1.2 Describe Key Concepts Related to Project Management PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 1)

Questions 1–5

1. 1expert · hard

   A telecommunications company is deciding whether to classify a new initiative as a project or as business-as-usual (BAU). The initiative involves upgrading the network infrastructure in a single city. The work is similar to upgrades done in other cities, but this one has a unique constraint: it must be completed before a major sporting event. The team will use the same procedures as their standard upgrade work. How should this initiative be classified?

   • AAs a project, only if the budget is significantly different from previous upgrades.
   • BAs business-as-usual, because it is similar to work done in other cities.
   • CAs a project, because it has a unique constraint (the sporting event) and a defined end date.
   • DAs business-as-usual, because the team is using standard procedures.
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2. 2application · easy

   A project manager is planning a small, low-risk project to update internal documentation. They decide to simplify the PRINCE2 approach by using fewer management products and a lighter reporting structure. Which feature of PRINCE2 explicitly allows for this kind of simplification?

   • AThe 'manage by stages' principle, which requires detailed stage plans.
   • BThe 'tailor to suit the project environment' principle.
   • CThe 'focus on products' principle, which emphasizes output over process.
   • DThe 'continued business justification' principle, which ensures value for money.
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4. 3application · medium

   A city council is planning a project to build a new public library. The project is expected to take three years and will involve multiple contractors, public consultations, and strict environmental regulations. The council's finance department is concerned about cost overruns. Which reason for using project management is most directly relevant to the finance department's concern?

   • ATo manage the complexity of multiple contractors and regulations.
   • BTo ensure the library is built to a unique design.
   • CTo provide ongoing maintenance for the library after it is built.
   • DTo eliminate the need for public consultations.
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5. 4foundation · easy

   What does it mean for a project to be 'temporary'?

   • AIt can be cancelled at any time without consequence
   • BIt produces a result that is not permanent
   • CIt has a defined start and end date
   • DIt lasts for less than one year
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6. 5foundation · easy

   What is the purpose of the tailoring approach in PRINCE2?

   • ATo adapt the method to the specific project environment
   • BTo replace the need for project management
   • CTo ensure every project uses identical processes
   • DTo limit the use of PRINCE2 to large projects
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