1) What is the first step in the recommended risk management procedure?

3.5.4
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A. Incorrect. If the risk has not been identified, it cannot be assessed. ‘Assess’ is the second step. Ref 10.3.2, fig 10.1 B. Correct. The risk must first be identified before it can be assessed, and responses planned and then implemented. Ref 10.3.2, fig 10.1 C. Incorrect. If the risk has not been identified, it cannot be assessed. Therefore, responses cannot be planned or implemented. ‘Implement’ is the fourth step. Ref 10.3.2, fig 10.1 D. Incorrect. If the risk has not been identified, it cannot be assessed. Therefore, responses cannot be planned or implemented. ‘Plan’ is the third step. Ref 10.3.2, fig 10.1

2) Which statements about a project's stakeholders are CORRECT?

1. A stakeholder is anyone who thinks they will be affected by a project.
2. Stakeholders require equal amounts of engagement by the project management team.
3. Stakeholders remain unchanged throughout the project.
4. A stakeholder may be internal or external to the corporate organization.

3.2.4a
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D. Correct. (1) There are likely to be individuals or groups who are not part of the project management team, but who may need to interact with the project or who may be affected by the project’s outcome. Ref 7.1, 7.2.2, 7.3.9 (4) The communication management approach contains a description of the means and frequency of communication to parties both internal and external to the project. Ref 7.1, 7.2.2, 7.3.9 A, C, D. Incorrect. (2) It is important to analyze who the stakeholders are and to engage with them appropriately. Ref 7.1, 7.3.9 (3) It is important to review and possibly update the communication management approach at each stage boundary to ensure that it still includes all the key stakeholders. Ref 7.1, 7.2.2, 7.3.9

3) Identify the missing word in the following sentence.

A purpose of the [ ? ] theme is to control any unacceptable deviations from the project's objectives.

3.7.1a
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A. Incorrect. The purpose of the change theme is to identify, assess and control any potential and approved changes to the baseline. Ref 11.1 B. Incorrect. The purpose of the plans theme is to facilitate communication and control by defining the means of delivering the products. Ref 9.1 C. Correct. A purpose of the progress theme is to provide mechanisms to monitor progress against the allowed tolerances, and the controls to escalate to the next level should any forecast suggest that one or more tolerances will be exceeded. Ref 12.1 D. Incorrect. The purpose of the risk theme is to identify, assess and control uncertainty. Ref 10.1

4) Which is a minimum requirement for applying the organization theme?

3.2.2
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A. Incorrect. A team manager must not be assigned a project assurance role. Therefore, defining the project assurance role of team managers is not a minimum requirement for applying the organization theme. Ref 7.2, 7.3.1, 7.2.1.10 B. Incorrect. Combining roles is permissible, but not a minimum requirement for applying the organization theme. Ref 7.2, 7.2.1.1, 7.2.1.10 C. Incorrect. Within a programme environment appointing a business change manager as senior user is permissible, but not a minimum requirement for applying the organization theme. Ref 7.2, 7.3.3 D. Correct. To be following PRINCE2, a project must, as a minimum, define its approach to communicating and engaging with stakeholders. Ref 7.2

5) What is defined when deciding how to tailor PRINCE2 to suit the project?

2.1g
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A. Correct. The purpose of tailoring is to ensure that project controls are appropriate to the project’s scale, complexity, importance, team capability and risk (e.g. the reporting and reviewing frequency and formality). Ref 3.7 B. Incorrect. The ‘manage by exception’ principle sets tolerances against six objectives. These six areas are not tailored. Ref 3.5, 4.3.1 C. Incorrect. The 'defined roles and responsibilities' principle defines that all three primary stakeholder interests need to be represented; business, user and supplier. These three interests are not tailored. Ref 3.3, 4.3.1 D. Incorrect. In PRINCE2, projects deliver outputs in the form of products. Tailoring is not on the specialist products but on the project management method and project controls. Ref 3.7, 6.1

6) Which statement about the 'continued business justification' principle is CORRECT?

2.1a
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A. Incorrect. The business justification for a project, compulsory or not, must be documented and approved. Ref 3.1 B. Incorrect. Although the justification should remain valid, it may change. Ref 3.1 C. Incorrect. The format and formality of documentation may vary depending on need and circumstance. Ref 3.1 D. Correct. Even compulsory projects should be supported by business justification, even if only to demonstrate that the chosen option represents value for money. Ref 3.1

7) Which regular report provides the project board with a summary of stage status?

