Prince2 - 1

Question 1

What is the first step in the recommended risk management procedure?
A. Assess
B. Identify
C. Implement
D. Plan

Answer 1

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

Question 2

Which statements about a project’s stakeholders are CORRECT?
1. A stakeholder is anyone who thinks they will be affected by a project.
2. Stakeholders require equal amounts of engagement by the project management team.
3. Stakeholders remain unchanged throughout the project.
4. A stakeholder may be internal or external to the corporate organization.
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4

Answer 2

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

Question 3

Identify the missing word in the following sentence.
A purpose of the [ ? ] theme is to control any unacceptable deviations from the project’s
objectives.
A. change
B. plans
C. progress
D. risk

Answer 3

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

Question 4

4. Which is a minimum requirement for applying the organization theme?
   A. To define the project assurance role of team managers
   B. To combine roles, where possible, to simplify the organization
   C. To appoint a business change manager as senior user when the project is part of a
   programme
   D. To define the approach to engaging with stakeholders

Answer 4

D. Correct. To be following PRINCE2, a project must, as a
minimum, define its approach to communicating and
engaging with stakeholders. Ref 7.2

Question 5

What is defined when deciding how to tailor PRINCE2 to suit the project?
A. When the project’s progress will be reviewed
B. Which of the six tolerance areas will be included
C. Which primary stakeholder interests will be represented
D. When the project’s outputs will be delivered

Answer 5

A. Correct. The purpose of tailoring is to ensure that
project controls are appropriate to the project’s scale,
complexity, importance, team capability and risk (e.g. the
reporting and reviewing frequency and formality). Ref 3.7

Question 6

Which statement about the ‘continued business justification’ principle is CORRECT?
A. The justification for compulsory projects does not need approval
B. There must be no change to the reasons for a project
C. A formal business case document is mandatory
D. The chosen option must provide value for money

Answer 6

D. Correct. Even compulsory projects should be
supported by business justification, even if only to
demonstrate that the chosen option represents value for
money.

Question 7

Which regular report provides the project board with a summary of stage status?
A. Lessons report
B. Product status account
C. Highlight report
D. Checkpoint report

Answer 7

C. Correct. A highlight report is used to provide the
project board with a summary of the stage status at
intervals it has defined. The project board uses the report
to monitor stage and project progress.

Question 8

Which statement about the project support role is CORRECT?
A. It can be performed by the project manager
B. It is an optional role for a PRINCE2 project
C. It produces checkpoint reports for the project manager
D. It can be combined with the project assurance role

Answer 8

A. Correct. The project manager performs the project
support role unless this is delegated to another
person/other people. Ref 7.2.1.9

Question 9

What must be produced, as a minimum requirement for applying the plans theme?
A. A hierarchy of all the products to be produced during a plan
B. A record of the issues that are being formally managed during a plan
C. A diagram showing the sequence of production of the planned products
D. A record of the major risks relating to the project plan

Answer 9

A. Correct. PRINCE2 requires that four products are
produced and maintained. This includes the product
breakdown structure: a hierarchy of all the products to
be produced during a plan. Ref 9.2
B. Incorrect. It is the issue register that

Question 10

Which is a purpose of a project brief?
A. To capture lessons from previous projects
B. To document a common understanding of the starting point for the project
C. To confirm that the project is able to deliver the detailed business case
D. To define the quality techniques to be applied during the project

Answer 10

B. Correct. An agreed project brief ensures that the
project has a commonly understood and well
-defined
start point.

Question 11

Which is an objective of the ‘managing product delivery’ process?
A. To sign off completed work packages
B. To ensure that the business case is kept under review
C. To report progress to the project board
D. To ensure that work on products is authorized

Answer 11

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

Question 12

In which process are team plans produced?
A. Initiating a project
B. Controlling a stage
C. Managing a stage boundary
D. Managing product delivery

Answer 12

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

Question 13

How is the ‘learn from experience’ principle applied?
A. By reviewing the management of previous projects
B. By defining the customer’s expectations of the project’s products
C. By defining cost tolerances for project objectives
D. By delegating responsibilities to a different level of management

Answer 13

A. Correct. When starting a project, previous or similar
projects should be reviewed to see if lessons could be
applied.

Question 14

Which product is a time-driven control?
A. End stage report
B. Exception report
C. Checkpoint report
D. Lessons report

