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PRINCE2F PRINCE2 Processes Practice Question

During the Initiating a Project process, the project manager is reviewing the Business Case. Which statement best describes the purpose of this review?

⚠ Common exam trap

Many exam-takers confuse the purpose of the Initiating a Project process with the Directing a Project process, mistakenly thinking that the Business Case review is for final approval rather than for developing and confirming viability.

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

✓

To develop a detailed justification for the project and confirm it remains viable.

During the Initiating a Project process, the Business Case is reviewed to develop a detailed justification for the project and confirm it remains viable. This involves refining the outline Business Case from the Starting Up a Project process into a fully detailed document that justifies the project's continued existence based on costs, benefits, risks, and timescales. The review ensures the project is still aligned with corporate objectives and that the investment is worthwhile before proceeding to the next stage.

Answer analysis

Option-by-option breakdown

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

  • ✗

    To confirm the project's scope and high-level risks before the project mandate is issued.

    Why it's wrong here

    The mandate precedes Initiating a Project, so scope and risks cannot be confirmed before it is issued. Confirming scope is tempting because it does occur during initiation, but the Business Case review assesses viability and benefits, not mandate-stage scope definition.

  • ✗

    To authorize work packages for the first stage of the project.

    Why it's wrong here

    Authorising work packages belongs to Managing a Stage Boundary and Controlling a Stage, not the Business Case review. It is tempting because authorisation follows initiation, but the Business Case review instead validates continued viability and the justification for proceeding.

  • ✓

    To develop a detailed justification for the project and confirm it remains viable.

    Why this is correct

    Reviewing the Business Case during Initiating a Project develops the detailed justification that the outline Business Case only sketched, and confirms the project remains viable against the baseline. This satisfies the stem's requirement to establish the Business Case before the project board authorises the Project Initiation Documentation.

  • ✗

    To obtain final approval from the project board before project execution begins.

    Why it's wrong here

    Reviewing the Business Case in Initiating a Project validates the business justification and confirms benefits and costs remain viable, not to seek board authorisation. Final approval of the Project Initiation Documentation, including the Business Case, occurs at the Authorising a Project activity, where the board decides whether to commit to the project.

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