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| Section | Objectives |
|---|---|
| Topic 1: People | - People management and effective collaboration |
| Topic 2: Principles | - Apply the PRINCE2 principles in context |
| Topic 3: Practices | - Organizing - Issues - Risk - Quality - Plans - Progress - Business case |
| Topic 4: Processes | - Directing a project - Controlling a stage - Closing a project - Managing product delivery - Starting up a project - Initiating a project - Managing a stage boundary |
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NEW QUESTION # 52
As stage 3 approaches its end, the project manager seeks supplier-related advice from the CEO of BuildyBrick, acting in the senior supplier interest, about planning the testing and inspections in stage 4.
Under which 'directing a project' activity is this informal consultation provided?
Answer: A
Explanation:
The correct answer is B - Give ongoing direction . The directing a project process is not limited to formal authorization decisions at stage boundaries. The project board also remains available throughout delivery to provide advice, guidance, and direction within its areas of responsibility. This continuing governance activity is captured by give ongoing direction .
In the scenario, the project manager informally consults the CEO of BuildyBrick in the senior supplier interest concerning testing and inspection arrangements for the forthcoming stage. This is specialist, supplier- related advice rather than a request for formal authorization. The senior supplier is appropriately positioned to provide guidance on technical feasibility, specialist resources, supplier capability, and the practical implications of planned quality activities.
Option A would apply when the project board formally reviews and decides whether to authorize a stage plan or exception plan. The scenario occurs while stage 4 is being planned, but the activity described is specifically an informal consultation , not the formal authorization decision itself. Option C concerns authorization of the initiation stage near the start of the project. Option D concerns formal authorization of the overall project following initiation.
The defining feature is therefore the provision of responsive board-level guidance during the project's life without making a formal authorization decision.
PRINCE2 7 reference topics: Directing a project; give ongoing direction; senior supplier; project board advice; stage planning; formal versus informal project-board control.
NEW QUESTION # 53
During initiation, new information from BuildyBrick shows that additional protection of historic buildings will extend the planned duration.
Which role should the project manager consult to check that the revised plan still meets the needs of the project board and business?
Answer: A
Explanation:
The correct answer is C - Project assurance . Project assurance exists to provide the project board with confidence that the project is being conducted appropriately and remains consistent with the interests represented by the board. Assurance includes reviewing whether plans remain realistic, feasible, aligned with agreed objectives, and suitable for supporting project-board decision-making.
Here, BuildyBrick has supplied new information showing that protecting historic buildings will increase the planned duration. Before relying on the revised plan, the project manager needs confidence that it remains appropriate from the perspective of both the project board and the wider business. Consulting project assurance is therefore appropriate because assurance can independently review the plan against agreed objectives, targets, tolerances, business justification, and applicable organizational requirements.
Option A is incorrect because the business layer establishes strategic direction and commissions the project rather than routinely reviewing detailed project planning changes on behalf of the board. Option B is concerned primarily with specialist product delivery at team level. Option D is plausible because the project executive represents the business interest, but the question specifically concerns checking that a revised plan meets project-board and business needs. That independent review and confidence-giving function is characteristic of project assurance.
PRINCE2 7 reference topics: Organization practice; project assurance; project board; project planning; business interest; initiating a project.
NEW QUESTION # 54
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: D
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 # 55
The risk register states that excavation may cause subsidence and damage nearby historic buildings. The planned response is to survey the buildings and monitor vibration during excavation. The project executive is named as risk owner and the project manager as the sole risk action owner, even though operational specialists will perform the surveys and monitoring.
Is this an appropriate assignment, and why?
Answer: D
Explanation:
The correct answer is D . PRINCE2 distinguishes between the risk owner and the risk action owner . The risk owner is responsible for managing, monitoring, and controlling an assigned risk, including ensuring that an appropriate response is established. A risk action owner is responsible for carrying out a specific agreed response action.
In the scenario, the project executive may legitimately be assigned ownership if that allocation is appropriate to the nature and significance of the risk. However, the response consists of operational activities-surveying buildings and monitoring vibration-that will actually be performed by specialists. Naming the project manager as the sole action owner merely because the project manager coordinates project delivery does not accurately allocate responsibility for implementing those specific actions.
Option A therefore overstates the requirement for the project manager to own every response action. Option B focuses only on seniority and potential effect on business justification, rather than addressing the inappropriate action ownership. Option C is incorrect because PRINCE2 does not require the risk owner and risk action owner to be the same person.
Clear allocation matters because it establishes precisely who monitors the overall exposure and who is accountable for implementing each agreed response action.
PRINCE2 7 reference topics: Risk practice; risk owner; risk action owner; risk responses; ownership and accountability; risk register.
NEW QUESTION # 56
During initiation, the project executive asks the project manager to evaluate a credible business option that omits the underground car park. The project manager includes an investment appraisal of that option in the full business case, despite the main contractor's objection.
Is this an appropriate application of the business case practice, and why?
Answer: D
Explanation:
The correct answer is A . The purpose of the business case is to provide the information needed to determine whether the project represents a desirable, viable, and achievable investment. Developing that justification requires the project to evaluate credible alternatives rather than assuming that the initially proposed solution is automatically the optimum investment.
The option without the underground car park is described as credible. It is therefore appropriate for the project manager to include an investment appraisal of that option so that decision-makers can compare its costs, benefits, risks, dis-benefits, and overall value with those of the preferred solution. The main contractor's objection does not remove the project's responsibility to examine legitimate business alternatives; supplier preferences must not determine investment justification.
Option B is incorrect because PRINCE2 does not impose a universal requirement for customer and supplier organizations to maintain completely separate business cases. Option C incorrectly treats initial scope as immutable. During development of the business case, alternative configurations can be evaluated when this helps determine the most appropriate investment. Option D similarly assumes that one anticipated benefit- parking income-precludes examination of other options. A benefit is an input to investment appraisal, not a reason to suppress alternatives.
The scenario therefore demonstrates objective option appraisal as part of sound business justification.
PRINCE2 7 reference topics: Business case practice; business options; investment appraisal; justification; desirability, viability and achievability; initiating a project.
NEW QUESTION # 57
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