Prepare Efficiently with Latest PRINCE2 Practitioner Exam Study Materials

Question #1

Which of the following principles describes this statement?"xxx defines tolerances for each project objective to establish limits of delegated authority"

A. anage by stages

B. ocus on products

C. anage by exception

D. earn from experience

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Correct Answer: C

Question #2

There is no Project Brief. How can there be a common understanding of the desired outcomes for the prepared calendar pack?

A. he simple Project Initiation Documentation contains the Quality Management Strategy

B. he Project Brief should have been produced and approved before the project progressed into the initiation stage

C. he simple Project Initiation Documentation contains the project definition

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Correct Answer: C

Question #3

Scenario -Additional Information -Product Description -

A. Must be kept to a minimum

B. Must be kept to a level acceptable to the Ministry of Food Hygiene

C. Subject to market conditions

D. The annual increase to be less than half the rate of inflation

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Correct Answer: D

Question #4

The project is in stage 2. The project manager is reviewing stage status and has collected the checkpoint reports from the team managers. These show that the products are being completed on schedule. However, project support has raised issues that quality reviews have not been completed as agreed. The project manager reports in the highlight report that the stage is progressing well. Is this appropriate, and why?

A. es, because the highlight report is a summary of the information in the checkpoint reports

B. es, because the highlight report is used to provide the project board with stage and project progress

C. o, because the project manager should have recorded the cause of the delay to the quality reviews in the lessons log

D. o, because the issues raised by project support are a cause for concern and should be reflected in the highlight report

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Correct Answer: D

Question #5

Which statement is TRUE with regard to technical stages?

A. echnical stages can only occur sequential

B. echnical stages define where management decisions are appropriate

C. echnical stages often overlap

D. echnical stages define the commitment of resources and authority to spend

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Correct Answer: C

Question #6

DRAG DROP (Drag and Drop is not supported)STARTING UP A PROJECTHere are three actions carried out during the „starting up a project‟ process.As part of which activity (A-F) should each action occur?Choose only one activity for each action. Each activity can be used once, more than once, or not at all.Select and Place:

A. ee Explanation section for answer

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Correct Answer: A

Question #7

Which product should show that the project has been closed prematurely and has not achieved the objectives defined in the Project Initiation Documentation (PID)?

A. enefits Review Plan

B. nd Project Report

C. xception Report

D. roject closure notification

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Correct Answer: B

Question #8

Which product should show that if anybody has any remaining resource costs to be charged to the project, they should ensure this is done by 10 November?

A. enefits Review Plan

B. nd Project Report

C. ollow-on action recommendations

D. roject closure notification

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Correct Answer: D

Question #9

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.Which statement applies to the Information needs for each interested party section?

A. elete entry 13 because the activity to provide the weekly updates should be scheduled in the relevant Stage Plan

B. ove entry 13 to Tools and techniques because it describes the method to be used to communicate to the individual producing the staff newsletter

C. elete entry 14 because this relates to the development of a particular product and should be recorded under Development interfaces within the relevant Work Package

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Correct Answer: C

Question #10

HOTSPOT (Drag and Drop is not supported)At the end of stage 3, the service provider will be selected and the contract awarded. During stage 4, the Account Manager for the selected service provider will work with the Project Manager to complete the transition of the services to the selected service provider.Hot Area:

A. ee Explanation section for answer

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Correct Answer: A

Question #11

Which of the following activities is NOT an action of preparing for planned closure?

A. pdate the project plan with actual

B. pdate the Project Management Team

C. equest a product status account

D. onfirm project has delivered what is defined in Project Product Description

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Correct Answer: B

Question #12

What is the purpose of a Product Status Account?

A. set of records that describe information about the project

B. log used to record problems or concerns about products

C. n audit or review to compare actual status of products

D. report covering the status about the state of the projects products within

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Correct Answer: D

Question #13

Which of the following management products ARE updated as part of Managing a stage boundary?1. Business Case2. Benefits Review Plan3. Configuration Item Records4. Project Brief

A. ,2,3

B. ,3,4

C. ,2,4

D. ,3,4

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Correct Answer: A

Question #14

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.Which statement applies to the Stakeholder analysis: Interested parties section?

A. dd 'Internal Creative Team'

B. elete entry 11 because the photographer is internal to the project management team

C. elete entry 12 because the printing of the calendars is outside of the scope

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Correct Answer: A

Question #15

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.Which statement applies to the Timing of communication activities section?

