Starting up is about defining what customer needs, Init the project is about defining how it will be done and provide documents
https://prince2.wiki/processes/initiating-a-project/
C
16.2: The objective of the initiating a project process is to ensure that there is a common understanding of:
● the reasons for doing the project, the benefits expected and the associated risks
● the scope of what is to be done and the products to be delivered
● how and when the project’s products will be delivered and at what cost
● who is to be involved in the project decision-making
● how the quality required will be achieved
● how baselines will be established and controlled
● how risks, issues and changes will be identified, assessed and controlled
● how progress will be monitored and controlled
● who needs information, in what format and at what time
● how the corporate, programme management or customer method will be tailored to suit the project.
C - Initiating a Project. One of the objectives of this process is to define how baselines will be established and controlled . Reference - Prince2 manual, 16.2
option B is correct because PID is produced in the directing stage. PID defines the project and forms the basis for the managing and assessment of overall project success. Ref.A.20
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