Practices - Business Case

What is the purpose of the Business Case in PRINCE2?

• ATo estimate the project budget
• BTo document the justification for the project investment✓
• CTo detail project activities
• DTo plan the project timeline

Answer: The Business Case documents the business reasons for the project and expected benefits.

Who is primarily responsible for the Business Case?

• AThe Project Manager
• BThe Executive✓
• CThe Senior Supplier
• DThe Team Manager

Answer: The Executive owns the Business Case and is responsible for its accuracy and benefits realization.

What are the main components of a Business Case?

• AOutline case, detailed case, post-project review
• BDefinition, investment, benefits, costs, risks✓
• CTimeline, budget, resources
• DObjectives only

Answer: A Business Case includes definition of the project, investment appraisal, benefits, costs, and risks.

When should the Business Case be created?

• AAt project completion
• BDuring Directing a Project process
• CBefore the project is approved✓
• DAfter the first stage

Answer: The Business Case is created before project approval to justify the investment.

What is 'investment appraisal' in the Business Case?

• AEvaluating the project team's skills
• BAssessing financial viability and comparing alternatives✓
• CEstimating project duration
• DPlanning project communication

Answer: Investment appraisal evaluates whether the benefits justify the costs and compare project options.

How should benefits be measured in a Business Case?

• AQualitatively only
• BQuantitatively only
• CBoth quantitatively and qualitatively with defined metrics✓
• DThey don't need to be measured

Answer: Benefits should be defined with measurable criteria to assess realization.

What is the relationship between the Business Case and tolerances?

• AThere is no relationship
• BThe Business Case defines the parameters; tolerances allow for variance✓
• CTolerances limit the Business Case
• DThe Business Case defines tolerances

Answer: The Business Case sets the overall parameters; tolerances define acceptable variance.

When can the Business Case be updated?

• ANever
• BOnly at the end of the project
• CAt stage boundaries when circumstances change significantly✓
• DWeekly

Answer: The Business Case should be reviewed and updated at stage boundaries if significant changes occur.

What is 'Continued Business Justification' in the context of the Business Case?

• ARepeating the business case
• BRegularly confirming the project still delivers value✓
• CExtending the project timeline
• DIncreasing the budget

Answer: Continued Business Justification means regularly confirming that the project remains viable and beneficial.

Who is responsible for realizing the benefits defined in the Business Case?

• AThe Project Manager
• BThe Executive and the business operations after project closure✓
• CThe Team Manager
• DThe Project Board only

Answer: The Executive is responsible for benefits realization, often with operational teams after project closure.

What types of costs should be included in the Business Case?

• AOnly project costs
• BProject, operational, and risk costs✓
• COnly labor costs
• DCapital costs only

Answer: The Business Case should include project delivery costs and operational costs of the solution.

How should project risks be addressed in the Business Case?

• ANot addressed
• BIdentified and their financial impact assessed✓
• CAssumed to be zero
• DOnly documented in the Risk Register

Answer: Business Case should identify major risks and their potential impact on costs and benefits.