Prince2 Foundation Exam Answers

What is NOT an objective of the Directing a Project process?

Options are :

  • Ensure that corporate or program management has an interface to the project
  • Management direction and control are provided throughout the project’s life
  • Provide sufficient information to enable the continuing viability of the project to be assessed (Correct)
  • Ensure there is authority to deliver the project’s products

Answer : Provide sufficient information to enable the continuing viability of the project to be assessed

Explanation The objectives of the Directing a Project process include ensuring that there is authority to deliver the project’s products, ensuring that corporate or program management has an interface to the project, and providing management direction and control throughout the project’s life.

What would be used to pay for a Request for Change that requires a small analysis cost?

Options are :

  • Risk budget
  • Change budget (Correct)
  • Contingency
  • Tolerance

Answer : Change budget

Explanation The Change Authority will have a change budget, which is a sum of money that the customer and supplier agree to use to fund the cost of Requests for Change. It is advisable to have a change budget for each project.

What type of control is a report that is sent from the Team Manager to the Project Manager at the intervals agreed upon in the Work Package?

Options are :

  • Exception based
  • Event-driven
  • Time-driven (Correct)
  • Ad-hoc

Answer : Time-driven

Explanation This is an example of a time-driven control. This is a management control that is periodic in nature and enables the next higher authority to monitor progress. For example, a report that is sent every friday.

What is an objective of the Directing a Project process?

Options are :

  • Enable the Project Board to be accountable for the project’s success
  • Ensure there’s a common understanding of how project progress will be monitored and controlled
  • Ensure that corporate or program management has an interface to the project (Correct)
  • Enable the Project Manager to be accountable for the project’s success

Answer : Ensure that corporate or program management has an interface to the project

Explanation The objectives of the Directing a Project process are to provide authority (to make a decision), to initiate the project (allow the Initiation Stage to start), to deliver the project’s products (start the delivery stages), and to close the project. The Directing a Project process gives the corporate or program management an interface to the project through direction of the project board.

Which process is triggered by the request to initiate a project?

Options are :

  • Controlling a Stage
  • Directing a Project (Correct)
  • Starting Up a Project
  • Initiating a Project

Answer : Directing a Project

Explanation Directing a Project process begins after the Request to Initiate a Project is done by the Project Manager at the end of the Starting Up a Project process.

What does the quality review technique complement the use of?

Options are :

  • The customer’s quality expectations
  • Quality Assurance
  • Issue and change control procedure
  • Product Descriptions (Correct)

Answer : Product Descriptions

Explanation The quality review technique complements the use of the product descriptions. Because PRINCE2 is ultimately product-driven, this type of description defines what the project must deliver to gain acceptance.

What are three primary stakeholder categories defined by PRINCE2?

Options are :

  • Project, Program, and Corporate
  • Business, Customer, and Specialists
  • User, Supplier, and Business (Correct)
  • Customer, Business, and Users

Answer : User, Supplier, and Business

Explanation A PRINCE2 project should always have three primary categories of stakeholders (three primary stakeholders), and these also have to be represented in the Project Board. These are Business, User and Supplier.

What is the first thing that should happen when it is forecasted that one or more tolerances are going to be exceeded?

Options are :

  • Next higher level of management will begin to execute management by exception
  • Appropriate level of management will automatically produce and execute an Exception Plan to recover from the deviation without referral
  • Appropriate level of management must refer the matter to the next higher level (Correct)
  • Project Plan will be replaced by a fallback plan

Answer : Appropriate level of management must refer the matter to the next higher level

Explanation As long as the project or stage remains within tolerance and no action or decision has to be made. If the project manager forecasts that tolerance is to be exceeded, then this triggers the raising of an exception report. The project manager uses the process to escalate issues and risks to create the exception report and bring it before the Project Board.

What purpose does the Benefits Review Plan NOT fulfill after a project has been closed?