3.7.1b
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A. Incorrect. The lessons report is used to pass on any lessons that can be usefully applied to other projects. Ref 19.4.4, A.15.1 B. Incorrect. The purpose of the product status account is to provide information about the state of the products within defined limits. Ref 11.1, A.18.1 C. Correct. A highlight report is used to provide the project board with a summary of the stage status at intervals it has defined. The project board uses the report to monitor stage and project progress. Ref 12.2.2.4, A.11.1 D. Incorrect. A checkpoint report is used by a team manager to report the status of a work package to the project manager. Ref 12.2.2.4, A.4.1

8) Which statement about the project support role is CORRECT?

3.2.3i
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A. Correct. The project manager performs the project support role unless this is delegated to another person/other people. Ref 7.2.1.9 B. Incorrect. The project support role is not an optional role for a PRINCE2 project. It must either be performed by the project manager or be delegated by the project manager. Ref 7.2.1.9 C. Incorrect. The team manager produces checkpoint reports, not project support. Ref 7.2.1.8, 7.2.1.9, tab 12.2 D. Incorrect. Project support cannot be combined with the project assurance role. The two roles should be separate in order to maintain the independence of project assurance. Ref 7.2.1.10

9) What must be produced, as a minimum requirement for applying the plans theme?

3.4.2
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A. Correct. PRINCE2 requires that four products are produced and maintained. This includes the product breakdown structure: a hierarchy of all the products to be produced during a plan. Ref 9.2 B. Incorrect. It is the issue register that captures and maintains information issues that are being managed formally. It is not a minimum requirement for applying the plans theme. Ref 9.2, 11.4.1 C. Incorrect. It is the product flow diagram that provides a diagram showing the sequence of production and interdependencies of the planned products. Product flow diagrams are recommended but not required. Ref 9.2, 9.3.1.2 D. Incorrect. It is the risk register which provides record of identified risks relating to the plan, including their status and history. It is not a minimum requirement for applying the plans theme. Ref 9.2, 10.2

10) Which is a purpose of a project brief?

4.1h
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A. Incorrect. It is the purpose of the lessons log to capture lessons from previous projects. Ref A.14.1 B. Correct. An agreed project brief ensures that the project has a commonly understood and well-defined start point. Ref A.19.1, 14.4.5 C. Incorrect. The detailed business case is produced in the 'initiating a project' process and the project brief is produced earlier in the 'starting up a project' process. Ref 16.4.8, 14.4.5 D. Incorrect. A quality management approach is used to define the quality techniques and standards to be applied, and the various responsibilities for achieving the required quality levels during the project. Ref A.22.1

11) Which is an objective of the 'managing product delivery' process?

4.2e
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A. Incorrect. Completed work packages are signed-off in the 'controlling a stage' process. Ref 17.4 B. Incorrect. It is an objective of the 'controlling a stage' process is to ensure that the business case is kept under review. The business case is not reviewed within the 'managing product delivery' process. Ref 17.2, 18.2 C. Incorrect. Progress is reported to the project board by the project manager, via highlight reports, within the 'controlling a stage' process. The team manager would report progress to the project manager, via checkpoint reports, within the 'managing product delivery' process. Ref 17.4, 18.2 D. Correct. It is an objective of the 'managing product delivery' process to ensure that work on products allocated to the team is authorized and agreed. Ref 18.2

12) In which process are team plans produced?

4.3e
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A. Incorrect. Team plans are not produced by the team manager during the 'initiating a project’ process. Ref 18.3 B. Incorrect. Team plans are not produced by the team manager during the 'controlling a stage’ process. Ref 18.3 C. Incorrect. Team plans are not produced by the team manager during the 'managing a stage boundary’ process. Ref 18.3 D. Correct. Team plans are produced by the team manager during the 'managing product delivery' process. Ref 18.3

13) How is the 'learn from experience' principle applied?

2.1b
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A. Correct. When starting a project, previous or similar projects should be reviewed to see if lessons could be applied. Ref 3.2 B. Incorrect. A PRINCE2 project applies the principle 'focus on products'. It focuses on the definition and delivery of products, in particular the quality requirements. Ref 3.6 C. Incorrect. A PRINCE2 project applies the principle ‘manage by exception’. It has defined tolerances for project objectives, in order to establish limits of delegated authority. Ref 3.5 D. Incorrect. A PRINCE2 project applies the principle 'manage by stages' principle. The project board delegates the authority for day-to-day control of a management stage, within agreed tolerances, to the project manager. Ref 3.4

14) Which product is a time-driven control?

3.7.3a
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A. Incorrect. The end of a stage is not a time-driven (periodic) control. For example, it does not occur weekly or monthly. Ref 12.2.2 B. Incorrect. Exception situations are not a time-driven (periodic) control. You cannot plan for them. Ref 12.2.2 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. Ref 12.2.2 D. Incorrect. Lessons reports are usually produced at the end of a stage and the end of the project. These are not time-driven (periodic) controls, for example, they are not produced monthly, or weekly. Ref 12.2.2, 12.2.2.3

15) When should the project board request a decision from corporate, programme management or customer?

