1) The Chief Executive Officer (CEO) of the record company requires the cost-benefit analysis of every project to be recorded in a document called a 'project rationale'. The executive is preparing the draft 'project rationale' as part of the pre-project phase. Which principle is being applied, and why?

1.1.1a
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A. Correct. For all projects, PRINCE2 requires a justifiable reason for starting the project, which must be recorded. The format and formality of documentation may vary, depending on organizational standards, needs and circumstances. Ref 3.1 B. Incorrect. The principle being applied is 'continued business justification'. It is true that the executive may draft the outline business case, however this does not explain why 'continued business justification' is being applied in this situation. Ref 3.1, 14.4.4 C. Incorrect. The principle being applied is not 'learn from experience'. In the situation given, there is no description of a lesson having been learnt from the current project or outside. Ref 3.1, 3.2 D. Incorrect. The project should be aligned with the commissioning organization’s strategy, and the project management team members are expected to follow the guidelines set by their corporate management. However, the 'learn from experience' principle is not being applied in this situation as there is no description of a lesson having been learnt from the current project, or outside. Ref 3.1

2) During the initiation stage, the Vice President stated that attendance at launch events held on Monday evenings is low, and on previous projects this had resulted in lower album sales. As a result, the launch event for this album will be held later in the week. Which principle is being applied, and why?

1.1.1b
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A. Incorrect. The situation describes learning from the experience of a similar launch event, and is not related to the 'continued business justification' principle. The 'continued business justification' principle aims to ensure that the project remains aligned to the benefits being sought that contribute to the business objectives. Ref 3.2, 3.1 B. Incorrect. The situation describes learning from the experience of a similar launch event, and is not related to the 'continued business justification' principle. The 'continued business justification' principle aims to ensure that the project remains aligned to the benefits being sought that contribute to the business objectives. Ref 3.2, 3.1 C. Correct. When starting a project, previous or similar projects should be reviewed to see if lessons can be applied. It is the responsibility of everyone involved with the project to look for lessons rather than wait for someone else to provide them. The project manager should communicate with the events coordinator to find out more about the timing of the previous event. Ref 3.2 D. Incorrect. The project is in the initiation stage and so this is learning from experience at the start of a project, not learning as the project progresses. As the project moves into the management stages after initiation the project should continue to learn. Lessons should be included in relevant reports and reviews. The goal is to seek opportunities to implement improvements during the life of the project. Ref 3.2

3)Towards the end of stage 2, the project manager realized that not all of the ‘recorded sample songs' would be completed before the end of the stage. The project manager decided to move the remaining work to stage 3. This enabled the project manager to report that stage 2 was completed within time tolerance. Is this an appropriate application of the 'manage by stages' principle, and why?

1.1.1d
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A. Incorrect. Application of the 'manage by stages' principle provides review and decision points for the project board at defined intervals. The project manager cannot decide to move work from stage 2 to stage 3, as this is outside the project manager's delegated authority. This is also against the principle of 'manage by exception', as exceeding time tolerance for the stage must be reported. Ref 3.4, 3.5 B. Incorrect. Application of the ‘manage by stages’ principle provides review and decision points for the project board at defined intervals, rather than letting the project run on in an uncontrolled way. The project board authorizes one stage of the project at a time against a stage plan. Although the project manager has discretion to make adjustments, this would not include amending a stage baseline, such as moving work from one stage to another. Ref 3.4 C. Correct. Application of the ‘manage by stages’ principle provides review and decision points for the project board at defined intervals, rather than letting the project run on in an uncontrolled way. This is why the planned work that remains in stage 2 cannot be moved to stage 3, without the approval of an exception. Ref 3.4 D. Incorrect. Application of the ‘manage by stages’ principle provides review and decision points for the project board at defined intervals. The project board authorizes one stage of the project at a time against a stage plan. Although the project manager has discretion to make adjustments, this would not include amending a stage baseline, such as moving work from one stage to another. Delivery steps often overlap but stages cannot. Ref 3.4, 9.3.1.1

4) The executive has appointed the company's finance manager to provide business assurance, to monitor whether the album sales will exceed the production costs as the project progresses through each stage. How well does this apply the 'manage by exception' principle, and why?

1.1.1e
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A. Incorrect. PRINCE2 breaks the project down into discrete, sequential sections, called management stages, as part of the ‘manage by stages’ principle. However, this does not explain why the project assurance role is required as part of the ‘manage by exception’ principle. Ref 3.4 B. Correct. As part of the ‘manage by exception’ principle, an assurance mechanism should be put in place so that each management layer can be confident that controls are effective. Ref 3.5 C. Incorrect. As part of the ‘tailor to suit the project’ principle, roles may be combined or split, provided that accountability is maintained and there are no conflicts of interest, however this is not mandatory. Ref 4.3.1 D. Incorrect. As part of the ‘focus on products’ principle, PRINCE2 requires projects to be output-oriented rather than work-oriented. However, this does not explain why the project assurance role is required as part of the ‘manage by exception’ principle. Ref 3.6

5)The record company's finance director has asked the executive to ensure that work packages agreed with team managers are signed off by the project board before the team starts the work. Is this an appropriate application of the 'manage by stages' principle?