Options are :

  • It defines how a measurement of the achievement of the project’s benefits can be made
  • It records the results of all benefit measurements (Correct)
  • It defines what benefits assessments need to be undertaken
  • It identifies the activities required to measure the expected project’s benefits

Answer : It records the results of all benefit measurements

Explanation The purpose of the Benefits Review Plan is to identify the benefits and most importantly, to select how the benefits can be measured so that it is possible to show that they have been reached. This creates the baseline measurements to use in a later comparison to determine if the current situation is better than before the project was undertaken. The Benefits Review Plan must include information on the expected timeline for these benefits, when the benefits can be expected and measured, and who will gather the required information. The Benefits Review Plan is updated at the end of each stage and the update includes details of benefits that have already been achieved. When the project is completed, the Benefits Review Plan is maintained and executed by the corporate or program management office.

What activity would the Project Board members NOT be involved in?

Options are :

  • Confirming project tolerances with corporate or program management
  • Communications between the project management team and stakeholders external to that team
  • Authorizing the start of the project
  • Running of the project on a day-to-day basis (Correct)

Answer : Running of the project on a day-to-day basis

Explanation It is the responsibility of the Project Manager to run the project on a day to day basis, not the Project Board.

What documents the acceptance criteria?

Options are :

  • Project Product Description (Correct)
  • Quality Management Strategy
  • Quality Register
  • Product Description

Answer : Project Product Description

Explanation Project Product Description is a special type of Product Description used to gain agreement from the user on the project’s scope and requirements. This also defines the customer’s quality expectations and the acceptance criteria for the project.

What process is responsible for checking and accepting Work Packages?

Options are :

  • Managing Product Delivery (Correct)
  • Directing a project
  • Managing a Stage Boundary
  • Controlling a Stage

Answer : Managing Product Delivery

Explanation The Managing Product Delivery process is responsible for checking and accepting Work Packages. The Team Manager accepts the Work Package from the Project Manager and creates the Team Plan to manage the development of the products. Additionally, the Work Package is used to deliver proof that the products are complete.

What BEST represents the threshold levels of risk exposure that, when exceeded, will trigger an Exception Report?

Options are :

  • Risk proximity
  • Risk tolerance (Correct)
  • Risk profile
  • Risk allowance

Answer : Risk tolerance

Explanation A project that has a high-risk tolerance is said to have a large risk appetite as it can take on lots of risk. Risk tolerance looks at acceptable/unacceptable deviations from the acceptable and expected threshold. An Exception Report is produced when a Stage Plan or Project Plan is forecast to exceed tolerance levels set.

During the Controlling a Stage process of PRINCE2, what is the Risk Register NOT used for?

Options are :

  • To obtain details of risks that may affect the Stage Plan for the next stage (Correct)
  • To capture uncertainties identified when authorizing a Work Package
  • To obtain details on risks to include in a Highlight Report
  • To obtain details of any potential impacts that may affect the Business Case while reviewing the stage status

Answer : To obtain details of risks that may affect the Stage Plan for the next stage

Explanation The purpose of the Controlling a Stage process (CS) is for the Project Manager to assign the work to be done, monitor this work, deal with issues, report progress to the Project Board and take corrective action to ensure that the stage remains within tolerance. The Risk Register is one of the outputs of the Controlling a Stage process. This includes the Highlight Reports, a Work Package, and a listing of any potential impacts that could impact the Business Case.

Fill in the blank: PRINCE2 uses the __________ to define how issues will be handled.

Options are :

  • Tolerances
  • Configuration Item Record
  • Risk Management Strategy
  • Configuration Management Strategy (Correct)

Answer : Configuration Management Strategy

Explanation The configuration management strategy describes how issues are handled. During the initiation stage, the project manager and project board need to agree on how issues shall be handled.

What type of plan is approved by the Project Manager?

Options are :

  • Exception Plan
  • Team Plan (Correct)
  • Stage Plan
  • Project Plan

Answer : Team Plan

Explanation Depending on the size and individual characteristics of a project, Team Managers may be employed. In this case, the Stage Plan can be segmented into Team Plans, which the Team Managers then use in order to allocate tasks to team members, monitor their progress, and keep an eye on team-level constraints. If the tolerances, which are set by the Project Manager, are forecast to be exceeded, then the Team Manager refers the situation as a project issue to the Project Manager. Since the Project Manager oversees the Team Managers, the Project Manager is authorized to approve the Team Plan.

