CCNA Prince2 Practices Questions

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

601
MCQhard

The Project Board delegates authority to approve changes that are within a certain budget to a Change Authority. The Project Manager receives a Request for Change that is within this budget but will affect a configuration item that is not under the Change Authority's scope. What should the Project Manager do?

A.Approve the change using the Change Budget
B.Reject the change because it affects a configuration item
C.Ask the Change Authority to decide
D.Refer the change to the Project Board for decision
AnswerD

The Project Board must decide because the change affects items beyond the Change Authority's authority.

Why this answer

If the change is outside the Change Authority's delegated scope (e.g., affects items they cannot approve), the Project Manager must escalate to the Project Board.

602
MCQhard

During the Controlling a Stage process, a Team Manager reports that a work package is complete. What should the Project Manager do next?

A.Immediately authorize the next work package
B.Review the work package and, if acceptable, approve it
C.Update the Project Plan
D.Raise an Exception Report
AnswerB

Correct action.

Why this answer

The Project Manager should review the completed work package to ensure it meets acceptance criteria before approving it.

603
Multi-Selectmedium

Which TWO of the following are purposes of the Directing a Project process?

Select 2 answers
A.To authorize the stage plans
B.To manage the day-to-day activities of the project
C.To authorize the initiation of the project
D.To create the Exception Plan
E.To accept work packages from the Project Manager
AnswersA, C

Correct. The Project Board authorizes each stage plan.

Why this answer

The Directing a Project process is for the Project Board to make key decisions and provide overall control. Option A is correct: authorizing initiation is a key decision. Option D is correct: authorizing stage plans is also a Board responsibility.

Option B is a PM activity; option C is done in Managing Product Delivery; option E is done in Managing a Stage Boundary.

604
MCQmedium

What is the purpose of the Quality Register in PRINCE2?

A.To document the quality management strategy
B.To store product descriptions for quality control
C.To record defects found during quality inspections
D.To plan quality activities and track their completion
AnswerD

The Quality Register is used to schedule and monitor quality activities.

Why this answer

The Quality Register records all planned quality activities and their results, serving as a log of quality events.

605
MCQhard

In the Risk Management procedure, what is the difference between a risk owner and a risk actionee?

A.The risk owner is accountable for managing the risk; the risk actionee carries out the risk response actions.
B.The risk owner manages the risk on a day-to-day basis; the risk actionee reports progress.
C.There is no difference; the terms are synonymous.
D.The risk owner is responsible for identifying the risk; the risk actionee implements the response.
AnswerA

The risk owner is accountable; the risk actionee executes specific actions.

Why this answer

The risk owner is accountable for the risk and ensures it is managed. The risk actionee is assigned to carry out specific responses. One risk owner may have several actionees.

606
MCQhard

A project manager is preparing the Business Case for a new project. The expected benefits are $500,000, and the expected costs are $400,000. However, there is a high risk that the benefits may be only $300,000 due to market uncertainty. According to PRINCE2 practices, how should the project manager reflect this in the Business Case?

A.Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty.
B.Use the lower benefit estimate of $300,000 to be conservative.
C.Use the expected benefits of $500,000 as the primary figure, with a note that benefits may vary.
D.Omit the risk from the Business Case to avoid discouraging stakeholders.
AnswerA

The Business Case should present realistic scenarios and associated risks.

Why this answer

Option A is correct because PRINCE2 requires the Business Case to be a living document that reflects realistic projections, including uncertainties. By showing a range of benefits ($300,000–$500,000) and a corresponding risk assessment, the project manager provides a balanced view that supports informed decision-making, aligning with the 'continued business justification' principle.

Exam trap

The trap here is that candidates often choose a single 'conservative' estimate (Option B) thinking it is prudent, but PRINCE2 requires transparency through a range and risk assessment rather than hiding uncertainty or oversimplifying the analysis.

How to eliminate wrong answers

Option B is wrong because using only the lower benefit estimate ($300,000) is overly conservative and does not reflect the full potential upside, which could lead to rejecting a viable project; PRINCE2 advocates for a range or sensitivity analysis rather than a single pessimistic figure. Option C is wrong because using $500,000 as the primary figure with only a note downplays the significant risk, failing the PRINCE2 requirement to explicitly evaluate and document risks in the Business Case. Option D is wrong because omitting the risk entirely violates the 'continued business justification' principle and the PRINCE2 requirement that the Business Case must include a risk assessment to support ongoing viability checks.

