PRINCE2 7 Foundation Practice Exam — All Questions

How many principles does PRINCE2 7 define, and what is their defining characteristic?

• a.Five principles that may be adopted selectively depending on project size
• b.Seven principles that apply only to large, high-risk projects
• c.Seven principles that must all be applied for a project to be genuinely following PRINCE2✓
• d.Nine principles that replace the need for a business case

PRINCE2 7 has seven principles, and they are universal: unless all seven are applied, the project is not being managed with PRINCE2. They are not optional or scaled by project size.

Which PRINCE2 principle requires that there be a justifiable reason to start the project and that this justification remains valid throughout its life?

• a.Focus on products
• b.Continued business justification✓
• c.Manage by stages
• d.Learn from experience

Continued business justification means a project must have a documented, verified reason to proceed, and that reason must be checked at each key point. If justification disappears, the project should be stopped.

Under the 'manage by exception' principle, what should a manager do while a plan is forecast to stay within its agreed tolerances?

• a.Continue without escalating, as the delegated level of management has authority to proceed✓
• b.Escalate to the next level of management for approval before any further work
• c.Halt the work until the Project Board reviews progress
• d.Reduce all tolerances to zero to keep tight control

Manage by exception sets tolerances for each objective and delegates day-to-day authority. As long as work is forecast to stay within tolerance, the lower level proceeds; only a forecast breach is escalated as an exception.

A project is divided into distinct sections, each ending with a Project Board decision on whether to continue. Which principle does this reflect?

• a.Tailor to suit the project
• b.Defined roles, responsibilities and relationships
• c.Focus on products
• d.Manage by stages✓

Manage by stages breaks the project into management stages separated by decision points, giving the Project Board control to authorise the next stage only when justification and plans remain sound.

When should lessons be sought and acted upon under the 'learn from experience' principle?

• a.Only at project closure, when an end project report is written
• b.Throughout the project: lessons are sought at the start, recorded during, and passed on at the end✓
• c.Only when a serious problem or exception occurs
• d.Only during the initiation stage, before the plans are baselined

Learn from experience is continuous. Teams look for relevant lessons when starting, capture new lessons as the project runs, and pass lessons on when it closes so future projects benefit.

In PRINCE2 7, the seven 'practices' were known by which term in earlier editions?

• a.Processes
• b.Principles
• c.Themes✓
• d.Management products

PRINCE2 7 (2023) renamed the seven 'themes' to 'practices'. They are aspects of project management that must be addressed continually: business case, organizing, plans, quality, risk, issues and progress.

Which PRINCE2 practice is concerned with whether the project remains desirable, viable and achievable?

• a.Business case✓
• b.Progress
• c.Quality
• d.Organizing

The business case practice develops and maintains the justification, testing that the project is desirable (benefits vs. cost/risk), viable (deliverable) and achievable (benefits realisable) across its life.

Which practice provides the approach for identifying, assessing and controlling uncertainty that could affect the project's objectives?

• a.Issues
• b.Progress
• c.Quality
• d.Risk✓

The risk practice manages uncertainty, both threats and opportunities. It is supported by a risk management approach and a risk register that records identified risks and their responses.

The theme formerly called 'Change' is now covered by which PRINCE2 7 practice?

• a.Plans
• b.Issues✓
• c.Quality
• d.Business case

In PRINCE2 7 the 'Issues' practice handles requests for change, off-specifications and problems/concerns, controlled through issue and change control procedures rather than a separate 'Change' theme.

In addition to time, cost, quality, scope, benefit and risk, PRINCE2 7 recognises which further performance target to be managed?

• a.Stakeholder satisfaction
• b.Return on investment
• c.Sustainability✓
• d.Team morale

PRINCE2 7 adds sustainability as a seventh performance target alongside time, cost, quality, scope, benefit and risk, reflecting environmental and broader responsibility considerations in projects.

Which PRINCE2 process is triggered by a project mandate and answers the question 'do we have a worthwhile and viable project?'

• a.Starting up a project✓
• b.Initiating a project
• c.Directing a project
• d.Controlling a stage

Starting up a project is a pre-project process triggered by the mandate. It produces a project brief and an outline business case so the Project Board can decide whether to authorise initiation.

