Prince2 Foundation Practice Questions and Answers

What kind of environment does PRINCE2 assume?

Options are :

  • Third party
  • Customer/Supplier (Correct)
  • Fixed-price contract
  • Management and Specialist

Answer : Customer/Supplier

Explanation PRINCE2 is based upon the simple assumption that the project operates within a customer-supplier environment. This means that there is always a customer, which can be an individual, group or organization which has a business need. This might be a business problem that they are facing, such as the need to cut costs. The customer will sponsor the project in that it will be responsible for providing the funding for the project.

What factor DOES NOT need to be taken into consideration when identifying management stages?

Options are :

  • The number of technical stages (Correct)
  • How confident the Project Board and Project Manager are with proceeding
  • Where the key decisions points need to be
  • The amount of risk within the project

Answer : The number of technical stages

Explanation In PRINCE2 a project is broken up into a number of management stages. There are one or more “delivery� stages which are management stages the where specialist products are developed. Before proceeding to the next stage, the updated Business Case is reviewed to determine whether the project continues to have business justification. If it does, then the project can move into the next stage. The number of stages should not drive a decision, but risk and confidence of success should.

What process manages and reviews the plans for achieving the expected benefits?

Options are :

  • Initiating a Project
  • Managing Product Delivery
  • Directing a Project (Correct)
  • Starting up a Project

Answer : Directing a Project

Explanation The Directing a Project process ensures that the project’s products are delivered and continually manages/reviews the plans to ensure the expected benefits are being achieved.

What does PRINCE2 recommend if, for whatever reason, the business justification disappears once the project is underway?

Options are :

  • An exception assessment should be held to approve an Exception Plan to recover from the situation
  • The project should continue until the next end stage assessment
  • The project should be stopped or changed (Correct)
  • A benefits review should be undertaken

Answer : The project should be stopped or changed

Explanation Every project should be driven by a business need. If the project has no business justification, then it is unnecessary and should be stopped. If there is a change to the justification, the Business Case should be revised and a judgement on the viability of the project should be conducted by the decision makers.

What role has the specific responsibility for referring to the Project Board if any delegated limits of authority or allocated change budget are forecast to be exceeded?

Options are :

  • Project Assurance
  • Project Manager
  • Team Manager
  • Change Authority (Correct)

Answer : Change Authority

Explanation The Change Authority is a person or group who refers to the Project Board if any delegated limits of authority are exceeded. The Change Authority may be delegated responsibility from the Project Board for the consideration of requests for change or off-specifications within a certain threshold.

What role answer the question: Are the right people being involved in writing Product Descriptions?

Options are :

  • Project Support
  • Project Assurance (Correct)
  • Team Manager
  • Project Manager

Answer : Project Assurance

Explanation The Project Assurance role asks the question, “Are the right people being involved in writing the Product Descriptions?� The Project Board is responsible for assuring itself that the project is being conducted correctly. The Project Board members each have a specific area of focus for Project Assurance, namely business assurance for the Executive, user assurance for the Senior Users, and supplier assurance for the Senior Suppliers.

What environment does PRINCE2 assume?

Options are :

  • Fixed-price contract
  • Customer/Supplier (Correct)
  • Management and Specialist
  • Third party

Answer : Customer/Supplier

Explanation PRINCE2 is based upon the assumption that the project operates within what’s called a customer-supplier environment. This means that there is always a customer, which can be an individual, group or organization which has a business need. The supplier in the customer-supplier environment refers to the individuals, groups or organizations which commit specialist resources (i.e. people with specialist skills) to design, build and deliver the products which have been specified by the customer.

What is produced by the Project Manager to define and keep control of the work being done to build products?

Options are :

  • Highlight Report
  • Checkpoint Report
  • Work Package (Correct)
  • Product Status Account

Answer : Work Package

Explanation A Work Package is a set of information relevant to the creation of one or more products. It will contain a description of the work, the Product Description(s), details of any constraints on production, and confirmation of the agreement between the Project Manager and the person (or Team Manager) who is to implement the Work Package that the work can be done within the constraints.

What should be done once the Project Board has authorized initiation?

