PRINCE2F PRINCE2 Practices Practice Question
Which THREE of the following are typical components of a Business Case?
⚠ Common exam trap
PRINCE2F often tests the distinction between the Business Case and the Project Initiation Documentation (PID), causing candidates to incorrectly select PID as a component of the Business Case.
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
✓
Major risks
A Business Case typically includes Major risks (A), because it must document the significant uncertainties and threats that could affect the viability of the investment, along with how they will be managed. Investment appraisal (C) is a core component, as the Business Case must justify the investment using techniques such as cost-benefit analysis, ROI, payback period, or NPV to compare options. Expected benefits (D) are also essential, since the Business Case must state the measurable business benefits and outcomes that justify undertaking the project. Option B (Project Initiation Documentation) is not a component of a Business Case; the PID is a separate PRINCE2 management product that references the Business Case. Option E (Project management team roles) belongs to the project's organization and governance structure, not to the content of the Business Case itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Major risks
Why this is correct
Major risks form a standard Business Case component, capturing the uncertainties that could undermine the justification. PRINCE2 expects the Business Case to balance benefits, costs, risks and timescales, so risk exposure is assessed alongside viability.
- ✗
Project Initiation Documentation
Why it's wrong here
The Project Initiation Documentation is the container that houses the Business Case as one of its baselines, not a component within it. It is tempting because the two documents are produced together at initiation. It would be correct when listing the PID's constituent baselines, which include the Business Case.
- ✓
Investment appraisal
Why this is correct
Investment appraisal supplies the quantified costs, benefits, risks and timescales that justify continued investment, satisfying the Business Case's requirement to demonstrate value for money. It provides the financial evidence supporting the business justification, which is a typical Business Case component alongside benefits and risks.
- ✓
Expected benefits
Why this is correct
Expected benefits form a core part of the Business Case, quantifying the value the project should deliver so the Business Case can justify continued investment. They sit alongside costs, risks and timescales, satisfying the requirement to identify the measurable gains used to judge whether the project remains desirable.
- ✗
Project management team roles
Why it's wrong here
Team roles describe delivery responsibilities and reporting lines, not the Business Case's justification content. It is tempting because the Business Case names who owns and maintains it, but the roles themselves sit in the project organisation structure. It would be correct when defining the project management team structure in the PID.
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Same concept, more angles
8 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which of the following is NOT a component of the Business Case?
easy- A.Expected benefits
- ✓ B.Project Plan
- C.Investment appraisal
- D.Major risks
Why B: The Business Case components include reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Project Plan is a separate management product.
Variation 2. Which of the following is NOT a component of the Business Case?
medium- A.Expected benefits
- ✓ B.Risk Register
- C.Investment appraisal
- D.Major risks
Why B: The Business Case in PRINCE2 is a document that justifies the project's initiation and continued viability. It contains components such as Expected Benefits, Investment Appraisal, and Major Risks. The Risk Register is a separate management product used to record and track identified risks, not a component of the Business Case itself.
Variation 3. Which of the following is NOT a component of the Business Case?
medium- A.Expected benefits
- B.Major risks
- ✓ C.Product description
- D.Investment appraisal
Why C: The Business Case in PRINCE2 documents the reasons, benefits, costs, risks, and investment appraisal justifying the project, but it does not contain the Product Description — that belongs to the product-based planning technique and describes the purpose, composition, derivation, format, and quality criteria of a product. Product Descriptions are separate artifacts referenced by the plan, not components of the Business Case.
Variation 4. Which of the following is NOT a component of the Business Case?
easy- A.Investment appraisal
- ✓ B.Risk Register
- C.Major risks
- D.Expected benefits
Why B: The Business Case includes reasons, options, benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Risk Register is separate.
Variation 5. Which of the following is NOT a component of the Business Case?
medium- A.Investment appraisal
- B.Major risks
- C.Expected benefits
- ✓ D.Risk Register
Why D: The Business Case includes reasons, benefits, dis-benefits, costs, timescale, risks, etc. The Risk Register is a separate document.
Variation 6. Which of the following is NOT a component of the Business Case?
easy- ✓ A.Quality Register
- B.Expected benefits
- C.Dis-benefits
- D.Major risks
Why A: The Business Case includes: reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Quality Register is a separate document used for tracking quality activities.
Variation 7. Which of the following is NOT a component of the Business Case?
medium- A.Major risks
- B.Investment appraisal
- C.Expected benefits
- ✓ D.Project Plan
Why D: The Business Case in PRINCE2 includes reasons, options, benefits, dis-benefits, costs, timescale, investment appraisal, and major risks. The Project Plan is not a component of the Business Case; it is a separate management product that describes how and when the project's objectives are to be achieved.
Variation 8. Which THREE of the following are components of the Business Case?
medium- ✓ A.Major risks
- ✓ B.Expected benefits
- C.Project approach
- ✓ D.Investment appraisal
- E.Benefits review plan
Why A: The Business Case is the PRINCE2 document that establishes whether the project is desirable, viable, and achievable, and it must contain Major risks (A), which record the significant uncertainties that could affect the justification for the project, and Expected benefits (B), which state the measurable improvements the project is intended to deliver. It must also include Investment appraisal (D), the comparison of costs against benefits (e.g., ROI, payback, NPV) that justifies the investment. Project approach (C) belongs to the Project Brief/Project Initiation Documentation's project definition content rather than being a component of the Business Case, and the Benefits review plan (E) is a separate PRINCE2 product that defines how and when benefits will be measured and reviewed after the project.
JA
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.