PRINCE 2 Practice Questions

PRINCE2® PRACTICE QUESTIONS
These are not multiple choice answers.
Direct answer for each question is given.
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Introduction
1. What is a Project?
o A project is a temporary organization that is created for the
purpose of delivering one or more business products as per
an agreed Business Case.
2. What are the characteristics that distinguish a Project from
Business as usual?
o Change
o Temporary
o Cross Functional
o Unique and
o Uncertainty
3. What is Project Management?
o Project Management is the planning, delegating, monitoring
and controlling all aspects of the Project.
4. What are project objectives on which performance targets are
set?
o Benefits
o Cost
o Quality
o Risk
o Scope and
o Timelines
5. What are the six aspects of Project Performance that must be
managed?
o Same as above.
6. Out of Seven principles, how many must be applied for a Project
to be known as a PRINCE2® project?
o All Seven must be applied.
7. Which must be addressed continually and in parallel throughout
the Project?
o Themes
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8. Which provide step-wise progression through the Project lifecycle
from getting started to project closure?
o Processes
9. What PRINCE2® doesn’t provide?
o Specialist aspects
o Detailed Techniques
o Leadership capability
10. What are the benefits of using PRINCE2®
o Established and proven best practice
o Can be applied to any type of Project
o Widely recognized and understood
o Provides an explicit recognition of Project responsibilities
o Backed by “Manage by exception” principle, provides
economic and efficient use of Management time
o Carefully designed to meet the different needs of
Management
Principles
11. What are the characteristics of Principles?
o Universal
o Self-validating
o Empowering
12. What are the Seven Principles of PRINCE2®?
o Continued business justification
o Learn from experience
o Defined roles and responsibilities
o Manage by stages
o Manage by exception
o Focus on products
o Tailor to suit Project environment
Continued Business Justification
13. A PRINCE2® project must have (from this Principle perspective)
o Continued business justification
14. What business justification requirements of PRINCE2®?
o Projects must be started with justifiable business reason
o This justification should remain valid throughout the Project
o This justification is documented and approved
15. Business Justification is documented in
o Business Case
16. If a Project can no longer be justified, what should be done?
o The Project should be stopped
Learn from Experience
17. When lessons are sought in a PRINCE2® project?
o Lessons are sought, recorded and acted upon throughout
the Project.
18. Who should contribute to lessons learned?
o Everyone involved with the Project.
Defined Roles and Responsibilities

19. Which are the three primary stakeholders in any Project?
o Business
o Users
o Suppliers
Manage by Stages
20. A PRINCE2® project is planned, monitored and controlled on
o Stage by Stage basis
21. Which provide senior management required control points
throughout the Project?
o Management Stages
22. At the end of each stage, what should be done?
o Project’s status to be assessed
o Business case and plans reviewed for continued business
justification and project remains viable
o Decision to be made whether to continue or not
23. The period of time for which it is possible to accurately plan is
known as ___________.
o Planning Horizon
24. How does PRINCE2® overcome Planning horizon?
o Dividing the Project into a number of management stages
o Having a high level project plan and detailed stage plan (for
current stage)
o Planning, delegating, monitoring and controlling the project
on stage by stage basis
25. What is the minimum number of stages required for a PRINCE2®
project?
o Two: one initiation and one or more further management
stages
Manage by Exception
26. What are defined on each Project Objectives i.e. BCQRST to
establish limits of delegated authority?
o Tolerances
27. How accountability is established in a PRINCE2® project?
o Delegating authority from one management layer to another
by setting tolerances against BCQRST (in simple English:
each management layer sets tolerance limits on BCQRST to a
management layer below it)
o Setting up controls so that if there is any tolerance forecast
to exceed, it is escalated UP to the next management layer
o Putting an assurance mechanism in place
28. What is the advantage of “Manage by Exception” principle?
o It provides very efficient use of senior management time
burden without removing their control
Focus on Products
29. To fulfill stakeholder expectations in accordance with project
justification, what is required?
o Common understanding of the Products required and
quality expectations
30. What does Product Descriptions provide?
o Define each product’s (deliverable from the Project) purpose
o Its composition (what makes the deliverable i.e.
components)
o Derivation (using which existing products, it is created)
o Format
o Quality Criteria (acceptance criteria)
o Quality Method
31. Which forms as a basis for effort estimates, resource

requirements, dependencies and activity schedules?
o Product Descriptions (Watch Out for a nice trap with Plan as
an answer, a Plan contains all these but it is not the basis for
arriving at these)
32. Which are supported by Product Focus approach?
o Planning
o Responsibilities
o Status Reporting
o Quality
o Change Control
o Scope
o Configuration Management
o Product acceptance and
o Risk Management
33. Without Product Focus approach, what would be the major risks
that may arise?