Answer 14

C. Correct. Time
-driven controls take place at predefined
periodic intervals. The frequency and format of the
checkpoint reports will be agreed in the work package.
Ref 12.2.2
D. Incorrect. L

Question 15

When should the project board request a decision from corporate, programme management
or customer?
A. When the stage requires resources
B. If it is forecast that project level tolerance will be exceeded
C. If the senior supplier or senior user needs to be changed
D. When any request for change needs to be approved

Answer 15

B. Correct. The project board should refer to corporate,
programme management or customer if project level
tolerance is forecast to be exceeded because this
tolerance is set by corporate, programme management
or customer. R

Question 16

Which is a reason why the ‘defined roles and responsibilities’ principle must be applied?
A. Because each project will have unique outputs
B. Because more than one function may be involved in the project
C. Because projects may have duplicated or inconsistent objectives
D. Because stages provide senior management with control points

Answer 16

B. Correct. A project is typically cross
-functional and
agreeing roles and responsibilities ensures that the
people involved know what’s expected of them and what
to expect of others. Ref 3.3

Question 17

Which process is triggered by the project manager’s request to initiate a project?
A. Starting up a project
B. Initiating a project
C. Directing a project
D. Managing a stage boundary

Answer 17

C. Correct. Only the project board can authorize project
initiation, and its activities are covered in the ‘directing a
project’ process.

Question 18

Which is an objective of the ‘starting up a project’ process?
A. To confirm that there are no known restrictions that would prevent the project from
being delivered
B. To ensure that all team managers understand their responsibilities
C. To obtain approval for the project plan from corporate, programme management or
customer
D. To prepare the project initiation documentation for authorization to initiate the project

Answer 18

A. Correct. An objective of the ‘starting up a project’
process is to ensure time is not wasted on initiating any
projects that are based on unsound assumptions. Ref 14.2
B. Incorrect. The project management team is designed
during the ‘starting up a project’ process, but the actual team
managers may not be appointed until the ‘managing a stage
boundary’ process. Ref 14.4.3
C. Incorrect. The project plan is created in the ‘initiating a
project’ process and approved by the project board in the
‘directing a project’ process. Ref 16.4.7, 15.4.2
D. Incorrect. The project initiation documentation is prepared
in the ‘initiating a project’ process. Re

Question 19

Which principle is being applied when a project product description is produced?
A. Continued business justification
B. Focus on products
C. Learn from experience
D. Manage by stages

Answer 19

B. Correct. Producing the project product description
applies the ‘focus on products’ principle by clearly
defining the project’s product, the customer’s quality
expectations and acceptance criteria.

Question 20

Which is a minimum requirement for applying the risk theme?
A. A risk breakdown structure must be created
B. A risk budget must be established for managing risks
C. Identified threats and opportunities must be documented
D. Risk checklists must be used to ensure risks are identified

Answer 20

C. Correct. PRINCE2 requires that a risk register is used to
capture all identified threats and opportunities.

Question 21

Which statements apply to a stage plan?
1. It is produced for the project during the ‘initiating a project’ process.
2. It is produced close to the time when the planned events will take place.
3. It provides the basis for day-to-day control by the project manager.
4. It provides the basis for control by the project board.
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4

Answer 21

B. Correct.
(2) A stage plan is created towards the end of the
preceding stage as part of the ‘managing a stage
boundary’ process. It is produced close to the time when
the planned events will take place. Ref 9.2.1.2
(3) A stage plan is created at the level of detail needed to
enable the day-to-day control by the project manager.
Ref

Question 22

Which is a purpose of the benefits management approach?
A. To document the justification for undertaking a project
B. To summarize project performance to date for the project board to decide what action
to take next
C. To provide a schedule for measuring the achievement of benefits
D. To provide the reasons for the project, to put into the business case

Answer 22

C. Correct. The benefits management approach is used to
cover the assessment of benefits.

Question 23

Which is assumed to be the customer’s responsibility in the PRINCE2 customer/supplier
environment?
A. To specify the desired result
B. To provide the skills to deliver the desired result
C. To ensure the technical integrity of a project
D. To develop the project’s products

Answer 23

A. Correct. It is assumed that there will be a customer
who will specify the desired result and probably pay for
the project.

Question 24

Which is a purpose of the risk management approach?
A. To define the techniques to be used when assessing project risks
B. To summarize exposure to strategic, programme, project and operational risks
C. To recommend responses for each of the project risks
D. To identify suitable risk owners for each of the project risks

Answer 24

A. Correct. The risk management approach describes the
specific risk management techniques and standards to be
applied, and the responsibilities for achieving an
effective risk management procedure.

Question 25

. Which management product should always be updated when a product fails its quality
check?
A. Risk register
B. Issue register
C. Quality register
D. Lessons log

Answer 25

C. Correct. The quality register records the results of all
quality management activities.

Question 26

Identify the missing words in the following sentence.
The purpose of the [ ? ] process is to establish solid foundations for the project.
A. initiating a project
B. managing product delivery
C. directing a project
D. managing a stage boundary

Answer 26

A. Correct. The purpose of the ‘initiating a project’
process is to establish solid foundations for the project,
enabling the organization to understand the work that
needs to be done to deliver the project’s products before
committing to a significant spend. R

Question 27

Which two statements about tailoring are CORRECT?
1. Processes can be simplified or carried out in more detail.
2. Terminology can be changed to suit organizational standards.
3. Themes that are not relevant to the project can be excluded.
4. Project management team members can carry out any combination of roles.
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4

Answer 27

A. Correct.
(1) Processes can be combined or adapted. Ref 4.3.1
(2) Terminology can be changed to suit other standards
or policies. Ref 4.3.1
B, C, D. Incorrect.

Question 28

Which type of issue should be raised if a new product is required after a team has started
work?
A. A request for change
B. An off-specification
C. A problem
D. A concern

Answer 28

A. Correct. The product description should have been
baselined before work began. Therefore, this is a request
for change to a baselined product

Question 29

Which characteristic distinguishes a project from regular business operations?
A. It produces benefits
B. It introduces business change
C. It manages stakeholders
D. It incurs cost

Answer 29

B. Correct. Projects are the means by which we introduce
business change. When the change is implemented,
business as usual resumes (in its new form).

Question 30

Which process is used by a team manager to coordinate work on one or more of the
project’s products?
A. Initiating a project
B. Controlling a stage
C. Managing a stage boundary
D. Managing product delivery

Answer 30

D. Correct. The ‘managing product delivery’ process
enables the team manager(s) to coordinate an area of
work that will deliver one or more of the project’s
products.

Question 31

Who does the senior user represent when making decisions?
A. The people or organizations that design the project’s products
B. Corporate, programme management or customer
C. Project delivery teams
D. The people or organizations that benefit from using the project’s product

Answer 31

D. Correct. The senior user makes decisions on behalf of
those who will benefit from the use of the project’s
products.

Question 32

. What is an output?
A. Any of the project’s specialist products
B. The result of the change derived from using the project’s products
C. The measurable improvement resulting from an outcome
D. A negative outcome

Answer 32

A. Correct. This is an output
- a specialist product that is
handed over to a user (or users). Note that management
products are not outputs but are created solely for the
purpose of managing the project. R

Question 33

What is established within the ‘initiating a project’ process?
A. The different ways that the project product can be delivered
B. The formats for communicating project information to stakeholders
C. That all of the information to develop the project brief is available
D. That any constraints which could affect the project have been removed

Answer 33

B. Correct. An objective of the ‘initiating a project’
process is to ensure that there is common understanding
of who needs information, in what format, and at what
time.

Question 34

Which roles CANNOT be combined with the role of project assurance?
1. Project manager.
2. Project support.
3. Senior user.
4. Executive.
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4

Answer 34

A. Correct.
(1) Project assurance must be independent of the project
manager. Ref 7.2.1.10, tab 6.1
(2) Project assurance must be independent of project
support.

Question 35

What must the project board do, as a minimum requirement for applying the change theme?
A. Establish a change budget
B. Request a product status account
C. Define a change authority
D. Agree acceptable corrective actions

Answer 35

C. Correct. To be following PRINCE2, a project must, as a
minimum, define the roles and responsibilities for
change control, including a defined change authority

Question 36

Which statement describes a threat to a project?
A. An uncertain event that could have a negative impact on objectives
B. An uncertain event that could have a favourable impact on objectives
C. An event that has occurred resulting in a negative impact on objectives
D. An event that has occurred resulting in a favourable impact on objectives

Answer 36

A. Correct. A threat may have a negative impact on the
project objectives. R

Question 37

Which aspect of project performance must be managed in order to have a clear
understanding of what the project is to deliver?
A. Timescale
B. Scope
C. Risk
D. Costs

Answer 37

B. Correct. Clear agreement on scope will avoid users and
suppliers making incorrect assumptions about what is to
be delivered.

