2.1 Explain the PRINCE2 Principles PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A project is in its final management stage. The project board is reviewing the business case and finds that the remaining benefits are less than the remaining costs. However, the project is close to completion. What should the project board do?

   • AStop the project because the business case is no longer justified.
   • BEscalate the decision to the program management because the project is nearly complete.
   • CContinue the project because it is almost finished and the costs are sunk.
   • DReduce the project's scope to make the business case viable.
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2. 12application · medium

   A software project is planned to run for 18 months. The project manager proposes to manage it in three management stages of six months each. What is the primary benefit of this approach?

   • AIt reduces the need for detailed planning at the start of the project.
   • BIt allows the project manager to make all decisions without board involvement.
   • CIt ensures that all products are delivered at the end of each stage.
   • DIt provides control points where the project board can review progress and decide whether to continue.
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4. 13application · medium

   During a stage, the project manager discovers that the cost will exceed the stage tolerance by 15%. The project tolerance is 10%. What should the project manager do?

   • AContinue the stage and report the overrun at the next stage boundary.
   • BEscalate the deviation to the project board because it exceeds the stage tolerance.
   • CUse the project tolerance to absorb the overrun without escalation.
   • DAsk the team to work overtime to bring costs back within tolerance.
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5. 14application · medium

   A project to implement a new HR system has been running for six months. The project board is reviewing the business case at a stage boundary. They find that the benefits are now lower than originally estimated due to changes in regulations. What should the project board do?

   • AAsk the project manager to adjust the benefits forecast to match the original plan.
   • BContinue the project because the original business case was approved.
   • CRe-evaluate the business case and decide whether the project is still worthwhile.
   • DEscalate the issue to the program management because the benefits have changed.
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6. 15foundation · easy

   What is the purpose of setting tolerances in PRINCE2?

   • ATo define the acceptable deviation for project objectives before escalation is required.
   • BTo define the quality standards for the project's products.
   • CTo give the project manager unlimited authority to change the project scope.
   • DTo ensure that the project is completed exactly as planned with no deviations.
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