This PRINCE2F practice question tests your understanding of project initiation and stages. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
During Initiation, the project manager discovers that a key assumption in the Business Case is invalid. What should the PM do first?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Ignore the assumption
Why wrong: Ignoring would lead to flawed decision-making.
Stop the project
Why wrong: Too premature; the impact may be manageable.
Inform the Project Board
Why wrong: Informing is important, but updating first provides accurate information.
Update the Business Case
The Business Case must be revised to reflect the reality.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Update the Business Case
The Business Case is the key driver for the project, and if a fundamental assumption is invalid, the project manager must first update the Business Case to reflect the new reality. This ensures that the project remains viable and that the Project Board can make an informed decision about whether to continue. Updating the Business Case is the correct first step because it provides the basis for any subsequent decisions, such as escalating to the Project Board.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Ignore the assumption
Why it's wrong here
Ignoring would lead to flawed decision-making.
Stop the project
Why it's wrong here
Too premature; the impact may be manageable.
Inform the Project Board
Why it's wrong here
Informing is important, but updating first provides accurate information.
Update the Business Case
Why this is correct
The Business Case must be revised to reflect the reality.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
PeopleCert often tests the misconception that the project manager should immediately escalate to the Project Board, but the correct first action is to update the Business Case to provide the Board with the necessary information for a decision.
Detailed technical explanation
In PRINCE2, the Business Case is developed during the Initiating a Project process and is subject to continuous justification. The project manager is responsible for maintaining the Business Case, and any changes to assumptions must be formally documented in the Business Case and then reviewed by the Project Board. This aligns with the 'continued business justification' principle, which requires that the project remains viable at all times.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Project Initiation and Stages — study guide chapter
Learn the concepts, then practise the questions
Project Initiation and Stages practice questions
Targeted practice on this topic area only
All PRINCE2F questions
1,731 questions across all exam domains
PRINCE2 Foundation study guide
Full concept coverage aligned to exam objectives
PRINCE2F practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise PRINCE2F questions linked to Overview of PRINCE2 and Principles.
Practise PRINCE2F questions linked to Business Case and Organizing.
Practise PRINCE2F questions linked to Project Initiation and Stages.
Practise PRINCE2F questions linked to Overview of PRINCE2 and the project environment.
Practise PRINCE2F questions linked to People: organizations, teams, and leadership.
Practise PRINCE2F questions linked to PRINCE2 Practices.
Practise PRINCE2F questions linked to PRINCE2 Processes.
Practise PRINCE2F questions linked to PRINCE2F fundamentals.
Practise PRINCE2F questions linked to PRINCE2F scenario.
Practise PRINCE2F questions linked to PRINCE2F troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Project Initiation and Stages — This question tests Project Initiation and Stages — Read the scenario before looking for a memorised answer..
The correct answer is: Update the Business Case — The Business Case is the key driver for the project, and if a fundamental assumption is invalid, the project manager must first update the Business Case to reflect the new reality. This ensures that the project remains viable and that the Project Board can make an informed decision about whether to continue. Updating the Business Case is the correct first step because it provides the basis for any subsequent decisions, such as escalating to the Project Board.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Last reviewed: Jun 30, 2026
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.