PRINCE2 7th Edition Foundation Exam Test Questions and Answers

If you want to easily breeze through your PRINCE2 Foundation Exam in the 2020’s, then these juicy latest exam questions (including detailed rationale answers) will get you PRINCE2 qualified on your first attempt!
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NOTE: You will only get 60 questions on your actual exam – I threw in an extra 14 for practice!
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If you prefer to see a full list of PRINCE2 FOUNDATION Exam questions with answers and rationale – then here is a detailed list. Enjoy!
2 What practice ensures the project is desirable, viable and achievable?
a) Organization
b) Progress
c) Business Case
d) Risk
3 What process is triggered by the Project Manager’s request to initiate a project?
a) Starting up a Project
b) Initiating a Project
c) Directing a Project
d) Managing a Stage Boundary
4 The purpose of what PRINCE2 practice is to establish mechanisms to monitor and compare actual achievements against those planned?
a) Business Case
b) Change
c) Progress
d) Quality
5 Which is an objective of the Closing a Project process?
a) Check that all the project’s products have been accepted by the users
b) Prepare for the final stage of the project
c) Capture the customer’s quality expectations
d) Ensure that all benefits have been achieved
6 Identify the missing words in the following sentence.
A purpose of the Managing a Stage Boundary process is to provide the Project Board with sufficient information so that it can approve the [ ? ] for the next stage.
a) Work Packages
b) Exception Report
c) Stage Plan
d) Project Brief
7 Which PRINCE2 practice provides information on what is required, how it will be achieved and by whom?
a) Organization
b) Plans
c) Business Case
d) Quality
8 Which is recommended as a possible risk response type for an opportunity?
a) Reduce
b) Transform
c) Accept
d) Fallback
9 Basing projects on a ‘management by exception’ principle provides which benefit?
a) Promotes consistency of project work and staff mobility
b) Provides a common language
c) Clarity of what a project will deliver, why, when and by whom
d) Efficient and cost-effective use of management time
10 Identify the missing words in the following sentence.
The purpose of the [ ? ] process is to establish solid foundations for the project, enabling the organization to understand the work that needs to be done to deliver the project’s products.
a) Initiating a Project
b) Starting up a Project
c) Directing a Project
d) Managing a Stage Boundary
11 Which is a purpose of the Managing Product Delivery process?
a) Controls the link between the Project Manager and the Team Manager(s)
b) Tracks the progress of a stage with the help of Checkpoint Reports
c) Provides a link between the work of the Project Manager and the Project Board
d) Maintains a focus on the delivery of benefits throughout the stage
12 Which role is responsible for authorizing and monitoring work to be completed and for taking corrective action within a stage?
a) Project Manager
b) Project Support
c) Project Assurance
d) Team Manager
13 Which fact is true of Project Assurance but not quality assurance?
a) Responsible for monitoring the conduct of the project
b) Independent of the Project Manager
c) Appointed as part of the project management team
d) Responsible for reviewing the project for compliance with corporate standards
14 Which is NOT a characteristic of a project?
a) Has a higher degree of risk than business as usual
b) Involves people with different skills introducing a change that will impact others outside of the team
c) Has a lifespan that usually covers the delivery of the desired outcomes and the realization of all the expected benefits
d) A temporary management structure created for the implementation of business products
15 What product forms the ‘contract’ between the Project Manager and the Project Board for the project?
a) Project Plan
b) Project Product Description
c) Project Initiation Documentation
d) Project Brief
16 Which is an objective of the Managing a Stage Boundary process?
a) Enable the Project Board to commit resources and expenditure required for the initiation stage
b) Review and, if necessary, update the Project Initiation Documentation
c) Provides a break between those managing the project from those creating products
d) Ensure a periodic review is held to approve the products created within the completed stage
checks are NOT left until the end of the stage
17 How should a Team Manager escalate a suggestion for an improvement to a product?
a) Include details in a Checkpoint Report
b) Include details in a Highlight Report
c) Raise an issue
d) Raise an Exception Report
18 Which is a purpose of the Closing a Project process?
a) Define the procedure for handing over products
b) Provide a fixed point at which acceptance for the project product is confirmed
c) Define formal requirements for the acceptance, execution and delivery of project work
d) Confirm all project benefits have been achieved
19 Which is an objective of the Starting up a Project process?
a) Confirm there are no known restrictions that would prevent the project from being delivered
b) Ensure all Team Managers understand their responsibilities
c) Get approval for the Project Plan from corporate or programme management
d) Prepare the Project Initiation Documentation for authority to initiate the project
20 What process is used to provide an interface with corporate or programme management?
a) Managing Product Delivery
b) Directing a Project
c) Controlling a Stage
d) Managing a Stage Boundary
21 Which is NOT a purpose of an End Project Report?
a) Compare project achievements against what was originally agreed
b) Record information that will help future projects
c) Prompt the Project Board to authorize the next stage
d) Pass on details of any ongoing risks for those who will maintain and operate the finished product
22 Identify the missing word(s) in the following sentence.
If a baselined product requires modification, the [ ? ] procedure should be applied in order to manage the modification.
a) risk management
b) exception
c) issue and change control
d) quality control
23 Which is a purpose of a Project Brief?
a) Describe an agreed position from which the project can be started
b) Describe the information needs of the project’s stakeholders
c) Describe the configuration management that will be used by the project
d) Describe the reporting requirements of the Project Board
24 Which is one of the five integrated elements within PRINCE2?
a) Quality
b) Role descriptions
c) Processes
d) Product Descriptions
25 Which of the following statements apply to a Stage Plan?
1. Is produced with the knowledge of earlier stages
2. Provides the basis for control by the Project Board
3. Is produced close to the time when the planned events will take place
4. Provides the basis for day-to-day control by the Project Manager
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
26 Identify the missing words in the following sentence.
Because the Project Board receives regular [ ? ], there is no need for regular progress meetings.
a) End Stage Reports
b) Checkpoint Reports
c) Exception Reports
d) Highlight Reports
27 Which is a benefit of using the product-based planning technique?
a) All the required products of the project will be delivered to time and to cost
b) Clearly shows how long a project will take
c) It removes the need for activity-based planning
d) Reduces the risk of incorrectly scoping the project
28 Which of the following statements about the purpose of the Risk process are true?
1. The Risk practice identifies how to manage risks at the corporate or programme level of an organization
2. The Risk practice explains the risk management activities to use to improve the chances of a project delivering its objectives
a) Only 1 is true
b) Only 2 is true
c) Both 1 and 2 are true
d) Neither 1 nor 2 are true
29 What project management team role can authorize the premature closure of a project?
a) Project Manager
b) Project Board
c) Project Support
d) Project Assurance
30 Which is a purpose of the Organizing practice?
a) Set the tolerance on the cost of resources
b) Provide project management training to those working within the project
c) Define the structure of accountability and responsibilities on the project
d) Implement the controls required to permit management by exception
31 Which process enables the Project Board to exercise overall control of a project?
a) Directing a Project
b) Controlling a Stage
c) Starting up a Project
d) Initiating a Project
32 Which is the first plan to be created?
a) Project Plan
b) Initiation Stage Plan
c) Team Plan
d) Exception Plan
33 What is the PRINCE2 definition of a project?
a) Several activities managed as a unit
b) A unique undertaking that requires organization and resources
c) An element of work that a Project Manager agrees to deliver
d) A temporary organization created for the purpose of delivering business products
34 Which is NOT an objective of the Managing Product Delivery process?
a) Ensure suppliers understand what is expected of them
b) Ensure products of appropriate quality are delivered
c) Ensure the Project Board is kept informed of progress on the products
d) Ensure work for the team is agreed with the Project Manager
35 Which is an objective of the quality review technique?
a) Involve key interested parties to promote wider acceptance of the product
b) Develop and improve the specification of a product through continuous assessment
c) Agree any changes required to the baselined product
d) Update the status information in the Configuration Item Record when a product is signed-off
36 Which is a purpose of the Communication Management Approach?
a) Identify how and by whom the project’s products will be controlled and protected
b) Define the method of communication between the project and its stakeholders
c) Define the structure of responsibilities and accountabilities in support of effective decision making in a project
d) Identify the communications required from the Team Manager(s) to the Project Board
37 Identify the missing words in the following sentence.
Any requests for change, which require Project Board approval, should be recorded in the [ ? ] and monitored by the Project Manager
a) Product Description
b) Issue Register
c) Configuration Item Record
d) Quality Register
38 Which is a recommended quality review team role?
a) Senior User
b) Presenter
c) Project Support
d) Project Assurance
39 If a product fails its quality check, what product should always be updated?
a) Risk Register
b) Issue Register
c) Quality Register
d) Lessons Log
40 In what product should the Project Manager enter the details of issues that are resolved without using the formal issue and change control procedure?