3.7.3b
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A. Incorrect. It is a project board responsibility to approve resources for the stage. Ref tab 7.1 B. Correct. The project board should refer to corporate, programme management or customer if project level tolerance is forecast to be exceeded because this tolerance is set by corporate, programme management or customer. Ref 12.2.1 C. Incorrect. The executive is responsible for a change in senior user or supplier. This does not require higher level approval. Ref tab 7.1 D. Incorrect. Approval of a request for change is normally handled by the project board or the change authority. It would only be referred to corporate, programme management or customer if project tolerances would be exceeded. Ref 11.2, tab 11.2

16) Which is a reason why the 'defined roles and responsibilities' principle must be applied?

2.1c
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A. Incorrect. The fact that projects have unique outputs is a reason for the 'focus on products' principle. Ref 3.6 B. Correct. A project is typically cross-functional and agreeing roles and responsibilities ensures that the people involved know what's expected of them and what to expect of others. Ref 3.3 C. Incorrect. The need to avoid duplicated or inconsistent objectives is a reason for the 'continued business justification' principle. Ref 3.1 D. Incorrect. The need for control points is a reason for the 'manage by stages' principle. Ref 3.4

17) Which process is triggered by the project manager's request to initiate a project?

4.3b
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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. Ref 14.1 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. Ref 16.3 C. Correct. Only the project board can authorize project initiation, and its activities are covered in the 'directing a project' process. Ref 15.3 D. Incorrect. The 'managing a stage boundary' process prepares information, in order to request authorization of the next stage from the project board. Ref 19.1

18) Which is an objective of the 'starting up a project' process?

4.2a
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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 assumptions. Ref 14.2 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. Ref 14.4.3 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. Ref 16.4.7, 15.4.2 D. Incorrect. The project initiation documentation is prepared in the 'initiating a project' process. Ref 16.4.9

19) Which principle is being applied when a project product description is produced?

2.1f
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A. Incorrect. The 'continued business justification' principle is applied through regular planned reviews of the business case during the life of the project to confirm its continued viability. Ref 3.1 B. Correct. Producing the project product description applies the 'focus on products' principle by clearly defining the project's product, the customer's quality expectations and acceptance criteria. Ref 3.6, A.21.1 C. Incorrect. The 'learn from experience' principle is applied to ensure that project teams learn from previous experience: lessons are sought, recorded and acted upon throughout the life of the project. Ref 3.2 D. Incorrect. Applying the 'manage by stages' principle enables the extent of senior management control over projects to be varied according to the business priority, risk and complexity involved. Ref 3.4

20) Which is a minimum requirement for applying the risk theme?

3.5.2
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A. Incorrect. A risk breakdown structure is a risk management technique. It is not a minimum requirement for applying the risk theme. Ref 10.4.1.2, 10.2 B. Incorrect. It might be appropriate to identify an explicit risk budget within the project budget; however, this is not a minimum requirement for applying the risk theme. Ref 10.3.7, 10.2 C. Correct. PRINCE2 requires that a risk register is used to capture all identified threats and opportunities. Ref 10.2 D. Incorrect. A risk checklist is a risk management technique. It is not a minimum requirement for applying the risk theme. Ref 10.4.1.2, 10.2

21) Which statements apply to a stage plan?

3.4.1b
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B. Correct. (2) A stage plan is created towards the end of the preceding stage as part of the 'managing a stage boundary' process. It is produced close to the time when the planned events will take place. Ref 9.2.1.2 (3) A stage plan is created at the level of detail needed to enable the day-to-day control by the project manager. Ref 9.2.1.2 A, C, D. Incorrect. (1) A stage plan is required for each management stage, not for the whole project. Ref 9.2.1.2 (4) The stage plan provides the basis for the project manager's control. The project board monitors against the project plan. Ref 9.2.1.2, 9.2.1.1

22) Which is a purpose of the benefits management approach?

3.1.1b
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A. Incorrect. This is a purpose of the business case. Ref A.2.1 B. Incorrect. This is the purpose of the end stage report. Ref A.9.1 C. Correct. The benefits management approach is used to cover the assessment of benefits. Ref 6.2.2, A.1.1 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. Ref 14.4.4

23) Which is assumed to be the customer's responsibility in the PRINCE2 customer/supplier environment?

1.2b
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A. Correct. It is assumed that there will be a customer who will specify the desired result and probably pay for the project. Ref 4.3.4.3 B. Incorrect. It is assumed that the suppliers will provide the resources and skills to deliver the desired result, not the customer. Ref 4.3.4.3 C. Incorrect. This is a supplier responsibility, not the responsibility of the customer. Ref 7.2.1.4 D. Incorrect. This is a supplier responsibility, not the responsibility of the customer. Ref 7.2.1.4

24) Which is a purpose of the risk management approach?

