PRINCE2F Project Initiation and Stages Practice Question
Which TWO statements about the Initiating a Project process are correct?
⚠ Common exam trap
PeopleCert often tests the distinction between what happens during Initiating a Project versus Starting Up a Project, specifically that the project plan is created during initiation (not after) and that the Project Board, not the project manager, authorizes the project to proceed.
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 business case is refined and approved by the project board
Option D is correct because Initiating a Project refines the outline Business Case into a full Business Case and submits it to the Project Board for approval as part of the PID. Option E is correct because the PID is assembled from the various baseline products (Business Case, Project Plan, benefits, risk, quality, change, communication approaches) and reviewed by the Project Board before authorizing the project. Option A is wrong because the Project Plan is created during Initiating a Project, not after it. Option B is wrong because the Project Board, not the Project Manager, authorizes the project to proceed. Option C is wrong because tailoring decisions are made during Initiating a Project (and captured in the PID), not after initiation.
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 created after the Initiating a Project process
Why it's wrong here
The project plan is produced during Initiating a Project, not afterwards, so this reverses the process sequence. It tempts candidates because the plan is indeed a major output of initiation, but the stem asks about statements that are correct, and this ordering contradicts the process model.
- ✗
The project manager authorizes the project to proceed
Why it's wrong here
The project board, not the project manager, authorises the project to proceed after reviewing the project initiation documentation. This is tempting because project managers authorise work packages and stage boundaries, but the decision to start the project itself sits with the board, making this correct only for stage-level authorisation.
- ✗
The approach to tailoring PRINCE2 is decided after the project is initiated
Why it's wrong here
Tailoring approach is decided during Initiating a Project, within the project initiation documentation, not afterwards. Deferring it is tempting because tailoring feels like a delivery-time concern, yet PRINCE2 requires the approach to be agreed before the project board authorises the project, so it would be correct only for later-stage refinement.
- ✓
The business case is refined and approved by the project board
Why this is correct
Initiating a Project requires the project board to review and approve the refined business case, confirming continued viability before the project proceeds. This satisfies the process's governance constraint that investment decisions rest with the board, not the project manager.
- ✓
The project initiation documentation (PID) is assembled and reviewed
Why this is correct
Assembling and reviewing the project initiation documentation consolidates the baselines and plans into a single approved reference. This satisfies the process's purpose of establishing a documented baseline before the project board authorises the project to move into delivery.
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Same concept, more angles
3 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which role is responsible for approving the Project Initiation Documentation?
easy- ✓ A.Project Board
- B.Senior User
- C.Project Manager
- D.Senior Supplier
Why A: The Project Board is responsible for approving the Project Initiation Documentation (PID) because it represents the collective authority of the business, user, and supplier interests. The PID formally authorizes the initiation of the project and commits resources, so only the Project Board has the necessary authority to approve it.
Variation 2. A project manager is creating the Project Initiation Documentation. Which document must be produced before the Initiation Stage can be considered complete?
easy- A.Business Case
- ✓ B.Project Initiation Documentation
- C.Project Plan
- D.Risk Register
Why B: In PRINCE2, the Project Initiation Documentation (PID) is the key deliverable of the Initiation Stage. The stage is not considered complete until the PID has been created and approved, as it provides the foundation for project governance and decision-making. The Business Case, Project Plan, and Risk Register are all components that are assembled into the PID, but the PID itself is the definitive document that marks stage completion.
Variation 3. Who is responsible for creating the Project Initiation Documentation?
easy- A.Project Board
- B.Senior Supplier
- ✓ C.Project Manager
- D.Senior User
Why C: The Project Manager is responsible for creating the Project Initiation Documentation (PID) because PRINCE2 assigns the Project Manager the role of assembling and producing the PID, which consolidates key planning documents like the Business Case, Project Plan, and Risk Register. The Project Board approves the PID, but does not create it, as the Project Manager acts as the single point of accountability for its preparation and quality.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.