Question 61 of 1,731
People: organizations, teams, and leadershipmediumMultiple SelectObjective-mapped

PRINCE2F People: organizations, teams, and leadership Practice Question

This PRINCE2F practice question tests your understanding of people: organizations, teams, and leadership. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

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

Question 1mediummulti select
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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

Authorize expenditure beyond delegated authority

The Project Board is responsible for overall project governance, including authorizing expenditure beyond the delegated authority of the Project Manager. This ensures that financial control remains at the senior management level, preventing unauthorized spending that could jeopardize the project's budget.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Authorize expenditure beyond delegated authority

    Why this is correct

    The Project Board approves exceptions beyond their delegated tolerances.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Approve the Stage Plans

    Why this is correct

    The Project Board approves Stage Plans.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Manage the day-to-day activities of the team

    Why it's wrong here

    The Team Manager does this.

  • Produce the Project Plan

    Why it's wrong here

    The Project Manager produces the Project Plan.

  • Update the Business Case

    Why it's wrong here

    The SRO is accountable but the Project Manager may update it.

Common exam traps

Common exam trap: answer the scenario, not the keyword

PeopleCert often tests the distinction between strategic and operational responsibilities, where candidates mistakenly assign day-to-day management or plan production to the Project Board instead of the Project Manager.

Detailed technical explanation

How to think about this question

In PRINCE2, the Project Board's role is strategic, focusing on key decisions such as stage boundary approvals, exception plan approvals, and project closure. The Project Manager handles operational tasks like plan creation and team management, while the Senior User ensures the Business Case reflects user needs. This separation of duties prevents conflicts of interest and maintains clear accountability.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this PRINCE2F question test?

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

What is the correct answer to this question?

The correct answer is: Authorize expenditure beyond delegated authority — The Project Board is responsible for overall project governance, including authorizing expenditure beyond the delegated authority of the Project Manager. This ensures that financial control remains at the senior management level, preventing unauthorized spending that could jeopardize the project's budget.

What should I do if I get this PRINCE2F question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 30, 2026

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This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.