- A
Ask the project board to approve the Project Plan subject to a review of the Business Case later.
Why wrong: The Business Case should be finalized before plan approval.
- B
Proceed with the Project Plan as the Business Case already shows a positive NPV.
Why wrong: The executive's concern must be addressed before finalizing the plan.
- C
Update the Business Case to reflect the uncertainty and seek approval from the project board before proceeding with the Project Plan.
Why wrong: The project manager should not unilaterally update the Business Case; but this is close to correct, however the project manager should first refine the Business Case with the senior user and senior supplier.
- D
Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.
The Business Case should be updated with risk information to support planning.
Quick Answer
The correct next step is to refine the Business Case by including a risk assessment of the market uncertainty before creating the Project Plan. This is because PRINCE2 treats the Business Case as a living document that must evolve with new information; the NPV and IRR figures are only valid if the underlying assumptions hold, so a risk assessment directly addresses the executive’s concern about uncertain market demand. On the PRINCE2 Foundation exam, this tests your understanding that the Business Case drives the Project Plan, not the other way around—a common trap is to jump straight to planning without first updating the justification. To handle market uncertainty in the business case, always remember the PRINCE2 principle of continued business justification: if the environment shifts, the case must be re-evaluated before any plan is finalized. A useful memory tip is “Plan after Case, not before”—the Project Plan is a child of the Business Case, so refine the parent first.
PRINCE2F PRINCE2 Practices Practice Question
This PRINCE2F practice question tests your understanding of prince2 practices. 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 to upgrade the IT infrastructure of a medium-sized company is in the Initiating a Project process. The project manager has created the Business Case, which shows a net present value (NPV) of £150,000 and an internal rate of return (IRR) of 12%. The project board's executive is concerned that the project may not deliver the expected benefits because the market demand for the new infrastructure is uncertain. The project manager is now preparing the Project Plan. What should the project manager do next?
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
Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.
D is correct because the Business Case must be refined to reflect the market uncertainty before the Project Plan is created. In PRINCE2, the Business Case is a living document that drives decision-making, and the Project Plan is based on it. Including a risk assessment of the market uncertainty ensures the project board can make an informed decision about whether the project remains viable, given the NPV and IRR are based on assumptions that may no longer hold.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ask the project board to approve the Project Plan subject to a review of the Business Case later.
Why it's wrong here
The Business Case should be finalized before plan approval.
- ✗
Proceed with the Project Plan as the Business Case already shows a positive NPV.
Why it's wrong here
The executive's concern must be addressed before finalizing the plan.
- ✗
Update the Business Case to reflect the uncertainty and seek approval from the project board before proceeding with the Project Plan.
Why it's wrong here
The project manager should not unilaterally update the Business Case; but this is close to correct, however the project manager should first refine the Business Case with the senior user and senior supplier.
- ✓
Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.
Why this is correct
The Business Case should be updated with risk information to support planning.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think the Business Case is static once approved, but PRINCE2 requires it to be continually updated to reflect new risks or changes, and the Project Plan must be based on the most current version of the Business Case.
Detailed technical explanation
How to think about this question
In PRINCE2, the Business Case is developed during the Initiating a Project process and must include a risk assessment to quantify uncertainties like market demand. The NPV and IRR are financial metrics that assume certain cash flows; if market demand is uncertain, sensitivity analysis or scenario planning should be applied to test the robustness of these figures. The Project Plan then uses the refined Business Case to define activities, resources, and timelines, ensuring alignment with the project's justification.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case. — D is correct because the Business Case must be refined to reflect the market uncertainty before the Project Plan is created. In PRINCE2, the Business Case is a living document that drives decision-making, and the Project Plan is based on it. Including a risk assessment of the market uncertainty ensures the project board can make an informed decision about whether the project remains viable, given the NPV and IRR are based on assumptions that may no longer hold.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
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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