The correct answer is C - Prepare the project plan . Product-based planning is central to preparing a reliable PRINCE2 plan. The project team begins by defining and analysing the products that must be delivered and then establishes their dependencies, activities, resource requirements, estimates, and sequence.
The workshop described in the scenario is explicitly breaking the site-preparation and foundation products into greater detail. That is a planning activity. The discovery that a more comprehensive environmental impact assessment will be necessary also affects the work required to produce the project's products and potentially its schedule, resources, dependencies, and costs. Those implications should therefore be incorporated while preparing the project plan.
Option A concerns deciding how PRINCE2 and organizational project-management requirements will be adapted to the circumstances of LouisShopping. It is not the activity in which detailed product decomposition is performed. Option B concerns establishing the management approaches governing areas such as risk, issues, quality, commercial management, sustainability, and digital/data management. Option D uses the resulting estimates and other planning information to develop the project's detailed justification, but the product-based planning workshop itself belongs to preparation of the project plan.
The sequence is important: detailed planning information can subsequently inform refinement of the full business case.
PRINCE2 7 reference topics: Initiating a project; prepare the project plan; plans practice; product-based planning; product analysis; estimates and dependencies.

The correct mapping is Statement 1 - F; Statement 2 - B; Statement 3 - A .
Statement 1 belongs in the commercial management approach because it concerns the commercial and sourcing arrangements for delivery. The use of an external supplier for most specialist work is a supplier and procurement consideration and therefore needs to be addressed through the project's commercial management arrangements.
Statement 2 belongs in the benefits management approach because it specifies a measurable target, identifies how achievement will be monitored, and allocates responsibility for reviewing the resulting evidence. Although the target concerns sustainability, the statement is principally about how the target's achievement will be measured and reviewed. Those arrangements are characteristic of benefits-management planning.
Statement 3 belongs in the business case because the committed funding relates directly to the investment required to undertake the project and therefore forms part of the project's justification and financial basis.
The distractors serve different purposes. The sustainability management approach addresses how sustainability will be managed throughout the project; the end stage report records stage performance; and the project brief establishes the project's initial foundation during starting up a project. The question tests the ability to distinguish closely related management products according to the specific information each is designed to control.
PRINCE2 7 reference topics: Business case practice; commercial management approach; benefits management approach; investment justification; management products.

The correct answer is D . PRINCE2 distinguishes between the risk owner and the risk action owner . The risk owner is responsible for managing, monitoring, and controlling an assigned risk, including ensuring that an appropriate response is established. A risk action owner is responsible for carrying out a specific agreed response action.
In the scenario, the project executive may legitimately be assigned ownership if that allocation is appropriate to the nature and significance of the risk. However, the response consists of operational activities-surveying buildings and monitoring vibration-that will actually be performed by specialists. Naming the project manager as the sole action owner merely because the project manager coordinates project delivery does not accurately allocate responsibility for implementing those specific actions.
Option A therefore overstates the requirement for the project manager to own every response action. Option B focuses only on seniority and potential effect on business justification, rather than addressing the inappropriate action ownership. Option C is incorrect because PRINCE2 does not require the risk owner and risk action owner to be the same person.
Clear allocation matters because it establishes precisely who monitors the overall exposure and who is accountable for implementing each agreed response action.
PRINCE2 7 reference topics: Risk practice; risk owner; risk action owner; risk responses; ownership and accountability; risk register.

The correct answer is B . PRINCE2 distinguishes the business layer from the project management layer. The business layer commissions projects, establishes the broader organizational context, and appoints an appropriate project executive who will represent the business interest and become ultimately accountable for the project's success within the project board.
The scenario explicitly states that the LOB Portfolio Director is acting at the business layer . Consequently, selecting and appointing an appropriate project executive is consistent with the responsibilities associated with that level of governance.
Option A is too broad. The appointment is not appropriate merely because the Mayor can delegate the activity to any senior stakeholder. The suitability arises because the Portfolio Director is acting as the relevant business-layer representative. Option C incorrectly assumes that the Mayor must personally make the appointment because of the project's civic significance; PRINCE2 does not impose such a requirement.
Option D similarly assigns the responsibility automatically to the Head of Portfolio Office, even though the scenario explicitly identifies the Portfolio Director as the relevant business-layer representative.
The key distinction is therefore between business-layer governance and project-level management. The project executive is appointed from the business layer and subsequently leads the project board.
PRINCE2 7 reference topics: Organization practice; business layer; project executive; commissioning a project; project board structure and accountability.

The correct answer is D . Under PRINCE2, the project manager is responsible for preparing stage plans , irrespective of whether most specialist delivery during a particular stage is undertaken by an external supplier.
A stage plan is a management-level control document used by the project manager and project board to manage and authorize the relevant management stage.
Supplier team managers can and should contribute detailed planning information. They may prepare team plans where appropriate and provide estimates, resource requirements, dependencies, schedules, risks, and detailed information concerning their work packages. Those inputs support preparation of the stage plan but do not transfer ownership of the management-stage plan to the supplier.
Option A incorrectly equates delivery of most stage products with ownership of the stage plan. Option B introduces an unsupported distinction based on the number of suppliers involved. Option C goes even further by asserting that every external supplier should prepare the complete stage plan for the stage in which it operates. That would blur the distinction between project management control and specialist delivery responsibility.
The planning hierarchy remains important: the project manager plans and controls the management stage, while team managers plan and execute the detailed specialist work delegated through work packages.
PRINCE2 7 reference topics: Plans practice; stage plans; team plans; project manager responsibilities; team manager responsibilities; work packages; management versus specialist products.