1.1.1d
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A. Incorrect. Although it is true that the executive needs to ensure that business investment provides value for money, it is not appropriate for work packages agreed with team managers to be signed off by the project board. It is not appropriate because it conflicts with the ‘manage by stages’ principle as the project manager should have delegated responsibility to manage the dayto-day delivery of the stages. Ref 3.4 B. Incorrect. Although it is true that the project should be divided into at least two management stages, it is not appropriate for work packages agreed with team managers to be signed off by the project board. Ref 3.4 C. Incorrect. It is not appropriate for work packages agreed with team managers to be signed off by the project board. This conflicts with the ‘manage by stages’ principle as the project manager should have delegated responsibility to manage the day-to-day delivery of the stages. Ref 3.4 D. Correct. The ‘manage by stages’ principle requires that the project board delegates the authority for day-to-day control of a management stage, within agreed tolerances, to the project manager. Requiring the project board to sign off work packages before the project board starts work breaches this principle. Ref 3.4

6)At the end of stage 2, the risk that production costs could exceed the sales for the music album is estimated to be high, as all of the cost tolerance for stage 2 has been used. As a result, the project manager has defined tight cost and time tolerances for the work packages to produce the 'artwork' and record the album during stage 3. Which principle is being applied, and why?

1.1.1e
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A. Correct. Applying the 'manage by exception' principle enables appropriate governance by defining distinct responsibilities for directing, managing and delivering the project and clearly defining accountability at each level. This is achieved by delegating authority from one management level to the next by setting tolerances for the respective level of the plan. Ref 3.5 B. Incorrect. It is true that action needs to be taken so that the production costs do not exceed the album sales. However, this does not explain why the principle being applied is 'manage by exception'. Ref 3.5 C. Incorrect. While it is true that cost tolerance should be set for each work package in a stage, this is an application of the ‘manage by exception’ principle, not the ‘manage by stages’ principle. Ref 3.5, 3.4 D. Incorrect. The ‘manage by stages’ principle ensures that key decisions are made prior to the detailed work needed to implement them. However, this relates to decisions by the project board and not the authorization of work packages by the project manager. Ref 3.5

7)The Graphic Designer appointed by the external agency is the team manager responsible for creation of the 'artwork'. Before assigning a work package to the Graphic Designer, the project manager ensured that the 'artwork' product description attached to the work package had measurable and prioritized features defined in it. Is this an appropriate application of the 'focus on products' principle, and why?

1.1.1f
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A. Correct. Applying the ‘focus on products’ principle helps a PRINCE2 project to be more product/output-oriented rather than work-oriented. An outputoriented project is one that agrees and defines the project’s products prior to undertaking the activities required to produce them, thus reducing the risk of user dissatisfaction and acceptance disputes. Ref 3.6 B. Incorrect. It is true that the team is responsible for the delivery of the product(s). However, this does not explain why the action described follows the 'focus on products' principle. The product(s) should be defined in the work package to ensure that only the work that directly contributes to the delivery of the desired product is carried out. Ref 3.6 C. Incorrect. It is an appropriate application of the ‘focus on products’ principle. Also, external team managers/members should be able to access the description documents of the products they are creating or modifying. Ref 3.6 D. Incorrect. It is true that the product description is a management product, not a specialist product. However, this does not explain why the action described follows the 'focus on products' principle. Ref 3.6

8)The Music Album Project team has identified that another department within the company is producing a similar album of the same type of music. As it is only a small company, it cannot resource two similar album projects. Which principle should have been applied more effectively to avoid this situation, and why?

1.1.1a
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A. Incorrect. It is true that a project is typically cross-functional, may involve more than one organization, and may involve a mix of full-time and part-time resources. However, it is the 'continued business justification' principle that ensures alignment with corporate strategies. Ref 3.1, 3.3 B. Incorrect. It is true that to be successful, projects must have an explicit project management team structure consisting of defined and agreed roles and responsibilities for the people involved in the project and a means for effective communication between them. However, it is the 'continued business justification' principle that ensures alignment with corporate strategies. Ref 3.1, 3.3 C. Correct. Organizations that lack rigour in business justification may find that projects proceed even where there are few real benefits or where a project has only tentative associations with corporate, programme or customer strategy. Poor alignment with corporate, programme or customer strategies can also result in organizations having a portfolio of projects that have mutually inconsistent or duplicated objectives. Ref 3.1 D. Incorrect. The ‘continued business justification’ principle requires for all projects that the justification remains valid, and is re-validated, throughout the life of the project. However, this does not explain why this principle could have assisted in avoiding a duplicate project being started. Ref 3.1

9)It was found that one of the songs approved for the album had quality issues even though a quality inspection was carried out. It was therefore decided that a further objective check of recording quality should be conducted by the studio for the songs that are yet to be approved. Is this an appropriate application of the 'learn from experience' principle, and why?

1.1.1b
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A. Correct. In this situation, the project team are learning from an experience within the project. Lessons should be sought and learning applied throughout the project lifecycle, as well as being sought and passed on at the beginning and closure of a project. Ref 3.2 B. Incorrect. It is not always necessary to carry out checks additional to a quality inspection. However, in this situation, the project team have learnt, during the project, that this is necessary. Ref 3.2, 8.3.13 C. Incorrect. Lessons are looked for, recorded and acted upon throughout the life of the project, not just at the beginning of a project. Ref 3.2 D. Incorrect. Lessons are looked for, recorded and acted upon throughout the life of the project, not just at the closure of a project. Ref 3.2

10)Use the 'Additional Information' in the Scenario Booklet to answer this question. The project's products are being delivered by both external suppliers and record company staff. A member of the recording studio staff has been appointed as a senior supplier on the project board. It has also been decided that the Vice President of the record company, who is the executive for the project, will also be a senior supplier, representing the record company. Is this an appropriate application of the 'defined roles and responsibilities' principle, and why?

