CCNA Prince2 Practices Questions

75 of 674 questions · Page 3/9 · Prince2 Practices topic · Answers revealed

151
Multi-Selecteasy

Which TWO of the following are threat response types in PRINCE2 risk management?

Select 2 answers
A.Exploit
B.Avoid
C.Enhance
D.Transfer
E.Reject
AnswersB, D

Avoid is a threat response that seeks to eliminate the threat entirely.

Why this answer

Options B and D are correct. Avoid and Transfer are prescribed threat responses. Exploit is an opportunity response.

Accept applies to both threats and opportunities. Reduce is for threats but is also known as 'Mitigate' — however, 'Reduce' is often used, but 'Avoid' and 'Transfer' are more distinct.

152
MCQmedium

Which of the following is NOT a component of the Business Case?

A.Expected benefits
B.Risk Register
C.Investment appraisal
D.Major risks
AnswerB

The risk register is a separate document.

Why this answer

The Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The risk register is a separate document.

153
MCQeasy

Who is responsible for maintaining the Business Case throughout the project?

A.Senior User
B.Executive (Senior Responsible Owner)
C.Senior Supplier
D.Project Manager
AnswerB

The Executive owns the Business Case and is accountable for its justification throughout the project.

Why this answer

Option B is correct. The Executive (Senior Responsible Owner) owns the Business Case and is responsible for ensuring its continued viability. The Project Manager maintains it day-to-day but is not the owner.

The Senior User represents the users and the Senior Supplier provides resources, but neither owns the Business Case.

154
Multi-Selectmedium

Which TWO of the following are components of the Business Case?

Select 2 answers
A.Configuration item records
B.Quality register
C.Product descriptions
D.Major risks
E.Expected benefits
AnswersD, E

Risks are included in the Business Case.

Why this answer

Expected benefits and major risks are key components of the Business Case. Options and timescale are also components but not listed as correct in this set; the question asks for exactly two.

155
Multi-Selectmedium

Which THREE of the following are true about the PRINCE2 progress control approach?

Select 3 answers
A.The Highlight Report is sent from the Project Manager to the Project Board
B.The Lessons Report is created at the end of each stage
C.The End Project Report is used to evaluate the project's performance against the Project Initiation Documentation
D.The Exception Report is produced by the Project Board
E.The Checkpoint Report is produced by the Team Manager for the Project Manager
AnswersA, C, E

The Highlight Report provides the Project Board with a summary of stage progress at regular intervals.

Why this answer

Options B, C, and E are correct. The Highlight Report is sent from the PM to the Project Board. The Checkpoint Report is from the Team Manager to the PM.

The End Project Report is used to evaluate project performance against the PID. Option A is false: the Exception Report is produced by the PM, not the Project Board. Option D is false: the Lessons Report is created at the end of the project, not during stage boundaries.

156
Multi-Selectmedium

Which TWO of the following are typical responsibilities of the Project Board?

Select 2 answers
A.Making key decisions and authorizing stage boundaries
B.Day-to-day management of the project
C.Providing overall direction and approving plans
D.Managing configuration items
E.Creating the Project Plan
AnswersA, C

Core Board duties.

Why this answer

The Project Board provides overall direction, approves plans, and makes key decisions. Day-to-day management is the Project Manager's role, and configuration management is typically done by Project Support.

157
MCQmedium

What is the definition of quality in PRINCE2?

A.Conformance to specification
B.Zero defects
C.Customer satisfaction
D.Fit for purpose
AnswerD

PRINCE2 defines quality as 'fit for purpose,' ensuring the product meets the needs of the users.

Why this answer

PRINCE2 defines quality as 'fit for purpose,' meaning the product meets its stated requirements and user expectations.

158
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change is about scope; an Off-specification is about quality
B.A Request for Change is always approved by the Change Authority; an Off-specification is always approved by the Project Board
C.A Request for Change is generated by the Project Manager; an Off-specification is generated by the Team Manager
D.A Request for Change proposes a change to an agreed baseline; an Off-specification is a failure to meet a specification
AnswerD

Request for Change = proposed change; Off-specification = a product failing to meet its agreed specification.

Why this answer

In PRINCE2, a Request for Change (RFC) is a formal proposal to modify any approved baseline (e.g., scope, schedule, cost), while an Off-specification (Off-spec) is a documented deviation where a product or process fails to meet its agreed specification. Option D correctly captures this fundamental distinction: an RFC proposes a change to a baseline, whereas an Off-spec records a failure to meet a specification.

Exam trap

The trap here is that candidates confuse the source or approval authority of RFCs and Off-specs, but PRINCE2 explicitly defines them by their purpose: an RFC proposes a change to a baseline, while an Off-spec records a failure to meet a specification.

