Prince2 Practitioner Questions + Answers Part 3

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QUESTION 5
Which 2 statements should be recorded under the Timescale heading?
A. Benefitswillbelostiftheprojectisnotcompletedontime.
B. Arecruitmentcampaigntofilltheexistingstaffvacancieswillneedtotakeplaceinthenext12months. C. Additional 10% increase in orders in year two.
D. The prepared calendar pack must be delivered by the first week in December.
E. Theprintcompanyrequiresa2weeknotificationperiodofthecalendarpackdelivery.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:
QUESTION 6
Which 2 statements should be recorded under the Costs heading? A. TheMNOmarketingbudgetthisyearis£120k.



B. Theprojectwillbefundedfromthebusinessmarketingbudget
C. 10 further orders with an average profit of £2k will deliver a benefit of £20k in the first year. D. The new company logo is estimated to cost £4k.
E. Projectcostsareestimatedtobeatotalof£26.5k.
Correct Answer: BE Section: (none) Explanation
Explanation/Reference:
QUESTION 7
Which 2 statements correctly define a Business Case risk which should be recorded under the Major risks heading?
A. Operationalcostswillincreaseasaresultoftherecruitmentcampaign.
B. ThepreparedcalendarpackistobedeliveredtotheprintersbythefirstweekinDecember.
C. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.
D. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced. E. Staffmoralewillimproveasaresultofthepromotionalcalendar.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:



Business Case Theme Testlet 2
Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
● Do nothing.
● Re-engineer selected business functions.
● Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.
● A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:
● Use PRINCE2.
● Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating
models) and the service level agreement between MFH and the future service
provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract. Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run
trial period.
Initial estimates indicated that the project would cost £2.5m and take two years to complete. MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.



QUESTION 1
Which 2 statements should be recorded under the Reasons heading?
A. Thelackofup-to-datetechnologyinMFHmeansare-engineeringofexistingserviceswillnotnecessarilydelivertheperformanceimprovementsrequired. B. Providingre-engineeredservicesin-housewillremovetheneedtotransferstafftoaserviceprovider.
C. The Ministry of Food Hygiene (MFH) needs to deal with the increasing pressure to cut costs and better manage supplier's performance.
D. Relocating staff to the selected service provider's premises will mean that no property transfer is required.
E. Theinadequatecontrols,outdatedstandardsandoutdatedtechnologymustbeaddressed.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:
http://www.whatisprince2.net/prince2-th ... s-case.php
QUESTION 2
Which 2 statements should be recorded under the Business options heading?
A. There-engineeringofselectedbusinessfunctionswouldnotprovidetherequiredoutcome.
B. Thelackofup-to-datetechnologyinMFHmeansare-engineeringofexistingserviceswillnotnecessarilydelivertheperformanceimprovementsrequired. C. Use external consultants to provide guidance on the detailed design of the outsourced services.
D. Set up a PRINCE2 project to deliver the outsourced services.
E. Reviewalistofserviceproviderstodetermineashort-listofpossibleserviceproviders.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:
Reference: http://www.whatisprince2.net/prince2-th ... s-case.php QUESTION 3
Which 2 statements should be recorded under the Expected benefits heading?
A. The10-yearoutsourcingcontract,atcurrentprices,willbeworth£80m.
B. OutsourcingwouldallowMFHtotakeadvantageofthebestservicestheoutsourcingindustryhastooffer.