1.1.1c
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A. Correct. One person can carry out more than one role, as long as that person has the capacity to undertake the combined responsibilities and there is no conflict of interest. In this situation it may be necessary to have two or more senior suppliers to represent different supplier stakeholders. The Vice President can carry out the role of executive and represent the record company, which is supplying some of the products itself. Ref 7.2.1.10, 7.2.1.4 B. Incorrect. It is an appropriate application of 'defined roles and responsibilities' principle that one person can carry out more than one role, as long as that person has the capacity to undertake the combined responsibilities and there is no conflict of interest. However, the senior user, not the senior supplier, should represent the user interest and ensure that the expected benefits (derived from the project’s outcomes) are realized. Ref 3.3, tab 6.1 C. Incorrect. It is an appropriate application of ‘defined roles and responsibilities' principle. There can be more than one senior supplier on the project board. Ref 3.3 D. Incorrect. It is an appropriate application of 'defined roles and responsibilities' principle. The executive role cannot be shared between two or more individuals, however the executive can carry out another role in addition. The Vice President of the record company supervises the production of the album and can act as senior supplier to represent the record company. Ref 3.3

11)The project manager has been recruited from a large, multi-national record company. To reduce the time spent on the initiation stage, the project manager decided to use PRINCE2 management approaches from projects at the previous company. Is this appropriate, and why?

1.1.1g
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A. Incorrect. The project manager may be learning from experience, but is not using that experience appropriately. Without tailoring to suit the project, it is unlikely that the project management effort and approach would be appropriate for the needs of the project. Ref 3.7 B. Incorrect. Cost may be reduced but the proposed course of action is contrary to the 'tailor to suit the project' principle. It is unlikely that the project management effort and approach would be appropriate for the needs of the project. Ref 3.7 C. Correct. Unless PRINCE2 is tailored to suit the project environment, size, complexity, importance, team capability and risk, it is unlikely that the project management effort and approach would be appropriate for the needs of the project. Using PRINCE2 approaches from a large multi-national record company are unlikely to be appropriate. Ref 3.7 D. Incorrect. The project should focus on specialist products, but also ensure that the project management approaches are appropriate. Without tailoring to suit the project, it is unlikely that the project management effort and approach would be appropriate for the needs of the project. Ref 3.7

12) The record company is concerned that the songs to be included on the album should be agreed before work on the 'recorded album' starts. Therefore, the project board has decided that no changes to the list of songs will be accepted after the work package has been agreed. Which principle is being applied when making this decision, and why?

1.1.1f
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A. Incorrect. The 'focus on products', not the 'continued business justification' principle, is being applied, as the project board is making sure there is a common understanding of the product required. Moreover, establishing limits of delegated authority is necessary to apply the 'manage by exception' principle. Ref 3.5, 3.6 B. Incorrect. The 'focus on products', not the 'continued business justification' principle, is being applied, as the project board is making sure there is a common understanding of the product required. This does not ensure that funds are invested in worthwhile objectives. Ref 3.6, 3.1 C. Incorrect. It is true that applying the ‘focus on products’ principle helps in delivering products to budget, however it does not ensure this. Applying other principles, primarily 'manage by exception’ ensures that budget limits are not exceeded. Ref 3.5, 3.6 D. Correct. The 'focus on products' principle is being applied, as the project board is making sure there is a common understanding of the product required. Agreeing what is to be produced reduces the risk of user dissatisfaction and acceptance disputes. Ref 3.6

13) During the 'initiating a project' process, the Vice President (VP) estimated that the Music Album Project should generate sales that exceed production costs. However, the sales estimate may be too high, and therefore the record company may not make a profit. The VP will undertake business assurance and the Marketing Manager, who is the senior user, will undertake user assurance. Is it appropriate for the VP to be responsible for assessing the effect of low sales on the business case, and why?

2.1.2
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A. Incorrect. Sales are generated and monitored after the project. However, this is not why the Vice President (VP), who is undertaking business assurance, should assess the impact of the risk of low sales on the business case during the project. Ref C.7, A.2.1 B. Correct. The role of business assurance, which the Vice President (VP) is undertaking, should assess the impact of the risk of low sales on the business case. Ref C.7, A.2.1 C. Incorrect. The executive is ultimately accountable for the project’s success. However, this does not invalidate the VP carrying out business assurance on the executive’s behalf. Ref C.7, A.2.1 D. Incorrect. The Marketing Manager could undertake the role of risk owner/actionee for this risk. However, this is not a reason why the VP, undertaking business assurance, should not assess the impact of the risk of low sales on the business case. Ref C.7, A.2.1

14)The Vice President (VP) was appointed as executive of the Music Album Project, which is now closing. During the project, extra funding was required and approved by the CEO. However, this funding was given on the condition that, when closing the project, the executive prepares an end project report showing the results of the project against its planned targets in the business case. Is this an appropriate condition, and why?

2.1.2
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A. Incorrect. The executive is responsible for both the business case and the benefits review plan for the duration of the project. During the ‘closing a project’ process, it is the project manager who is responsible for reporting the results of the project against the expected benefits in the business case. Ref tab 6.1, C.2 B. Incorrect. The end project report is used to report project performance during project closure. Preparing this report is the responsibility of the project manager. Ref tab 6.1, 20.4.4, C.2 C. Correct. The project manager is responsible for preparing the end project report. One section in this report is the assessment of the results of the project against the expected benefits in the business case. Ref tab 6.1, 20.4.4, C.5.1, A.8.2 D. Incorrect. The project manager is responsible for preparing the end project report which includes an assessment of the results of the project against the expected benefits in the business. However, project assurance verifies and monitors the business case against external events and project progress. Ref tab 6.1, 20.4.4, C.5.1, C.7.1

15) During the project, the CEO decides that the project should become a pilot project within a programme to establish new ways to launch new singers quickly into the market. Which action is appropriate, and why?

