PRINCE2F PRINCE2 Practices Practice Question
Exhibit
Refer to the exhibit.
Exhibit:
Business Case:
Expected Benefits:
- Reduced operational costs by 15%
- Improved customer satisfaction score to 90%
Expected Dis-benefits:
- Initial investment of $500,000
Net Benefits: $1,200,000 over 3 years
Risks:
- Market changes may affect cost savings (probability: Medium, impact: High)Based on the exhibit, what is the purpose of including expected dis-benefits in the Business Case?
⚠ Common exam trap
Candidates often confuse dis-benefits with risks or costs, but PRINCE2 explicitly separates them: dis-benefits are certain negative outcomes, risks are uncertain events, and costs are financial expenditures.
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
✓
To provide a balanced view of the project's justification
The PRINCE2 Business Case must include expected dis-benefits to provide a balanced view of the project's justification. Dis-benefits are measurable negative outcomes that, when weighed against benefits, allow the Senior User and Senior Supplier to make an informed go/no-go decision. Without documenting dis-benefits, the Business Case would present an incomplete picture, potentially leading to approval of a project with hidden negative impacts.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
To identify risks that could affect the project
Why it's wrong here
Expected dis-benefits are the negative outcomes stakeholders accept in exchange for the project's benefits, recorded so the Business Case presents a balanced justification. Risks are captured separately in the Risk Register, so this option substitutes risk identification, which is a distinct PRINCE2 activity, for documenting accepted negative consequences.
- ✗
To show the full cost of the project including ongoing operational costs
Why it's wrong here
Expected dis-benefits record negative outcomes the project will cause, not costs. Cost capture belongs in the Business Case's cost section, which is why this distractor tempts: both live in the same document. The question asks about dis-benefits specifically, so ongoing operational costs are irrelevant here.
- ✓
To provide a balanced view of the project's justification
Why this is correct
Expected dis-benefits record the negative outcomes a project will cause, so including them alongside benefits gives decision-makers a balanced, honest view of justification. Omitting them would overstate value, so this satisfies the stem's purpose of balanced justification.
- ✗
To document the project's key performance indicators
Why it's wrong here
Expected dis-benefits record the negative outcomes accepted in exchange for the project's benefits, giving the Business Case a balanced justification. Key performance indicators measure progress against objectives and belong in the Benefits Management Approach or project controls, so this option confuses performance measurement with documenting accepted negative consequences.
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