C. The total expected savings over 10 years, at current prices, is £20m.
D. The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.
E. TheconfirmedcostoftheOutsourcingprojectis£2.5m,butwithconsiderablesavingsover10years.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:
Reference: http://www.whatisprince2.net/prince2-th ... s-case.php QUESTION 4
Which 2 statements should be recorded under the Expected dis-benefits heading?
A. Aninvestmentof£2.5misrequired.
B. Staffmoralewillbenegativelyaffected.
C. The project will take two years to deliver.
D. Staff may lose the opportunity to work in Information Technology. E. MFHwilllosedirectcontrolovertheoutsourcedbusinessfunctions.
Correct Answer: CE Section: (none) Explanation
Explanation/Reference:
Reference: http://www.whatisprince2.net/prince2-th ... s-case.php QUESTION 5
Which 2 statements should be recorded under the Timescale heading?
A. Thecontractwiththeselectedserviceproviderwillbeagreedduringstage3.
B. Theexpectedbenefitswillbecalculatedover10yearsfromcompletionoftheproject.
C. If more MFH divisions are added to the scope of the services to be outsourced, the project timescale will be extended and the realization of benefits will be delayed.
D. The expected benefits should start to be realized as soon as the outsourced services become operational at the end of stage 4.
E. Thetransferofequipmentandstaffisestimatedtotakesixweeks.
Correct Answer: AB



Section: (none) Explanation
Explanation/Reference:
QUESTION 6
Which 2 statements should be recorded under the Major risks heading?
A. Duetomarketconditionsasuitableserviceprovidermaynotbefound,possiblyleadingtoprematureclosureoftheproject.
B. Owingtoemploymentcontractchangesstaffmayresistoutsourcing,whichwouldmakeitdifficulttotransferstafftotheselectedserviceprovider.
C. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of £80m, which would reduce the service provider's profit.
D. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.
E. Themanagementstagesrecommendedbytheconsultantsmaynotbeappropriate,resultinginconfusioninplanning.
Correct Answer: BD Section: (none) Explanation
Explanation/Reference:



Business Case Theme
Question Set 3
QUESTION 1
Which of the following statements describes an outcome?
A. Anyoftheprojectsspecialistproducts
B. Aresultofthechangederivedfromusingtheproject'sproducts C. A measurable improvement resulting from a change
D. Something perceived as advantages by a stakeholder
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 2
Which of the following should NOT be included in the business case?
A. Reasons
B. MajorRisks
C. Business options D. Business approach
Correct Answer: D Section: (none) Explanation
Explanation/Reference:
QUESTION 3
When considering the business options in the business case, which of these is NOT an option?
A. Donothing
B. Dothemaximum



C. Do the minimum D. Do something
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 4
Which of the following statements is TRUE with regard to expected benefits?
A. Theycannotbeassigned
B. Theydon'tneedtofollowcorporateobjectives
C. Theyshouldbemeasurable
D. Tolerances cannot be set against expected benefits
Correct Answer: C Section: (none) Explanation
Explanation/Reference:
QUESTION 5
Who is responsible for ensuring that the value-for-money solution is constantly reassessed?
A. Business Assurance
B. SeniorUser
C. Corporate or Programme Management D. Reject Support
Correct Answer: A Section: (none) Explanation
Explanation/Reference:



QUESTION 6
Which of the following activities is the Executive responsible for?
A. Ensurethedesiredoutcomeoftheprojectisspecified
B. Responsibleforthebenefitsreviewplan
C. Assess and update the Business Case at the end of each stage D. Responsible for the Benefits Review Plan post project
Correct Answer: B Section: (none) Explanation
Explanation/Reference:



Organization Theme Testlet 1
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.
QUESTION 1
Which 2 statements explain why the Marketing Director should be appointed as the Executive for this project?
A. Shehasbeenwiththecompanyforthreeyears.
B. Shepreviouslyhadasuccessfulcareerinpublicity.
C. She is able to represent the business needs of MNO Manufacturing.
D. She has authority to commit the marketing budget, from which the project will be funded. E. Sherequiresmoreexperienceworkingwiththeengineeringindustry.
Correct Answer: CD Section: (none) Explanation
Explanation/Reference:



QUESTION 2
Which 2 statements explain why the CEO should be appointed as the Executive for this project?
A. Hestartedthecompany25yearsago.
B. Heknowshisjobverywell.
C. He restricts his visits to the engineering area.
D. He has the authority to commit resources as required.
E. Hehasanoverallperspectiveofthebusiness'sstrategicrequirements.
Correct Answer: DE Section: (none) Explanation
Explanation/Reference:
QUESTION 3
Which 2 statements explain why the Marketing Director should be appointed as a Senior User for this project?
A. ShecanrepresenttheMarketingdepartment.
B. Shepreviouslyhadasuccessfulcareerinpublicity.
C. The Marketing department will help to deliver the benefits of this project.
D. The project will be funded from the business marketing budget.
E. AnumberoftheproductswillbeproducedbytheSalesdepartmentandtheMarketingdepartment.
Correct Answer: AC Section: (none) Explanation
Explanation/Reference:




QUESTION 4
Which 2 statements explain why the Sales Manager should be appointed as a Senior User for this project?
A. Hejoinedthecompanylastyearwithhugeenthusiasm.
B. HewouldliketomoveintotheMarketingdepartmentinthefutureandseesthisasanopportunitytoworkcloselywiththeMarketingDirector. C. The launch of a company calendar will impact the Sales department.
D. He reports directly to the Marketing Director.
E. Heisabletorepresentcurrentandprospectivecustomerinterests.
Correct Answer: CE Section: (none) Explanation
Explanation/Reference:
QUESTION 5
Which 2 statements explain why the Purchasing Manager should be appointed as a Senior Supplier for this project?
A. Heisresponsiblefortheorganization'sprocurementactivates.
B. Heisresponsiblefortheperformanceofsuppliercontracts.
C. He was an engineer and worked in that area before taking up his current position. D. He can influence the external supplier's Business Case.
E. HeisnotappropriatefortheroleofExecutiveorSeniorUser.
Correct Answer: AB Section: (none) Explanation
Explanation/Reference:
QUESTION 6
Which 2 statements explain why the Sales Manager should be appointed as User Assurance for this project?
A. Hejoinedthecompanylastyearwithhugeenthusiasmandiskeentoincreasesales. B. Hecanprovideanevaluationofthepotentialimpactthecalendarwillhaveonsales.



C. He is able to advise on suitable stakeholder engagement of current and prospective customers.
D. He would like to move into the Marketing department in the future and sees this as an opportunity to work closely with the Marketing Director. E. HecanresolveanyconflictinrequirementsbetweentheSalesdepartmentandtheMarketingdepartment.
Correct Answer: BC Section: (none) Explanation
Explanation/Reference:
QUESTION 7
Which 2 statements explain why Central Records should be appointed as Project Support for this project?
A. Theycontrolthereceipt,identification,versions,storageandissueofallprojectproductswithinthecompany'sprojects. B. Theyalreadyexistwithintheorganizationandhavebeenwiththecompanyformanyyears.
C. They will ensure compliance with all company policies and procedures.
D. They perform a quality assurance function across all projects.
E. Theyhaveknowledgeoftheorganizationalstandardsthatwillbeapplicabletotheproject.
Correct Answer: AE Section: (none) Explanation
Explanation/Reference:



Organization Theme Testlet 2
Scenario
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious


approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
QUESTION 1
Which 2 alternative actions apply to the proposed Executive for this project?
A. Retainbecauseheacceptsthatoutsourcingisthebestsolution.
B. Replacewith'DirectorofFinanceDivision'becauseshecanensureacost-consciousapproachtotheprojectthatgivesvalueformoney. C. Retain because he has the right level of authority to be able to control the strategic nature of the Outsourcing project.
D. Add 'Director of Finance' because she understands the operation of the Information Technology Division and the Facilities Division.
E. Replacewith'PayrollManager'becauseheisaveryexperiencedandefficientqualifiedaccountant.
Correct Answer: BC Section: (none) Explanation
Explanation/Reference:
QUESTION 2
Which 2 alternative actions apply to the proposed Senior User for this project?
A. Retainbecauseheprovidestheoutsourcingresourcesrequiredtosupporttheproject.
B. Replacewith'DirectorofResearchandDevelopment'becauseshedealswithboththeInformationTechnologyandtheFacilitiesDivisionsandcanmakesure her division's needs are specified.
C. Remove because he has no authority to commit user resources.
D. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
E. RetainbecausehewillbeprovidingsupporttotheInformationTechnologyandFacilitiesteamsduringtheproject.
Correct Answer: BC Section: (none) Explanation



