PROJEX ACADEMY
PRINCE2 ®
®
7 Edition
th
Foundation
Masterclass
Masterclass
Handbook
Handbook
Handbook 1
HANDBOOK ONE PRINCE2 7th Edition Foundation Masterclass
Copyright
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PRINCE2® is a registered trademark of AXELOS Limited, used under permission of AXELOS Limited.
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Based upon AXELOS® PRINCE2® materials. Material is used under licence from AXELOS Limited.
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V1.0 October 2024
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mechanical means, including information storage and retrieval systems – except for brief
quotations in articles or reviews – without permission in writing from its publisher, David
Geoffrey Litten.
All brand names and product names used in this book are trademarks, registered trademarks,
or trade names of their respective holders.
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PRINCE2 7th Edition Module 1 Workshop Exercises
The objective of these exercises is NOT to replicate exam
questions, but rather to test how much you have absorbed from the
PRINCE2 7th Edition syllabus information within the video lessons.
You do, however, get sample paper examples with answers.
I strongly recommend that you watch each video at least once, and you may find it
helpful to skim over video sections for clarification.
I have deliberately not provided answers as I want to encourage you to go back over
any video sections that you need to review to obtain the answer. I have included in
this handbook graphics of each presentation slide used for each video, and you may
prefer to use those instead of the videos.
Finding topic areas, you need to review, is a powerful way of honing your PRINCE2
knowledge and gaining a pass in your exam.
1. PRINCE2 is a project management method composed of five integrated
elements. What are they?
2. What are the FOUR layers within PRINCE2?
3. What are the names of the minimum number of stages within PRINCE2 project?
4. Which Process is not used within a Stage?
5. Which process is used to assemble the PID
6. Which process is used to create the project products?
7. Name the four PRINCE2 Plans, and which is optional?
8. Complete the PRINCE2 definition for a project “A temporary organization that is
created ……. “
9. What are the FIVE characteristics of a project?
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10. What are the SEVEN performance targets? (Hint. They are also the seven
tolerance types)
11. PRINCE2 suggests THREE delivery methods. Describe each.
12. PRINCE2 has FOUR layers. Name them.
13. Name the SEVEN PRINCE2 Practices.
14. Name the SEVEN PRINCE2 Processes
15. Which practice answers the question “Who?”
16. Which practice answers the question “Why?”
17. Which practice answers the question “"How", "How much", and "When"?
18. Which practice answers the question “What?”
19. Which practice answers the question “What If?”
20. Which practice answers the question “What now?”
21. Which practice answers the question “Where are we now"? "Where are we
going"? "Should we continue?"
22. Name the FOUR main areas of Sustainability giving an example from each.
23. When discussing PRINCE2’s features and benefits, it states SEVEN benefit
areas that the method provides. Can you write them out?
24. What should happen if, during the Project, the business justification is no longer
valid?
25. What three interests should be represented on the Project Board?
26. Who has the responsibility to seek out Lessons Learned?
27. In which document will you find business justification to start the project?
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28. Why are stages referred to as Management Stages?
29. Describe what is meant by Manage by Exception?
30. In which document should it be described how the PRINCE2 method is
tailored for that specific project?
31. In which process are the projects specialist products created?
32. The PRINCE2 principles are the __________ _________ that determine whether
the project is genuinely being managed using PRINCE2
33. The PRINCE2 method is based on SEVEN principles. Name them.
34. What are the FIVE typical PRINCE2 project contexts? Which of those would you
typically tailor, and which of those would you typically apply?
35. If continuing with the project can no longer be justified, then it should be
stopped. What are the benefits of doing this?
36. State examples of the advantages of using PRINCE2 management stages.
37. State THREE factors that influence the appropriate number of stages for a
project.
38. Which authority authorizes the project one stage at a time,
39. State the definition of Tolerance. At what levels is it applied?
40. What are the SEVEN types of tolerances?
41. In your own words, explain how tolerances provide project control in
conjunction with management by exception.
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FOUNDATION QUESTIONS
1. Which principle is being applied when setting limits for the seven aspects of
performance to enable the project manager to work effectively?
A. Manage by exception
B. Learn from experience
C. Tailor to suit the project
D. Define roles, responsibilities and build relationships
2. What does the 'ensure continued business justification' principle facilitate?
A. That the project has a business stakeholder to ensure the investment continues to be
justified
B. That the project remains desirable, viable and achievable as the project progresses
C. That products delivered by the project meet their quality requirements
D. That the PRINCE2 project management method is suited to the scale of investment
3. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They consider industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
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4. An external IT company is being appointed to deliver a new accounting system as
part of a project.
Which principle is being applied when agreeing to the contract with the IT company?
A. Define roles, responsibilities and relationships
B. Manage by stages
C. Manage by exception
D. Tailor to suit the project
5. What does the 'manage by exception' principle enable?
A. Decisions to be made by the right people, at the right time
B. The project to deliver benefits required by the business
C. The project team members to understand their contribution to the project
D. The project team defines the scope to be delivered by the project
6. The project manager agreed with the team manager that a work package can be
delivered up to 1 week later than shown on the team plan.