2.2.2
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A. Correct. The programme and project management team structures and roles need to be integrated so that there are clear lines of responsibility from top to bottom. Ref 7.3.3 B. Incorrect. Although roles need to be integrated, this is not because of the need for continued business justification. Ref 7.3.3 C. Incorrect. This is an activity for a project within an agile environment, not a programme. Ref 7.3.5 D. Incorrect. This is an activity for a project within an agile environment, not a programme. Ref 7.3.5

16)During stage 1, when preparing the communication management approach, the project manager included the record company's Marketing Manager as a stakeholder. The Marketing Manager will be checking with focus groups that the music in the album has a market. Without a market for the album there will be no business justification for the project to continue. How well does this action apply the organization theme, and why?

2.2.2
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A. Incorrect. It is true that stakeholders external to the customer organization can exert influence on the project. However, this does not explain why defining the Marketing Manager as an internal stakeholder with communication needs is an appropriate application of the organization theme. Ref 7.3.9 B. Correct. Stakeholders are individuals or groups that have an interest in the project. They may be internal or external to the customer organization and may affect or be affected by the project. The communication management approach is used to document how stakeholder engagement will be carried out. The Marketing Manager is an internal stakeholder with a clear need for bidirectional communication with the focus groups. The information shared could affect the business justification for the project. Ref 7.3.9, glossary C. Incorrect. This is an appropriate application of the organization theme. Also, a stakeholder is any individual or group that has an interest in a project, who may affect or be affected by it. Ref 7.1, 7.3.9 D. Incorrect. The focus groups are stakeholders who should be included in the communication management approach. However, this does not mean that the Marketing Manager is not also a stakeholder whose communication needs should be included. Ref 7.3.9, glossary

17)The product description for the 'launch event plan' was updated at the end of stage 3 to include more detailed quality criteria. The 'launch event plan' was created during stage 4. The 'launch event plan' was then approved by the project manager after checking that it met the defined quality criteria. Is this an appropriate way to manage quality, and why?

2.3.2
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A. Incorrect. The project manager should ensure that team managers implement the quality control measures agreed in product descriptions and work packages. However, the senior user should provide resources to undertake user quality activities and product approval, rather than the project manager giving approval. Ref tab 8.1 B. Incorrect. It is true that as part of the ‘plan the next management stage’ activity, product descriptions should be updated for the products to be delivered in the next stage. However, this does not explain why it is the senior user, not the project manager, who should approve the delivered product. Ref 19.4.1, tab 8.1 C. Incorrect. It is true that the senior user should confirm the customer quality expectations and acceptance criteria for the project. However, this does not explain why it is the senior user, not the project manager, who should approve the delivered product. Ref tab 8.1 D. Correct. The senior user should provide resources to undertake user quality activities and product approval. Therefore, the project manager should not approve the 'launch event plan'. Ref tab 8.1

18)The album will be recorded by an external supplier. The project manager is concerned that the record company will have no access to check the quality of the recorded songs before the album is completed. Therefore, the project manager has requested that the contract with the supplier includes a requirement to review the quality of the songs after each one is recorded. Is this appropriate, and why?

2.3.2
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A. Correct. It is important to be clear about who is responsible for which aspect of quality. This is particularly important in commercial customer/supplier situations, where the contract needs to make clear what the quality expectations are. It is also advisable to define the customer’s rights of inspection and audit in terms of what can be inspected or audited, how often and how much notice needs to be given for any inspection or audit. Ref 8.3.7 B. Incorrect. The senior supplier approves the quality methods, techniques and tools adopted in product development. However, this does not explain why it is also advisable to define the customer’s rights of inspection. Ref 8.3.7, tab 8.1 C. Incorrect. The team manager is responsible for producing products consistent with product descriptions. However, this does not explain why it is also advisable to define the customer’s rights of inspection. Ref 8.3.7, tab 8.1 D. Incorrect. There must be a shared understanding between the customer and the supplier of the quality expected. However, this does not explain why the customer should specify their right to inspect the quality of a product or products. Ref 8.3.6, 8.3.7

19)During stage 3, it was decided to change the design of the 'artwork' to attract attention and help promote sales. The project board agreed to pay for the change using the change budget. The project plan was later updated to show the amount of change budget still available to the project. Was it appropriate to update the project plan, and why?

2.4.2
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A. Correct. It is appropriate to update the amount of change budget remaining, as this information will be of value when making decisions regarding requests for change in the future. Ref 15.4.4, 9.2.1.1, A.16.2 B. Incorrect. The project plan provides the business case with planned costs and is used by the project board as a baseline to monitor project progress against. The project board will consider business justification and impact to the project when they make decisions relating to requests for change. However, this does not explain why the action described is appropriate, as the decision to approve the request for change has already taken place. Ref 15.4.4, 9.2.1.1 C. Incorrect. The project plan is used by the project board as a baseline for measuring actual progress. However, this does not explain why updating the amount of change budget remaining is an appropriate action in this situation. Ref 9.2.1.1 D. Incorrect. The use of the change budget will not require a change to the project budget. However, this does not explain why it is appropriate to update the amount of change budget remaining. Ref A.16.2, glossary

20)The project is in the initiation stage. In consultation with the senior user, the project manager has made some changes to the description of the final product 'album ready for launch'. The project manager's next task is to plan the project. Which action demonstrates the project manager's immediate priority, and why?

