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CCNA Business Case and Organizing Questions

18 questions · Business Case and Organizing · All types, answers revealed

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1
MCQmedium

A project manager is assigned to a project where the executive is often unavailable. Which role can act as a substitute for the executive when making business case decisions?

A.No role can substitute; the project should be escalated to the project board
B.Senior User
C.Senior Supplier
D.Project Assurance
AnswerA

Correct: decisions requiring executive input must be escalated.

Why this answer

In PRINCE2, the Executive is the single point of accountability for the business case and must approve any changes to it. If the Executive is unavailable, no other role can substitute for this authority; the project manager must escalate the decision to the full Project Board. This ensures that business justification decisions are never made without the accountable party or the collective board.

Exam trap

The trap here is that candidates often assume the Senior User or Senior Supplier can step in for the Executive because they are also board members, but PRINCE2 explicitly reserves business case authority for the Executive alone, and no substitute is permitted.

How to eliminate wrong answers

Option B is wrong because the Senior User represents the users' interests and is responsible for specifying requirements and benefits, but they do not have authority over the business case or its financial justification. Option C is wrong because the Senior Supplier represents the supplier's interests and is responsible for the technical integrity of deliverables, not for business case decisions. Option D is wrong because Project Assurance is an independent monitoring role that checks compliance and provides guidance, but it has no decision-making authority over the business case.

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2
MCQhard

You are the project manager for a construction project with a project board consisting of an executive (who is also the senior user), a senior supplier, and a separate senior user. The executive is heavily involved in day-to-day operations and often gives direct instructions to team members, bypassing you. This has caused confusion and delays. The business case is still viable, but the project is behind schedule. What should you do?

A.Escalate to the senior supplier immediately
B.Ignore the executive's instructions and continue with the project plan
C.Issue a change request to update the project plan to include the executive's instructions
D.Speak to the executive privately about the issue and the need to follow the project management structure
AnswerD

Correct: address the issue professionally.

Why this answer

Option D is correct because the project manager must manage the project according to the PRINCE2 management structure, which defines clear roles and responsibilities. The executive is overstepping their role by giving direct instructions to team members, bypassing the project manager, which violates the 'management by exception' principle. Speaking privately to the executive is the appropriate first step to resolve the issue informally and reinforce the need to follow the established project management structure, as per the 'Organizing' theme.

Exam trap

PeopleCert often tests the misconception that the project manager should immediately escalate or formalize executive interference, rather than first addressing the issue informally through direct communication to reinforce the management structure.

How to eliminate wrong answers

Option A is wrong because escalating to the senior supplier immediately is premature; the issue is with the executive's behavior, not a supplier-related problem, and the senior supplier has no authority over the executive. Option B is wrong because ignoring the executive's instructions without addressing the underlying issue could escalate the conflict and further damage the project's progress; the project manager must manage the relationship, not simply disregard instructions. Option C is wrong because issuing a change request to update the project plan to include the executive's instructions would formalize the bypassing behavior, undermining the project manager's authority and the PRINCE2 management structure, and does not address the root cause of the confusion.

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3
MCQhard

A project is in its closing stage. The business case shows that all planned benefits have been realized. What should the project manager do?

A.Start a new project to realize more benefits
B.Update the Business Case with actual benefits and produce the End Project Report
C.Delete the project files
D.Close the project immediately
AnswerB

Correct: finalize documentation.

Why this answer

In PRINCE2, the closing stage requires the project manager to formally confirm that all planned benefits have been realized. Updating the Business Case with actual benefits and producing the End Project Report is the correct action because it provides a formal record of benefit realization and lessons learned, which is essential for organizational learning and project closure. This aligns with the PRINCE2 principle of 'continued business justification' and the 'Closing a Project' process.

Exam trap

The trap here is that candidates may think closing the project immediately (Option D) is efficient, but PRINCE2 mandates a formal closure process that includes updating the Business Case and producing the End Project Report to ensure accountability and learning.

How to eliminate wrong answers

Option A is wrong because starting a new project is outside the scope of the current project's closing stage and does not fulfill the mandatory closure activities; the project manager's responsibility is to close the current project, not initiate new work. Option C is wrong because deleting project files violates the PRINCE2 requirement to archive project documentation for future reference and audit purposes; the End Project Report and lessons log must be retained. Option D is wrong because closing the project immediately without updating the Business Case and producing the End Project Report skips the formal closure process, which includes confirming benefit realization and capturing lessons learned.