A. elete entry 9 because activities for controlling the project should be planned as part of Project controls in the Project Initiation Documentation

B. o change to entry 9 because it describes the timing of performance reports

C. elete entry 10 because Highlight Reports are a Project Board control, the frequency of which should be recorded in the Project controls section of the Project Initiation Documentation

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Correct Answer: B

Question #16

Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the costs could vary considerably depending on the size of the package and the delivery service used. For the purpose of this project, the Project Manager has selected an appropriate service but feels that a corporate standard for postage would have reduced the time and effort invested. It could reduce the company's overheads by up to £20k per year. How should the Project Manager record this observation within t

A. roduce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard

B. ake a note of the observation in the Daily Log to be transferred to a Benefits Review Plan at the end of the project

C. ecord the observation in an Exception Report to the Project Board

D. ake an entry in the Lessons Log for future consideration by corporate management

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Correct Answer: D

Question #17

Which of the following is NOT an objective of Initiating a Project?

A. nderstanding the scope of what is to be done and the products to be delivered

B. nderstanding the roles and responsibilities of the Project Management Team

C. nderstand how quality required will be achieved

D. nderstand how progress will be monitored and controlled

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Correct Answer: B

Question #18

While planning the initiation stage, the Project Manager reviewed some threats that had been recorded in the Daily Log. Which threat should have been assessed for possible risk responses to be included in the Initiation Stage Plan?

A. FH has no experience in outsourcing and this may affect understanding of what is required, resulting in inadequate plans and strategies

B. he Project Brief is a complex document and may not be approved by the Executive

C. here is a shortage of service providers so there is a possibility that no suitable service providers respond to the request for proposals

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Correct Answer: C

Question #19

ABC Company has a standard course development model with four defined stages that the company manages using PRINCE2. The project manager for the Health and Safety Training Project has recommended the stage 2 of the standard model be split into two separate stages. As a result, there will now be five management stages in the project.Is this an appropriate application of the “tailor to suit the project” principle, and why?

A. es, because the project manager can adapt or combine PRINCE2 process to suit the project

B. es, because the standard course development structure should be tailored to suit the project

C. o, because a simple project should have no more than two management stages

D. o, because the standard course development structure should be applied to the project

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Correct Answer: B

Question #20

During a work package the Team manager needs to keep the project manager informed, which management product is used for this?

A. ighlight report

B. heckpoint Report

C. ssue Report

D. nd Stage Report

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Correct Answer: B

Question #21

Which of the following statements is FALSE regarding the Continued Business Justification?

A. he justification for the project must remain the same throughout the project

B. he justification for the project should remain vabd

C. he justification for the project may change

D. f the project is no longer justified it should be stopped

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Correct Answer: B

Question #22

Scenario -Additional Information -During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staf

A. Operational costs will increase as a result of the recruitment campaign

B. The prepared calendar pack is to be delivered to the printers by the first week in December

C. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further

D. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced

E. Staff morale will improve as a result of the promotional calendar

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Correct Answer: CD

Question #23

HOTSPOT (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.Column 1 contains a number of risk responses identified by the Project Manager follow

A. ee Explanation section for answer

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Correct Answer: A

Question #24

The project is now closed. The expected increase in revenue is not being achieved. It has been agreed with the team manager for the “marketing materials” that additional marketing activities will be undertaken to achieve the expected increase in revenue. Who should be responsible for monitoring the results of the marketing activities, and why?

A. enior user, because this person is responsible for realizing the benefits post-project

B. enior user, because this person is responsible for specifying the desired from the project

C. he team manager for the „marketing materials‟, because this person has the skills to demonstrate that the activities are effective

D. he team manager for the „marketing materials‟, because the project board is disbanded at the end of the project

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Correct Answer: A

Question #25

During which process would the stage tolerances be set?

A. ontrolling a Stage

B. nitiating a Project

C. anaging a Stage Boundary

D. irecting a Project

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Correct Answer: D

Question #26

While preparing the Risk Management Strategy, the Project Manager considered the commercial customer/supplier environment and how this may affect the management of risk. Which approach should the Outsourcing project adopt?

A. lan to use the selected service provider's risk management procedures

B. ll project risks associated with the specialist deliverables should be owned by the selected service provider

C. ue to the sensitive nature of this project, consideration should be given to creating a separate Risk Register to be held by MFH and the selected supplier

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Correct Answer: C

Question #27

Who is responsible for ensuring that the value-for-money solution is constantly reassessed?

A. usiness Assurance

B. enior User

C. orporate or Programme Management

D. eject Support

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Correct Answer: A

Question #28

All the products that are due in stage 3 have been completed, apart from the „updated corporate quality procedures‟. The work has been completed but the product has not yet been approved. The executive has been told that it will be signed off before the end of the project. In response to an exception report, the executive has instructed the project manager to plan to obtain approval of the product in stage 4. Is this appropriate application of the report management stage end‟ activity, and why?

A. es, because approval of the product can be carried forward into the next stage, with authority from the project board

B. es, because the completion of the product in the next stage is a follow-on action recommendation for stage 4

C. o, because approval of the products was planned for stage 3 and must be completed before the stage ends

D. o, because a project-level exception plan is required before approval of the quality procedures can be delayed

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Correct Answer: A

Question #29

Which statement is an appropriate entry for the project approach heading within the Project Brief?

A. he initial estimates from the feasibility study will be verified during the initiation stage

B. FH must better manage suppliers' performance

C. he Information Technology Division and the Facilities Division will be outsourced to a single service provider

D. he Project Manager will be responsible for ensuring that the agreed project approach remains an appropriate choice

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Correct Answer: C

Question #30

There is no mention of any Stage Plans, yet there are two further stages proposed. How will this be resolved?

A. t is appropriate for the Calendar project to be run as two further stages as there is a key decision to be made at the end of stage 2

B. hilst the activities are divided into two further stages, there is no reason why the Calendar project should use stages

C. here will be three Stage Plans, the two management stages plus an additional stage to plan and complete the activities of the Closing a Project process

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Correct Answer: A

Question #31

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.Which statement applies to the Stakeholder analysis: Interested parties section?

A. dd 'Internal Creative Team'

B. elete entry 11 because the photographer is internal to the project management team

C. elete entry 12 because the printing of the calendars is outside of the scope

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Correct Answer: A

Question #32

Which of the following should NOT be included in the business case?

A. easons

B. ajor Risks

C. usiness options

D. usiness approach

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Correct Answer: D

Question #33

Which of the following statements is NOT correct?The Learn from Experience principle suggests that lessons should be actively sought...

A. hen Starting a Project

B. hen Initiating a Project

C. s the project progresses

D. s the project closes

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Correct Answer: B

Question #34

Who would be responsible for maintaining the Configuration Item Records?

A. roject Manager

B. roject Support

C. roject Assurance

D. eam Manager

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Correct Answer: B

Question #35

Which product should show that the staff photo sessions were disruptive to the Engineering Department as they had been scheduled during peak work times without consultation with the Engineering Manager?

A. ollow-on action recommendations

B. essons Report

C. roject closure notification

D. isk Register

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Correct Answer: B

Question #36

Which activity is responsible for updating the stage plan with actual during Controlling a Stage?

A. eview the stage status

B. eview work package status

C. eport Highlights

D. ake corrective action

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Correct Answer: C

Question #37

Which statement is an appropriate entry for the Initiation Stage Plan?

A. he Daily Log has been updated with the new risks which were identified while preparing the Initiation Stage Plan

B. he plan is based on the external outsourcing consultants being available at the start of the initiation stage

C. he initial project cost estimate of £2

D. he project management team will consist of representatives from the IT and Facilities Divisions

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Correct Answer: B

Question #38

ABC Company has a number of projects in progress. The executive of the Health and Safety Training Project is also a member of the project board for two other projects and is very busy. As a result, during this initiation stage, the executive has appointed another person to carry out both their business assurance and the role of change authority for minor and medium severity issues. Is this appropriate, and why?

A. es, because people with delegated project assurance roles may act as the change authority

B. es, because projects that are likely to have many changes should delegate the change authority

C. o, because the decision to have a change authority should be made before the project is authorized

D. o, because the project manager identifies the level of tailoring that is relevant for the project

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Correct Answer: A

Question #39

HOTSPOT (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.There is a major concern over an apparent lack of control of project documentation.Fo

A. ee Explanation section for answer

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Correct Answer: A

Question #40

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.What statement applies to the Records section?

A. ove entry 6 to the Configuration Management Strategy because it defines the identification scheme for the project's products

B. ove entry 7 to Communication procedure because it refers to the method to be used for communication to external parties

C. ove entry 8 to Tools and techniques because it refers to a filing technique

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Correct Answer: A

Question #41

ABC Company carried out a similar project two years ago, in response to changes in health and safety legislation for the health service. The experiences from that project were used to refine the corporate risk management policy. For that reason, the project board decided to use the corporate risk management policy in the risk management approach for this project. Is this appropriate, and why?