Options are :

  • Establish the quality expectations of the customer
  • Define how the project will deliver the chosen business solution
  • Establish who needs information, when, and in what format (Correct)
  • Create the initiation Stage Plan

Answer : Establish who needs information, when, and in what format

Explanation This is accomplished by creating a Project Initiation Document (PID) which is the top-level project planning document. In it, you bring together all of the information needed to get your project started, and communicate that key information to the project’s stakeholders. With a well-put-together Project Initiation Document, you can let everyone understand where the project’s heading from the outset.

What is NOT one of the four integrated elements of PRINCE2?

Options are :

  • Products (Correct)
  • Tailoring to the project environment
  • Themes
  • Principles

Answer : Products

Explanation PRINCE2 is composed of 4 integrated elements: principles, themes, processes, and the tailoring of the method to suit the needs of the project environment.

What is NOT an objective of PRINCE2 stages?

Options are :

  • Ensure that key decisions are made prior to work needed to implement them
  • Allow clarification of the impact of an external influence
  • Identify the necessary Work Packages (Correct)
  • Provide an opportunity to assess the project viability

Answer : Identify the necessary Work Packages

Explanation The objectives of the Directing a Project process are to provide authority (to make a decision) concerning the stages. This includes initiating the project (allow the Initiation Stage to start), delivering the project’s products (start the delivery stages), closing the project, providing direction and control during the project, being the interface to Corporate / Program Management, and ensuring that post-project benefits will be reviewed.

What is the purpose of quality planning?

Options are :

  • Maintain the quality and approval records stemming from the planned quality checks
  • To produce the Project Plan with resource information
  • Provide information from the undertaking of the quality methods
  • Identify the means by which quality will be achieved and assessed (Correct)

Answer : Identify the means by which quality will be achieved and assessed

Explanation For the project to meet the customer’s quality expectations and the acceptance criteria, the Project Manager must have a strategy in place. This involves identifying the necessary products and the quality criteria for each, planning quality methods (for example, the necessary tasks for quality control and product acceptance), and designating quality responsibilities.

What statement is NOT correct concerning the use of management stages?

Options are :

  • Facilitate the manage by exception principle
  • Provide review and decision points
  • Enables the project manager to have complete autonomy over the products to be produced (Correct)
  • Enable key decisions to be made prior to the detailed work

Answer : Enables the project manager to have complete autonomy over the products to be produced

Explanation In PRINCE2 we refer to these manageable chunks as stages (called Management Stages). A PRINCE2 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 the purpose of the Communication Management Strategy?

Options are :

  • Defining the communication method between the Project Board and corporate or program management (Correct)
  • Ensuring the project team can use the required reporting tools
  • Ensuring stakeholders are aware of their responsibilities
  • Producing reports for the Project Board

Answer : Defining the communication method between the Project Board and corporate or program management

Explanation The Communication Management Strategy contains a description of the means and frequency of communication to parties both internal and external to the project. It facilitates engagement with stakeholders through the establishment of a controlled and bi-directional flow of information.The Project Manager is responsible for documenting the Communication Management Strategy.

What BEST describes the calculation of the probability, impact, and proximity of an opportunity?

Options are :

  • Examine
  • Decide
  • Identify
  • Assess (Correct)

Answer : Assess

Explanation When you assess risk, you are calculating, estimating, and evaluating risk.

What is NOT a typical activity in the configuration management procedure?

Options are :

  • Verification and audit
  • Control
  • Impact assessment (Correct)
  • Status accounting

Answer : Impact assessment

Explanation The five steps of the configuration management procedure are Planning, Identification, Control Status Accounting, and Verification and Audit.

What is the recommended minimum number of stages?

Options are :

  • Initiation as the first stage, the remainder of the project as the second stage (Correct)
  • Pre-project work as the first stage, initiation as the second stage
  • Initiation as the first stage, closure activities as the second stage
  • Procurement as the first stage, design and implementation as the second stage

Answer : Initiation as the first stage, the remainder of the project as the second stage

Explanation There are a minimum of two management stages in a project: the Initiation Stage and one further Management Stage. The Closing a Project process is then the last part of the 2nd Stage in a two-stage project. A project is planned, monitored, and controlled on a stage-by-stage basis.