o Acceptance disputes
o Rework
o Uncontrolled change (scope creep)
o User dissatisfaction
o Underestimation
Tailor to suit to the Project Environment
34. What of a Project can be tailored?
o Environment
o Size
o Complexity
o Importance
o Capability and
o Risk
35. What is the purpose of Tailoring?

o Ensure that Project Management method relates to
Project’s environment
o Ensure that Project’s controls are based on the Project’s
scale, complexity, importance, capability and risk
36. Which document details the Tailoring information for a
PRINCE2® project?
o Project Initiation Documentation
Business Case
37. Which theme establishes mechanisms to judge whether the
project remains desirable, viable and achievable and supports
decision making?
o Business Case
38. Who is responsible for specifying and realizing the benefits
through the use of products provided by the Project?
o Senior Users
39. Who is responsible to ensure that the benefits specified by
Senior Users represent value for money, aligned with corporate
objectives, and are capable of being realized?
o Executive
40. Which document provides the answer to the question “Is the
investment in the Project still worthwhile?”
o Business Case
41. What is Output of a Project?
o Any of the Project’s products i.e. deliverables i.e. end
product or service
42. What is Outcome?
o Result of change derived from using the Project’s output.
43. What is Benefit?
o Measurable improvement that is derived from an outcome
i.e. using the end product or deliverable of the Project.
o Remember that cost savings by completing the Project early
are not benefits from using the outputs. The cost savings are
definitely benefits to the organization or client, but not from
this context. Here we speak about the advantages gained by
using the project’s outputs only.
44. Who verifies the Business Case formally at key decision points?
o Project Board
45. What is PRINCE2® approach to Business Case?
o Develop  Verify  Maintain  Confirm
46. Which step of Business Case approach focuses on updating the
Business Case with actual costs and benefits, current forecast for
costs and benefits?
o Maintain (i.e. updating Business Case with Planned Vs Actual
costs and recalculating to completion of Project)
47. Who is responsible for the Business Case?
o Executive (it means who owns the Business Case)
48. Who can assist Project Board with the development of Business
Case?
o Project Assurance (it is expected that PM should write the
Business case. So that is not the correct answer. The
question is asking for additional support – so Project
Assurance)
49. Outline Business Case is derived from ________.
o Project Mandate
50. Which is used to gain approval from Project Board in Directing a
Project process to initiate the Project?
o Outline Business Case (read carefully: it says to initiate the
project. So it must happen before Initiating a Project
process)
51. Detailed Business Case is derived from _______________.
o Outline Business Case, Project Plan and Risk Register.
52. ____________ drives all decision making by ensuring that the
project remains justified and that the business objectives and
benefits being sought can be realized.
o Business Case
53. To drive decision-making Business Case must be verified at
____________.
o At the end of Starting Up a project process by Project Board
to authorize project initiation
o At the end of Initiating a Project process by Project Board to
authorize the project (this means that before execution
begins project must be authorized)
o As part of any impact assessment by the Project Manager
when any new issues or risks arise
o In tandem with an Exception plan by the Project Board
o at the end of each stage by the Project Manager to update
the actual cost, benefits, time, risks.
o At the end of each stage by the Project Board to authorize
the upcoming stage
o During the final stage by the Project Manager to assess
project performance against the original planned scope
54. Who has the responsibility to assure project stakeholders that
the project remains desirable, viable and achievable at all the
times?
o Executive
55. Who can assist the executive in assessing project’s viability?
o Project Assurance
56. Which section of the business case provides the project board
with the information to justify authorization or continuation of
the project?
o Investment appraisal
57. What is the approach to confirm benefits?
o Identify the benefits
o Select measures
o Collect baseline measures
o Decide how, when and by whom benefit measures will be
collected
58. Who will be held accountable for demonstration of benefits
realization?
o Senior users
59. Which document defines the scope, timing and responsibility of
benefit reviews?
o Benefit Review Plan
60. Who is responsible for ensuring that benefit reviews are planned
and executed?
o Executive (do not fall into a trap by selecting PM here)
61. When is benefit review plan created?
o By the PM in Initiating a Project process
62. Who owns Post project benefit reviews?
o Corporate or Programme management (because project
team will not be there once project is complete)
63. Which section of the business case explains why the project is
required?
o Reasons
64. What are the three basic business options concerning an
investment?
o Do nothing, do the minimum, do something.
65. Which is the mandatory option in business options?
o Do nothing.
66. Which option acts as a basis in quantifying other options?
o Do nothing.
67. What types of benefits are recorded in expected benefits section
of business case?
o Financial and non-financial (also known as cashable and non-
cashable or tangible and intangible)
68. What is a dis-benefit?
o A dis-benefit is actually a benefit but it is perceived as
negative by few stakeholders.
69. The business case should include ____________.
o A summary of aggregated risks (in the form of summary risk
profile).
70. Who can prepare the business case on behalf of the executive?
o Project manager (this is preparing, not supporting.
Supporting can be done by Project Assurance)
71. During project closer, who provides a report on project’s
performance?
o Project manager.
