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PRINCE2 7 Foundation study materials
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PRINCE2 7 Foundation practice questions

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Question 1Projects and the PRINCE2 project context

According to PRINCE2, which statement best defines a project?

  1. A recurring set of activities carried out to achieve routine operational targets
  2. An ongoing management structure that coordinates the organization's strategic investments
  3. A temporary organization created to deliver business products against an agreed business case Correct answer.
  4. A permanent team of people that maintains the organization's existing services and operational products

Explanation

PRINCE2 defines a project as a temporary organization created for the purpose of delivering one or more business products according to an agreed business case. The definition combines the temporary nature of the organization with the need for justification.

Question 2Projects and the PRINCE2 project context

Which of the following is one of the characteristics that PRINCE2 uses to describe a project?

  1. It is governed by a permanent portfolio office
  2. It is repeated on a regular operational cycle
  3. It is funded from a single departmental budget
  4. It is unique and introduces change Correct answer.

Explanation

PRINCE2 characterizes projects as temporary, cross-functional, unique, involving uncertainty and introducing change. Uniqueness and the introduction of change are therefore defining features of every project.

Question 3Projects and the PRINCE2 project context

Which statement describes business as usual rather than a project?

  1. Work is temporary and the team is disbanded once the objectives are achieved
  2. Work is ongoing and repetitive, maintaining existing products and services Correct answer.
  3. Work is cross-functional and brings together a temporary team of specialists
  4. Work introduces a defined change with a clear start and an end date

Explanation

Business as usual is the ongoing, repetitive activity that maintains existing products and services. Projects are the temporary, cross-functional means by which change is introduced.

Question 4Projects and the PRINCE2 project context

Which statement best describes a programme?

  1. The total investment an organization makes in all of its change initiatives
  2. The routine operational activity that keeps the organization running day to day
  3. A temporary organization coordinating related projects to deliver outcomes Correct answer.
  4. A single large project that has an extended duration and a much larger budget than most

Explanation

A programme is a temporary, flexible organization created to coordinate, direct and oversee related projects and activities so that outcomes and benefits are delivered. The individual projects within it deliver the outputs.

Question 5Projects and the PRINCE2 project context

What does the term 'portfolio' mean in PRINCE2?

  1. A single project that has been assessed as high risk and needs board oversight
  2. The collection of documents produced during the initiation of a single project
  3. The complete set of an organization's investments in change, including programmes Correct answer.
  4. A group of related projects that are managed together to deliver strategic benefits

Explanation

A portfolio is the totality of an organization's investment in the changes needed to meet its strategic objectives, and it includes programmes, projects and other change activity. It provides the top-level context in which change initiatives are selected and prioritised.

Question 6Projects and the PRINCE2 project context

PRINCE2 defines project management as the planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, in order to...

  1. achieve the project objectives within expected performance targets Correct answer.
  2. remove all uncertainty from the project's delivery approach
  3. satisfy the personal objectives of the project board members
  4. deliver every one of the project's products ahead of the agreed schedule

Explanation

The PRINCE2 definition focuses on achieving the project objectives within expected performance targets for time, cost, quality, scope, benefits and risk. Uncertainty can be managed but never eliminated.

Question 7Projects and the PRINCE2 project context

Why does PRINCE2 need to be tailored to each project's context?

  1. Because each project must be run with a different set of principles
  2. Because the method is only suitable for small and low-risk projects
  3. Because tailoring removes the need for a project business case
  4. Because projects vary in size, complexity, risk and environment Correct answer.

Explanation

PRINCE2 is designed to be tailored so that the method and its documentation are proportionate to the project's size, complexity, risk, importance and organizational environment. The principles themselves are never tailored away.

Question 8Projects and the PRINCE2 project context

Which term describes the result of change that normally affects real-world behaviour and circumstances?

  1. An outcome Correct answer.
  2. A product description
  3. An output
  4. A benefit

Explanation

PRINCE2 distinguishes outputs (the products created), outcomes (the result of using the outputs, which affects behaviour and circumstances) and benefits (measurable improvements from an outcome perceived as advantageous).

