The Foundation Exam 1

Question 1

1 Which is one of the six aspects of project performance that needs to be managed?

a) Accuracy
b) Reliability
c) Scope
d) Ease of use

Answer 1

1 Syllabus Topic:OV0101 - Overview and Principles
Correct Answer:C
Objective:LL1 - Recall the six aspects of project performance to be managed.

a) Incorrect. May be an acceptance criterion, but this is NOT one of the six aspects of
project performance that need to be managed. The six aspects are cost, timescale,
scope, quality, risk and benefits. Ref 1.5.2
b) Incorrect. May be an acceptance criterion, but this is NOT one of the six aspects of
project performance that need to be managed. The six aspects are cost, timescale,
scope, quality, risk and benefits. Ref 1.5.2
c) Correct. One of the six aspects, together with costs, timescales, quality, risk and
benefits. Ref 1.5.2
d) Incorrect. May be an acceptance criterion, but this is NOT one of the six aspects of
project performance that need to be managed. The six aspects are cost, timescale,
scope, quality, risk and benefits. Ref 1.5.2

Question 2

2 What theme ensures the project is desirable, viable and achievable?

a) Organization
b) Progress
c) Business Case
d) Risk

Answer 2

2 Syllabus Topic:BC0201 - Business Case Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of the Business Case theme.

a) Incorrect. The Organization theme defines and establishes the project’s structure of
accountability and responsibilities. Ref 5.1
b) Incorrect. The Progress theme establishes mechanisms to monitor and compare actual
achievements against those planned and provides a forecast for the project’s continued
viability. Ref 10.1
c) Correct. The Business Case theme drives decision-making throughout the project and is
used to assess if the project remains viable and benefits can be realized. Ref 4.1
d) Incorrect. The Ris

Question 3

3 What process is triggered by the Project Manager’s request to initiate a project?

a) Starting up a Project
b) Initiating a Project
c) Directing a Project
d) Managing a Stage Boundary

Answer 3

3 Syllabus Topic:DP0203 - Directing a Project Process
Correct Answer:C
Objective:LL2 - Understand the context of the Directing a Project process.

a) Incorrect. The Starting up a Project process prepares for the authorization of the
initiation stage. The request to initiate the project is an action carried out during the
Starting up a Project process. Ref 12.1
b) Incorrect. The Initiating a Project process prepares documentation to be submitted to the
Project Board for project authorization, but the actual authorization comes from the
Directing a Project process. Ref 14.3
c) Correct. Only the Project Board can authorize project initiation, and its activities are
covered in the Directing a Project process. Ref 13.3
d) Incorrect. The Managing a Stage Boundary process prepares material to request
authorization of a stage from the Project Board. Ref 17.1

Question 4

4 The purpose of which theme is to establish mechanisms to monitor and compare actual
achievements against those planned?

a) Business Case
b) Change
c) Progress
d) Quality

Answer 4

4 Syllabus Topic:PG0202 - Progress Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of the Progress theme.

a) Incorrect. The purpose of the Business Case theme is to establish mechanisms to judge
whether the project is desirable, viable and achievable as a means to support decision
making in its investment. Ref 4.1
b) Incorrect. The purpose of the Change theme is to identify, assess and control any
potential and approved changes to the baseline. Ref 9.1
c) Correct. The purpose of the Progress theme is to establish mechanisms to monitor and
compare actual achievements against those planned; provide a forecast for the project
objectives and the project’s continued viability, and control any unacceptable deviations.
Ref 10.1
d) Incorrect. The purpose of the Quality theme is to define and implement the means by
which the project will create and verify products that are fit for purpose. Ref 6.1

Question 5

5 Which is an objective of the Closing a Project process?

a) Check that all the project’s products have been accepted by the users
b) Prepare for the final stage of the project
c) Capture the customer’s quality expectations
d) Ensure that all benefits have been achieved

Answer 5

5 Syllabus Topic:CP0202 - Closing a Project Process
Correct Answer:A
Objective:LL2 - Understand the objectives of the Closing a Project process.

a) Correct. To verify user acceptance of a project’s products. Ref 18.2
b) Incorrect. The Closing a Project process occurs during the final stage, which is
prepared during the Managing a Stage Boundary process, as for any other stage, except
for the initiation stage. Ref 18.3
c) Incorrect. The customer’s quality expectations are defined and agreed early in the
Starting up a Project process. The expectations are captured in discussions with the
customer (business and user stakeholders) and then refined for inclusion in the Project
Product Description. Ref 12.4.4
d) Incorrect. NOT all benefits may have been achieved before the project closes. Some will
be measured post-project as part of a benefits review. Ref 18.4.3

Question 6

6 Identify the missing words in the following sentence.
A purpose of the Managing a Stage Boundary process is to provide the Project Board with
sufficient information so that it can approve the [ ? ] for the next stage.

a) Work Packages
b) Exception Report
c) Stage Plan
d) Project Brief

Answer 6

6 Syllabus Topic:SB0201 - Managing a Stage Boundary Process
Correct Answer:C
Objective:LL2 - Understand the purpose of the Managing a Stage Boundary process.

a) Incorrect. Work Packages are authorized by the Project Manager during the Controlling
a Stage process. Ref 15.4.1
b) Incorrect. An Exception Report may trigger the Managing a Stage Boundary process if
an Exception Plan is required. Ref 15.4.7
c) Correct. A purpose of the Managing a Stage Boundary process is to provide sufficient
information to the Project Board, so that it can review the success of the current stage
and approve the next Stage Plan. Ref 17.1
d) Incorrect. The Project Brief is approved by the Project Board following the Starting up a
Project process, and before the Initiating a Project process. Ref 13.4.1

Question 7

7 Which theme provides information on what is required, how it will be achieved and by whom?

a) Organization
b) Plans
c) Business Case
d) Quality

Answer 7

7 Syllabus Topic:PL0201 - Plans Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of the Plans theme.

a) Incorrect. The purpose of the Organization theme is to define and establish the project’s
structure of accountabilities and responsibilities. Ref. 5.1
b) Correct. Planning provides all personnel in a project with information on what is required,
how it will be achieved and by whom, using what specialist equipment and resources,
when events will happen and whether targets are achievable. Ref 7.1
c) Incorrect. The Business Case is used to document the justification for undertaking the
project. Ref. 4.1
d) Incorrect. The purpose of the Quality theme is to define and implement the means by
which the project will create and verify products that are fit-for-purpose. Ref. 6.1

Question 8

8 Which is recommended as a possible risk response type for an opportunity?

a) Reduce
b) Transfer
c) Reject
d) Fallback

Answer 8

8 Syllabus Topic:RK0102 - Risk Theme
Correct Answer:C
Objective:LL1 - Recall the risk response types and whether they are used to respond to a
threat or an opportunity.

a) Incorrect. Reduce is a proactive action taken to reduce the probability or the impact of a
threat occurring, by performing some form of control. Ref Table 8.2
b) Incorrect. Transfer is where a third party takes on responsibility for some of the financial
impact of a threat. Ref Table 8.2
c) Correct. Reject is where a conscious and deliberate decision is taken NOT to exploit or
enhance an opportunity, having discerned that this is more economical than to attempt
an opportunity response action. Ref Table 8.2
d) Incorrect. Putting in place a fallback plan for the actions that will be taken to reduce the
impact of a threat should it occur. This is a reactive form of reduce response which has
no impact on likelihood. Ref Table 8.2

Question 9

9 Basing projects on a ‘management by exception’ principle provides which benefit?

a) Promotes consistency of project work and staff mobility
b) Provides a common language
c) Clarity of what a project will deliver, why, when and by whom
d) Efficient and cost-effective use of management time

Answer 9

9 Syllabus Topic:OV0202 - Overview and Principles
Correct Answer:D
Objective:LL2 - Understand the seven principles.

a) Incorrect. Consistency of project work is a benefit derived from the use of PRINCE2
project documentation and processes. It facilitates staff mobility between projects and
reduces the impact of personnel changes/handovers. Ref 1.7
b) Incorrect. PRINCE2 is widely recognized and understood, and therefore provides a
common vocabulary for project participants. A common vocabulary is NOT a benefit
provided by the management by exception principle. Ref 1.7 / 2.5
c) Incorrect. A PRINCE2 project’s product focus provides the benefit of clarifying (for all
parties) what a project will deliver, why, when, by whom and for whom. Ref 1.7
d) Correct. PRINCE2 is based on a ‘management by exception’ framework, providing for
efficient and economic use of management time (whether at corporate, programme,
Project Board or project management level). It reduces their time burden without
removing their control by ensuring decisions are made at the right level in the
organization. Ref 1.7 / 2.5

Question 10

10 Identify the missing words in the following sentence.
The purpose of the [ ? ] process is to establish solid foundations for the project, enabling the
organization to understand the work that needs to be done to deliver the project’s products.