How to eliminate wrong answers

Option A is wrong because both RFC and Off-spec can relate to scope or quality; the key difference is that an RFC proposes a change to an agreed baseline, while an Off-spec is a failure to meet a specification, not a scope-versus-quality distinction. Option B is wrong because the Change Authority may approve RFCs within delegated limits, but the Project Board may also approve RFCs or Off-specs; there is no fixed rule that RFCs are always approved by the Change Authority and Off-specs always by the Project Board. Option C is wrong because both RFCs and Off-specs can be generated by various roles (e.g., Project Manager, Team Manager, Senior User); there is no rule that RFCs are generated only by the Project Manager or Off-specs only by the Team Manager.

159
MCQeasy

Which role is responsible for defining the project's acceptance criteria?

A.The Project Manager
B.The Senior Supplier
C.The Executive
D.The Senior User
AnswerD

Correct. The Senior User represents the users and defines acceptance criteria.

Why this answer

The Senior User defines the acceptance criteria on behalf of the users.

160
Multi-Selectmedium

Which TWO of the following are components of the Business Case?

Select 2 answers
A.Risk Register
B.Project Plan
C.Major risks
D.Product Status Account
E.Expected benefits
AnswersC, E

Major risks that could affect the Business Case are included in the Business Case.

Why this answer

Options A and C are correct. The Business Case includes the expected benefits and major risks. The Project Plan is a separate document.

The Risk Register is also separate. The Product Status Account is used in change control.

161
MCQmedium

What is the purpose of product-based planning in PRINCE2?

A.To create a detailed project schedule
B.To assign responsibilities to team members
C.To identify the resources needed for the project
D.To ensure that all products are defined before activities are planned
AnswerD

Correct: product-based planning starts with products.

Why this answer

Product-based planning focuses on defining the required products first, then the activities needed to produce them, ensuring clarity and reducing omissions.

162
MCQhard

In the Change practice, what is the purpose of a Product Status Account?

A.To record configuration item records
B.To report on the current status of one or more products
C.To track issues
D.To authorize changes to products
AnswerB

Correct.

Why this answer

A Product Status Account provides information about the status of products, such as version and location.

163
MCQmedium

A project is forecast to exceed its cost tolerance. What should the Project Manager do?

A.Continue with the current Stage Plan and report in the next Highlight Report
B.Raise an Exception Report to the Project Board
C.Increase the project budget to absorb the additional cost
D.Close the project immediately
AnswerB

This is the correct response to a forecast tolerance breach.

Why this answer

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

164
MCQhard

What is the purpose of a Product Status Account?

A.To define the product breakdown structure.
B.To provide information about the status of products in the project.
C.To authorize changes to a product baseline.
D.To describe the quality criteria for a product.
AnswerB

The Product Status Account provides a snapshot of product statuses.

Why this answer

A Product Status Account is a report on the status of one or more products, typically used to show configuration item records and their current state (e.g., approved, in development). It is not a plan or a quality document.

165
Multi-Selecthard

Which TWO of the following statements about configuration management are correct?

Select 2 answers
A.Configuration item records are part of the Project Plan
B.Configuration management ensures that the project's products are identified and controlled
C.The Quality Register is used to record configuration item details
D.The Product Status Account is a report on the status of products
E.Configuration management is responsible for ensuring the quality of products
AnswersB, D

This is a primary purpose of configuration management.

Why this answer

Options A and C are correct. Configuration management tracks changes to products and ensures their integrity. The Product Status Account is a report that provides information on the status of products.

Option B is false because configuration item records are not part of the project plan; they are stored in a configuration management system. Option D is false because configuration management controls the integrity of products, not the quality of the product (quality management does that). Option E is false because the Quality Register is used for quality control records, not configuration management.

166
MCQmedium

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

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

The PID is the key output of Initiating a Project.

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 essential information, including the Business Case, Project Plan, and Risk Register, to define the project's scope, objectives, and controls. This document is used to confirm that the project is viable and to obtain authorization to proceed.

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), trapping candidates who confuse the two or think the Business Case is the key output of initiation.

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 the initial outline but is not the comprehensive output of initiation. Option B is wrong because a Stage Plan is produced during the Managing a Stage Boundary process for each management stage, not as the key output of Initiating a Project. Option D is wrong because the Business Case is a component within the Project Initiation Documentation, not the key output itself; it is developed and refined during initiation but is part of the PID, not the sole output.

167
MCQmedium

Which register records details of all quality activities planned and performed?

A.Quality Register
B.Configuration Item Record
C.Issue Register
D.Risk Register
AnswerA

The Quality Register records all quality management activities.

Why this answer

The Quality Register is used to record all quality management activities, including planned and completed quality checks.

168
Multi-Selecthard

Which THREE of the following are responsibilities of the Project Board?

Select 3 answers
A.Authorizing stage boundaries
B.Maintaining the risk register
C.Preparing Highlight Reports
D.Providing ad hoc direction
E.Approving the Project Plan
AnswersA, D, E

The Project Board authorizes the start of each stage.