3.5.1b
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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. Ref A.24.1 B. Incorrect. Exposure to risk is summarized in the risk profile. This procedure is defined in the risk management approach. Ref A.24.2 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. Ref A.24.2 D. Incorrect. Risk owners are identified and recorded in the risk register. Ref A.25.2

25) Which management product should always be updated when a product fails its quality check?

3.3.1b
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A. Incorrect. This event has already happened. There is no uncertainty about its occurrence, therefore it is not a risk. Ref 10.1, A.25.1 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. Ref 8.2, A.23.1 C. Correct. The quality register records the results of all quality management activities. Ref 8.2, A.23.1 D. Incorrect. There may be lessons to be learned, but this is not always the case. The product that should always be updated with the result of the quality activities is the quality register. Ref 8.2, 12.2.2.3, A14.1, A.23.1

26) Identify the missing words in the following sentence.

The purpose of the [ ? ] process is to establish solid foundations for the project.

4.1c
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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. Ref 16.1 B. Incorrect. The purpose of the 'managing product delivery' process is to control the link between the project manager and team manager(s). Ref 18.1 C. Incorrect. The purpose of the 'directing a project’ process is to enable the project board to be accountable for the project's success. The project board does this by making key decisions and exercising overall control while delegating day-to-day management of the project to the project manager. Ref 15.1 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. Ref 19.1

27) Which two statements about tailoring are CORRECT?

1. Processes can be simplified or carried out in more detail.
2. Terminology can be changed to suit organizational standards.
3. Themes that are not relevant to the project can be excluded.
4. Project management team members can carry out any combination of roles.

2.2
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A. Correct. (1) Processes can be combined or adapted. Ref 4.3.1 (2) Terminology can be changed to suit other standards or policies. Ref 4.3.1 B, C, D. Incorrect. (3) All the themes must be applied in a project; however, they should be tailored according to the complexity of the project. Ref 5.1 (4) Some project roles cannot be shared or combined, such as the project manager and the executive. Ref 7.2.1.10

28) Which type of issue should be raised if a new product is required after a team has started work?

3.6.3a
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A. Correct. The product description should have been baselined before work began. Therefore, this is a request for change to a baselined product. Ref tab 11.1 B. Incorrect. An off-specification is something that should be provided by the project, but currently is not (or is forecast not to be). It might be a missing product or a product not meeting its specifications. Ref tab 11.1 C. Incorrect. A problem, or concern, is a type of issue (other than a request for change or off-specification) that the project manager needs to resolve or escalate. Ref tab 11.1 D. Incorrect. A concern, or problem, is a type of issue (other than a request for change or off-specification) that the project manager needs to resolve or escalate. Ref tab 11.1

29) Which characteristic distinguishes a project from regular business operations?

1.1a
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A. Incorrect. Both projects and business as usual may produce benefits. This is not one of the characteristics that make projects different. Ref 2.1 B. Correct. Projects are the means by which we introduce business change. When the change is implemented, business as usual resumes (in its new form). Ref 2.1 C. Incorrect. Both projects and business as usual involve managing stakeholders. This is not one of the characteristics that make projects different. Ref 2.1 D. Incorrect. Both projects and business as usual incur costs. This is not one of the characteristics that make projects different. Ref 2.1

30) Which process is used by a team manager to coordinate work on one or more of the project's products?

4.1e
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A. Incorrect. The purpose of the 'initiating a project' process is to enable the organization to understand the work that needs to be done to deliver the project’s products before committing to a significant spend. The 'managing product delivery' process enables the team manager(s) is to coordinate an area of work that will deliver one or more of the project’s products. Ref 16.1, 18.1 B. Incorrect. The purpose of the 'controlling a stage' process is to assign work to be done. The 'managing product delivery' process enables the team manager(s) to coordinate an area of work that will deliver one or more of the project’s products. Ref 17.1, 18.1 C. Incorrect. The purpose of the 'managing a stage boundary' process is to plan the work of the next stage. The 'managing product delivery' process enables the team manager(s) is to coordinate an area of work that will deliver one or more of the project’s products. Ref 19.1, 18.1 D. Correct. The 'managing product delivery' process enables the team manager(s) to coordinate an area of work that will deliver one or more of the project’s products. Ref 18.1

31) Who does the senior user represent when making decisions?