a) Initiating a Project
b) Starting up a Project
c) Directing a Project
d) Managing a Stage Boundary

Answer 10

10 Syllabus Topic:IP0201 - Initiating a Project Process
Correct Answer:A
Objective:LL2 - Understand the purpose of the Initiating a Project process.

a) Correct. The purpose of the Initiating a Project process is to establish solid foundations
for the project, enabling the organization to understand the work that needs to be done
to deliver the project’s products before committing to a significant spend. Ref 14.1
b) Incorrect. The purpose of the Starting up a Project process is to ensure that the
prerequisites for initiating a project are in place by answering the question: do we have a
viable and worthwhile project? Ref 12.1
c) Incorrect. The purpose of the Directing a Project process is to enable the Project Board
to be accountable for the project’s success by making key decisions and exercising
overall control while delegating day-to-day management of the project to the Project
Manager. Ref 13.1
d) Incorrect. The purpose of the Managing a Stage Boundary process is to enable the
Project Board to be provided with sufficient information by the Project Manager so that it
can review the success of the current stage, approve the next Stage Plan, review the
updated Project Plan, and confirm continued business justification and acceptability of
the risks. Ref 17.1

Question 11

11 Which is a purpose of the Managing Product Delivery process?

a) Controls the link between the Project Manager and the Team Manager(s)
b) Tracks the progress of a stage with the help of Checkpoint Reports
c) Provides a link between the work of the Project Manager and the Project Board
d) Maintains a focus on the delivery of benefits throughout the stage

Answer 11

11 Syllabus Topic:MP0201 - Managing Product Delivery Process
Correct Answer:A
Objective:LL2 - Understand the purpose of the Managing Product Delivery process.

a) Correct. The Managing Product Delivery process places formal requirements on
accepting, executing and delivering project work. Ref 16.1
b) Incorrect. This is the role of the Project Manager in the Controlling a Stage process.
Ref 15.4.4
c) Incorrect. This is an objective of the Controlling a Stage process. Ref 15.1
d) Incorrect. This is the role of the Project Manager in the Controlling a Stage process. Ref
15.2

Question 12

12 Which role is responsible for authorizing and monitoring work to be completed and for taking
corrective action within a stage?

a) Project Manager
b) Project Support
c) Project Assurance
d) Team Manager

Answer 12

12 Syllabus Topic:CS0203 - Controlling a Stage Process
Correct Answer:A
Objective:LL2 - Understand the context of the Controlling a Stage process.

a) Correct. The Project Manager is responsible for controlling the day-to-day activities of
the stage. Ref 15.3
b) Incorrect. Project Support provides administrative support to the Project Manager, but is
NOT responsible for authorizing the work. Ref 5.3.2.8
c) Incorrect. Project Assurance reviews the activities of the stage, but is NOT responsible
for authorizing the work. Ref 5.3.2.3
d) Incorrect. The Team Manager agrees work with the Project Manager to be delivered as
part of a Work Package. Ref 5.3.2.7

Question 13

13 Which fact is true of Project Assurance but not quality assurance?

a) Responsible for monitoring the conduct of the project
b) Independent of the Project Manager
c) Appointed as part of the project management team
d) Responsible for reviewing the project for compliance with corporate standards

Answer 13

13 Syllabus Topic:QU0202 - Quality Theme
Correct Answer:C
Objective:LL2 - Understand the difference between quality assurance and Project Assurance.

a) Incorrect. Both Project Assurance and quality assurance are responsible for monitoring
the project’s conduct. Project Assurance reports to the project’s stakeholders. Quality
assurance reports to the wider community. Ref 6.2.6
b) Incorrect. They are both independent of the Project Manager. Ref 6.2.6
c) Correct. Quality assurance is a function within the organization. Project Assurance is a
temporary role within the project management team. Ref 6.2.6
d) Incorrect. Both Project Assurance and quality assurance are responsible for assuring
that applicable standards are being used. Ref 6.2.6

Question 14

14 Which is NOT a characteristic of a project?

a) Has a higher degree of risk than business as usual
b) Involves people with different skills introducing a change that will impact others outside of the
team
c) Has a lifespan that usually covers the delivery of the desired outcomes and the realization of
all the expected benefits
d) A temporary management structure created for the implementation of business products

Answer 14

14 Syllabus Topic:OV0203 - Overview and Principles
Correct Answer:C
Objective:LL2 - Understand the characteristics of a project.

a) Incorrect. Projects introduce threats and opportunities over and above those we typically
encounter in the course of stable business operations. Projects are more risky. Ref 1.3
b) Incorrect. The project environment involves a temporary team of people with different
skills working together to introduce change within the business environment. Ref 1.3
c) Correct. These are characteristics of a programme. Whilst projects do deliver outcomes
and benefits, many will NOT be realized until after the project has closed. Ref 19.4
d) Incorrect. Projects are temporary in nature. Once the change has been implemented the
need for the project is removed. Ref 1.3

Question 15

15 Which product forms the ‘contract’ between the Project Manager and the Project Board for the
project?

a) Project Plan
b) Project Product Description
c) Project Initiation Documentation
d) Project Brief

Answer 15

15 Syllabus Topic:IP0204 - Initiating a Project Process
Correct Answer:C
Objective:LL2 - Understand the purpose of the Project Initiation Documentation.

a) Incorrect. A Project Plan states how and when the objectives will be achieved but is NOT
an agreement on what is to be delivered. That is defined in the Project Initiation
Documentation. Ref A.16
b) Incorrect. The Project Product Description is used in the Closing a Project process to
verify that the project has delivered what was expected, but is NOT a contract between
the Project Manager and the Project Board. Ref A.21
c) Correct. The Project Initiation Documentation forms the basis for the management and
overall success of the project and as such is the ‘contract’ between the Project Manager
and the Project Board. Ref A.20
d) Incorrect. Information in the Project Brief is NOT confirmed or detailed enough to form a
firm agreement and, after use in creating the Project Initiation Documentation, it is NOT
maintained. Ref A.19

Question 16

16 Which is an objective of the Managing a Stage Boundary process?

a) Enable the Project Board to commit resources and expenditure required for the initiation stage
b) Review and, if necessary, update the Project Initiation Documentation
c) Provides a break between those managing the project from those creating products
d) Ensure a periodic review is held to approve the products created within the completed stage

Answer 16

16 Syllabus Topic:SB0202 - Managing a Stage Boundary Process
Correct Answer:B
Objective:LL2 - Understand the objectives of the Managing a Stage Boundary process.

a) Incorrect. Commencement of the initiation stage is approved by the Project Board during
the Directing a Project process, at the end of start up. This is NOT a stage boundary.
Ref 13.4.1
b) Correct. Review and, if necessary, update the Project Initiation Documentation (in
particular the Business Case, Project Plan, project approach, strategies, project
management team structure and role descriptions). Ref 17.2
c) Incorrect. It is the Managing Product Delivery process that provides the break between
the Project Manager and the teams delivering the products. Ref 16.1
d) Incorrect. Products are assessed and approved as and when they are completed during
the Managing Product Delivery process. These quality checks are NOT left until the end
of the stage. Ref 16.4.2

Question 17

17 How should a Team Manager escalate a suggestion for an improvement to a product?

a) Include details in a Checkpoint Report
b) Include details in a Highlight Report
c) Raise an issue
d) Raise an Exception Report

Answer 17

17 Syllabus Topic:CH0204 - Change Theme
Correct Answer:C
Objective:LL2 - Understand the recommended steps in the issue and change control
procedure.

a) Incorrect. This is a request for change. Although a Team Manager may refer to it in a
Checkpoint Report it is NOT the vehicle to deal with a change. Ref 9.3.3
b) Incorrect. The Team Manager does NOT produce Highlight Reports. Ref 10.3.3.4
c) Correct. A Team Manager will raise it as an issue, but it is the Project Manager who
determines whether this should be dealt with as a formal Issue Report. Ref 9.3.3
d) Incorrect. The Team Manager does NOT raise Exception Reports. Ref 10.3.4

Question 18

18 Which is a purpose of the Closing a Project process?

a) Define the procedure for handing over products
b) Provide a fixed point at which acceptance for the project product is confirmed
c) Define formal requirements for the acceptance, execution and delivery of project work
d) Confirm all project benefits have been achieved

Answer 18

18 Syllabus Topic:CP0201 - Closing a Project Process
Correct Answer:B
Objective:LL2 - Understand the purpose of the Closing a Project process.

a) Incorrect. This is done in the Initiating a Project process as part of defining the
Configuration Management Strategy. Ref 14.4.2
b) Correct. This is a purpose of the Closing a Project process. Ref 18.1
c) Incorrect. This is a purpose of the Managing Product Delivery process. Ref 16.1
d) Incorrect. NOT all project benefits will have been achieved at project closure. Ref 18.4.4