Why this answer

Option A is correct because the Project Board is responsible for authorizing stage boundaries, which involves reviewing the current stage's progress, approving the next stage plan, and ensuring continued business justification. This is a key decision point in PRINCE2 where the Board assesses whether the project should proceed to the next stage.

Exam trap

The trap here is that candidates often confuse the Project Board's strategic responsibilities with the Project Manager's operational tasks, such as maintaining registers or preparing reports, leading them to select options B or C incorrectly.

169
MCQeasy

What is the purpose of the Risk Register?

A.To list only the project's threats and their impacts
B.To document the top 10 risks for the Project Board
C.To record and track all identified risks and their responses
D.To allocate the risk budget
AnswerC

The Risk Register records all risks, their analysis, planned responses, and status.

Why this answer

The Risk Register is the central repository for recording and tracking all identified risks (both threats and opportunities) throughout the project lifecycle. It includes details such as risk description, probability, impact, proximity, and the planned responses, ensuring that every risk is managed and monitored. Option C is correct because it captures the complete purpose of the Risk Register as defined in PRINCE2.

Exam trap

The trap here is confusing the Risk Register with the Risk Management Strategy or the Issue Register; candidates often think the Risk Register only lists threats or only the top risks, but PRINCE2 requires it to capture all risks (threats and opportunities) with full tracking details.

How to eliminate wrong answers

Option A is wrong because the Risk Register records both threats and opportunities, not only threats. Option B is wrong because the Risk Register contains all identified risks, not just the top 10; the top 10 risks may be reported separately to the Project Board. Option D is wrong because the risk budget is allocated in the Risk Management Strategy, not in the Risk Register; the Risk Register tracks risks and their responses, not budget allocation.

170
Multi-Selecthard

Which THREE of the following are components of the PRINCE2 quality management approach?

Select 3 answers
A.Product descriptions
B.Quality register
C.Quality assurance approach
D.Roles and responsibilities for quality
E.Quality control methods
AnswersC, D, E

Part of the quality management approach.

Why this answer

The quality management approach includes the quality control methods, quality assurance approach, and the roles and responsibilities for quality.

171
MCQmedium

During a stage, the Team Manager reports progress to the Project Manager. Which report should the Team Manager use?

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

Correct. Checkpoint Reports are from Team Manager to Project Manager.

Why this answer

In PRINCE2, the Team Manager reports progress to the Project Manager using the Checkpoint Report. This report is a periodic (typically weekly) progress update from the Team Manager to the Project Manager, covering work completed, next steps, and any issues within the work package. It is the formal mechanism for the Team Manager to report on progress during a stage.

Exam trap

The trap here is confusing the direction of reporting: candidates often pick Highlight Report because it sounds like a progress report, but it is produced by the Project Manager for the Project Board, not by the Team Manager for the Project Manager.

How to eliminate wrong answers

Option A (Highlight Report) is wrong because the Highlight Report is produced by the Project Manager for the Project Board, not by the Team Manager for the Project Manager. Option C (End Stage Report) is wrong because it is produced at the end of a stage by the Project Manager for the Project Board, not during a stage by the Team Manager. Option D (Exception Report) is wrong because it is used to report deviations outside tolerance to the Project Board, not for routine progress reporting from the Team Manager to the Project Manager.

172
MCQmedium

Which of the following is NOT a component of the Business Case?

A.Investment appraisal
B.Major risks
C.Expected benefits
D.Risk Register
AnswerD

The Risk Register is a separate management product.

Why this answer

The Business Case includes reasons, benefits, dis-benefits, costs, timescale, risks, etc. The Risk Register is a separate document.

173
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change relates to the Business Case; an Off-specification relates to the Project Plan
B.There is no difference; they are synonyms
C.A Request for Change seeks to change a baseline; an Off-specification is a product not meeting its specification
D.A Request for Change is always raised by the Project Manager; an Off-specification is raised by a Team Manager
AnswerC

Correct. This is the key distinction.

Why this answer

A Request for Change proposes a modification to agreed baselines, while an Off-specification is a product that deviates from its specification.

174
MCQmedium

In PRINCE2, what is the definition of quality?

A.Customer satisfaction
B.Fit for purpose
C.Conformance to specifications
D.Zero defects
AnswerB

Correct definition.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets its agreed requirements.

175
MCQmedium

Who is responsible for identifying and managing risks at the work package level?

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

The Team Manager is responsible for risks associated with their work package.

Why this answer

The Team Manager handles risks within the work package; the Project Manager manages stage-level risks.

176
MCQmedium

In PRINCE2, what is the definition of quality?

A.Zero defects
B.Fit for purpose
C.Customer satisfaction
D.Conformance to specification
AnswerB

This is the PRINCE2 definition of quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets its stated requirements and user needs.