3.2.3c
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A. Incorrect. The senior supplier represents the designers of the project's products. Ref 7.2.1.4 B. Incorrect. The senior user is appointed by the executive to represent the user needs and does not make decisions on behalf of corporate management. Ref 7.2.1.3 C. Incorrect. The senior supplier represents the project development teams. Ref 7.2.1.4 D. Correct. The senior user makes decisions on behalf of those who will benefit from the use of the project’s products. Ref 7.2.1.3

32) What is an output?

3.1.3
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A. Correct. This is an output - a specialist product that is handed over to a user (or users). Note that management products are not outputs but are created solely for the purpose of managing the project. Ref glossary, 6.1 B. Incorrect. This is an outcome - the result of change, normally affecting real-world behaviour and/or circumstances. Outcomes are desired when a change is conceived. They are achieved as a result of the activities undertaken to effect the change. Ref glossary, 6.1 C. Incorrect. This is a benefit - the measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders. Ref glossary, 6.1 D. Incorrect. This is a dis-benefit - a measurable decline resulting from an outcome perceived as negative by one or more stakeholders, which reduces one or more organizational objective(s). Ref glossary, 6.1

33) What is established within the 'initiating a project' process?

4.2c
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A. Incorrect. The available project approaches are evaluated in the 'starting up a project' process. Ref 14.2, 14.4.5 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. Ref 16.2, 16.4.5 C. Incorrect. The project brief is developed in the 'starting up a project' process not the 'initiating a project' process. Ref 14.2 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. Ref 16.2

34) Which roles CANNOT be combined with the role of project assurance?

1. Project manager.
2. Project support.
3. Senior user.
4. Executive.

3.2.3e
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A. Correct. (1) Project assurance must be independent of the project manager. Ref 7.2.1.10, tab 6.1 (2) Project assurance must be independent of project support. Ref 7.2.1.10, tab 7.1 B, C, D. Incorrect. (3) Project assurance is a responsibility of the project board. The senior user is a member of the project board. Ref 7.2.1.3, tab 6.1 (4) Project assurance is a responsibility of the project board. The executive is a member of the project board. Ref 7.2.1.2, fig 5.4 tab 7.1

35) What must the project board do, as a minimum requirement for applying the change theme?

3.6.2
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A. Incorrect. Unless the anticipated level of change on a project is low, it is advisable for a budget to be set up to pay for changes, but this is not a minimum requirement for applying the change theme. Ref 11.2, 11.3.6 B. Incorrect. When reviewing management stage status, a product status account can be requested. However, this is not a minimum requirement for applying the change theme. Ref 17.4.4, 11.2 C. Correct. To be following PRINCE2, a project must, as a minimum, define the roles and responsibilities for change control, including a defined change authority. Ref 11.2 D. Incorrect. There is no minimum requirement to agree acceptable corrective actions. Ref 11.2

36) Which statement describes a threat to a project?

3.5.3a
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A. Correct. A threat may have a negative impact on the project objectives. Ref 10.1 B. Incorrect. Events that may have favourable impacts on objectives are opportunities, not threats. Ref 10.1 C. Incorrect. Threats are future uncertain events, not something that has already occurred; these events are called issues. Ref 10.1, 11.1 D. Incorrect. Threats are future uncertain events, not something that has already occurred; these events are called issues. Ref 10.1, 11.1

37) Which aspect of project performance must be managed in order to have a clear understanding of what the project is to deliver?

1.1b
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A. Incorrect. Failure to deliver on time may affect what products can be delivered but does not affect the understanding of what the project is to deliver. Ref 2.3 B. Correct. Clear agreement on scope will avoid users and suppliers making incorrect assumptions about what is to be delivered. Ref 2.3 C. Incorrect. Risk is one of the six aspects but does not affect understanding of the deliverables required. Ref 2.3 D. Incorrect. Project costs need to be managed to avoid overspending, but this will not clarify understanding of what the project is to deliver. Ref 2.3

38) Which is one of the four integrated elements within PRINCE2?

1.1d
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A. Incorrect. Quality is an aspect of project performance that needs to be managed. The integrated elements are the principles, themes, processes and the project environment. Ref 1.1 B. Incorrect. Role descriptions help to agree and communicate project management team roles and responsibilities. The integrated elements are the principles, themes, processes and the project environment. Ref 1.1 C. Correct. The integrated elements are the principles, themes, processes and the project environment. Ref 1.1 D. Incorrect. Product descriptions support the focus on products but the integrated elements are the principles, themes, processes and the project environment. Ref 1.1

39) What should be provided by corporate, programme management or customer before the 'starting up a project' process commences?