607
MCQeasy

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

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

The Project Manager is responsible for maintaining the Business Case throughout the project.

Why this answer

The Project Manager maintains the Business Case on a day-to-day basis, but the Executive owns it and is accountable for the business justification.

608
MCQeasy

Which role is responsible for implementing the risk responses?

A.The risk actionee
B.The change authority
C.The risk owner
D.The Project Manager
AnswerA

The risk actionee performs the response actions.

Why this answer

The risk actionee is assigned to implement the response actions, while the risk owner is accountable for managing the risk.

609
Multi-Selecthard

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Select 3 answers
A.Project Description
B.Business Case
C.Project Plan
D.Checkpoint Report
E.Risk Register
AnswersA, B, C

The Project Description is part of the PID.

Why this answer

The PID includes the Business Case, Project Plan, Project Description, roles and responsibilities, etc. The Risk Register is a separate document, and the Checkpoint Report is a management product.

610
Matchingmedium

Match each level of management in PRINCE2 to its description.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

Provides direction and resources for the project.

Accountable for the project's success and makes key decisions.

Responsible for day-to-day management and control.

Responsible for delivering one or more products within a work package.

Why these pairings

These are the four levels of management hierarchy in PRINCE2.

611
MCQeasy

In PRINCE2, what is the purpose of the Risk Register?

A.To record lessons learned
B.To record quality review results
C.To record all identified risks and their management
D.To record all issues raised during the project
AnswerC

The Risk Register captures risk identification, assessment, response planning, and status.

Why this answer

The Risk Register records identified risks, their analysis, planned responses, and status. It is a central repository for risk information.

612
MCQmedium

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

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

The PID is created during the Initiating a Project process and provides the foundation for project management.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It defines the 'what, why, who, when, and how' of the project.

613
MCQhard

In PRINCE2, who owns the risk?

A.Project Manager
B.Executive
C.Risk actionee
D.Risk owner
AnswerD

The risk owner is assigned to manage the risk and is accountable.

Why this answer

The risk owner is responsible for managing the risk. The risk actionee performs actions.

614
MCQeasy

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

A.To initiate the project.
B.To close the project.
C.To control the work within a stage.
D.To review the previous stage and plan the next stage.
AnswerD

The process reviews the current stage and prepares the next stage plan.

Why this answer

The purpose of Managing a Stage Boundary is to provide the Project Board with information to approve the current stage's completion and authorize the next stage.

615
MCQeasy

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

A.Executive (Senior Responsible Owner)
B.Senior User
C.Project Manager
D.Project Board
AnswerA

The Executive owns the Business Case and is responsible for it throughout the project.

Why this answer

The Executive (Senior Responsible Owner) is responsible for maintaining the Business Case throughout the project because they own the project's justification and ensure it remains viable. PRINCE2 explicitly assigns this accountability to the Executive, who must approve any changes to the Business Case and confirm its continued alignment with corporate strategy. The Project Manager develops and updates the Business Case, but the Executive holds ultimate responsibility for its content and approval.

Exam trap

The trap here is that candidates often confuse the Project Manager's role in developing and updating the Business Case with the Executive's ownership and maintenance responsibility, leading them to incorrectly select the Project Manager.

How to eliminate wrong answers

Option B (Senior User) is wrong because the Senior User represents the interests of those who will use the project's outputs and specifies requirements, but does not own or maintain the Business Case. Option C (Project Manager) is wrong because the Project Manager is responsible for developing, updating, and managing the Business Case on a day-to-day basis, but the Executive retains ownership and final approval authority. Option D (Project Board) is wrong because the Project Board as a whole makes key decisions and approves the Business Case, but the Executive is the single individual accountable for its maintenance and ongoing viability.

616
MCQmedium

What is the purpose of the Quality Register?

A.To record quality activities such as reviews and audits
B.To record lessons learned
C.To record product descriptions
D.To record the project's acceptance criteria
AnswerA

Correct.

Why this answer

The Quality Register records all quality management activities, including planned and actual dates, and results.