Organization
72. What is the purpose of Organization theme?
o To define and establish the project’s structure of
accountability and responsibility
73. PRINCE2 is based on _____________.
o customer/supplier environment.
74. What are the prerequisites for business interests in the project?
o The project should meet a business need that will justify
investment in the project
o The project should also provide value for money
75. Who will maintain, operate or support the project’s outputs?
o Users (remember that Senior User represents these group of
users)
76. Who will represent those who provide the necessary skills and
produce project output?
o Senior supplier.
77. What are PRINCE2’s levels of organization?
o Four levels - three within the project (Directing, Managing
and Delivering) and one that operates outside the project
(Corporate/Programme Management)
78. What does corporate or programme management typically does
in a PRINCE2 project?
o Commissioning the project i.e. kicking of the project by
providing project mandate
o Identifying and appointing the Executive
o Defining project level tolerances for the Project Board
79. Who is (OR Which layer is) responsible for the overall direction
and management of the project within the constraints set out by
the Corporate or Programme management?
o Directing – Project Board
80. Who is accountable for the success of the project?
o Project Board
81. As part of Directing the Project, what are the typical activities
carried out by Project Board?
o Approve all major plans and resources
o Authorize any deviation that is forecast to exceed stage
tolerance
o Approve the completion of each stage and authorize the
start of next stage
o Communicate with other stakeholders (this is with senior
and leadership level communications, communications with
Corporate or Programme Management)
82. Who is (OR Which layer is) responsible for day to day
management of the project within the constraints set out by
Project Board?
o Managing – Project Manager
83. Whose prime responsibility it is to ensure that the project
produces the required products in accordance with BCQRST
performance goals?
o Project Manager
84. Who are (OR Which layer is) responsible for delivering the
project’s outputs to an appropriate agreed quality?
o Delivering – Team (question says ‘are’. If it is ‘is’ then Team
Manager)
85. Which roles can often be combined?
o Executive and Senior user
86. Which roles cannot be shared?
o Executive and Project Manager
87. Whose decision-making accountability cannot be delegated?
o Project board and Project Manager
88. Which roles make up the project board?
o Executive, senior users and senior suppliers.
89. What are the four key characteristics of a good project board?
o Authority
o Credibility
o Ability to delegate
o Availability
90. Which document contains the frequency and detail of
communication required by the project board during the project?
o Communication management strategy
91. Which role balancers the demands of business, users and
suppliers?
o Executive
92. Who appoints the executive and in which process?
o Corporate or programme management in Starting Up a
Project process
93. Which role monitors the solution in terms of quality,
functionality and ease of use?
o Senior users
94. Which role commits user resources and monitors the product
against requirements?
o Senior users
95. Which role is accountable for the quality of the products to be
delivered?
o Senior supplier.
96. Which role is responsible for technical integrity of the project?
o Senior supplier.
97. Using which role, the project board monitors all aspects of the
project’s performance and deliverables independent of project
manager?
o Project assurance
98. The project board should not assign any of the project assurance
roles to whom?
o Project manager
99. Project assurance reports to ______________.
o Project board
100. Who has the responsibility to agree to each potential change
before it is implemented?
o Project board
101. Who has the single focus for day to day management of the
project?
o Project manager.
102. Who manages team managers and project support?
o Project manager.
103. Who has the primary responsibility of producing the products
allocated by project manager?
o Team manager.
104. PRINCE2® users ___________ to allocate work to the team
managers or team members.
o Work packages
105. Project support is a responsibility of ____________.
o Project manager.
106. Who is responsible for administering any configuration
management procedure and tools as defined in configuration
management strategy?
o Project support.
107. Which role must be kept separate from project assurance to
maintain the independence of project assurance?
o Project support.
108. What will help the project manager to understand the level of
interaction and support to expect during the project?
o Setting up clear project controls at the start of the project
and agreeing these with project board
109. What are the common traits of stakeholders in a project?
o Support or oppose the project
o Gain or lose as a result of project delivery
o See the project as a threat or enhancement to their position
o Become active supporters or blockers
110. What are the six steps in stakeholder engagement as per
“Managing Successful Programmes” guidelines?
o Identifying stakeholders (Who)
o Creating and analyzing stakeholder profiles (What)
o Defining the stakeholder engagement strategy (How)
o Planning the engagements (When)
o Engaging the stakeholders (Do)
o Measuring effectiveness
111. Which document facilitates engagement with stakeholders
through the establishment of a controlled and bi-directional flow
of information?
112. Who documents the communication management strategy and
in which process?
o Project manager in Initiating a Project process
113. During the project, most likely when the communication
management strategy should be updated?
o At each stage boundary in Managing Stage Boundary
process
114. Which role approves communication management strategy?
o Executive
115. Which role ensures that communication management strategy
is appropriate and that plan and communication activities actually
take place?
o Project assurance.
116. Which role provides advice to the project manager on
stakeholder engagement?
o Project assurance.
Quality
117. Which theme defines and implements the means by which the
project will create and verify products that are fit for purpose?
o Quality.