a) Stage Plan
b) Daily Log
c) Configuration Item Record
d) Checkpoint Report
41 Which of the PRINCE2 principles uses tolerances to establish the limits of delegated authority?
a) Manage by stages
b) Tailor to suit the project environment
c) Focus on products
d) Manage by exception
42 Which is a purpose of the Starting up a Project process?
a) Ensuring that the prerequisites for initiating the project are in place
b) Establishing that the Project Plan can meet the required target dates
c) Creating the Project Initiation Documentation so the project can be initiated
d) Confirming to corporate or programme management that quality expectations will be met
43 When should the project management team be reviewed?
a) As and when new stakeholders are identified
b) When planning a quality review
c) When planning the next stage
d) During product creation
44 Which is NOT a responsibility of the Project Board?
a) Allocate tolerances to specialist teams
b) Transfer ownership of the Benefits Management Approach to corporate or programme management
c) Approve the Project Product Description
d) Confirm the required frequency of Highlight Reports
45 Who sets the project tolerances?
a) Project Board
b) Business management
c) Executive
d) Project Manager
46 PRINCE2 plans are carefully designed to meet the needs of the different levels in the project organization. Why is this a benefit?
a) Ensures stakeholders are properly represented
b) Improves communication and control
c) Ensures that one plan will meet everyone’s needs
d) Reduces the levels of management required in the project organization
47 What levels of plan are recommended by PRINCE2?
a) Project Plan
b) Project Plan and Stage Plan
c) Project Plan, Stage Plan and Team Plan
d) Project Plan, Stage Plan, Team Plan and Exception Plan
48 Which of the following are described in a Product Description?
1. The component parts of the product
2. The products that are derived from this product
3. The skills needed to create the product
4. The method required to check the product
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
49 Which of the following is funded from a change budget?
a) All changes to the baseline cost of the project
b) Increased tolerance required by the Project Manager to complete a stage
c) Changes to approved baselined products
d) The correction of an off-specification
50 What is risk appetite?
a) Part of the project budget, used to pay for any additional activities required to manage risks
b) The funds the Project Board is willing to spend on the management of risk
c) Permissible deviation from planned expenditure without the need to escalate to the next higher authority
d) An organization’s attitude towards risk-taking
51 Which role represents the ‘delivering’ level on the project management team?
a) Project Board
b) Project Manager
c) Team Manager
d) Project Support
52 Which is a purpose of the Benefits Management Approach?
a) Document the justification for the undertaking of a project
b) Describe only residual benefits and those that could not be achieved during the lifecycle of the project
c) Provide a schedule for measuring the achievement of benefits
d) Provide the reasons for the project, for entry into the Business Case
53 Which is a purpose of a Configuration Item Record?
a) Provide a summary of the status of all products at any one time
b) Provide any details of important links between configuration items
c) Support the creation of the project product breakdown structure
d) Include an analysis of an issue or risk which caused the product to change
54 Which is NOT a purpose of the Controlling a Stage process?
a) Take corrective actions to control deviations from the Stage Plan
b) Recommend the tolerances for the next stage
c) Report progress to the Project Board
d) Assign work to be done
55 Which is a true statement regarding stages?
a) A project can be scheduled without management stages
b) There can be several management stages within a technical stage
c) Several management stages can be scheduled to run concurrently
d) Technical stages and management stages should always end together
56 Which is a purpose of the Risk Management Approach?
a) Defines the techniques to be used when assessing project risks
b) Summarizes exposure to strategic, programme, project and operational risks
c) Recommends responses for each of the project risks
d) Identifies suitable risk owners for each of the project risks
57 Which role can the Project Manager also perform?
a) Executive
b) Project Assurance
c) Change Authority
d) Senior User
58 What are the three recommended types of issue?
a) Off-specification, request for change and concession
b) Off-specification, request for change and problem/concern
c) Request for change, problem/concern, and Issue Report
d) Request for change, Issue Report and risk
59 Which of the following is established within the Initiating a Project process?
a) The various ways in which the project can be delivered
b) Those who require project information have been identified
c) All of the information to develop the Project Brief is available
d) Any constraints which could affect the project have been removed
60 What term is used to describe when a risk might occur?
a) Impact
b) Proximity
c) Probability
d) Evaluate
61 Within what process are Team Plans produced?
a) Initiating a Project
b) Controlling a Stage
c) Managing a Stage Boundary
d) Managing Product Delivery
62 Identify the missing words in the following sentence.
If a Project Manager has the appropriate specialist skills and knowledge, they may also perform the role of [ ? ] on the project.
a) Senior Supplier(s)
b) Team Manager(s)
c) Project Assurance
d) Senior User(s)
63 Which statement is true for project stakeholders?
a) Some have decision-making authority within the project environment
b) All are external to the corporate organization
c) All are internal to the project management team structure
d) None have decision-making authority within the project environment
64 Which of the following is funded from a risk budget?
a) Potential changes that may be required as the project progresses
b) Shortfall in estimating the development costs of the project’s products
c) Additional activities to reduce, avoid, fallback, transfer, share or enhance project risks
d) Production of a Risk Management Approach
65 Which is NOT an objective of the Controlling a Stage process?
a) Produce the Stage Plan for the next stage
b) Focus attention on delivery of the stage’s products
c) Escalate threats to tolerances
d) Keep issues and risks under control
66 Which of the following describes an output?
a) Any of the project’s specialist products
b) The result of the change derived from using the project’s products
c) The measurable improvement resulting from an outcome
d) A negative outcome
67 Which is a purpose of the Quality practice?
a) Define the way in which the project will ensure that all products of the project are fit for purpose
b) Define the procedures and responsibilities for the creation, maintenance and control of project products
c) Establish mechanisms to judge whether the project remains desirable and achievable
d) Enable the assessment of continuing project viability
68 Which factor should influence the length of a management stage?
a) Frequency of Highlight Reports
b) The level of project risk
c) Availability of the Project Board
d) Requirement of a specialist team for an element of the development work
69 After the first stage, when are the Stage Plans for further stages produced?
a) Near the end of the current stage
b) After completion of the current stage
c) When creating the Project Plan
d) At the start of the initiation stage
70 What is a risk cause?
a) Negative consequence of a threat occurring
b) Explanation of the uncertainty which, should it occur, would create a problem
c) Positive consequence of an exploited opportunity
d) A known situation which creates uncertainty
71 Which product is a time-driven control?
a) End Stage Report
b) Exception Report
c) Checkpoint Report
d) Lessons Report
72 Which is a purpose of the Project Product Description?
a) Define the quality checks that will be used for the project’s products
b) Explain what the project must handover to achieve customer acceptance
c) Confirm the delivery timescales for the project’s products
d) Document the Project Manager’s responsibilities for delivering the project’s products
73 Which is a purpose of the Change Authority?
a) Determine the change budget for a project
b) Assess the impact of all requests for change
c) Reduce the number of requests for change that need to be escalated to the Project Board
d) Allow the Project Board to delegate the approval of all risks and Issue Reports
74 To which role does a Team Manager report an exception situation?
a) Project Manager
b) Project Board
c) Project Assurance
d) Project Support
75 What is the first step within the recommended risk management procedure?
a) Assess
b) Identify
c) Implement
d) Plan
ANSWERS and Rationale
1 Which is one of the seven aspects of project performance that needs to be managed?
Overview and Principles
Correct Answer: C Objective: LL1 – Recall the seven aspects of project performance to be managed.
a) Incorrect. May be an acceptance criterion, but this is NOT one of the seven aspects of project performance that need to be managed. The seven aspects are cost, timescale, scope, quality, risk, sustainability and benefits.
b) Incorrect. May be an acceptance criterion, but this is NOT one of the seven aspects of project performance that need to be managed.
c) Correct. One of the six aspects, together with costs, timescales, quality, risk and benefits.
d) Incorrect. May be an acceptance criterion, but this is NOT one of the six aspects of project performance that need to be managed. The six aspects are cost, timescale, scope, quality, risk and benefits.
