The answer is to advise the project board that the business case is no longer viable and recommend project closure. This is correct because PRINCE2 is built on the principle of continued business justification, which demands that a project must remain viable throughout its lifecycle. During the Initiating a Process, the project manager’s role is to escalate risks to viability, not to decide closure unilaterally; only the project board holds the authority to approve closure. On the PRINCE2 Foundation exam, this scenario tests your understanding of the project board’s decision-making role versus the project manager’s advisory role, often appearing as a trap where candidates mistakenly choose to “pause” or “re-plan” the project. A common memory tip is to remember that the business case is the project’s “license to live”—if it dies, the board must pull the plug, not the manager.
PRINCE2F PRINCE2 Processes Practice Question
This PRINCE2F practice question tests your understanding of prince2 processes. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. 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.
You are the project manager for a construction project. The project is in the Initiating a Project process. The project board has approved the project brief, and you are now developing the project initiation documentation (PID). During this process, you identify that the project's business case is no longer viable due to a change in market conditions. What is the most appropriate action?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Advise the project board that the business case is no longer viable and recommend project closure.
In PRINCE2, the project board is responsible for making decisions about project viability, including closure. During the Initiating a Project process, if the business case becomes unviable, the project manager must escalate this to the project board, who then decides whether to close the project. Option C correctly reflects this by advising the board and recommending closure, aligning with the 'continued business justification' principle.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Continue developing the PID as planned and submit it to the project board.
Why it's wrong here
Proceeding with a non-viable business case is not appropriate.
✗
Make the decision to close the project yourself and inform the team.
Why it's wrong here
Only the project board can authorize project closure.
✓
Advise the project board that the business case is no longer viable and recommend project closure.
Why this is correct
The project board must be informed to decide on continuation.
Related concept
Read the scenario before looking for a memorised answer.
✗
Request additional time to find alternative justifications for the project.
Why it's wrong here
The business case is not viable; additional time may not help.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may assume the project manager has the authority to close the project or continue without escalation, but PRINCE2 explicitly reserves closure decisions for the project board to maintain proper governance.
Detailed technical explanation
How to think about this question
The business case is the key document that justifies the project's existence and is reviewed at every stage boundary. In the Initiating a Project process, the PID is being assembled, and the business case must be confirmed as viable before the project can proceed to the next stage. If market conditions change, the project manager must formally raise an exception report or issue to the project board, who then decides whether to revise the business case or close the project, ensuring governance and control.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
PRINCE2 Processes — This question tests PRINCE2 Processes — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Advise the project board that the business case is no longer viable and recommend project closure. — In PRINCE2, the project board is responsible for making decisions about project viability, including closure. During the Initiating a Project process, if the business case becomes unviable, the project manager must escalate this to the project board, who then decides whether to close the project. Option C correctly reflects this by advising the board and recommending closure, aligning with the 'continued business justification' principle.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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