Prince2 Foundation Exam

Volume: 486 Questions

Question No: 1
Identify the missing word(s) from the following sentence. A project is a temporary organization that is
created for the purpose of delivering one or more business products according to an agreed?

A. Senior User

B. Business Case

C. Change

D. Cost

Answer: B

Question No: 2
According to PRINCE2, which of the following is a characteristic of a project compared to that of business
operations?

A. Incurs cost

B. Introduces business change

C. Delivers benefits

D. Creates products

Answer: B

Question No: 3
Which of the following is FALSE?

A. Manage risks is a PRINCE2 principle

B. Manage by exception is a PRINCE2 principle

C. Focus on products is a PRINCE2 principle

D. Tailor to suit the project environment is a PRINCE2 principle

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Answer: A

Question No: 4
According to PRINCE2, which of the following are the aspects of project performance to be managed?

A. Processes, themes, principles

B. Time, cost, quality, people

C. Time, cost, quality

D. Time, cost, quality, scope, benefits, risk

Answer: D

Question No: 5
What environment does PRINCE2 assume?

A. Third party

B. Customer/Supplier

C. Fixed-price contract

D. Management and Specialist

Answer: B

Question No: 6
A characteristic of a project is that they come with an element of uncertainty. Which of the following
PRINCE2 themes will help with the identification and management of such uncertainty?

A. Quality

B. Risk

C. Change

D. Organization

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Answer: B

Question No: 7
Which is a benefit of using PRINCE2?

A. Stakeholders are kept out of planning and decision making

B. Participants understand each other's roles and needs

C. Stakeholders are not involved in assuring the project work

D. All problems are escalated to all stakeholders

Answer: B

Question No: 8
Which PRINCE2 principle supports planning only to a level of detail that is manageable and foreseeable?

A. Continued business justification

B. Manage by exception

C. Focus on products

D. Manage by stages

Answer: D

Question No: 9
Which is NOT a PRINCE2 integrated element?

A. The principles

B. The techniques

C. The themes

D. Tailoring PRINCE2 to the project environment

Answer: B

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Question No: 10
Which is a characteristic of a project?

A. Are risk free

B. Have no uncertainty

C. Are managed as part of business as usual

D. Are cross-functional

Answer: D

Question No: 11
Which is one of the six aspects of project performance that needs to be managed?

A. Issues

B. People

C. Benefit

D. Tolerance

Answer: C

Question No: 12
Identify the missing words in the following sentence... A principle of PRINCE2 is that a project has defined
and agreed?

A. Roles and responsibilities

B. Specialist teams with appropriate technical skills

C. Management jobs with job descriptions

D. Senior managers at all levels of the project management team

Answer: A

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Question No: 13
Identify the missing words in the following sentence... A PRINCE2 project is and controlled on a
stage-by-stage basis?

A. Planned, monitored

B. Developed, reported

C. Designed, assigned

D. Planned, produced

Answer: A

Question No: 14
Identify the missing word in the following sentence... A PRINCE2 project has defined for each project
objective to establish limits of delegated authority?

A. Allowances

B. Tolerances

C. Roles

D. Deviations

Answer: B

Question No: 15
Identify the missing word in the following sentence... A PRINCE2 project focuses on the definition and
delivery of, in particular their quality requirements?

A. Benefits

B. Products

C. Activities

D. Outcomes

Answer: B

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Question No: 16
Which of the following is a TRUE principle of a PRINCE2 project?

A. Please refer to section 2.3 in the PRINCE2 Manual

B. Work Package level activities are identified during Starting up a Project

C. A project has defined and agreed roles and responsibilities

D. Every project will need a different project management approach

Answer: C

Question No: 17
Identify the missing words in the following sentence... A Project is a that is created for the purpose of
delivering one or more business products according to an agreed Business Case?

A. Temporary organization

B. Skilled environment

C. One-off Endeavour

D. Unique team of stakeholders

Answer: A

Question No: 18
Which of the following statements is TRUE?