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

Options are :

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

Answer : Project Assurance

Explanation The Project Board has the responsibility to assure itself that the project is being conducted correctly. The Project Board members each have a specific area of focus for Project Assurance, namely business assurance for the Executive, user assurance for the Senior User, and supplier assurance for the Senior Suppliers. Therefore, the correct answer is Project Assurance since it encompasses all three aspects to ensure the project is still on track.

What theme defines and implements the means by which the project will create and verify products that are fit for purpose?

Options are :

  • Change
  • Quality (Correct)
  • Organization
  • Plans

Answer : Quality

Explanation The Quality theme defines and implements a system that will create and verify that products are fit for use and meet requirements. If the quality of the products is not as expected, then the expected benefits that should be realized will not be achieved.

What is NOT within the context of the Managing Product Delivery process?

Options are :

  • Demonstrate that each product meets its quality criteria through carrying out the specified quality methods
  • Receiving and signing off completed Work Packages
  • Reviewing the work situation and triggering new Work Packages
  • The continuing correct focus of the project should be confirmed at the end of each stage (Correct)

Answer : The continuing correct focus of the project should be confirmed at the end of each stage

Explanation The purpose of the Managing Product Delivery process is to manage and control the work between the Project Manager and the Team Manager by placing certain formal requirements on the accepting, executing, and delivery of products. The Managing Product Delivery process views the project from the Team Manager’s point of view in the same way the Controlling a Stage process is from the point of view of the Project Manager.

Change can only be considered in relation to an established _________.

Options are :

  • Product
  • Situation
  • Baseline (Correct)
  • Specification

Answer : Baseline

Explanation The aim of issue and change control procedures is not to prevent changes; it is to ensure that every change is agreed by the relevant authority before it takes place. Therefore, a prerequisite of effective issue and change control is the establishment of an appropriate configuration management system which records baselines for the project’s products and ensures that the correct versions are delivered to the customer.

What integrated element is the structure of PRINCE2 made up of?

Options are :

  • Principles, Themes, Processes, Tailoring to the project environment (Correct)
  • Outputs, Outcomes, Benefits
  • Organization, Plans, Progress, Business Case, Risk, Quality, Change
  • Time, Cost, Quality, Scope, Benefit, Risk

Answer : Principles, Themes, Processes, Tailoring to the project environment

Explanation PRINCE2 suggests four integrated elements to be built into the structure of a project: Principles, Themes, Processes, and Tailoring to the Environment. There are seven principles (Continued Business Justification, Manage by Exception, Learn from Experience, Defined Roles and Responsibilities, Managed by Stages, Focus on Products, and Tailoring). There are also seven themes (Business Case, Organisation, Quality, Plans, Risk, Change, and Progress). There are also seven processes (Starting Up A Project, Initiating A Project, Directing A Project, Controlling A Stage, Managing Product Delivery, Managing Stage Boundaries, and Closing A Project).

What BEST defines a project’s output?

Options are :

  • The measurable improvement resulting from an outcome
  • The information required for decision-making purposes
  • The result of the change derived from using the project’s outputs
  • Any one of the project’s specialist products (Correct)

Answer : Any one of the project’s specialist products

Explanation A project’s output is defined as the outputs, products, or solutions that are created by the project’s work. This outcome can result in outcomes and these outcomes create benefits and business value.

What BEST describes the purpose of the Organization theme?

Options are :

  • Define and establish the project’s structure of accountability (Correct)
  • Define and implement the means by which the project will create and verify products that are fit for purpose
  • Defines different levels of plan for the different management levels
  • Allocates jobs to people in the project

Answer : Define and establish the project’s structure of accountability

Explanation The Organization Theme provides the knowledge to help define and establish the project’s structure of accountability and responsibilities.

Which statement applies to the Closing a Project process?

