Project Initiation Documentation

C.

The Project Initiation Documentation (PID) is a key document in PRINCE2 (PRojects IN Controlled Environments), a widely used project management framework. The PID provides a comprehensive overview of the project, including its goals, objectives, scope, timelines, budgets, risks, and resources. It is used to ensure that a sound basis exists for the project and that everyone involved in the project understands its purpose, objectives, and requirements.

1. The statement "The Project Initiation Documentation is used to ensure that a sound basis exists" is true. The PID is developed during the initiation stage of the project and is used to establish a common understanding of the project among all stakeholders, including the project board, project manager, and team members. The PID provides a clear description of the project's scope, objectives, timelines, budgets, and risks, and it serves as a basis for all project planning and execution activities. The PID helps ensure that the project is feasible and that the necessary resources are available to complete it successfully.

2. The statement "The Project Initiation Documentation should be updated at the end of each stage to reflect the current status of a project before the Project Board authorizes a project" is not entirely true. While the PID is a living document that should be reviewed and updated throughout the project's lifecycle, it is not typically updated at the end of each stage. Instead, it is reviewed and updated at the end of each management stage, which is a specific phase of the project defined by the PRINCE2 framework. The PID is reviewed at the end of each management stage to ensure that the project remains on track and that any necessary adjustments can be made before the project proceeds to the next stage.

Therefore, the correct answer to the question is option A: Only 1 is true.