Free PRINCE2 Foundation Practice Exam (2026)

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Question 1Practices⚑ Flag

Marlow Foods is installing new stock control software. Staff will then process orders faster, which is expected to cut lost sales by $200,000 a year. Which of these is an outcome?

AThe project's training material BThe stock control software CFaster order processing by staff DA $200,000 annual cut in lost sales

Correct answer: C. Faster order processing by staff
An outcome is the result of the change that comes from using the outputs, here faster processing. The software is an output, and the measurable reduction in lost sales is the benefit.

Question 2Processes⚑ Flag

The board of directors at Elmstead Group issues a project mandate asking for a new customer contact center. Which process does this mandate trigger?

AInitiating a project BStarting up a project CDirecting a project DControlling a stage

Correct answer: B. Starting up a project
The project mandate from the commissioning organization triggers starting up a project. Initiating a project only begins after the project board authorizes initiation.

Question 3Principles & People⚑ Flag

Ravenhill Water must upgrade its treatment plant to meet a new legal standard. The sponsoring director says a business case is pointless because the work is compulsory. What is the MOST appropriate response from a PRINCE2 perspective?

AThe business case can be skipped because legal compliance is its own justification BThe business case should be replaced with a signed regulatory notice CA business case is only needed if the plant upgrade will generate revenue DA business case is still needed to justify the option chosen and its cost

Correct answer: D. A business case is still needed to justify the option chosen and its cost
Ensure continued business justification applies to compulsory projects too. The business case shows why the selected option is the best way to meet the obligation and whether its costs are acceptable. Skipping it because the work is mandatory is a common misconception.

Question 4Practices⚑ Flag

A company's move to an open-plan office is expected to cut rent, but staff in the finance team say they will lose the privacy they need for confidential calls. In PRINCE2 terms, the loss of privacy is BEST described as what?

AA dis-benefit BA threat CAn off-specification DA project tolerance

Correct answer: A. A dis-benefit
A dis-benefit is a measurable result of the change that one or more stakeholders see as negative. It is certain to happen if the change goes ahead, so it is not a threat, which is an uncertain event.

Question 5Practices⚑ Flag

On a project at Ashgrove Council, who owns the business case and is accountable for making sure the project remains value for money?

AThe project manager BThe executive CProject support DThe senior user

Correct answer: B. The executive
The executive owns the business case and is ultimately accountable for the project on behalf of the business. The project manager prepares and updates it, which is why that option is tempting, but ownership stays with the executive.

Question 6Processes⚑ Flag

Which management product, produced in starting up a project, brings together the outline business case, the project product description and the proposed project management team?

AThe project brief BThe stage plan CThe end stage report DThe project initiation documentation

Correct answer: A. The project brief
The project brief is assembled during starting up a project and gives the board what it needs to decide whether to initiate. The project initiation documentation is created later, in initiating a project, and is far more detailed.

Question 7Practices⚑ Flag

Kestrel Airways expects most benefits of its new baggage tracking system to appear 6 to 18 months after the project closes. Which management product should describe how and when these benefits will be measured?

AThe project product description BThe lessons report CThe end project report DThe benefits management approach

Correct answer: D. The benefits management approach
The benefits management approach defines the actions and reviews needed to check that benefits are achieved, including reviews after project closure. The end project report reviews performance at closure but does not plan future benefit reviews.

Question 8Principles & People⚑ Flag

Before planning begins on a new loyalty app, the project manager at Corvex Retail asks other managers what went wrong on two earlier app launches. Which principle is the project manager MOST directly applying?

ALearn from experience BFocus on products CManage by stages DManage by exception

Correct answer: A. Learn from experience
Learn from experience asks the team to seek lessons from earlier work when a project starts, not only at the end. Focus on products is tempting because the project is about an app, but asking about past launches is about lessons.

Question 9Processes⚑ Flag

What is the MAIN purpose of starting up a project?

ATo set up the controls for each management stage BTo produce a detailed plan and budget for the whole project CTo confirm the project is viable and worth initiating DTo deliver the first set of specialist products to users

Correct answer: C. To confirm the project is viable and worth initiating
Starting up a project checks whether the project is viable and worthwhile, so time is not wasted initiating a poor idea. Detailed planning of the whole project happens in initiating a project, not here.