Options are :

  • Provide an opportunity to ensure that all unachieved goals and objectives are identified (Correct)
  • The continuing correct focus of the project should be checked at the end of each stage
  • Used for each delivery stage of the project
  • Provide a means by which an exception process can be implemented

Answer : Provide an opportunity to ensure that all unachieved goals and objectives are identified

Explanation The project should have a clear end with a correct handover of information and responsibility. A clear end to the project means that a check to ensure the original objectives have been met is conducted, the transferring of ownership of products to the customer occurs, and the identification of all unachieved objectives is completed.

What role is responsible for specifying the benefits and for ensuring that they are subsequently realized?

Options are :

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

Answer : Senior User

Explanation The Senior User is responsible for specifying the products and outcomes expected. The Senior User has a responsibility for articulating and realizing the benefits expected from a project. The Senior User must therefore be able to demonstrate to higher levels of management that the project benefits are indeed being fulfilled. Therefore, the Senior User represents the interests of the people operating the project’s products.

What process ensures the plans for achieving the expected benefits are managed and reviewed?

Options are :

  • Directing a Project (Correct)
  • Closing a Project
  • Starting up a Project
  • Initiating a Project

Answer : Directing a Project

Explanation 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 achieve the expected benefits of the project, to have overall control and delegate day-to-day management of the project to the Project Manager.

What product is used to define a budget for responding to potential threats and opportunities?

Options are :

  • Issue Register
  • Risk Management Strategy (Correct)
  • Risk Register
  • Project Plan

Answer : Risk Management Strategy

Explanation A risk budget is an amount of money that is put aside just to deal with specific responses to threats or opportunities. Certain responses to Risk will require certain actions to be done that cost money, and this will be budgeted in the risk budget. The risk budget is defined in the risk management strategy.

What is an objective of a quality review?

Options are :

  • Provide sufficient information to perform a performance review on the Producer
  • Allow the Project Manager to delegate more quality checking responsibility to the Team Manager
  • Provide confirmation that the product is complete and ready to be approved (Correct)
  • Provide an opportunity to change the product

Answer : Provide confirmation that the product is complete and ready to be approved

Explanation The PRINCE2 Quality Review technique is a Quality Inspection technique. It has defined roles and a specific structure to follow. The purpose is to inspect and ensure that a product is complete, that it respects the customer’s Quality standards and meets the Quality criteria listed in the Product Description.

What role is the key decision-maker on the project management team?

Options are :

  • Change Authority
  • Executive (Correct)
  • Project Manager
  • Corporate or program management

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.

Who provides the Team Manager with approval for a product’s completion?

Options are :

  • The authority defined in the project’s Product Description (Correct)
  • Project Manager
  • The producer of the product
  • Quality Assurance as part of their independent audits

Answer : The authority defined in the project’s Product Description

Explanation The Product Description presents information about a project’s component products. The product breakdown structure (PBS) visualises these and the description breaks them down. The authority for a product’s completion is described in the Product Description, as well.

Which of the following best defines an output?

Options are :

  • Any one of the project’s specialized products (Correct)
  • Measurable improvement resulting from an outcome
  • Information required for decision-making purposes
  • Result of the change derived from using the project’s outputs

Answer : Any one of the project’s specialized products

Explanation The project’s output is the overall product that results into during the project and is deployed at customer location to help the customer get the business results desired. The product built is the result of the business requirements that the customer has translated into an application. These products could be direct or indirect, objective or subjective, tangible or intangible. They are clearly visible and desired.

What product shows how changes to products will be controlled and where the products will be stored?

Options are :

  • Configuration Item Record
  • Configuration Management Strategy (Correct)
  • Issue Register
  • Product Description

Answer : Configuration Management Strategy

Explanation A PRINCE2 Configuration Management Strategy Template is used to identify how, and by whom, the project’s products will be controlled and protected.

What is NOT a purpose of the Plans theme.

Options are :

  • Define the means of delivering the products
  • Facilitate communication
  • Ensure targets are achievable
  • Establish the project’s structure of accountability (Correct)

Answer : Establish the project’s structure of accountability

Explanation The structure of accountability of a project is a purpose of the Organization theme.

What involves the sending of information regarding project threats or opportunities to external stakeholders?

