PRINCE2 Practitioner — Question 49

The City Council needs to approve all funding requests for projects in the ‘Louistown is Open for Business’ portfolio. The project initiation documentation (PID) for LouisShopping has been prepared. As part of the ‘directing a project’ process, the project executive has passed the PID and full business case to the City Council for approval and requested the City Council to ‘authorize the project’ so that the design work on the regenerated shopping centre can start.
Is this an appropriate application of the ‘directing the project’ process, and why?

Answer options

• A. Yes, because the decision to ‘authorize the design’ work should be taken by the City Council as part of approval of funding
• B. Yes, because the approval by the City Council should replace the need to notify the business areas of project authorization
• C. No, because the City Council should approve the stage 2 plan and funding as well as the PiD in order for the design work to start
• D. No, because the project manager should request the City Council to ‘authorize the project at the end of the initiation stage

Correct answer: A

Explanation

The correct answer is A, as it correctly identifies that the City Council's approval is essential for authorizing the design work as part of the funding process. Option B is incorrect because project authorization still needs to be communicated to the business areas. Option C is wrong because the PID approval is sufficient to commence design work, and option D is incorrect since the project manager's request for authorization is appropriate at this stage.