177
MCQmedium

Which role is responsible for ensuring that project assurance is independent of the Project Manager?

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

The Project Board owns assurance to ensure independence.

Why this answer

The Project Board, particularly the Executive and other board members, are responsible for providing independent assurance. Project Assurance is a role on the Project Board.

178
MCQeasy

A project manager is defining the project's approach to managing changes to baselined products. Which practice provides the framework for handling such changes?

A.Risk practice
B.Organization practice
C.Change practice
D.Progress practice
AnswerC

The Change practice provides the change control approach and procedures.

Why this answer

The Change practice in PRINCE2 provides the framework for managing changes to baselined products, including issue and change control procedures, configuration management, and the use of change authority levels. It defines how proposed changes are captured, assessed, and either approved or rejected, ensuring that baselined products are modified in a controlled manner.

Exam trap

The trap here is that candidates often confuse the Change practice with the Progress practice, mistakenly thinking that monitoring progress includes managing changes, but PRINCE2 explicitly separates change control from progress control.

How to eliminate wrong answers

Option A is wrong because the Risk practice deals with identifying, assessing, and controlling uncertainties that could affect the project's objectives, not with managing changes to baselined products. Option B is wrong because the Organization practice defines the project's roles, responsibilities, and stakeholder engagement, not the process for handling changes to baselined products. Option D is wrong because the Progress practice focuses on monitoring and controlling project performance against plans, including tolerances and reporting, not on the specific framework for change control of baselined products.

179
Multi-Selectmedium

Which TWO of the following are types of issue in PRINCE2?

Select 2 answers
A.Risk
B.Off-specification
C.Request for Change
D.Constraint
E.Assumption
AnswersB, C

An Off-specification is a type of issue.

Why this answer

Request for Change and Off-specification are types of issue. Options A and B are correct.

180
MCQmedium

In PRINCE2, which role is responsible for providing independent assurance that the project is being conducted properly?

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

Project Assurance provides independent oversight on behalf of the Board.

Why this answer

Project Assurance is the PRINCE2 role responsible for providing independent assurance that the project is being conducted properly. This role is separate from the Project Manager and Project Support, ensuring objective oversight of the project's adherence to PRINCE2 principles, themes, and processes. The Project Board delegates this responsibility to one or more individuals who are independent of the day-to-day management.

Exam trap

The trap here is that candidates confuse Project Assurance with Project Support, as both are supporting roles, but Project Support is administrative while Project Assurance is independent oversight.

How to eliminate wrong answers

Option B is wrong because Project Support provides administrative and clerical services (e.g., planning tools, filing, risk log updates) but does not provide independent assurance. Option C is wrong because the Team Manager is responsible for delivering the work packages within a team, not for independent oversight of the project's conduct. Option D is wrong because the Project Manager manages the project on a day-to-day basis and cannot provide independent assurance due to their direct involvement.

181
Multi-Selectmedium

Which TWO of the following are components of a Business Case?

Select 2 answers
A.Major risks
B.Expected benefits
C.Configuration item records
D.Product descriptions
E.Project team structure
AnswersA, B

Risks are identified and assessed in the Business Case.

Why this answer

A Business Case in PRINCE2 is the document that justifies the project's initiation and continued viability. Major risks are a component because they must be identified and assessed to determine if the project's potential rewards outweigh the threats. Expected benefits are also a core component, as they define the measurable improvements that the project is expected to deliver, forming the basis for the justification.

Exam trap

PeopleCert often tests the distinction between the contents of the Business Case and the contents of the Project Plan or other management products, leading candidates to mistakenly include project team structure or product descriptions as Business Case components.

182
MCQmedium

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

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

The PID is the key document created during Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output, as it formalises the project's scope, plan, and controls.

183
MCQeasy

Who is responsible for maintaining the Business Case throughout the project?

A.Project Manager
B.Senior Supplier
C.Executive
D.Senior User
AnswerA

The Project Manager maintains the Business Case on behalf of the Executive.

Why this answer

The Project Manager is responsible for maintaining the Business Case as part of day-to-day management, while the Executive owns it and approves changes.

184
MCQeasy

Who is responsible for approving the Project Plan?

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

The Project Board approves the Project Plan.

Why this answer

The Project Board approves the Project Plan as part of the PID during Initiating a Project.

185
MCQhard

A project is forecast to exceed its cost tolerance. What should the Project Manager do?

A.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
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.Close the project immediately as the Business Case is no longer viable
AnswerC

Correct. Escalation via Exception Report is required.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must raise an Exception Report to the Project Board. This is management by exception.

186
MCQeasy

Who is responsible for maintaining the Business Case throughout the project?

A.The Senior User
B.The Executive (Senior Responsible Owner)
C.The Project Assurance
D.The Project Manager
AnswerD

The Project Manager maintains the Business Case throughout the project.