Explanation/Reference:
QUESTION 3
Which 2 alternative actions apply to the proposed Senior Supplier for this project?
A. RetainbecausesheisresponsibleforthedesignofthefutureInformationTechnologyorganizationandworkingpractices.
B. Add'DirectorofFacilities'becauseheisresponsibleforthedesignofthefutureorganization,processes,systemsandoperationmodelsforFacilities. C. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
D. Remove because she only represents the Information Technology Division.
E. Replacewith'DirectorofFacilities'becausehesupportstheinitiativeandhasmanyideasabouthowtoimprovetheservice.
Correct Answer: AB Section: (none) Explanation
Explanation/Reference:
QUESTION 4
Which 2 alternative actions apply to the proposed business assurance for this project?
A. Removebecausehewillbeimpactedbytheprojectandthereforerepresentsauser.
B. Replacewith'ProjectManager'becausethisisasimpleprojectthatdoesnotrequireadditionalbusinessassurance.
C. AddOutcomeConsultants'becausetheycarriedoutthefeasibilitystudy.
D. Add 'Director of Finance Division' because she is responsible for checking that any supplier and contractor payments are authorized.
E. RetainbecauseheisfamiliarwiththeMinistryofFoodHygienebusinessstrategy,thebusinesslevelriskassessmentandtheBusinessCasestandards.
Correct Answer: DE Section: (none) Explanation
Explanation/Reference:
QUESTION 5
Which 2 alternative actions apply to the proposed supplier assurance for this project?
A. Retainbecausehehasaprofessionalfacilitiesqualificationandsoisinapositiontospecifytheneedsofhisdivision.



B. Retainbecausehewillbeabletoadviseonmanyoftheproductsthatwillenableoutsourcingtohappen,suchasthe10-yearoutsourcingservicecontract. C. Retain because he is well-regarded within the Ministry because of the efficiencies, superb service and savings he has achieved in the Facilities Division. D. Add 'Outcome Account Manager' because he will advise on potential changes and their impact on the integrity of the project's products.
E. RemovebecauseheisinvolvedwiththeprojectandisthereforeNOTindependent.
Correct Answer: BD Section: (none) Explanation
Explanation/Reference:
QUESTION 6
Which 2 alternative actions apply to the proposed user assurance for this project?
A. Retainbecausetheyarebothverypositiveaboutoutsourcingtheselectedbusinessfunctions.
B. Retainbecausetheirdivisionswillbethemajorusersoftheoutsourcedservicesandtheycanprovidetheuserperspectiveontheimpactofanyproposed changes.
C. Remove because neither of these individuals are from the business functions to be outsourced.
D. Retain because selecting only one of them may cause unnecessary conflict.
E. Retainbecausetheyareabletohelpidentifystakeholdersandtheircommunicationrequirements.
Correct Answer: BE Section: (none) Explanation
Explanation/Reference:



Organization Theme
Question Set 3
QUESTION 1
Which of the following is False?
A Successful project management team should.
A. Havebusiness,userandsupplierstakeholderrepresentation
B. Neverbereviewedasmembersshouldstaywiththeteamfortheduration
C. Ensure appropriate governance by defining responsibilities for directing, managing and delivering the project and clearly defining accountability at all levels D. Have an effective strategy to manage communication flows to and from stakeholders
Correct Answer: B Section: (none) Explanation
Explanation/Reference:
QUESTION 2
Which of the following statements is true of the business interest on the project?
A. Ensurestheprojectprovidesvalueformoney
B. Ensurestherequirementsfortheprojectaredefined
C. Ensures the products produced meet the desired quality D. Represents the users of the product
Correct Answer: A Section: (none) Explanation
Explanation/Reference:
QUESTION 3
Which of the following represents the four key characteristics a good Project board should display?



A. Authority,Credibility,Commitment,Availability B. Authority,Credibility,Delegation,Availability C. Authority, Availability, Connections, Delegation D. Authority, Credibility, Connections, Delegation
Correct Answer: B Section: (none) Explanation
Explanation/Reference: