PRINCE2F Business Case and Organizing Practice Question
During a project, the cost-benefit ratio becomes unfavorable. What is the first action the project manager should take?
⚠ Common 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.
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
✓
Request a formal review of the Business Case by the project board
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.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Update the Business Case without informing the board
Why it's wrong here
The board must be informed and approve changes.
- ✗
Reduce project scope to cut costs
Why it's wrong here
Scope changes need board approval.
- ✗
Stop the project immediately
Why it's wrong here
The project manager must escalate, not stop unilaterally.
- ✓
Request a formal review of the Business Case by the project board
Why this is correct
Correct: escalate for board decision.
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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.