Question 38

Which is one of the four integrated elements within PRINCE2?
A. Quality
B. Role descriptions
C. Processes
D. Product descriptions

Answer 38

C. Correct. The integrated elements are the principles,
themes, processes and the project environment.

Question 39

What should be provided by corporate, programme management or customer before the
‘starting up a project’ process commences?
A. A project brief with details outlining the project approach
B. Sufficient information to identify the prospective executive
C. The project initiation documentation
D. Authority to initiate a project

Answer 39

B. Correct. The project mandate, provided by corporate,
programme management or customer, should include
sufficient information to identify at least the prospective
executive of the project board.

Question 40

How is the ‘manage by exception’ principle applied?
A. By dividing the project into a minimum of two management stages
B. By setting controls to warn the higher level of management of potential problems
C. By ensuring that the project continues to be desirable, viable and achievable
D. By providing lessons so that mistakes made in previous projects do not happen

Answer 40

B. Correct. Accountability is established by setting up
controls so that if tolerances are forecast to be exceeded,
the next higher management layer can be consulted and
decide how to proceed.

Question 41

Which is a responsibility of the managing level within the project management team?
A. To set project-level tolerances
B. To approve the stage completion of each stage
C. To ensure that the products are produced within the constraints agreed with the project
board
D. To appoint the roles in project management team

Answer 41

C. Correct. The managing layer of the project is the
project manager
, and the project manager has to ensure
that the project produces the required products in
accordance with the tolerance levels set by the project
board. R

Question 42

What is a risk cause?
A. A negative consequence of a threat occurring
B. An area of uncertainty that could create a problem
C. A positive consequence of an exploited opportunity
D. A known situation which creates uncertainty

Answer 42

D. Correct. This is describing a risk cause. The risk cause
should describe the source of the risk, i.e. the situation
that gives rise to the risk. These are often referred to as
risk drivers.

Question 43

Which is a purpose of the ‘closing a project’ process?
A. To inform the project board that the final stage is about to start
B. To provide a fixed point at which acceptance of the project product is confirmed
C. To provide the project board with sufficient information to confirm continued business
justification
D. To define the handover procedures for the project’s products

Answer 43

B. Correct. A purpose of the ‘closing a project’ process is
to provide a fixed point at which acceptance of the
project product is confirmed.

Question 44

Which is a benefit of applying the ‘manage by stages’ principle?
A. The project management team will understand the tolerances allowed
B. The project management team will understand the customer’s expectations
C. The project will have review and decision points so that progress can be assessed
D. The key stakeholders in the project will have representation on the project board

Answer 44

C. Correct. The ‘manage by stages’ principle provides
review and decision points, so the project board can
assess the viability of the project. R

Question 45

Which is a benefit of using PRINCE2?
A. It provides established and proven best practice and governance for project
management
B. It includes techniques for critical path analysis and earned value analysis
C. It enables a project manager to be accountable for the success of a project
D. It prevents any changes after the scope of a project has been agreed

Answer 45

A. Correct. PRINCE2 is based on established and proven
best practice and governance for project management.
Ref 1

Question 46

Which is an objective of the ‘closing a project’ process?
A. To check that all the project’s products have been accepted by the users
B. To prepare for the final stage of the project
C. To capture the customer’s quality expectations
D. To ensure that all benefits have been achieved

Answer 46

A. Correct. A purpose of the ‘closing a project’ process is
to verify user acceptance of a project’s products.

Question 47

What must be used, as a minimum requirement for applying the progress theme?
A. Stage authorization
B. Highlight reporting
C. Work package authorization
D. Checkpoint reporting

Answer 47

A. Correct. To be following PRINCE2, a project must, as a
minimum, be managed by stages (PRINCE2’s ‘manage by
stages’ principle).

Question 48

What must be recorded in the quality management approach, as a minimum requirement
for applying the quality theme?
A. The quality tools and techniques to be used
B. The project’s approach to quality planning
C. The approach to managing project assurance
D. The definition of the quality records required

Answer 48

B. Correct. A purpose of the ‘directing a project’ process is
to establish the level of control required by the project
board after initiation. R

Question 49

Which is a purpose of the ‘directing a project’ process?
A. To provide the information required to initiate a project
B. To enable overall control of a project by the project board
C. To establish the level of control required after initiation
D. To provide sufficient information to approve the next stage plan

Answer 49

B. Correct. A purpose of the ‘directing a project’ process is
to establish the level of control required by the project
board after initiation.

