4.1.6 Describe the PRINCE2 Technique for the ‘business Case’ Practice (5.3.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A project to replace a legacy CRM system is underway. The project board is about to authorize the next stage. The senior user has just reported that the new system will not support a critical reporting feature that was originally promised. The executive asks for an updated business case before making a decision. What is the primary purpose of updating the business case at this point?

   • ATo document the change request so the project manager can track it
   • BTo provide the project board with the information needed to decide whether the project remains worthwhile
   • CTo record the senior user's dissatisfaction for the lessons log
   • DTo update the project plan with the new reporting feature's impact
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2. 17application · medium

   During the Starting Up a Project process, the project manager is asked to prepare the business case. The project mandate is vague, and the project board has not yet been appointed. What is the most appropriate action?

   • ADevelop an outline business case based on the mandate and available information
   • BSkip the business case until the project is fully planned
   • CCreate a detailed business case with full cost and benefit figures
   • DWait for the project board to be appointed before starting any business case work
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4. 18expert · hard

   A project's business case is based on a cost-saving initiative. Midway through, a new regulation increases implementation costs by 20%, but the expected savings remain the same. The project board is split: the executive wants to continue, while the senior user argues the project is no longer viable. What is the most appropriate action to resolve this?

   • AContinue as planned because the savings are unchanged
   • BAsk the senior user to reduce the expected savings to match the costs
   • CTerminate the project because costs have increased
   • DUpdate the business case with the new costs and re-evaluate the cost-benefit ratio
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5. 19expert · hard

   A project is in its final stage, and the business case shows that the project will deliver the expected benefits. However, a new competitor has entered the market, and the senior user believes the benefits will be reduced. The project board is meeting to authorize the final stage. What should the board do?

   • AApprove the final stage because the project is almost complete
   • BUpdate the business case to reflect the market change and re-assess the project's viability
   • CIgnore the senior user's concern because it is based on speculation
   • DTerminate the project immediately because benefits will be reduced
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6. 20foundation · easy

   At which point in the PRINCE2 project is the business case formally verified and updated?

   • AOnly when the project is closed
   • BOnly at the start of the project
   • CWhenever a team member requests it
   • DAt stage boundaries
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