- A
Inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case.
This follows PRINCE2's principle of continued business justification and manage by stages.
- B
Update the risk register with the resource and budget issues and proceed with the stage as planned.
Why wrong: Updating the risk register is not sufficient; the changes impact the viability of the project.
- C
Proceed with the first delivery stage using the existing approved plans, but closely monitor resource usage.
Why wrong: This ignores the significant changes and could lead to failure.
- D
Adjust the project plan and resource allocations to fit the new budget and proceed without further authorization.
Why wrong: Changes of this magnitude require project board approval.
Quick Answer
The correct answer is to inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case. This is because the PRINCE2 continued business justification principle demands that a project remains viable against its approved business case before moving to the next stage; the 15% budget cut and loss of key resources fundamentally alter the project’s baseline, invalidating the original plan. On the PRINCE2 Foundation exam, this scenario tests your understanding that the business case is a living document—any significant change in resources or costs triggers a formal review, not automatic continuation. A common trap is assuming the board’s directive to proceed overrides the principle, but PRINCE2 requires the project manager to escalate when viability is compromised. Memory tip: think “no plan survives first contact with reality”—always revalidate the business case after major disruptions.
PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
This PRINCE2F practice question tests your understanding of overview of prince2 and the project environment. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. 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.
You are the project manager for a large-scale IT infrastructure project in a multinational corporation. The project has completed its initiation stage and is about to start the first delivery stage. The project board has approved the project plan and the business case. However, during the initiation stage, the team encountered significant issues with resource availability due to a company-wide reorganization. Several key team members have been reassigned to other projects, and the project's budget has been reduced by 15%. The project board has asked you to proceed with the first delivery stage as planned. As a PRINCE2 practitioner, what is the most appropriate course of action?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
Inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case.
A is correct because PRINCE2 requires that the project remains viable against its business case and plans before proceeding to the next stage. The significant resource reassignments and 15% budget reduction fundamentally alter the project's baseline, making the approved project plan and business case invalid. The project manager must escalate this to the project board for a formal review and re-approval, as proceeding without addressing these changes violates the 'continued business justification' principle.
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.
- ✓
Inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case.
Why this is correct
This follows PRINCE2's principle of continued business justification and manage by stages.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Update the risk register with the resource and budget issues and proceed with the stage as planned.
Why it's wrong here
Updating the risk register is not sufficient; the changes impact the viability of the project.
- ✗
Proceed with the first delivery stage using the existing approved plans, but closely monitor resource usage.
Why it's wrong here
This ignores the significant changes and could lead to failure.
- ✗
Adjust the project plan and resource allocations to fit the new budget and proceed without further authorization.
Why it's wrong here
Changes of this magnitude require project board approval.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think updating the risk register (Option B) is sufficient, but PRINCE2 treats actual budget cuts and resource losses as issues that require formal re-planning and re-approval, not just risk mitigation.
Detailed technical explanation
How to think about this question
Under PRINCE2, the project plan and business case are baselined at the end of initiation. A 15% budget reduction and key resource loss constitute a 'request for change' or 'off-specification' that triggers the issue and change control procedure (PRINCE2's change control approach). The project manager must raise an exception report to the project board, who then decides whether to revise the business case, adjust scope, or terminate the project. This aligns with the 'continued business justification' principle, which demands that the project remains viable at all times.
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 small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
Overview of PRINCE2 and the project environment — This question tests Overview of PRINCE2 and the project environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case. — A is correct because PRINCE2 requires that the project remains viable against its business case and plans before proceeding to the next stage. The significant resource reassignments and 15% budget reduction fundamentally alter the project's baseline, making the approved project plan and business case invalid. The project manager must escalate this to the project board for a formal review and re-approval, as proceeding without addressing these changes violates the 'continued business justification' principle.
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.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 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 PRINCE2 principle requires that a project continues to be desirable, viable, and achievable?
easy- A.Manage by stages
- B.Tailor to suit the project environment
- ✓ C.Continued business justification
- D.Learn from experience
Why C: The continued business justification principle ensures that the project remains justified throughout its life. The Business Case is the key document that captures this justification.
Last reviewed: Jun 11, 2026
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.
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