118. Which principle provides an explicit common understanding of
what the project will create and the criteria against which the
project’s output will be assessed?
o Focus on Product
119. Define quality.
o Quality is defined as the totality of the features and inherent
or assigned characteristics of the project’s deliverable.
120. What is quality planning?
o Defining the products i.e. deliverables of the project, Quality
criteria, Quality methods and quality responsibilities
121. What is quality control?
o Fulfil the requirements of quality i.e. meet the quality
criteria defined
o Identify ways of eliminating unsatisfactory performance
122. Which provides a check that the project’s direction and
management are adequate for the nature of the project and
relevant corporate or programme management standards and
policies are in compliance?
o Quality assurance
123. __________ independently checks that organization and
processes are in place for quality planning and control.
o Quality assurance
124. _________ provides confidence to project’s stakeholders that
quality requirements can be fulfilled.
o Quality assurance
125. Few points about quality expectations:
o They cover the key quality requirements of the project’s
output
o Any standards and processes that needs to be applied
o Any measurements to assess quality requirements
o Are often expressed in broad terms to gain common
understanding (please note: quality expectations are generic
in nature whereas acceptance criteria must be specific and
precise.)
126. The _________ form a prioritized list of measurable definitions
of the attributes required for a set of products to be accepted.
o Acceptance criteria.
127. Acceptance criteria are documented as part of _____________.
o Project Product Description
128. During closing a project process, which is used to verify that the
project has delivered what was expected and that acceptance
criteria have been met?
o Project Product Description
129. The Project Product Description includes:
o the overall purpose of the product
o it’s composition
o customer’s quality expectations
o acceptance criteria, methods and responsibilities
o project level quality tolerances
130. The quality management strategy is prepared by ______ in
__________ process.
131. Which document describes the quality standards, procedures,
techniques, tools and roles & responsibilities?
o Quality management strategy
132. What is used to govern the development of products and their
subsequent review and approval?
o Product descriptions.
133. What are the quality responsibilities for a product? Please note
these roles are different to Quality Review technique
o Producer: a person or group responsible for developing a
product i.e. usually Senior Supplier
o Reviewer(s): a person or group independent of the producer
who assesses the product against its requirements i.e.
usually Senior Users or resources who does testing
o Approver(s): the person or group who is qualified and
authorized to approve a product i.e. usually Project Board
134. ___________ is a diary of quality events planned and
undertaken.
o Quality register.
135. Quality register is setup by ___________ in _________ process.
o Project support in Initiating a Project process (by default, all
registers are setup by project support. Remember that it is
not Project Manager)
136. Which document is updated to reflect the actual results from
quality activities?
o Quality register.
137. Quality control is achieved by __________.
o Implementing, monitoring and recording the quality
methods defined in quality management strategy and
product descriptions.
138. Quality control primarily consists of
o Carrying out quality methods
o Maintaining quality and approval records
o Gaining acceptance
139. What are two types of quality methods?
o ‘In-process methods’: for ex: automation, pilots, workshops,
surveys etc.
o ‘Appraisal methods’: for ex: testing, inspection etc.
140. What are the objectives of PRINCE2’s quality review technique?
o To assess product’s conformance against acceptance criteria
o To involve key stakeholders in checking the product’s quality
o To provide confirmation that the product is ready for
approval
o To baseline the product for change control
141. What are quality review technique’s roles?
o Chair
o Presenter
o Reviewer
o Administrator
142. During quality review, which role distributes copies of the
product and product descriptions to the review team?
o Presenter
143. During quality review, which role submits a list of questions to
the Chair and the Presenter of the review?
o Reviewer
144. What are the benefits of quality review technique?
o Opportunity for stakeholder engagement
o Focus on quality promotes leadership
o Can be used as a team building exercise
o Improvements in communication and documentation
o Promotes quality culture
145. ___________ can be used as a source for lessons learned and
process improvements.
o Quality metrics such as defect types and trends
146. Who should provide quality assurance for the project?
o Corporate or programme management
147. Who will approve project product descriptions and quality
management strategy?
o Project board
148. Who will maintain quality register and quality records?
o Project support
Plans
149. Which theme facilitates communication and control by defining
the means of delivering projects output (i.e. where and how, by
whom, what is the effort to required etc.)?
o Plans
150. Which document describes how, when and by whom a specific
target can be achieved?
o Plan
151. What is planning?
o The process of making and maintaining plans.
152. What could happen in a poorly planned project?
o Frustration
o Waste
o lot of rework
153. What is known as planning horizon?
o The period of time for which it is possible to accurately plan.
154. How many levels of plans are recommended by PRINCE2?
o Three levels
155. Project plan is created by _________ in ___________ process.
156. Which is the 1st plan to be created in a PRINCE2 project?
o Initiation stage plan
157. Initiation stage plan is created by ___________ in ________
process.
o Project manager in Starting up a Project process
158. Stage plans other than Initiation are created by __________ in
________ process.
o Project manager in Managing Stage Boundary process
159. Team plans are created by ___________ in __________
process.
o Team manager in Managing Product Delivery process
160. Which plan covers corporate, project and stage levels?
o Benefit review plan (remember that benefit review plan has
a life that is beyond the project, therefore at the end of the
project it is transferred to Corporate or Programme
Management)
161. What is the relation between project plan and business case?
o Planned project costs, timescales, major control points,
milestones from project plan are used in business case.
162. Which plan is used by project board as a baseline to monitor
project progress stage by stage?
o Project plan
163. Which plan in PRINCE2 is optional?
o Team plan
164. Which plan facilitates execution of one or more work packages?
o Team plan
165. Which plan is prepared for appropriate management level to
show the actions required to recover from the effect of a
tolerance deviation?
o Exception plan
166. For stage level exceptions, the current stage plan will be
replaced by ______.
o Exception plan
167. Stage level exception plans need the approval of _________.
o Project board
168. Exception plans are not produced for _________.
o Work Packages
169. How will a team manager notify the project manager about a
forecast of exceeding work package tolerance?
o By rising an issue (exceptions are not there at Work Package
level)
170. PRINCE2 uses _________ technique to identify, define and
analyze the plans products.
o Product based planning
171. What are the benefits of product based planning?
o Clearly and consistently identifying and documenting
products
o Removing any ambiguity over product expectations
o Involving users in specifying requirements and thus
increasing buy ins
o Improving communications
o Clarifying scope boundary
172. What is the first task in product based planning?
o Write the project product description
173. For each external product there should be a _________.
o Corresponding entry in risk register
174. Which document defines the sequence in which the project’s
products to be developed?
o Product flow diagram
175. What are the steps in product based planning?
o Write the project product description
o Create the product breakdown structure
o Write the product descriptions
o Create product flow diagram
176. What types of activities should be included while planning?
o Activities needed to develop project’s output
o Project management activities
o Quality checking activities
177. What are the two types of dependencies between activities?
o Internal and external
178. When will you identify the type of resources and skill levels
required while planning?
o When preparing estimates (remember that product based
planning technique does not have estimation)
179. The amount of time that an activity can be delayed without
affecting the completion time of overall project is known as
_________.
o Float or slack
180. __________ is an event on a schedule that marks the
completion of key activities.
o Milestone
181. Who will approve the project plan?
o Executive
182. Who will prepare the schedule for each work package?
o Team manager
Risk
183. What is the purpose of the risk of theme?
o Identify, assess and control uncertainties and as a result
improve project’s ability to succeed
184. When risk management is performed in a project?
o Throughout the project i.e. risk management is a continual
activity
185. What is a prerequisite for continued business justification
principle?
o Effective risk management
186. For risk management to be effective, all risks need to be
o Identified, assessed and controlled
187. What are the four perspectives where risk management is
applicable?
o Strategic, programme, project and operational (remember
this is not about four levels of management)
188. In most cases there is a possibility that organization level risk
management policy and programme level risk management policy
might exist. In this context what is recommendation for projects?
o Every project must to have its own risk management policy
and risk register (projects can take inputs from programme
and/or organization level policies, but we need separate risk
management policy and register for each project)
189. Which document describes how risk management will be
embedded into project management activities?
o Risk management strategy
190. Which will help us to determine the amount of risk that a
project board is willing to take?
o Risk appetite and risk tolerances
191. Which document captures and maintains information on all
identified threats and opportunities related to a project?
o Risk register.
192. Risk management strategy is prepared by ______ in ________
process.
193. Who can setup and maintain project risk register?
o Project support
194. What is PRINCE2’s risk management procedure?
o Identify  assess  plan  implement  communicate
195. Which step in risk management runs in parallel or gets repeated
with other steps?
o Communicate
196. What can have an influence on project’s risk management
strategy?
o Customer’s quality expectations
o Number of organizations involved and relationship between
them
o The needs of stakeholders involved in the project
o The importance, complexity and scale of the project
o Assumptions already made
197. Timing of risk management activities are documented in
__________.
198. Scales for probability, impact and proximity are documented in
_________.
199. What is the first step in risk identification?
o Identify the context
200. What are few risk identification techniques?
o Review lessons
o Risk checklists
o Risk prompt lists
o Brainstorming
o Risk breakdown structure
o Risk workshop
201. Which is also known as cause of the risk?
o Risk source
202. The area of uncertainty is known as _________
o Risk event
203. What are the three components of every risk?
o Source, event and effect
204. A risk that is having a favorable impact on the project is also
known as ________.
o Opportunity
205. What are the two steps involved in assessing the risks?
o Estimate and then evaluate
206. What are few risk estimation techniques?
o Probability trees
o Expected value
o Pareto analysis
o Probability impact grid
207. Which provides the situation at a specific point of time like a
snapshot?
o Summary risk profile
208. What are few risk evaluation techniques?
o Risk models
o Expected monetary value
209. What is the primary objective of plan step in risk management?
o To prepare specific management responses to identified and
assessed threats and opportunities
210. What are the recommended responses for Threats?
o Avoid, reduce, transfer, fallback, share and accept
211. What are the recommended responses for Opportunities?
o Exploit, enhance, share and reject
212. Which is common response for both threats and opportunities?
o Share
213. A named individual who is responsible for the management,
monitoring and control of all aspects of a particular risk that is
assigned to them is ______.
o Risk Owner
214. An individual assigned to carry out a risk response action to
respond to a particular risk is _______.
o Risk Actionee
215. Proactive actions undertaken to reduce the probability and/or
the impact of the risk are known as ___________ type of risk
response.
o Reduce
216. A conscious and deliberate decision taken to just record the risk
and monitor the situation is known as ___________ type of risk
response.
o Accept
217. Risks can be communicated using which management
products?
o Checkpoint reports
o Highlight reports
o End stage reports
o End project report
o Lessons report
218. Information about who should be informed for risk
management activities is documented in which management
product?
219. A sum of money included within the project budget and set
aside to fund specific risk management responses is called as
_______.
o Risk budget
220. In a PRINCE2 project, who is accountable for all aspects of
project’s risk management?
o Executive
Change
221. What is the purpose of change theme?
o Identify, assess and control any potential and approved
changes to the baseline
222. The aim of issue and change control procedure is not to
_______________ but to ensure that every change is agreed by
relevant authority before it takes place.
o Prevent changes
223. What is the prerequisite for effective issue and change control?
o Configuration management which establishes the baselines
224. What is configuration management?
o Technical and administrative activity concerned with the
creation, maintenance and controlled change of project’s
products
225. What is subject to configuration management?
o A configuration item
226. What are examples of configuration items in a project?
o A component of the product
o A product itself
o A release
227. What is called as an event that has happened, was not planned
and requires management attention?
o Issue
228. What are the different types of issues in a PRINCE2 project?
o Request for change
o Off-specification
o Problem/Concern
229. Something that the project should provide but currently it is not
provided - is known as _____.
o Off specification
230. What are the management products used in issue, change and
configuration management?
o Configuration management strategy
o Configuration item records
o Product status accounts
o Daily log
o Issue register
o Issue report
231. Configuration management strategy is prepared by _______ in
_______ process.
232. Which document describes issue and change control
procedure?
o Configuration management strategy
233. Whose responsibility it is to review and approve request for
changes, off specifications?
o Project board
234. The sum of money that will be used to fund request for changes
and part of project budget is known as ______.
o Change budget
235. What information is typically recorded for each configuration
item?
o Status, version, variant and relationship between items
236. Which management product provides information about state
of the products within defined limits?
o Product status account
237. Which management product is used by project manager to
record problems/concerns that can be handled informally?
o Daily log
238. Which is known as project’s diary?
o Daily log
239. Which management product is used to capture and maintain
information on all of the issues that are being managed formally?
o Issue register
240. Which management product documents the description, impact
assessment and recommendations for an issue?
o Issue report
241. What are the steps in configuration management procedure?
o Planning  identification  control  status accounting 
verification and audit
242. What are the steps in issue and change management
procedure?
o Capture  examine  propose  decide  implement
243. Concession is a type of response applicable for _____________.
o Off specifications
244. Who determines the change budget and change authority?
o Executive
245. Which role provides advice on examining and resolving issues?
o Project assurance
246. Which role maintains configuration items and product status
account?
o Project support
Progress
247. Which theme establishes mechanisms to monitor and compare
actual achievements against was planned?
o Progress
248. Progress of a PRINCE2 project can be monitored at _______.
o Project, stage and work package
249. ___________ is a situation where it can be forecast that there
will be a deviation beyond the agreed tolerance levels.
o Exception
250. Time tolerances are documented in
o project level  project plan, stage level  stage plan, work
package level  work package
251. Cost tolerances are documented in
252. Scope tolerances are documented in
253. Risk tolerances are documented in
o project level risk management strategy, stage level 
stage plan, work package level  work package (when
compared to time, cost and scope, only project level risk
tolerances are documented differently in Risk management
strategy whereas for time, cost and scope, the project level
tolerances are documented in Project Plan)
254. Quality tolerances are documented in
o Project level  project product description, product level 
product descriptions
255. Benefit tolerances are documented in
o Business case
256. Which document contains information about project’s controls?
o Project initiation documentation
257. What is provided in PRINCE2 for progress control?
o Delegating authority from one level to another (four layers
of management)
o Dividing the project into management stages and
authorizing one stage at a time
o Time driven and event driven progress reporting
o Rising exceptions
258. If any forecast indicates that the project is likely to exceed
agreed project tolerances, the deviation should be referred to
________.
259. What is a management stage?
o Collection of activities and products whose delivery is
managed as a unit
260. What are the benefits of management stages?
o Provide review and decision points to assess project viability
at regular intervals
o Gives the ability to ensure that key decisions are made prior
to the detailed work is authorized
o Allow clarification on an identified external influence’s
impact
o Facilitate management by exception principle by delegating
authority to the project manager on a state-by-state basis
261. Every PRINCE2 project consists of at least ________
management stages.
