PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
Which of the following statements best describes the PRINCE2 principle 'Manage by stages'?
⚠ Common exam trap
PeopleCert often tests the misconception that stages are defined by the Project Manager for team management, but in PRINCE2, stages are management control points set by the Project Board, and their purpose is to enable go/no-go decisions, not to facilitate team organization.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The project is divided into a number of phases, each with its own plan and tolerances
The PRINCE2 principle 'Manage by stages' requires that the project be divided into management stages, each with its own plan and tolerances. This allows the Project Board to review progress and viability at key decision points before committing further resources, ensuring ongoing business justification and control.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The project plan is updated at the end of each stage to reflect actual progress
Why it's wrong here
The project plan may be updated, but the principle is about stage-based management.
- ✓
The project is divided into a number of phases, each with its own plan and tolerances
Why this is correct
Correct. Stages are sequential, each with a plan and tolerances.
- ✗
Stages are defined by the Project Manager to facilitate team management
Why it's wrong here
Stages are defined at the project level, not by the PM alone.
- ✗
Each stage must have a fixed duration and budget
Why it's wrong here
Stages have tolerances but are not fixed.
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This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.