How is the business justification used throughout a PRINCE2 project?

It is used only at the start of the project to obtain approval to proceed.

It is used only at the end of the project to evaluate success.

It is used to decide whether the project should continue at each stage boundary and when issues arise.

It is used by the project manager to assign tasks to team members.

What is the purpose of setting tolerances in PRINCE2?

To allow deviations from the plan within agreed limits without needing to escalate to the next management level

To define the exact specifications of each project product

To ensure that all products meet the same quality standard

To identify the risks that could affect the project's objectives

A project is in the initiation stage. The project manager is developing the business case. Which of the following is a KEY element that must be included?

The project's benefits and dis-benefits

The project's communication plan

The project's detailed schedule

A project is developing a new e-commerce website. The business case includes a benefit of 'increase online sales by 30%'. The project manager is reviewing the project's progress and notices that the current design is unlikely to achieve this benefit. What is the project manager's BEST action?

Escalate the risk to the project board

Change the business case to remove the benefit

Continue with the project and hope the benefit is achieved

A project is in the delivery stage. The project manager receives a change request that will increase costs by 12%, which exceeds the cost tolerance of 10%. However, the change will also increase benefits by 20%, which exceeds the benefit tolerance of 15%. The project board is unavailable for two weeks. What should the project manager do?

Wait for the board to become available and then escalate

Implement the change and inform the board later

Reject the change because it exceeds cost tolerance

Implement the change and update the business case

PRINCE2 Foundation (Version 7)

Domain 4Objective 6

4.1.5 Describe the Guidance for Effective Management of the Business Case, Including: (5.2) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 1)

Part of the Understand the PRINCE2 practices and how they are applied throughout the project domain, which accounts for 60% of the PRINCE2-FOUNDATION-VERSION-7 exam. PeopleCert does not publish an official question count, but from its 60-minute exam (~25–40 total, ~15–24 in this domain), expect 1–1 from this objective — we provide 18 practice questions to prepare you well beyond it. (estimate)

18questions here

4free pages

3concepts

60%of the exam

Questions 1–5

1foundation · easy
How is the business justification used throughout a PRINCE2 project?
Select an answer first
2foundation · easy
What is the purpose of setting tolerances in PRINCE2?
Select an answer first
3application · medium
A project is in the initiation stage. The project manager is developing the business case. Which of the following is a KEY element that must be included?
Select an answer first
4application · medium
A project is developing a new e-commerce website. The business case includes a benefit of 'increase online sales by 30%'. The project manager is reviewing the project's progress and notices that the current design is unlikely to achieve this benefit. What is the project manager's BEST action?
Select an answer first
5expert · hard
A project is in the delivery stage. The project manager receives a change request that will increase costs by 12%, which exceeds the cost tolerance of 10%. However, the change will also increase benefits by 20%, which exceeds the benefit tolerance of 15%. The project board is unavailable for two weeks. What should the project manager do?
Select an answer first

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