A project is being initiated to develop a new insurance product. The project board has set a cost tolerance of plus or minus 10% for the project. During stage 2, the project manager forecasts that the stage will exceed its cost tolerance by 15%. What should the project manager do?

Ask the project assurance for permission to exceed the tolerance.

Revise the business case to reflect the higher costs and continue.

Continue with the stage as planned and report the overrun at the next stage boundary.

Escalate the forecast overrun to the project board as an exception.

A small, low-risk project to update internal documentation is being set up. The project manager wants to tailor the business case practice to suit the project's size and complexity. What is an appropriate tailoring approach?

Omit the business case entirely because the project is small.

Use a simplified business case with a short justification and a single stage.

Combine the business case with the project plan into a single document.

Use the full business case template and all four management stages.

A project to launch a new online learning platform is in the initiation stage. The project manager is drafting the business case. The project board has asked for a clear justification for the project. What is the primary purpose of the business case in this context?

To define the project's approach to quality.

To list the project's risks and issues.

To provide a rationale for the project's existence and to justify its continued investment.

To document the project's scope and deliverables.

Which principle is supported by the business case practice's definition of tolerances for benefits?

Defined roles and responsibilities

Tailor to suit the project environment

PRINCE2 Foundation (Version 7)

Domain 4Objective 3

4.1.2 Describe the Key Relationships Between the ‘business Case’ Practice and the Principles (5.7, Tab 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 28 practice questions to prepare you well beyond it. (estimate)

28questions here

6free pages

10concepts

60%of the exam

Questions 1–5

1application · medium
A project is being initiated to develop a new insurance product. The project board has set a cost tolerance of plus or minus 10% for the project. During stage 2, the project manager forecasts that the stage will exceed its cost tolerance by 15%. What should the project manager do?
Select an answer first
2application · medium
A small, low-risk project to update internal documentation is being set up. The project manager wants to tailor the business case practice to suit the project's size and complexity. What is an appropriate tailoring approach?
Select an answer first
3application · medium
A project to launch a new online learning platform is in the initiation stage. The project manager is drafting the business case. The project board has asked for a clear justification for the project. What is the primary purpose of the business case in this context?
Select an answer first
4foundation · easy
Which of the following is one of the seven PRINCE2 principles?
Select an answer first
5foundation · easy
Which principle is supported by the business case practice's definition of tolerances for benefits?
Select an answer first

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