PRINCE2F Project Initiation and Stages Practice Question
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?
⚠ Common exam trap
Watch out — candidates often 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.
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
✓
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.
Answer analysis
Option-by-option breakdown
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.
- ✗
Recommend project cancellation
Why it's wrong here
Too drastic; further analysis is needed.
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Written by Johnson Ajibi, MSc IT Security
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