2 What practice ensures the project is desirable, viable and achievable?
Business Case practice
Correct Answer: C
Objective: Understand the purpose of the Business Case practice
a) Incorrect. The Organization tpractice defines and establishes the project’s structure of accountability and responsibilities.
b) Incorrect. The Progress tpractice establishes mechanisms to monitor and compare actual achievements against those planned and provides a forecast for the project’s continued viability.
c) Correct. The Business Case practice drives decision-making throughout the project and is used to assess if the project remains viable and benefits can be realized.
d) Incorrect. The Risk practice identifies, assesses and controls uncertainties about the project
3 What process is triggered by the Project Manager’s request to initiate a project?
Directing a Project Process
Correct Answer: C Objective: – Understand the context of the Directing a Project process.
a) Incorrect. The Starting up a Project process prepares for the authorization of the initiation stage. The request to initiate the project is an action carried out during the Starting up a Project process.
b) Incorrect. The Initiating a Project process prepares documentation to be submitted to the Project Board for project authorization, but the actual authorization comes from the Directing a Project process.
c) Correct. Only the Project Board can authorize project initiation, and its activities are covered in the Directing a Project process.
d) Incorrect. The Managing a Stage Boundary process prepares material to request authorization of a stage from the Project Board
4 The purpose of what practice is to establish mechanisms to monitor and compare actual achievements against those planned?
Progress practice
Correct Answer: C Objective: – Understand the purpose of the Progress practice.
a) Incorrect. The purpose of the Business Case practice is to establish mechanisms to judge whether the project is desirable, viable and achievable as a means to support decision making in its investment.
b) Incorrect. The purpose of the Issues practice is to identify, assess and control any potential and approved changes to the baseline.
c) Correct. The purpose of the Progress practice is to establish mechanisms to monitor and compare actual achievements against those planned; provide a forecast for the project objectives and the project’s continued viability and control any unacceptable deviations.
d) Incorrect. The purpose of the Quality practice is to define and implement the means by which the project will verify that products are fit for purpose
5 Which is an objective of the Closing a Project process?
Closing a Project Process
Correct Answer: A Objective: – Understand the objectives of the Closing a Project process.
a) Correct. To verify user acceptance of a project’s products.
b) Incorrect. The Closing a Project process occurs during the final stage, which is prepared during the Managing a Stage Boundary process, as for any other stage, except for the initiation stage.
c) Incorrect. The customer’s quality expectations are defined and agreed early in the Starting up a Project process. The expectations are captured in discussions with the customer (business and user stakeholders) and then refined for inclusion in the Project Product Description
d) Incorrect. NOT all benefits may have been achieved before the project closes. Some will be measured post-project as part of a benefits review
6 Identify the missing words in the following sentence.
A purpose of the Managing a Stage Boundary process is to provide the Project Board with sufficient information so that it can approve the [ ? ] for the next stage.
Managing a Stage Boundary Process
Correct Answer: C Objective: – Understand the purpose of the Managing a Stage Boundary process.
a) Incorrect. Work Packages are authorized by the Project Manager during the Controlling a Stage process.
b) Incorrect. An Exception Report may trigger the Managing a Stage Boundary process if an Exception Plan is required.
c) Correct. A purpose of the Managing a Stage Boundary process is to provide sufficient information to the Project Board, so that it can review the success of the current stage and approve the next Stage Plan.
d) Incorrect. The Project Brief is approved by the Project Board following the Starting up a Project process, and before the Initiating a Project process
7 What practice provides information on what is required, how it will be achieved and by whom?
Plans practice
Correct Answer: B Objective: – Understand the purpose of the Plans practice.
a) Incorrect. The purpose of the Organization practice is to define and establish the project’s structure of accountabilities and responsibilities.
b) Correct. Planning provides all personnel in a project with information on what is required, how it will be achieved and by whom, using what specialist equipment and resources, when events will happen and whether targets are achievable.
c) Incorrect. The Business Case is used to document the justification for undertaking the project.
d) Incorrect. The purpose of the Quality practice is to define and implement the means by which the project will verify that products are fit-for-purpose.
8 Which is recommended as a possible risk response type for an opportunity?
Risk practice
Correct Answer: C Objective: – Recall the risk response types and whether they are used to respond to a threat or an opportunity.
a) Incorrect. Reduce is a proactive action taken to reduce the probability or the impact of a threat occurring, by performing some form of control.
b) Incorrect. Transfer is where a third party takes on responsibility for some of the financial impact of a threat.
c) Correct. Accept is where a conscious and deliberate decision is taken NOT to exploit or enhance an opportunity, having discerned that this is more economical than to attempt an opportunity response action.
d) Incorrect. Putting in place a fallback plan for the actions that will be taken to reduce the impact of a threat should it occur. This is a reactive form of reduce response which has no impact on likelihood
9 Basing projects on a ‘management by exception’ principle provides which benefit?
Overview and Principles
Correct Answer: D Objective: – Understand the seven principles.
a) Incorrect. Consistency of project work is a benefit derived from the use of PRINCE2 project documentation and processes. It facilitates staff mobility between projects and reduces the impact of personnel changes/handovers.
b) Incorrect. PRINCE2 is widely recognized and understood, and therefore provides a common vocabulary for project participants. A common vocabulary is NOT a benefit provided by the management by exception principle.
c) Incorrect. A PRINCE2 project’s product focus provides the benefit of clarifying (for all parties) what a project will deliver, why, when, by whom and for whom.
d) Correct. PRINCE2 is based on a ‘management by exception’ framework, providing for efficient and economic use of management time (whether at corporate, programme, Project Board or project management level). It reduces their time burden without removing their control by ensuring decisions are made at the right level in the organization
10 Identify the missing words in the following sentence.
The purpose of the [ ? ] process is to establish solid foundations for the project, enabling the organization to understand the work that needs to be done to deliver the project’s products.
Initiating a Project Process
Correct Answer: A Objective: Understand the purpose of the Initiating a Project process.
a) Correct. The purpose of the Initiating a Project process is to establish solid foundations for the project, enabling the organization to understand the work that needs to be done to deliver the project’s products before committing to a significant spend.
b) Incorrect. The purpose of the Starting up a Project process is to ensure that the prerequisites for initiating a project are in place by answering the question: do we have a viable and worthwhile project?
c) Incorrect. The purpose of the Directing a Project process is to enable the Project Board to be accountable for the project’s success by making key decisions and exercising overall control while delegating day-to-day management of the project to the Project Manager.
d) Incorrect. The purpose of the Managing a Stage Boundary process is to enable the Project Board to be provided with sufficient information by the Project Manager so that it can review the success of the current stage, approve the next Stage Plan, review the updated Project Plan, and confirm continued business justification and acceptability of the risks
11 Which is a purpose of the Managing Product Delivery process?
Managing Product Delivery Process
Correct Answer: A Objective: – Understand the purpose of the Managing Product Delivery process.
a) Correct. The Managing Product Delivery process places formal requirements on accepting, executing and delivering project work.
b) Incorrect. This is the role of the Project Manager in the Controlling a Stage process.
c) Incorrect. This is an objective of the Controlling a Stage process.
d) Incorrect. This is the role of the Project Manager in the Controlling a Stage process
12 Which role is responsible for authorizing and monitoring work to be completed and for taking corrective action within a stage?