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4
MCQeasy

Which document defines the project's organization structure and roles?

A.Risk Register
B.Project Initiation Documentation
C.Project Plan
D.Business Case
AnswerB

The PID includes the organization structure.

Why this answer

The Project Initiation Documentation (PID) is the definitive document that defines the project's organization structure and roles, including the project management team structure, role descriptions, and responsibilities. It is created during the Initiating a Project process and provides a baseline for how the project will be managed and controlled.

Exam trap

PeopleCert often tests the distinction between the Project Plan (which focuses on schedule and resources) and the Project Initiation Documentation (which is the comprehensive document that includes the organization structure and roles), leading candidates to mistakenly select the Project Plan.

How to eliminate wrong answers

Option A is wrong because the Risk Register is a document that records identified risks, their analysis, and planned responses, not the project's organization structure and roles. Option C is wrong because the Project Plan defines the schedule, resources, and costs for delivering the project's products, not the organizational structure. Option D is wrong because the Business Case provides the justification for the project, including costs, benefits, and risks, but does not define the organization structure or roles.

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5
Drag & Dropmedium

Drag and drop the steps to manage a product delivery work package in PRINCE2 into the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps
Order

Why this order

Managing Product Delivery involves accepting the work package, executing the work, delivering the products, obtaining approval, and then reporting completion.

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6
Multi-Selecteasy

Which TWO documents are created during the Starting up a Project process?

Select 2 answers
A.Project Plan
B.End Project Report
C.Business Case
D.Project Brief
E.Risk Register
AnswersC, D

The Business Case is created in Starting up a Project.

Why this answer

The Starting up a Project (SU) process in PRINCE2 is the pre-project phase where the project is evaluated before any detailed planning begins. During SU, the Project Brief is created to outline the project's scope, objectives, and approach, and the Business Case is developed at a high level to justify the project's viability. Both documents are essential for the Project Board to decide whether to proceed to the Initiation Stage.

Exam trap

PeopleCert often tests the distinction between documents created in the pre-project phase (SU) versus the initiation phase, so candidates mistakenly select the Project Plan (A) because they confuse it with the Project Brief, or the Risk Register (E) because they think risk identification starts immediately in SU.

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7
MCQmedium

A project is in the initiation stage. The project board asks the project manager to produce a document that justifies the project. Which document should the project manager produce?

A.Project Initiation Documentation
B.Business Case
C.Project Brief
D.Benefits Management Approach
AnswerB

The Business Case provides the justification for the project.

Why this answer

The Business Case is the document that justifies the project by providing the justification, costs, benefits, and risks. During the initiation stage, the project manager develops the Business Case to confirm that the project is viable and aligns with corporate objectives. The Project Board then reviews and approves it to authorize the project to proceed.

Exam trap

PeopleCert often tests the distinction between the Project Brief (which contains an outline Business Case) and the full Business Case developed during initiation, leading candidates to mistakenly choose the Project Brief as the justification document.

How to eliminate wrong answers

Option A is wrong because the Project Initiation Documentation (PID) is a comprehensive set of documents that includes the Business Case, but it is not solely the justification document; it covers the project plan, controls, and other management products. Option C is wrong because the Project Brief is created during the Starting Up a Project process to provide a high-level overview and is used to trigger the initiation stage, but it does not contain the detailed justification required for the project to proceed. Option D is wrong because the Benefits Management Approach defines how the project's benefits will be realized and measured, but it does not justify the project itself; it is derived from the Business Case.

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8
Multi-Selecthard

Which THREE roles are part of the project board?

Select 3 answers
A.Project Manager
B.Executive
C.Senior Supplier
D.Senior User
E.Project Assurance
AnswersB, C, D

Executive is on the project board.

Why this answer

The Executive is the single accountable role for the project and owns the business case, making it a mandatory member of the project board. The project board's three primary roles are Executive, Senior User, and Senior Supplier, as defined by PRINCE2's organizational structure.

Exam trap

PeopleCert often tests the distinction between roles and functions, so the trap here is confusing Project Assurance as a separate board role when it is actually a function that can be fulfilled by board members or others, not a distinct position on the board.

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9
MCQmedium

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

A.Request an extraordinary meeting of the project board to discuss the revised business case
B.Update the business case with the new figures and continue with the project
C.Reduce project scope to bring costs back in line with the original business case
D.Wait for the next scheduled board meeting to present the changes
AnswerA

Correct: escalate immediately for decision.

