PRINCE2F PRINCE2 Processes Practice Question
The Project Board is considering a request to close a project early due to loss of business justification. Which process is the Project Board using to make this decision?
⚠ Common exam trap
PRINCE2F often tests the confusion between the process where a decision is made (Directing a Project) and the process where the resulting action is carried out (Closing a Project), so candidates must identify who owns the decision—the Project Board—rather than what happens next.
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
✓
Directing a Project
The Project Board is the directing layer of the PRINCE2 organization, and all its decisions—including premature closure due to loss of business justification—are made within the Directing a Project process. Directing a Project provides the authority for the Board to make key decisions such as authorizing initiation, stage boundaries, project closure, and early termination. Closing a Project is the process used to execute the closure once the decision has been made, not the process in which the decision is taken.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Managing a Stage Boundary
Why it's wrong here
Managing a Stage Boundary prepares the next Stage Plan and End Stage Report for the Project Board's authorisation of the following stage. It is used at planned stage transitions, not for deciding premature closure when business justification has been lost, which is a directing decision.
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Closing a Project
Why it's wrong here
Closing a Project handles closure after the products have been delivered and accepted, confirming follow-on actions and benefits review. Premature closure on loss of business justification is instead handled through the direction process, where the Project Board decides whether to stop the project.
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Starting Up a Project
Why it's wrong here
Starting Up a Project precedes the Project Board's authorisation of the project and covers appointing the Executive and preparing the Project Brief. Premature closure on loss of justification is decided later, once the project is running, so this process cannot be the one in use here.
- ✓
Directing a Project
Why this is correct
Directing a Project empowers the Project Board to authorise closure, including premature termination when business justification lapses. The board's decision to end the project early sits within its authority to give ad hoc direction and approve closure, satisfying the stem's constraint that the board itself decides on early closure.
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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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.