Question 10Practices⚑ Flag

Two directors at Oakridge Mining both want to be the executive on a new site project. What is the BEST guidance under PRINCE2?

AThere must be a single executive, so one director should take the role BThe project manager should act as executive to stay neutral CBoth should be appointed and decisions made by majority vote DBoth can share the executive role if they divide the stages between them

Correct answer: A. There must be a single executive, so one director should take the role
The executive role cannot be shared, because PRINCE2 needs one person who is ultimately accountable for the project. The other director could hold another board role, but splitting the executive role by stage is not allowed.

Question 11Practices⚑ Flag

Vantage Construction is building a new clinic for a health trust. Vantage's operations director will sit on the project board. Which role should the operations director MOST likely hold?

AProject assurance BSenior user CExecutive DSenior supplier

Correct answer: D. Senior supplier
The senior supplier represents those designing and building the products and commits supplier resources. The senior user represents those who will use the clinic, which is the health trust, not the builder.

Question 12Processes⚑ Flag

The project board at Weston Ports has reviewed the project brief and the initiation stage plan. What decision does the board now make in directing a project?

AAuthorize the project BAuthorize initiation CAuthorize project closure DAuthorize a work package

Correct answer: B. Authorize initiation
After starting up, the board reviews the project brief and the initiation stage plan and decides whether to authorize initiation. Authorizing the project comes later, when the board approves the project initiation documentation.

Question 13Principles & People⚑ Flag

Helmsford Hospital is forming a project board for a new patient booking system built by an outside software firm. Which arrangement BEST reflects the principle of defining roles, responsibilities and relationships?

AThe board is chaired by the software firm, which carries the delivery risk BThe board includes the IT director only, since the system is technical CThe board represents business, user and supplier interests DThe board is made up of the users who will operate the system daily

Correct answer: C. The board represents business, user and supplier interests
PRINCE2 expects the project management structure to represent three primary stakeholder interests: business, user and supplier. A board made only of users or only of technical people leaves out interests that are needed for balanced decisions.

Question 14Practices⚑ Flag

On a project at Glenmoor Insurance, the project manager offers to carry out project assurance as well, to save money. What is the BEST response?

AAccept, but only for the final management stage BDecline, as assurance must be independent of the project manager CDecline, because project assurance must always come from an external auditor DAccept, because the project manager knows the project best

Correct answer: B. Decline, as assurance must be independent of the project manager
Project assurance gives the board an independent view of how the project is going, so it must be independent of the project manager. It does not have to be an outside auditor; board members or people they appoint can carry it out.

Question 15Practices⚑ Flag

The board of a retail chain does not want to review every small change on a product catalog project. It agrees that requests below $5,000 can be approved by a nominated group. What is this group called?

AProject assurance BThe team manager CProject support DThe change authority

Correct answer: D. The change authority
The project board can delegate authority to approve requests for change and off-specifications to a change authority, within limits such as a change budget. Project assurance advises the board but does not hold delegated decision rights for changes.

Question 16Processes⚑ Flag

A director on the project board learns that the company will merge with a competitor next quarter, which may change the project's priorities. What should the director do?

AWait until the next end stage assessment before raising it at all BGive ad hoc direction by informing the project manager CAsk the team managers to stop all work at once DRecord it in the quality register for the next review

Correct answer: B. Give ad hoc direction by informing the project manager
Giving ad hoc direction lets board members pass on external events, such as a merger, to the project manager at any time. Waiting for the stage end could let the project waste effort on work that may no longer be needed.

Question 17Practices⚑ Flag

A large project at Northgate Rail needs help maintaining registers, controlling product versions and booking review meetings. Which role BEST covers these duties?

ASenior supplier BChange authority CProject support DProject assurance

Correct answer: C. Project support
Project support provides administrative services such as keeping registers, version control of products and organizing meetings. Project assurance checks that the project is being run properly, which is a different, independent duty.

Question 18Principles & People⚑ Flag

The board of Pinecrest Logistics wants to fund an 18-month warehouse automation project in full on day one. The project manager suggests approving funding one management stage at a time. What is the MAIN benefit of this suggestion?