Why this answer

The Project Manager is responsible for maintaining the Business Case throughout the project, including updating it at each stage boundary. The Executive owns the Business Case but does not maintain it.

187
MCQhard

During a stage, a Team Manager reports that a work package is likely to be delayed. What should the Project Manager do?

A.Close the work package and reassign the work to another team
B.Assess the impact on stage tolerances and take corrective action if within tolerance
C.Immediately raise an Exception Report to the Project Board
D.Instruct the Team Manager to continue as planned and report progress in the next Checkpoint Report
AnswerB

The Project Manager manages within tolerances and escalates if exceeded.

Why this answer

The Project Manager must assess the impact on stage tolerances. If the delay is within tolerance, they can take corrective action. If it exceeds tolerance, they must escalate via an Exception Report.

188
Multi-Selectmedium

Which TWO of the following are opportunity responses?

Select 2 answers
A.Reject
B.Avoid
C.Accept
D.Transfer
E.Enhance
AnswersA, E

Reject is an opportunity response (choosing not to take it).

Why this answer

Opportunity responses include exploit, enhance, share, and reject. Avoid and transfer are threat responses.

189
MCQhard

Which of the following is a key difference between a Request for Change (RFC) and an Off-specification (Off-spec)?

A.An RFC proposes a modification to an agreed product; an Off-spec reports that an agreed product does not meet its specification
B.An RFC is always approved by the Project Board, while an Off-spec is always approved by the Change Authority
C.An RFC increases the project budget; an Off-spec decreases it
D.An Off-spec only applies to products not yet completed; an RFC applies only to completed products
AnswerA

This is the core distinction between the two issue types.

Why this answer

An RFC proposes a modification to an agreed product, while an Off-spec reports that an agreed product does not meet its specification. An RFC is proactive; an Off-spec is a deviation that has already occurred.

190
MCQmedium

Which role is responsible for providing independent assurance that the project is being managed correctly?

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

Project Assurance provides independent oversight.

Why this answer

Project Assurance is independent of the Project Manager and reports to the Project Board. Project Support provides administrative support.

191
MCQmedium

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

A.To provide the Project Board with information to review the current stage and approve the next stage plan
B.To update the Business Case
C.To produce the Project Plan
D.To authorize the next stage
AnswerA

This is the primary purpose of the Managing a Stage Boundary process.

Why this answer

Managing a Stage Boundary provides information to the Project Board to review the current stage, approve the next stage plan, and assess continuing viability.

192
MCQeasy

What is the purpose of the Quality Review technique?

A.To plan the quality activities for the project.
B.To assess whether the product is fit for purpose by reviewing it against its quality criteria.
C.To test the product against user acceptance criteria.
D.To approve the Business Case for the project.
AnswerB

The Quality Review assesses whether the product meets its quality criteria.

Why this answer

The Quality Review technique is a structured review of a product to assess its quality against criteria, involving a chair, presenter, and reviewers. It is not a test or acceptance method.

193
Multi-Selecthard

Which THREE of the following are threat response types in PRINCE2?

Select 3 answers
A.Enhance
B.Reduce
C.Transfer
D.Exploit
E.Avoid
AnswersB, C, E

Reduce is a threat response.

Why this answer

In PRINCE2, threat response types are designed to address negative risks (threats). 'Reduce' (also called 'Mitigate') involves taking action to lower the probability and/or impact of a threat to an acceptable level. 'Transfer' shifts the financial or contractual impact of a threat to a third party (e.g., insurance). 'Avoid' involves changing the plan to eliminate the threat entirely or protect the project from its impact. These three are explicitly listed in the PRINCE2 risk management practice.

Exam trap

PeopleCert often tests the confusion between threat and opportunity response types, where candidates mistakenly select 'Enhance' or 'Exploit' as valid threat responses because they sound like proactive actions, but PRINCE2 reserves them exclusively for positive risks.

194
MCQhard

Which risk response is appropriate for an opportunity with high probability and high impact?

A.Enhance
B.Exploit
C.Share
D.Reject
AnswerB

Exploit is used to ensure the opportunity is realized.

Why this answer

For an opportunity with high probability and high impact, the 'exploit' response is appropriate to maximize the benefit.

195
MCQeasy

Which role is accountable for the business justification of a PRINCE2 project?

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

The Executive owns the business case.

Why this answer

The Executive (SRO) is ultimately accountable for the business case and justification.

196
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change is always raised by the Project Board, while Off-specification is raised by the Project Manager
B.A Request for Change requires a change budget, while Off-specification does not
C.A Request for Change proposes a new or modified product, while an Off-specification records something that should have been provided but is missing
D.Off-specification is a type of risk, while Request for Change is a type of issue
AnswerC

This correctly distinguishes the two issue types.

Why this answer

A Request for Change proposes a modification to an agreed baseline, whereas an Off-specification identifies something that was specified but not delivered.

