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PRINCE2 Practitioner study materials
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PRINCE2 Practitioner practice questions

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Question 1Business case

In PRINCE2, what is the primary purpose of the business case theme?

  1. To describe how risks will be identified, assessed and controlled throughout the project
  2. To record the detailed schedule of deliverables and the resources needed to produce them
  3. To define the quality criteria against which the project's products will be inspected
  4. To establish mechanisms for judging whether the project is desirable, viable and achievable, and to support decision-making on continued investment Correct answer.

Explanation

The business case theme provides the mechanism to judge whether the project is worthwhile, using the business justification to support the continuing investment decision. It is reviewed at each management stage boundary and at exception points so that the project can be stopped if justification disappears.

Question 2Business case

Which set of three elements does PRINCE2 use to define whether a project is worthwhile?

  1. Scope, quality and risk
  2. Desirability, viability and achievability Correct answer.
  3. Benefits, costs and timescales
  4. Outputs, outcomes and dis-benefits

Explanation

PRINCE2 judges a project's business justification through desirability (the benefits outweigh costs and risks), viability (it can deliver the outcomes) and achievability (it can be delivered with the available capability and capacity). These three are assessed together, not in isolation.

Question 3Business case

Which product formally presents the business justification for the project and is developed and maintained throughout the project?

  1. The business case Correct answer.
  2. The project brief
  3. The end project report
  4. The benefits management approach

Explanation

The business case is the PRINCE2 management product that contains the justification for the project, including reasons, options, benefits, dis-benefits, costs, timescales and risks. It is created at starting up a project and refined at initiating a project, then maintained through every stage.

Question 4Business case

During which PRINCE2 process is the outline business case first developed?

  1. Directing a project
  2. Managing a stage boundary
  3. Starting up a project Correct answer.
  4. Initiating a project

Explanation

Starting up a project produces the outline business case as part of the project brief, giving the project board enough information to decide whether initiating a project is worthwhile. The business case is then developed in detail during initiating a project.

Question 5Business case

Which role is accountable to the project board for ensuring that the business case is produced and maintained with the right information?

  1. The project manager
  2. The project assurance role
  3. The business executive Correct answer.
  4. The senior user

Explanation

The executive is the single point of accountability for the project and is responsible for the business case, ensuring it stays aligned to corporate strategy and justifies continued investment. The project manager may draft the product, but accountability rests with the executive.

Question 6Business case

What is the key difference between a benefit and a dis-benefit in a PRINCE2 business case?

  1. A benefit is measurable in money while a dis-benefit is always intangible
  2. A benefit arises from outputs while a dis-benefit arises from outcomes
  3. A benefit is a positive outcome for a stakeholder while a dis-benefit is a negative outcome for a stakeholder Correct answer.
  4. A benefit is recorded in the benefits management approach while a dis-benefit is recorded in the risk register

Explanation

PRINCE2 defines a benefit as a measurable improvement resulting from an outcome perceived as positive by a stakeholder, and a dis-benefit as a measurable decline perceived as negative by a stakeholder. Both are consequences of outcomes and both belong in the business case.

Question 7Business case

What does the PRINCE2 benefits management approach primarily describe?

  1. The detailed cost breakdown of each project stage
  2. The communications plan for senior stakeholders
  3. The steps, responsibilities and measurements needed to confirm that benefits are realised Correct answer.
  4. The quality inspection schedule for specialist products

Explanation

The benefits management approach defines how and when benefits will be measured, who is responsible, and what baseline measurements are needed. It also covers how the project will hand over benefit realisation to the business after closure.

Question 8Business case

Why does PRINCE2 require the business case to be reviewed at each stage boundary?

  1. To record the actual costs incurred in the stage just completed
  2. To confirm that the project's justification remains valid and to support the decision to authorise the next stage Correct answer.
  3. To update the project's risk register with new risks
  4. To obtain approval for changes to product descriptions

Explanation

Reviewing the business case at each stage boundary allows the project board to check that benefits, costs, timescales and risks still justify continuing. This supports the 'continued business justification' principle and informs the decision to authorise the next stage.

Question 9Business case

A project board is reviewing a project whose expected benefits have fallen significantly but whose costs have not changed. Which principle does this situation most directly challenge?

  1. Tailor to suit the project environment
  2. Continued business justification Correct answer.
  3. Manage by exception
  4. Learn from experience

Explanation

The principle of continued business justification requires that a project remains worthwhile throughout its life. If benefits fall while costs hold steady, the justification may no longer hold, and the board should consider stopping or changing the project.

Question 10Business case

During initiating a project, the project manager needs to compare alternative ways of delivering the required outcomes. Where should this comparison be documented?

  1. In the quality register, as a set of acceptance criteria
  2. In the project initiation documentation's business case, as an analysis of options Correct answer.
  3. In the risk management approach, as a list of threats
  4. In the daily log, as an issue for the project board

Explanation

The business case includes an analysis of the options considered, with reasons for the chosen option, so the board can see that the preferred approach offers best value. This analysis is part of the project initiation documentation assembled during initiating a project.

Question 11Business case

A project manager is preparing the business case and wants to justify why a particular supplier was selected. Which business case element is most relevant?

  1. The expected benefits and their measurement
  2. The project's dis-benefits for operational staff
  3. The reasons for the chosen option, including the option appraisal Correct answer.
  4. The planned timescales for each stage

Explanation

The business case records the options considered and the reasons for selecting the preferred option, which covers decisions such as supplier or delivery approach. Benefits, dis-benefits and timescales are separate elements of the same product.

Question 12Business case

The project board asks for evidence that the project will still deliver value if a key supplier withdraws. Which aspect of the business case is being tested?

  1. Tolerance
  2. Viability Correct answer.
  3. Achievability
  4. Desirability

Explanation

Viability asks whether the project can deliver the required outcomes in the real world, including the availability of suppliers and operational capability. A supplier withdrawal is a test of whether the outcomes remain deliverable, which is viability.

Question 13Business case

An organisation has the funding and the business need for a project but lacks the specialist skills to deliver it. Which element of business justification is weakest?

  1. Achievability Correct answer.
  2. Desirability
  3. Viability
  4. Benefit tolerance

Explanation

Achievability assesses whether the organisation has the capability, capacity and maturity to deliver the project. A lack of specialist skills directly undermines achievability even where need and funding exist.

Question 14Business case

What should the executive do when the business case shows the project is no longer viable at a stage boundary?

  1. Transfer ownership of the business case to the senior user
  2. Update the benefits management approach to remove the affected benefits
  3. Recommend to the board that the project be stopped or re-scoped, and escalate the decision appropriately Correct answer.
  4. Instruct the project manager to continue and report the deviation in the end project report

Explanation

The executive is accountable for the business case and should act when justification fails, recommending that the board stop, change or re-scope the project. Continued business justification means a project should not proceed once it is no longer worthwhile.

Question 15Business case

How does the business case relate to the project plan during initiating a project?

  1. The business case is a summary of the project plan and contains no independent information
  2. The two products are developed independently and must not reference each other
  3. The project plan is derived from the business case only after the project has closed
  4. The business case's costs and timescales should be consistent with the project plan and its estimates Correct answer.

Explanation

The business case draws on the project plan's estimates of cost, timescale and risk so that the justification is based on realistic figures. Inconsistency between the two would undermine the credibility of the business case.

Question 16Business case

A project delivers its outputs on time and on budget, but the expected operational savings do not materialise after handover. What does PRINCE2 say about responsibility for this?

  1. The project board is dissolved at closure and therefore bears no responsibility
  2. The project manager is accountable because the project failed to deliver the outputs
  3. The change authority is accountable for benefits realisation
  4. The senior user is accountable for specifying and realising the benefits, supported by the benefits management approach Correct answer.

Explanation

The senior user represents the interests of those who will use the products and is accountable for specifying benefits and confirming they are realised. The benefits management approach sets out how realisation will be measured and managed after the project closes.

Question 17Business case

Which content is expected in a PRINCE2 business case but not in the outline business case prepared at starting up a project?