A. PRINCE2's focus is on engaging with the business stakeholders only

B. PRINCE2 does not seek to engage with any stakeholders outside of the project environment

C. PRINCE2 is based on a customer/supplier environment

D. PRINCE2 assumes the supplier will specify the desired result and probably pay for the project

Answer: B

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Question No: 19
Which of the following statements is FALSE? PRINCE2 provides projects with . . .

A. The explicit recognition of project responsibilities

B. A thorough but economical structure of reports

C. Regular progress meetings throughout the project

D. Plans designed to meet the needs of the different levels in the management team

Answer: C

Question No: 20
Which of the following does PRINCE2 recognize as being project characteristics?
1. Projects are the means by which we introduce business change
2. Projects have a defined start and end
3. No project is unique
4. Projects often cross the normal functional divisions within an organization

A. 1, 2, 3

B. 1, 2, 4

C. 1, 3, 4

D. 2, 3, 4

Answer: B

Question No: 21
The PRINCE2 principle 'continued business justification' states that a requirement for a pro ject is that...
There is justifiable reason to start the project and justification should remain valid throughout the life of the
project. Which one of the following does PRINCE2 also state for this principle?

A. The Business Case will include details of all project risks

B. A product must deliver tangible, financial benefits

C. Clear ownership of the Business Case is documented

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D. The justification is documented and approved

Answer: D

Question No: 22
Which of the following PRINCE2 elements are described as being the aspects of project management
that must be addressed continually and in parallel throughout the project?

A. The Principles

B. The Processes

C. The Themes

D. Tailoring PRINCE2 to the project environment

Answer: C

Question No: 23
Which of the following PRINCE2 elements are described as being the guiding obligations and good
practices which determine whether the project is being managed using PRINCE2?

A. The Principles

B. The Processes

C. The Themes

D. Tailoring PRINCE2 to the project environment

Answer: A

Question No: 24
Which of the following are the integrated elements which make up the structure of PRINCE2?

A. Principles, Themes, Processes, Tailoring to the project environment

B. Outputs, Outcomes, Benefits

C. Organization, Plans, Progress, Business Case, Risk, Quality, Change

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D. Time, Cost, Quality, Scope, Benefit, Risk

Answer: A

Question No: 25
Which of the following are benefits of using PRINCE2?
1. Provides a common vocabulary for all project participants, promoting effective communication
2. Promotes regular progress meetings for senior management
3. Plans are carefully designed to meet the needs of the different levels in the project organization,
improving communication and control
4. Defines a thorough but economic structure of reports

A. 1, 2, 3

B. 1, 2, 4

C. 1, 3, 4

D. 2, 3, 4

Answer: C

Question No: 26
The PRINCE2 principle 'focus on products' states that a successful project is which one of the following?

A. Output oriented

B. Activity oriented

C. Benefits oriented

D. Resource oriented

Answer: A

Question No: 27
Effective risk management is a pre-requisite to which of the following principles?

A. Continued business justification

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B. Manage by exception

C. Focus on products

D. Tailor to suit the project environment

Answer: A

Question No: 28
In respect of the project's organization structure, one of the seven principles of PRINCE2 is that every
project must have which one of the following?

A. Defined and agreed roles and responsibilities with an organization structure that engages the business,
user and supplier primary stakeholder interests

B. People allocated to clearly defined management jobs, assigned to them on a one-to-one basis

C. As many stakeholders as possible from the customer environment involved in key decision-making
throughout the project life cycle

D. Stakeholders who are responsible, accountable, consulted and informed throughout every stage of the
project

Answer: A

Question No: 29
Which of the following is NOT a PRINCE2 Principle?

A. Continued business justification

B. Project manage by process

C. Manage by stages

D. Tailor to suit the project environment

Answer: B

Question No: 30
Which of the following best defines an output?

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