Controlling a Stage Process
Correct Answer: A Objective: – Understand the context of the Controlling a Stage process.
a) Correct. The Project Manager is responsible for controlling the day-to-day activities of the stage.
b) Incorrect. Project Support provides administrative support to the Project Manager but is NOT responsible for authorizing the work.
c) Incorrect. Project Assurance reviews the activities of the stage but is NOT responsible for authorizing the work.
d) Incorrect. The Team Manager agrees work with the Project Manager to be delivered as part of a Work Package
13 Which fact is true of Project Assurance but not quality assurance?
Quality practice
Correct Answer: C Objective: – Understand the difference between quality assurance and Project Assurance.
a) Incorrect. Both Project Assurance and quality assurance are responsible for monitoring the project’s conduct. Project Assurance reports to the project’s stakeholders. Quality assurance reports to the wider community.
b) Incorrect. They are both independent of the Project Manager.
c) Correct. Quality assurance is a function within the organization. Project Assurance is a temporary role within the project management team.
d) Incorrect. Both Project Assurance and quality assurance are responsible for assuring that applicable standards are being used.
14 Which is NOT a characteristic of a project?
Overview and Principles
Correct Answer: C Objective: – Understand the characteristics of a project.
a) Incorrect. Projects introduce threats and opportunities over and above those we typically encounter in the course of stable business operations. Projects are more risky.
b) Incorrect. The project environment involves a temporary team of people with different skills working together to introduce change within the business environment.
c) Correct. These are characteristics of a programme. Whilst projects do deliver outcomes and benefits, many will NOT be realized until after the project has closed.
d) Incorrect. Projects are temporary in nature. Once the change has been implemented the need for the project is removed
15 What product forms the ‘contract’ between the Project Manager and the Project Board for the project?
Initiating a Project Process
Correct Answer: C Objective: – Understand the purpose of the Project Initiation Documentation.
a) Incorrect. A Project Plan states how and when the objectives will be achieved but is NOT an agreement on what is to be delivered. That is defined in the Project Initiation Documentation.
b) Incorrect. The Project Product Description is used in the Closing a Project process to verify that the project has delivered what was expected but is NOT a contract between the Project Manager and the Project Board.
c) Correct. The Project Initiation Documentation forms the basis for the management and overall success of the project and as such is the ‘contract’ between the Project Manager and the Project Board.
d) Incorrect. Information in the Project Brief is NOT confirmed or detailed enough to form a firm agreement and, after use in creating the Project Initiation Documentation, it is NOT maintained
16 Which is an objective of the Managing a Stage Boundary process?
Managing a Stage Boundary Process
Correct Answer: B Objective: – Understand the objectives of the Managing a Stage Boundary process.
a) Incorrect. Commencement of the initiation stage is approved by the Project Board during the Directing a Project process, at the end of start up. This is NOT a stage boundary.
b) Correct. Review and, if necessary, update the Project Initiation Documentation (in particular the Business Case, Project Plan, project approach, strategies, project management team structure and role descriptions).
c) Incorrect. It is the Managing Product Delivery process that provides the break between the Project Manager and the teams delivering the products.
d) Incorrect. Products are assessed and approved as and when they are completed during the Managing Product Delivery process. These quality checks are NOT left until the end of the stage
17 How should a Team Manager escalate a suggestion for an improvement to a product?
Issues practice
Correct Answer: C Objective: – Understand the recommended steps in the issue and change control procedure.
a) Incorrect. This is a request for change. Although a Team Manager may refer to it in a Checkpoint Report it is NOT the vehicle to deal with a change.
b) Incorrect. The Team Manager does NOT produce Highlight Reports.
c) Correct. A Team Manager will raise it as an issue, but it is the Project Manager who determines whether this should be dealt with as a formal Issue Report.
d) Incorrect. The Team Manager does NOT raise Exception Reports
18 Which is a purpose of the Closing a Project process?
Closing a Project Process
Correct Answer: B Objective: – Understand the purpose of the Closing a Project process.
a) Incorrect. This is done in the Initiating a Project process as part of defining the Change Control Approach
b) Correct. This is a purpose of the Closing a Project process.
c) Incorrect. This is a purpose of the Managing Product Delivery process.
d) Incorrect. NOT all project benefits will have been achieved at project closure
19 Which is an objective of the Starting up a Project process?
Starting up a Project Process
Correct Answer: A Objective: – Understand the objectives of the Starting up a Project process.
a) Correct. An objective of the Starting up a Project process is to ensure time is NOT wasted on initiating any projects that are based on unsound constraints etc.
b) Incorrect. The project management team is designed during the Starting up a Project process, but the actual Team Managers may NOT be appointed until the Managing a Stage Boundary process.
c) Incorrect. The Project Plan is created in the Initiating a Project process and approved by the Project Board in the Directing a Project process.
d) Incorrect. The Project Initiation Documentation is prepared in the Initiating a Project process
20 What process is used to provide an interface with corporate or programme management?
Directing a Project Process
Correct Answer: B Objective: – Understand the objectives of the Directing a Project process.
a) Incorrect. This process is used by Team Manager(s) to communicate with the Project Manager within the Controlling a Stage process.
b) Correct. This process ensures that corporate or programme management has an interface to the project. It is a key role for the Project Board to engage with corporate or programme management and to act as a communication channel.
c) Incorrect. The Project Manager should report to and receive information from the Project Board within this process.
d) Incorrect. Products from this process will be provided to the Project Board in the Directing a Project process for it to communicate with corporate/programme management/customer
21 Which is NOT a purpose of an End Project Report?
Progress practice
Correct Answer: C Objective: – Understand the purpose of an End Project Report.
a) Incorrect. The End Project Report includes a comparison of project performance against the original Project Initiation Documentation.
b) Incorrect. An End Project Report includes the Lessons Report which will help future projects by their learning from these lessons.
c) Correct. The Project Board would use the End Stage Report in tandem with the next Stage Plan to decide what action to take with the project: for example, authorize the next stage, amend the project scope, or stop the project.
d) Incorrect. The End Project Report includes any follow-on action recommendations, which will contain any risks for the attention of those who will maintain and operate the finished product.
22 Identify the missing word(s) in the following sentence.
If a baselined product requires modification, the [ ? ] procedure should be applied in order to manage the modification.
Issues practice
Correct Answer: C Objective: – Understand the purpose of the Issue practice.
a) Incorrect. This procedure assesses and controls uncertainty, NOT change.
b) Incorrect. This procedure monitors and evaluates achievements, NOT change.
c) Correct. This is the procedure that identifies, and controls changes to baselined products. It is part of the Issues practice.
d) Incorrect. This procedure defines and produces products that are fit-for purpose
23 Which is a purpose of a Project Brief?
Starting up a Project Process
Correct Answer: A Objective: – Understand the purpose of the Project Brief.
a) Correct. One of the purposes of the Project Brief is to ensure the project has a well-defined start point.
b) Incorrect. This is a purpose of the Communication Management Approach.
c) Incorrect. This is a purpose of the Configuration Management Approach.
d) Incorrect. This is part of setting up the project controls, performed in the Initiating a Project process, NOT the Project Brief
24 Which is one of the five integrated elements within PRINCE2?
Overview and Principles
Correct Answer: C Objective: – Recall the five integrated elements.
a) Incorrect. Quality is an aspect of project performance that needs to be managed. The integrated elements are the seven principles, seven themes, seven processes and tailoring.
b) Incorrect. Role descriptions help to agree and communicate project management team roles and responsibilities. The integrated elements are the seven principles, seven themes, seven processes and tailoring.