What characteristic relates to a project having a defined start and a defined end?

Options are :

  • Temporary in nature (Correct)
  • Uniqueness
  • Introduces change
  • Uncertainty

Answer : Temporary in nature

Explanation A project is defined as a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case. Organizations set up and invest in projects in order to introduce change into their day-to-day “business as usual? activities. By having a defined start and end to a project, it ensures it is temporary in nature.

What BEST describes the characteristic found in a project that involves a team of people working together to introduce a change that will impact others outside the team and sometimes other organizations?

Options are :

  • Cross-functional (Correct)
  • Introduces business change
  • Temporary
  • Uniqueness

Answer : Cross-functional

Explanation Projects have a number of characteristics; which is how projects differ from business as usual or a repeating process. A project involves people from different business departments and seniority that work together for the duration of the project, and this characteristic is referred to as cross-functional.

What is a benefit of using PRINCE2?

Options are :

  • All problems are escalated to all stakeholders
  • Stakeholders are kept out of planning and decision making
  • Stakeholders are not involved in assuring the project work
  • Participants understand each other’s roles and needs (Correct)

Answer : Participants understand each other’s roles and needs

Explanation PRINCE2 is widely recognized and understood, therefore it provides a common vocabulary for all those involved in a project and helps effective communication. PRINCE2 also provides for the explicit recognition of project responsibilities, so that participants understand each other’s roles and needs because there is a defined structure for accountability, delegation, authority, and communication.

A Benefits Review Plan is used to show how and when a measurement of the achievement of the _____ can be made. What words BEST fill in the blank in this statement?

Options are :

  • Project’s outputs and outcomes
  • Project’s benefits (Correct)
  • Project’s objectives
  • Project’s costs, benefits and risks

Answer : Project’s benefits

Explanation The Benefits Review Plan is used to define how and when a measurement of the achievement of the project’s benefits can be made. The purpose of the Benefits Review Plan is to identify the benefits and most importantly, to show how the benefits can be measured so that it is possible to show that they have been reached. This creates the baseline measurements to use in a later comparison to determine if the current situation is better than before the project was undertaken. The Benefits Review Plan must include information on the expected timeline for these benefits, when the benefits can be expected and measured, and who will gather the required information. The Benefits Review Plan is updated at the end of each stage and the update includes details of benefits that have already been achieved. When the project is completed, the Benefits Review Plan is maintained and executed by the corporate or program management office.

What is a specific objective of the Controlling a Stage process?

Options are :

  • The various ways the project can be delivered are evaluated and a project approach selected
  • Assure the Project Board that all products in the Stage Plan for the current stage have been completed and approved
  • Work on products allocated to the team is authorized and agreed
  • Attention is focused on delivery of the stage’s products (Correct)

Answer : Attention is focused on delivery of the stage’s products

Explanation The objective of the Controlling a Stage process is to ensure that risks and issues are kept under control, the the Business Case is kept under review, and the products are delivered for the stage to the agreed quality within agreed cost and time and achieve the defined benefits.

What is NOT established during the Starting Up a Project process?

Options are :

  • A Plan for the work of initiation
  • Information on the various ways the project can be delivered
  • A plan for how and when a measurement of the achievement of the project’s benefits can be made (Correct)
  • A description of what the project is to deliver

Answer : A plan for how and when a measurement of the achievement of the project’s benefits can be made

Explanation A plan for how and when a measurement of the achievement of the project’s benefits can be made is part of the Benefits Review Plan, not the Starting Up a Project process.

What occurs during the Managing a Stage Boundary process?

Options are :

  • Obtain approvals for all completed products
  • Escalation of Issue Reports created during the current stage
  • Periodic review of progress against the Stage Plan
  • Review of the business justification for the project (Correct)

Answer : Review of the business justification for the project

Explanation During the Managing a Stage Boundary process, the Project Manager has to provide the Project Board with an overview of the performance of the current stage, update the Project Plan and Business Case, and create a Stage Plan for the next stage. This allows a review of the business justification for the project to occur.

