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Exam PRINCE2-Practitioner Edition 6 All Questions

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Exam PRINCE2-Practitioner topic 11 question 41 discussion

Actual exam question from PRINCE2's PRINCE2-Practitioner Edition 6
Question #: 41
Topic #: 11
[All PRINCE2-Practitioner Edition 6 Questions]

The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company's continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely.
Is this an appropriate application of the 'manage by stages' principle, and why?

  • A. Yes, because decisions about closure should be escalated to programme management, unless otherwise instructed.
  • B. Yes, because the project board should escalate significant decisions to programme management.
  • C. No, because this contradicts the 'manage by exception' principle.
  • D. No, because the project board should decide whether to continue with the project.
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Suggested Answer: A 🗳️

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ManikRoy
1 year, 1 month ago
Selected Answer: A
Refer Page 24 If the project no longer has a valid business case, and the project board has been delegated the appropriate authority, it will prematurely close the project. Without this authority, the project board will escalate its recommendation for closure to the corporate, programme management or customer decision makers.
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ravi_aws
1 year, 1 month ago
The answer is A. Yes, because decisions about closure should be escalated to programme management, unless otherwise instructed. In PRINCE2, if the project board thinks the project tolerances will be breached, they no longer have authority to continue with the project and must escalate the situation back up to corporate, programme management, or the customer1. This is part of the ‘manage by stages’ principle, which involves reviewing the project at the end of each stage and deciding whether to proceed with the next stage2.
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