c) Correct. Principles, themes, processes, people, and tailoring are the fiveintegrated elements.
d) Incorrect. Product Descriptions support the focus on products but the four integrated elements are the seven principles, seven themes, seven processes and tailoring
25 Which of the following statements apply to a Stage Plan?
1. Is produced with the knowledge of earlier stages
2. Provides the basis for control by the Project Board
3. Is produced close to the time when the planned events will take place
4. Provides the basis for day-to-day control by the Project Manager
Plans practice
Correct Answer: C Objective: – Understand the levels of plan, their purpose and the interrelationship between them.
a) Incorrect. (4) A Stage Plan is created at the level of detail needed to enable the day-to- day control by the Project Manager.
b) Incorrect. (3) A Stage Plan is created towards the end of the preceding stage.
c) Correct. (2) The Stage Plan provides the basis for the Project Manager’s control. The Project Board monitors against the Project Plan.
d) Incorrect. (1) A Stage Plan is produced towards the end of the preceding stage and can therefore be written with the knowledge of previous stages
26 Identify the missing words in the following sentence.
Because the Project Board receives regular [ ? ], there is no need for regular progress meetings.
Progress practice
Correct Answer: D Objective: – Understand the purpose a Highlight Report.
a) Incorrect. End Stage Reports are NOT regular and may be too far apart for good reporting.
b) Incorrect. These are from the Team Manager to the Project Manager.
c) Incorrect. These are NOT regular progress reports.
d) Correct. These are sent on a regular basis by the Project Manager to the Project Board.
27 Which is a benefit of using the product-based planning technique?
Plans practice
Correct Answer: D Objective: – Understand the product-based planning technique.
a) Incorrect. The scope will be clear, but the time and effort taken to deliver them is NOT affected.
b) Incorrect. Product-based Planning does NOT involve any estimates, and cannot therefore identify how long a project will take.
c) Incorrect. Whilst the technique focuses on identifying the products required of the project, the activities required to create or change each of the planned products may need to be identified to give a fuller picture of the plan’s workload.
d) Correct. Clearly and consistently identifying and documenting the plan’s products and interdependencies between them reduces the risk of important scope aspects being neglected or overlooked.
28 Which of the following statements about the purpose of the Risk practice are true?
1. The Risk practice identifies how to manage risks at the corporate or programme level of an organization
2. The Risk practice explains the risk management activities to use to improve the chances of a project delivering its objectives
Risk practice
Correct Answer: B Objective: – Understand the purpose of the Risk practice.
a) Incorrect. Statement 1 is false. The purpose of the Risk practice is to manage project risks, NOT at the corporate or programme level.
b) Correct. Only statement 2 is true. The Risk Management Approach defines activities that should be implemented to control risks on a project. Statement 1 is false. The purpose of the Risk practice is to manage project risks, NOT at the corporate or programme level.
c) Incorrect. Only statement 2 is true. See rationales above.
d) Incorrect. Statement 2 is true. See rationales above.
29 What project management team role can authorize the premature closure of a project?
Closing a Project Process
Correct Answer: B Objective: – Understand the context of the Closing a Project process.
a) Incorrect. The Project Manager does NOT have the required level of authority. They will implement premature closure on the request of the Project Board
b) Correct. The Project Board triggers premature closure from the Directing a Project process.
c) Incorrect. Project Support may supply management information to support a premature project closure, but the closure can only be triggered from within the project management team by the decision-making authority of the Project Board.
d) Incorrect. The Project Board may appoint Project Assurance to undertake some of the reviewing and assessing actions during the Closing a Project process, but Project Assurance does NOT have the required level of authority to trigger premature closure
30 Which is a purpose of the Organizing practice?
Organization Theme
Correct Answer: C Objective: – Understand the purpose of the Organizing practice
a) Incorrect. This is covered by the Progress practice
b) Incorrect. At the start of the project, team members may need training. The Project Manager should ensure that training needs are built into the appropriate plans.
c) Correct. The purpose of the Organizing practice is to define and establish the project’s structure of accountability and responsibilities (the who?).
d) Incorrect. Management by exception requires the setting of stages, targets against the 6 objectives and tolerance for each. This is all covered within the Progress theme.
31 Which process enables the Project Board to exercise overall control of a project?
Directing a Project Process
Correct Answer: A Objective: – Understand the purpose of the Directing a Project process.
a) Correct. The purpose of the Directing a Project process is to enable the Project Board to be accountable for the project’s success by making key decisions and exercising overall control while delegating day-to-day management of the project to the Project Manager.
b) Incorrect. The Controlling a Stage process enables the Project Manager to assign work to be done, monitor such work, deal with issues, report progress to the Project Board and take corrective action.
c) Incorrect. The Starting up a Project process ensures the prerequisites are in place for initiating a project.
d) Incorrect. The Initiating a Project process establishes solid foundations for the project.
32 Which is the first plan to be created?
Plans practice
Correct Answer: B Objective: – Understand the levels of plans, their purpose and the interrelationship between the Project Plan, Stage Plans, Team Plans and an Exception Plan.
a) Incorrect. The Project Plan is created in the Initiating a Project process, but the Stage Plan for the initiation stage is created before this.
b) Correct. The Stage Plan, for the initiation stage, contains the creation of the Project Initiation Documentation. This is the first plan to be created in the PRINCE2 processes.
c) Incorrect. Team Plans are optional and are NOT produced until the Managing Product Delivery process. This process may be optionally used during the initiation of a project, but the Stage Plan for the initiation stage is created before entering initiation.
d) Incorrect. An Exception Plan CANNOT be created until there are set targets against which progress can be measured. These targets are defined in the Project Plan and subsequent Stage Plans. However, none of these precede the Stage Plan for the initiation stage
33 What is the PRINCE2 definition of a project?
Overview and Principles
Correct Answer: D Objective: – Recall the definition of a project.
a) Incorrect. See rationale for option D.
b) Incorrect. See rationale for option D.
c) Incorrect. See rationale for option D.
d) Correct. 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
34 Which is NOT an objective of the Managing Product Delivery process?
Managing Product Delivery Process
Correct Answer: C Objective: – Understand the objectives of the Managing Product Delivery process.
a) Incorrect. The Work Package ensures that everyone in the team, including suppliers, understands what they have to do.
b) Incorrect: The Work Package should contain Product Descriptions that describe the product(s) required, including the quality criteria.
c) Correct. The Managing Product Delivery process does NOT have any communications with the Project Board. Informing the Project Board of progress on the products is part of Controlling a Stage.
d) Incorrect: Ensuring that work for the team is agreed with the Project Manager is part of the Accept a Work Package activity
35 Which is an objective of the quality review technique?
Quality practice
Correct Answer: A Objective: – Understand the objective of the quality review technique.
a) Correct. Involvement of key interested parties in checking a product’s quality promotes wider acceptance of the project’s products.
b) Incorrect. Any change to a product specification must go through formal change control.
c) Incorrect. It is an objective of the quality review technique to baseline the product for change control purpose. Any changes to a baselined product must go through formal change control.
d) Incorrect. This is NOT part of the quality review technique. The results of the review are communicated to the appropriate managers/support personnel who will update this information
36 Which is a purpose of the Communication Management Approach?
Organization practice
Correct Answer: B Objective: – Understand the purpose of the Communication Management Approach.
a) Incorrect. This is the purpose of Configuration Management NOT the Communication Management Approach.
b) Correct. This is a key element in the use of the Communication Management Approach.
c) Incorrect. This reflects the purpose of the Organization theme in PRINCE2 NOT the Communication Management Approach.
d) Incorrect. Team Managers communicate with the Project Manager NOT the Project Board.
