4.1.1 Explain the Purpose of the ‘business Case’ Practice (5.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which statement best describes the role of the business case practice in PRINCE2?

   • AIt details the project's risk response strategies
   • BIt provides a mechanism to judge whether the project remains worthwhile
   • CIt specifies the project's organizational structure and roles
   • DIt defines the project's approach to quality management
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2. 7application · easy

   A project manager is preparing the business case for a new project. The project is expected to generate significant benefits, but the costs are also high, and there are several risks that could affect the project's success. What is the primary purpose of the business case in this scenario?

   • ATo define the project's scope and deliverables.
   • BTo provide a detailed plan for how the project will be executed.
   • CTo document the project's approach to managing risks.
   • DTo provide a basis for the project board to decide whether the project is desirable, viable, and achievable.
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4. 8application · easy

   A project manager is updating the business case for a project that is in the delivery stage. The project's costs have increased, and the expected completion date has been extended by three months. What should the project manager update in the business case?

   • AThe risks section, as the risks may change due to the delay.
   • BThe reasons section, as the reasons for the project may have changed.
   • CThe costs and timescales sections, as these have changed.
   • DThe benefits section, as the benefits may change due to the delay.
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5. 9application · medium

   A construction company is initiating a new project to build a warehouse. During the initiating a project process, the project manager needs to create an initial version of the business case. What is the primary purpose of this initial version?

   • ATo provide a complete and final assessment of all benefits, costs, and risks before any work begins.
   • BTo replace the need for a detailed business case later in the project.
   • CTo provide a justification for the project that is detailed enough for the project board to authorize the project.
   • DTo document the project's approach to managing benefits after the project is completed.
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6. 10expert · hard

   A project to develop a new product is in the delivery stage. The project board has received a request for a change that would increase the project's costs by 10% but also increase the expected benefits by 15%. The project manager has updated the business case to reflect this change. What should the project board do?

   • AApprove the change without reviewing the business case, as the project is already approved.
   • BApprove the change, as the updated business case shows the project is still viable and the benefits outweigh the costs.
   • CAsk the project manager to decide, as they have the most detailed knowledge of the project.
   • DReject the change, as the costs have increased.
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