Question 50

Identify the missing words in the following sentence.
PRINCE2 requires that the business justification is formally verified by [ ? ] at stage
boundaries.
A. corporate, programme management or customer
B. the project board
C. project support
D. the change authority

Answer 50

B. Correct. In PRINCE2, the business justification is
developed at the beginning of the project and reviewed
and updated throughout the life of the project. It is
formally verified by the project board at each key
decision point, such as at stage boundaries, and is
confirmed throughout the period that the benefits are
realized. R

Question 51

Which is a purpose of the organization theme?
A. To set the tolerance on the cost of resources
B. To plan the training needed for the delivery of the project
C. To define the structure of accountability and responsibilities on the project
D. To implement the controls required to manage by exception

Answer 51

C. Correct. The purpose of the organization theme is to
define and establish the project’s structure of
accountability and responsibilities (the who?). R

Question 52

Which is a purpose of the change theme?
A. To prevent changes to what was agreed in the project initiation documentation
B. To ensure any potential changes to baselined products are controlled
C. To assess and control a project’s threats and opportunities
D. To identify changes needed to the project as a result of acting on lessons

Answer 52

B. Correct. The aim of change control is not to prevent
change, it is to ensure that every change is agreed by the
relevant authority before it takes place

Question 53

Identify the missing word in the following sentence.
Quality [ ? ] defines the type of quality methods the project will use.
A. assurance
B. control
C. planning
D. tolerance

Answer 53

C. Correct. It is a project responsibility, as part of quality
planning, to define the type of quality methods the
project will use and include this in the project’s quality
management approach, (although this may refer back to
the corporate organization’s quality management
system). R

Question 54

4. Which is a purpose of the ‘starting up a project’ process?
   A. To ensure that the prerequisites for initiating the project are in place
   B. To establish whether the project plan can meet the required target dates
   C. To assemble the project initiation documentation so the project can be initiated
   D. To confirm to corporate, programme management or customer that quality expectations
   will be met

Answer 54

A. Correct. The purpose of the ‘starting up a project’
process is to ensure that the question “do we have a
viable and worthwhile project?” can be answered. This is
achieved by ensuring that the prerequisites for initiating
the project are in place

Question 55

Which statement about management stages is CORRECT?
A. A project can be scheduled without management stages
B. There can be more than one delivery step within a management stage
C. Several management stages can be scheduled to run at the same time
D. Delivery steps and management stages should end together

Answer 55

B. Correct. There may be more than one delivery step per
management stage.

Question 56

Which is a purpose of the quality theme?
A. To define how the project will ensure that its products are fit for purpose
B. To define the procedures for the control and modification of project products
C. To establish mechanisms to judge whether the project remains desirable and achievable
D. To enable the assessment of continuing project viability

Answer 56

A. Correct. The quality theme defines the PRINCE2
approach to ensuring that the project’s products meet
business expectations.

Question 57

Which is an objective of the ‘managing a stage boundary’ process?
A. To enable the project board to commit resources and expenditure required for the
initiation stage
B. To review and, if necessary, update the project initiation documentation
C. To act as a break between those managing the project and those creating products
D. To ensure a periodic review is carried out to approve the products created within the
completed stage

Answer 57

B. Correct. Reviewing and, if necessary, updating the
project initiation documentation (in particular the
business case, project plan, project approach, strategies,
project management team structure and role
descriptions) is an objective of the ‘managing a stage
boundary’ process. R

Question 58

Which is a task of ‘defining and analyzing products’?
A. Design the plan
B. Create the product flow diagram
C. Analyze the risks
D. Prepare the schedule

Answer 58

B. Correct. This is a task of ‘defining and analyzing
products’. R

Question 59

Which activity can take place within the ‘managing a stage boundary’ process?
A. Produce highlight reports
B. Take corrective action within stage tolerances
C. Produce an exception plan
D. Authorize a stage plan for the next stage

Answer 59

C. Correct. In response to an exception report, the project
board may request that the current stage (and possibly
the project) is re
-planned. The output from re
-planning is
an exception plan which is produced within the
‘managing a stage boundary’ process.