PRINCE2F Business Case and Organizing Practice Question
During a project, the Senior User reports that the expected benefits are now unlikely to be achieved because a new regulation invalidates the original business rationale. The Executive asks the Project Manager to prepare information for a decision on whether to continue. What should the Project Manager do FIRST?
⚠ Common exam trap
The trap here is jumping to closure or to an Exception Report when the real requirement is to refresh the Business Case so the board can make an informed continuation decision.
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
✓
Update the Business Case with the revised costs, risks, and forecast benefits, and present it to the Project Board for a decision.
A change in the business rationale means the Business Case must be reassessed and updated with revised costs, risks, and benefit forecasts. Presenting the updated Business Case to the Project Board allows the Executive and other board members to decide whether to continue, change, or stop the project.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Raise an Exception Report and wait for the Project Board to instruct the Project Manager on the next steps.
Why it's wrong here
An Exception Report is appropriate when tolerances are forecast to be exceeded, but here the issue is a change in the business justification rather than a tolerance breach. The Business Case must first be updated so the board has the correct information to decide.
- ✗
Request that the Senior User revise the Benefits Review Plan to reflect the new regulation.
Why it's wrong here
Updating the Benefits Review Plan changes how benefits will be measured but does not address whether the project remains justified. The board needs a revised Business Case showing the impact of the regulation on costs, risks, and forecast benefits before it can decide.
- ✓
Update the Business Case with the revised costs, risks, and forecast benefits, and present it to the Project Board for a decision.
Why this is correct
When assumptions behind the Business Case change, the Business Case must be updated with the new costs, risks, and benefit forecasts so the Project Board can decide whether the project remains viable. This is the first step before any continuation, change, or closure action is taken.
- ✗
Immediately close the project because the original business rationale is no longer valid.
Why it's wrong here
Closure is a decision for the Project Board, not the Project Manager acting alone. Even if the benefits are unlikely, the board must review an updated Business Case and consider options such as amending scope or stopping the project before premature closure is agreed.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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.