Question 9Projects and the PRINCE2 project context

A project is described as 'cross-functional'. What does this mean in practice?

  1. It is managed by a single department using its own standard processes
  2. It draws together people with different skills from across the organization Correct answer.
  3. It requires every department in the organization to contribute funding
  4. It must be delivered by an external supplier rather than internal staff

Explanation

Projects are cross-functional because they bring together people from different parts of the organization, and often from outside it, to supply the skills needed to deliver the products. This is one reason projects need clearly defined roles and coordination.

Question 10Projects and the PRINCE2 project context

Why do projects typically involve more uncertainty than business as usual?

  1. Because project teams are not allowed to use established standards
  2. Because projects do not require an agreed business case
  3. Because each project is unique, so past experience is only a partial guide Correct answer.
  4. Because projects never have a defined end date or a fixed and stable scope of work

Explanation

Uniqueness means each project faces a combination of factors that has not been encountered in exactly the same form before, so previous experience reduces uncertainty but does not remove it. This is why risk management is central to projects.

Question 11Projects and the PRINCE2 project context

How do projects relate to an organization's strategy?

  1. Projects are limited to delivering cost savings within the finance function
  2. Projects replace the need for strategic planning in an organization
  3. Projects are used only when operational performance is already satisfactory
  4. Projects are the means by which change needed to deliver strategy is introduced Correct answer.

Explanation

Projects are the mechanism an organization uses to introduce the change required to achieve its strategic objectives. They turn strategy into delivered products and, ultimately, into business change.

Question 12Projects and the PRINCE2 project context

A project forms part of a programme. What is the main implication for that project?

  1. It can ignore corporate standards because the programme sets its own
  2. It no longer needs its own business case or project board
  3. It must deliver all of the programme's benefits on its own
  4. It must align with the programme's objectives and report into its governance Correct answer.

Explanation

A project within a programme must be consistent with the programme's objectives and operate within the programme's governance arrangements, while still retaining its own management structures such as a project board.

Question 13Projects and the PRINCE2 project context

An organization runs a project that is not part of any programme. What is the correct PRINCE2 view?

  1. The project automatically becomes a portfolio-level initiative
  2. The project still sits within a corporate context of standards and strategy Correct answer.
  3. The project must first establish a programme before it can start
  4. The project does not need a project board because there is no programme above it

Explanation

A standalone project is still commissioned and governed within a corporate context that sets strategy, standards and constraints. The absence of a programme changes the reporting line, not the need for governance.

Question 14Projects and the PRINCE2 project context

Why must a project have an agreed business case?

  1. To justify the investment and provide the basis for continued justification Correct answer.
  2. To describe the technical method used to build the outputs
  3. To list the individuals who will be working on the project team
  4. To record the detailed design of each of the project's products

Explanation

The project definition requires delivery of products according to an agreed business case. The business case justifies the investment and is reviewed throughout the project so that work continues only while it remains viable.

Question 15Projects and the PRINCE2 project context

In PRINCE2, what is meant by a project's 'delivery approach'?

  1. The specialist methods and techniques used to create the project's products Correct answer.
  2. The PRINCE2 processes used to manage the project
  3. The governance arrangements set by the project board
  4. The schedule of management stage boundaries

Explanation

PRINCE2 distinguishes project management, which directs and controls the project, from the delivery approach, which is the specialist way the products are created, such as an engineering or agile delivery method.

Question 16Projects and the PRINCE2 project context

What typically happens to a project's outputs once the project has closed?

  1. They are transferred to the programme board for ongoing maintenance
  2. They remain under the project manager's control indefinitely
  3. They are handed over and used within business as usual Correct answer.
  4. They are archived and never used again by the organization

Explanation

A project delivers products that will be used to create change, so outputs are handed over to the appropriate operational area and used in business as usual after closure. Benefits are then realized in that operational environment.

Question 17Projects and the PRINCE2 project context

An organization creates a temporary structure to oversee five related projects that together will transform how it serves its customers. What is this structure?