AIt gives the board a decision point at each stage boundary BIt allows team managers to set their own stage tolerances CIt ensures every stage has the same length and budget DIt removes the need for a project plan covering the whole project

Correct answer: A. It gives the board a decision point at each stage boundary
Manage by stages gives the board control points at which it reviews the business case and plans before authorizing the next stage. A project plan is still needed to show the whole project, so stages do not replace it.

Question 19Processes⚑ Flag

A new board member at Coastal Freight asks over what period the board will be directing the project. Which answer is correct?

AFrom receipt of the project mandate until all benefits are realized BFrom authorizing the project until the last stage begins CFrom initiation until the first end stage report DFrom completion of starting up until the project is closed

Correct answer: D. From completion of starting up until the project is closed
Directing a project starts once starting up a project is complete and the board receives the request to initiate, and it runs until the project closes. Benefit reviews after closure are handled by the business layer, not the project board.

Question 20Practices⚑ Flag

A project manager wants a diagram showing every product the project must deliver, broken down from the final product into its parts. Which technique should be used?

AA product breakdown structure BA Gantt chart CA risk register DA product flow diagram

Correct answer: A. A product breakdown structure
A product breakdown structure is a hierarchy of all the products to be produced. A product flow diagram shows the order in which products are created and their dependencies, not the breakdown into parts.

Question 21Practices⚑ Flag

Midway through a stage, the project manager at Lakeshore Energy reports that costs are forecast to exceed stage tolerance. The board asks for a new plan to replace the current stage plan. What type of plan is this?

AA benefits plan BA team plan CAn exception plan DA project plan

Correct answer: C. An exception plan
An exception plan replaces the current stage plan or project plan when it is forecast to go beyond tolerance, and shows how the new situation will be handled. A team plan works at the work package level and is not used for this purpose.

Question 22Processes⚑ Flag

Why does PRINCE2 include initiating a project before the main delivery work begins?

ATo deliver and hand over the first set of products to operations BTo approve the business case at the end of the project CTo appoint the executive and the project manager DTo build a solid base before major spending is committed

Correct answer: D. To build a solid base before major spending is committed
Initiating a project establishes solid foundations so the organization understands the work, cost and risk before committing to major spending. Appointing the executive and project manager happens earlier, in starting up a project.

Question 23Principles & People⚑ Flag

The project board at Tidewell Insurance asks to hear about a project only through regular reports, unless a forecast shows a stage will go beyond its agreed limits. Which principle does this BEST illustrate?

AManage by stages BEnsure continued business justification CDefine roles, responsibilities and relationships DManage by exception

Correct answer: D. Manage by exception
Manage by exception sets tolerances for each level of management so that a level is involved only when limits are forecast to be exceeded. Manage by stages is about breaking the project into decision points, not about limits of delegated authority.

Question 24Practices⚑ Flag

On a software project, a team manager at an outside supplier wants to break a work package into detailed activities and assign tasks to developers. What is the BEST guidance?

ATeam plans are not allowed in PRINCE2, so use the stage plan only BThe team manager may create an optional team plan CThe project manager must write the team plan for the supplier DThe project board must approve every team plan before work starts

Correct answer: B. The team manager may create an optional team plan
Team plans are optional and are produced by team managers to plan how a work package will be done. The supplier may use its own format. The project manager authorizes the work package but does not have to write the team plan.

Question 25Practices⚑ Flag

Before scheduling, a planner wants to show that the training course cannot be produced until the user guide is approved. Which planning output BEST shows this?

AA stage plan budget BA lessons log CA product flow diagram DA product description

Correct answer: C. A product flow diagram
A product flow diagram shows the sequence in which products are developed and the dependencies between them. A product description defines one product's purpose and quality criteria, but not the order of production.

Question 26Processes⚑ Flag

At the end of initiation, the project manager at Granite Health combines the business case, project plan, management approaches and project controls into one set of documents for board approval. What is this called?

AThe end project report BThe project mandate CThe project brief DThe project initiation documentation

Correct answer: D. The project initiation documentation
The project initiation documentation pulls together the information needed to direct and manage the project and is the basis for authorizing it. The project brief is the shorter document from starting up, used to decide whether to initiate.

