PRINCE2 Foundation

What is the primary purpose of the "Continued Business Justification" principle in PRINCE2?

• ATo ensure the project remains viable and worthwhile throughout its lifecycle
• BTo document all costs associated with the project
• CTo obtain initial funding approval from the Executive
• DTo compare the project against competitor initiatives

Which PRINCE2 principle ensures that lessons are actively sought throughout the project?

• AManage by Stages
• BLearn from Experience
• CFocus on Products
• DTailor to Suit the Project

According to the "Defined Roles and Responsibilities" principle, which statement is TRUE?

• AThe Project Manager performs all project management duties alone
• BRoles should be combined whenever possible to reduce overhead
• CRoles must be clearly defined with distinct accountabilities
• DOnly the Executive needs a clearly defined role

What does the "Manage by Stages" principle require?

• AAll project work must be completed in a single stage
• BThe project must be planned and controlled on a stage-by-stage basis
• CEach stage must last exactly one month
• DStages should be avoided to reduce management overhead

The "Manage by Exception" principle is implemented through which mechanism?

• ADaily team meetings to review all issues
• BTolerance limits defined for each level of management
• CWeekly status reports to all stakeholders
• DAutomatic escalation of all risks to the Executive

Which principle states that a project should focus on the definition and delivery of products?

• AFocus on Products
• BContinued Business Justification
• CManage by Stages
• DTailor to Suit the Project

What does the "Tailor to Suit the Project" principle allow?

• AIgnoring principles that are inconvenient
• BAdapting PRINCE2 to suit the project environment, size, complexity, and risk
• CRemoving all documentation requirements for small projects
• DChanging the project objectives to match available resources

Which of the following is NOT one of the seven PRINCE2 principles?

• AContinued Business Justification
• BManage by Stages
• CQuality First
• DFocus on Products

When should the Business Case be reviewed according to the Continued Business Justification principle?

• AOnly at the beginning of the project
• BAt the end of the project only
• CAt key decision points, particularly stage boundaries
• DOnly when requested by the Project Manager

In the context of the Learn from Experience principle, where should lessons be documented during the project?

• AOnly in the End Project Report
• BIn the Lessons Log throughout the project
• COnly in the Project Initiation Documentation
• DLessons should not be documented until project closure

How many tolerance areas does PRINCE2 7 define for setting tolerances?

• A3 (time, cost, and quality)
• B7 (time, cost, scope, quality, risk, benefit, and sustainability)
• C2 (time and cost only)
• DUnlimited tolerance areas

According to the Focus on Products principle, what should be defined before planning the activities?

• AThe project budget
• BThe required products and their quality criteria
• CThe project team structure
• DThe risk management strategy

Which statement about tailoring PRINCE2 is TRUE?

• AThe seven principles can be reduced to five for small projects
• BPractices can be completely removed if not relevant
• CProcesses can be merged or adapted to suit the project context
• DTailoring is not allowed in PRINCE2

What is the minimum number of management stages required in a PRINCE2 project?

• AOne stage is sufficient
• BAt least two stages: an initiation stage and at least one delivery stage
• CAt least five stages
• DThe number of stages must equal the number of delivery teams

Which three stakeholder interests must be represented in the project organization according to the Defined Roles and Responsibilities principle?

• ABusiness, User, and Supplier
• BExecutive, Project Manager, and Team Manager
• CCustomer, Contractor, and End User
• DFinance, Operations, and Marketing

What is the primary purpose of the Business Case practice in PRINCE2?

• ATo document all project expenses
• BTo establish mechanisms to judge whether the project remains desirable and achievable
• CTo assign resources to project tasks
• DTo track project schedule progress