The Commercial Case
22 practice questions with explanations — 15 free to try
PassNova has 22 Better Business Cases Foundation practice questions on The Commercial Case, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
The Commercial Case: example questions & answers
3 worked examples with answers and explanations below. Try 15 Better Business Cases Foundation questions free in the browser; the full 22-question The Commercial Case bank is part of PassNova Premium.
Which case demonstrates that a proposed deal is commercially viable and attractive to the market?
- AThe Commercial Case✓
- BThe Strategic Case
- CThe Financial Case
- DThe Economic Case
Answer: The Commercial Case shows that the procurement is commercially viable, will attract suppliers and results in a well-structured, achievable deal.
In the Commercial Case, what is the principle underlying effective risk allocation?
- ARetain all risk within the public sector
- BAllocate risk based on the lowest bid price
- CTransfer every risk to the supplier regardless of cost
- DAllocate each risk to the party best able to manage it✓
Answer: Best practice is to allocate each risk to the party best placed to manage and control it, which usually delivers the most cost-effective outcome.
What is a 'payment mechanism' in the context of the Commercial Case?
- AThe list of critical success factors
- BThe discount rate used in appraisal
- CThe internal budget approval process the organisation follows before releasing any funds
- DThe arrangement linking supplier payments to performance and outputs delivered✓
Answer: A payment mechanism defines how and when a supplier is paid, often linking payment to performance, availability or delivery of outputs.