Question 27Practices⚑ Flag

The customer for a new hotel booking site says the site 'must feel fast and easy'. What should the project manager do with this statement?

APass it to the supplier as the final product specification BRecord it as an acceptance criterion exactly as stated CTreat it as an expectation and agree measurable criteria DIgnore it until the testing stage, when users can give feedback

Correct answer: C. Treat it as an expectation and agree measurable criteria
Customer quality expectations are often general statements, so they must be turned into measurable acceptance criteria in the project product description. Recording the vague statement as a criterion would make acceptance impossible to prove.

Question 28Principles & People⚑ Flag

A design agency starts building a client's website before anyone has agreed what pages are needed or how they will be judged acceptable. Which principle is being ignored?

ALearn from experience BFocus on products CManage by exception DTailor to suit the project

Correct answer: B. Focus on products
Focus on products means agreeing what the products are, what they must contain and their quality criteria before work starts. Tailoring is about adapting the method, and it does not address building without a defined product.

Question 29Processes⚑ Flag

The project manager at Hollis Tech wants a supplier team to start building a reporting module. What must happen in controlling a stage before the team begins?

AThe executive updates the business case BThe project board approves the team plan CThe project manager authorizes a work package DThe senior user signs off the product

Correct answer: C. The project manager authorizes a work package
Work is assigned to teams through work packages that the project manager authorizes in controlling a stage. The board does not approve team plans, as that would go against manage by exception.

Question 30Practices⚑ Flag

An auditor at Fairview Pharma asks for evidence that the planned peer reviews and tests on project documents actually took place. Which register should the project manager provide?

AThe quality register BThe lessons log CThe issue register DThe risk register

Correct answer: A. The quality register
The quality register records the quality activities that were planned and the results of those carried out. The issue register tracks formally managed issues, not quality checks.

Question 31Practices⚑ Flag

Which statement BEST describes the difference between quality assurance and project assurance?

AQuality assurance is carried out by the project manager, and project assurance by the team BQuality assurance is independent of the project, project assurance serves the board CThey are the same activity with two names used in different industries DProject assurance checks the specialist products, while quality assurance checks the business case

Correct answer: B. Quality assurance is independent of the project, project assurance serves the board
Quality assurance is provided by the wider organization, independent of the project management team, to check that the project meets standards. Project assurance is carried out on behalf of the project board. Both are independent of the project manager, but they serve different parties.

Question 32Processes⚑ Flag

A testing task is running two days late, but the stage is still forecast to finish within its time tolerance. What should the project manager do?

ATake corrective action within the stage BRequest an exception plan from the board CClose the work package early DRaise an exception report to the board

Correct answer: A. Take corrective action within the stage
If a deviation stays within tolerance, the project manager can take corrective action without involving the board. An exception report is only required when tolerances are forecast to be exceeded.

Question 33Principles & People⚑ Flag

A small charity runs a three-month event project and wants to use PRINCE2 in a light way. Which approach to tailoring is acceptable?

AUse the practices in full but leave out the principles entirely BDrop the manage by stages principle because the project is short CKeep all principles but simplify reports and combine roles DApply only the principles that the project board considers useful

Correct answer: C. Keep all principles but simplify reports and combine roles
Tailoring adapts the method to the project's size and context, such as merging roles or using simpler reports. All seven principles must still be applied, otherwise it is not a PRINCE2 project. Dropping a principle because a project is short is a common mistake.

Question 34Practices⚑ Flag

During initiation at Brookline Utilities, the project manager documents which standards, quality methods and responsibilities will be used to achieve the required quality. Which product is being created?

AThe project product description BThe communication management approach CThe quality register DThe quality management approach

Correct answer: D. The quality management approach
The quality management approach describes how quality will be managed on the project, including standards, methods and roles. The quality register is a record of quality activities, not the approach that defines them.

Question 35Practices⚑ Flag

A council project team learns that a government grant might become available, which could cut the project's costs by 15%. How should this BEST be recorded?