37 Identify the missing words in the following sentence.
Any requests for change, which require Project Board approval, should be recorded in the [ ? ] and monitored by the Project Manager
Issues practice
Correct Answer: B Objective: – Understand the purpose of the Issue Register.
a) Incorrect. The Product Description will be updated to reflect requests for change, if those requirements are approved via change control. The Product Description does NOT contain details of status.
b) Correct. Requests for change should be defined in Issue Reports which should be recorded in the Issue Register, and their status monitored by the Project Manager.
c) Incorrect. This shows the status of a product and a cross-reference to any Issue Reports. It does NOT show the status of requests for change.
d) Incorrect. If requests for change are identified during a quality review, these would be raised as Issue Reports and added to the Issue Register. The Quality Register does NOT show the status of Issue Reports
38 Which is a recommended quality review team role?
Quality practice
Correct Answer: B Objective: – Recall the recommended quality review team roles.
a) Incorrect. Although the Senior User may participate in a quality review, possibly as a reviewer, Senior User is NOT a recommended quality review role.
b) Correct. This role introduces the product for review and represents the producer(s) of the product. The presenter also coordinates and tracks the work after the review, i.e. applying changes to the product agreed by the team.
c) Incorrect. Although Project Support may participate in a quality review, possibly as an administrator, Project Support is NOT a recommended quality review role.
d) Incorrect. Although Project Assurance may participate in a quality review, possibly as a reviewer, and are responsible for identifying appropriate people to fulfil this role, Project Assurance is NOT a recommended quality review role
39 If a product fails its quality check, what product should always be updated?
Quality practice
Correct Answer: C Objective: – Understand the purpose of a Quality Register.
a) Incorrect. This event has already happened. There is no uncertainty about its occurrence, therefore it is NOT a risk.
b) Incorrect. This may be raised as an issue (Off-specification) and formally managed if, for example, the failure is likely to lead to an exception situation. However, the product that should always be updated with the result of the quality activities is the Quality Register.
c) Correct. The Quality Register records the results of all quality management activities.
d) Incorrect. Whilst there may be a recommendation on how this product should be developed to avoid this experience on future projects, this statement does NOT provide evidence of this
40 In what product should the Project Manager enter the details of issues that are resolved without using the formal issue and change control procedure?
Progress practice
Correct Answer: B Objective: – Understand the purpose of a Daily Log.
a) Incorrect. The Stage Plan is used to record the activities and products planned for the stage.
b) Correct. The Project Manager can deal with issues informally, but these should be entered in the Daily Log
c) Incorrect. A Configuration Item Record contains information on the status of each product.
d) Incorrect. A Checkpoint Report is produced by the Team Manager providing progress on a Work Package
41 Which of the PRINCE2 principles uses tolerances to establish the limits of delegated authority?
Overview and Principles
Correct Answer: D Objective: – Understand the seven principles
a) Incorrect. This requires that the project be broken into manageable stages with control or decision points.
b) Incorrect. This requires that a decision be made as to how the project management method is to be applied.
c) Incorrect. This requires that the full scope of the project is understood and that all deliverables are fully defined.
d) Correct. Accountability is established by delegating authority from one management level to the next by setting tolerances against the six objectives for the respective level of the plan: time, cost, quality, scope, risk, benefit
42 Which is a purpose of the Starting up a Project process?
Starting up a Project Process
Correct Answer: A Objective: – Understand the purpose of the Starting up a Project process.
a) Correct. The purpose of the Starting up a Project process is to ensure that the question ‘do we have a viable and worthwhile project’ can be answered. This is achieved by ensuring the prerequisites for initiating the project are in place.
b) Incorrect. The Project Plan is created in the Initiating a Project process NOT the Starting up a Project process.
c) Incorrect. The Project Initiation Documentation is created in the Initiating a Project process NOT the Starting up a Project process.
d) Incorrect. The customer’s quality expectations are captured and documented in the Project Product Description during the Starting up a Project process. There is no confirmation that these will be met at this point in time as they are a target objective.
43 When should the project management team be reviewed?
Managing a Stage Boundary Process
Correct Answer: C Objective: – Understand the objectives of the Managing a Stage Boundary process.
a) Incorrect. New stakeholders may be identified at any time and will need to be added to the Communication Management Approach, NOT to the project management team structure.
b) Incorrect. The individuals nominated to take the roles within a quality review are NOT recorded in the project management team structure. They will be recorded in the Quality Register and on the associated Product Descriptions.
c) Correct. New Team Managers may be required for the next stage, different Project Assurance may be required due to the nature of the next stage, etc.
d) Incorrect. The project management team structure includes the Team Manager, but NOT the team members. This detail would be amended in the Team Plan
44 Which is NOT a responsibility of the Project Board?
Organizing practice
Correct Answer: A Objective: – Understand the role of the Project Board.
a) Correct. Tolerance is allocated to the Project Manager by the Project Board when authorizing the next stage. Tolerance is allocated to specialist teams by the Project Manager, NOT the Project Board.
b) Incorrect. As the Benefits management approach includes resources beyond the life of the project, ownership of this plan needs to transfer to corporate or programme management when authorizing project closure.
c) Incorrect. The Project Product Description is incorporated within the Project Brief which is approved by the Project Board when authorizing initiation.
d) Incorrect. The Project Board agree the frequency of Highlight Reports with the Project Manager at the end of each stage, when authorizing a Stage Plan or Exception Plan.
45 Who sets the project tolerances?
Progress practice
Correct Answer: B Objective: – Test understanding of the setting of project level tolerances.
a) Incorrect. The Project Board has overall control at a project level, as long as forecasts remain with project tolerance, and will allocate tolerances for each management stage to the Project Manager.
b) Correct. Business management sits outside the project but sets the overall requirements and tolerance levels of the project.
c) Incorrect. The Executive forms part of the Project Board. Project tolerance is set by the business management for the Project Board.
d) Incorrect. The Project Manager agrees Work Package tolerance with the Team Manager (s)
46 PRINCE2 plans are carefully designed to meet the needs of the different levels in the project organization. Why is this a benefit?
Overview and Principles
Correct Answer: B Objective: – Understand the benefits of using PRINCE2.
a) Incorrect. Stakeholders are NOT represented in plans. They may receive copies.
b) Correct. PRINCE2 plans are designed to meet the needs of the different levels in the project organization and assist in communication and control by being regularly updated and copied to the necessary levels.
c) Incorrect. One plan is unable to meet the needs of all levels in the project organization.
d) Incorrect. The levels of management in a project organization are recommended within the PRINCE2 method. The recommended plans do NOT affect the levels of management required
47 What levels of plan are recommended by PRINCE2?
Plans practice
Correct Answer: C Objective: – Recall the levels of plan recommended by PRINCE2.
a) Incorrect. In addition there are two further levels: the Stage Plan and Team Plan.
b) Incorrect. In addition there is a further level of Team Plan.
c) Correct. Project Plan, Stage Plan and Team Plan (Exception Plan replaces one of these).
d) Incorrect. Project Plan, Stage Plan and Team Plan (Exception Plan replaces one of these)
48 Which of the following are described in a Product Description?
1. The component parts of the product 2. The products that are derived from this product 3. The skills needed to create the product 4. The method required to check the product
Quality practice
Correct Answer: C Objective: – Understand the purpose of a Product Description.
a) Incorrect. By understanding the quality method and quality skills needed, the review activities can be planned for and scheduled.
b) Incorrect. The skills needed to develop the product will aid resource planning.
c) Correct. The Product Description includes products on which this one is dependant but NOT vice versa.
d) Incorrect. The composition will identify the parts of a product giving an indication of its ‘size’ to assist estimating
49 Which of the following is funded from a change budget?
Issues practice
Correct Answer: C Objective: – Understand the purpose of a change budget.
a) Incorrect. Any changes to the project costs will come from Corporate Management unless it is allowed for in the Project Board tolerance.
b) Incorrect. The cost tolerance is given to the Project Manager for each stage. Any increase would require an Exception Report that the Project Board would review and if necessary fund from the project’s tolerance.
