A retail company wants to launch a new loyalty program. The project manager has been asked to start work, but the project mandate is vague and there is no clear business case yet. According to PRINCE2, what should the project manager do first?

Run the Starting up a Project process to ensure the project is viable and to plan the initiation stage.

Execute the Closing a Project process to formally close the project before it starts.

Start the Initiating a Project process to develop a detailed business case and project plan.

Proceed directly to Controlling a Stage to monitor the first stage of work.

What is the main purpose of the Directing a Project process?

To deliver the project's products within the current stage

To produce the detailed project plan and baselines

To manage the day-to-day activities of the project team

To enable the project board to make key decisions and provide overall control of the project

During a stage, the project manager discovers that a key product will be delivered late, which will exceed the stage's time tolerance. The project manager also has a potential solution that could bring the product back on schedule, but it would require additional budget. What should the project manager do?

Ask the team manager to work overtime to meet the original deadline.

Implement the solution and inform the project board in the next stage boundary report.

Escalate the situation to the project board with the potential solution and its cost implications.

Use the budget tolerance to fund the solution without board approval.

At a stage boundary, the project manager prepares the end stage report and the next stage plan. The business case shows that the project's benefits are no longer achievable. What should the project manager recommend to the project board?

Continue to the next stage because the project plan is still on schedule.

Recommend that the project be closed because the business case is no longer viable.

Proceed to the next stage and hope benefits will be realized later.

Ask the project board to approve the next stage without reviewing the business case.

Which of the following is an objective of the Initiating a Project process?

To create the project initiation documentation (PID) and obtain approval to proceed

To authorize the start of the project and provide overall direction

To ensure that work packages are delivered according to the plan

To review the project's progress and update the business case at the end of a stage

PRINCE2 Foundation (Version 7)

Domain 5Objective 2

5.2 Explain the Objectives of the PRINCE2 Processes PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Part of the Understand the PRINCE2 processes and how they are carried out throughout the project domain, which accounts for 15% of the PRINCE2-FOUNDATION-VERSION-7 exam. PeopleCert does not publish an official question count, but from its 60-minute exam (~25–40 total, ~4–6 in this domain), expect 1–2 from this objective — we provide 30 practice questions to prepare you well beyond it. (estimate)

30questions here

6free pages

7concepts

15%of the exam

Questions 11–15

11application · medium
A retail company wants to launch a new loyalty program. The project manager has been asked to start work, but the project mandate is vague and there is no clear business case yet. According to PRINCE2, what should the project manager do first?
Select an answer first
12foundation · easy
What is the main purpose of the Directing a Project process?
Select an answer first
13expert · hard
During a stage, the project manager discovers that a key product will be delivered late, which will exceed the stage's time tolerance. The project manager also has a potential solution that could bring the product back on schedule, but it would require additional budget. What should the project manager do?
Select an answer first
14expert · hard
At a stage boundary, the project manager prepares the end stage report and the next stage plan. The business case shows that the project's benefits are no longer achievable. What should the project manager recommend to the project board?
Select an answer first
15foundation · easy
Which of the following is an objective of the Initiating a Project process?
Select an answer first

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