The correct approach is to include a cost-benefit analysis showing a range of benefits ($300,000–$500,000) alongside a risk assessment explaining the market uncertainty. This is correct because PRINCE2’s continued business justification principle demands that the Business Case remain a living document reflecting realistic projections, not fixed single-point estimates. By presenting a business case uncertainty range, the project manager acknowledges the inherent risk and provides decision-makers with a balanced view of possible outcomes, which is essential for informed governance. On the PRINCE2 Foundation exam, this tests your understanding that the Business Case must adapt to changing conditions and that uncertainty should be quantified, not ignored. A common trap is choosing a single best-case figure or omitting the risk assessment entirely; instead, remember that PRINCE2 always pairs projections with risk. Memory tip: “Range reveals risk”—if there’s uncertainty, show the spread, not just the hope.
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 manager is preparing the Business Case for a new project. The expected benefits are $500,000, and the expected costs are $400,000. However, there is a high risk that the benefits may be only $300,000 due to market uncertainty. According to PRINCE2 practices, how should the project manager reflect this in the Business Case?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty.
Option A is correct because PRINCE2 requires the Business Case to be a living document that reflects realistic projections, including uncertainties. By showing a range of benefits ($300,000–$500,000) and a corresponding risk assessment, the project manager provides a balanced view that supports informed decision-making, aligning with the 'continued business justification' principle.
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.
✓
Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty.
Why this is correct
The Business Case should present realistic scenarios and associated risks.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use the lower benefit estimate of $300,000 to be conservative.
Why it's wrong here
This may be too pessimistic; the Business Case should reflect the expected value.
✗
Use the expected benefits of $500,000 as the primary figure, with a note that benefits may vary.
Why it's wrong here
The Business Case should include a range or probabilistic assessment, not just a note.
✗
Omit the risk from the Business Case to avoid discouraging stakeholders.
Why it's wrong here
Risks must be included to ensure informed decision-making.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose a single 'conservative' estimate (Option B) thinking it is prudent, but PRINCE2 requires transparency through a range and risk assessment rather than hiding uncertainty or oversimplifying the analysis.
Detailed technical explanation
How to think about this question
In PRINCE2, the Business Case is developed during the 'Starting up a Project' process and refined throughout the project. The cost-benefit analysis should incorporate sensitivity analysis or expected monetary value (EMV) to quantify uncertainty, such as calculating a weighted average (e.g., 0.5 * $500k + 0.5 * $300k = $400k) to show net benefit. This approach ensures the Business Case remains a robust tool for go/no-go decisions and stage-gate reviews, especially in volatile markets.
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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: Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty. — Option A is correct because PRINCE2 requires the Business Case to be a living document that reflects realistic projections, including uncertainties. By showing a range of benefits ($300,000–$500,000) and a corresponding risk assessment, the project manager provides a balanced view that supports informed decision-making, aligning with the 'continued business justification' principle.
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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Question Discussion
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