4.1.2 Describe the Key Relationships Between the ‘business Case’ Practice and the Principles (5.7, Tab 5.2) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A project to upgrade a manufacturing plant is nearing the end of stage 3. The project manager has received a lessons report from the previous stage indicating that similar upgrade projects in the organization consistently underestimated the cost of production downtime. The business case currently shows a positive net present value. What should the project manager do?

   • AAsk the project board to approve the next stage before updating the business case.
   • BUpdate the business case to include the lessons learned about downtime costs and re-evaluate the net present value.
   • CRecord the lessons in the lessons log but do not change the business case.
   • DIgnore the lessons report because it is from a different project and may not apply.
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2. 17foundation · easy

   What triggers the use of exception management in relation to the business case?

   • AA minor delay in a work package
   • BA change in the project team's composition
   • CA forecast that the project's benefits will be lower than the minimum acceptable level
   • DThe completion of a stage
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4. 18application · medium

   A project to implement a new customer relationship management system is underway. At the end of stage 2, the project board is reviewing the updated business case. The senior user has just reported that the new system will reduce customer churn by 5%, which is lower than the 8% originally forecast. The project manager has updated the business case with the new forecast. What should the project board do next?

   • ARequest that the project manager revise the business case to reflect the original 8% forecast.
   • BReview the updated business case and decide whether the project should continue, amend, or stop.
   • CApprove the stage plan and continue as planned, since the business case is still viable.
   • DInstruct the project manager to escalate the issue to the corporate/programme management for a decision.
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5. 19foundation · easy

   Which principle is most directly supported by the business case practice's use of lessons learned?

   • AFocus on products
   • BManage by exception
   • CContinued business justification
   • DLearn from experience
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6. 20foundation · easy

   How is the business case practice tailored for a small, low-risk project?

   • AIt is simplified to include only essential information such as costs, benefits, and risks
   • BIt is replaced by a verbal agreement
   • CIt is created by the project manager instead of the executive
   • DIt is omitted entirely because the project is small
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