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PRINCE2F Project Initiation and Stages Practice Question

A project is nearing the end of the Initiation Stage, and the Project Manager is preparing the Project Initiation Documentation (PID) for the Project Board's 'authorise the project' decision. The Board specifically requests a consolidated view of the project's justification, including expected benefits and costs. Which component of the PID should the Project Manager highlight to address this request?

⚠ Common exam trap

The trap here is assuming that the Project Plan, because it includes costs and schedule, is the primary document for justifying the project.

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

✓

The Business Case

The Business Case is the PID component that justifies the project by outlining expected benefits, costs, risks, and timescales. It is specifically designed to support the Project Board's decision to authorise the project. While other components like the Project Plan and management approaches provide supporting information, they do not offer the consolidated justification that the Board requires.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    The Project Plan

    Why it's wrong here

    The Project Plan describes how and when the project's objectives will be achieved, including products, activities, and resources. While it contains cost and schedule information, it does not provide the consolidated justification with expected benefits that the Board is requesting. The Business Case is the correct component for justification.

  • ✗

    The Risk Management Approach

    Why it's wrong here

    The Risk Management Approach defines the procedures for managing risk, such as risk tolerance and reporting. It does not present the project's justification or expected benefits. The Board's request for justification is addressed by the Business Case, not by the risk management strategy.

  • ✗

    The Quality Management Approach

    Why it's wrong here

    The Quality Management Approach describes how quality will be managed, including quality criteria and methods. It is not the component that provides the project's justification. The Business Case is the correct part of the PID for the Board's request regarding benefits and costs.

  • ✓

    The Business Case

    Why this is correct

    The Business Case is the PID component that presents the justification for the project, including expected benefits, costs, risks, and timescales. It directly addresses the Board's request for a consolidated view of the project's justification. The Project Manager should ensure the Business Case is up to date and reflects the latest information from the Initiation Stage.

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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint

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