This PRINCE2F practice question tests your understanding of project initiation and stages. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project is initiating and the Business Case shows a cost-benefit ratio of 1:1.2. The project board is concerned. What should the project manager do?
Reduce scope to lower costs
Why wrong: Scope changes require Board approval and may not be necessary.
Seek alternative options to improve benefits
Why wrong: May be valid, but the immediate action is to provide justification.
Provide justification and request approval
The PM should explain why the ratio is acceptable and let the Board decide.
Recommend project cancellation
Why wrong: Too drastic; further analysis is needed.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Provide justification and request approval
The Business Case shows a cost-benefit ratio of 1:1.2, which is positive (benefits exceed costs). The project board's concern does not automatically invalidate the Business Case. According to PRINCE2, the project manager's role during initiation is to provide the board with the justification (the Business Case) and formally request approval to proceed. Option C is correct because the project manager must present the evidence and seek a decision, not unilaterally change scope or cancel.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Reduce scope to lower costs
Why it's wrong here
Scope changes require Board approval and may not be necessary.
Seek alternative options to improve benefits
Why it's wrong here
May be valid, but the immediate action is to provide justification.
Provide justification and request approval
Why this is correct
The PM should explain why the ratio is acceptable and let the Board decide.
Related concept
Read the scenario before looking for a memorised answer.
Recommend project cancellation
Why it's wrong here
Too drastic; further analysis is needed.
Common exam traps
The trap here is that candidates assume a low cost-benefit ratio (like 1:1.2) automatically means the project should be cancelled or reworked, but PRINCE2 requires the project manager to present the Business Case as-is and let the board decide.
Detailed technical explanation
In PRINCE2, the Business Case is developed and refined during the Initiating a Project process. The cost-benefit ratio is a key metric, but the project manager does not have authority to change scope or cancel; these are board-level decisions. The project manager's responsibility is to ensure the Business Case is complete, accurate, and presented for approval. A ratio of 1:1.2 means for every unit of cost, 1.2 units of benefit are expected—this is a positive return, so the board's concern might be about risk or confidence, not the ratio itself.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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What to study next
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FAQ
Project Initiation and Stages — This question tests Project Initiation and Stages — Read the scenario before looking for a memorised answer..
The correct answer is: Provide justification and request approval — The Business Case shows a cost-benefit ratio of 1:1.2, which is positive (benefits exceed costs). The project board's concern does not automatically invalidate the Business Case. According to PRINCE2, the project manager's role during initiation is to provide the board with the justification (the Business Case) and formally request approval to proceed. Option C is correct because the project manager must present the evidence and seek a decision, not unilaterally change scope or cancel.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.
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