197
MCQmedium

A project is using the product-based planning technique. Which document describes the hierarchy of products to be created?

A.Product Breakdown Structure
B.Project Plan
C.Product Flow Diagram
D.Product Description
AnswerA

A hierarchical decomposition of all products.

Why this answer

The Product Breakdown Structure (PBS) is a hierarchical diagram showing all products in the project. The Product Flow Diagram shows sequence, and Product Descriptions define quality criteria.

198
Multi-Selecthard

Which THREE of the following are PRINCE2 management products that contain baselines?

Select 3 answers
A.Stage Plan
B.Issue Register
C.Highlight Report
D.Project Plan
E.Product Description
AnswersA, D, E

Stage Plans are baselined at the start of each stage.

Why this answer

The Project Plan, Stage Plans, and Product Descriptions are baselined. Highlight Reports are reports, not baselines. The Issue Register records issues but is not a baseline.

199
Multi-Selectmedium

Which TWO of the following are components of the Business Case?

Select 2 answers
A.Major risks
B.Configuration item records
C.Quality criteria
D.Expected benefits
E.Product descriptions
AnswersA, D

Yes, major risks are included.

Why this answer

Expected benefits and major risks are standard components of a Business Case. Dis-benefits and timescales are also components, but the question asks for specific ones.

200
MCQmedium

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

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

The PID is the key output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output that defines the project and provides a baseline for decision-making.

201
MCQmedium

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

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

The PID is the key output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It provides a comprehensive baseline for the project.

202
Multi-Selectmedium

Which TWO roles are members of the Project Board?

Select 2 answers
A.Executive
B.Project Manager
C.Senior Supplier
D.Team Manager
E.Project Support
AnswersA, C

The Executive chairs the Project Board.

Why this answer

The Project Board consists of the Executive, Senior User, and Senior Supplier. The Project Manager and Team Manager are not board members.

203
MCQmedium

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

A.To initiate the project
B.To close the project
C.To direct and control the project on a day-to-day basis
D.To provide the Project Board with information to review the current stage and approve the next stage plan
AnswerD

This is the purpose of Managing a Stage Boundary.

Why this answer

The Managing a Stage Boundary process provides the Project Board with information needed to review the current stage, approve the next stage plan, and assess ongoing business justification.

204
MCQmedium

What is the first step in the recommended risk management procedure?

A.Implement
B.Assess
C.Plan
D.Identify
AnswerD

Identify is the first step in the risk management procedure.

Why this answer

The risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate. Identify is first.

205
MCQeasy

Who is responsible for appointing the Project Manager?

A.Senior User
B.Project Board
C.Executive
D.Programme Management
AnswerC

Correct. The Executive appoints the Project Manager.

Why this answer

In PRINCE2, the Executive is the single individual on the Project Board who has overall accountability for the project's business justification and success. The Executive is responsible for appointing the Project Manager, as defined in the PRINCE2 manual's management roles section. This ensures the Project Manager is selected by the person who owns the business case and can delegate day-to-day management authority.

Exam trap

The trap here is that candidates often assume the Project Board as a whole appoints the Project Manager, but PRINCE2 specifically assigns this duty to the Executive to maintain clear accountability for the business case.

How to eliminate wrong answers

Option A is wrong because the Senior User represents the interests of those who will use the project's products, but they do not have the authority to appoint the Project Manager; that responsibility lies with the Executive. Option B is wrong because the Project Board as a whole is responsible for overall project direction and key decisions, but the specific role of appointing the Project Manager is assigned solely to the Executive, not the collective board. Option D is wrong because Programme Management is responsible for managing the programme within which the project may sit, but the appointment of a project's Project Manager is a project-level decision made by the Executive, not the programme level.

206
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change is raised by the Project Manager, while an Off-specification is raised by the Team Manager
B.A Request for Change is for future products, while an Off-specification is for completed products
C.A Request for Change is about scope changes, while an Off-specification is about schedule changes
D.A Request for Change proposes a modification to a product specification, while an Off-specification is a product that has not met its specification
AnswerD

This is the key distinction: RFC is a proposed change; Off-spec is a failure to meet the agreed specification.

Why this answer

A Request for Change is a proposal for a modification (new requirement), while an Off-specification is a product that has failed to meet its specification. Both are issue types. Option C correctly captures this.

207
MCQhard

The Project Manager is planning the next stage and needs to define the order in which products will be developed. Which product-based planning technique should they use?

A.Gantt chart
B.Product Flow Diagram
C.Work Breakdown Structure
D.Product Breakdown Structure
AnswerB

PFD shows the logical sequence of product development.

Why this answer

The Product Flow Diagram shows the sequence and dependencies of product development.

208
Multi-Selecthard

Which THREE of the following are correct about the PRINCE2 progress practice?