What product acts as a trigger for the Starting Up a Project process?

Options are :

  • Project Initiation Documentation
  • Outline Business Case
  • Project mandate (Correct)
  • Project Brief

Answer : Project mandate

Explanation The project mandate is the enabler for the starting up a project process, which occurs before the formal project start. This allows the project idea to be examined and sufficient information is gathered for the project board to be able to make the decision of whether to start the project (and initiate the required planning) or to decide not to proceed any further. The mandate is the authority to carry out the Starting Up a Project Process. In its simplest form, the mandate may simply state that work should start and as a minimum should include the subject matter of the project and the name of the project board executive.

Fill in the blank: A purpose of the Quality theme is to __________.

Options are :

  • Ensure the project’s products meet business expectations (Correct)
  • Ensure any threats to the quality targets are identified, assessed and controlled
  • Provide all personnel involved in the project with information regarding whether the targets of time, cost and quality are achievable
  • Provide a systematic approach which ensures that issues possibly affecting the project’s quality performance target are managed appropriately

Answer : Ensure the project’s products meet business expectations

Explanation The Quality Theme provides a method to help specify the Quality, to carry out Quality control, to explain how to get approved, and to facilitate the management of Quality during the project. The purpose of the Quality theme is to define and implement a system that will create and verify that products are fit for use and meet requirements that the business expects.

What is produced by the Project Manager that would contain information on ’products completed in the period’?

Options are :

  • Exception Report
  • Highlight Report (Correct)
  • Product Status Account
  • Checkpoint Report

Answer : Highlight Report

Explanation A Highlight Report is used to provide the Project Board (and possibly other stakeholders) with a summary of the stage status at intervals defined by them. The Project Board uses the report to monitor stage and project progress. The Project Manager also uses it to advise the Project Board of any potential problems or areas where the Project Board could help.

What is NOT a PRINCE2 Principle?

Options are :

  • Tailor to suit the project environment
  • Continued business justification
  • Project manage by process (Correct)
  • Manage by stages

Answer : Project manage by process

Explanation There are seven principles in PRINCE2: Continued Business Justification, Learn From Experience, Defined Roles And Responsibilities, Manage By Stages, Manage By Exception, Focus On Products, and Tailor To Suit The Project Environment.

What management level sits outside of the project management team?

Options are :

  • Corporate or program management (Correct)
  • Directing
  • Delivering
  • Managing

Answer : Corporate or program management

Explanation The Corporate or program management is the level of management that exists outside of the project, either at organizational or program level. Ultimate responsibility for commissioning and setting project-level tolerances rests with this management level.

When is the Managing a Stage Boundary process undertaken?

Options are :

  • At the end of the final stage
  • Close to the end of a management stage (Correct)
  • At the end of project start-up
  • After the completion of each management stage

Answer : Close to the end of a management stage

Explanation The Managing a Stage Boundary begins near the end of the current stage and before the next stage. If the current stage is forecast to go out of tolerance, then the Project Manager will create an Exception Plan instead of a next Stage Plan, and the Project Manager will request to complete the current stage instead of asking to continue with the next stage.

What product documents any project outcomes that are perceived as negative by a stakeholder?

Options are :

  • Issue Register
  • Project Product Description
  • Risk Management Strategy
  • Business Case (Correct)

Answer : Business Case

Explanation The Business Case gathers the information to allow the management to judge if a project is desirable, viable, and achievable. The Business Case is used to document any project outcomes that are viewed as negative by a stakeholder (therefore, the project may be undesirable). It documents the justification for undertaking the project based on estimated costs and the benefits to be gained and offset by any associated risks. This allows decision makers to determine if a project is worthwhile to invest in. The Business Case is normally developed at the start of the project unless it has already been provided by an executive or the Program Management office. Once created, the Business Case is maintained throughout the life of the project.

What BEST defines the mechanism for the control of and access to a risk budget?

