4.1.1 Explain the Purpose of the ‘business Case’ Practice (5.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   How is the business case used throughout the project lifecycle in PRINCE2?

   • AIt is only used during the initiation stage
   • BIt is developed as an outline, then updated at key points, and used for final evaluation
   • CIt is created once at the start and never changed
   • DIt is replaced by the project plan after initiation
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2. 2application · easy

   A project manager is creating the business case for a new project. The project is expected to reduce operational costs by 20% within two years of completion. The project will cost £1 million to implement. What should the project manager include in the business case?

   • AThe expected benefits, costs, and the timescale for realizing the benefits.
   • BThe project's risks and how they will be managed.
   • CThe project's scope, quality, and schedule.
   • DThe project's stakeholders and their communication needs.
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4. 3foundation · easy

   Which of the following is NOT a key aspect addressed by the business case?

   • AThe project's risks
   • BThe project's timescales
   • CThe project's team structure
   • DThe project's costs
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5. 4foundation · easy

   Which of the following is a key aspect addressed by the business case in PRINCE2?

   • AThe project's procurement strategy
   • BThe project's quality management approach
   • CThe project's communication plan
   • DThe expected benefits of the project
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6. 5application · medium

   A retail company is considering a project to replace its legacy point-of-sale system. The project board is about to make a go/no-go decision at the end of the initiating a project process. Which document should the project board use as the primary basis for this decision?

   • AThe benefits management approach, which defines how the benefits will be measured and realized.
   • BThe detailed business case, which confirms the project remains desirable, viable, and achievable before authorizing the project.
   • CThe risk management approach, which outlines how risks will be identified and managed during the project.
   • DThe project plan, which provides the detailed schedule and resource requirements needed to assess feasibility.
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