  1. A portfolio
  2. A project board
  3. A project assurance team
  4. A programme Correct answer.

Explanation

A temporary structure that coordinates a group of related projects to deliver outcomes of strategic importance is a programme. The individual projects deliver the outputs that together enable those outcomes.

Question 18Projects and the PRINCE2 project context

Which statement best explains why projects are described as 'temporary'?

  1. They end whenever the project manager decides to leave the organization
  2. They have a defined start and end, after which the team is disbanded Correct answer.
  3. They are funded only while an external supplier contract remains in place
  4. They last for a fixed period of exactly one year

Explanation

Temporary means the project has a defined start and a defined end, reached when its objectives are met or the project is terminated early. The temporary organization is then disbanded.

Question 19Projects and the PRINCE2 project context

In PRINCE2, which level of management sits above the project board in a project's context?

  1. Project support
  2. The team manager
  3. Corporate or programme management Correct answer.
  4. Project assurance

Explanation

Corporate or programme management commissions the project, issues the project mandate and sets the constraints within which the project board directs the project. The other roles operate at or below board level.

Question 20Projects and the PRINCE2 project context

In PRINCE2, what is a 'benefit'?

  1. Any product or service that the project delivers to the customer organization
  2. The total cost of all the resources used by the project throughout its life
  3. A risk or opportunity that has a positive impact on the project's objectives
  4. A measurable improvement from an outcome that is perceived as advantageous Correct answer.

Explanation

Benefits are the measurable improvements that result from an outcome and that a stakeholder perceives as advantageous. They are distinct from both outputs and outcomes.

Question 21Projects and the PRINCE2 project context

Which statement correctly distinguishes a portfolio from a programme?

  1. A portfolio covers all change investment, while a programme coordinates related projects Correct answer.
  2. A portfolio is a group of related projects, while a programme is the complete investment in change
  3. A portfolio is temporary, while a programme is permanent
  4. A portfolio delivers benefits directly, while a programme only produces outputs

Explanation

A portfolio is the whole of an organization's investment in change and provides the context for selecting and prioritising initiatives; a programme is a temporary organization coordinating a set of related projects and activities to deliver outcomes.

Question 22Projects and the PRINCE2 project context

Which statement correctly describes the relationship between project management and the delivery approach?

  1. They describe the same set of activities in different parts of the method
  2. Project management controls the work; the delivery approach provides specialist methods to create products Correct answer.
  3. The delivery approach is used only where no project board exists
  4. Project management creates the products; the delivery approach controls the project's stages

Explanation

PRINCE2 covers project management, which directs, controls and assures the work. The delivery approach is separate and consists of the specialist practices used to create the products, which PRINCE2 does not prescribe.

Question 23Projects and the PRINCE2 project context

Why is change usually managed through a project rather than within ongoing operations?

  1. Projects allow change to happen without affecting business as usual
  2. Projects provide a temporary, focused structure with clear accountability for the change Correct answer.
  3. Projects guarantee that the intended benefits will be realized
  4. Projects remove the need to involve senior management in any decisions

Explanation

A project creates a temporary organization with defined roles, a business case and stage boundaries, giving focus and accountability for delivering change that everyday operations cannot provide. Operations are still affected, and benefits must still be realized afterwards.

Question 24Projects and the PRINCE2 project context

Which statement about the realization of benefits is correct?

  1. Benefits can only be measured by the project manager
  2. Benefits are realized only during the project's final management stage
  3. Benefits are exactly the same thing as the project's outputs
  4. Benefits are usually realized after the project closes, within business as usual Correct answer.

Explanation

Because benefits arise from using the outputs, they typically emerge after handover, once the products are in operational use. The business case identifies the expected benefits and how they will be measured.

Question 25Projects and the PRINCE2 project context

A government department must apply national procurement rules to all of its projects. How does this affect its use of PRINCE2?

  1. The rules form part of the project context, and PRINCE2 is tailored to accommodate them Correct answer.
  2. The rules are irrelevant because PRINCE2 has its own procurement process
  3. The rules apply only to programmes and never to individual projects
  4. The rules override PRINCE2, so the method cannot be used on these projects

Explanation

Organizational, legal and regulatory constraints are part of the context in which a project operates. Tailoring PRINCE2 to work within those constraints keeps the method appropriate while ensuring compliance.