Options are :

  • Risk Register
  • Risk Management Strategy (Correct)
  • Risk profile
  • Risk management procedure

Answer : Risk Management Strategy

Explanation PRINCE2 recommends that each project has its own Risk Management Strategy document. This document defines the project procedures for Risk Management in terms of how Risk will be identified, assessed, controlled and communicated in the project. The Risk Management Strategy describes the specific risk management techniques and standards to be applied during the project, and the responsibilities to provide a good and consistent risk management procedure.

What is NOT identified when creating a product breakdown structure?

Options are :

  • Products to be created by an external third party
  • Products to be modified
  • Products to be created by internal resources
  • Resources required to produce the products (Correct)

Answer : Resources required to produce the products

Explanation A Product Breakdown Structure breaks down a Project Product into the major products which in turn are broken down into further products to give a hierarchical overview. It is focused on products, not resources required to produce those products.

Fill in the blank: A Benefits Review Plan is used to show the __________.

Options are :

  • Opportunities which, if occurred, would have a favourable impact on the projects costs and benefits
  • Investment appraisal for the project
  • Resources required to measure the expected benefits (Correct)
  • Project’s outputs and outcomes

Answer : Resources required to measure the expected benefits

Explanation The purpose of the Benefits Review Plan is to identify the benefits and most importantly, to select how the benefits can be measured so that it is possible to show that they have been reached. This also includes identifying the resources required to measure the expected benefits.

What plan is mandatory?

Options are :

  • Team Plan
  • Program Plan
  • Exception Plan
  • Project Plan (Correct)

Answer : Project Plan

Explanation The Project Plan and Stage Plans are mandatory. There are three possible levels of plans within PRINCE2, the Project Plan, Stage Plans, and optional Team Plans. All of them use the product based planning technique to create the plan documentation. However, this will only identify the products required, a plan also needs the activities to be identified, the resources needed to carry out the activities, and control points along with the narrative that make up the complete plan document.

What is a request for change?

Options are :

  • The Project Manager has been advised that a team member has been taken ill and so the end date of the work will now be delayed by 5 days
  • The supplier needs to amend a product because it does not conform to its quality criteria
  • Although it has passed quality control, a user would like to suggest an increase in the durability of a product (Correct)
  • The Executive feels that the project product may not be of sufficient quality in order to achieve the expected benefits

Answer : Although it has passed quality control, a user would like to suggest an increase in the durability of a product

Explanation Request for Change is a proposal for a change to a baselined product (such as a product that has already been approved). This could be a Product Description document for one of the specialist’s products being created by the project. In the example given in this question, the user wants to increase a baseline standard, therefore a REquest for Change is necessary.

What is a characteristic of a PRINCE2 project?

Options are :

  • Projects are the means by which we introduce business change; No project is unique; and Projects often cross the normal functional divisions within an organization
  • Projects are the means by which we introduce business change; Projects have a defined start and end; and No project is unique
  • Projects are the means by which we introduce business change; Projects have a defined start and end; and Projects often cross the normal functional divisions within an organization (Correct)
  • Projects have a defined start and end; No project is unique; and Projects often cross the normal functional divisions within an organization

Answer : Projects are the means by which we introduce business change; Projects have a defined start and end; and Projects often cross the normal functional divisions within an organization

Explanation Projects have a number of characteristics; which is how projects differ from business as usual or a repeating process. Projects are a way to introduce change (for example, new sales website will change how clients will purchase items). There should always be a definite start and end to a project, and it should stop once the required products are created. Ongoing maintenance of a product occurs after the project and is not considered part of the project. Projects are also cross-functional where people from different business departments and seniority that work together for the duration of the project. Every project is also unique, as there is always something different in each project. For example, even if you are building a second identical house, it may be different (the location, slight difference in design, different owner, etc). As parts of the project are unique, this brings uncertainty as you are not 100% sure how this is going to work out.

What BEST explores the aggregated net effect of all risks within the project?