A. es, because experience from previous projects should be taken into account in the risk management approach

B. es, because the corporate risk management policy was updated, as a result of lessons from previous projects

C. o, because the risk management approach should be tailored to suit the project and its environment

D. o, because a separate risk management approach is not necessary when the company has a risk management policy

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Correct Answer: A

Question #42

HOTSPOT (Drag and Drop is not supported)Column 1 is a list of actions that occur during the Controlling a Stage process. For each action in Column 1, select from Column 2 the PRINCE2 theme that is being applied. Each selection from Column 2 can be used once, more than once or not at all.Drop down the answer from column 1 to column 2.Hot Area:

A. here can be no time tolerances for any of the stages

B. ll of the project level time tolerance can be allocated to stage 2

C. he Stage Plan for stage 2 could create some additional project time tolerance by allowing no time tolerance in Team Plans

D. dditional time tolerance for the project could be found by adding extra resources without affecting other tolerances

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Correct Answer: A

Question #43

Project Scenario ?€" Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver ?€capability to provide health and safety training?€, including the materials needed for classroom-based training and e-learning. The expected

A. Yes, because the executive should be senior enough within the corporate organization to make funding decisions

B. Yes, because the executive should be available to make decisions and provide direction to the project manager

C. No, because the executive should maintain credibility within the corporate organization by operating at the project board level

D. No, because the executive should give the project manager enough space to manage the project day-to-day

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Correct Answer: A

Question #44

HOTSPOT (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.There is a major concern over an apparent lack of control of project documentation.Fo

A. ee Explanation section for answer

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Correct Answer: A

Question #45

HOTSPOT (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.Column 1 contains a number of risk responses identified by the Project Manager follow

A. ee Explanation section for answer

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Correct Answer: A

Question #46

Which of the following statements is False regarding the Risk Management Strategy?

A. t captures and maintains all relevant information on identified threats and opportunities

B. t documents the risk tolerances

C. t documents the approach to risk

D. t identifies responsibilities towards risk for the project

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Correct Answer: A

Question #47

The project is at the end of stage 4. The project manager has changed the benefits management approach. It now includes all the activities necessary to measure the increased revenue. Who should approve this update?

A. orporate management

B. roject board

C. roject assurance

D. roject manager

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Correct Answer: B

Question #48

Which of the following is the definition for an off-specification?

A. n issue the Project Manager needs to resolve or escalate

B. omething forecast or currently not meeting specification

C. proposal for a change to a baseline

D. statement of concern

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Correct Answer: B

Question #49

Which product should show that if anybody has any remaining resource costs to be charged to the project, they should ensure this is done by 10 November?

A. enefits Review Plan

B. nd Project Report

C. ollow-on action recommendations

D. roject closure notification

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Correct Answer: D

Question #50

Project Scenario ?€" Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver ?€capability to provide health and safety training?€, including the materials needed for classroom-based training and e-learning. The expected

A. 'Manage by stages', because the course development model is updated by the centre of excellence at key stages

B. 'Manage by stages', because the 'starting up a project' process is a key input to the initiation stage

C. 'Learn from experience', because the Health and Safety Training project manager should communicate lessons to cause change

D. 'Learn from experience', because lessons from previous similar projects are applied throughout the standard course development model

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Correct Answer: D

Question #51

Who is responsible for confirming stage and project progress against agreed tolerances?

A. roject Support

B. xecutive

C. roject Assurance

D. roject Manager

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Correct Answer: C

Question #52

At the end of stage 2, the specialist “e-learning course” supplier will be selected. As a result, it is decided that the quality management approach will not be created until the end of stage 2, to take into account this supplier’s standards and techniques. Is this appropriate, and why?

A. es, because the quality management approach should take into account the supplier’s standards, tools and techniques

B. es, because the product description for each product will define the required quality approach within each stage

C. o, because the quality management approach should be created during the initiation stage and updated later

D. o, because the quality management approach should be limited to ABC Company’s quality standards

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Correct Answer: A

Question #53

In order for ABC Company to achieve the expected sales of the health and safety training course, the senior user will need to ensure that all staff understand the objectives and target audience for the course. In addition, these sales will need to be added to each individual’s sales targets. These activities have been included in the benefits management approach.Is this appropriate, and why?

A. es, because how the benefits will be measured needs to be documented

B. es, because the actions required to achieve the outcomes need to be documented

C. o, because the expected sales increase should be recorded in the business case

D. o, because actions to deliver the outputs should be recorded in the stage plan

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Correct Answer: A

Question #54

Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.Is this an appropriate application of the „manage by exception‟ principle, and why?

A. es, because the project manager should set tolerance equally for all work packages in a stage

B. es, because setting appropriate tolerances for work packages will help keep the stage within tolerances

C. o, because tolerances set by the project manager should be the same as those set by the project board

D. o, because the project manager should divide the stage tolerances between the team managers

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Correct Answer: B

Question #55

Use the “Additional Information” in the Scenario Booklet to answer this question.The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager’s team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive. Is this proposed appointment appropri

A. es, because the course developer is responsible for ensuring that trainers deliver courses to the required standard

B. es, because the course developer is likely to have the project management and specialist knowledge required

C. o, because the course developer’s team reports to the Business Development Director, not the Operations Director

D. o, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation

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Correct Answer: A

Question #56

Starting Up a project is triggered by which of the following?

