project Initiation Documentation (PID)
AnswersB, D

Correct: The Lessons Report is produced in CP.

Why this answer

The End Project Report and the Lessons Report are both produced in CP. The Project Brief is from SU, the PID from IP, and the Stage Plan from SB.

441
MCQmedium

In which process are the Project Board's key decisions made, such as authorizing initiation and authorizing stage plans?

A.Starting Up a Project
B.Directing a Project
C.Initiating a Project
D.Controlling a Stage
AnswerB

Correct. DP is the Project Board's process for direction and authorization.

Why this answer

Directing a Project is the process where the Project Board makes key decisions, including authorizing initiation, stage plans, exception plans, and project closure.

442
MCQmedium

In which process is the End Stage Report produced?

A.Closing a Project
B.Directing a Project
C.Managing a Stage Boundary
D.Controlling a Stage
AnswerC

SB produces the End Stage Report.

Why this answer

The End Stage Report is produced during Managing a Stage Boundary (SB) to report on the current stage's performance and plan the next.

443
MCQmedium

The Project Board wants to provide ad-hoc direction to the Project Manager regarding a critical issue. Which process should the Project Board use?

A.Managing Product Delivery
B.Initiating a Project
C.Controlling a Stage
D.Directing a Project
AnswerD

Correct. Giving ad hoc direction is a key activity of DP.

Why this answer

Directing a Project includes the activity 'Giving ad hoc direction' to allow the Project Board to provide guidance or decisions outside of formal stage boundaries.

444
MCQhard

Which process is the Project Board primarily responsible for, according to PRINCE2?

A.Directing a Project
B.Managing Product Delivery
C.Controlling a Stage
D.Managing a Stage Boundary
AnswerA

Why this answer

The Project Board is primarily responsible for the 'Directing a Project' process, which covers the overall management and decision-making from project initiation through closure. This process includes authorizing the project, providing key decisions, and ensuring that the project remains viable and aligned with business objectives. The Board does not execute day-to-day management or delivery tasks, which belong to other roles.

Exam trap

The trap here is that candidates often confuse the Project Board's strategic oversight with the Project Manager's operational responsibilities, leading them to select 'Controlling a Stage' or 'Managing a Stage Boundary' because they involve decision-making, but those are executed by the Project Manager, not the Board.

How to eliminate wrong answers

Option B is wrong because 'Managing Product Delivery' is the responsibility of the Team Manager, who coordinates the work of the project team to create the project's products, not the Project Board. Option C is wrong because 'Controlling a Stage' is the responsibility of the Project Manager, who monitors progress, manages issues, and reports to the Board during each stage. Option D is wrong because 'Managing a Stage Boundary' is also the responsibility of the Project Manager, who prepares the end-stage report and next stage plan for the Board's approval.

445
Multi-Selecthard

Which TWO of the following activities are performed in the Starting Up a Project process?

Select 2 answers
A.Appoint the Executive and the Project Manager
B.Produce the Project Initiation Documentation
C.Authorise the project
D.Plan the next management stage
E.Capture lessons from previous projects
AnswersA, E

SU includes appointing the Executive and PM.

Why this answer

Starting Up a Project includes appointing the Executive and Project Manager, and capturing lessons from previous projects. Authorising the project is done in Directing a Project. Producing the PID is done in Initiating a Project.

Planning the next stage is done in Managing a Stage Boundary.

446
MCQeasy

What is the purpose of the Starting Up a Project process?

A.To plan the entire project in detail
B.To produce the Project Initiation Documentation
C.To ensure that there is a viable and worthwhile project before committing to a full initiation
D.To approve the project mandate
AnswerC

SU's purpose is to check viability before initiating.

Why this answer

The Starting Up a Project process is designed to evaluate the project mandate and determine whether the project is viable and worthwhile before committing significant resources to full initiation. It ensures that the project has a clear business justification, a defined project manager, and a sufficient understanding of scope and risks to proceed. This process does not produce detailed plans or the Project Initiation Documentation (PID), which are outputs of the Initiating a Project process.

Exam trap

PeopleCert often tests the distinction between pre-initiation and initiation activities, trapping candidates who confuse the creation of the Project Initiation Documentation (PID) with the Starting Up a Project process, when in fact the PID is a product of the Initiating a Project process.

How to eliminate wrong answers

Option A is wrong because the Starting Up a Project process only creates outline plans (e.g., a stage plan for initiation), not a detailed plan for the entire project; detailed planning occurs during the Initiating a Project process. Option B is wrong because the Project Initiation Documentation (PID) is produced during the Initiating a Project process, not during Starting Up a Project, which focuses on pre-initiation checks. Option D is wrong because the project mandate is an input to the Starting Up a Project process, not an output to be approved; the process evaluates the mandate to decide whether to proceed to initiation.

447
MCQmedium

A project is in its final stage. The Project Manager has verified that all products have been accepted and operational support is in place. Which process should the Project Manager initiate next?

A.Closing a Project
B.Controlling a Stage
C.Directing a Project
D.Managing a Stage Boundary
AnswerA

Correct. The Project Manager performs Closing a Project to prepare for project closure.

Why this answer

Closing a Project is the process for controlled closure, including handover, benefits review planning, and project closure recommendation.

448
MCQmedium

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

A.Close the project immediately as the Business Case is no longer viable
B.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
C.Raise an Exception Report to the Project Board and await their direction before proceeding
D.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
AnswerC

Raising an Exception Report is correct because when a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board for direction. This follows the management by exception principle.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report — this is PRINCE2's management by exception principle. The Project Manager cannot unilaterally decide to exceed tolerances; that requires Project Board authorisation. Option A is wrong because closing the project immediately is not the correct response; the Business Case may still be viable, and the issue should be escalated first.

Option B is wrong because the Project Manager cannot increase the budget without Project Board approval. Option D is wrong because continuing without escalation violates management by exception; the PM must escalate immediately.

449
Drag & Dropmedium

Drag and drop the steps to manage a configuration item in PRINCE2 into the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps
Order
1Step 1
2Step 2
3Step 3
4Step 4

Why this order

Configuration management: identify, control changes, record status, verify, and report.

450
MCQmedium

The project manager notices that a team member has not completed a critical product according to the quality criteria. What should the project manager do first?

A.Update the Project Plan to reflect the delay
B.Close the project as the quality criteria are not met
C.Raise an Exception Report to the Project Board
D.Instruct the team manager to correct the product within the work package tolerance
AnswerD

Correct. The PM should manage the issue within the stage; the team manager can take corrective action.

Why this answer

The correct first action is to instruct the team manager to correct the product within the work package tolerance. In PRINCE2, the project manager manages by exception; if a team member fails to meet quality criteria, the project manager should first escalate to the team manager (who manages the work package) to resolve the issue within the agreed tolerances. This aligns with the 'Managing Product Delivery' process, where the team manager is responsible for delivering products to specification.

Exam trap

The trap here is that candidates often confuse the project manager's role with the team manager's role, incorrectly assuming the project manager must immediately escalate to the Project Board (Option C) rather than first instructing the team manager to correct the product within the delegated tolerance.

How to eliminate wrong answers

Option A is wrong because updating the Project Plan is a reactive administrative task that should only occur after the issue is resolved or escalated, not as the first action. Option B is wrong because closing the project is a drastic, premature step; PRINCE2 requires controlled escalation through exception management, not immediate termination. Option C is wrong because raising an Exception Report to the Project Board is only necessary if the issue exceeds the work package tolerance or stage tolerance, which is not indicated in the scenario.

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