Select 3 answers
A.Highlight Reports are produced by the Project Manager for the Project Board.
B.The Project Manager sets stage tolerances for the project.
C.Tolerances are only set at the project level, not at the stage level.
D.The Project Board uses management by exception to control the project.
E.Checkpoint Reports are produced by Team Managers for the Project Manager.
AnswersA, D, E

Correct. Highlight Reports give the Board a regular summary of stage progress.

Why this answer

Option A is correct: the Project Board uses management by exception, setting tolerances and only intervening when breached. Option C is correct: Checkpoint Reports are from Team Manager to Project Manager. Option D is correct: Highlight Reports are from Project Manager to Project Board.

Option B is incorrect because tolerances are set for each stage, not just at project level. Option E is incorrect because the Project Manager does not set stage tolerances; the Project Board does.

209
Multi-Selectmedium

Which TWO of the following are outputs of the Managing a Stage Boundary process?

Select 2 answers
A.Project Plan
B.Benefits Review Plan
C.Stage Plan for the next stage
D.Project Brief
E.End Stage Report
AnswersC, E

A Stage Plan for the next stage is produced.

Why this answer

The Managing a Stage Boundary process produces an End Stage Report and a Stage Plan for the next stage. The Project Plan is updated, not created. The Benefits Review Plan is created during the Initiating a Project process.

210
MCQmedium

In PRINCE2, which document is the key output of the Initiating a Project process?

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

The PID is the comprehensive document produced at the end of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of Initiating a Project, providing the baseline for project management.

211
MCQeasy

Who is responsible for maintaining the Business Case throughout the project?

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

The Project Manager maintains the Business Case throughout the project.

Why this answer

The Project Manager is responsible for maintaining the Business Case on a day-to-day basis, while the Executive (Senior Responsible Owner) owns it and is ultimately accountable for the business justification.

212
MCQhard

What is the difference between Quality Assurance and Quality Control in PRINCE2?

A.Quality Assurance is performed by the Project Manager; Quality Control is performed by the team
B.Quality Assurance is an independent check of management processes; Quality Control checks product quality
C.There is no difference; they are synonymous in PRINCE2
D.Quality Assurance focuses on products; Quality Control focuses on processes
AnswerB

Correct: QA ensures processes are used; QC ensures products meet criteria.

Why this answer

Quality Assurance is an independent check that processes are followed; Quality Control checks that products meet specifications.

213
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change is raised by the team; an Off-specification is raised by the Project Board
B.A Request for Change is for new requirements; an Off-specification is a product not meeting its specification
C.There is no difference; they are synonyms
D.A Request for Change is always about cost; an Off-specification is about quality
AnswerB

Correct distinction.

Why this answer

A Request for Change proposes a change that is not currently required by the baseline, while an Off-specification is a failure to deliver something that was specified.

214
MCQeasy

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

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

PID is the key output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing a firm foundation for the project.

215
MCQhard

During the Initiating a Project process, the project manager is defining the project's approach to quality. Which practice provides the framework for quality planning and control?

A.Risk
B.Plans
C.Quality
D.Change
AnswerC

The Quality practice provides the framework for quality planning and control.

Why this answer

The Quality practice in PRINCE2 provides the framework for quality planning and control. It defines how the project will ensure that its products meet customer expectations and are fit for purpose, including the methods for quality assurance and quality control activities. During the Initiating a Project process, the project manager uses this practice to establish the project's approach to quality, which is documented in the Quality Management Strategy.

Exam trap

The trap here is that candidates often confuse the 'Quality' practice with the 'Plans' practice, mistakenly thinking that planning for quality is simply part of the project plan, rather than recognizing that PRINCE2 treats quality as a distinct practice with its own management strategy and control mechanisms.

How to eliminate wrong answers

Option A is wrong because the Risk practice focuses on identifying, assessing, and controlling uncertainties that could affect the project's objectives, not on defining the approach to quality planning and control. Option B is wrong because the Plans practice deals with defining the means of delivering the products (the 'how' and 'when'), including schedules and resources, but does not provide the framework for quality management. Option D is wrong because the Change practice handles the management of issues and changes to baselined products, ensuring that changes are controlled and evaluated, not the systematic approach to quality.

216
MCQmedium

Which register is used to record issues that may affect the project's baselines?

A.Quality Register
B.Issue Register
C.Risk Register
D.Lessons Log
AnswerB

The Issue Register records any issue that could affect the project's baselines.

Why this answer

The Issue Register is the PRINCE2 management product used to capture and manage issues that may affect the project's baselines, such as scope, schedule, or cost. Baselines are formally approved versions of management products, and any proposed change, off-specification, or problem/concern that could impact them must be logged in the Issue Register for assessment and decision-making.

Exam trap

PeopleCert often tests the distinction between registers that record proactive management products (Risk Register for uncertainties, Quality Register for checks) versus the Issue Register, which is specifically for reactive events that have already occurred and may impact baselines.