AAs a benefit in the business case BAs a request for change CAs an issue, because it affects the budget DAs an opportunity in the risk register

Correct answer: D. As an opportunity in the risk register
A risk is an uncertain event that would affect objectives, and an opportunity is a risk with a positive effect. The grant is not yet a benefit because it is uncertain and does not come from using the project's outputs.

Question 36Processes⚑ Flag

During a stage, the project manager regularly checks progress against the stage plan, reviews the registers and decides whether any action is needed. Which activity of controlling a stage is this?

AReview the stage status BReceive completed work packages CPlan the next stage DAuthorize initiation

Correct answer: A. Review the stage status
Reviewing the stage status means comparing actual progress with the stage plan and deciding on next steps. Planning the next stage happens in managing a stage boundary, not in controlling a stage.

Question 37Practices⚑ Flag

On a data center move, the IT manager is named as responsible for managing the risk of a power failure. A facilities engineer is assigned to install backup generators as the response. What role does the engineer hold?

ARisk owner BRisk actionee CProject assurance DChange authority

Correct answer: B. Risk actionee
A risk actionee carries out a specific response action, while the risk owner manages and monitors the risk as a whole. Here the IT manager is the owner and the engineer is the actionee.

Question 38Principles & People⚑ Flag

Brightwater Bank's payments team processes thousands of transfers every day. The bank now plans to replace its payments platform by next October. Which feature BEST shows that the replacement is a project rather than business as usual?

AIt uses an existing budget line for day-to-day operations BIt will be measured through regular operational performance reports CIt involves staff who already work in the payments team DIt is temporary and introduces change to the organization

Correct answer: D. It is temporary and introduces change to the organization
Projects are temporary, bring about change and carry more uncertainty than routine work. Using existing staff does not make work a project, since business as usual also uses those staff.

Question 39Processes⚑ Flag

A team manager receives a work package from the project manager. Before starting, the team manager checks the tolerances and constraints and agrees them with the project manager. Which activity is this?

AAuthorize a work package BExecute a work package CAccept a work package DDeliver a work package

Correct answer: C. Accept a work package
Accepting a work package is where the team manager agrees what is to be delivered and the constraints and tolerances that apply. Authorizing a work package is done by the project manager in controlling a stage.

Question 40Practices⚑ Flag

Silverline Bank is very cautious and has ruled that any project risk with an expected cost above $100,000 must be reported to the board at once. In PRINCE2 terms, the $100,000 limit is BEST described as what?

ARisk appetite BRisk tolerance CRisk budget DRisk proximity

Correct answer: B. Risk tolerance
Risk tolerance is the threshold of risk exposure that, when exceeded, triggers escalation. Risk appetite is the organization's general attitude to risk, such as being cautious, which shapes the tolerance but is not the limit itself.

Question 41Practices⚑ Flag

A project has three threats. Threat A has a 10% probability and a $40,000 impact. Threat B has a 50% probability and a $12,000 impact. Threat C has a 25% probability and a $20,000 impact. What is the total expected value of these threats?

A$24,000 B$10,000 C$15,000 D$72,000

Correct answer: C. $15,000
Expected value is probability times impact for each risk. A is 0.10 times 40,000 = 4,000, B is 0.50 times 12,000 = 6,000 and C is 0.25 times 20,000 = 5,000, for a total of 15,000. Adding the impacts alone gives 72,000, which ignores probability.

Question 42Processes⚑ Flag

A team at Danforth Engineering has finished and quality checked its products. What should the team manager do in the deliver a work package activity?

AGet the products approved and notify the project manager BUpdate the business case with the actual costs of the work CClose the stage and write the end stage report DHand the finished products straight to the operations staff

Correct answer: A. Get the products approved and notify the project manager
In delivering a work package, the team manager confirms the products are approved as set out in the work package and tells the project manager the work is complete. Handover to operations happens later, normally at project closure or as planned.

Question 43Principles & People⚑ Flag

A city council wants its new library build to stay within an agreed limit on carbon emissions. Under PRINCE2 7, how should this limit BEST be treated?