2.4.2
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A. Correct. After finalizing the description of the project product, a hierarchy of products is produced, known as a product breakdown structure. The project product is broken down into its major products, which are then further broken down until an appropriate level of detail for the plan is reached. Only after identifying a product it is possible to explore and understand its detailed nature and other features such as purpose and function. Ref 9.3.1.2, fig 9.6, 9.2 B. Incorrect. The hierarchy of products, known as the product breakdown structure, is helpful in identifying the products at the level of detail necessary for a plan. It is a product flow diagram that identifies and defines the dependencies between the products. Ref 9.3.1.2 C. Incorrect. A product flow diagram is used to identify and define the sequence in which the products will be developed and any dependencies between them. This is created in the fourth step of 'defining and analyzing the products'. It is true that the products and their interdependencies should be identified before deciding what activities and resources are required to deliver those products. However, identifying the products is the immediate priority. Ref 9.3.1.2 fig 9.6, 9.1.3 D. Incorrect. A product flow diagram is used to identify and define the sequence in which the products will be developed and any dependencies between them. This is created after producing a hierarchy of the products within the project, known as a product breakdown structure, and then writing more detailed product descriptions. Identifying the products is the immediate priority. Ref 9.3.1.2, fig 9.6

21)The singer has signed a contract with the record company and will sing at a large international festival on a Friday night. This may increase international sales of the album. However, the audience is usually bigger on a Saturday. The project manager has negotiated for the singer to perform on Saturday, rather than Friday. Has the project manager enhanced the opportunity to increase album sales, and why?

2.5.2
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A. Incorrect. The project manager has not enhanced the opportunity. Funding the singer to perform at the festival is exploiting the opportunity and ensuring that the singer reaches a worldwide audience. Ref tab 10.3 B. Incorrect. The project manager has not enhanced the opportunity. Funding the singer to perform at the festival is exploiting the opportunity and ensuring that the singer reaches a worldwide audience. Ref tab 10.3 C. Incorrect. It is true that the increase in sales is not guaranteed. However, the project manager has not enhanced the opportunity. Funding the singer to perform at the festival is exploiting the opportunity and ensuring that the singer reaches a worldwide audience. Ref tab 10.3 D. Correct. Funding the singer to perform at the festival would exploit the opportunity offered thus ensuring that the worldwide audience is reached. Ref tab 10.3

22)The Marketing Director will analyze the opinions of focus groups to check that the album will be marketable and generate sufficient sales. At the end of the initiation stage, the following risk was recorded in the risk register: "There is a threat that the project will be no longer viable which would result in the project needing to be stopped." How well does this identify the risk, and why?

2.5.2
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A. Incorrect. The risk effect should describe the impact(s) that the risk would have on the project objectives should the risk materialize. The risk event and effect have been defined, but not the risk cause Ref 10.4.1.2 B. Incorrect. Risks can, and should, be identified at any time during the management and delivery of the project. However, the risk event and effect have been defined, but not the risk cause. Ref 10.4.1.2 C. Correct. The risk cause should describe the source of the risk. An important aspect of identifying risks is being able to provide a clear and unambiguous expression of each one. Without understanding the risk cause, it is not possible to manage the risk effectively. Ref 10.4.1.2 D. Incorrect. The risk effect should describe the impacts that the risk would have on the project objectives, should the risk materialize. The risk effect is clearly described. Therefore, this does not explain why the risk is poorly identified. Ref 10.4.1.2

23)The recording studio has carried out improvements and can now deliver recordings to a higher quality than specified in the product description for the 'recorded album'. The Recording Studio Manager has recorded the songs to the new improved standard, at no additional cost. This change has no other impact on the project. How should the project manager categorize this issue, and why?

2.6.2
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A. Incorrect. A request for change is a request for permission to change a product baseline. In this case, the product has been produced to a higher quality than the original specification. Therefore, this issue is an offspecification. Ref tab 11.1, glossary B. Incorrect. If a request for change is approved, the product description will be updated. However, this is not a request for permission to change a product baseline. In this case, the product has been produced to a higher quality than the original specification. Therefore, this issue is an off-specification. Ref tab 11.1, glossary C. Correct. An off-specification is something that should be provided by the project, but currently is not (or is forecast not to be) provided. This might be a missing product or a product not meeting its specification. In this case, although the recording quality of the songs will be improved, it will still be something different from what was planned. Ref tab 11.1 D. Incorrect. The issue is an off-specification as the product has been produced to a higher quality than the original specification. However, this is not a proposal for a change to a baseline. Ref tab 11.1

24)During stage 3, the project board grants a concession to permit the use of 'artwork' that does not fully meet the quality criteria. As a result, the project manager has updated the product description for the ‘artwork’. Is this action appropriate, and why?

2.6.2
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A. Correct. When a product is granted a concession, the product description will need to be revised before the product is handed over to the user. Ref tab 11.3 B. Incorrect. When a product is granted a concession, the product description will need to be revised before the product is handed over to the user. However, product descriptions are not updated to show the status of a product. It is the configuration item record or product status account which records the current status of a product. A.6.1, A.18.1 C. Incorrect. When a product is granted a concession, the product description will need to be revised before the product is handed over to the user. Ref tab 11.3 D. Incorrect. When a product is granted a concession, the product description will need to be revised before the product is handed over to the user. Although project support usually administers the issue and change control procedure, it is not mandatory for project support to update the product description. Ref tab 11.2, tab 11.3

25)The work package for the 'launch event plan' is in progress and checkpoint reports are being produced every two weeks. The project manager has reviewed the issue register and is concerned about the number of issues related to this work package. Which action should the project manager take, and why?