c) Correct. This is a sum of money the customer and supplier agree will fund any request for change. It is given to a Change Authority to manage and control.
d) Incorrect. The change budget does NOT pay for corrections to off-specifications
50 What is risk appetite?
Risk practice
Correct Answer: D Objective: – Understand the concept of risk appetite/tolerances.
a) Incorrect. This is a risk budget; a sum of money included within the project budget and set aside to fund specific management responses to the project’s threats and opportunities.
b) Incorrect. This is a risk budget, the mechanisms for control of and access to which should be detailed in the Risk Management Approach.
c) Incorrect. This describes cost tolerance, NOT risk appetite.
d) Correct. An organization’s unique attitude towards risk-taking that in turn dictates the amount of risks it considers acceptable
51 Which role represents the ‘delivering’ level on the project management team?
Organizing practice
Correct Answer: C Objective: – Understand the three project interests and how these are represented within the three levels of the project management team structure.
a) Incorrect. The Project Board represents the ‘directing’ level.
b) Incorrect. The Project Manager represents the ‘managing’ level.
c) Correct. The ‘delivering’ level relates to the Team Manager responsible for delivering the project’s products which they do via the Managing Product Delivery process.
d) Incorrect. Project Support does NOT represent a level on the project management team.
52 Which is a purpose of the Benefits Management Approach?
Business Case practice
Correct Answer: C Objective: – Understand the purpose of a Benefits management approach.
a) Incorrect. This is a purpose of the Business Case.
b) Incorrect. The Benefits management approach includes all benefits, NOT just those which can be measured after the project has closed.
c) Correct. The Benefits management approach is used to cover the assessment of benefits.
d) Incorrect. The reasons for the project are derived from the project mandate and documented in the outline Business Case during the Starting up a Project process
53 Which is a purpose of a Configuration Item Record?
Issues practice
Correct Answer: B Objective: – Understand the purpose of a Configuration Item Record.
a) Incorrect. This describes the Product Status Account. Each version of a product has a different Configuration Item Record.
b) Correct. Contains the relationship with other items which may be affected by any changes to the product.
c) Incorrect. The maximum level of control possible is determined by breaking down the project’s products until the level reached at which a component can be independently installed, replaced or modified. The product breakdown structure can therefore support configuration management.
d) Incorrect. Configuration Item Records include a cross-reference to any issues or risks which caused the product to change, it does NOT contain details of the issues/risks themselves.
54 Which is NOT a purpose of the Controlling a Stage process?
Controlling a Stage Process
Correct Answer: B Objective: – Understand the purpose of the Controlling a Stage process.
a) Incorrect. The Project Manager takes corrective actions to ensure the stage remains within tolerance.
b) Correct. The recommendation of stage tolerances is done while planning the stage in the Managing a Stage Boundary process.
c) Incorrect. The Project Manager will report progress to the Project Board using Highlight Reports.
d) Incorrect. The Project Manager will assign work to be done in Work Packages
55 Which is a true statement regarding stages?
Progress practice
Correct Answer: B Objective: – Understand the concept of management stages and the difference between management and technical stages.
a) Incorrect. PRINCE2 mandates a minimum of two management stages, initiation and the rest of the project.
b) Correct. A technical stage can span over more than one management stage.
c) Incorrect. Management stages do NOT overlap, technical stages do.
d) Incorrect. Management stages and technical stages can be scheduled to coincide, but this is NOT true of all stages
56 Which is a purpose of the Risk Management Approach?
Risk practice
Correct Answer: A Objective: – Understand the purpose of the Risk Management Approach.
a) Correct. The Risk Management Approach describes the specific risk management techniques and standards to be applied, and the responsibilities for achieving an effective risk management procedure.
b) Incorrect. Exposure to risk is summarized in the risk profile. This procedure is defined in the Risk Management Approach.
c) Incorrect. The Risk Management Approach defines the different categories of risk responses which can be used to identify suitable actions for each risk. It does NOT define the specific response actions appropriate for each risk.
d) Incorrect. Risk owners are identified and recorded in the Risk Register
57 Which role can the Project Manager also perform?
Organizing practice
Correct Answer: C Objective: – Understand the responsibilities and characteristics of the role of the Project Manager.
a) Incorrect. The Project Manager CANNOT perform the role of the Executive, the two roles must be independent.
b) Incorrect. The Project Assurance role CANNOT be delegated to the Project Manager, the roles must remain independent. The Project Assurance role is owned by the Project Board members and can be delegated by them but NOT to the Project Manager.
c) Correct. The Change Authority role can be delegated by the Project Board to the Project Manager.
d) Incorrect. The Senior User role can be combined with the Executive role but CANNOT be performed by the Project Manager, the Project Manager and any Project Board role are always separate
58 What are the three recommended types of issue?
Issues practice
Correct Answer: B Objective: – Recall the three types of issue.
a) Incorrect. A concession is an off-specification which has been accepted without corrective action.
b) Correct. Each of these is a type of issue.
c) Incorrect. An Issue Report contains the description, impact assessment and recommendations for a request for change, off-specification or a problem/concern. It is only created for those issues that need to be handled formally.
d) Incorrect. An Issue Report contains the description, impact assessment and recommendations for a request for change, off-specification or a problem/concern. It is only created for those issues that need to be handled formally. A risk is NOT a type of issue.
59 Which of the following is established within the Initiating a Project process?
Initiating a Project Process
Correct Answer: B Objective: – Understand the objectives of the Initiating a Project process.
a) Incorrect. The available project approaches are evaluated in the Starting up a Project process.
b) Correct. An objective of the Initiating a Project process is to ensure that there is common understanding of who needs information, in what format, and at what time.
c) Incorrect. The Project Brief is developed in the Starting up a Project process NOT the Initiating a Project process.
d) Incorrect. A focus of the Initiating a Project process is to understand and put strategies in place to manage constraints, NOT to remove them.
60 What term is used to describe when a risk might occur?
Risk Theme
Correct Answer: B Objective: – Understand the probability, impact and proximity of a risk.
a) Incorrect. The impact of each risk is measured in terms of the project objectives. The impact identifies what the outcome would be if the risk occurs.
b) Correct. The point in time, or within the project, when the risks might materialize.
c) Incorrect. The likelihood of the risk occurring – is it highly likely or NOT very likely.
d) Incorrect. This activity assesses the net effect of all the identified risks on a project when aggregated together.
61 Within what process are Team Plans produced?
Managing Product Delivery Process
Correct Answer: D Objective: – Understand the context of the Managing Product Delivery process.
a) Incorrect. Team Plans are produced by the Team Manager during the Managing a Product Delivery process.
b) Incorrect. Team Plans are produced by the Team Manager during the Managing a Product Delivery process.
c) Incorrect. Team Plans are produced by the Team Manager during the Managing a Product Delivery process.
d) Correct. Team Plans are produced by the Team Manager during the Managing a Product Delivery process
62 Identify the missing words in the following sentence.
If a Project Manager has the appropriate specialist skills and knowledge, they may also perform the role of [ ? ] on the project.