617
MCQeasy

Which document records the quality checks to be performed on a product?

A.Project Plan
B.Quality Register
C.Product Description
D.Risk Register
AnswerC

The Product Description specifies the quality criteria and quality checks.

Why this answer

The Product Description includes quality criteria and the quality method to be used. The Quality Register records the actual results of quality activities.

618
MCQmedium

According to PRINCE2, what is the definition of quality?

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

PRINCE2 uses 'fit for purpose' to define quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product must satisfy the user's stated or implied needs.

619
Multi-Selectmedium

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

Select 3 answers
A.Major risks
B.Project Plan
C.Lessons learned
D.Expected benefits
E.Dis-benefits
AnswersA, D, E

Major risks are included in the Business Case.

Why this answer

The Business Case includes reasons, expected benefits, costs, timescale, major risks, and other elements. Benefits and dis-benefits are included.

620
MCQeasy

What is the definition of quality in PRINCE2?

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

Correct definition.

Why this answer

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

621
Multi-Selectmedium

Which TWO of the following are required components of the Product Description?

Select 2 answers
A.Purpose of the product
B.Quality criteria
C.Gantt chart for product development
D.Change budget allocated to the product
E.Cost of the product
AnswersA, B

The purpose describes why the product is needed.

Why this answer

Options A and C are correct. The Product Description includes the purpose of the product and the quality criteria it must meet. It does not include a Gantt chart (that's part of the plan) or the change budget (financial).

The product's cost is not a standard component.

622
MCQmedium

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

A.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
B.Raise an Exception Report to the Project Board and await their direction before proceeding
C.Close the project immediately as the Business Case is no longer viable
D.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
AnswerB

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

Why this answer

Option C is correct. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report — this is PRINCE2's management by exception principle. The Project Manager cannot unilaterally decide to exceed tolerances; that requires Project Board authorisation.

Option A is wrong because the PM cannot increase the budget without Project Board approval. Option B is wrong because continuing without escalation violates management by exception. Option D is wrong because closing the project is not the appropriate response to a stage tolerance breach.

623
MCQeasy

What is the definition of quality in PRINCE2?

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

This is the correct PRINCE2 definition of quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets the stated requirements and is suitable for its intended use.

624
MCQeasy

Which role is responsible for maintaining the Business Case throughout the project?

A.Project Manager
B.Executive
C.Senior User
D.Project Assurance
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 on behalf of the Executive. The Executive owns it but the PM updates it as needed.

625
MCQhard

What is the difference between a Request for Change (RFC) and an Off-specification (Off-spec)?

A.An RFC proposes a change to an agreed baseline; an Off-spec reports a failure to meet the specification
B.An RFC is raised by the Project Board; an Off-spec is raised by the Project Manager
C.An RFC is about scope changes; an Off-spec is about quality defects only
D.An RFC is raised before the product is baselined; an Off-spec is raised after baselining
AnswerA

This correctly distinguishes the two issue types.

Why this answer

An RFC is a request to change a product's specification that has been agreed, whereas an Off-spec is something that should be provided but is not (or is forecast not to be).

626
MCQmedium

Which role is responsible for independent assurance of the project?

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

Project Assurance provides independent oversight to the Project Board.

Why this answer

Project Assurance is an independent role on behalf of the Project Board, separate from management and support.

627
MCQmedium

Which document describes the quality methods and tools to be used, and the responsibilities for quality throughout the project?

A.Project Plan
B.Business Case
C.Product Description
D.Quality Management Approach
AnswerD

This document defines how quality will be managed, including methods, tools, and responsibilities.

Why this answer

Option B is correct. The Quality Management Approach defines the quality procedures, techniques, standards, and responsibilities. The Project Plan includes timelines and costs.

The Business Case covers justification. The Product Description defines quality criteria for a specific product.

628
MCQmedium

A project is forecast to exceed its cost tolerance for the current stage. According to PRINCE2, what should the Project Manager do?

A.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
B.Raise an Exception Report to the Project Board and await their direction
C.Close the project immediately as the Business Case is no longer viable
D.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
AnswerB

When tolerance is forecast to be exceeded, the PM must escalate via an Exception Report.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must immediately escalate to the Project Board via an Exception Report. This is a core aspect of management by exception.

