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PRINCE2F Business Case and Organizing Practice Question

You are the project manager for a PRINCE2 project to implement a new payroll system. The project board has requested that you ensure the project organization is properly defined. Which TWO of the following are responsibilities of the project board? (Choose two.)

⚠ Common exam trap

Watch out — candidates often confuse the project board's strategic responsibilities with the project manager's operational tasks, such as managing the team or creating stage plans.

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

✓

Authorizing the closure of the project

In PRINCE2, the project board is accountable for the overall success of the project. Its responsibilities include approving the project initiation documentation, which authorizes the project to proceed, and authorizing the closure of the project after verifying that objectives have been met. The board does not manage day-to-day activities, create detailed plans, or directly ensure benefits delivery; those are delegated to the project manager and other roles.

Answer analysis

Option-by-option breakdown

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

✓
Authorizing the closure of the project
Why this is correct
The project board has the authority to authorize project closure. This occurs after the project manager has prepared the end project report and confirmed that all products have been delivered and accepted. The board reviews the report and decides whether to close the project, ensuring that all objectives have been met and that any outstanding issues are addressed. This is a critical governance decision.
✗
Managing the day-to-day activities of the project team
Why it's wrong here
Managing day-to-day activities is the responsibility of the project manager, not the project board. The board provides direction and makes key decisions, but delegates the daily management of the project to the project manager. The board focuses on strategic oversight, such as approving plans and tolerances, rather than operational tasks like assigning work to team members or monitoring progress in detail.
✗
Ensuring that the project delivers the expected benefits
Why it's wrong here
While the project board is accountable for the business case and benefits realization, the day-to-day responsibility for ensuring benefits are delivered often lies with the senior user and the project manager. The board monitors benefits and makes decisions based on the business case, but they do not directly ensure delivery. This is a shared responsibility, but the board's role is oversight, not execution.
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Creating the detailed stage plan for each stage
Why it's wrong here
Creating detailed stage plans is typically the responsibility of the project manager, not the project board. The board approves the stage plan, but the project manager develops it. The board may provide input and set tolerances, but the hands-on planning work is delegated. This separation ensures the board remains focused on strategic oversight rather than operational planning.
✓
Approving the project initiation documentation
Why this is correct
The project board is accountable for the project's success and has the authority to approve the project initiation documentation (PID). This includes the business case, plans, and organization structure. By approving the PID, the board authorizes the project to proceed, ensuring that the project remains aligned with business objectives and that resources are committed appropriately. This is a key governance responsibility of the board.

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PRINCE2F Business Case and Organizing Practice Question

Why each option matters

Option-by-option breakdown

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