  1. The reasons why the project is needed
  2. The detailed analysis of options and the reasons for the preferred option Correct answer.
  3. The high-level estimate of costs and timescales
  4. The expected benefits and dis-benefits

Explanation

The outline business case is deliberately high level, covering reasons, benefits, costs and timescales in summary form. The full business case developed during initiating a project adds detailed option analysis and justification for the chosen approach.

Question 18Business case

A programme mandates that all projects must align their business case with programme-level benefits. How should the project manager reflect this in the project's business case?

  1. Ignore programme benefits because they are outside project tolerances
  2. Record programme benefits only in the risk register
  3. Copy the programme business case in full and replace the project's own benefits
  4. Show how the project's benefits contribute to the programme's benefits and reference the programme in the justification Correct answer.

Explanation

Where a project sits within a programme, its business case should demonstrate alignment with programme objectives and show how its benefits contribute to programme-level benefits. This maintains consistency across the wider investment.

Question 19Business case

The board sets a tolerance on the project's benefits. What does this mean in practice?

  1. The project manager may change the expected benefits without escalation within the agreed tolerance Correct answer.
  2. The senior user may reduce benefits at any time without informing the board
  3. Benefit tolerance applies only to financial benefits
  4. Benefits need only be measured once at the end of the project

Explanation

Benefit tolerance defines the permissible deviation on benefits before the project manager must escalate to the board. It allows day-to-day management flexibility while keeping the board informed of material changes to justification.

Question 20Business case

What is the purpose of recording dis-benefits in the business case?

  1. To satisfy the quality theme's acceptance criteria
  2. To offset dis-benefits against costs so the project appears more attractive
  3. To ensure that negative consequences for stakeholders are visible and managed alongside benefits Correct answer.
  4. To replace the risk register for negative impacts

Explanation

Dis-benefits are measurable negative outcomes for stakeholders, and recording them ensures the board sees the full picture of the project's impact. Managing them alongside benefits supports a balanced justification and avoids surprises after handover.

Question 21Business case

A project manager identifies that a planned benefit depends on a change in a business process owned by another department. What is the most appropriate PRINCE2 response?

  1. Record the dependency in the business case and benefits management approach, and agree ownership with the senior user Correct answer.
  2. Remove the benefit from the business case because it is outside the project's control
  3. Escalate immediately to the change authority for a decision
  4. Add the benefit to the stage plan as a work package for the project team

Explanation

Benefits that depend on external change should be documented with clear ownership, typically through the senior user and the benefits management approach. This makes the dependency visible and allows realisation to be tracked after the project.

Question 22Business case

The board is considering a project where the preferred option has the lowest cost but also the lowest benefit. Which action best reflects PRINCE2 guidance on option analysis?

  1. Select the lowest-cost option automatically because cost control is a board priority
  2. Compare options against benefits, costs, risks and timescales, and record the rationale for the chosen option Correct answer.
  3. Defer the decision until the project has started and actual costs are known
  4. Choose the option with the highest benefit regardless of risk

Explanation

Option analysis in the business case weighs benefits, costs, risks and timescales together rather than optimising a single dimension. The rationale for the chosen option must be recorded so the board can scrutinise the decision.

Question 23Business case

At a stage boundary, the project manager reports that costs are within tolerance but a key benefit is now expected to be delivered two years later than planned. What is the most appropriate treatment?

  1. Update the business case and escalate the benefit timing change to the board as it affects justification Correct answer.
  2. Ask the change authority to amend the benefits management approach without board involvement
  3. Record the change in the daily log and continue with the next stage
  4. Take no action because cost tolerance has not been breached

Explanation

A significant delay in benefit realisation changes the project's value proposition even if costs are on track, so the business case must be updated and the board informed. The board decides whether the revised justification still supports continuation.

Question 24Business case

An organisation wants to apply PRINCE2 in a lightweight way to a small project. How should the business case theme be tailored?

  1. Omit the business case entirely because the project is small
  2. Retain the full business case format but remove the executive's accountability
  3. Produce a concise business case that still records justification, benefits, costs and risks, with simpler option analysis Correct answer.
  4. Replace the business case with a verbal agreement recorded in meeting minutes

Explanation

Tailoring may simplify the format and depth of the business case for a small project, but the principle of continued business justification still requires documented justification. The executive remains accountable regardless of project size.