629
MCQmedium

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

A.To close the project
B.To plan the next stage and request its approval from the Project Board
C.To manage day-to-day activities within a stage
D.To initiate the project
AnswerB

Correct. It produces an End Stage Report and Stage Plan for the next stage.

Why this answer

Managing a Stage Boundary's purpose is to provide the Project Board with information to approve the next stage and review the Business Case.

630
MCQeasy

Based on the exhibit, what is the purpose of including expected dis-benefits in the Business Case?

A.To identify risks that could affect the project
B.To show the full cost of the project including ongoing operational costs
C.To provide a balanced view of the project's justification
D.To document the project's key performance indicators
AnswerC

Dis-benefits are included to give a complete picture of the project's value, including both positive and negative outcomes.

Why this answer

Option C is correct because the PRINCE2 Business Case must include expected dis-benefits to provide a balanced view of the project's justification. Dis-benefits are measurable negative outcomes that, when weighed against benefits, allow the Senior User and Senior Supplier to make an informed go/no-go decision. Without documenting dis-benefits, the Business Case would present an incomplete picture, potentially leading to approval of a project with hidden negative impacts.

Exam trap

The trap here is that candidates often confuse dis-benefits with risks or costs, but PRINCE2 explicitly separates them: dis-benefits are certain negative outcomes, risks are uncertain events, and costs are financial expenditures.

How to eliminate wrong answers

Option A is wrong because dis-benefits are not risks; they are certain negative outcomes that will occur if the project is successful, whereas risks are uncertain events that may or may not happen. Option B is wrong because the full cost of the project including ongoing operational costs is captured in the 'Costs' section of the Business Case, not in the dis-benefits section. Option D is wrong because Key Performance Indicators (KPIs) are used to measure benefits achievement during and after the project, not to document expected dis-benefits.

631
MCQmedium

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

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

The PID is the comprehensive document.

Why this answer

The Project Initiation Documentation (PID) is produced during Initiating a Project and provides a foundation for project execution.

632
MCQhard

What is the primary difference between a Highlight Report and a Checkpoint Report?

A.A Highlight Report is sent to the Project Board; a Checkpoint Report is sent to the Project Manager
B.A Highlight Report is produced weekly; a Checkpoint Report is produced daily
C.A Highlight Report covers the entire project; a Checkpoint Report covers a stage
D.There is no difference; they are the same report with different names
AnswerA

Correct. Highlight: PM to Board; Checkpoint: Team Manager to PM.

Why this answer

Highlight Reports are from PM to Project Board; Checkpoint Reports are from Team Manager to PM.

633
MCQmedium

In PRINCE2, who is responsible for ensuring that project assurance is independent of the Project Manager?

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

The Project Board appoints and ensures independent assurance.

Why this answer

The Project Board is responsible for ensuring that project assurance is independent of the Project Manager.

634
MCQeasy

Which role is responsible for ensuring that the project's objectives are achieved and that the project delivers the required products?

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

The Project Manager is responsible for achieving project objectives.

Why this answer

The Project Manager is accountable for day-to-day management and ensuring objectives are met.

635
MCQhard

What is the difference between a Highlight Report and a Checkpoint Report?

A.Highlight Reports are produced by the Project Manager; Checkpoint Reports are produced by the Team Manager
B.Highlight Reports are for the Project Board; Checkpoint Reports are for the Project Manager
C.Highlight Reports are produced weekly; Checkpoint Reports are produced daily
D.There is no difference; they are the same document
AnswerA

Highlight Reports go to the Project Board; Checkpoint Reports go to the Project Manager.

Why this answer

Highlight Reports are from Project Manager to Project Board and cover the whole stage. Checkpoint Reports are from Team Manager to Project Manager and cover a team's work.

636
MCQeasy

Who chairs the Project Board?

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

The Executive chairs the Project Board.

Why this answer

The Executive is the chair of the Project Board in PRINCE2 because they are ultimately accountable for the project's success and have the authority to make key decisions. The Project Board is a decision-making body, and the Executive, as the business representative, chairs it to ensure alignment with organizational objectives. The Project Manager is a board member but does not chair it, as they are responsible for day-to-day management.