4.3a
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A. Incorrect. The project mandate is refined to produce a project brief. Corporate, programme management or customer provides a project mandate, but the assembly of a project brief is the responsibility of the project management team. Ref 16.4.9 B. Correct. The project mandate, provided by corporate, programme management or customer, should include sufficient information to identify at least the prospective executive of the project board. Ref 14.3 C. Incorrect. The project initiation documentation is developed by the project management team during the 'initiating a project' process. Ref 16.4.9 D. Incorrect. The project board provides the authority to initiate a project after it has reviewed and is satisfied with the outputs from the 'starting up a project' process. Ref 15.4.1

40) How is the 'manage by exception' principle applied?

2.1e
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A. Incorrect. To apply the ‘manage by stages’ principle, a project must have at least two management stages. Ref 3.4 B. Correct. Accountability is established by setting up controls so that if tolerances are forecast to be exceeded, the next higher management layer can be consulted and decide how to proceed. Ref 3.4 C. Incorrect. By applying the 'continued business justification' principle, project management can ensure that the project is desirable, viable and achievable. Ref 3.1 D. Incorrect. By applying the 'learn from experience' principle, lessons can be found that can be applied in the project. Ref 3.2

41) Which is a responsibility of the managing level within the project management team?

3.2.3g
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A. Incorrect. This is a corporate level responsibility. Ref 7.1, fig 7.2 B. Incorrect. This is a project board (directing level) responsibility and not a managing (project manager) responsibility. Ref 7.1, fig 7.2 C. Correct. The managing layer of the project is the project manager, and the project manager has to ensure that the project produces the required products in accordance with the tolerance levels set by the project board. Ref 7.1, fig 7.2 D. Incorrect. This is an executive (directing level) responsibility. Ref 7.1, fig 7.2

42) What is a risk cause?

3.5.3d
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A. Incorrect. This is describing a risk effect. The risk effect is the impact(s) that the risk would have on the project objectives if the risk materializes. Ref 10.4.1.2 B. Incorrect. This is describing a risk event. The risk event is the area of uncertainty in terms of the threat or the opportunity. Ref 10.4.1.2 C. Incorrect. This is describing a risk effect. The risk effect is the impact(s) that the risk would have on the project objectives if the risk materializes. Ref 10.4.1.2 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. Ref 10.4.1.2

43) Which is a purpose of the 'closing a project' process?

4.1g
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A. Incorrect. The 'closing a project' process is carried out within the final stage of the project. The notification to the project board that the final (or any) stage is about to start comes from the 'managing a stage boundary' process. Ref 19.4 B. Correct. A purpose of the ‘closing a project’ process is to provide a fixed point at which acceptance of the project product is confirmed. Ref 20.1 C. Incorrect. A purpose of the ‘managing a stage boundary’ process is to provide the project board with sufficient information to confirm continued business justification for the project. Ref 19.1 D. Incorrect. The handover procedures for the project's products are defined in the 'initiating a project' process as part of defining the change control approach. Ref 11.2, A.3, 20.4.3

44) Which is a benefit of applying the 'manage by stages' principle?

2.1d
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A. Incorrect. Understanding delegated authority and established tolerances is a benefit of applying the 'manage by exception' principle. Ref 3.5 B. Incorrect. Understanding the customer's expectations and acceptance criteria is a benefit of applying the 'focus on products' principle. Ref 3.6 C. Correct. The 'manage by stages' principle provides review and decision points, so the project board can assess the viability of the project. Ref 3.4 D. Incorrect. The business, user and supplier stakeholders being represented on the project is a benefit of applying the ‘defined roles and responsibilities’ principle. Ref 3.3

45) Which is a benefit of using PRINCE2?

1.2a
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A. Correct. PRINCE2 is based on established and proven best practice and governance for project management. Ref 1 B. Incorrect. There are many proven planning and control techniques that can be used in support of the PRINCE2 themes, for example, critical path analysis (in planning) and earned value analysis (in progress control). Some techniques are described within the guidance, however alternative, equivalent techniques can be substituted, provided they meet the minimum requirements for applying the theme. Ref 1.2 C. Incorrect. Whilst it is a benefit to have a single person accountable for a project, in the case of PRINCE2, this person is the executive, not a project manager. Ref 7.2.1.2 D. Incorrect. Projects are all about change, even after the products have been baselined. 2.1

46) Which is an objective of the 'closing a project' process?

4.2g
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A. Correct. A purpose of the 'closing a project' process is to verify user acceptance of a project's products. Ref 20.2 B. Incorrect. The 'closing a project' process occurs during the final stage, which is prepared during the 'managing a stage boundary' process, as is any other stage, except for the initiation stage. Ref 20.3 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. Ref 14.4.4 D. Incorrect. It is likely that not all benefits will be achieved before the project closes. Some will be measured post-project as part of a benefits review. Ref 20.4.3

47) What must be used, as a minimum requirement for applying the progress theme?