Why this answer

The correct answer is A because PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

Exam trap

PeopleCert often tests the misconception that the project manager can autonomously adjust the business case or scope to fix issues, when in fact PRINCE2 mandates escalation to the project board for any significant deviation from the approved plan.

How to eliminate wrong answers

Option B is wrong because updating the business case without board approval violates the PRINCE2 principle of continued business justification and the project manager's authority limits. Option C is wrong because reducing scope without board authorization bypasses the change control process and could introduce unapproved risks or quality issues. Option D is wrong because waiting a month delays critical decision-making, potentially wasting resources on a project that may no longer be viable, and violates the 'manage by stages' requirement to escalate exceptions promptly.

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10
MCQhard

During a project, the cost-benefit ratio becomes unfavorable. What is the first action the project manager should take?

A.Update the Business Case without informing the board
B.Reduce project scope to cut costs
C.Stop the project immediately
D.Request a formal review of the Business Case by the project board
AnswerD

Correct: escalate for board decision.

Why this answer

In PRINCE2, the Business Case is the key document for justifying the project's continued viability. When the cost-benefit ratio becomes unfavorable, the project manager must escalate this issue to the project board, which holds the authority to approve changes to the Business Case or decide on project continuation. Option D is correct because the project manager's first action is to request a formal review by the project board, as per the 'continued business justification' principle and the 'manage by stages' theme.

Exam trap

PeopleCert often tests the misconception that the project manager can independently adjust the Business Case or stop the project, when in fact the project board holds the authority for such decisions under PRINCE2's management by exception and continued business justification principles.

How to eliminate wrong answers

Option A is wrong because the project manager cannot unilaterally update the Business Case; this is a project board responsibility, and doing so without informing the board violates the 'management by exception' principle. Option B is wrong because reducing project scope without a formal change control process and board approval is unauthorized and could undermine the project's objectives and business justification. Option C is wrong because stopping the project immediately is a decision reserved for the project board; the project manager must first escalate the issue and await a formal decision, as per the 'manage by stages' theme.

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11
MCQeasy

Which role is responsible for ensuring that the project delivers the expected benefits?

A.Project Manager
B.Senior Supplier
C.Senior User
D.Executive
AnswerC

Senior user ensures benefits are realized.

Why this answer

The Senior User is responsible for specifying the benefits and ensuring that the project delivers them, as defined in the PRINCE2 Business Case theme. This role represents the interests of those who will use the project's outputs and is accountable for realizing the expected benefits after the project is completed.

Exam trap

PeopleCert often tests the distinction between the Executive's accountability for the Business Case and the Senior User's specific responsibility for benefits delivery, causing candidates to incorrectly choose the Executive as the answer.

How to eliminate wrong answers

Option A is wrong because the Project Manager is responsible for managing the project on a day-to-day basis and ensuring it delivers the required products, but not for ensuring benefits realization. Option B is wrong because the Senior Supplier represents the supplier's interests and is responsible for providing the project's products, not for benefits realization. Option D is wrong because the Executive is accountable for the project's success and owns the Business Case, but the Senior User is specifically responsible for ensuring that the expected benefits are delivered.

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12
Matchingmedium

Match each PRINCE2 theme to its purpose.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

To establish mechanisms to judge whether the project is viable.

To define and implement the means by which the project will verify that products are fit for purpose.

To facilitate communication and control by defining the means of delivering the products.

To identify, assess, and control uncertainty and improve the ability to achieve objectives.

To establish mechanisms to monitor and compare actual achievements against planned.

Why these pairings

These are five of the seven PRINCE2 themes.

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13
MCQmedium

A project manager is reviewing the business case and notices that the benefits are not clearly defined. Which document should be updated to address this issue?

A.Benefits Management Approach
B.Project Plan
C.Business Case
D.Risk Register
AnswerC

The Business Case is the correct document for defining benefits.

Why this answer

The Business Case is the PRINCE2 document that justifies the project on economic grounds, and it must contain clearly defined benefits to enable ongoing viability assessment. If benefits are not clearly defined, the Business Case itself is incomplete and must be updated to ensure the project remains justified and aligned with organizational objectives.

Exam trap

PeopleCert often tests the distinction between the document that defines benefits (Business Case) and the document that plans their measurement (Benefits Management Approach), leading candidates to mistakenly choose the latter when benefits are unclear.