Exam trap

PeopleCert often tests the misconception that the Project Manager chairs the Project Board because they run meetings, but PRINCE2 explicitly assigns this role to the Executive to maintain separation of management and decision-making authority.

How to eliminate wrong answers

Option A is wrong because the Project Manager is a member of the Project Board but does not chair it; their role is to manage the project on behalf of the board. Option B is wrong because the Senior Supplier represents the supplier interests and is not the chair; the chair is always the Executive. Option D is wrong because the Senior User represents user requirements and is not the chair; the Executive holds the chairing responsibility.

637
MCQmedium

Which risk response is appropriate for an opportunity?

A.Exploit
B.Reduce
C.Transfer
D.Avoid
AnswerA

Exploit is an opportunity response to make the opportunity happen.

Why this answer

For opportunities, PRINCE2 suggests responses: exploit, enhance, share, or reject. Avoid is a threat response.

638
MCQmedium

Which report is produced by the Team Manager and sent to the Project Manager on a regular basis?

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

Correct. The Team Manager produces the Checkpoint Report for the Project Manager.

Why this answer

The Checkpoint Report is produced by the Team Manager and sent to the Project Manager to report progress at the work package level.

639
MCQeasy

What is the definition of quality in PRINCE2?

A.Customer satisfaction
B.Zero defects
C.Fit for purpose
D.Conformance to requirements
AnswerC

PRINCE2 defines quality as being fit for purpose.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets its stated requirements and is suitable for its intended use.

640
MCQmedium

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

A.To produce the Project Plan
B.To plan the next stage in detail and obtain approval to proceed
C.To authorize the work packages for the next stage
D.To produce an Exception Plan for the project
AnswerB

This is the correct purpose.

Why this answer

The purpose is to enable the Project Board to review the current stage's performance, approve the next stage plan, and update the Business Case and project plan.

641
MCQmedium

In PRINCE2, what is the definition of quality?

A.Excellence of the product
B.Conformance to specification
C.Zero defects
D.Fit for purpose
AnswerD

Correct definition.

Why this answer

In PRINCE2, quality is defined as 'fit for purpose,' meaning the product must meet the stated user needs and expectations. This definition aligns with the PRINCE2 principle of continued business justification, ensuring the product delivers value. It is broader than mere conformance to specification, as it considers the product's usability and effectiveness in its intended environment.

Exam trap

The trap here is that candidates often confuse 'conformance to specification' (a manufacturing-centric view) with PRINCE2's broader 'fit for purpose' definition, which emphasizes user satisfaction and business value over strict adherence to documented requirements.

How to eliminate wrong answers

Option A is wrong because 'excellence of the product' is a subjective and vague term that does not align with PRINCE2's measurable, criteria-based quality definition. Option B is wrong because 'conformance to specification' focuses only on meeting written requirements, ignoring whether the product actually satisfies user needs or is usable in practice. Option C is wrong because 'zero defects' is an unrealistic and overly narrow target that does not account for the product's overall suitability or the cost-benefit balance of quality efforts.

642
MCQhard

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

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

Correct action under management by exception.

Why this answer

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

643
MCQhard

What is the difference between a risk owner and a risk actionee?

A.The risk owner is accountable for the risk; the risk actionee carries out the agreed response actions
B.They are the same role with different names
C.The risk owner is from the project board; the actionee is from the team
D.The risk owner is responsible for implementing responses; the actionee monitors the risk
AnswerA

Correct.

Why this answer

The risk owner is accountable for managing the risk; the risk actionee performs the specific actions.

644
Multi-Selectmedium

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

Select 2 answers
A.Product Description
B.Costs
C.Project Plan
D.Risk Register
E.Expected benefits
AnswersB, E

Costs are included in the Business Case.

Why this answer

The Business Case includes expected benefits, costs, timescale, risks, and investment appraisal. The Project Plan is not a component; it is a separate management product. The Risk Register is also separate.

645
Multi-Selectmedium

Which THREE of the following are components of a Product Description?

Select 3 answers
A.Quality criteria
B.Composition
C.Acceptance criteria
D.Purpose
E.Project Plan
AnswersA, B, D

Quality criteria are part of the description.

Why this answer

A Product Description includes: identifier, title, purpose, composition, derivation, format, quality criteria, quality tolerance, quality method, quality skills required.

