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PRINCE2F Business Case and Organizing Practice Question

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

⚠ Common 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.

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

✓

Assess the impact on the Business Case and submit a change request to the project board

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.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Implement the change immediately to realize benefits quickly

    Why it's wrong here

    Implementing immediately bypasses PRINCE2's change control, so the increased costs are committed without the Business Case being reassessed or the change approved by the appropriate authority. It is tempting because acting quickly is correct once a change has been formally approved through the change control approach.

  • ✗

    Update the Business Case and proceed without approval

    Why it's wrong here

    Updating the Business Case documents the revised costs and benefits, but proceeding without approval bypasses the change authority that must sanction any change to the baseline. It is tempting because revising the Business Case is genuinely required as part of assessing a change before a decision is taken.

  • ✗

    Reject the change because it increases costs

    Why it's wrong here

    Rejecting outright ignores that the change may still deliver value; PRINCE2 requires the change to be assessed and escalated to the change authority rather than dismissed on cost alone. It is tempting because rejecting changes that threaten the cost tolerance is correct when the Business Case no longer remains viable.

  • ✓

    Assess the impact on the Business Case and submit a change request to the project board

    Why this is correct

    Assessing the Business Case impact and submitting a change request to the project board satisfies PRINCE2's principle that changes must be evaluated against continued business justification before approval. The board, not the project manager, decides whether increased benefits outweigh increased costs.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.