Question 26Projects and the PRINCE2 project context

In PRINCE2, which term describes any individual, group or organization that can affect, be affected by, or perceive itself to be affected by the project?

  1. User
  2. Supplier
  3. Stakeholder Correct answer.
  4. Executive

Explanation

PRINCE2 uses 'stakeholder' broadly to cover anyone with an interest in, or influence over, the project, whether internal or external. The term is deliberately wider than supplier, user or executive, each of which describes a specific role or interest.

Question 27Projects and the PRINCE2 project context

What is meant by 'business as usual' in the context of projects?

  1. The ongoing operational activities that maintain the organization's current services Correct answer.
  2. The set of all projects and programmes within a portfolio
  3. The final stage in which project outputs are handed over
  4. The work carried out by the project board to direct the project

Explanation

Business as usual refers to the permanent, ongoing operations that keep an organization running, as distinct from the temporary effort of a project. Projects are used to introduce change into business as usual.

Question 28Projects and the PRINCE2 project context

PRINCE2 identifies three stakeholder interests that must be represented in the project organization. Which set of interests is correct?

  1. Executive, project manager and team manager
  2. Customer, sponsor and delivery team
  3. Business, user and supplier Correct answer.
  4. Internal, external and regulatory

Explanation

PRINCE2 names the business, user and supplier interests, which respectively reflect the case for the project, the needs of those who will use its outputs, and the practical ability to deliver. Project board roles are designed so that these three interests are represented.

Question 29Projects and the PRINCE2 project context

In PRINCE2, what distinguishes the customer from the supplier in a project?

  1. The customer specifies the desired result and the supplier provides resources to deliver it. Correct answer.
  2. The customer provides the specialist resources and the supplier accepts the deliverables.
  3. The customer is always external to the organization and the supplier is always internal.
  4. The customer directs the project board and the supplier manages the project day to day.

Explanation

PRINCE2 treats the customer as the party that specifies what is wanted and may provide funding, while the supplier provides the resources and expertise needed to deliver it. In a commercial context these may be separate organizations.

Question 30Projects and the PRINCE2 project context

PRINCE2 describes projects as 'unique'. What does this mean?

  1. Every project must use a different delivery approach from previous projects.
  2. Every project must deliver a product that has never been created anywhere before.
  3. Each project has a distinct combination of inputs, constraints and outcomes. Correct answer.
  4. Each project must be managed by a different project manager.

Explanation

Uniqueness means that no two projects are identical: each has its own set of objectives, constraints, stakeholders and outcomes. This is why PRINCE2 must be tailored rather than applied identically to every project.

Question 31Projects and the PRINCE2 project context

In PRINCE2, what is a 'dis-benefit'?

  1. A negative consequence of the project for one or more stakeholders Correct answer.
  2. A benefit that is realized later than originally planned
  3. A risk that has materialized and reduced an expected benefit
  4. A cost that was not included in the approved project budget

Explanation

A dis-benefit is an outcome that stakeholders perceive as negative, such as disruption or loss of a service during transition. It is recorded alongside benefits so that the overall balance of advantage can be assessed in the business case.

Question 32Projects and the PRINCE2 project context

An organization wants to prioritize and balance investment across all of its projects, programmes and other change activity. Which level of management is responsible?

  1. Portfolio management, because it balances all change initiatives against strategic objectives Correct answer.
  2. Programme management, because it coordinates related projects and business change
  3. Business as usual management, because it maintains existing services
  4. Project management, because it coordinates the delivery of each individual project

Explanation

Portfolio management takes a whole-organization view, selecting and balancing projects, programmes and other work so that limited resources support strategic objectives. Programme management coordinates related projects, but only portfolio management covers the full set of change initiatives.

Question 33Projects and the PRINCE2 project context

Which statement correctly distinguishes the host organization from the project organization?