2.7.2
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A. Incorrect. Increasing the frequency of checkpoint reports would provide the project manager with more frequent information about work package progress, however this would not prevent exceptions. Ref 12.2.1 B. Correct. The project manager controls the progress within the stage by reviewing reports on the progress of work packages. Increasing the frequency of checkpoint reports increases the project manager’s control of the team's work by giving the project manager more frequent information. Ref 12.2.2.4, 12.2.2.2 C. Incorrect. Increasing tolerances for the work package would increase the permissible deviation and fewer issues would be raised. However, this is not what is required to address the project manager’s concerns. Ref 12.2.1 D. Incorrect. Increasing tolerances for the work package so that they are the same as the stage-level tolerances is not an appropriate course of action. Tolerances should be set according to the level of control needed and the capability to manage by exception at each level of management. Ref 12.2.1

26) The songs have been recorded and meet the minimum quality requirements. However, the team manager recommends that they are re-recorded as better quality songs may improve album sales. Rerecording will cause the stage to exceed its time tolerance. As a result, the project manager has raised an issue to the project board. Is this action appropriate, and why?

2.7.2
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A. Correct. There are two reasons to implement a change: to introduce a new benefit or to protect an existing benefit. The action described is appropriate, as the project board should be given the opportunity to consider a change that may impact positively on the project's justification. The situation should be reported by raising an issue. The songs meet the minimum quality requirements, therefore there is no exception at this point. Ref 11.1, tab 11.2, tab 11.3 B. Incorrect. If the change is approved, the stage would be in exception, as stage tolerances would be exceeded. An exception plan is only produced when the project board requests it, following the consideration of an exception report. The project manager has raised an issue, not an exception report, because at this point the change has not been approved and there is no exception. Ref 12.2.3 C. Incorrect. The project manager could reject the issue as the songs have been recorded within the quality tolerance required. However, the recommendation from the team manager to re-record songs could result in an improved business justification and should be raised as an issue for project board consideration. The senior user will want to safeguard the expected benefits and the executive will want to focus on the continued business justification. Ref tab 11.2, tab 11.3, 12.2.3 D. Incorrect. The project manager does not have the authority to take this corrective action as requests for change must be escalated to the change authority and improving the quality of the songs would lead to an exception. Ref 11.1, tab 11.2, tab 11.3, 12.2.3

27)The record company wants to keep the project confidential in order to avoid another record company launching a similar album at the same time. During the 'starting up a project' process, the project manager discusses the project with colleagues who have experience of keeping a project confidential. Their experiences are used to develop the draft project approach. Is this appropriate, and why?

3.1.2
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A. Incorrect. Major risks should be identified and included in the outline business case, but not in the ‘project approach’ part of the project brief. A.2.2, A.19.2 B. Correct. When selecting the project approach any security constraints that apply to the project should be considered. Ref 14.4.5 C. Incorrect. Lessons related to communications should be used to develop the communications management approach during the 'initiating a project' process. However, this does not explain why it is appropriate to use these lessons when developing the project approach. Ref 16.4.5, 14.4.5 D. Incorrect. When selecting the project approach any security constraints that apply to the project should be considered, as well as recording lessons in the lessons log. Ref 14.4.5, 14.4.2

28)The project is approaching the end of the initiation stage. The project manager has requested that the project board meet to 'authorize the project'. The project manager has prepared a set of slides showing the project controls, the business case and the scope of the project, to present to the project board. How well is the 'authorize the project' activity being carried out?

3.2.2
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A. Incorrect. The degree of formality to authorize the project may differ in different circumstances provided decisions are explicit and traceable. Members of the project board do not have to meet in person. Ref 3.5, 15.5.1 B. Correct. The degree of formality to authorize the project may differ in different circumstances provided decisions are explicit and traceable, ranging from verbal advice and decisions to those which are formally documented in email, meeting minutes or other traceable formats. Management products can be in other formats and do not necessarily need to be “text documents”. These could be slides or spreadsheets. Ref 15.5.1, Appendix A C. Incorrect. Applying the 'manage by exception' principle provides for very efficient use of senior management time as it reduces senior managers’ time burden without removing their control by ensuring decisions are made at the right level in the organization. However, this decision is being made at the right level, and the project board can choose to meet in person. The degree of formality to authorize the project may differ in different circumstances provided decisions are explicit and traceable. Ref 3.5, 15.5.1 D. Incorrect. The 'authorize the project' activity will be triggered by a request from the project manager for authorization to deliver the project, and may be undertaken in parallel with authorizing a stage or exception plan. Ref 15.4.2

29)The Music Album Project will be part of a programme for the record company to sell a different type of music. The project is now in the 'initiating a project' process and the project manager has requested support from the programme office when producing the risk management approach. Which statement explains why this is an appropriate way to produce the risk management approach?

3.3.2
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A. Incorrect. It is true that the project manager produces the risk management approach as part of the ‘initiating a project’ process. However, it does not explain why the programme office should provide support when producing the risk management approach to ensure consistency with programme standards. Ref 16.5.3, 16.4.2 B. Incorrect. It is true that the risk management approach should define how the risk register will be managed and maintained. However, it does not explain why the programme office should provide support when producing the risk management approach to ensure consistency with programme standards. Ref 16.5.3, A.24.2 C. Incorrect. Initiating a simple project is likely to be less formal than for a larger project, with management products combined into a small number of documents. However, this does not explain why the programme office should provide support in producing the risk management approach. Ref 16.5.4.1 D. Correct. The project manager may assign whoever is appropriate to the task of producing the management products. Often support may be provided by a higher level programme office or similar. The risk management approach should comply with any corporate, programme management or customer strategies, standards or practices relating to risk management need to be applied by the project. Ref 16.5.3, 16.4.2

30)At the beginning of stage 3, the singer suggested that a video could be taken during the recording of the songs and used at the launch of the album to promote sales. This change can be accommodated in stage 3 and has been approved. The recording studio has agreed to record the video. As a result, the project manager has created a product description for the product 'recorded video', and amended the work package for the studio. Are the project manager's actions appropriate, and why?

