PRINCE2F Overview of PRINCE2 and Principles Practice Question
You are the project manager for a large-scale IT infrastructure project for a multinational corporation. The project involves deploying new servers across 20 countries, with a budget of $5 million and a timeline of 18 months. The project has been running for 6 months and is currently in its second stage. The project board consists of the executive, senior user, and senior supplier. Recently, the senior user has been raising concerns that the project is not delivering the expected benefits, and the business case may no longer be viable due to changes in market conditions. The senior supplier argues that the project should continue because significant resources have already been invested. The executive is undecided. As the project manager, you need to advise the project board on the best course of action based on PRINCE2 principles. Which of the following should you recommend?
⚠ Common exam trap
It's easy for candidates to confuse the 'manage by stages' principle with delaying decisions, or they incorrectly believe that tailoring can override a fundamental principle like continued business justification.
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
✓
Request the project board to review and update the business case immediately. If it is no longer viable, recommend stopping the project.
B is correct because PRINCE2's continued business justification principle requires that the business case remain viable throughout the project. As project manager, you must escalate to the project board for an immediate review when the senior user raises concerns about benefits and market changes. If the business case is no longer viable, the project should be stopped to avoid further waste of resources, regardless of sunk costs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Postpone the decision until the end of the current stage to conduct a full review.
Why it's wrong here
PRINCE2 requires the business case to be reviewed at each stage boundary and whenever viability is questioned, so deferring to the stage end leaves the project running without confirmed justification. It is tempting because stage boundaries are natural review points, but they are not the only trigger; the board must act once concerns arise.
- ✓
Request the project board to review and update the business case immediately. If it is no longer viable, recommend stopping the project.
Why this is correct
PRINCE2 mandates continued business justification, so the business case must be reassessed whenever viability is questioned. The board owns that decision; stopping is correct if benefits no longer justify the investment, regardless of sunk costs.
- ✗
Tailor the continued business justification principle to allow the project to continue due to its strategic importance.
Why it's wrong here
Tailoring adjusts how principles are applied to a project's context; it cannot override continued business justification, which is mandatory. It is tempting because strategic importance can justify continued investment, but that must be demonstrated through an updated business case, not by relaxing the principle itself. The board should reassess viability.
- ✗
Continue with the project as planned because significant investment has already been made.
Why it's wrong here
Sunk cost is not a valid justification under PRINCE2; continued business justification must rest on forecast benefits, not past expenditure. It is tempting because large investments feel wasteful to abandon, but the principle demands reassessing viability whenever the business case is questioned. The board should review or stop the project instead.
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Same concept, more angles
1 more way 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. A project manager is reviewing the business case for a new software development project. The project is expected to generate significant revenue, but the initial investment is high. According to PRINCE2, which principle is MOST directly being applied when the project manager ensures that the business case remains viable throughout the project?
medium- A.Manage by stages
- B.Learn from experience
- ✓ C.Continued business justification
- D.Tailor to suit the project environment
Why C: The PRINCE2 principle of Continued Business Justification requires that the business case, which documents the project's justification, is reviewed and updated at key decision points (e.g., stage boundaries) to ensure the project remains viable. In this scenario, the project manager is actively verifying that the high initial investment is still justified by the expected revenue, directly applying this principle to avoid proceeding with an unviable project.
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.