3.7.2
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A. Correct. To be following PRINCE2, a project must, as a minimum, be managed by stages (PRINCE2’s 'manage by stages' principle). Ref 12.2 B. Incorrect. There are no reports specified in the minimum requirements for applying the progress theme. Ref 12.2 C. Incorrect. Authorization of work packages is not specified as a minimum requirement for applying the progress theme. Ref 12.2 D. Incorrect. There are no reports specified in the minimum requirements for applying the progress theme. Ref 12.2

48) What must be recorded in the quality management approach, as a minimum requirement for applying the quality theme?

3.3.2
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A. Incorrect. The particular quality tools and techniques to be used do not need to be defined as a minimum requirement for applying the quality theme, although the overall approach to quality control must be defined. Ref 8.2 B. Incorrect. The project's approach to quality planning does not need to be defined as a minimum requirement for applying the quality theme, although the overall approach to quality control must be defined. Ref 8.2 C. Correct. To be following PRINCE2, a project must, as a minimum, define its quality management approach. This approach must minimally cover: the project’s approach to quality control; the project’s approach to project assurance; how the management of quality is communicated throughout the project lifecycle; and the roles and responsibilities for quality management. Ref 8.2 D. Incorrect. The quality records to be used do not have to be defined as a minimum requirement for applying the quality theme. However, the approach to quality control, how quality is communicated, and the roles/responsibilities related to managing quality must be defined. Ref 8.2

49) Which is a purpose of the 'directing a project' process?

4.1b
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A. Incorrect. A purpose of the ‘starting up a project’ process is to provide the information required to confirm whether it is worthwhile to initiate a project. Ref 14.1 B. Correct. A purpose of the ‘directing a project’ process is to establish the level of control required by the project board after initiation. Ref 15.1 C. Incorrect. The project controls are set up during the 'initiating a project' process. Ref 16.4.6 D. Incorrect. A purpose of the ‘managing a stage boundary’ process is to provide sufficient information to review the current stage and approve the next stage plan. Ref 19.1

50) Identify the missing words in the following sentence.

PRINCE2 requires that the business justification is formally verified by [ ? ] at stage boundaries.

3.1.2
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A. Incorrect. Corporate, programme management or customer sets the overall requirements and tolerance levels for the project but is not directly involved in its management. It is the project board that formally verifies the business justification at stage boundaries and only refers to corporate, programme management or the customer if the project is no longer justified. Ref 7.2, 12.2.4 B. Correct. In PRINCE2, the business justification is developed at the beginning of the project and reviewed and updated throughout the life of the project. It is formally verified by the project board at each key decision point, such as at stage boundaries, and is confirmed throughout the period that the benefits are realized. Ref 6.2 C. Incorrect. Project support advises on events that may impact the business case but does not formally verify it at stage boundaries. Ref tab 6.1 D. Incorrect. The project board may delegate the authority to approve responses to requests for change or off-specifications to a separate individual or group, called a change authority. They cannot delegate their responsibility for verifying the business justification at stage boundaries. Ref 7.2.1.6, 6.2

51) Which is a purpose of the organization theme?

3.2.1a
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A. Incorrect. The setting of tolerances is part of the progress theme. Ref 12.1 B. Incorrect. The purpose of the plans theme is to plans how the products will be achieved and by whom and to estimate timescales and cost. Ref 9.1, 9.1.1 C. Correct. The purpose of the organization theme is to define and establish the project's structure of accountability and responsibilities (the who?). Ref 7.1 D. Incorrect. To apply the principle 'manage by exception', targets and tolerances must be set against the six aspects of project performance to be managed. This is part of the application of the progress theme. Ref 12.1

52) Which is a purpose of the change theme?

3.6.1a
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A. Incorrect. Change is not prevented, it is controlled. Ref 11.1 B. Correct. The aim of change control is not to prevent change, it is to ensure that every change is agreed by the relevant authority before it takes place. Ref 11.1 C. Incorrect. This is a purpose of the risk theme, which is to identify, assess and control uncertainty and, thus, improve the ability of the project to succeed. Ref 11.1, 10.1, 10.4.1.2 D. Incorrect. It is a purpose of the quality theme to implement continuous improvement during the project by capturing and learning lessons. Ref 8.2

53) Identify the missing word in the following sentence.

Quality [ ? ] defines the type of quality methods the project will use.