How to eliminate wrong answers

Option A is wrong because the Quality Register records quality activities, such as planned quality checks and their results, not issues that affect baselines. Option C is wrong because the Risk Register records identified risks (threats and opportunities) and their management responses, not issues that are already occurring or could affect baselines. Option D is wrong because the Lessons Log captures lessons learned during the project for future benefit, not current issues that impact baselines.

217
MCQmedium

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

A.To produce an Exception Plan for the project
B.To enable the Project Board to review the progress of the current stage and approve the next stage
C.To close the project and produce the End Project Report
D.To control the day-to-day activities of the stage
AnswerB

Correct: SB allows the Board to review and authorize continuation.

Why this answer

The purpose is to provide the Project Board with information to review the current stage, approve the next stage plan, and confirm continued business justification.

218
MCQeasy

What is the definition of quality in PRINCE2?

A.Conformance to specification
B.Maximum customer satisfaction
C.Zero defects
D.Fit for purpose
AnswerD

This is PRINCE2's definition of quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets the stated requirements. Option A is correct.

219
MCQmedium

Which process is triggered when a stage tolerance is forecast to be exceeded?

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

During Controlling a Stage, the PM monitors tolerances and escalates via an Exception Report if a forecast breach occurs.

Why this answer

In PRINCE2, when a stage tolerance is forecast to be exceeded, the project manager must escalate the issue to the project board. This is done through the 'Controlling a Stage' process, which includes the 'Escalate' activity. The process ensures that the project manager reports the forecast deviation and requests guidance or a decision from the project board, rather than taking corrective action independently.

Exam trap

The trap here is that candidates often confuse 'Managing a Stage Boundary' (which deals with end-of-stage planning and tolerance assessment) with the in-stage escalation mechanism, but PRINCE2 explicitly uses 'Controlling a Stage' for handling tolerance exceptions during a stage.

How to eliminate wrong answers

Option A is wrong because 'Starting Up a Project' is the pre-project process that occurs before the project is initiated, not during a stage when tolerances are exceeded. Option B is wrong because 'Directing a Project' is the process used by the project board to make key decisions and provide overall direction, but it is not triggered by a stage tolerance forecast; it receives escalations from 'Controlling a Stage'. Option C is wrong because 'Managing a Stage Boundary' is used to plan the next stage and assess stage status at the end of a stage, not to handle in-stage tolerance exceptions.

220
MCQeasy

What is the purpose of the Quality Review technique?

A.To update the Business Case with actual costs
B.To train users on the new product
C.To assess whether a product meets its quality criteria
D.To finalize the project and approve closure
AnswerC

The Quality Review technique evaluates a product against its defined quality criteria.

Why this answer

The Quality Review technique is a structured review to assess whether a product meets its quality criteria and to identify defects. It is not for updating the Business Case, finalizing the project, or training users.

221
MCQeasy

Which of the following is NOT a component of the Business Case?

A.Expected benefits
B.Project Plan
C.Investment appraisal
D.Major risks
AnswerB

The Project Plan is not a component of the Business Case.

Why this answer

The Business Case components include reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Project Plan is a separate management product.

222
MCQmedium

What is the purpose of the Highlight Report?

A.To escalate a tolerance deviation to the Project Board
B.To document lessons learned at the end of a stage
C.To report progress of a Work Package from Team Manager to Project Manager
D.To provide the Project Board with a summary of stage progress at regular intervals
AnswerD

This is the purpose of the Highlight Report.

Why this answer

The Highlight Report is a regular report from the Project Manager to the Project Board summarizing progress, achievements, and issues within the current stage.

223
MCQeasy

Who is responsible for the day-to-day management of project risks?

A.Executive
B.Risk Actionee
C.Project Manager
D.Risk Owner
AnswerC

The Project Manager is responsible for ongoing risk management activities.

Why this answer

Option B is correct. The Project Manager is responsible for the day-to-day management of risks, including maintaining the Risk Register and coordinating risk responses. Option A is wrong because the Executive owns the Business Case, not risk management.

Option C is wrong because the risk owner is assigned for a specific risk, not overall management. Option D is wrong because the risk actionee implements a specific risk response.

224
MCQhard

Which of the following is a risk response appropriate for an opportunity?

A.Reduce
B.Enhance
C.Avoid
D.Transfer
AnswerB

Enhance is an opportunity response.

Why this answer

PRINCE2 defines four opportunity responses: exploit, enhance, share, and reject. 'Enhance' is one of these.

225
MCQhard

Who typically authorizes the use of the change budget?

A.Project Board
B.Project Manager
C.Senior User
D.Change Authority
AnswerA

The Project Board authorizes the change budget as part of the project's financial delegation.

Why this answer

The Project Board authorizes the change budget, but they may delegate authority to the Change Authority to approve changes within that budget.

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