3.4.2
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A. Correct. Work packages are used to define and control the work to be done by teams and will contain the product descriptions for the work. The project manager will create the product description for the new product filmed recording whilst updating the stage plan in the activity 'take corrective action'. Ref 17.2, 17.4.8, glossary B. Incorrect. The request for change will already have been assessed by the project manager during the activity 'capture and examine issues and risks'. This will have been in accordance with the change control approach. A minimum requirement is to assess whether issues might have a material impact on the business justification of the project. This does not explain the project manager's action of creating a product description. Ref 11.2, 17.4.6 C. Incorrect. The project manager creates or updates product descriptions, if used, during the activity 'plan the next management stage' in the 'managing a stage boundary' process. However, in this case it is appropriate for the project manager to create the product description for the new product ‘recorded video’ when updating the stage plan in the activity 'take corrective action', and include this in the amended work package. Ref 19.4.1, 17.4.8 D. Incorrect. The project manager will create the product description for the new product ‘recorded video’ when updating the stage plan in the activity 'take corrective action'. However, the action to update the work package is appropriate. Ref 17.4.8

31)The Graphic Designer contracted to create the 'artwork' in stage 3 will be following an agile approach. The project manager is acting as the team manager for the work package and has produced a team plan. Why is the use of a team plan appropriate?

3.5.1a
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A. Correct. Although a team plan is optional, it is appropriate when following an agile approach to produce a team plan to show that a product can be completed within a timebox. Ref 18.4.1, 9.2.1.4, 9.3.3 B. Incorrect. Team plans are optional, irrespective of whether the team manager role is being carried out by the project manager. However, it is appropriate when following an agile approach to produce a team plan to show that a product can be completed within a timebox. Ref 9.2.1.4, 18.4.1 C. Incorrect. Team plans are optional, irrespective of whether the team is external or internal to the customer organization. However, it is appropriate when following an agile approach to produce a team plan to show that a product can be completed within a timebox. Ref 9.2.1.4, 18.4.1 D. Incorrect. It is not mandatory when following an agile approach to produce a team plan. Ref 9.2.1.4, 18.4.1, 9.3.3

32)The 'artwork' will be delivered by a graphic design company using an agile delivery approach. The work package is being negotiated before work on the 'artwork' commences. Who should approve the work package for the 'artwork'?

3.5.1b
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approve it. Ref tab 18.1 B. Incorrect. The project manager produces the work package as part of the ‘controlling a stage’ process. The team manager approves it. Ref tab 18.1 C. Correct. The team manager approves the work package which is created by the project manager. Ref tab 18.1 D. Incorrect. The executive is not involved in the accepting of a work package. Ref tab 18.1

33)The Music Album Project will be part of a programme for the record company to sell a different type of music. As a result, the team manager for the 'launch event plan' work package has been asked to provide weekly checkpoint reports directly to the programme manager. This will allow the programme manager to monitor the launch of the music. Is it appropriate for the team manager to send the programme manager checkpoint reports, and why?

3.5.2
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A. Incorrect. Management products should be tailored to the requirements and environment of each project. However, there is no interface between managing product delivery and programme management. Ref 18.5.4.4, App. A B. Incorrect. Checkpoint reports should be provided in the manner and at the frequency defined in the work package. However, this does not explain whether it is appropriate to send checkpoint reports to programme management. Ref 18.4.2 C. Incorrect. The team manager should notify the project manager that the work package is complete as part of the 'deliver a work package' activity. However, this does not explain why it is inappropriate for the team manager to provide checkpoint reports to the programme manager. Ref 18.4.2, 18.4.3 D. Correct. The project should be managed at the four management levels. The 'managing product delivery' process has no direct interface with programme management. As part of the 'managing product delivery' process, the progress of work packages is reported to the project manager, who then reports highlights as part of the 'controlling a stage' process. Ref 18.5.4.4, fig 17.6

35)Stage 3 is in exception. The project board has requested an exception plan from the project manager, who has triggered the 'managing a stage boundary' process as a result. Which action is OPTIONAL?

3.6.1a
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A. Correct. For an exception plan, depending on the point within the management stage when the exception occurred, it may be appropriate to produce an end stage report for the activities to date. Whether this is required will be advised by the project board in response to the exception report. Ref 19.4.4 B. Incorrect. The business case is revised as part of ‘update the business case’ activity. Ref 19.4.3 C. Incorrect. The benefits management approach is updated as part of ‘update the business case’ activity. Ref 19.4.3 D. Incorrect. The project plan is revised as part of ‘update the project plan’ activity. Ref 19.4.2

35)A stage-level exception was identified while recording the sample songs. As a result, the project board instructed the project manager to prematurely close the stage and create a plan to combine the remainder of stage 2 together with the production of the 'recorded album' and the 'artwork'. Which activity should the project manager carry out in order to produce the combined plan?