Organizing practice
Correct Answer: B Objective: – Understand the role of the Team Manager.
a) Incorrect. The Project Manager CANNOT take on the role of Senior Supplier. This would prove to be a conflict of interests. Supplier assurance must remain independent of/CANNOT be delegated to the Project Manager.
b) Correct. The appointment of separate Team Managers is optional. If the Project Manager has the appropriate knowledge, coverage, etc., they may manage the teams directly.
c) Incorrect. Project Assurance is the responsibility of the Project Board and must remain independent of/CANNOT be delegated to the Project Manager.
d) Incorrect. The Project Manager CANNOT take on the role of Senior User. This would prove to be a conflict of interests. User assurance must remain independent of/CANNOT be delegated to the Project Manage
63 Which statement is true for project stakeholders?
Organizing practice
Correct Answer: A Objective: – Understand what a stakeholder is.
a) Correct. Project Board members are stakeholders. Those with a role on the Project Board will have an interest in, and influence over the project. Project Board members are decision-makers representing stakeholders, i.e. business, user and supplier interests.
b) Incorrect. Stakeholders are both internal and external to the corporate organization. Primary stakeholders are represented on the Project Board, others are external to the project management team.
c) Incorrect. Corporate and/or programme management are stakeholders within a project but do NOT sit within the project management team structure.
d) Incorrect. Project Board members are stakeholders. Those with a role on the Project Board will have an interest in, and influence over the project. Project Board members are decision-makers representing stakeholders, i.e. business, user and supplier interests
64 Which of the following is funded from a risk budget?
Risk practice
Correct Answer: C Objective: – Understand the purpose of a risk budget.
a) Incorrect. These would be funded by a change budget, NOT the risk budget.
b) Incorrect. This would be funded from any cost tolerance.
c) Correct. The risk budget is set aside to fund specific management responses to the project’s threats and opportunities.
d) Incorrect. The use of a risk budget is defined within the Risk Management Approach during the Initiating a Project process
65 Which is NOT an objective of the Controlling a Stage process?
Controlling a Stage Process
Correct Answer: A Objective: – Understand the objectives of the Controlling a Stage process.
a) Correct. The Stage Plan is produced in the Managing a Stage Boundary process, towards the end of a stage, and is NOT an objective of the Controlling a Stage process.
b) Incorrect. Any movement away from the direction and products agreed at the start of the stage is monitored to avoid uncontrolled change (‘scope creep’) and a loss of focus.
c) Incorrect. The project management team is focused on delivery within the tolerances laid down. The stage should NOT exceed the tolerances agreed with the Project Board.
d) Incorrect. Throughout a stage, the project management team should be watching for, assessing and dealing with issues and risks
66 Which of the following describes an output?
Business Case practice
Correct Answer: A Objective: – Recall the definition of a project output, an outcome, a benefit and a dis-benefit.
a) Correct. This is an output – a specialist product (whether tangible or intangible).
b) Incorrect. This is an outcome.
c) Incorrect. This is a benefit.
d) Incorrect. This is dis-benefit.
67 Which is a purpose of the Quality practice?
Quality practice
Correct Answer: A Objective: – Understand the purpose of the Quality practice.
a) Correct. The Quality practice defines the PRINCE2 approach to ensuring that the project’s products meet business expectations.
b) Incorrect. This is covered by the Change practice.
c) Incorrect. This is covered by the Business Case practice.
d) Incorrect. This is a purpose of the Progress practice
68 Which factor should influence the length of a management stage?
Progress practice
Answer: B Objective: – Understand the factors to consider in identifying management stages.
a) Incorrect. The frequency of Highlight Reports will be considered when planning each stage. It is NOT an influence when deciding on the duration of a stage.
b) Correct. Stage breaks can be inserted at key points when risks to the project can be reviewed before major commitments of money or resources.
c) Incorrect. Management stages will be set according to the confidence of the Project Board and Project Manager in proceeding. Management stages are NOT set according to the availability of the Project Board.
d) Incorrect. Technical stages are typified by the use of a particular set of specialist skills. Management stages equate to commitment of resources and authority to spend
69 After the first stage, when are the Stage Plans for further stages produced?
Managing a Stage Boundary Process
Correct Answer: A Objective: – Understand the context of the Managing a Stage Boundary process.
a) Correct. The Stage Plan for the next stage should be planned near the end of the current stage when managing a stage boundary.
b) Incorrect. The Stage Plan for the next stage should be planned near the end of the current stage when managing a stage boundary, so that it can be approved by the Project Board and the next stage can commence.
c) Incorrect. The Project Plan is produced in the Initiating a Project process.
d) Incorrect. The plan for the second stage of a project may be produced towards the end of initiation, but this is NOT when Stage Plans for further stages are produced
70 What is a risk cause?
Risk practice
Correct Answer: D Objective: – Understand the difference between cause, event and effect when expressing a risk.
a) Incorrect. This is describing a risk effect. The risk effect should describe the impact (s) that the risk would have on the project objectives should the risk materialize.
b) Incorrect. This is describing a risk event. The risk event should describe the area of uncertainty in terms of the threat or the opportunity.
c) Incorrect. This is describing a risk effect. The risk effect should describe the impact (s) that the risk would have on the project objectives should the risk materialize.
d) Correct. This is describing a risk cause. The risk cause should describe the source of the risk, i.e. the situation that gives rise to the risk. These are often referred to as risk drivers.
71 Which product is a time-driven control?
Progress practice
Correct Answer: C Objective: – Understand the difference between event-driven and time-driven controls.
a) Incorrect. The end of a stage is NOT a periodic control, i.e. it does NOT occur weekly or monthly.
b) Incorrect. Exception situations are NOT a periodic control, i.e. you CANNOT plan for them.
c) Correct. Time-driven controls take place at predefined periodic intervals. The frequency and format of the Checkpoint Reports will be agreed in the Work Package.
d) Incorrect. Produced at the end of a stage and the end of the project, these are NOT periodic controls, i.e. it does NOT occur weekly or monthly
72 Which is a purpose of the Project Product Description?
Quality practice
Correct Answer: B Objective: – Understand the purpose of a Project Product Description.
a) Incorrect. This is a purpose of the Quality Management Approach.
b) Correct. A purpose of the Project Product Description is to define what the project must deliver in order to gain customer acceptance.
c) Incorrect. This is the purpose of the Project Plan.
d) Incorrect. The Project Manager’s responsibilities are defined by the Executive in the Starting up a Project process and they are NOT documented in the Project Product Description
73 Which is a purpose of the Change Authority?
Organizing practice
Correct Answer: C Objective: – Understand the role of a Change Authority.
a) Incorrect. If there is to be a change budget, this will be determined by the Project Board, as part of the overall project budget.
b) Incorrect. This is the role of the Project Manager, NOT the Change Authority.
c) Correct. Within the limits of authority set by the Project Board, changes can be approved by the Change Authority without the need for escalation.
d) Incorrect. The Change Authority deals with requests for change and off-specifications, NOT risks. There should be a limit to the delegated authority in terms of the characteristics of changes which can be approved by the Change Authority
74 To which role does a Team Manager report an exception situation?
Progress practice
Correct Answer: A Objective: – Recall the lines of authority and reporting between the four levels of management.
a) Correct. The Team Manager has control for a Work Package, within the Work Package tolerances agreed with the Project Manager. During execution of the Work Package, if any forecasts indicate that it is likely to exceed the agreed tolerances, then the deviation should be referred to the Project Manager by the Team Manager in order to get a decision on corrective action.
b) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to the Project Manager via an issue. See rationale A.
c) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to the Project Manager via an issue. See rationale A.
d) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to the Project Manager via an issue. See rationale A.
Will I Receive a Certificate After Completing the Exam Simulator Package?
Although using the exam simulator package is an excellent way to prepare for your certification exam, it does not culminate in an official certificate of completion. Only select eLearning courses are eligible for certification upon completion.
Here’s a breakdown of what to expect:
Exam Simulator Purpose: Designed to enhance your preparation and readiness for specific exams through practice and repetition.
Certification: Certificates are reserved exclusively for comprehensive eLearning courses where the full curriculum is completed.
If your goal is to earn a certificate, consider enrolling in a formal eLearning course that offers one upon completion. This way, you’ll be recognized for your efforts with an official credential.
PRINCE2® 7 Foundation and Practitioner


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What Does the Masterclass Cover?
The PRINCE2 Foundation examination assesses your knowledge and comprehension of the PRINCE2 project management methodology as detailed in the syllabus. The PRINCE2 Practitioner examination, on the other hand, gauges your ability to apply and tailor the PRINCE2 method. Candidates who pass the Practitioner exam should be able to start implementing the method on an actual project with some guidance. However, their effectiveness may differ based on their experience in project management, the complexity of the project, and the level of support they receive in their work environment.

