4.1.1 Explain the Purpose of the ‘business Case’ Practice (5.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A project to develop a new mobile app is in the initiating a project process. The project manager has prepared a business case showing the project is viable and achievable, but the expected benefits are difficult to quantify. The project board is concerned that the business case does not provide enough justification. What should the project manager do?

   • AWork with the project board to refine the benefits and agree on how they will be measured, updating the business case accordingly.
   • BRemove the benefits from the business case, as they are difficult to quantify.
   • CProceed with the project, as the business case is sufficient if the project is viable and achievable.
   • DAsk the project board to approve the project without a detailed business case.
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2. 12foundation · easy

   How does the business case support decision-making in PRINCE2?

   • AIt describes the project's approach to procurement and contracts
   • BIt defines the project's communication strategy
   • CIt provides justification for starting, continuing, or stopping the project based on ongoing viability
   • DIt lists all the project's stakeholders and their interests
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4. 13expert · hard

   A project to implement a new ERP system is in the delivery stage. The project board has received a request for a change that would add a new module, increasing costs by 15% but also increasing benefits by 20%. 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.
   • BAsk the project manager to decide, as they have the most detailed knowledge of the project.
   • CApprove the change, as the updated business case shows the project is still viable and the benefits outweigh the costs.
   • DReject the change, as the costs have increased.
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5. 14application · easy

   A project manager is creating the business case for a new marketing campaign. The campaign is expected to generate £500,000 in additional revenue, but the costs are estimated at £450,000. The project manager also identifies a risk that the campaign may not generate the expected revenue. What should the project manager do?

   • AInclude the risk in the business case, as it affects the viability of the project.
   • BInclude the risk only if it is certain to occur.
   • CExclude the risk, as it is not a cost or benefit.
   • DExclude the risk, as it is unlikely to occur.
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6. 15foundation · easy

   In PRINCE2, what is the primary basis for deciding whether to continue a project?

   • AThe number of resources already invested
   • BThe project's business case and its ongoing viability
   • CThe project manager's personal judgment
   • DThe preferences of the project team
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