3.6.1.a
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A. Incorrect. The 'plan the next management stage' activity is used to plan the next stage of a project when the previous stage approaches its planned end. In this case, there has been an exception and the project manager has been asked to produce a plan to replace the remainder of the current stage and incorporate some additional products. The plan will therefore be an exception plan, not a stage plan. Ref 19.4.5 B. Incorrect. ‘Prepare premature closure’ is an activity that is part of the ‘closing a project’ process. The current stage will be re-planned, but the project is not being closed. Ref 20.4.2, 19.4.5 C. Correct. The stage is in exception. The project board has asked the project manager to produce a plan to replace the remainder of the current stage and incorporate some additional products originally expected to be created during stage 3. The project manager is therefore producing an exception plan, not the next stage plan. Ref 19.4.5, 19.4.1 D. Incorrect. The stage is in exception and the project manager has been instructed to re-plan the remainder of the stage together with additional products. Therefore, the appropriate activity to use is ‘produce an exception plan’. It is unclear whether the project is also now in exception. However, ‘create a project plan’ is an activity of the ‘initiating a project’ process and is not used to re-plan a project that is in exception. A project exception plan is, like a stage exception plan, created using the ‘produce an exception plan' activity. Ref 19.4.5, 16.4.7

36)During stage 2, it is found that the graphics design company is in financial difficulty. As a result, another supplier is selected to produce the 'artwork' and their account manager is asked to join the project board as a senior supplier with immediate effect. Is this appropriate, and why?

3.6.2
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A. Incorrect. It is true that PRINCE2 can be tailored to meet the specific needs of the organization and scaled to the size and complexity of different projects. However, changing the project management team members at any time without any urgent requirement can interrupt the project flow. Ref 19.4.2, 1.1 B. Incorrect. Changing the graphics design company in stage 2 is not expected to result in an exception as production of the 'artwork' is scheduled to happen in stage 3. The decision should therefore be implemented as part of the 'managing a stage boundary' process. Ref 19.4.2 C. Incorrect. The action is not appropriate as project management team changes should happen at a stage boundary, unless there is an exception or other urgent situation. Also, there may be more than one individual on the project board as a senior supplier. Ref 19.4.2, 7.2.1.4, 7.3.4 D. Correct. As part of ‘plan the next stage’ activity in the 'managing a stage boundary' process, the components of the project initiation documentation are reviewed. This is the right time for reviewing and, if necessary, updating any change in the project management team or their role descriptions (in particular the situation with regard to external resources or suppliers). In the situation described there is no urgency or exception that would require an immediate change. Ref 19.4.2

37)The Music Album Project has delivered the 'album ready for launch'. When closing the project, the project manager considers that the Recording Studio Manager has been an excellent team manager. As a result, the project manager prepares a recommendation that the Recording Studio Manager should be contracted to record future albums. In which activity of the 'closing a project' process should this recommendation be submitted for approval?

3.7.1.a
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A. Incorrect. During the ‘prepare planned closure’ activity, the project manager ensures that all the project products have been achieved and delivered. Ref 20.4.1, 20.4.4 B. Incorrect. During the ‘hand over products’ activity, the projects products are passed to the operational and maintenance environment. This is where followon action recommendations are created. Ref 20.4.3, 20.4.4 C. Correct. The report is recording a lesson that should be considered by a future project, not a follow on action about a product from this project. The report is therefore a lessons report which should be submitted for approval by corporate, programme management or the customer as part of the 'evaluate the project' activity. Ref 20.4.4 D. Incorrect. During the ‘recommend project closure’ activity, the project manager confirms to the project board that the project can be closed. Ref 20.4.5, 20.4.4

38)The project is now being closed. Which action should the project manager take during the 'evaluate the project' activity?

3.7.1.a
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A. Incorrect. Confirming acceptance from the operations and maintenance organizations is an action during the ‘hand over products’ activity. Ref 20.4.3 B. Correct. The project manager should, as part of the 'evaluate a project' activity, review useful measurements such as how effective the quality management approach was in designing, developing and delivering fit-forpurpose products (e.g. how many errors were found after products had passed quality inspections). Ref 20.4.4 C. Incorrect. Confirming that the correct operational and maintenance environment is in place is an action during the ‘hand over products’ activity. Ref 20.4.3 D. Incorrect. Requesting a product status account from project support is an action during the ‘prepare planned closure’ activity. Ref 20.4.1

39)During the initiation stage, a risk was recorded that sales of the singer's album might impact sales of other albums produced by the record company. Therefore, when this risk was reviewed during project closure, a follow-on action recommendation was made for the record company's audit department to report on the impact during post-project benefit reviews. Is this appropriate, and why?

3.7.2
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A. Incorrect. During the 'hand over products' activity of the 'closing a project' process, follow-on action recommendations for the project’s products to include any uncompleted risks should be created. Although some benefits cannot be measured until after the project's products have been in operational use for some time. However, the project can be closed provided the benefits management approach includes post-project activities to confirm these benefits. Ref 20.4.3 B. Correct. During the 'hand over products' activity of the 'closing a project' process, follow-on action recommendations for the project’s products to include any uncompleted risks should be created to enable the risk to be closed in the register. Ref 20.4.3, 20.4.5 C. Incorrect. During the 'hand over products' activity of the 'closing a project' process, follow-on action recommendations for the project’s products to include any uncompleted risks should be created. Follow-on actions can be addressed to individuals or distinct user groups. Ref 20.4.3 D. Incorrect. During the 'hand over products' activity of the 'closing a project' process, follow-on action recommendations for the project’s products to include any uncompleted risks should be created. The benefits management approach should include post-project activities. These are in addition to creating follow-on actions and may be derived from them. Ref 20.4.3

PRINCE2 - Practitioner sample exam
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