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| Section | Weight | Objectives |
|---|---|---|
| PRINCE2 Processes | 28% | - Apply the seven Processes
|
| People & Project Context Integration | 20% | - People management and collaboration
|
| PRINCE2 Principles | 12% | - Apply the seven PRINCE2 Principles in context
|
| PRINCE2 Practices | 40% | - Apply and tailor the seven Practices
|
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NEW QUESTION # 27
The Louistown City Council operates a well-established and standardized project management framework that includes a defined procedure for developing business cases. For the LouisShopping Project, a 'strategic business case' was included in the project brief submitted to the project board at the conclusion of the
'starting up a project' process. The project has now entered the 'initiating a project' process, during which the full business case is being built upon the strategic business case, which was itself derived from the Council's five-year strategic plan for the 'Louistown is Open for Business' portfolio.
Does this represent an appropriate application of the 'business case' practice, and why?
Answer: B
Explanation:
The correct answer is B . PRINCE2 7 is designed to be tailored to the organizational environment in which a project operates. It specifies the purpose and required governance of the business case rather than requiring every organization to use identical terminology or documentation structures.
The City Council already has a mature and standardized procedure. Its strategic business case provides the early justification during starting up a project, and the more detailed business case is then developed during initiating a project. Functionally, this follows the PRINCE2 lifecycle in which an initial justification is established early and subsequently refined into a sufficiently detailed business case for project authorization and ongoing decision-making.
Option C treats the label "outline business case" as mandatory. PRINCE2 tailoring allows established corporate terminology and management products to be used where they fulfil the required purpose and preserve the necessary controls. Option A refers to multiple analytical perspectives but does not address the central issue in the scenario: whether the Council's established business-case procedure may legitimately be used. Option D is incorrect because the existence of a portfolio office does not transfer all project-level responsibility for developing and maintaining the project's business justification away from the project organization.
The key consideration is equivalence of purpose and control, not rigid terminology.
PRINCE2 7 reference topics: Business case practice; tailoring; organizational standards; starting up a project; initiating a project; continued business justification.
NEW QUESTION # 28
A new law requires everyone working on public-infrastructure projects to hold an appropriate security clearance. The project manager records the legislation as an external event in the issue register so that its effects can be assessed.
Is this an appropriate application of the issues practice, and why?
Answer: B
Explanation:
The correct answer is A . The legislation is an external event that has already occurred : a new legal requirement now applies to people working on public-infrastructure projects. It therefore represents an issue rather than merely an uncertain future risk. Recording it in the issue register enables the project team to assess its impact and determine what action may be necessary.
The effect could be significant. Existing or planned personnel may not possess the required security clearance, which could constrain the availability of resources, delay mobilization, alter supplier arrangements, increase costs, or affect scheduled delivery. The project manager should therefore ensure the event is captured and assessed rather than waiting until every consequence is known.
Option B is incorrect because external events that affect project objectives should still be managed through the project's agreed governance and issue-management controls. Option C would delay formal management of an event whose implications may require immediate investigation and action. Option D incorrectly assumes that externally generated issues belong exclusively to the business layer. The business may need to participate in resolving some consequences, but the project team must manage impacts on the project within its authority and escalation arrangements.
The key distinction is that an issue concerns something that has happened or is currently relevant , whereas a risk concerns uncertainty about a future event.
PRINCE2 7 reference topics: Issues practice; external events; issue register; issue assessment; resource impacts; risk-versus-issue distinction.
NEW QUESTION # 29
While preparing the project plan during initiation, the project manager proposes that stage 2 should end at the Council's financial year-end. This would allow the decision on funding for stage 3 to coincide with the Council's annual budget process.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: A
NEW QUESTION # 30
Before the end of stage 2, the project board authorizes a change that adds more trees and seating to the external landscaping. The change can be delivered in stage 3 without any forecast breach of project tolerance.
While preparing the next stage plan, the project manager incorporates the additional products and work, updates the relevant product descriptions and product register entries, and reviews whether the project initiation documentation needs to be updated.
Is this an appropriate application of 'prepare the next stage plan', and why?
Answer: A
Explanation:
The correct answer is A . When preparing the next stage plan, the project manager must incorporate all relevant authorized changes that affect the products or work to be undertaken in the forthcoming management stage. The stage plan must represent the current authorized baseline rather than an obsolete version of what was originally intended.
The additional trees and seating have already been authorized by the project board, and the change can be incorporated without a forecast breach of overall project tolerance. The project manager should therefore reflect the additional products and activities in the stage 3 plan, revise affected product descriptions and product-register information, and determine whether corresponding elements of the project initiation documentation need updating.
Option B is incorrect because an exception plan is not required for every authorized change. Exception planning is used where agreed tolerance is forecast to be exceeded and the higher management level requests a replacement plan. The scenario explicitly states that project tolerance is not forecast to be breached. Option C incorrectly introduces mandatory re-authorization by the business layer. Option D is incorrect because preparing the next stage plan is a project manager responsibility; project assurance may independently review the resulting information but does not prepare it instead.
PRINCE2 7 reference topics: Managing a stage boundary; prepare the next stage plan; authorized changes; product descriptions; product register; PID maintenance; exception plans.
NEW QUESTION # 31
The Business Opportunities Director, acting as project executive, proposes that the Head of the Portfolio Office should perform business assurance and should also approve the viability of the business case and the achievability of the project plan.
Is this an appropriate application of the organization practice, and why?
Answer: C
Explanation:
The correct answer is C . PRINCE2 distinguishes between accountability and assurance . Project assurance provides an independent assessment of whether the project is being conducted properly and whether the information presented to the project board is reliable. Assurance can therefore review the business case, examine the project plan, and provide confidence concerning viability and achievability.
However, assigning an assurance provider does not transfer the project executive's accountability. The project executive remains ultimately accountable for ensuring that the project continues to represent a worthwhile investment and that the business case remains valid. The project executive also chairs the project board and is responsible for balancing the business, user, and supplier interests.
Option A incorrectly assumes that delegation of assurance transfers accountability. PRINCE2 explicitly preserves accountability at the project board level. Option B similarly confuses independent review with ownership of the business case. Option D is also too restrictive: an appropriately independent portfolio-office function may perform project assurance if this arrangement is suitable and does not compromise the required independence.
The Head of Portfolio Office may therefore perform business-assurance work, but cannot assume the project executive's fundamental accountability for project justification.
PRINCE2 7 reference topics: Organization practice; project executive; project assurance; delegation versus accountability; business assurance; continued business justification.
NEW QUESTION # 32
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