Which principle is being applied by the project manager?
A. Learn from experience
B. Define roles, responsibilities and relationships
C. Manage by exception
D. Focus on products
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7. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately
B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
8. Which statement about the ‘define roles, responsibilities and relationships’ principle
is CORRECT?
A. The project management team should consist exclusively of internal stakeholders
B. An organization’s day-to-day management structures are likely to be suited to control
the project work
C. The project board should exclude external supplier representatives
D. Suppliers are stakeholders that can be external to the business
9. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They take into account industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
10. Which is a delivery approach that is defined as starting the next delivery step only
when the previous step has been completed and the product is made available at the
end of project?
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A. Linear-sequential
B. Hybrid
C. Iterative-incremental
D. Event-driven
11. Which characteristic of a project relates to teams from different organizations
working together?
A. Cross-functional
B. Unique
C. Temporary
D. Change
12. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately.
B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
13. Which is a characteristic of a project that distinguishes it from business as usual?
A. Projects continue after business-as-usual resumes
B. Projects include ongoing management of operations
C. Every project will be different to previous projects
D. Project work is generally less risky than business as usual work
14. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately
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B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
15. What does the ‘ensure continued business justification’ principle facilitate?
A. That the project has a business stakeholder to ensure the investment continues to
be justified
B. That the project remains desirable, viable and achievable as the project progresses
C. That products delivered by the project meet their quality requirements
D. That the PRINCE2 project management method is suited to the scale of investment
16. Which statement about the ‘define roles, responsibilities and relationships’ principle
is CORRECT?
A. The project management team should consist exclusively of internal stakeholders
B. An organization’s day-to-day management structures are likely to be suited to control
the project work
C. The project board should exclude external supplier representatives
D. Suppliers are stakeholders that can be external to the business
17. What does the ‘manage by exception’ principle enable?
A. Decisions to be made by the right people, at the right time
B. The project to deliver benefits required by the business
C. The project team members to understand their contribution to the project
D. The project team to define the scope to be delivered by the project
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18. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They take into account industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
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FOUNDATION ANSWERS
1. Which principle is being applied when setting limits for the seven aspects of
performance to enable the project manager to work effectively?
A. Manage by exception
B. Learn from experience
C. Tailor to suit the project
D. Define roles, responsibilities and build relationships
A. Correct. Setting tolerances against the seven aspects of performance relates to the
'manage by exception' principle. "Delegating authority from one management level to
the next by setting tolerances against seven aspects of performance for the respective
level of the plan."
2. What does the 'ensure continued business justification' principle facilitate?
A. That the project has a business stakeholder to ensure the investment continues to be
justified
B. That the project remains desirable, viable and achievable as the project progresses
C. That products delivered by the project meet their quality requirements
D. That the PRINCE2 project management method is suited to the scale of investment
B. Correct. PRINCE2 requires "there must be a justifiable reason for starting the project,
and the justification must remain valid... throughout the lifecycle of the
project." This is the 'ensure continued business justification' principle.
3. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They take into account industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
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A. Correct. The principles guide how PRINCE2 can be tailored to best fit a project and
its context. “To enable PRINCE2 to be used for such a wide range of projects, the
method is flexible in how it can be used for any given project. Rather than prescribing
what to do to align the method to the specific project, PRINCE2 offers guidance through
principles.”
4. An external IT company is being appointed to deliver a new accounting system as
part of a project.
Which principle is being applied when agreeing to the contract with the IT company?
A. Define roles, responsibilities and relationships
B. Manage by stages
C. Manage by exception
D. Tailor to suit the project
A. Correct. The 'define roles, responsibilities and relationships' principle relates to
defining roles and responsibilities within a structure that engages the business, user
and supplier interests.
"A PRINCE2 project has defined and agreed roles and responsibilities within an
organization structure that engages the business, user and supplier stakeholder
interests."
5. What does the 'manage by exception' principle enable?
A. Decisions to be made by the right people, at the right time
B. The project to deliver benefits required by the business
C. The project team members to understand their contribution to the project
D. The project team to define the scope to be delivered by the project
A. Correct. The ‘manage by exception’ principle reduces time burden for senior
management without removing control, by ensuring decisions are made at the right
level in the organization. “The implementation of ‘manage by exception’ provides for
efficient use of senior management time as it reduces senior managers’ time burden
without removing their control. This ensures decisions are made at the right level in the
organization.”
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6. The project manager agreed with the team manager that a work package can be
delivered up to 1 week later than shown on the team plan.
Which principle is being applied by the project manager?
A. Learn from experience
B. Define roles, responsibilities and relationships
C. Manage by exception
D. Focus on products
C. Correct. The 'manage by exception' principle sets tolerances for the respective level
of plan. "A PRINCE2 project establishes limits of delegated authority by defining
tolerances for performance against its plans."
7. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately
B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
A. Correct. The project context is one of the five integrated elements of PRINCE2. It
influences how “the principles, practices and processes are applied by the people
involved to ensure the method is fit for the project context.”
8. Which statement about the ‘define roles, responsibilities and relationships’ principle
is CORRECT?
A. The project management team should consist exclusively of internal stakeholders
B. An organization’s day-to-day management structures are likely to be suited to control
the project work
C. The project board should exclude external supplier representatives
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D. Suppliers are stakeholders that can be external to the business
D. Correct. Supplier stakeholders can be external to the organization. “Stakeholders can
be individuals or groups within or external to the business… stakeholders outside the
business could be trade unions, customers, suppliers, communities, interest groups,
banks, or the media.”
9. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They consider industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
A. Correct. The principles guide how PRINCE2 can be tailored to best fit a project and
its context. “To enable PRINCE2 to be used for such a wide range of projects, the
method is flexible in how it can be used for any given project.
Rather than prescribing what to do to align the method to the specific project, PRINCE2
offers guidance through principles.”
10. Which is a delivery approach that is defined as starting the next delivery step only
when the previous step has been completed and the product is made available at the
end of project?
A. Linear-sequential
B. Hybrid
C. Iterative-incremental
D. Event-driven
A. Correct. "Each of the delivery steps to create the products occurs in sequence, and
the product is made available during or at the end of the project (for example, in a
construction project where requirements gathering, and design occur before
construction starts)."
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11. Which characteristic of a project relates to teams from different organizations
working together?
A. Cross-functional
B. Unique
C. Temporary
D. Change
A. Correct. Projects are cross-functional. "Projects often across the usual functional
divisions within an organization sometimes span different organizations."
12. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately.
B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
A. Correct. The project context is one of the five integrated elements of PRINCE2. It
influences how "the principles, practices and processes are applied by the people
involved to ensure the method is fit for the project context."
13. Which is a characteristic of a project that distinguishes it from business as usual?
A. Projects continue after business-as-usual resumes
B. Projects include ongoing management of operations
C. Every project will be different to previous projects
D. Project work is generally less risky than business as usual work
C. Correct. "Every project is unique… But each one will differ in a certain way. This can
mean a different team, customer, supplier, location, or timeframe. All these factors
combine to make every project unique. Ref 1.3
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14. Which statement describes the project context?
A. It should be understood by stakeholders so that the principles are applied
appropriately
B. It explains how each aspect of project management should be applied for the
processes to be effective
C. It guides the progression from pre-project activity through the stages of the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships
between them
A. Correct. The project context is one of the five integrated elements of PRINCE2. It
influences how “the principles, practices and processes are applied by the people
involved to ensure the method is fit for the project context.”
15. What does the ‘ensure continued business justification’ principle facilitate?
A. That the project has a business stakeholder to ensure the investment continues to
be justified
B. That the project remains desirable, viable and achievable as the project progresses
C. That products delivered by the project meet their quality requirements
D. That the PRINCE2 project management method is suited to the scale of investment
B. Correct. PRINCE2 requires “there must be a justifiable reason for starting the
project, and the justification must remain valid... throughout the lifecycle of the
project.” This is the ‘ensure continued business justification’ principle.
16. Which statement about the ‘define roles, responsibilities and relationships’ principle
is CORRECT?
A. The project management team should consist exclusively of internal stakeholders
B. An organization’s day-to-day management structures are likely to be suited to control
the project work
C. The project board should exclude external supplier representatives
D. Suppliers are stakeholders that can be external to the business
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D. Correct. Supplier stakeholders can be external to the organization. “Stakeholders can
be individuals or groups within or external to the business… stakeholders outside the
business could be trade unions, customers, suppliers, communities, interest groups,
banks, or the media.”
17. What does the ‘manage by exception’ principle enable?
A. Decisions to be made by the right people, at the right time
B. The project to deliver benefits required by the business
C. The project team members to understand their contribution to the project
D. The project team to define the scope to be delivered by the project
A. Correct. The ‘manage by exception’ principle reduces time burden for senior
management without removing control, by ensuring decisions are made at the right
level in the organization. “The implementation of ‘manage by exception’ provides for
efficient use of senior management time as it reduces senior managers’ time burden
without removing their control. This ensures decisions are made at the right level in the
organization.”
18. Which statement describes how the principles support effective project
management?
A. They allow the project team to decide how the method should be applied on the
project
B. They take into account industry-specific models as PRINCE2 is generic
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
D. They should be applied in the same way across projects within an organization
A. Correct. The principles guide how PRINCE2can be tailored to best fit a project and its
context. “To enable PRINCE2 to be used for such a wide range of projects, the method
is flexible in how it can be used for any given project. Rather than prescribing what to do
to align the method to the specific project, PRINCE2 offers guidance through
principles.”
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