Question 729 of 1,731
People: organizations, teams, and leadershipeasyMultiple ChoiceObjective-mapped

PRINCE2F People: organizations, teams, and leadership Practice Question

This PRINCE2F practice question tests your understanding of people: organizations, teams, and leadership. 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.

Who is responsible for defining the project's tolerance levels?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Project Board

In PRINCE2, the Project Board is responsible for defining project-level tolerance levels for time, cost, quality, scope, risk, and benefits. This is because the Project Board represents the business, user, and supplier interests and sets the boundaries within which the Project Manager can operate without needing to escalate. The Project Manager works within these tolerances and only escalates if forecasts exceed them.

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.

  • Senior User

    Why it's wrong here

    The Senior User contributes but does not solely set tolerances.

  • Project Manager

    Why it's wrong here

    The PM works within tolerances but does not set them.

  • Team Manager

    Why it's wrong here

    Team Managers work within Work Package tolerances set by the PM.

  • Project Board

    Why this is correct

    The Board sets tolerances as part of project governance.

    Related concept

    Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

A common misconception is that the Project Manager defines project tolerances, but in PRINCE2, the Project Manager only sets stage and work package tolerances, while the Project Board sets the overarching project tolerances.

Detailed technical explanation

How to think about this question

Tolerances in PRINCE2 are the permissible deviations from a plan's targets, and they are defined at multiple levels: project tolerances by the Project Board, stage tolerances by the Project Manager, and work package tolerances by the Team Manager. The Project Board uses tolerances as a control mechanism to delegate authority while retaining overall governance, and the Project Manager must escalate to the Board if any forecast exceeds the agreed tolerance. This layered tolerance approach ensures that issues are escalated to the appropriate management level without unnecessary delays.

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 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

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.

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FAQ

Questions learners often ask

What does this PRINCE2F question test?

People: organizations, teams, and leadership — This question tests People: organizations, teams, and leadership — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Project Board — In PRINCE2, the Project Board is responsible for defining project-level tolerance levels for time, cost, quality, scope, risk, and benefits. This is because the Project Board represents the business, user, and supplier interests and sets the boundaries within which the Project Manager can operate without needing to escalate. The Project Manager works within these tolerances and only escalates if forecasts exceed them.

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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Last reviewed: Jul 4, 2026

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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.