Question 19

19 Which is an objective of the Starting up a Project process?

a) Confirm there are no known restrictions that would prevent the project from being delivered
b) Ensure all Team Managers understand their responsibilities
c) Get approval for the Project Plan from corporate or programme management
d) Prepare the Project Initiation Documentation for authority to initiate the project

Answer 19

19 Syllabus Topic:SU0202 - Starting up a Project Process
Correct Answer:A
Objective:LL2 - Understand the objectives of the Starting up a Project process.

a) Correct. An objective of the Starting up a Project process is to ensure time is NOT
wasted on initiating any projects that are based on unsound constraints etc. Ref 12.2
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 12.4.3
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 14.4.6 / 13.4.2
d) Incorrect. The Project Initiation Documentation is prepared in the Initiating a Project
process. Ref 14.3

Question 20

20 Which process is used to provide an interface with corporate or programme management?

a) Managing Product Delivery
b) Directing a Project
c) Controlling a Stage
d) Managing a Stage Boundary

Answer 20

20 Syllabus Topic:DP0202 - Directing a Project Process
Correct Answer:B
Objective:LL2 - Understand the objectives of the Directing a Project process.

a) Incorrect. This process is used by Team Manager(s) to communicate with the Project
Manager within the Controlling a Stage process. Ref 16.1
b) Correct. This process ensures that corporate or programme management has an
interface to the project. It is a key role for the Project Board to engage with corporate or
programme management and to act as a communication channel. Ref 13.2 / 13.3
c) Incorrect. The Project Manager should report to and receive information from the Project
Board within this process. Ref 15.1
d) Incorrect. Products from this process will be provided to the Project Board in the
Directing a Project process for it to communicate with corporate/programme
management. Ref 17.1

Question 21

21 Which is NOT a purpose of an End Project Report?

a) Compare project achievements against what was originally agreed
b) Record information that will help future projects
c) Prompt the Project Board to authorize the next stage
d) Pass on details of any ongoing risks for those who will maintain and operate the finished
product

Answer 21

21 Syllabus Topic:PG0207.2 - Progress Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of an End Project Report.

a) Incorrect. The End Project Report includes a comparison of project performance against
the original Project Initiation Documentation. Ref A.8.1
b) Incorrect. An End Project Report includes the Lessons Report which will help future
projects by their learning from these lessons. Ref A.8.1
c) Correct. The Project Board would use the End Stage Report in tandem with the next
Stage Plan to decide what action to take with the project: for example, authorize the
next stage, amend the project scope, or stop the project. Ref A.9.1
d) Incorrect. The End Project Report includes any follow-on action recommendations, which
will contain any risks for the attention of those who will maintain and operate the finished
product. Ref A.8.1

Question 22

22 Identify the missing word(s) in the following sentence.
If a baselined product requires modification, the [ ? ] procedure should be applied in order to
manage the modification.

a) risk management
b) exception
c) issue and change control
d) quality control

Answer 22

22 Syllabus Topic:CH0201 - Change Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of the Change theme.

a) Incorrect. This procedure assesses and controls uncertainty, NOT change. Ref 8.3.5
b) Incorrect. This procedure monitors and evaluates achievements, NOT change. Ref 10.3.4
c) Correct. This is the procedure that identifies and controls changes to baselined
products. It is part of the Change theme. Ref 9.1
d) Incorrect. This procedure defines and produces products that are fit-for purpose. Ref
6. 3.2

Question 23

23 Which is a purpose of a Project Brief?

a) Describe an agreed position from which the project can be started
b) Describe the information needs of the project’s stakeholders
c) Describe the configuration management procedure that will be used by the project
d) Describe the reporting requirements of the Project Board

Answer 23

23 Syllabus Topic:SU0204.1 - Starting up a Project Process
Correct Answer:A
Objective: LL2 - Understand the purpose of the Project Brief.

a) Correct. One of the purposes of the Project Brief is to ensure the project has a welldefined
start point. Ref A.19.1
b) Incorrect. This is a purpose of the Communication Management Strategy. Ref A.4.1
c) Incorrect. This is a purpose of the Configuration Management Strategy. Ref A.6.1
d) Incorrect. This is part of setting up the project controls, performed in the Initiating a
Project process, NOT the Project Brief. Ref A.20.1 / 14.4.5

Question 24

24 Which is one of the four integrated elements within PRINCE2?

a) Quality
b) Role descriptions
c) Processes
d) Product Descriptions

Answer 24

24 Syllabus Topic:OV0103 - Overview and Principles
Correct Answer:C
Objective:LL1 - Recall the four integrated elements.

a) Incorrect. Quality is an aspect of project performance that needs to be managed. The
integrated elements are the seven principles, seven themes, seven processes and
tailoring. Ref 1.5.3
b) Incorrect. Role descriptions help to agree and communicate project management team
roles and responsibilities. The integrated elements are the seven principles, seven
themes, seven processes and tailoring. Ref 1.5.3
c) Correct. Principles, themes, processes and tailoring are the four integrated elements.
Ref 1.5.3
d) Incorrect. Product Descriptions support the focus on products but the four integrated
elements are the seven principles, seven themes, seven processes and tailoring.
Ref 1.5.3

Question 25

25 Which of the following statements apply to a Stage Plan?

1. Is produced with the knowledge of earlier stages
2. Provides the basis for control by the Project Board
3. Is produced close to the time when the planned events will take place
4. Provides the basis for day-to-day control by the Project Manager

a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4

Answer 25

25 Syllabus Topic:PL0202 - Plans Theme
Correct Answer:C
Objective:LL2 - Understand the levels of plan, their purpose and the interrelationship between
them.

a) Incorrect. (4) A Stage Plan is created at the level of detail needed to enable the day-today
control by the Project Manager. Ref 7.2.5
b) Incorrect. (3) A Stage Plan is created towards the end of the preceding stage. Ref 7.2.5
c) Correct. (2) The Stage Plan provides the basis for the Project Manager’s control. The
Project Board monitors against the Project Plan. Ref 7.2.4
d) Incorrect. (1) A Stage Plan is produced towards the end of the preceding stage and can
therefore be written with the knowledge of previous stages. Ref 7.2.5

Question 26

26 Identify the missing words in the following sentence.
Because the Project Board receives regular [ ? ], there is no need for regular progress
meetings.

a) End Stage Reports
b) Checkpoint Reports
c) Exception Reports
d) Highlight Reports

Answer 26

26 Syllabus Topic:PG0208.2 - Progress Theme
Correct Answer:D
Objective:LL2 - Understand the purpose a Highlight Report.

a) Incorrect. End Stage Reports are NOT regular and may be too far apart for good
reporting. Ref A.9.1
b) Incorrect. These are from the Team Manager to the Project Manager. Ref A.3.1
c) Incorrect. These are NOT regular progress reports. Ref A.10.1
d) Correct. These are sent on a regular basis by the Project Manager to the Project Board.
Ref A.11.1

Question 27

27 Which is a benefit of using the product-based planning technique?

a) All the required products of the project will be delivered to time and to cost
b) Clearly shows how long a project will take
c) It removes the need for activity-based planning
d) Reduces the risk of incorrectly scoping the project

Answer 27

27 Syllabus Topic:PL0203 - Plans Theme
Correct Answer:D
Objective:LL2 - Understand the product-based planning technique.

a) Incorrect. The scope will be clear, but the time and effort taken to deliver them is NOT
affected. Ref 7.3.3
b) Incorrect. Product-based Planning does NOT involve any estimates, and cannot therefore
identify how long a project will take. Ref 7.3.3
c) Incorrect. Whilst the technique focuses on identifying the products required of the
project, the activities required to create or change each of the planned products may
need to be identified to give a fuller picture of the plan’s workload. Ref 7.3.3
d) Correct. Clearly and consistently identifying and documenting the plan’s products and
interdependencies between them reduces the risk of important scope aspects being
neglected or overlooked. Ref 7.3.3

Question 28

28 Which of the following describe the purpose of the Risk theme?

1. Identify risks that may have an impact on the project delivering its objectives
2. Assess and evaluate the impact of the risks on the project delivering its objectives
3. Manage risks at the corporate or programme level of the organization
4. Implement risk management activities to improve the chances of the project delivering
   its objectives

a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4

Answer 28

28 Syllabus Topic:RK0201 - Risk Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of the Risk theme.

a) Incorrect. (4) The Risk Management Strategy defines activities that should be
implemented to control risks on the project. Ref 8.1
b) Correct. (3) The purpose of the Risk theme is to manage project risks, NOT at the
corporate or programme level. Ref 8.1
c) Incorrect. (2) The purpose of the Assess step is to assess the impact of risks on the
project objectives. Ref 8.1
d) Incorrect. (1) The purpose of the Identify risks step is to identify risks to the project. Ref
8.1