How to eliminate wrong answers

Option A is wrong because the Benefits Management Approach describes how and when benefits will be measured and managed, but it does not define the benefits themselves—that definition belongs in the Business Case. Option B is wrong because the Project Plan details the schedule, cost, and resources for delivering the project outputs, not the benefits that justify the project. Option D is wrong because the Risk Register captures threats and opportunities to the project, not the definition of benefits; unclear benefits would be a risk to be recorded in the Risk Register only after the Business Case is updated to define them.

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14
MCQeasy

Which role is responsible for ensuring that the project's business case remains viable throughout the project?

A.Senior User
B.Senior Supplier
C.Executive
D.Project Manager
AnswerC

The executive owns the business case.

Why this answer

The Executive is the single individual who owns the business case and is ultimately accountable for the project's justification. Throughout the project, the Executive must ensure that the business case remains viable, approving any changes that affect its justification. This is a core responsibility defined in the PRINCE2 Business Case theme.

Exam trap

PeopleCert often tests the misconception that the Project Manager is responsible for the business case's viability, but the Executive is the owner and decision-maker for the business case, while the Project Manager only manages its development and updates.

How to eliminate wrong answers

Option A is wrong because the Senior User represents the users' interests and specifies the desired outcomes, but does not own the business case or its viability. Option B is wrong because the Senior Supplier represents the supplier interests and ensures the project's products are feasible, but is not accountable for the business case. Option D is wrong because the Project Manager manages the day-to-day work and produces the business case, but the Executive is the role that ensures it remains viable throughout the project.

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15
Drag & Dropmedium

Drag and drop the steps to manage a stage boundary in PRINCE2 into the correct order.

Drag steps to the numbered slots on the right, or tap a step then tap a slot.

Steps
Order

Why this order

Managing a Stage Boundary: plan next stage, update project plan, update business case, report, and produce exception plan if required.

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16
Multi-Selectmedium

Which TWO documents are part of the Project Initiation Documentation?

Select 2 answers
A.Lessons Log
B.Business Case
C.Quality Register
D.Project Plan
E.Risk Register
AnswersB, D

The Business Case is part of the PID.

Why this answer

The Business Case is a core component of the Project Initiation Documentation (PID) because it provides the justification for the project, detailing the costs, benefits, and risks. The Project Plan is also part of the PID as it defines the project's scope, schedule, and resource requirements, forming the baseline for execution and control.

Exam trap

PeopleCert often tests the distinction between management products (like the Risk Register and Quality Register) and the core components of the PID, leading candidates to mistakenly include all registers as part of the initiation documentation.

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17
Matchingmedium

Match each PRINCE2 theme to its description.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

Establishes whether the project is desirable, viable, and achievable.

Defines the roles and responsibilities for the project.

Ensures the project's products meet business expectations.

Facilitates communication and control by defining the steps to deliver the products.

Addresses how the project manages uncertainties.

Why these pairings

The seven themes are Business Case, Organization, Quality, Plans, Risk, Change, and Progress.

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18
MCQhard

During a project, the senior user requests a change that significantly increases benefits but also increases costs. What should the project manager do first?

A.Implement the change immediately to realize benefits quickly
B.Update the Business Case and proceed without approval
C.Reject the change because it increases costs
D.Assess the impact on the Business Case and submit a change request to the project board
AnswerD

Correct action: assess and escalate for approval.

Why this answer

In PRINCE2, any change that impacts the Business Case must be formally assessed before action is taken. The project manager's first responsibility is to evaluate the change's effect on the Business Case (costs vs. benefits) and then submit a formal change request to the Project Board, which holds authority for approving changes that alter the project's justification. Option D aligns with the 'manage by stages' and 'continued business justification' principles.

Exam trap

PeopleCert often tests the misconception that the project manager can make decisions about changes that affect the Business Case without board approval, or that cost increases alone justify immediate rejection, when in fact PRINCE2 mandates a formal impact assessment and escalation process.

How to eliminate wrong answers

Option A is wrong because implementing the change immediately bypasses the required change control process and ignores the need for Project Board approval, risking unauthorized scope creep and loss of control. Option B is wrong because updating the Business Case without approval violates the PRINCE2 principle of 'continued business justification' and the delegated authority of the Project Board to approve changes that affect the business case. Option C is wrong because rejecting the change solely due to increased costs ignores the potential net benefit increase; PRINCE2 requires a balanced assessment of costs and benefits, not a blanket rejection.

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