Question 25Business case

A project's business case shows strong benefits but the risk register reveals a high probability of a regulatory change that would remove the need for the product. How should this be reflected?

  1. Keep the risk out of the business case because risks belong only in the risk register
  2. Delay the business case until the regulatory position is certain
  3. Summarise the key risk and its potential impact on benefits in the business case so the board can judge justification Correct answer.
  4. Increase the benefit estimates to compensate for the risk

Explanation

The business case summarises key risks and their effect on benefits, costs and timescales so the board can assess whether the investment remains justified. Detailed risk information stays in the risk register but must inform the justification.

Question 26Business case

In PRINCE2, which role is accountable for the business case and ensures that the project remains aligned with the organisation's strategy?

  1. The Project Manager
  2. The Senior Supplier
  3. The Senior User
  4. The Executive Correct answer.

Explanation

The Executive is the single point of accountability for the project and is specifically responsible for the business case, ensuring it is viable and aligned with corporate strategy. The Senior User focuses on benefits realisation and user needs, while the Project Manager prepares and maintains the business case but does not own it.

Question 27Business case

During the 'Starting up a Project' process, what is the primary purpose of the outline business case?

  1. To document the complete risk management approach
  2. To secure full funding for the entire project
  3. To define the detailed benefits realisation plan
  4. To establish whether the project is worthwhile to initiate Correct answer.

Explanation

The outline business case is a lightweight document prepared during Starting up a Project to justify whether the project is worth initiating. It provides sufficient information for the Project Board to decide whether to proceed to the Initiating a Project process, where the full business case will be developed.

Question 28Business case

A project's business case shows that the expected benefits are highly sensitive to a potential change in government regulation. Which PRINCE2 principle does this situation best illustrate the need to apply?

  1. Manage by exception
  2. Learn from experience
  3. Continued business justification Correct answer.
  4. Tailor to suit the project environment

Explanation

Continued business justification requires that the business case is reviewed and updated throughout the project, especially when external factors such as regulatory changes could affect viability. This principle ensures the project remains aligned with its justification and is stopped if it is no longer viable.

Question 29Business case

At a stage boundary, the Project Board asks the Project Manager to provide an updated business case that includes a revised benefits management approach. What is the most appropriate source of information for the revised benefits management approach?

  1. The corporate or programme management benefits management approach Correct answer.
  2. The stage plan for the next stage
  3. The project's risk management approach
  4. The lessons log

Explanation

The benefits management approach should align with the organisation's or programme's benefits management approach to ensure consistency and integration. It defines how benefits will be measured, managed, and realised, and must reflect any corporate or programme requirements.

Question 30Organization

In PRINCE2, which principle requires that every project has a defined organization structure with clear roles and responsibilities?

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

Explanation

The principle 'defined roles and responsibilities' requires that projects have an explicit organization structure with agreed roles, responsibilities and accountability for all involved. It ensures clarity about who does what across the project lifecycle.

Question 31Organization

Which PRINCE2 role is ultimately accountable for the success of the project and represents the business interest?

  1. Executive Correct answer.
  2. Senior User
  3. Project Manager
  4. Project Assurance

Explanation

The Executive is the single point of accountability for the project and represents the business perspective on the Project Board. The role owns the business case and ensures the project delivers value.

Question 32Organization

In the PRINCE2 organization theme, what is the primary responsibility of the Senior Supplier role?

  1. Chairing the Project Board meetings
  2. Providing the resources and skills to deliver the products Correct answer.
  3. Ensuring the project delivers the expected benefits
  4. Monitoring the project's adherence to standards

Explanation

The Senior Supplier represents the supplier perspective and is accountable for the provision of the resources and skills needed to deliver the products. This role ensures the supplier side commits to and can meet the delivery requirements.

Question 33Organization

Which statement best describes the purpose of the Project Board in PRINCE2?

  1. To provide overall direction and make key decisions for the project Correct answer.
  2. To assure the project's compliance with corporate standards
  3. To manage the day-to-day delivery of products
  4. To support the project manager administratively

Explanation

The Project Board provides overall direction and management of the project, making key decisions and giving authority to the Project Manager. It is accountable for the project's success and owns the business case.