Options are :

  • Communicate (Correct)
  • Identify
  • Implement
  • Plan

Answer : Communicate

Explanation The PRINCE2 Communication Management Strategy contains a description of the means and frequency of communication to parties both internal and external to the project. This strategy facilitates engagement with stakeholders through the establishment of a controlled and bi-directional flow of information.

What role has the specific responsibility for identifying and advising the Project Manager of any issues and risks associated with a Work Package?

Options are :

  • Team Manager (Correct)
  • Project Assurance
  • Senior Use
  • Project Support

Answer : Team Manager

Explanation The Team Manager has the responsibility to produce the products that were assigned in Work Packages by the Project Manager and to provide regular status reports to the Project Manager.

What statement is TRUE concerning a project’s outputs, outcomes, and benefits?

Options are :

  • Outcomes are the long term results of business benefits
  • Benefits are measurable improvements resulting from project outcomes (Correct)
  • All outputs have tangible benefits
  • Outputs are changes in the way the project’s products are used

Answer : Benefits are measurable improvements resulting from project outcomes

Explanation A benefit is a quantifiable and measurable improvement resulting from the completion of a project’s deliverables. There may be many different kinds of benefits resulting from a particular project, though. For example, investing in new machinery might bring benefits in terms of greater productivity and lower maintenance costs. Alternatively, an investment in training may realize benefits in the form of greater staff productivity. Some benefits may not be as easy to quantify, such as if a hospital invests in new equipment it could bring improvements in patient care. This would have an obvious benefit to the patient, but there may not be any direct financial benefits to the hospital making the benefit harder to quantify. Wherever possible, benefits should be made measurable in order to enable an informed judgment about the value of a project by decision makers.

What supports the incorporation of the primary stakeholders into the project management team?

Options are :

  • Learn from experience
  • Continued business justification
  • Defined roles and responsibilities (Correct)
  • Manage by stages

Answer : Defined roles and responsibilities

Explanation In any project, people need to know what to do and what they can expect from others. PRINCE2 states that a project should have defined and agreed roles and responsibilities within an organization structure that engages the Business, User, and Supplier Stakeholder interests. The Defined Roles and Responsibilities theme supports the incorporation of the primary stakeholders (business, user, and supplier) into the project management team.

What are the 6 aspects of project performance that need to be managed?

Options are :

  • Processes, themes, principles, tailoring, tolerance, roles
  • Time, cost, quality, scope, tolerance, benefits
  • Time, cost, people, quality, progress, risk
  • Time, cost, scope, quality, benefits, risk (Correct)

Answer : Time, cost, scope, quality, benefits, risk

Explanation The two most frequently used tolerances are budget and time, although PRINCE2 offers you a choice of six tolerances: time, cost, scope, risk, quality and benefits.

What is NOT identified when creating a product breakdown structure?

Options are :

  • Products to be created in-house
  • Products to be modified
  • Resources required to produce the products (Correct)
  • Products to be created by an external third party

Answer : Resources required to produce the products

Explanation The product breakdown structure (PBS) ensures that all required products for a planned product are considered during the planning process. In addition, the product breakdown structure is reviewed and revised multiple times by its creators to ensure that no component is forgotten. The product breakdown structure does not identify the resources required to produce the products.

What BEST describes a stakeholder?

Options are :

  • Someone who has a financial interest/stake in an initiative
  • Only those people internal to the project team
  • Anyone that may affect the project
  • Anyone that can affect, be affected by, or perceive to be affected by an initiative (Correct)

Answer : Anyone that can affect, be affected by, or perceive to be affected by an initiative

Explanation A stakeholder is any individual, group or organization that can affect, be affected by, or perceive itself to be affected by, an initiative (program, project, activity, or risk).

What is the name given to an individual assigned to carry out the response actions to respond to particular risks known as?

Options are :

  • Risk Actionee (Correct)
  • Risk Administrator
  • Risk Manager
  • Risk Owner

Answer : Risk Actionee

Explanation The risk actionee is a nominated owner of an action to address a risk. Some actions may not be within the purview of the risk owner to control explicitly. In that case, there should be a nominated owner of the action to address the risk. That person will be required to keep the risk owner informed of the situation throughout the project.

What is known as the permissible deviation above and below a plans target for time and cost without escalating the deviation to the next level of management?