Question 29

29 Which project management team role can trigger the premature closure of a project?

a) Project Manager
b) Project Board
c) Project Support
d) Project Assurance

Answer 29

29 Syllabus Topic:CP0203 - Closing a Project Process
Correct Answer:B
Objective:LL2 - Understand the context of the Closing a Project process.

a) Incorrect. The Project Manager does NOT have the required level of authority. They will
implement premature closure on the request of the Project Board. Ref 18.4.2
b) Correct. The Project Board triggers premature closure from the Directing a Project
process. Ref 18.4.2 / 13.4.4
c) Incorrect. Project Support may supply management information to support a premature
project closure, but the closure can only be triggered from within the project
management team by the decision-making authority of the Project Board. Ref 18.4.2
d) Incorrect. The Project Board may appoint Project Assurance to undertake some of the
reviewing and assessing actions during the Closing a Project process, but Project
Assurance does NOT have the required level of authority to trigger premature closure.
Ref 18.4.2 / 13.4.5

Question 30

30 Which is a purpose of the Organization theme?

a) Set the tolerance on the cost of resources
b) Provide project management training to those working within the project
c) Define the structure of accountability and responsibilities on the project
d) Implement the controls required to permit management by exception

Answer 30

30 Syllabus Topic:OR0201 - Organization Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of the Organization theme.

a) Incorrect. This is covered by the Progress theme. Ref 10.1
b) Incorrect. At the start of the project, team members may need training. The Project
Manager should ensure that training needs are built into the appropriate plans. Ref
5.3.3.2
c) Correct. The purpose of the Organization theme is to define and establish the project’s
structure of accountability and responsibilities (the who?). Ref 5.1
d) Incorrect. Management by exception requires the setting of stages, targets against the 6
objectives and tolerance for each. This is all covered within the Progress theme. Ref 10.1

Question 31

31 Which process enables the Project Board to exercise overall control of a project?

a) Directing a Project
b) Controlling a Stage
c) Starting up a Project
d) Initiating a Project

Answer 31

31 Syllabus Topic:DP0201 - Directing a Project Process
Correct Answer:A
Objective:LL2 - Understand the purpose of the Directing a Project process.

a) Correct. The purpose of the Directing a Project process is to enable the Project Board to
be accountable for the project’s success by making key decisions and exercising overall
control while delegating day-to-day management of the project to the Project Manager.
Ref 13.1
b) Incorrect. The Controlling a Stage process enables the Project Manager to assign work
to be done, monitor such work, deal with issues, report progress to the Project Board
and take corrective action. Ref 15.1
c) Incorrect. The Starting up a Project process ensures the prerequisites are in place for
initiating a project. Ref 12.1
d) Incorrect. The Initiating a Project process establishes solid foundations for the project.
Ref 14.1

Question 32

32 Which is the first plan to be created?

a) Project Plan
b) Initiation Stage Plan
c) Team Plan
d) Exception Plan

Answer 32

32 Syllabus Topic:PL0202 - Plans Theme
Correct Answer:B
Objective:LL2 - Understand the levels of plans, their purpose and the interrelationship between
the Project Plan, Stage Plans, Team Plans and an Exception Plan.

a) Incorrect. The Project Plan is created in the Initiating a Project process, but the Stage
Plan for the initiation stage is created before this. Ref 7.2.3
b) Correct. The Stage Plan, for the initiation stage, contains the creation of the Project
Initiation Documentation. This is the first plan to be created in the PRINCE2 processes.
Ref 7.2.3
c) Incorrect. Team Plans are optional and are NOT produced until the Managing Product
Delivery process. This process may be optionally used during the initiation of a project,
but the Stage Plan for the initiation stage is created before entering initiation. Ref 7.2.3
d) Incorrect. An Exception Plan CANNOT be created until there are set targets against
which progress can be measured. These targets are defined in the Project Plan and
subsequent Stage Plans. However, none of these precede the Stage Plan for the
initiation stage. Ref 7.2.3

Question 33

33 What is the PRINCE2 definition of a project?

a) A number of activities managed as a unit
b) A unique undertaking that requires organization and resources
c) An element of work that a Project Manager agrees to deliver
d) A temporary organization created for the purpose of delivering business products

Answer 33

33 Syllabus Topic:OV0102 - Overview and Principles
Correct Answer:D
Objective:LL1 - Recall the definition of a project.

a) Incorrect. See rationale for option D.
b) Incorrect. See rationale for option D.
c) Incorrect. See rationale for option D.
d) Correct. A project is a temporary organization that is created for the purpose of delivering
one or more business products according to an agreed Business Case. Ref 1.3

Question 34

34 Which is NOT an objective of the Managing Product Delivery process?

a) Ensure suppliers understand what is expected of them
b) Ensure products of appropriate quality are delivered
c) Ensure the Project Board is kept informed of progress on the products
d) Ensure work for the team is agreed with the Project Manager

Answer 34

34 Syllabus Topic:MP0202 - Managing Product Delivery Process
Correct Answer:C
Objective:LL2 - Understand the objectives of the Managing Product Delivery process.

a) Incorrect. The Work Package ensures that everyone in the team, including suppliers,
understands what they have to do. Ref 16.2
b) Incorrect: The Work Package should contain Product Descriptions that describe the
product(s) required, including the quality criteria. Ref 16.2
c) Correct. The Managing Product Delivery process does NOT have any communications
with the Project Board. Informing the Project Board of progress on the products is part of
Controlling a Stage. Ref 16.2
d) Incorrect: Ensuring that work for the team is agreed with the Project Manager is part of
the Accept a Work Package activity. Ref 16.2

Question 35

35 Which is an objective of the quality review technique?

a) Involve key interested parties to promote wider acceptance of the product
b) Develop and improve the specification of a product through continuous assessment
c) Correct any errors found in a product during the quality review meeting
d) Update the status information in the Configuration Item Record when a product is signed-off

Answer 35

35 Syllabus Topic:QU0203 - Quality Theme
Correct Answer:A
Objective:LL2 - Understand the objective of the quality review technique.

a) Correct. Involvement of key interested parties in checking a product’s quality promotes
wider acceptance of the project’s products. Ref 6.3.2.1
b) Incorrect. Any change to a product specification must go through formal change control.
Ref 9.1
c) Incorrect. Errors should be noted as follow-up actions to be completed outside of the
meeting. Ref 6.3.2.1
d) Incorrect. This is NOT part of the quality review technique. Results of the review are
communicated to the appropriate managers/support personnel who will update this
information. Ref 15.4.2

Question 36

36 Which is a purpose of the Communication Management Strategy?

a) Identify how and by whom the project’s products will be controlled and protected
b) Define the method of communication between the project and its stakeholders
c) Define the structure of responsibilities and accountabilities in support of effective decision
making in a project
d) Identify the communications required from the Team Manager(s) to the Project Board

Answer 36

36 Syllabus Topic:OR0205 - Organization Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of the Communication Management Strategy.

a) Incorrect. This is the purpose of the Configuration Management Strategy NOT the
Communication Management Strategy. Ref A.6.1
b) Correct. This is a key element in the use of the Communication Management Strategy.
Ref A.4.1
c) Incorrect. This reflects the purpose of the Organization theme in PRINCE2 NOT the
Communication Management Strategy. Ref 5.1 / A.4.1
d) Incorrect. Team Managers communicate with the Project Manager NOT the Project
Board. Ref 5.3.2.7 / A.4.1

Question 37

37 Identify the missing words in the following sentence.
Any requests for change, which require Project Board approval, should be recorded in the [ ? ]
and monitored by the Project Manager

a) Product Description
b) Issue Register
c) Configuration Item Record
d) Quality Register

Answer 37

37 Syllabus Topic:CH0203.4 - Change Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of the Issue Register.

a) Incorrect. The Product Description will be updated to reflect requests for change, if those
requirements are approved via change control. The Product Description does NOT
contain details of status. Ref A.17.2
b) Correct. Requests for change should be defined in Issue Reports which should be
recorded in the Issue Register, and their status monitored by the Project Manager. Ref
A.12.1
c) Incorrect. This shows the status of a product and a cross-reference to any Issue
Reports. It does NOT show the status of requests for change. Ref A.5.2
d) Incorrect. If requests for change are identified during a quality review, these would be
raised as Issue Reports and added to the Issue Register. The Quality Register does
NOT show the status of Issue Reports. Ref A.23.2

Question 38

38 Which is a recommended quality review team role?

a) Senior User
b) Presenter
c) Project Support
d) Project Assurance

Answer 38

38 Syllabus Topic:QU0101 - Quality Theme
Correct Answer:B
Objective:LL1 - Recall the recommended quality review team roles.

