1.2 Describe Key Concepts Related to Project Management PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which of the following is a key characteristic of a project?

   • AIt requires no resources
   • BIt produces a unique product, service, or result
   • CIt is a permanent, ongoing operation
   • DIt has no defined objectives
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2. 22expert · hard

   A logistics company is running a project to implement a new warehouse management system. The project is facing challenges: the project board is not engaged, team members are unsure of their responsibilities, and there is no clear plan for how the system will be rolled out. The company wants to use PRINCE2 to address these issues. Which sequence of actions best aligns with PRINCE2's approach to resolving these challenges?

   • AUse the 'Closing a Project' process to formally end the project and reassign the team.
   • BFocus only on the 'Managing Product Delivery' process to ensure the team delivers the system.
   • CImmediately create a detailed stage plan and assign tasks to team members to get work started quickly.
   • DStart with the 'Starting up a Project' process to establish the project board and define roles, then use the 'Initiating a Project' process to create a detailed plan.
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4. 23application · medium

   A large insurance company is adopting PRINCE2 to standardize how it runs projects. One of the first projects to use the method is a new claims-processing system. The project manager notices that the project board is now receiving clear, exception-based reports and only needs to make decisions at key checkpoints. Which benefit of PRINCE2 is most clearly demonstrated in this scenario?

   • AReduced project cost by eliminating all management activities.
   • BImproved control through management by exception.
   • CIncreased project success rates due to a proven methodology.
   • DBetter stakeholder engagement through regular communication.
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5. 24foundation · easy

   How does a project typically relate to business-as-usual?

   • AIt operates in isolation from business-as-usual
   • BIt is a temporary endeavor that may deliver change to business-as-usual
   • CIt is a type of business-as-usual activity
   • DIt replaces business-as-usual permanently
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6. 25application · medium

   A utility company is running a project to upgrade its customer billing system. The project team is working alongside the regular operations team that handles daily billing queries. A new government regulation on data privacy is announced mid-project, which will affect how customer data must be stored. How should the project manager view this regulation in the context of the project's environment?

   • AAs a reason to immediately stop the project because the regulation makes it impossible.
   • BAs an internal influence that the operations team should handle without involving the project.
   • CAs an external influence that may require changes to the project's scope or approach.
   • DAs an example of business-as-usual that does not affect the temporary project.
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