PRINCE2 PRINCE2-7-Foundation Practice Test - Questions Answers, Page 18

The purpose of the 'Initiating a Project' process in PRINCE2 is to establish solid foundations for the project, ensuring that there is a common understanding of the reasons for the project, the expected benefits, how it will be managed, and what its products should deliver.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

A key step in the recommended approach to 'defining and analyzing the products' in PRINCE2 is writing a Project Product Description. This description captures the purpose, composition, derivation, and acceptance criteria of the project's main deliverable.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

The purpose of the 'Directing a Project' process in PRINCE2 is for the project board to exercise overall control over the project while delegating day-to-day management of the project stages to the Project Manager. This process includes decision-making on project initiation and continuation, as well as providing overall guidance on policy and standards.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

The use of product descriptions supports the 'focus on products' principle by documenting the quality expectations set by the customer or stakeholders. These descriptions ensure that everyone involved understands what needs to be delivered and to what standards, thereby aligning project outputs with stakeholder needs and expectations.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

A risk event in PRINCE2 is described as the area of uncertainty in terms of the threat or opportunity. It specifically refers to a specific set of circumstances that may occur and impact the project if the risk materializes. This description encapsulates the nature of a risk as being either a potential threat or an opportunity based on uncertain events that might affect project objectives.

Reference: PRINCE2 7 Foundation handbook and official documents.

A minimum requirement for applying the Plans theme in PRINCE2 is that team managers in the project must prepare team plans. This ensures that each part of the project controlled by a team manager is adequately planned in line with the overall project plan and stage plans. These team plans provide detailed guidance on how products will be delivered within the constraints set by the project management.

Reference: PRINCE2 7 Foundation resources and study materials.

The Plans theme in PRINCE2 estimates the cost of delivering the project. This theme involves the preparation and maintenance of the necessary schedules and budgets to control the project, including outlining how, when, and by whom the project's products will be delivered and at what cost.

Reference: PRINCE2 7 Foundation handbook and documents.

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.

In PRINCE2, a project's benefits are defined as the measurable improvements that result from the outcomes achieved through the use of the project's outputs. These benefits should align with the objectives set out in the business case and are an essential part of the project's value proposition.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.