o TWO
 Initiation - a mandatory stage which establishes a firm
basis and common understanding of the project
 one more management stage to cover the reminder of
the project
262. What is the relation between uncertainty and duration of
stage?
o Stages should be shorter when there is greater risk
263. What are the factors that can influence the duration of a stage?
o The planning horizon at any point of time
o The technical stages within the project
o Alignment with programme activities
o The level of risk
264. Technical stages can __________ but management stages
cannot ________.
o Overlap
265. What are the two types of progress controls offered in
PRINCE2?
o Event driven and time driven
266. Which management products can be used to establish baselines
for progress control?
o Project plan
o Stage plan
o Exception plan
o Work packages
267. Which management products assist the project manager in
reviewing progress?
o Daily log
o Issue register
o Product status account
o Quality register
o Risk register
268. Which management products are used for progress reporting?
o Checkpoint report
o Highlight report
o End stage report
o End project report
269. Checkpoint report is prepared by _______, in _________
process and its frequency is documented in _______.
o Team manager, Managing Product Delivery, Work package
270. Highlight reports are prepared by ______, in __________
process and frequency with distribution list is documented in
__________.
o Project manager, controlling a stage, communication
management strategy
271. End stage report is prepared by ______, in __________ process
and distribution list is documented in __________.
o Project manager, managing stage boundary, communication
management strategy
272. End project report is prepared by ______, in __________
process and distribution list is documented in __________.
o Project manager, Closing a project, communication
management strategy
273. If a work package is forecast to exceed its tolerances, the team
manager should inform project manager by rising _____.
o An issue.
274. If the forecast is for project tolerances to be exceeded, the
project board ______.
o No longer has authority to manage the project
275. Who provides project level tolerances?
276. Who provides stage level tolerances?
o Project board
277. Who authorizes work packages?
o Project manager (it is about who creates the Work Packages)
278. Who agrees on work packages with project manager?
o Team manager
279. Who will produce checkpoint reports?
o Team manager
Processes
280. Which process helps the project board prepare an answer for
the question ‘do we have a viable and worthwhile project’?
o Starting up
281. In PRINCE2 the trigger for a project is __________.
o Project mandate
282. As per PRINCE2, which process is considered as the official start
of the project?
o Initiating a project
283. After which process the project is authorized?
o Initiating a project (here authorized means the project
execution begins)
284. Which process can help in preventing poorly conceived projects
from ever being initiated?
o Starting up a project
285. What are the objectives of Starting up a project process?
o There is a business justification for initiating the project
o All the necessary authorities exist for initiating the project
o Sufficient information is available to define and conform
project scope
o The various ways in which project can be delivered are
evaluated and a project approach is selected
o Individuals are appointed
o The work required for initiation is planned
o Time is not wasted on initiating a project based on unsound
assumptions
286. Who provides project mandate that triggers a PRINCE2 project?
287. What are the activities that are carried out in Starting up a
Project process?
o Appoint the executive and project manager
o Capture previous lessons
o Design and appoint the project management team
o Prepare the outline business case
o Select the project approach and assemble project brief
o Plan the initiation stage
288. Appointment of _________ is a prerequisite to ensure that the
project is justified.
o Executive.
289. The project manager is appointed by __________.
o Executive
290. The outline business case is prepared by ___________, in
___________ process and is part of _____________.
o Executive, Starting up a Project, project brief
291. Which process enables project board to be accountable for the
project and exercise overall control?
o Directing a project
292. What are the objectives of directing the project process?
o There is authority to initiate the project
o There is authority to deliver project’s products
o Management direction and control are provided throughout
the project
o Corporate or programme management has an interface to
the project
o There is authority to close project
o Plans for realizing post project benefits are managed and
reviewed
293. Which document contains the information regarding two-way
flow of information between the project board and corporate or
programme management?
294. What are the activities undertaken in directing a project
process?
o Authorize initiation
o Authorize the project
o Authorize a stage or exception plan
o Give ad hoc direction
o Authorize project closer
295. Which documents help the project board to review and take
decision on initiating the project?
o Project brief, initiation stage plan
296. Which documents help the project board to review and take
decision on authorizing the project?
o Project Initiation Documentation and upcoming stage plan
297. Which process helps the project board to confirm whether the
project objectives have been achieved?
o Directing a project (Authorize project closer activity)
298. Which process starts when Project Manager requests to initiate
a project?
o Directing a project (It is PM requesting. This is done after
Starting Up a Project process. Board will use Directing a
Project process to review Project Brief, Initiation Stage Plan
and then decide whether Initiation Stage and process can be
authorized)
299. When resources are required for a project are obtained are
committed by the project board?