646
MCQeasy

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

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

The Project Manager maintains the Business Case, but the Executive owns it.

Why this answer

The Business Case is owned by the Executive (Senior Responsible Owner) and is maintained by the Project Manager on a day-to-day basis.

647
MCQhard

A project has identified a threat that could delay the delivery of a key product. The Project Board decides to assign a contingency budget to respond to the threat if it materializes. Which risk response type has been used?

A.Accept
B.Transfer
C.Fallback
D.Reduce
AnswerC

Fallback involves having a contingency plan that is implemented if the risk occurs.

Why this answer

Option C is correct. A fallback response involves having a contingency plan and budget that will be implemented if the risk materializes. Option A is incorrect because reduce involves decreasing the probability or impact.

Option B is incorrect because transfer involves shifting the risk to a third party. Option D is incorrect because accept involves acknowledging the risk without active action.

648
MCQeasy

Which role owns the Business Case in a PRINCE2 project?

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

Correct. The Executive owns the Business Case.

Why this answer

The Executive (Senior Responsible Owner) owns the Business Case and is accountable for its viability.

649
MCQeasy

Who is responsible for maintaining the Business Case throughout a PRINCE2 project?

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

The Executive is the owner of the Business Case.

Why this answer

The Executive (Senior Responsible Owner) owns the Business Case. The Project Manager maintains it on a day-to-day basis, but accountability rests with the Executive.

650
MCQeasy

In PRINCE2, which role is accountable for the business justification of a project?

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

The Executive owns the Business Case and is accountable for business justification.

Why this answer

The Executive (Senior Responsible Owner) is accountable for the business justification.

651
MCQmedium

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

A.A Request for Change is always approved; an Off-specification is always rejected
B.A Request for Change proposes a new requirement; an Off-specification identifies a failure to deliver a required product
C.An Off-specification must be escalated to the Project Board; a Request for Change can be handled by the Change Authority
D.They are the same thing with different names
AnswerB

Correct: RFC suggests a change; Off-spec indicates a missing or incorrect product.

Why this answer

A Request for Change is a proposal for a change that is not required to meet the original specification; an Off-specification is something that should be there but is not.

652
MCQmedium

Which type of report is produced by the Project Manager to provide the Project Board with a summary of progress at the end of each stage?

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

The End Stage Report is produced at the end of each management stage.

Why this answer

The End Stage Report is produced at the end of each stage to summarize progress for the Project Board.

653
MCQeasy

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

A.To define the quality criteria for each product
B.To allocate resources to teams
C.To ensure the project is focused on delivering products and understanding what needs to be created
D.To identify the activities and dependencies in the project schedule
AnswerC

Correct. Product-based planning shifts the focus from activities to the products that the project must deliver.

Why this answer

Product-based planning ensures that the project focuses on defining and delivering products rather than activities. It starts with identifying the products needed, then plans the activities required to create them.

654
Multi-Selecthard

Which TWO statements about the Change Authority are true?

Select 2 answers
A.It is defined in the Configuration Management Approach
B.It has the authority to approve changes within a defined limit
C.It can be an individual or a group
D.It is always the Project Manager
E.It is responsible for maintaining the Configuration Item Records
AnswersB, C

This is the definition.

Why this answer

The Change Authority is a role that can approve changes within an agreed delegated authority level. It is set up by the Project Board and can be an individual or group.

655
MCQeasy

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

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

Correct: the Executive owns the Business Case.

Why this answer

The Executive (SRO) has single-point accountability for the Business Case.

656
MCQmedium

What is the purpose of the Quality Register?

A.To record quality review results and quality check progress
B.To record project risks
C.To record issues raised by the team
D.To record lessons learned
AnswerA

Correct. The Quality Register logs quality activities and results.

Why this answer

The Quality Register records all planned quality activities and their results, providing a log of quality checks.

657
Multi-Selectmedium

Which TWO are examples of opportunity responses in PRINCE2?

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

Enhance is an opportunity response.

Why this answer

Opportunity responses include exploit, enhance, share, and reject. Options A and C are correct. Option B is wrong because 'avoid' is a threat response.

Option D is wrong because 'reduce' is a threat response. Option E is wrong because 'transfer' is a threat response.

