Free Practice Questions for PRINCE2 Prince2-Foundation Exam

The 'learn from experience' principle in PRINCE2® encourages continuous learning and adaptation within the project team. By applying this principle, teams are able to capture and act upon lessons learned throughout the project, thereby identifying and implementing improvements in real-time, which can enhance project outcomes.References: = PRINCE2® 7 Foundation handbook and online resources

PRINCE2® mandates that the roles of the project board be used as defined, including the Executive, Senior User, and Senior Supplier. However, it also allows flexibility to define additional roles as required by the organization or project context, ensuring adaptability and compliance with the method while accommodating specific project needs.References: = PRINCE2® 7 Foundation handbook and online resources

A risk budget should be used to implement contingency plans (2) and actions to avoid a risk from occurring (3). This budget is set aside to fund specific actions that are part of the project’s risk management strategy, enabling proactive and reactive responses to identified risks, ensuring the project remains on track despite uncertainties.References: = PRINCE2® 7 Foundation handbook and online resources

The goal of the 'implement' step within the recommended risk management procedure in PRINCE2® is to prepare specific management responses to the identified risks. This involves developing strategies to enhance opportunities and reduce threats to the project's objectives, ensuring that appropriate responses are ready for implementation.References: = PRINCE2® 7 Foundation handbook and online resources

The 'Develop' step in the 'Business Case Management' technique within PRINCE2® is where the rationale for the project is initially formulated. This includes evaluating whether current operations should continue as they are or if a change through a project could potentially enhance efficiency or effectiveness. This is the stage where strategic decisions about starting a project are made based on business justifications.References: = PRINCE2® 7 Foundation Training Manual and official PRINCE2® website documentation

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The Communication Management Approach in PRINCE2® defines how information should be sent to interested parties and how often this information should be communicated. It includes details on the methods and frequency of communication necessary to engage stakeholders effectively and ensure that everyone who needs to be informed about the project has the right information at the right time.References: PRINCE2® Foundation Manual

One advantage of applying the 'manage by stages' principle in PRINCE2® is that the project is broken down into manageable stages, providing decision points (stage boundaries). This helps in maintaining control by providing opportunities to review and, if necessary, adjust the project’s direction and ensure it does not run on in an uncontrolled manner.References: PRINCE2® Foundation Manual

The purpose of the 'controlling a stage' process in PRINCE2® is to ensure that the stage stays on course and reacts to unexpected events. Part of this process involves producing regular highlight reports for the project board, which summarizes the stage’s progress, highlights any issues or risks, and keeps the board informed about ongoing activities.References: PRINCE2® Foundation Manual

The project board reviews the Project Initiation Documentation (PID) during an end stage assessment primarily to review summarized progress to date and to decide the future course of action for the project. This review helps determine whether the project is still viable and if the project should continue into its next stage based on performance against the plan and the business case.References: PRINCE2® Foundation Manual

The Exception Report must be used to inform the project board of a predicted deviation from the agreed stage limits. This report is triggered when stage tolerances are forecasted to be exceeded, requiring the project board's decision on how to proceed with the project.References: = PRINCE2® 7 Foundation handbook and online resourcesQUESTION NO: 321

Which control must be used as a minimum requirement for applying the 'progress' theme?

A. A project plan

B. Tolerances

C. An Issue register

D. Highlight reports

Answer: B

Tolerances are a minimum requirement for applying the 'progress' theme in PRINCE2®. They define the allowable deviations in time, cost, quality, scope, risk, and benefit objectives that do not require escalation to higher management levels. This control mechanism ensures that the project operates within agreed boundaries without frequent upper management intervention.References: = PRINCE2® 7 Foundation handbook and online resources