  1. The host organization is always the supplier; the project organization is always the customer.
  2. The host organization provides the permanent setting; the project organization is temporary. Correct answer.
  3. The host organization owns the project's products; the project organization owns the organization's strategy.
  4. The host organization is temporary; the project organization is permanent.

Explanation

The host organization is the permanent organization within which the project operates and which will own and use the results. The project organization is created for the life of the project and is disbanded at closure.

Question 34Projects and the PRINCE2 project context

Why should a project's business case be reviewed at each stage boundary?

  1. To confirm the project remains viable as costs, risks, benefits and context change Correct answer.
  2. To recalculate the project's budget and schedule at every stage boundary
  3. To replace the business case with a new one written by the project manager
  4. To confirm that all planned outputs have already been delivered

Explanation

The business case is a living document because the assumptions behind it can change as the project progresses. Reviewing it at stage boundaries allows the project board to confirm continued viability and, if necessary, to stop or redirect the project.

Question 35PRINCE2 principles

PRINCE2 7 describes a set of principles. How many principles does it define?

  1. Seven Correct answer.
  2. Four
  3. Six
  4. Five

Explanation

PRINCE2 7 defines seven principles: continued business justification, learn from experience, defined roles and responsibilities, manage by stages, manage by exception, focus on products and tailor to suit the project environment.

Question 36PRINCE2 principles

Which PRINCE2 principle allows work to be delegated within agreed limits so that decisions are escalated only when those limits are threatened?

  1. Focus on products
  2. Manage by exception Correct answer.
  3. Manage by stages
  4. Learn from experience

Explanation

Manage by exception gives people authority to act within defined tolerances and requires escalation as soon as a forecast breach becomes apparent, so senior management is involved at the right level without micromanaging.

Question 37PRINCE2 principles

What does the continued business justification principle require of a project?

  1. A justifiable reason to start that is documented and re-confirmed Correct answer.
  2. A business case written once during initiation and then filed for audit
  3. A sponsor who personally funds the project from their own private budget
  4. A guaranteed financial return approved before the project is authorized

Explanation

The principle requires a justifiable reason for the project to exist, and that reason must be documented, maintained and reviewed so that the project is stopped or changed if the justification is lost.

Question 38PRINCE2 principles

What does the learn from experience principle require a project to do with lessons?

  1. Limit lesson reviews to the project board to avoid distracting the team
  2. Store lessons in the issue register until the project closes
  3. Seek, record and act on lessons, and share them with others Correct answer.
  4. Gather lessons only from its own stages, not from other projects

Explanation

Lessons must be actively sought from previous work and from the project itself, recorded, acted upon and passed on so that others benefit from them.

Question 39PRINCE2 principles

Which principle requires that the interests of the business, the user and the supplier are each represented and that accountabilities are clear?

  1. Focus on products
  2. Defined roles and responsibilities Correct answer.
  3. Manage by exception
  4. Tailor to suit the project environment

Explanation

Defined roles and responsibilities establishes a project organization in which the business, user and supplier interests are represented and each person's accountability is understood.

Question 40PRINCE2 principles

What does the focus on products principle require to happen before activities are planned?

  1. That the project board has met at least once
  2. That the products required are defined and agreed Correct answer.
  3. That the budget is fully committed
  4. That all team members are recruited

Explanation

Focus on products means the project defines and agrees what it will deliver, including quality expectations, before deciding which activities are needed to produce it.

Question 41PRINCE2 principles

Which principle states that PRINCE2 should be adapted to the size, complexity, importance, capability and risk of the project?

  1. Learn from experience
  2. Tailor to suit the project environment Correct answer.
  3. Manage by stages
  4. Defined roles, responsibilities and organization

Explanation

Tailoring makes the method proportionate: the principles always apply, but the processes, themes and management products are adapted to the project's context.

Question 42PRINCE2 principles

How should the PRINCE2 principles be applied on a project?