658
Multi-Selecthard

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

Select 3 answers
A.Providing overall direction and control of the project
B.Approving the Project Plan and any Exception Plans
C.Authorizing deviations from stage tolerances
D.Maintaining the configuration management plan
E.Reviewing the detailed quality of each product
AnswersA, B, C

Key responsibility of the Project Board.

Why this answer

The Project Board provides direction, approves plans, and authorizes deviations. Detailed review of products is not a Board responsibility; that is done by quality review. The configuration management plan is part of the project's management approach and is approved by the Board but not 'maintained' by them.

659
MCQmedium

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

A.A Request for Change is for defects; Off-specification is for enhancements
B.They are the same thing
C.A Request for Change is a type of risk; Off-specification is a type of issue
D.A Request for Change proposes a change to an agreed product; an Off-specification is a product that does not meet its specification
AnswerD

Correct distinction.

Why this answer

A Request for Change proposes a modification to an agreed product; an Off-specification is something that should be provided but is not (or is wrong). Option A reverses them. Option C incorrectly defines both.

Option D is too broad.

660
Multi-Selecthard

Which TWO of the following statements about the Quality Review technique are correct?

Select 2 answers
A.It is used to assess whether a product meets its quality criteria
B.It is only used for products delivered to external customers
C.It is always performed by the Project Assurance role
D.It involves a defined set of roles: Chair, Presenter, and Reviewers
E.It is an audit of the project's quality management system
AnswersA, D

Correct. The Quality Review checks that the product meets its defined quality criteria.

Why this answer

The Quality Review technique is a formal process for reviewing product descriptions and checking quality. It involves a chair, presenter, and reviewers. Options A and D are correct; B is wrong because reviewers are not necessarily from the project team; C is wrong because it is a 'peer review', not an 'audit'; E is wrong because it can be used for any product, not just those for external stakeholders.

661
Multi-Selectmedium

Which TWO of the following are purposes of the Risk Management practice?

Select 2 answers
A.To identify and manage risks proactively
B.To avoid all risks
C.To ensure all risks are transferred to a third party
D.To remove uncertainty from the project
E.To support decision-making by understanding risk exposure
AnswersA, E

This is a key purpose.

Why this answer

The Risk Management practice aims to identify and manage risks proactively. Avoiding all risks is unrealistic; removing uncertainty is not possible.

662
MCQmedium

In PRINCE2, what is the definition of quality?

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

This is the PRINCE2 definition of quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets the user's needs and acceptance criteria.

663
Multi-Selectmedium

Which THREE of the following are purposes of the Plans practice?

Select 3 answers
A.To define the means of delivering the project's products
B.To provide a baseline for control and decision-making
C.To identify and assess risks to the project
D.To justify the investment in the project
E.To communicate how the work will be done and by whom
AnswersA, B, E

Correct. Plans define how to deliver products.

Why this answer

The Plans practice aims to define the means of delivering the project, create a baseline for control, and communicate the work to stakeholders. Options A, B, and E are correct; C is the purpose of the Business Case; D is the purpose of the Risk practice.

664
MCQhard

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

A.An Off-specification is a type of risk, whereas a Request for Change is an issue
B.A Request for Change proposes a change to a baselined product, whereas an Off-specification reports a deviation from a specification
C.A Request for Change can be rejected, whereas an Off-specification must be accepted
D.A Request for Change includes a suggested solution, whereas an Off-specification does not
AnswerB

A Request for Change is for a desired change to an approved baseline; an Off-specification is a failure to meet the agreed specification.

Why this answer

Option D is correct. A Request for Change proposes a modification to something that should be delivered, while an Off-specification identifies that something that should have been delivered is not. Option A is wrong because both can affect baselines.

Option B is wrong because both are types of issue. Option C is wrong because an Off-specification may or may not include suggested corrective action.

665
MCQhard

Which of the following best describes the difference between a risk owner and a risk actionee?

A.There is no difference; they are the same
B.Risk owner manages the risk; risk actionee implements planned responses
C.Risk owner identifies the risk; risk actionee logs it
D.Risk owner is always the Project Manager; risk actionee is a team member
AnswerB

Correct: owner manages, actionee does the work.

Why this answer

The risk owner is responsible for managing the risk; the risk actionee is responsible for carrying out specific actions.