3.3.3a
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A. Incorrect. Quality assurance may define the type of quality methods the corporate organization uses, as part of the quality management system, but quality assurance is independent from the project. It is a project responsibility, as part of quality planning, to define the type of quality methods the project will use and include this in the project's quality management approach, (although this may refer back to the corporate organization's quality management system). Ref 8.3.5, 8.1.1 B. Incorrect. Quality planning, not quality control, defines the type of quality methods the project will use. This information is included in the project's quality management approach. Ref 8.1.1 C. Correct. It is a project responsibility, as part of quality planning, to define the type of quality methods the project will use and include this in the project's quality management approach, (although this may refer back to the corporate organization's quality management system). Ref 8.1.1 D. Incorrect. Quality planning defines the type of quality methods the project will use. This information is included in the project's quality management approach. Quality tolerances are defined as part of quality planning. Ref 8.1.1

54) Which is a purpose of the 'starting up a project' process?

4.1a
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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 that the prerequisites for initiating the project are in place. Ref 14.1 B. Incorrect. The project plan is assembled in the 'initiating a project' process not the 'starting up a project' process. Ref 16.4.7 C. Incorrect. The project initiation documentation is created in the 'initiating a project' process not the 'starting up a project' process. Ref 16.4.9 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. Ref 14.4.4

55) Which statement about management stages is CORRECT?

3.4.3c
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A. Incorrect. PRINCE2 mandates at least two management stages; an initiation stage and at least one further management stage. Ref 9.2 B. Correct. There may be more than one delivery step per management stage. Ref 9.3.1.1 C. Incorrect. Delivery steps often overlap but management stages do not. Management stages equate to commitment of resources and authority to spend. Ref 9.3.1.1 D. Incorrect. The end of a management stage does not necessarily need to occur at the same time as the end of a delivery step. Ref 9.3.1.1

56) Which is a purpose of the quality theme?

3.3.1a
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A. Correct. The quality theme defines the PRINCE2 approach to ensuring that the project's products meet business expectations. Ref 8.1 B. Incorrect. This is covered by the change theme. The purpose of the change theme is to identify, assess and control any potential and approved changes to the project baselines. Ref 11.1 C. Incorrect. This is covered by the business case theme. The purpose of the business case theme is to establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable. Ref 6.1 D. Incorrect. This is a purpose of the progress theme. The purpose of the progress theme is to establish mechanisms to monitor and compare actual achievements against those planned, to provide a forecast for the project objectives and the project’s continued viability, and control any unacceptable deviations. Ref 12.1

57) Which is an objective of the 'managing a stage boundary' process?

4.2f
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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. Ref 15.4.1 B. Correct. Reviewing and, if necessary, updating the project initiation documentation (in particular the business case, project plan, project approach, strategies, project management team structure and role descriptions) is an objective of the 'managing a stage boundary' process. Ref 19.2 C. Incorrect. It is the 'managing product delivery' process that controls the link between the project manager and the teams delivering the products. Ref 18.1 D. Incorrect. Products are assessed and approved when they are completed, during the 'managing product delivery' process. These quality checks are not left until the end of the stage. Ref 18.4.2

58) Which is a task of 'defining and analyzing products'?

3.4.3b
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A. Incorrect. This is the first step in the planning procedure and is a prerequisite for planning. It is not part of 'defining and analyzing products’. Ref 9.3.1.2 B. Correct. This is a task of 'defining and analyzing products’. Ref 9.3.1.2 C. Incorrect. This is a step in the planning procedure and it is not part of 'defining and analyzing products’. Ref 9.3.1.2 D. Incorrect. This is a step in the planning procedure and it is not part of 'defining and analyzing products’. Ref 9.3.1.2

59) Which activity can take place within the 'managing a stage boundary' process?

4.3f
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A. Incorrect. Highlight reports are produced within the 'controlling a stage' process. Ref 17.4.5, 17.3, fig 17.1 B. Incorrect. The project manager can take corrective action provided the action does not exceed any of the stage tolerances, or unless authority has been given by the project board. However, this is done within the 'controlling a stage' process. Ref 17.3, fig 17.1 C. Correct. In response to an exception report, the project board may request that the current stage (and possibly the project) is re-planned. The output from re-planning is an exception plan which is produced within the 'managing a stage boundary' process. Ref 19.3, fig 19.1, 19.4.5, 9.2.1.3 D. Incorrect. Stage plans are authorized by the project board within the 'directing a project' process. Ref 15.4.3

60) What does the 'initiating a project' process provide?

4.3c
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A. Correct. The 'initiating a project' process enables the project board to decide whether the project is aligned to customer objectives. Ref 16.3 B. Incorrect. The 'directing a project' process, not the 'initiating a project' process, gives the project board the authority to approve the project. Ref 15.3 C. Incorrect. The 'controlling a stage' process, not the 'initiating a project' process, gives the project manager the authority to approve the work to be done by the teams. Ref 17.3 D. Incorrect. The 'controlling a stage' process, not the 'initiating a project' process, defines the suppliers' obligations for the delivery of the work package. Ref 17.3