A. egislation

B. orporate Strategy

C. isks

D. andate

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Correct Answer: D

Question #57

While preparing the Risk Management Strategy, the Project Manager considered the commercial customer/supplier environment and how this may affect the management of risk. Which approach should the Outsourcing project adopt?

A. lan to use the selected service provider's risk management procedures

B. ll project risks associated with the specialist deliverables should be owned by the selected service provider

C. ue to the sensitive nature of this project, consideration should be given to creating a separate Risk Register to be held by MFH and the selected supplier

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Correct Answer: C

Question #58

When updating the project plan as part of Managing a stage boundary, what else might be updated?

A. xception Plan

B. roject Management team

C. usiness Case

D. roject Initiation Documentation

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Correct Answer: A

Question #59

When does Directing a Project begin?

A. rom the beginning of Starting up a Project

B. rom the beginning of Initiating a Project

C. rom the completion of Starting up a Project

D. rom the completion of Initiating a Project

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Correct Answer: C

Question #60

DRAG DROP (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.Using the Project Scenario answer the following question. The Plan for stage 3 has

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Correct Answer: A

Question #61

DRAG DROP (Drag and Drop is not supported)PLANSHere are three events to managing plans for the project.In which management product (A-E) should the result of each event be recorded?Choose only one product for each event. Each product can be used once, more than once or not at all.Select and Place:

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Correct Answer: A

Question #62

The Team Manager has received notification that the new hardware and software solution has been installed and completed, but there is a concern that it has not been approved by the appropriate people.Which 2 actions should the Team Manager take to check that the completed products have been approved as required?

A. nsure project controls are based on project's scale, complexity, importance, capability and risk

B. o use a set of pre-defined templates for the size of project

C. o tailor the use of the principles to suit the project

D. o pick which PRINCE2 processes to apply and which to leave out

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Correct Answer: BD

Question #63

DRAG DROP (Drag and Drop is not supported)PROGRESSHere are three statements related to tolerances for the Health and Safety Training Project. For each statement, select the tolerance area (A-E) it represents.Choose only one tolerance area for each statement. Each tolerance area can be used once, more than once, or not at all.Select and Place:

A. ee Explanation section for answer

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Correct Answer: A

Question #64

There are two time driven controls in PRINCE2, which are they?

A. ighlight and End Stage Reports

B. ighlight and Checkpoint Reports

C. heckpoint and End Project Reports

D. ighlight and Lessons Reports

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Correct Answer: B

Question #65

Scenario -A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers?€? performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:?— Do nothing.?— Re-engineer selected business functions.?— O

A. The contract with the selected service provider will be agreed during stage 3

B. The expected benefits will be calculated over 10 years from completion of the project

C. If more MFH divisions are added to the scope of the services to be outsourced, the project timescale will be extended and the realization of benefits will be delayed

D. The expected benefits should start to be realized as soon as the outsourced services become operational at the end of stage 4

E. The transfer of equipment and staff is estimated to take six weeks

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Correct Answer: AB

Question #66

When examining a project issue, which three aspects should be considered?1. Performance targets2. Business Case3. Resources4. Risk

A. ,3,4

B. ,3,4

C. ,2,4

D. ,2,3

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Correct Answer: C

Question #67

What products will be impacted by this change?

A. ll of the project's products created so far

B. nly those products created in the first three weeks of stage 3

C. ll of the project's products which relate to or include services provided by the Facilities Division

D. o products would need to be changed but some will need to be removed from the project

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Correct Answer: D

Question #68

If Project tolerances were threatened, who needs to be notified?

A. roject Board

B. roject Manager

C. orporate or Programme Management

D. xecutive

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Correct Answer: C

Question #69

One of the senior managers of the company that is developing the “e-learning course” has worked with ABC Company before. The team manager for the delivery of the “e-learning course” has looked on ABC Company’s intranet, but cannot find any reference to this work. The team manager has contacted the senior manager to discuss this project.Is this an appropriate application of the “learn from experience” principle, and why?

A. es, because the project involves more than one organization

B. es, because the team manager should actively look for useful information

C. o, because the senior manager should advise the team manager of any lessons

D. o, because every project is unique and should deliver specific business objectives

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Correct Answer: B

Question #70

According to PRINCE2, which statement about the Configuration Management Strategy for the Outsourcing project is correct?