Question 34Organization

In PRINCE2, what is the primary purpose of the 'change authority' in the organization theme?

  1. To lead the project assurance function
  2. To decide on changes and concessions within delegated limits Correct answer.
  3. To approve all project documentation
  4. To control the project budget

Explanation

A change authority can be appointed to make decisions on changes and concessions within defined limits, often on behalf of the Project Board. It allows change decisions to be delegated without overloading the board.

Question 35Organization

A project manager needs independent assurance that the project is following corporate standards and that the business case is sound. Which PRINCE2 role is designed to provide this?

  1. Team Manager
  2. Senior User
  3. Project Support
  4. Project Assurance Correct answer.

Explanation

Project Assurance provides independent monitoring of the project on behalf of the Project Board, checking that standards are followed and that the business, user and supplier interests are protected. It reports concerns to the board rather than to the Project Manager.

Question 36Organization

Which PRINCE2 role is responsible for ensuring that the project delivers the outcomes and benefits defined in the business case?

  1. Project Manager
  2. Senior User Correct answer.
  3. Executive
  4. Senior Supplier

Explanation

The Senior User is accountable for specifying user needs and for ensuring that the project delivers the expected outcomes and benefits from the user perspective. This role champions benefits realization on the Project Board.

Question 37Organization

In PRINCE2, what does 'management by exception' mean for the Project Board's relationship with the Project Manager?

  1. The board sets tolerances and intervenes only when they are forecast to be exceeded Correct answer.
  2. The board delegates all decisions permanently to the Project Manager
  3. The board reviews every task the Project Manager performs
  4. The board meets only at the end of the project

Explanation

Management by exception means the Project Board agrees tolerances with the Project Manager and only gets involved when forecast exceptions breach those tolerances. This frees the board from routine monitoring while retaining control.

Question 38Organization

A project uses a Team Manager for a work package. According to PRINCE2, to whom does the Team Manager report and from whom do they take direction?

  1. The Project Manager Correct answer.
  2. Project Assurance
  3. The Project Board directly
  4. The Senior User

Explanation

The Team Manager reports to and takes direction from the Project Manager, managing the delivery of assigned work packages. Team Managers are optional and are used when the Project Manager needs to delegate part of the work.

Question 39Organization

Which combination correctly describes the three project interests represented on a PRINCE2 Project Board?

  1. Business, user and supplier Correct answer.
  2. Finance, operations and quality
  3. Customer, contractor and auditor
  4. Executive, manager and team

Explanation

The Project Board represents the business, user and supplier interests, embodied by the Executive, Senior User(s) and Senior Supplier(s). Balancing these three perspectives is central to the organization theme.

Question 40Organization

What is the minimum composition of a PRINCE2 Project Board?

  1. Executive, Project Manager and Team Manager
  2. Senior User, Senior Supplier and Project Support
  3. Executive, Project Manager and Project Assurance
  4. Executive, Senior User and Senior Supplier Correct answer.

Explanation

The Project Board must include the Executive, at least one Senior User and at least one Senior Supplier, representing the three project interests. The Project Manager and Project Assurance attend but are not board members.

Question 41Organization

In a small project, one person wishes to act as both Executive and Senior User. How should PRINCE2 organization guidance be applied?

  1. It is prohibited in all circumstances
  2. It is only allowed if the Project Board has no Senior Supplier
  3. It is permitted provided the roles and their responsibilities are clearly defined and any conflicts are managed Correct answer.
  4. It is allowed only after the project has passed the first stage

Explanation

PRINCE2 allows roles to be combined on smaller projects, provided the responsibilities are clearly defined and any conflicts of interest are recognized and managed. The principle of defined roles and responsibilities still applies.

Question 42Organization

Which statement accurately distinguishes Project Assurance from Project Support?

  1. Project Assurance administers change control, while Project Support monitors the business case
  2. Project Assurance is independent of the Project Manager, while Project Support typically works under the Project Manager Correct answer.
  3. Project Assurance and Project Support are the same function under different names
  4. Project Assurance reports to the Team Manager, while Project Support reports to the Project Board

Explanation

Project Assurance must be independent of the Project Manager and reports to the Project Board, whereas Project Support provides administrative services and usually works under the Project Manager's direction. Keeping assurance independent protects the board's oversight.