a) Incorrect. Although the Senior User may participate in a quality review, possibly as a
reviewer, Senior User is NOT a recommended quality review role. Ref 6.3.2.1
b) Correct. This role introduces the product for review and represents the producer(s) of the
product. The presenter also coordinates and tracks the work after the review, i.e.
applying changes to the product agreed by the team. Ref 6.3.2.1
c) Incorrect. Although Project Support may participate in a quality review, possibly as an
administrator, Project Support is NOT a recommended quality review role. Ref 6.3.2.1
d) Incorrect. Although Project Assurance may participate in a quality review, possibly as a
reviewer, and are responsible for identifying appropriate people to fulfil this role, Project
Assurance is NOT a recommended quality review role. Ref 6.3.2.1

Question 39

39 If a product fails its quality check, which product should always be updated?

a) Risk Register
b) Issue Register
c) Quality Register
d) Lessons Log

Answer 39

39 Syllabus Topic:QU0206.3 - Quality Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of a Quality Register.

a) Incorrect. This event has already happened. There is no uncertainty about its
occurrence, therefore it is NOT a risk. Ref 8.2.1 / A.25.1
b) Incorrect. This may be raised as an issue (Off-specification) and formally managed if, for
example, the failure is likely to lead to an exception situation. However, the product that
should always be updated with the result of the quality activities is the Quality Register.
Ref 6.3.1.6 / A.23.1
c) Correct. The Quality Register records the results of all quality management activities.
Ref 6.3.1.6 / A.23.1
d) Incorrect. Whilst there may be a recommendation on how this product should be
developed to avoid this experience on future projects, this statement does NOT provide
evidence of this. Ref 6.3.1.6 / A.14.1

Question 40

40 In what product should the Project Manager enter the details of issues that are resolved
without using the formal issue and change control procedure?

a) Stage Plan
b) Daily Log
c) Configuration Item Record
d) Checkpoint Report

Answer 40

40 Syllabus Topic:PG0206.1 - Progress Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of a Daily Log.

a) Incorrect. The Stage Plan is used to record the activities and products planned for the
stage. Ref 7.2.5
b) Correct. The Project Manager can deal with issues informally, but these should be
entered in the Daily Log. Ref A.7.1
c) Incorrect. A Configuration Item Record contains information on the status of each
product. Ref A.5.1
d) Incorrect. A Checkpoint Report is produced by the Team Manager providing progress on
a Work Package. Ref A.3.1

Question 41

41 Which of the PRINCE2 principles uses tolerances to establish the limits of delegated
authority?

a) Manage by stages
b) Tailor to suit the project environment
c) Focus on products
d) Manage by exception

Answer 41

41 Syllabus Topic:OV0202 - Overview and Principles
Correct Answer:D
Objective:LL2 - Understand the seven principles

a) Incorrect. This requires that the project be broken into manageable stages with control or
decision points. Ref 2.4
b) Incorrect. This requires that a decision be made as to how the project management
method is to be applied. Ref 2.7
c) Incorrect. This requires that the full scope of the project is understood and that all
deliverables are fully defined. Ref 2.6
d) Correct. Accountability is established by delegating authority from one management
level to the next by setting tolerances against the six objectives for the respective level of
the plan: time, cost, quality, scope, risk, benefit. Ref 2.5

Question 42

42 Which is a purpose of the Starting up a Project process?

a) Ensuring that the prerequisites for initiating the project are in place
b) Establishing that the Project Plan can meet the required target dates
c) Creating the Project Initiation Documentation so the project can be initiated
d) Confirming to corporate or programme management that quality expectations will be met

Answer 42

42 Syllabus Topic:SU0201 - Starting up a Project Process
Correct Answer:A
Objective:LL2 - Understand the purpose of the Starting up a Project process.

a) Correct. The purpose of the Starting up a Project process is to ensure that the question
‘do we have a viable and worthwhile project’ can be answered. This is achieved by
ensuring the prerequisites for initiating the project are in place. Ref 12.1
b) Incorrect. The Project Plan is created in the Initiating a Project process NOT the Starting
up a Project process. Ref 14.4.6
c) Incorrect. The Project Initiation Documentation is created in the Initiating a Project
process NOT the Starting up a Project process. Ref 14.4.8
d) Incorrect. The customer’s quality expectations are captured and documented in the
Project Product Description during the Starting up a Project process. There is no
confirmation that these will be met at this point in time as they are a target objective. Ref
12.4.4
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Question 43

43 When should the project management team be reviewed?

a) As and when new stakeholders are identified
b) When planning a quality review
c) When planning the next stage
d) During product creation

Answer 43

43 Syllabus Topic:SB0202 - Managing a Stage Boundary Process
Correct Answer:C
Objective:LL2 - Understand the objectives of the Managing a Stage Boundary process.

a) Incorrect. New stakeholders may be identified at any time and will need to be added to
the Communication Management Strategy, NOT to the project management team
structure. Ref A.4.2
b) Incorrect. The individuals nominated to take the roles within a quality review are NOT
recorded in the project management team structure. They will be recorded in the Quality
Register and on the associated Product Descriptions. Ref A.23.2 / A.17.2
c) Correct. New Team Managers may be required for the next stage, different Project
Assurance may be required due to the nature of the next stage, etc. Ref 17.2 / 17.4.1
d) Incorrect. The project management team structure includes the Team Manager, but NOT
the team members. This detail would be amended in the Team Plan. Ref 16.4.2

Question 44

44 Which is NOT a responsibility of the Project Board?

a) Allocate tolerances to specialist teams
b) Transfer ownership of the Benefits Review Plan to corporate or programme management
c) Approve the Project Product Description
d) Confirm the required frequency of Highlight Reports

Answer 44

44 Syllabus Topic:OR0203.1 - Organization Theme
Correct Answer:A
Objective:LL2 - Understand the role of the Project Board.

a) Correct. Tolerance is allocated to the Project Manager by the Project Board when
authorizing the next stage. Tolerance is allocated to specialist teams by the Project
Manager, NOT the Project Board. Ref 15.4.1
b) Incorrect. As the Benefits Review Plan includes resources beyond the life of the project,
ownership of this plan needs to transfer to corporate or programme management when
authorizing project closure. Ref 13.4.5
c) Incorrect. The Project Product Description is incorporated within the Project Brief which
is approved by the Project Board when authorizing initiation. Ref 13.4.1
d) Incorrect. The Project Board agree the frequency of Highlight Reports with the Project
Manager at the end of each stage, when authorizing a Stage Plan or Exception Plan.
Ref 10.3.3.4

Question 45

45 Who sets the project tolerances?

a) Project Board
b) Corporate/programme management
c) Executive
d) Project Manager

Answer 45

45 Syllabus Topic:PG0205 - Progress Theme
Correct Answer:B
Objective:LL2 - Test understanding of the setting of project level tolerances.

a) Incorrect. The Project Board has overall control at a project level, as long as forecasts
remain with project tolerance, and will allocate tolerances for each management stage to
the Project Manager. Ref 10.3.1.1
b) Correct. Corporate/programme management sits outside the project but sets the overall
requirements and tolerance levels of the project. Ref 10.3.1.1
c) Incorrect. The Executive forms part of the Project Board. Project tolerance is set by the
corporate/programme management for the Project Board. Ref 10.3.1.1
d) Incorrect. The Project Manager agrees Work Package tolerance with the Team Manager
(s). Ref 10.3.1.1

Question 46

46 PRINCE2 plans are carefully designed to meet the needs of the different levels in the project
organization. Why is this a benefit?

a) Ensures stakeholders are properly represented
b) Improves communication and control
c) Ensures that one plan will meet everyone’s needs
d) Reduces the levels of management required in the project organization

Answer 46

46 Syllabus Topic:OV0201 - Overview and Principles
Correct Answer:B
Objective:LL2 - Understand the benefits of using PRINCE2.

a) Incorrect. Stakeholders are NOT represented in plans. They may receive copies. Ref 1.7
b) Correct. PRINCE2 plans are designed to meet the needs of the different levels in the
project organization and assist in communication and control by being regularly updated
and copied to the necessary levels. Ref 1.7
c) Incorrect. One plan is unable to meet the needs of all levels in the project organization.
Ref 7.2.3
d) Incorrect. The levels of management in a project organization are recommended within
the PRINCE2 method. The recommended plans do NOT affect the levels of management
required. Ref 5.3.1

Question 47

47 What levels of plan are recommended by PRINCE2?

a) Project Plan
b) Project Plan and Stage Plan
c) Project Plan, Stage Plan and Team Plan
d) Project Plan, Stage Plan, Team Plan and Exception Plan

Answer 47

47 Syllabus Topic:PL0101 - Plans Theme
Correct Answer:C
Objective:LL1 - Recall the levels of plan recommended by PRINCE2.