Options are :

  • Contingency
  • Concession
  • Tolerance (Correct)
  • Allowance

Answer : Tolerance

Explanation The PRINCE2 Manual defines tolerance as "the permissible deviation above and below a plan’s target for time and cost without escalating the deviation to the next level of management; There may also be tolerance levels for quality, scope, benefits and risk.� According to the PMBOK (Project Management Book of Knowledge), tolerances are discussed in terms of time, cost and scope. PRINCE2 expands that conversation to include quality, risk and benefits.

What PRINCE2 element is described as being the guiding obligations and good practices to determine whether the project is being managed appropriately?

Options are :

  • Themes
  • Tailoring PRINCE2 to the project environment
  • Principles (Correct)
  • Processes

Answer : Principles

Explanation PRINCE2 derives its methods from 7 core principles which guide obligations and good practices to determine whether the project is being managed appropriately. The first principle is Continued Business Justification (A project must make good business sense; there needs to be a clear return on investment and the use of time and resources should be justified). The second principle is to Learn from Experience (Project teams should take lessons from previous projects into account; a lessons learned log is kept updated for this purpose). The third principle is to Define Roles and Responsibilities (Everyone involved in a project should know what they and others are doing, including knowing who the decision makers are). The fourth principle is to Manage by Stages (Difficult tasks are better off broken into manageable chunks, or management stages). The fifth principle is to Manage by Exception (If a project is running well, the it doesn’t need a lot of intervention from managers; the project board is only informed if there is or might be a problem). The sixth principle is to Focus on Products (Everyone should know ahead of time what’s expected of the product; Product requirements determine work activity, not the other way around). The seventh principle is to Tailor to the Environment (The concepts used in PRINCE2 can be scaled and tailored to the current project; Projects that adapt PRINCE2 to their needs are more likely to succeed than projects that use PRINCE2 dogmatically).

What is a specific objective of the Managing Product Delivery process?

Options are :

  • Team Managers, team members and suppliers are clear as to what is to be produced and what is the expected effort, cost, or timescale (Correct)
  • The Business Case is kept under review
  • Attention is focused on delivery of the stage’s products
  • The project management team is focused on delivery within the tolerances laid down

Answer : Team Managers, team members and suppliers are clear as to what is to be produced and what is the expected effort, cost, or timescale

Explanation The objective of the Managing Product Delivery process is to ensure that the products assigned to the team are authorized and agreed upon. A second objective is to ensure 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 is also to ensure that the planned products are delivered to the expectations and within tolerance.

What is a specific quality review role that is responsible for submitting questions on a product?

Options are :

  • Approver
  • User
  • Reviewer (Correct)
  • Project Support

Answer : Reviewer

Explanation A reviewer is a person or group independent of the producer who assesses whether a product meets its requirements as defined in its Product Description. This role reviews the products, submits questions and confirms corrections or improvements and can also submit a question list to the chair ahead of the Quality review.

What role has the specific responsibility for managing the information flows between the directing and delivering levels of the project?

Options are :

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

Answer : Project Manager

Explanation The Project Manager is the person who is given the authority and responsibility to manage the project on a day-to-day basis to deliver the required products within the constraints agreed with the Project Board.

What theme is used to assess and control the uncertainty within a project?

Options are :

  • Risk (Correct)
  • Progress
  • Change
  • Plans

Answer : Risk

Explanation The purpose of the Risk theme is to identify, assess, and control uncertainty and, as a result, improve the ability of the project to succeed.

What is used to pay for an issue that would increase scope, as well as any related analysis costs?

Options are :

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

Answer : Change budget

Explanation The change budget is money allocated to the Change Authority for the sole purpose of being available to be spent on authorized requests for change that would increase the scope of the project.

What product would contain information on the status of the project and stage tolerances, products completed during the period, and a summary of actual or potential problems and risks?

Options are :

  • Risk Register
  • Highlight Report (Correct)
  • Product Status Account
  • Communication Management Strategy

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 the definition of a Program?

Options are :

  • 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 (Correct)
  • 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
  • A permanent team that is created to deliver a series of business change initiatives

Answer : 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

Explanation A program is a temporary flexible organization structure created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objectives. A program is likely to occur over a several year period of time.