Options are :

  • Assess (Correct)
  • Plan
  • Communicate
  • Implement

Answer : Assess

Explanation Assessing the risk covers two actions: Estimating and Evaluating Risk. Estimating is about assessing the probability, the impact, and the proximity for each threat or opportunity. The risk evaluation is used to describe the net effect of all project risks and to reveal the overall risk severity of the project. These are three of the columns in the Risk Register.

What role agrees on the techniques, products, and constraints for a Work Package with the Project Manager?

Options are :

  • Team Manager (Correct)
  • Senior Supplier
  • Executive
  • Project Assurance

Answer : Team Manager

Explanation Team Manager is the person responsible for the production of those products allocated by the Project Manager to an appropriate quality, timescale, and at a cost acceptable to the Project Board. This role reports to, and takes direction from, the Project Manager. If a Team Manager is not assigned, then the Project Manager undertakes the responsibilities of the Team Manager role. The Team Manager and Project Manager must agree on the techniques, products, and constraints for a Work Package.

As well as holding informal problems/concerns, what product can also be used to record required actions or record significant events not caught elsewhere?

Options are :

  • Risk Register
  • Issue Register
  • Project notebook
  • Daily Log (Correct)

Answer : Daily Log

Explanation A Daily Log is used to record informal issues, required actions or significant events not caught by other PRINCE2 registers or logs. It acts as the project diary for the Project Manager.

What is recommended to be a response type in response to either a threat and an opportunity?

Options are :

  • Reject
  • Fallback
  • Reduce
  • Share (Correct)

Answer : Share

Explanation Share is both a response for threats and opportunities. Share is very common in customer/supplier projects where both parties share the gain if the costs are less than the planned costs, and share the loss if the costs are exceeded. PRINCE2 defines 6 responses to threats: avoid, reduce, accept, transfer, share, and prepare. PRINCE2 defines 6 responses to opportunities: exploit, enhance, reject, transfer, share, and prepare contingency plans. Only Share and Transfer are valid responses to both a threat and an opportunity.

In which document would you be able to locate the scope of a given plan?

Options are :

  • The related product breakdown structure (Correct)
  • The full content of a product checklist
  • All of the project’s Configuration Item Records
  • The composition of a Project Product Description

Answer : The related product breakdown structure

Explanation One of the first things in planning is to try and get an idea of scope. It is very easy for a project to start off as a simple project, but when you start to draw out the requirements in a Product Breakdown Structure, it shows exactly what this so-called simple project involves. The Product Breakdown Structure makes it easy to discuss the scope and requirements with the Senior User.

What is NOT an objective of the Managing Product Delivery process?

Options are :

  • Ensures attention is focused on the delivery of a stage’s products (Correct)
  • Ensures products are delivered to expectations and within tolerance
  • Ensures work on products allocated to the team is authorized and agreed
  • To send accurate progress information to the Project Manager

Answer : Ensures attention is focused on the delivery of a stage’s products

Explanation The objective of the Managing Product Delivery process is to ensure that (1) products assigned to the team are authorized and agreed upon, (2) the team is clear about what has to be produced and understands the effort, time and cost, (3) the planned products are delivered to the expectations and within tolerance, and (4) accurate progress information is provided to the Project Manager by the Team Manager.

What process can trigger the premature close of the project?

Options are :

  • Managing a Stage Boundary
  • Closing a Project
  • Directing a Project (Correct)
  • Controlling a Stage

Answer : Directing a Project

Explanation There are five activities within the Directing a Project process. If the project cannot be put back on track, the fifth activity is to authorizing project closure (shutting down the project prematurely).

What is a characteristic of a project?

Options are :

  • Business as usual
  • Cross-functional (Correct)
  • Avoids stresses and strains between organizations
  • Low risk

Answer : Cross-functional

Explanation Projects have a number of characteristics. Projects differ from business as usual or a repeating process because they are temporary and can be risky in nature. Projects are cross-functional activities.

What would be created if a product’s weight was specified to be 3 pounds but could only be built to a minimum weight of 5 pounds?