a) Incorrect. In addition there are two further levels: the Stage Plan and Team Plan. Ref
7. 2.3
b) Incorrect. In addition there is a further level of Team Plan. Ref 7.2.3
c) Correct. Project Plan, Stage Plan and Team Plan (Exception Plan replaces one of
these) . Ref 7.2.3
d) Incorrect. Project Plan, Stage Plan and Team Plan (Exception Plan replaces one of
these) . Ref 7.2.3

Question 48

48 Which of the following are true for a Product Description?

1. Describes the component parts of the product
2. Identifies the products that are derived from this product
3. Defines the skills needed to create the product
4. Describes the method required to check the product

a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4

Answer 48

48 Syllabus Topic:QU0206.2 - Quality Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of a Product Description.

a) Incorrect. (4) By understanding the quality method and quality skills needed, the review
activities can be planned for and scheduled. Ref A.17.1
b) Incorrect. (3) The skills needed to develop the product will aid resource planning. Ref
A.17.1
c) Correct. (2) The Product Description includes products on which this one is dependant
but NOT vice versa. Ref A.17.1
d) Incorrect. (1) The composition will identify the parts of a product giving an indication of its
‘size’ to assist estimating. Ref A.17.1

Question 49

49 Which of the following is funded from a change budget?

a) All changes to the baseline cost of the project
b) Increased tolerance required by the Project Manager to complete a stage
c) Changes to approved baselined products
d) The correction of an off-specification

Answer 49

49 Syllabus Topic:CH0202 - Change Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of a change budget.

a) Incorrect. Any changes to the project costs will come from Corporate Management
unless it is allowed for in the Project Board tolerance. Ref 10.3.3.1
b) Incorrect. The cost tolerance is given to the Project Manager for each stage. Any
increase would require an Exception Report that the Project Board would review and if
necessary fund from the project’s tolerance. Ref 10.3.4
c) Correct. This is a sum of money the customer and supplier agree will fund any request
for change. It is given to a Change Authority to manage and control. Ref 9.3.1.1
d) Incorrect. The change budget does NOT pay for corrections to off-specifications. Ref
9.3.1.1

Question 50

50 What is risk appetite?

a) Part of the project budget, used to pay for any additional activities required to manage risks
b) The funds the Project Board is willing to spend on the management of risk
c) Permissible deviation from planned expenditure without the need to escalate to the next higher
authority
d) An organization’s attitude towards risk-taking

Answer 50

50 Syllabus Topic:RK0207 - Risk Theme
Correct Answer:D
Objective:LL2 - Understand the concept of risk appetite/tolerances.

a) Incorrect. This is a risk budget, a sum of money included within the project budget and
set aside to fund specific management responses to the project’s threats and
opportunities. Ref 8.3.6
b) Incorrect. This is a risk budget, the mechanisms for control of and access to which
should be detailed in the Risk Management Strategy. Ref 8.3.6
c) Incorrect. This describes cost tolerance, NOT risk appetite. Ref 10.2.3
d) Correct. An organization’s unique attitude towards risk-taking that in turn dictates the
amount of risks it considers acceptable. Ref 8.3.2

Question 51

51 Which role represents the ‘delivering’ level on the project management team?

a) Project Board
b) Project Manager
c) Team Manager
d) Project Support

Answer 51

51 Syllabus Topic:OR0202 - Organization Theme
Correct Answer:C
Objective:LL2 - Understand the three project interests and how these are represented within
the three levels of the project management team structure.

a) Incorrect. The Project Board represents the ‘directing’ level. Ref 5.3.1
b) Incorrect. The Project Manager represents the ‘managing’ level. Ref 5.3.1
c) Correct. The ‘delivering’ level relates to the Team Manager responsible for delivering the
project’s products which they do via the Managing Product Delivery process. Ref 5.3.1
d) Incorrect. Project Support does NOT represent a level on the project management team.
Ref 5.3.1

Question 52

52 Which is a purpose of the Benefits Review Plan?

a) Document the justification for the undertaking of a project
b) Describe only residual benefits and those that could not be achieved during the lifecycle of the
project
c) Provide a schedule for measuring the achievement of benefits
d) Provide the reasons for the project, for entry into the Business Case

Answer 52

52 Syllabus Topic:BC0202.2 - Business Case Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of a Benefits Review Plan.

a) Incorrect. This is a purpose of the Business Case. Ref A.2.1
b) Incorrect. The Benefits Review Plan includes all benefits, NOT just those which can be
measured after the project has closed. Ref A.1.1
c) Correct. The Benefits Review Plan is used to cover the assessment of benefits. Ref
4.3.3 / A.1.1
d) Incorrect. The reasons for the project are derived from the project mandate and
documented in the outline Business Case during the Starting up a Project process. Ref.
12.4.4

Question 53

53 Which is a purpose of a Configuration Item Record?

a) Provide a summary of the status of all products at any one time
b) Provide any details of important links between configuration items
c) Support the creation of the project product breakdown structure
d) Include an analysis of an issue or risk which caused the product to change

Answer 53

53 Syllabus Topic:CH0203.2 - Change Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of a Configuration Item Record.

a) Incorrect. This describes the Product Status Account. Each version of a product has a
different Configuration Item Record. Ref A.18.1
b) Correct. Contains the relationship with other items which may be affected by any
changes to the product. Ref 9.3.1.2 / A.5.1
c) Incorrect. The maximum level of control possible is determined by breaking down the
project’s products until the level reached at which a component can be independently
installed, replaced or modified. The product breakdown structure can therefore support
configuration management. Ref 9.3.2
d) Incorrect. Configuration Item Records include a cross-reference to any issues or risks
which caused the product to change, it does NOT contain details of the issues/risks
themselves. Ref A.5.2

Question 54

54 Which is NOT a purpose of the Controlling a Stage process?

a) Take corrective actions to control deviations from the Stage Plan
b) Recommend the tolerances for the next stage
c) Report progress to the Project Board
d) Assign work to be done

Answer 54

54 Syllabus Topic:CS0201 - Controlling a Stage Process
Correct Answer:B
Objective:LL2 - Understand the purpose of the Controlling a Stage process.

a) Incorrect. The Project Manager takes corrective actions to ensure the stage remains
within tolerance. Ref 15.1 / 15.4.8
b) Correct. The recommendation of stage tolerances is done while planning the stage in the
Managing a Stage Boundary process. Ref 17.4.1 / 13.4.3
c) Incorrect. The Project Manager will report progress to the Project Board using Highlight
Reports. Ref 15.1 / 15.4.5
d) Incorrect. The Project Manager will assign work to be done in Work Packages. Ref
15.1 / 15.4.1

Question 55

55 Which is a true statement regarding stages?

a) A project can be scheduled without management stages
b) There can be several management stages within a technical stage
c) Several management stages can be scheduled to run concurrently
d) Technical stages and management stages should always end together

Answer 55

55 Syllabus Topic:PG0203 - Progress Theme
Correct Answer:B
Objective:LL2 - Understand the concept of management stages and the difference between
management and technical stages.

a) Incorrect. PRINCE2 mandates a minimum of two management stages, initiation and the
rest of the project. Ref 10.3.2.1
b) Correct. A technical stage can span over more than one management stage. Ref
10.3.2.3
c) Incorrect. Management stages do NOT overlap, technical stages do. Ref 10.3.2.2
d) Incorrect. Management stages and technical stages can be scheduled to coincide, but
this is NOT true of all stages. Ref 10.3.2.2

Question 56

56 Which is a purpose of the Risk Management Strategy?

a) Defines the techniques to be used when assessing project risks
b) Summarizes exposure to strategic, programme, project and operational risks
c) Recommends responses for each of the project risks
d) Identifies suitable risk owners for each of the project risks

Answer 56

56 Syllabus Topic:RK0206.1 - Risk Theme
Correct Answer:A
Objective:LL2 - Understand the purpose of the Risk Management Strategy.

a) Correct. The Risk Management Strategy describes the specific risk management
techniques and standards to be applied, and the responsibilities for achieving an effective
risk management procedure. Ref A.24.1
b) Incorrect. Exposure to risk is summarized in the risk profile. This procedure is defined in
the Risk Management Strategy. Ref A.24
c) Incorrect. The Risk Management Strategy defines the different categories of risk
responses which can be used to identify suitable actions for each risk. It does NOT
define the specific response actions appropriate for each risk. Ref A.24
d) Incorrect. Risk owners are identified and recorded in the Risk Register. Ref A.25.2

Question 57

57 Which role can the Project Manager also perform?

a) Executive
b) Project Assurance
c) Change Authority
d) Senior User

Answer 57

57 Syllabus Topic:OR0101 - Organization Theme
Correct Answer:C
Objective:LL1 - Recall the roles within the Organization theme.