What role ensures that the project’s stakeholders are assured that the project remains desirable, viable, and achievable at all times?

Options are :

  • Corporate or program management
  • Senior User
  • Project Manager
  • Executive (Correct)

Answer : Executive

Explanation The Executive is the single individual with overall responsibility for ensuring that a project meets its objectives and delivers the projected benefits. This individual should ensure that the project maintains its business focus, that it has clear authority, and that the work, including risks, is actively managed. The Executive is the chair of the Project Board. He or she represents the customer and is responsible for the Business Case to ensure the project remains desirable, viable, and achievable at all times.

What is a Project Board control?

Options are :

  • Review Checkpoint Reports to monitor progress
  • Use of project registers and logs to review progress
  • Approving a deviation of benefits tolerance
  • Approve a plan with its relevant tolerances for the next management stage (Correct)

Answer : Approve a plan with its relevant tolerances for the next management stage

Explanation The Project Board reviews either a Stage Plan or Exception Plan. They have the authority to approve the plan with its relevant tolerances for the next management stage. Conversely, they also have the authority to trigger the premature closure of the project if there is insufficient justification to continue with the project.

What type of progress control is a checkpoint report?

Options are :

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

Answer : Time-driven

Explanation Checkpoint Report is a progress report provided by the team manager and sent to the project manager that explains how the work on a work package is progressing. Within PRINCE2, both of the time-driven controls are handled by two progress reports: the highlight report and the checkpoint report.

What BEST defines an outcome?

Options are :

  • Any one of the specialist products
  • A measurable improvement perceived as positive by one or more stakeholder
  • An actual negative consequence of doing the project
  • The result of change, normally affecting real-world behavior or circumstances (Correct)

Answer : The result of change, normally affecting real-world behavior or circumstances

Explanation The outcome is the measurable changes that take place in an organization while using project outputs. This is the result of the change that affects the real-world behavior or circumstances. It is a measurable improvement. For example, your help desk is now able to answer support calls faster than before due to a new product created by the project.

When is it determined if a project has met or achieved its objectives?

Options are :

  • During the Managing Product Delivery process
  • During the Controlling a Stage process
  • During the Closing a Project process (Correct)
  • During the final end stage assessment

Answer : During the Closing a Project process

Explanation The purpose of the Closing a Project process is to provide a fixed point to check that the project has reached its objectives and that the products have been accepted by the senior user.

What is mandatory in a PRINCE2 project?

Options are :

  • Use of Exception Plans
  • Use of Team Plans
  • Use of management stages (Correct)
  • Use of a separate person as Team Manager

Answer : Use of management stages

Explanation A good way to go about doing any large task or project is to break it up into manageable pieces. In PRINCE2, these manageable chunks are called Management Stages. A project is planned, monitored, and controlled on a stage-by-stage basis.

Consider the following statements: (I) Product Descriptions show the hierarchy of a Plan’s products. (II) Identifying activities and dependencies is a key task of product-based planning.

Options are :

  • Only Statement I is true
  • Neither Statement I and II are true (Correct)
  • Only Statement II is true
  • Both Statement I and II are true

Answer : Neither Statement I and II are true

Explanation Product-based planning is a technique leading to a comprehensive plan based on the creation and delivery of required outputs. The technique considers prerequisite products, quality requirements, and the dependencies between products.

What theme provides the mechanisms to forecast a project’s continued viability?

Options are :

  • Plans
  • Risk
  • Progress (Correct)
  • Business Case

Answer : Progress

Explanation Three of the seven principles are represented in the Progress Theme. These are Manage by Stages, Continued Business Justification, and Managed by Exception.

What is NOT established as part of the pre-project work?

Options are :

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

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

Explanation Before a project even starts, someone comes up with an idea or a need. This can be a business opportunity or something that is necessary to do for the organization. This idea or need is the trigger for the project, and the first step that is normally taken is the creation of a project mandate document. This document is a very broad outline of the project to include the ways the product could be delivered, what is to be delivered, and some basic planning on how to initiate this project.

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