Options are :

  • A Request for change
  • An Exception Report
  • An Off-specification (Correct)
  • An Exception Plan

Answer : An Off-specification

Explanation An off-specification identifies a current requirement that the project either does not fulfil, or is forecasted not to fulfill.

What is an objective of the Closing a Project process?

Options are :

  • Ensure that the planned products are delivered to expectations and within tolerance
  • Prepare an Exception Plan as directed by the Project Board
  • Request authorization to start the next stage
  • Provision has been made to address any open issues or risks with follow-on action recommendations (Correct)

Answer : Provision has been made to address any open issues or risks with follow-on action recommendations

Explanation One of the objectives of the CLosing a Project process is that a provision has been made to address any open issues or risks with follow-on action recommendations.

What is one of the six aspects of project performance that needs to be managed?

Options are :

  • Tolerance
  • Issues
  • People
  • Benefit (Correct)

Answer : Benefit

Explanation PRINCE2 offers you a choice of six aspects (called tolerances) in measuring project performance: time, cost, scope, risk, quality and benefits.

What role has the responsibility of designing and appointing the project management team?

Options are :

  • Project Assurance
  • Senior User
  • Project Manager
  • Executive (Correct)

Answer : Executive

Explanation The Executive is the key decision-maker on the project management team. It is their responsibility associated to make sure that the project remains focused toward its objectives and that it ultimately delivers the outputs necessary for generating the outcomes that will enable the expected benefits to be realized.

What is a project according to PRINCE2?

Options are :

  • A permanent team that is created to deliver a series of business change initiatives
  • A permanent organization that is created for the purpose of realizing one or more business benefits
  • A temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case (Correct)
  • A temporary team that is created to direct and oversee a collection of related projects in order to deliver outcomes and benefits related to the organization’s strategic objectives

Answer : A temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case

Explanation According to PRINCE2, a Project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.

In PRINCE2, a project is _______, _______, and controlled on a stage-by-stage basis. What words best fill in the blanks?

Options are :

  • Planned, monitored (Correct)
  • Designed, assigned
  • Developed, reported
  • Planned, produced

Answer : Planned, monitored

Explanation In PRINCE2, a project is planned, monitored and controlled on a stage-by-stage basis. These Management Stages are separated by Decision Points (also known as “Control Points?) by the Project Board.

What is given as a reason for why it is seldom desirable or possible to plan an entire project in detail at the start?

Options are :

  • Sufficient detail is only known once the relevant stage has begun
  • It can be difficult to predict the actual performance of resources
  • All aspects of planning become more difficult the further into the future they extend (Correct)
  • The supplier is unlikely to comprehend the detailed schedule

Answer : All aspects of planning become more difficult the further into the future they extend

Explanation All aspects of planning become more difficult the further into the future they extend. The planning horizon is the period of time for which it is possible to accurately plan.

What role’s perspective is used to view the project during the Managing Product Delivery process?

Options are :

  • Senior Supplier
  • Project Support
  • Team Manager (Correct)
  • Project Manager

Answer : Team Manager

Explanation The Managing Product Delivery process ensures that the products assigned to the team are authorized and agreed upon. It also ensures that the team is clear about what has to be produced and understands the effort, time, and cost needed to achieve the desired result. Finally, it ensures that the planned products are delivered to the expectations and within tolerance. The Team Manager’s perspective should be considered during the Managing Product Delivery process.

What process is responsible for dividing a project into management stages?

Options are :

  • Closing a Project
  • Initiating a Project
  • Starting Up a Project
  • Managing a Stage Boundary (Correct)

Answer : Managing a Stage Boundary

Explanation The Managing a Stage Boundary process provides the information for the Project Board to evaluate the project at strategic points so they can decide to stop or to continue to the next stage, and check how the project is going according to the original plan.

What is considered a principle of PRINCE2?

Options are :

  • The supplier will supply the resources to deliver the required result
  • The customer will specify the desired result
  • Every project will need a different project management approach
  • A project has defined and agreed roles and responsibilities (Correct)

Answer : A project has defined and agreed roles and responsibilities

Explanation PRINCE2 is based on a customer/supplier environment, and the organization Theme defines and establishes the project’s structure of roles and responsibilities. PRINCE2 does not define jobs allocated to people. Instead, it defines roles each with a set of responsibilities. Each role may have one person or several people filling it. Also, an individual may fulfill more than one role.

