PRINCE2-Foundation Exam Practice Test Instant Access

Question 1

Identify the missing word in the following sentence.

[ ? ] is the measurable decline resulting from a negative outcome.

AAn exception

BA dis-benefit

CAn off-specification

DA risk

Answer : B

In PRINCE2 terminology, a dis-benefit is defined as a measurable decline resulting from a negative outcome. Dis-benefits are considered alongside benefits to assess the overall value and impact of the project. They represent outcomes that are perceived as negative by one or more stakeholders. Reference: PRINCE2 Foundation Manual

Question 2

Which is the base product against which the Project Board can assess progress, issues and ongoing viability questions?

AProject Brief

BProject Initiation Documentation

CProject mandate

DBenefits Review Plan

Answer : B

The Project Initiation Documentation (PID) is the base product against which the Project Board can assess progress, issues, and ongoing viability questions in PRINCE2. The PID includes key documents such as the Business Case, the Project Plan, and risk management information, providing a comprehensive reference for governance decisions throughout the project. Reference: PRINCE2 Foundation manual, PRINCE2 official resources

Question 3

Which approach must be followed as a minimum requirement for applying the plans theme?

AActivity-based planning

BProduct-based planning

CAgile

DRisk management

Answer : B

The minimum requirement for applying the Plans Theme in PRINCE2 is following the product-based planning approach. This approach involves creating a product breakdown structure, writing product descriptions, and defining product dependencies before developing the schedule and resource plans. It ensures that plans are focused on the project's deliverables and their quality requirements. Reference: PRINCE2 7 Foundation Handbook and official training materials.

Question 4

Which level of management sets the project level tolerances?

AProject board

BTeam manager

CCorporate, programme management or the customer

DProject manager

Answer : C

The level of management that sets the project level tolerances in PRINCE2 is corporate, programme management, or the customer. These project-level tolerances are defined to set the allowable limits of variation for the project's objectives, which the Project Manager must work within. This helps ensure that the project remains aligned with strategic goals and customer or corporate standards. Reference: PRINCE2 7 Foundation resources and materials.

Question 5

How should effective issue management be applied When changing management products?

ABy changing the issue management approach at the end of each stage to reflect lessons

BBy creating new versions of a management product when a change is approved

CBy Implementing a change budget to fund changes to the project product

DBy recording the required change to a management product as an off-specification

Answer : B

Effective issue management in PRINCE2 should involve creating new versions of management products whenever a change is approved. This practice ensures that all documentation reflects the most current understanding and agreements regarding the project's scope and requirements. It helps maintain the integrity and relevance of the project documentation throughout its lifecycle, facilitating effective governance and control. Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

Question 6

Identify the missing words in the following sentence. A risk budget is a sum of money included in the [ ? ] and set aside to fund specific management responses to a project's threats and opportunities.

Achange budget

Bproject budget

Cproject's cost tolerance

Dproject's risk tolerance

Answer : B

A risk budget is a specific amount of money set aside within the project budget to address potential threats and opportunities. This allocation is used to fund the specific management responses required to mitigate identified risks. Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

Question 7

Which theme provides all management levels within the project management team with mechanisms for monitoring and control?

AProgress

BChange

COrganization

DQuality

Answer : A

The Progress theme provides all management levels within the project management team with mechanisms for monitoring and control. This theme ensures that there are clear benchmarks for performance and mechanisms in place to assess progress throughout the project's life cycle. Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

PRINCE2 PRINCE 2 Foundation (7th Edition) PRINCE2-Foundation Exam Practice Test