a) Incorrect. The Project Manager CANNOT perform the role of the Executive, the two roles
must be independent. Ref 5.3.2.1
b) Incorrect. The Project Assurance role CANNOT be delegated to the Project Manager,
the roles must remain independent. The Project Assurance role is owned by the Project
Board members and can be delegated by them but NOT to the Project Manager. Ref
5.3.2.3
c) Correct. The Change Authority role can be delegated by the Project Board to the Project
Manager. Ref 5.3.2.4
d) Incorrect. The Senior User role can be combined with the Executive role but CANNOT be
performed by the Project Manager, the Project Manager and any Project Board role are
always separate. Ref 5.3.2.1

Question 58

58 What are the three recommended types of issue?

a) Off-specification, request for change and concession
b) Off-specification, request for change and problem/concern
c) Request for change, problem/concern, and Issue Report
d) Request for change, Issue Report and risk

Answer 58

58 Syllabus Topic:CH0101 - Change Theme
Correct Answer:B
Objective:LL1 - Recall the three types of issue.

a) Incorrect. A concession is an off-specification which has been accepted without
corrective action. Ref Table 9.2
b) Correct. Each of these is a type of issue. Ref Table 9.1
c) Incorrect. An Issue Report contains the description, impact assessment and
recommendations for a request for change, off-specification or a problem/concern. It is
only created for those issues that need to be handled formally. Ref 9.3.1.6
d) Incorrect. An Issue Report contains the description, impact assessment and
recommendations for a request for change, off-specification or a problem/concern. It is
only created for those issues that need to be handled formally. Ref 9.3.1.6. A risk is
NOT a type of issue. Ref Table 9.1

Question 59

59 Which is established within the Initiating a Project process?

a) The various ways in which the project can be delivered
b) Those who require project information have been identified
c) All of the information to develop the Project Brief is available
d) Any constraints which could affect the project have been removed

Answer 59

59 Syllabus Topic:IP0202 - Initiating a Project Process
Correct Answer:B
Objective:LL2 - Understand the objectives of the Initiating a Project process.

a) Incorrect. The available project approaches are evaluated in the Starting up a Project
process. Ref 12.2 / 12.4.5
b) Correct. An objective of the Initiating a Project process is to ensure that there is
common understanding of who needs information, in what format, and at what time. Ref
14.2 / 14.4.4
c) Incorrect. The Project Brief is developed in the Starting up a Project process NOT the
Initiating a Project process. Ref 12.2
d) Incorrect. A focus of the Initiating a Project process is to understand and put strategies
in place to manage constraints, NOT to remove them. Ref 14.2

Question 60

60 Which term is used to describe when a risk might occur?

a) Impact
b) Proximity
c) Probability
d) Evaluate

Answer 60

60 Syllabus Topic:RK0204 - Risk Theme
Correct Answer:B
Objective:LL2 - Understand the probability, impact and proximity of a risk.

a) Incorrect. The impact of each risk is measured in terms of the project objectives. The
impact identifies what the outcome would be if the risk occurs. Ref 8.3.5.2
b) Correct. The point in time, or within the project, when the risks might materialize. Ref
8.3.5.2
c) Incorrect. The likelihood of the risk occurring - is it highly likely or NOT very likely. Ref
8.3.5.2
d) Incorrect. This activity assesses the net effect of all the identified risks on a project when
aggregated together. Ref 8.3.5.2

Question 61

61 Within what process are Team Plans produced?

a) Initiating a Project
b) Controlling a Stage
c) Managing a Stage Boundary
d) Managing Product Delivery

Answer 61

61 Syllabus Topic:MP0203 - Managing Product Delivery Process
Correct Answer:D
Objective:LL2 - Understand the context of the Managing Product Delivery process.

a) Incorrect. Team Plans are produced by the Team Manager during the Managing a
Product Delivery process. Ref 16.3
b) Incorrect. Team Plans are produced by the Team Manager during the Managing a
Product Delivery process. Ref 16.3
c) Incorrect. Team Plans are produced by the Team Manager during the Managing a
Product Delivery process. Ref 16.3
d) Correct. Team Plans are produced by the Team Manager during the Managing a Product
Delivery process. Ref 16.3

Question 62

62 Identify the missing words in the following sentence.
If a Project Manager has the appropriate specialist skills and knowledge, they may also
perform the role of [ ? ] on the project.

a) Senior Supplier(s)
b) Team Manager(s)
c) Project Assurance
d) Senior User(s)

Answer 62

62 Syllabus Topic:OR0203.5 - Organization Theme
Correct Answer:B
Objective:LL2 - Understand the role of the Team Manager.

a) Incorrect. The Project Manager CANNOT take on the role of Senior Supplier. This would
prove to be a conflict of interests. Supplier assurance must remain independent
of/CANNOT be delegated to the Project Manager. Ref 5.3.2.3
b) Correct. The appointment of separate Team Managers is optional. If the Project Manager
has the appropriate knowledge, coverage, etc, they may manage the teams directly. Ref
5.3.2.7
c) Incorrect. Project Assurance is the responsibility of the Project Board and must remain
independent of/CANNOT be delegated to the Project Manager. Ref 5.3.2.3
d) Incorrect. The Project Manager CANNOT take on the role of Senior User. This would
prove to be a conflict of interests. User assurance must remain independent of/CANNOT
be delegated to the Project Manager. Ref 5.3.2.3

Question 63

63 Which statement is true for project stakeholders?

a) Some have decision-making authority within the project environment
b) All are external to the corporate organization
c) All are internal to the project management team structure
d) None have decision-making authority within the project environment

Answer 63

63 Syllabus Topic:OR0204 - Organization Theme
Correct Answer:A
Objective:LL2 - Understand what a stakeholder is.

a) Correct. Project Board members are stakeholders. Those with a role on the Project
Board will have an interest in, and influence over the project. Project Board members are
decision-makers representing stakeholders, i.e. business, user and supplier interests.
Ref 5.2.5
b) Incorrect. Stakeholders are both internal and external to the corporate organization.
Primary stakeholders are represented on the Project Board, others are external to the
project management team. Ref 5.3.5.2
c) Incorrect. Corporate and/or programme management are stakeholders within a project
but do NOT sit within the project management team structure. Ref 5.3.1
d) Incorrect. Project Board members are stakeholders. Those with a role on the Project
Board will have an interest in, and influence over the project. Project Board members are
decision-makers representing stakeholders, i.e. business, user and supplier interests.
Ref 5.2.5

Question 64

64 Which of the following is funded from a risk budget?

a) Potential changes that may be required as the project progresses
b) Shortfall in estimating the development costs of the project’s products
c) Additional activities to reduce, avoid, fallback, transfer, share or enhance project risks
d) Production of a Risk Management Strategy

Answer 64

64 Syllabus Topic:RK0203 - Risk Theme
Correct Answer:C
Objective:LL2 - Understand the purpose of a risk budget.

a) Incorrect. These would be funded by a change budget, NOT the risk budget. Ref 9.3.1.1
b) Incorrect. This would be funded from any cost tolerance. Ref Table 10.1
c) Correct. The risk budget is set aside to fund specific management responses to the
project’s threats and opportunities. Ref 8.3.6
d) Incorrect. The use of a risk budget is defined within the Risk Management Strategy,
during the Initiating a Project process. Ref A.25.2 / 8.3.6

Question 65

65 Which is NOT an objective of the Controlling a Stage process?

a) Produce the Stage Plan for the next stage
b) Focus attention on delivery of the stage’s products
c) Escalate threats to tolerances
d) Keep issues and risks under control

Answer 65

65 Syllabus Topic:CS0202 - Controlling a Stage Process
Correct Answer:A
Objective:LL2 - Understand the objectives of the Controlling a Stage process.

a) Correct. The Stage Plan is produced in the Managing a Stage Boundary process,
towards the end of a stage, and is NOT an objective of the Controlling a Stage process.
Ref. 15.2 / 17.4.1
b) Incorrect. Any movement away from the direction and products agreed at the start of the
stage is monitored to avoid uncontrolled change (‘scope creep’) and a loss of focus. Ref
15.2
c) Incorrect. The project management team is focused on delivery within the tolerances laid
down. The stage should NOT exceed the tolerances agreed with the Project Board. Ref
15.2
d) Incorrect. Throughout a stage, the project management team should be watching for,
assessing and dealing with issues and risks. Ref 15.2 / 15.3

Question 66

66 Which of the following describes an output?

a) Any of the project’s specialist products
b) The result of the change derived from using the project’s products
c) The measurable improvement resulting from an outcome
d) A negative outcome

Answer 66

66 Syllabus Topic:BC0101 - Business Case Theme
Correct Answer:A
Objective:LL1 - Recall the definition of a project output, an outcome, a benefit and a dis-benefit.