What BEST describes the main purpose of a Daily Log?

Options are :

  • Record and track the status of all products produced during a stage
  • Record informal issues (Correct)
  • Update the Project Board on the progress of a stage
  • Record the products and activities planned for the stage

Answer : Record informal issues

Explanation A Daily Log is used to record informal issues, required actions, or significant events not caught by other PRINCE2 registers or logs. It acts as the project diary for the Project Manager. It can also be used as a repository for issues and risks during the Starting up a Project process if the other registers have not been set up.

Why is the ’identify context’ step important as part of the risk management procedure?

Options are :

  • It gathers information about the project environment and objectives (Correct)
  • It identifies the responses to risks identified in the Business Case
  • It identifies the threats and opportunities that may affect the project’s objectives
  • It gathers information about risks for inclusion in Highlight Reports to the Project Board

Answer : It gathers information about the project environment and objectives

Explanation The primary goal of the identify context step is to obtain information about the project in order to understand the specific objectives that are at risk and to formulate the risk management strategy for the project. The identify context step is used to gather information about the project environment and objectives.

Where would a Team Manager find information regarding the specific quality required for a product?

Options are :

  • Quality Register
  • Checkpoint Report
  • Product Description (Correct)
  • Quality Management Strategy

Answer : Product Description

Explanation The Product Description contains a description of a product’s purpose, composition, derivation, and quality criteria. It is produced at planning time and as soon as possible after the need for the product is identified.

What situation does the “creation of an exception plan? usually follow?

Options are :

  • An Exception Report being submitted to the Project Board in the case of a management stage is forecasted to exceed its tolerance (Correct)
  • A newly identified risk being captured and documented in the Risk Register
  • A time or cost slippage occurring during a management stage
  • A Stage Plan updated due to an urgent corrective action being taken by the Project Manager

Answer : An Exception Report being submitted to the Project Board in the case of a management stage is forecasted to exceed its tolerance

Explanation PRINCE2 uses the principle of management by exception with tolerances set at each appropriate level. For example, tolerances could be set at the project stage or work package levels. The PRINCE2 Exception Report plays a vital role in the success of management by exception, since it is created whenever a stage plan or project plan is forecast to exceed the relevant tolerance bounds. This gives upper management the chance to step in and stop a project that is exceeding the tolerances, without having to closely handle every decision in the project (when it is within the tolerances).

What process begins once the Starting Up of a Project process is completed?

Options are :

  • Controlling a Stage
  • Directing a Project (Correct)
  • Managing a Stage Boundary
  • Initiating a Project

Answer : Directing a Project

Explanation PRINCE2 is a process-based approach for project management. There are 7 processes that guide you through the project, and each provides a set of activities. The purpose of the Directing a Project process is to enable the Project Board to be accountable for the project by making key decisions, to have overall control, and delegate day-to-day management of the project to the Project Manager. This begins after the project has been “started up?.

What role has the specific responsibility for checking that the project remains aligned to the corporate or program strategy?

Options are :

  • Senior User
  • Project Assurance (Correct)
  • Senior Supplier
  • Project Manager

Answer : Project Assurance

Explanation The Project Assurance role is responsible for giving assurance to the project board on the actual status of the project. This includes reviewing the Outline Business Case, confirming that the right approach is being adopted, defining how the risk assessment will be carried out, and ensuring the right user representation is being provided.

Fill in the blank: PRINCE2 recommends three __________ levels to reflect the needs of the different levels of management involved in a project.

Options are :

  • Plan (Correct)
  • Product
  • Benefit
  • Activity

Answer : Plan

Explanation The planning horizon is the period of time for which it is possible to accurately plan, and it is therefore seldom desirable or possible to plan an entire project at the start. Therefore, it is recommended that there are different plan levels to reflect the needs of the different levels of management involved within the project.

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