AAs an external constraint that the project cannot monitor BAs a performance target with its own tolerances CAs an assumption recorded in the lessons log for later projects DAs a matter for the operations team after the library opens

Correct answer: B. As a performance target with its own tolerances
PRINCE2 7 treats sustainability as a performance target alongside time, cost, quality, scope, benefits and risk. Targets and tolerances can be set and monitored for it just like the others. Leaving it to operations would ignore the impact of the project's own work.

Question 44Practices⚑ Flag

A festival organizer buys insurance to cover the cost of cancellation if severe weather strikes. Which threat response is this?

ATransfer BAccept CAvoid DReduce

Correct answer: A. Transfer
Transfer moves the financial impact of a threat to a third party, often through insurance. The chance of bad weather is not lowered, which is why reduce is not the right answer.

Question 45Practices⚑ Flag

A month after the design of a mobile banking app was approved and baselined, the senior user asks for a new budgeting feature to be added. How should this be handled?

AAs a problem or concern BAs a new risk CAs a request for change DAs an off-specification

Correct answer: C. As a request for change
A request for change is a proposal to change a baselined product. An off-specification is about something that fails, or will fail, to meet its agreed specification, which is not the case here.

Question 46Processes⚑ Flag

The current stage of a factory upgrade is nearly complete. Which process should the project manager use to prepare for the board's decision on the next stage?

AControlling a stage BManaging a stage boundary CDirecting a project DInitiating a project

Correct answer: B. Managing a stage boundary
Managing a stage boundary is used as a stage nears its end to plan the next stage and report on the current one. Directing a project is where the board makes the decision, not where the project manager prepares for it.

Question 47Practices⚑ Flag

Testing shows that a batch of components from a supplier does not meet the strength requirement in its product description. What type of issue is this?

AA concern about resources BA risk with low proximity CA request for change DAn off-specification

Correct answer: D. An off-specification
An off-specification is something the project should provide that does not, or is forecast not to, meet its specification. A request for change would be a proposal to alter the agreed specification itself.

Question 48Principles & People⚑ Flag

A project manager at Ardent Telecom must deliver a network upgrade using engineers employed by two partner companies. She has no line authority over them. What is the BEST way for her to lead these engineers?

ABuild shared goals and trust and influence through relationships BEscalate every disagreement to the project board for a ruling CIssue direct instructions and report anyone who does not follow them DAsk the partner companies to transfer the engineers to her department

Correct answer: A. Build shared goals and trust and influence through relationships
PRINCE2 7 stresses leadership across organizational boundaries, where the project manager relies on influence, collaboration and trust rather than formal authority. Escalating every disagreement would overload the board and undermine manage by exception.

Question 49Processes⚑ Flag

At a stage boundary at Penrose Chemicals, the project manager revises the plan for the whole project using actual results from the current stage and new forecasts. Which product is being updated?

AThe quality register BThe project plan CThe team plan DThe work package

Correct answer: B. The project plan
In managing a stage boundary, the project plan is updated with actuals from the stage just finished and revised forecasts for the remaining work. Team plans and work packages cover only part of a stage, so they do not show the whole project.

Question 50Practices⚑ Flag

The board of a museum project wants to approve small changes quickly without going back to senior management for more money each time. What should be set aside in the budget for this?

AA cost tolerance BA contingency fee CA risk budget DA change budget

Correct answer: D. A change budget
A change budget is money allocated to the change authority or board to pay for approved requests for change. A risk budget funds responses to risks, not changes requested to agreed products.

Question 51Practices⚑ Flag

A team member reports that the test environment has been given to another project for the next two weeks. What should the project manager do FIRST under the issue management procedure?

AAsk the project board to approve a change immediately BRaise an exception report to senior management CUpdate the stage plan to show the delay DCapture it and decide how it should be handled

Correct answer: D. Capture it and decide how it should be handled
The issue procedure starts by capturing the issue and deciding whether it can be handled informally or needs formal control. Escalation is only needed if the issue would push the stage beyond tolerance, which has not yet been assessed.

Question 52Processes⚑ Flag

Halfway through a project, the board at Ironbridge Media tells the project manager that the project must stop because the company has changed strategy. What should the project manager do?