A. very project needs a Configuration Management Strategy, even if the organization has existing configuration management standards, because every project has different circumstances

B. separate Configuration Management Strategy will be required for each of the suppliers within this project because each will have a different way of managing and storing products

C. Configuration Management Strategy is unnecessary for this project because the MFH document control process is documented

View answer

Correct Answer: A

Question #71

MANAGING A STAGE BOUNDARYThe ABC Company trainers have been accredited and the course booking procedures have been amended. The „managing a stage boundary‟ process is taking place at the end of stage 3.Which activity should occur during the „update the business case‟ activity?

A. pdate the overall plan with the time and cost taken to develop the „e-learning course‟ and „amended course booking procedures‟

B. reak the „planned pilot courses‟ down into component products in order to identify the work required to deliver them

C. eview whether the possible sales of the training course to external companies are likely to cover the project costs

D. eview whether a new team manager should be appointed to lead the delivery of the pilot courses during stage 4

View answer

Correct Answer: A

Question #72

In order for ABC Company to achieve the expected sales of the health and safety training course, the senior user will need to ensure that all staff understand the objectives and target audience for the course. In addition, these sales will need to be added to each individual’s sales targets. These activities have been included in the benefits management approach.Is this appropriate, and why?

A. es, because how the benefits will be measured needs to be documented

B. es, because the actions required to achieve the outcomes need to be documented

C. o, because the expected sales increase should be recorded in the business case

D. o, because actions to deliver the outputs should be recorded in the stage plan

View answer

Correct Answer: A

Question #73

During stage 3, the operational staff that handle course bookings asked for the project scope to be increased for an online booking function. The additional product has been as it will enable them to process bookings more quickly and accurately. Is this an appropriate application of the“focus on products” principle, and why?

A. es, because the goal is to seek opportunities to implement improvements after the life of the project

B. es, because the project needs to fulfill stakeholder expectations by delivering the products required

C. o, because there needs to be an understanding of the products from the start of the project

D. o, because existing product descriptions provide a means to estimate effort to planning

View answer

Correct Answer: B

Question #74

The executive has set the following tolerances for stage 2:Time (+/- 1 week)Cost (+/- £20,000)Scope (using MoSCoW prioritization technique)Risk (based on the risk appetite defined in the risk management approach)These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project boar

A. t applies the principle well, because tolerances should be set for the related aspects of project performance for each stage

B. t applies the principle well, because the project manager needs to control the project using discrete management stages

C. t applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance

D. t applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence

View answer

Correct Answer: C

Question #75

The project’s change control approach states that PRINCE2‟s recommended issue and change control procedure will be used. The senior user has requested that a new set of marketing materials and marketing channels be introduced to support the launch of the training course. The senior user has suggested that this should be managed informally. Where should the project manager record the issue, and why?

A. n the daily log, because a change to a product at the default level can be handled informally

B. n the daily log, because the senior user has advised that this change should be informally

C. n the issue register, because this is a request for change requiring a change to a baseline

D. n the issue register, because issues should be recorded here first, before determining how to manage them

View answer

Correct Answer: D

Question #76

Scenario -Additional Information -Product Description -

A. The SLA must extend for the full duration of the service contract

B. Any changes to the SLA must be managed through formal change control

C. External consultants are to assist in the creation of the SLA

D. The selected service provider should be located locally

View answer

Correct Answer: A

Question #77

Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.Is this an appropriate application of the „manage by exception‟ principle, and why?

A. es, because the project manager should set tolerance equally for all work packages in a stage

B. es, because setting appropriate tolerances for work packages will help keep the stage within tolerances

C. o, because tolerances set by the project manager should be the same as those set by the project board

D. o, because the project manager should divide the stage tolerances between the team managers

View answer

Correct Answer: B

Question #78

Use the “Additional Information” in the Scenario Booklet to answer this question.The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager’s team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive. Is this proposed appointment appropri

A. es, because the course developer is responsible for ensuring that trainers deliver courses to the required standard

B. es, because the course developer is likely to have the project management and specialist knowledge required

C. o, because the course developer’s team reports to the Business Development Director, not the Operations Director

D. o, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation

View answer

Correct Answer: A

Question #79

What is the purpose of a Product Status Account?

A. set of records that describe information about the project

B. log used to record problems or concerns about products

C. n audit or review to compare actual status of products

D. report covering the status about the state of the projects products within

View answer

Correct Answer: D

Question #80

During stage 2, an early review of the photo design ideas from the Marketing department has highlighted the need for engineering machinery to be operating in the background during the photo sessions. This requires a change to the baselined Product Description for the photos. What action should the Project Manager take?