Question 43Organization

A Senior Supplier is unavailable to attend Project Board meetings for a stage. What is the most appropriate PRINCE2 response?

  1. The Executive assumes the Senior Supplier's decision authority permanently
  2. The Project Manager makes all supplier decisions instead
  3. The board ensures supplier representation is maintained, for example through a nominated deputy or delegate Correct answer.
  4. The board proceeds without supplier input until the next stage

Explanation

The supplier interest must remain represented on the board, so a deputy or delegate can be nominated to maintain that perspective. Losing supplier representation would undermine the balanced three-interest structure.

Question 44Organization

In PRINCE2, which role is responsible for appointing the Project Manager?

  1. The Project Board, on the advice of the Executive Correct answer.
  2. The Team Manager
  3. The corporate programme office
  4. The Senior User alone

Explanation

The Project Board, led by the Executive, appoints the Project Manager and defines the tolerances within which the Project Manager operates. The appointment is a board-level decision reflecting accountability for project direction.

Question 45Organization

What does the 'Assurance' responsibility of the Project Board involve?

  1. Performing all product quality inspections personally
  2. Gaining confidence that the project is being managed appropriately on the board's behalf Correct answer.
  3. Writing the end project report
  4. Approving each work package before it starts

Explanation

The Project Board is responsible for assurance, meaning it must gain confidence that the project is being managed properly, often by appointing Project Assurance to monitor on its behalf. This is a governance responsibility rather than detailed execution.

Question 46Organization

Which of the following best explains why PRINCE2 separates the roles of Project Manager and Team Manager?

  1. To remove the need for Project Assurance
  2. To allow delegation of work package management where the Project Manager's span of control is too large Correct answer.
  3. To ensure the Project Board has more voting members
  4. To satisfy the focus on products principle

Explanation

The Team Manager role exists so the Project Manager can delegate the management of work packages when the project is large or complex and the span of control is too wide. It is optional and used only where needed.

Question 47Organization

A project has stakeholders in several business units affected by the change. Where in PRINCE2 organization should their interests primarily be represented?

  1. Through the Senior User role on the Project Board Correct answer.
  2. Through the Project Support office
  3. Through the Team Manager
  4. Through the change authority

Explanation

The Senior User role represents the interests of those who will use the products and realize the benefits, so affected business units are represented through this board role. Multiple Senior Users can be appointed where several user groups exist.

Question 48Organization

Which statement correctly describes the accountability of the Project Manager in PRINCE2?

  1. Accountable to the Project Board for the day-to-day management of the project within agreed tolerances Correct answer.
  2. Accountable for independent assurance of the project
  3. Accountable for the business case to the corporate organization
  4. Accountable for representing supplier resources on the board

Explanation

The Project Manager is accountable to the Project Board for the day-to-day management of the project within the tolerances set by the board. The Executive, not the Project Manager, owns the business case.

Question 49Organization

In PRINCE2, what is the purpose of the 'project management team' as distinct from the Project Board?

  1. It consists only of external suppliers
  2. It replaces the Project Board on small projects
  3. It is the group of end users affected by the project
  4. It includes all roles responsible for managing the project, such as the Project Manager, Team Managers and Project Assurance Correct answer.

Explanation

The project management team comprises all the roles involved in managing the project, including the Project Board, Project Manager, Team Managers and project assurance and support functions. The Project Board is a subset of this wider team.

Question 50Organization

A Project Manager wants to escalate an issue to the Project Board but is unsure of the route. Which statement reflects correct PRINCE2 organization practice?

  1. The Project Manager escalates directly to the Senior Supplier only
  2. The Project Manager must escalate through Project Assurance to the Team Manager
  3. The Project Manager raises the issue to the Project Board, often via the Executive as chair Correct answer.
  4. The Project Manager escalates to the change authority for all issues

Explanation

The Project Manager reports to the Project Board and escalates issues that exceed tolerances to it, typically through the Executive who chairs the board. Project Assurance may be informed but is not an escalation route to the Team Manager.