Which process is owned by the Project Board and provides overall direction and key authorisation decisions?

• a.Managing a stage boundary
• b.Controlling a stage
• c.Initiating a project
• d.Directing a project✓

Directing a project is the Project Board's process. Through it the board authorises initiation, the project, each stage, and closure, and gives ad hoc direction, without being involved in day-to-day management.

Which process assembles the Project Initiation Documentation (PID) that establishes how the project will be managed?

• a.Starting up a project
• b.Initiating a project✓
• c.Closing a project
• d.Managing product delivery

Initiating a project builds the PID, the baseline defining objectives, scope, controls and the management approaches. It sets the firm foundation the Project Board approves before committing significant resources.

Which process is used by a Team Manager to accept, execute and deliver the work packages that create the project's products?

• a.Controlling a stage
• b.Managing a stage boundary
• c.Managing product delivery✓
• d.Directing a project

Managing product delivery is the interface where a Team Manager agrees a work package, oversees its execution, and delivers completed products back to the Project Manager for review and approval.

Near the end of a management stage, which process reports stage performance and produces the plan for the next stage?

• a.Managing a stage boundary✓
• b.Controlling a stage
• c.Closing a project
• d.Starting up a project

Managing a stage boundary provides the Project Board with an end stage report and the next stage plan, updating the business case and risks so the board can decide whether to authorise the next stage.

PRINCE2 groups management products into which three types?

• a.Mandates, briefs and charters
• b.Baselines, records and reports✓
• c.Plans, risks and issues
• d.Inputs, processes and outputs

Management products are of three kinds: baselines (defining products such as the PID and Business Case), records (dynamic logs such as the risk and issue registers), and reports (communicating status, such as the highlight report).

During a stage, which report does the Project Manager use to keep the Project Board informed of progress at an agreed frequency?

• a.Checkpoint report
• b.End stage report
• c.Exception report
• d.Highlight report✓

The highlight report is sent by the Project Manager to the Project Board at a frequency they agree, summarising stage progress. A checkpoint report, by contrast, flows from a Team Manager to the Project Manager.

What does the principle 'tailor to suit the project' require a team to consider?

• a.Removing any principles that seem inconvenient for the project
• b.Applying the method identically on every project for consistency
• c.Adapting the method to the project's context, such as its scale, complexity and risk✓
• d.Delegating all tailoring decisions to the supplier organisation

Tailoring adapts PRINCE2 to the environment, size, complexity, importance, team capability and risk of the project, while still applying all seven principles. It is not an excuse to drop principles.

Who holds ultimate accountability for the project's success and owns the business case?

• a.The Executive✓
• b.The Project Manager
• c.The Senior User
• d.The Team Manager

The Executive is ultimately accountable for the project, supported by the wider Project Board, and owns the business case to ensure the project stays value-for-money and justified throughout.

Which three roles make up the Project Board?

• a.Project Manager, Team Manager and Project Support
• b.Executive, Senior User and Senior Supplier✓
• c.Executive, Project Manager and Project Assurance
• d.Senior User, Change Authority and Team Manager

The Project Board comprises the Executive (business interests), the Senior User (user interests and benefits) and the Senior Supplier (supplier/technical interests), together representing the three primary stakeholder interests.

Which Project Board member specifies the users' needs and is accountable for ensuring the expected benefits are realised?

• a.The Executive
• b.The Senior Supplier
• c.The Senior User✓
• d.Project Assurance

The Senior User represents those who will use the project's products, specifies their requirements, and is accountable for demonstrating that the intended benefits are actually achieved.

What is the primary responsibility of the Project Manager in PRINCE2?

• a.Authorising each management stage on behalf of the organisation
• b.Owning the business case and securing project funding
• c.Physically building the specialist products themselves
• d.Running the project day to day, on behalf of the Project Board, within agreed tolerances✓

The Project Manager manages the project on a day-to-day basis for the Project Board, planning and controlling the work to deliver products within the tolerances the board has set, escalating exceptions when needed.