666
MCQhard

Which of the following best describes the purpose of the Highlight Report?

A.It is a report from the Team Manager to the Project Manager on work package progress
B.It is a report from the Project Manager to the Project Board on stage progress
C.It is a report used to escalate tolerance deviations
D.It is a report from the Project Board to stakeholders on overall project status
AnswerB

Correct: the Highlight Report informs the Board.

Why this answer

The Highlight Report is a periodic report from the Project Manager to the Project Board, summarizing progress against the current stage plan.

667
MCQeasy

Which register is used to record all identified risks that may affect the project?

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

The Risk Register records all project risks.

Why this answer

The Risk Register is the PRINCE2 management product used to record and track all identified risks that could affect the project. It captures details such as risk description, probability, impact, proximity, and planned responses, ensuring risks are managed proactively throughout the project lifecycle.

Exam trap

The trap here is confusing the Risk Register with the Issue Register, as both deal with events affecting the project, but risks are future uncertainties while issues are current problems that have already occurred.

How to eliminate wrong answers

Option A is wrong because the Quality Register records quality management activities, such as planned quality checks and their results, not risks. Option B is wrong because the Configuration Item Record tracks the status and version of individual products or components under configuration management, not risks. Option D is wrong because the Issue Register logs issues (unplanned events requiring management action), but risks are potential future events, not current issues.

668
MCQmedium

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

A.To manage product delivery by teams
B.To plan the initiation stage
C.To provide the Project Board with information to decide whether to continue with the project
D.To accept the Work Package from the Project Manager
AnswerC

The process produces an End Stage Report and next Stage Plan for Board decision.

Why this answer

Managing a Stage Boundary enables the Project Board to review progress, approve the next stage plan, and update the Business Case.

669
MCQmedium

In the Organising practice, what is the role of Project Assurance?

A.To provide independent monitoring of all aspects of the project
B.To ensure the project meets the needs of the users
C.To provide administrative support to the Project Manager
D.To approve stage plans and exception plans
AnswerA

Project Assurance is independent of the Project Manager and provides objective oversight.

Why this answer

Project Assurance provides independent oversight to ensure that the project is being managed correctly, separate from management and delivery.

670
MCQhard

Which of the following is a threat response type in PRINCE2?

A.Avoid
B.Reject
C.Mitigate
D.Exploit
AnswerA

Avoid is a PRINCE2 threat response.

Why this answer

PRINCE2 defines specific threat response types: avoid, reduce, fallback, transfer, accept, and share. 'Mitigate' is not a PRINCE2 term; 'reduce' is used instead.

671
MCQhard

A project has identified a risk that a supplier may go bankrupt. The Project Manager decides to purchase insurance against this possibility. Which risk response type has been applied?

A.Transfer
B.Accept
C.Share
D.Reduce
AnswerA

Purchasing insurance transfers the financial risk to the insurer.

Why this answer

Transfer involves shifting the financial impact of a risk to a third party, such as through insurance.

672
MCQmedium

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

A.To plan the next stage and review the Business Case
B.To close the project
C.To initiate the project
D.To control the day-to-day activities of a stage
AnswerA

The process produces a Stage Plan for the next stage and reviews the business case.

Why this answer

The purpose is to provide the Project Board with information to approve the current stage's completion and authorize the next stage.

673
MCQhard

A project's Stage Plan shows the work for the next stage. Which plan details the work for a team to produce one or more products?

A.Stage Plan
B.Exception Plan
C.Project Plan
D.Team Plan
AnswerD

A Team Plan details the work for a team to deliver products assigned in a Work Package.

Why this answer

Option B is correct. A Team Plan is created by the Team Manager to detail the work needed to deliver the products assigned in a Work Package. Stage Plans cover an entire stage; the Project Plan covers the whole project; Exception Plans replace a plan when tolerances are exceeded.

674
MCQmedium

Which of the following is a purpose of the Quality Review technique?

A.To approve the Business Case
B.To assess the product against its quality criteria and identify improvements
C.To allocate work packages to team managers
D.To update the Project Plan
AnswerB

This is the correct purpose.

Why this answer

The Quality Review technique aims to assess whether a product meets its quality criteria and to involve stakeholders. Option C is correct.

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