4.1.1 Explain the Purpose of the ‘business Case’ Practice (5.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A project to migrate a company's data center to the cloud is in the delivery stage. The project board has received a report showing that the project is behind schedule and over budget. The project manager has updated the business case, which now shows the project is still viable but with reduced benefits. What should the project board do?

   • AStop the project immediately, as it is behind schedule and over budget.
   • BAsk the project manager to decide, as they have the most detailed knowledge of the project.
   • CContinue the project as planned, as the business case is still viable.
   • DReview the updated business case and decide whether the reduced benefits still justify the project's costs and risks.
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2. 17expert · hard

   A project to upgrade a manufacturing plant's control systems is in the delivery stage. A new regulation has been announced that will require additional safety features, increasing costs by 30%. The project manager has updated the business case, which now shows the project is no longer viable. However, stopping the project would leave the plant non-compliant with the new regulation. What should the project manager do?

   • AContinue the project, as regulatory compliance is more important than the business case.
   • BEscalate the updated business case to the project board, highlighting the trade-off between stopping the project and regulatory compliance.
   • CStop the project immediately, as the business case is no longer viable.
   • DUpdate the project plan to reduce costs elsewhere and continue without escalation.
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4. 18application · medium

   A project board is reviewing a business case that shows the project is desirable (benefits outweigh costs) but not achievable (the required technology is not yet available). According to PRINCE2, what should the project board do?

   • AApprove the project, as viability is not a key aspect of the business case.
   • BApprove the project, as desirability is the most important aspect.
   • CApprove the project, as the technology may become available during the project.
   • DReject the project, as the business case must show the project is desirable, viable, and achievable.
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5. 19foundation · easy

   What is the primary purpose of the business case practice in PRINCE2?

   • ATo document the project's communication plan and stakeholder engagement
   • BTo establish mechanisms to judge whether the project is (and remains) desirable, viable, and achievable
   • CTo define the detailed technical requirements of the project's products
   • DTo allocate tasks to team members and manage their daily work
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6. 20application · easy

   A project manager is preparing the business case for a new customer relationship management (CRM) system. Which set of elements must the business case include to be complete?

   • AScope, quality, schedule, and resources.
   • BBenefits, risks, and stakeholder expectations.
   • CReasons, benefits, costs, risks, and timescales.
   • DCosts, timescales, and the project management team structure.
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