o While authorizing the project in directing a project process
300. Who will issue project closer notification?
o Project Board
301. Which process establishes solid foundation for the project?
o Initiating a project
302. What are the objectives of initiating a project process?
o To gain common understanding on:
 reasons for doing the project, the benefits expected
and associated risks
 scope of the project
 cost, time of the project
 project organization, roles and responsibilities
 quality management
 baselines and configuration management
 issue and risk management
 progress reviews
 monitoring and control mechanisms
 information needs
 tailoring the project
303. What are the activities undertaken in initiating a project
process?
o Prepare the risk management strategy
o Prepare the configuration management strategy
o Prepare the quality management strategy
o Prepare the communication management strategy
o Setup project controls
o Create the project plan
o Refine business case
o Assemble project initiation documentation
304. The ________ is an aggregation of many of the management
products created during the initiation and is used to gain
authorization for the project to proceed.
o Project initiation documentation
305. What is the purpose of controlling a stage process?
o Assign work to be done (Work Packages are created by PM
and assigned to Team Manager)
o Monitor work packages
o Dealing with issues and risks
o Reporting progress project board
o Taking corrective actions to ensure that stage remains
within tolerance
306. What is objective of controlling a stage process?
o Focused on stage delivery
o Control on risks and issues
o The Business Case is kept under review
307. ________ are used to define and control the work to be done.
o Work packages
308. What are the activities that are carried out in controlling a stage
process?
o Work packages:
 Authorize
 Review status
 Receive completed work packages
o Monitoring and reporting:
 Review the stage status
 Report highlights
o Issues:
 Capture and examine issues and risks
 Escalate issues and risks
 Take corrective action
309. When (for what situations) work packages are created?
o A stage is authorized
o An exception plan is approved (rework might be required)
o A request for change is approved (change in scope)
o Taking corrective action to resolve an issue or risk
310. Who will update configuration item records during a stage?
o Project support
311. Which report is prepared by the project manager during the
stage to report the stage progress?
o Highlight report
312. Which reports are received by the project manager during the
stage to review work package progress?
o Checkpoint report
313. If project manager forecast that stage tolerance is about to
exceed, project manager should ________.
o Raise an exception to project board
314. Which process provides the control the link between project
manager and team manager?
o Managing product delivery
315. What are the objectives of managing product delivery process?
o Work on products allocated to the team is authorized and
agreed
o team managers, team members and suppliers are clear
about what is to be produced with respect to scope, quality,
time and cost
o the planned products are delivered within tolerance
o provide progress information to the project manager
316. Which process obtains approvals for completed products from
the approver roles identified in product descriptions?
o Managing product delivery (getting approval is the team
manager’s job. PM will facilitate the Quality Reviews)
317. What activities are carried out in managing product delivery
process?
o Accept a work package
o Executive work package
o Deliver a work package
318. How does the team manager report progress about the work
packages to the project manager?
o By preparing and sending a checkpoint report
319. If team manager forecasts that the work package tolerance is
about to exceed, the team manager should ________.
o Raise an issue to the project manager
320. What is the purpose of managing stage boundary process?
o Provide sufficient information to the project board so that
they can review current stage, approve next stage plan,
review updated project plan, and conform continued
business justification
321. What are the objectives of managing stage boundary process?
o Assurance the project board about current stage delivery
o Prepare the stage plan for the next stage
o Review and update project initiation documentation (this
includes project plan, business case, strategies, registers
etc.)
o Provide sufficient and updated information to project board
to evaluate continued business justification
o In case of exceptions, prepare an exception plan
322. Managing stage boundary process is not used towards the end
of final management stage because __________.
o Closing a project process includes the activities to evaluate
and review the performance of final stage
323. What are the activities undertaken in managing a stage
boundary process?
o Plan the next stage
o Update the project plan
o Update the business case
o Report stage end
o Produce an exception plan
324. Closure activities are planned as part of _______.
o Stage plan for final stage
325. Which process provides a fixed point at which acceptance of
project’s product can be conformed?
o Closing a project
326. What are the objectives of closing a project process?
o Verify user acceptance for project’s products
o Ensure that the host site (the team or site that maintains
Project deliverables once the Project is complete) is able to
support the products once project team is disbanded
o Review the performance of the project against the baselines
o Assess any benefits that are already realized
o Ensure that there is a provision to address all open risks,
issues
327. Who will notify corporate or programme management that the
project has closed?
o Executive
328. What are the activities undertaken in closing a project process?
o Prepare planned closure
o Prepare premature closure
o Hand over products
o Evaluate the project
o Recommend project closure

PRINCE 2 Practice Questions

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PRINCE2® PRACTICE QUESTIONS

These are not multiple choice answers.

Direct answer for each question is given.

Defined Roles and Responsibilities

31. Which forms as a basis for effort estimates, resource

35. What is the purpose of Tailoring?

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