A. og the change in the Issue Register as a request for change

B. aise an Exception Report to the Project Board

C. evised the Product Description for the photos and issue it to the Engineering Manager to ensure that the machinery will be operating during the photo sessions

D. nclude this requirement on the next Checkpoint Report to the photographer

View answer

Correct Answer: A

Question #81

The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company’s continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely. Is this an appropriate application of the “manage by stages” principle, and why?

A. es, because decisions about closure should be escalated to programme management, unless otherwise instructed

B. es, because the project board should escalate significant decisions to programme management

C. o, because this contradicts the „manage by exception‟ principle

D. o, because the project board should decide whether to continue with the project

View answer

Correct Answer: A

Question #82

HOTSPOT (Drag and Drop is not supported)Using the Product Summary and Product Breakdown Structure provided as additional Information for this question In the Scenario Booklet, answer the following question.Column 1 is a list of some of the entries in the product breakdown structure. Determine whether each entry in Column 1 has been correctly shown in the product breakdown structure. Select from Column 2 the appropriate statement that correctly describes that entry. Each selection from Column 2 can be used o

A. ee Explanation section for answer

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Correct Answer: A

Question #83

When considering the business options in the business case, which of these is NOT an option?

A. o nothing

B. o the maximum

C. o the minimum

D. o something

View answer

Correct Answer: B

Question #84

The executive has set the following tolerances for stage 2:Time (+/- 1 week)Cost (+/- £20,000)Scope (using MoSCoW prioritization technique)Risk (based on the risk appetite defined in the risk management approach)These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project boar

A. t applies the principle well, because tolerances should be set for the related aspects of project performance for each stage

B. t applies the principle well, because the project manager needs to control the project using discrete management stages

C. t applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance

D. t applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence

View answer

Correct Answer: C

Question #85

HOTSPOT (Drag and Drop is not supported)Lines 1 to 6 in the table below consist of an assertion statement and a reason statement For each line identify the appropriate option, from options 1 to 6, that applies. Each option can be used once, more than once or not at all.Hot Area:

A. ee Explanation section for answer

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Correct Answer: A

Question #86

DRAG DROP (Drag and Drop is not supported)BUSINESS CASEHere are three actions related to applying the business case theme. Which role (A-F) should carry out each action?Choose only one role for each action. Each role can be used once, more than once, or not at all.Select and Place:

A. ee Explanation section for answer

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Correct Answer: A

Question #87

What will be the impact on the benefits?

A. educed savings, now £10m over 10 years

B. ncreased savings of £5m over 10 years from the new initiative to centralize the services provided by the Facilities Division

C. n additional cost of £1

D. utsourcing project cost reduced by 50%

View answer

Correct Answer: A

Question #88

The development of the “e-learning course” will be outsourced to an external supplier and their key members will join the project management team. The supplier wants to keep their work processes confidential and not share these with ABC Company.ABC Company has agreed.Who should approve the external supplier’s team plan?

A. enior supplier

B. roject manager

C. upplier assurance

D. orporate, programme management or customer

View answer

Correct Answer: D

Question #89

If Project tolerances were threatened, who needs to be notified?

A. roject Board

B. roject Manager

C. orporate or Programme Management

D. xecutive

View answer

Correct Answer: C

Question #90

Which product should register that the risk of a competitor producing a calendar at the same time was identified at the beginning of the project but the assessment of this risk appears to have been poor?

A. ssue Register

B. ollow-on action recommendations

C. essons Report

D. isk Register

View answer

Correct Answer: C

Question #91

While capturing previous lessons, the Project Manager discovered several interesting facts about outsourcing. Which fact is an appropriate lesson for the Outsourcing project?

A. utsourcing is a growth industry and is being implemented by many private sector organizations

B. our other government departments are also considering outsourcing some of their business functions next year

C. ontracts with service providers should include the timescale within which readiness for service is expected following the transfer of equipment and staff

View answer

Correct Answer: C

Question #92

Project Scenario ?€" Health and Safety Training Project:ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver ?€capability to provide health and safety training?€, including the materials needed for classroom-based training and e-learning. The expected

A. Every PRINCE2 project must have at least two management stages, including the initiation stage

B. Stage boundaries are decision points allowing the opportunity for the project's viability to be assessed

C. The project needs to be properly initiated before work starts on delivery of the e-learning course

D. The project manager should be able to manage the project on a day-to-day basis during the project

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Correct Answer: B

Question #93

Which 2 statements apply to either the Extracts or references or Approval method sections?

A. ee Explanation section for answer

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Correct Answer: AB

Question #94

Which of the following statements describes an outcome?