  1. Only the principles relevant to the project's sector need be applied
  2. They apply only to the directing a project and managing product delivery processes
  3. All seven must be applied, although how they are implemented can be tailored Correct answer.
  4. At least four of the seven must be applied, chosen during initiation

Explanation

All seven principles must be applied for a project to be managed in accordance with PRINCE2; tailoring affects how they are applied, not whether they are applied.

Question 43PRINCE2 principles

A project board wants to authorize work in controlled increments and review the project at defined points rather than approving everything at the outset. Which principle supports this?

  1. Manage by exception
  2. Focus on products
  3. Manage by stages Correct answer.
  4. Continued business justification

Explanation

Manage by stages divides the project into management stages so the board authorizes one stage at a time, reviewing progress at each boundary before committing further resources.

Question 44PRINCE2 principles

At the end of stage two, forecasts show the expected benefits have fallen sharply, although the project is within its cost and time tolerances. What should happen under the PRINCE2 principles?

  1. The project should continue as planned because it remains within its agreed cost and time tolerances
  2. The business case should be reassessed and the project stopped or changed if it is invalid Correct answer.
  3. The decision should be delegated to the team manager who is currently delivering the stage
  4. The business case should be updated only when the project reaches its closure

Explanation

Continued business justification requires the business case to be reviewed as the project progresses; if the justification is lost, the project must be stopped or changed even when cost and time are on track.

Question 45PRINCE2 principles

At the start of a project, the project manager reviews lessons from similar projects. At each stage boundary the team checks whether those lessons have been applied. Which principle does this illustrate?

  1. Defined roles and responsibilities
  2. Manage by stages
  3. Learn from experience Correct answer.
  4. Focus on products

Explanation

Learn from experience requires lessons to be sought at the start, applied during the work and reviewed as the project progresses, rather than gathered only at the end.

Question 46PRINCE2 principles

A team manager is delivering a work package with agreed tolerances. Midway through, a forecast shows the work will exceed its cost tolerance. What should the team manager do?

  1. Escalate the forecast exception to the project manager promptly Correct answer.
  2. Continue and report the overspend in the end stage report
  3. Amend the business case to absorb the additional cost
  4. Wait until the next highlight report is due before taking any action

Explanation

Manage by exception requires escalation as soon as a forecast breach of tolerance is apparent, so that the level above can decide how to respond while there is still time to act.

Question 47PRINCE2 principles

A project is being organized so that those who fund the project, those who will use its products and those who will supply them are all represented on the project board. Which principle is being applied?

  1. Focus on products
  2. Defined roles and responsibilities Correct answer.
  3. Continued business justification of the project
  4. Manage by stages

Explanation

Defined roles and responsibilities requires a structure in which the business, user and supplier interests are each represented and accountabilities are agreed.

Question 48PRINCE2 principles

A small, low-risk project is being run using PRINCE2. The project manager proposes a simplified business case, combined roles and a single management stage. Which principle does this demonstrate?

  1. Manage by exception
  2. Continued business justification of the project
  3. Tailor to suit the project environment Correct answer.
  4. Manage by stages

Explanation

Tailoring adapts the method's processes, themes and products to the project's size, risk and complexity while keeping all seven principles in place.

Question 49PRINCE2 principles

How does the manage by stages principle affect the level of detail in project plans?

  1. Detailed planning is left entirely to the team managers for all stages
  2. Only the final stage is planned in detail, once all of the products have been completed and accepted
  3. Every stage is planned in the same level of detail before the project is authorized to proceed
  4. The next stage is planned in detail, later ones only at a high level until their turn Correct answer.

Explanation

Manage by stages allows detailed planning to be limited to the next stage, with later stages planned at a higher level until more information is available, which supports progressive refinement.

Question 50PRINCE2 principles

A team keeps arguing about whether a deliverable is finished. Applying the focus on products principle, what should be agreed and documented?

  1. The budget and timescale allocated to the deliverable
  2. The name of the person who will sign off the end stage report
  3. The purpose and quality criteria of the product Correct answer.
  4. The number of activities needed to produce the deliverable

Explanation

Focus on products requires each product to be defined in terms of its purpose, composition and quality criteria, so that acceptance is judged objectively rather than debated.