APrepare premature closure and secure useful products BStart a new project to finish the remaining work CAsk the team managers to hand all products to users DContinue until the current stage ends, then stop

Correct answer: A. Prepare premature closure and secure useful products
When the board directs an early close, the project manager prepares premature closure to record what has been done, secure products that may be useful and stop work in an orderly way. Continuing to the stage end wastes resources once closure is directed.

Question 53Principles & People⚑ Flag

Fernhill College's project delivered a new student records system on time, but staff keep using old spreadsheets and no benefits appear. What should the project have done to reduce this risk?

ASet tighter cost tolerances for the final management stage BAdded more features to the system before handing it over to staff CInvolved users early and planned how they would adopt the change DAsked the supplier for a longer warranty on the new records system

Correct answer: C. Involved users early and planned how they would adopt the change
Leading successful change means recognizing that outputs only create outcomes and benefits when people use them. Involving users early and planning for adoption makes that more likely. Adding features does not address why staff are not using the system.

Question 54Practices⚑ Flag

The board of Redwood Hotels wants a regular update every two weeks on a refurbishment stage, covering progress, issues and forecasts. Which report meets this need?

AHighlight report BEnd stage report CException report DCheckpoint report

Correct answer: A. Highlight report
The highlight report is a time-driven report from the project manager to the board at a frequency set for the stage. Checkpoint reports also run on a schedule, but they go from team managers to the project manager.

Question 55Practices⚑ Flag

The project board at Sterling Motors forecasts that the whole project will overrun the total budget limit set by head office when it commissioned the project. What should the board do?

AClose the project at once without consulting anyone BRefer the situation to the business layer for a decision CApprove the extra spending itself and inform head office later DInstruct the project manager to cut quality to stay on budget

Correct answer: B. Refer the situation to the business layer for a decision
Project tolerances are set by the business layer, so only it can decide what happens when they are forecast to be exceeded. The board's own authority covers stage-level limits, so approving the extra spending itself would go beyond its delegated authority.

Question 56Processes⚑ Flag

At project closure, Ashby Software moves its new HR system into live use and agrees how it will be supported and maintained. Which closing activity is this?

AEvaluate the project BHand over products CRecommend project closure DPrepare planned closure

Correct answer: B. Hand over products
Handing over products transfers them into operational use and makes sure support and maintenance arrangements are in place. Evaluating the project looks back at performance against the plan, rather than moving products into live use.

Question 57Practices⚑ Flag

Halfway through stage 3, the project manager at Corbin Foods forecasts that the stage will finish five weeks late, beyond its two-week time tolerance. What should the project manager do?

AAsk the team managers to send checkpoint reports more often BTake corrective action and report it in the next highlight report CSend an exception report to the project board DExtend the stage end date and update the stage plan

Correct answer: C. Send an exception report to the project board
When a stage is forecast to exceed its tolerances, the project manager must escalate to the board with an exception report. Corrective action alone is only for deviations that stay within tolerance, so it is not enough here.

Question 58Principles & People⚑ Flag

Which of the following is one of the five integrated elements of PRINCE2 7?

AProject board BProject context CHighlight report DBusiness case

Correct answer: B. Project context
The five integrated elements are principles, people, practices, processes and project context. Business case is tempting, but it is one of the seven practices, not an element in its own right.

Question 59Processes⚑ Flag

At the end of a project, the project manager compares performance against the original targets in the project initiation documentation and reports on benefits achieved so far. Which product records this?

AThe highlight report BThe checkpoint report CThe end stage report DThe end project report

Correct answer: D. The end project report
The end project report is produced when evaluating the project and reviews how it performed against the targets set at initiation. The end stage report covers only one stage, not the whole project.

Question 60Practices⚑ Flag

A stage has a planned cost of $200,000 with a cost tolerance of plus 10% and minus 5%. Within which range can the project manager manage costs without escalating?

A$190,000 to $220,000 B$180,000 to $210,000 C$195,000 to $210,000 D$200,000 to $220,000

Correct answer: A. $190,000 to $220,000
Plus 10% of 200,000 is 20,000, giving an upper limit of 220,000. Minus 5% is 10,000, giving a lower limit of 190,000. Swapping the percentages gives 180,000 to 210,000, which is a common error.