A. ny of the projects specialist products

B. result of the change derived from using the project's products

C. measurable improvement resulting from a change

D. omething perceived as advantages by a stakeholder

View answer

Correct Answer: B

Question #95

Which of the following principles describes this statement?"xxx defines tolerances for each project objective to establish limits of delegated authority"

A. anage by stages

B. ocus on products

C. anage by exception

D. earn from experience

View answer

Correct Answer: C

Question #96

Scenario -A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers?€? performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:?— Do nothing.?— Re-engineer selected business functions.?— O

A. The re-engineering of selected business functions would not provide the required outcome

B. The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required

C. Use external consultants to provide guidance on the detailed design of the outsourced services

D. Set up a PRINCE2 project to deliver the outsourced services

E. Review a list of service providers to determine a short-list of possible service providers

View answer

Correct Answer: CD

Question #97

Which product should register that the risk of a competitor producing a calendar at the same time was identified at the beginning of the project but the assessment of this risk appears to have been poor?

A. ssue Register

B. ollow-on action recommendations

C. essons Report

D. isk Register

View answer

Correct Answer: C

Question #98

Which other management product is created when the Business case is updated during Initiating a Project?

A. ost project review plan

B. isk Register

C. enefits Review plan

D. ssue Register

View answer

Correct Answer: C

Question #99

Which statement is an appropriate entry for the outline Business Case heading within the Project Brief?

A. 0-year service contract should be agreed with the selected service provider

B. xternal consultants were employed to conduct a feasibility study to identify the options, their likely costs and benefits

C. he project will run for two years and the benefits will be realized over 1a years

D. he project should be split into four management stages

View answer

Correct Answer: C

Question #100

Which of the following activities is NOT an action of preparing for planned closure?

A. pdate the project plan with actual

B. pdate the Project Management Team

C. equest a product status account

D. onfirm project has delivered what is defined in Project Product Description

View answer

Correct Answer: B

Question #101

The Team Manager has received notification that the new hardware and software solution has been installed and completed, but there is a concern that it has not been approved by the appropriate people.Which 2 actions should the Team Manager take to check that the completed products have been approved as required?

A. nsure project controls are based on project's scale, complexity, importance, capability and risk

B. o use a set of pre-defined templates for the size of project

C. o tailor the use of the principles to suit the project

D. o pick which PRINCE2 processes to apply and which to leave out

View answer

Correct Answer: BD

Question #102

A quality review of the „marketing materials‟ has started. The team manager for the „marketing materials‟ has been unhappy with the team’s workload throughout the project and refuses to attend the review meeting to present the material. The team manager suggests that a new marketing team member make the presentation. However, the chair decides to represent the marketing team and makes a list of actions to resolve later. Is this an appropriate approach to the quality review, and why?

A. es, because the role of presenter should not be performed by a junior member of the team

B. es, because the roles of chair, presenter and administrator may be combined

C. o, because the role of presenter should be performed by the team manager

D. o, because the chair should be independent from the product being reviewed

View answer

Correct Answer: D

Question #103

During stage 2, if the Project Manager decides to recommend that the Project Plan is revised to finish three weeks later, which statement is correct?

A. he tolerances stated in the Project Plan CANNOT be changed

B. he Executive needs to seek formal approval from corporate management to implement this change

C. he current project must close prematurely and be restarted with a new Project Plan, a new Business Case and new Risk Register

D. he revision of the Project Plan would have to wait until the end stage assessment of stage 2

View answer

Correct Answer: B

Question #104

This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.Which statement applies to the Communication procedure section?

A. o change to entry 2 because this is a sufficient description of the process required

B. mend entry 2 to include MNO Manufacturing Company standards for both internal and external company communications

C. elete entry 2 because only variations from the MNO Manufacturing Company standards should be recorded here

View answer

Correct Answer: B

Question #105

Scenario -A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers?€? performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:?— Do nothing.?— Re-engineer selected business functions.?— O

A. An investment of ?￡2

B. Staff morale will be negatively affected

C. The project will take two years to deliver

D. Staff may lose the opportunity to work in Information Technology

E. MFH will lose direct control over the outsourced business functions

View answer

Correct Answer: CE

Question #106

During stage 3, project costs are increasing but there will still be a positive return on investment, as documented in the business case. However, corporate management has recently revised its targets for return on investment and has decided to stop the project as it will not meet the new targets.Is this an appropriate application of the „continued business justification‟ principle?

A. es, because changes in corporate strategy may impact a project’s justification

B. es, because a change in a project’s justification should trigger premature closure

C. o, because the project business case still justifies a project

D. o, because changes in corporate strategy should not impact a project once authorized

View answer

Correct Answer: C

Question #107

HOTSPOT (Drag and Drop is not supported)The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.Column 1 contains a number of risk responses identified by the Project Manager follow

A. ee Explanation section for answer

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Correct Answer: A

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