PRINCE2F Business Case and Organizing Practice Question
A project is in the initiation stage. The project manager is developing the business case and needs to ensure it contains all the required elements according to PRINCE2. Which TWO of the following are components of the business case? (Choose two.)
⚠ Common exam trap
Many exam-takers confuse the business case with other PID documents, such as the organization structure or communication plan, which are separate components.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Expected benefits and dis-benefits
The business case in PRINCE2 includes the reasons why the project is needed and the expected benefits and dis-benefits. These elements are essential for justifying the project and for enabling the Project Board to make informed decisions about its continuation. Other components such as organization structure, communication plan, and risk management approach are documented elsewhere in the PID, not in the business case itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Expected benefits and dis-benefits
Why this is correct
The business case must include the expected benefits and dis-benefits, which are the measurable improvements and negative consequences resulting from the project. Benefits are the reasons for the investment, and dis-benefits are the negative outcomes that must be weighed. This information allows the Project Board to assess whether the project is worthwhile and to monitor benefits realization after the project.
- ✗
Details of the project's organization structure
Why it's wrong here
The organization structure is documented in the Project Initiation Documentation (PID) under the organization section, not in the business case. The business case focuses on the justification, costs, benefits, risks, and timescales. While the organization is important, it is not a component of the business case itself. The business case is concerned with the 'why' and 'what' of the project, not the 'who'.
- ✗
The project's communication plan
Why it's wrong here
The communication plan is part of the Communication Management Strategy, which is a separate document in the PID. The business case does not include details of how information will be disseminated to stakeholders. While communication is important for stakeholder engagement, it is not a component of the business case. The business case focuses on the justification and viability of the project, not on communication methods.
- ✓
Reasons why the project is needed
Why this is correct
The business case must clearly state the reasons why the project is needed, often expressed as the business problem or opportunity. This section explains the justification for undertaking the project and links it to corporate or programme strategy. It is a fundamental part of the business case, providing the rationale for the investment and helping the Project Board decide whether to proceed.
- ✗
The project's risk management approach
Why it's wrong here
The risk management approach is documented in the Risk Management Strategy, which is part of the PID. The business case includes a summary of the key risks and their potential impact on the business justification, but it does not contain the detailed approach to managing risk. The business case is concerned with the overall viability, not the specific risk management procedures.
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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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