a) Correct. This is an output - a specialist product (whether tangible or intangible). Ref 4.2.2
b) Incorrect. This is an outcome. Ref 4.2.2
c) Incorrect. This is a benefit. Ref 4.2.2
d) Incorrect. This is dis-benefit. Ref 4.3.4.4

Question 67

67 Which is a purpose of the Quality theme?

a) Define the way in which the project will ensure that all products of the project are fit for purpose
b) Define the procedures and responsibilities for the creation, maintenance and control of project
products
c) Establish mechanisms to judge whether the project remains desirable and achievable
d) Enable the assessment of continuing project viability

Answer 67

67 Syllabus Topic:QU0201 - Quality Theme
Correct Answer:A
Objective:LL2 - Understand the purpose of the Quality theme.

a) Correct. The Quality theme defines the PRINCE2 approach to ensuring that the project’s
products meet business expectations. Ref 6.1
b) Incorrect. This is covered by the Change theme. Ref 9.1
c) Incorrect. This is covered by the Business Case theme. Ref 4.1
d) Incorrect. This is a purpose of the Progress theme. Ref 10.1

Question 68

68 Which factor should influence the length of a management stage?

a) Frequency of Highlight Reports
b) The level of project risk
c) Availability of the Project Board
d) Requirement of a specialist team for an element of the development work

Answer 68

68 Syllabus Topic:PG0204 - Progress Theme
Correct Answer:B
Objective:LL2 - Understand the factors to consider in identifying management stages.

a) Incorrect. The frequency of Highlight Reports will be considered when planning each
stage. It is NOT an influence when deciding on the duration of a stage. Ref 10.3.2.2 /
10.3.1.2
b) Correct. Stage breaks can be inserted at key points when risks to the project can be
reviewed before major commitments of money or resources. Ref 10.3.2.2
c) Incorrect. Management stages will be set according to the confidence of the Project
Board and Project Manager in proceeding. Management stages are NOT set according
to the availability of the Project Board. Ref 10.3.2.2 / 10.3.1.2
d) Incorrect. Technical stages are typified by the use of a particular set of specialist skills.
Management stages equate to commitment of resources and authority to spend. Ref
10.3.2.2 / 10.3.1.3

Question 69

69 After the first stage, when are the Stage Plans for further stages produced?

a) Near the end of the current stage
b) After completion of the current stage
c) When creating the Project Plan
d) At the start of the initiation stage

Answer 69

69 Syllabus Topic:SB0203 - Managing a Stage Boundary Process
Correct Answer:A
Objective:LL2 - Understand the context of the Managing a Stage Boundary process.

a) Correct. The Stage Plan for the next stage should be planned near the end of the current
stage when managing a stage boundary. Ref 17.2 / 17.3 / 17.4.1 / 7.2.5
b) Incorrect. The Stage Plan for the next stage should be planned near the end of the
current stage when managing a stage boundary, so that it can be approved by the
Project Board and the next stage can commence. Ref 17.4.1
c) Incorrect. The Project Plan is produced in the Initiating a Project process. Ref 14.4.6
d) Incorrect. The plan for the second stage of a project may be produced towards the end of
initiation, but this is NOT when Stage Plans for further stages are produced. Ref 7.2.5

Question 70

70 What is a risk cause?

a) Negative consequence of a threat occurring
b) Explanation of the uncertainty which, should it occur, would create a problem
c) Positive consequence of an exploited opportunity
d) A known situation which creates uncertainty

Answer 70

70 Syllabus Topic:RK0205 - Risk Theme
Correct Answer:D
Objective:LL2 - Understand the difference between cause, event and effect when expressing a
risk.

a) Incorrect. This is describing a risk effect. The risk effect should describe the impact
(s) that the risk would have on the project objectives should the risk materialize. Ref
8.3.5.1
b) Incorrect. This is describing a risk event. The risk event should describe the area of
uncertainty in terms of the threat or the opportunity. Ref 8.3.5.1
c) Incorrect. This is describing a risk effect. The risk effect should describe the impact
(s) that the risk would have on the project objectives should the risk materialize. Ref
8.3.5.1
d) Correct. This is describing a risk cause. The risk cause should describe the source of
the risk, i.e. the situation that gives rise to the risk. These are often referred to as risk
drivers. Ref 8.3.5.1

Question 71

71 Which product is a time-driven control?

a) End Stage Report
b) Exception Report
c) Checkpoint Report
d) Lessons Report

Answer 71

71 Syllabus Topic:PG0201 - Progress Theme
Correct Answer:C
Objective:LL2 - Understand the difference between event-driven and time-driven controls.

a) Incorrect. The end of a stage is NOT a periodic control, i.e. it does NOT occur weekly or
monthly. Ref 10.3.3
b) Incorrect. Exception situations are NOT a periodic control, i.e. you CANNOT plan for
them. Ref 10.3.3
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 10.3.3
d) Incorrect. Produced at the end of a stage and the end of the project, these are NOT
periodic controls, i.e. it does NOT occur weekly or monthly. Ref 10.3.3

Question 72

72 Which is a purpose of the Project Product Description?

a) Define the quality checks that will be used for the project’s products
b) Explain what the project must handover to achieve customer approval
c) Confirm the delivery timescales for the project’s products
d) Document the Project Manager’s responsibilities for delivering the project’s products

Answer 72

72 Syllabus Topic:QU0206.1 - Quality Theme
Correct Answer:B
Objective:LL2 - Understand the purpose of a Project Product Description.

a) Incorrect. This is a purpose of the Quality Management Strategy. Ref A.22.1
b) Correct. A purpose of the Project Product Description is to define what the project must
deliver in order to gain customer acceptance. Ref A.21.1
c) Incorrect. This is the purpose of the Project Plan. Ref 7.2.4
d) Incorrect. The Project Manager’s responsibilities are defined by the Executive in the
Starting up a Project process and they are NOT documented in the Project Product
Description. Ref A.21.1 / 12.4.1

Question 73

73 Which is a purpose of the Change Authority?

a) Determine the change budget for a project
b) Assess the impact of all requests for change
c) Reduce the number of requests for change that need to be escalated to the Project Board
d) Allow the Project Board to delegate the approval of all risks and Issue Reports

Answer 73

73 Syllabus Topic:OR0203.4 - Organization Theme
Correct Answer:C
Objective:LL2 - Understand the role of a Change Authority.

a) Incorrect. If there is to be a change budget, this will be determined by the Project Board,
as part of the overall project budget. Ref 9.3.1.1 / 13.4.2
b) Incorrect. This is the role of the Project Manager, NOT the Change Authority. Ref
9.3.3.2 / 9.3.1.1
c) Correct. Within the limits of authority set by the Project Board, changes can be
approved by the Change Authority without the need for escalation. Ref 5.3.2.4 / 9.3.1.1 /
C.8.
d) Incorrect. The Change Authority deals with requests for change and off-specifications,
NOT risks. There should be a limit to the delegated authority in terms of the
characteristics of changes which can be approved by the Change Authority. Ref 9.3.1.1

Question 74

74 To which role does a Team Manager report an exception situation?

a) Project Manager
b) Project Board
c) Project Assurance
d) Project Support

Answer 74

74 Syllabus Topic:PG0101 - Progress Theme
Correct Answer:A
Objective:LL1 - Recall the lines of authority and reporting between the four levels of
management.

a) Correct. The Team Manager has control for a Work Package, within the Work Package
tolerances agreed with the Project Manager. During execution of the Work Package, if
any forecasts indicate that it is likely to exceed the agreed tolerances, then the deviation
should be referred to the Project Manager by the Team Manager in order to get a
decision on corrective action. Ref 10.3.1.1
b) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to
the Project Manager via an issue. See rationale A.
c) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to
the Project Manager via an issue. See rationale A.
d) Incorrect. If a Team Manager forecasts an exception situation, it should be escalated to
the Project Manager via an issue. See rationale A.

Question 75

75 What is the first step within the recommended risk management procedure?

a) Assess
b) Identify
c) Implement
d) Plan

Answer 75

75 Syllabus Topic:RK0202 - Risk Theme
Correct Answer:B
Objective:LL2 - Understand the five steps within the risk management procedure.

a) Incorrect. If the risk has NOT been identified, it CANNOT be assessed. Ref 8.3.5
b) Correct. The risk must first be identified before it can be assessed, and responses
planned and then implemented. Ref 8.3.5
c) Incorrect. If the risk has NOT been identified, it CANNOT be assessed. Therefore
responses CANNOT be planned or implemented. Ref 8.3.5
d) Incorrect. If the risk has NOT been identified, it CANNOT be assessed. Therefore
responses CANNOT be planned or implemented. Ref 8.3.5