Quick Answer
The answer is Expected benefits and Major risks. In PRINCE2, the Business Case is the key document that justifies the project’s initiation and ongoing viability, and these two components are essential because they directly address the project’s value proposition and its exposure to uncertainty. Expected benefits define the measurable, positive outcomes the project must deliver to be worthwhile, while major risks must be identified and assessed to ensure the potential rewards outweigh the threats. On the PRINCE2 Foundation exam, this question tests your understanding of the Business Case’s core structure, often appearing as a multiple-choice item where distractors might include “project plan” or “risk register”—which are separate management products. A common trap is confusing the Business Case’s components with those of other PRINCE2 documents, so remember that the Business Case is fundamentally about justification, not execution. Memory tip: think “B.R.” for Benefits and Risks—the two pillars that prove a project is worth doing.
This PRINCE2F practice question tests your understanding of prince2 practices. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO of the following are components of a Business Case?
Major risks
Risks are identified and assessed in the Business Case.
Expected benefits
Benefits are a key part of the Business Case.
Configuration item records
Why wrong: Configuration item records are part of Change.
Product descriptions
Why wrong: Product descriptions are part of Quality.
Project team structure
Why wrong: Team structure is part of Organising.
Answer choices
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 in PRINCE2 is the document that justifies the project's initiation and continued viability. Major risks are a component because they must be identified and assessed to determine if the project's potential rewards outweigh the threats. Expected benefits are also a core component, as they define the measurable improvements that the project is expected to deliver, forming the basis for the justification.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Major risks
Why this is correct
Risks are identified and assessed in the Business Case.
Related concept
Read the scenario before looking for a memorised answer.
Expected benefits
Why this is correct
Benefits are a key part of the Business Case.
Related concept
Read the scenario before looking for a memorised answer.
Configuration item records
Why it's wrong here
Configuration item records are part of Change.
Product descriptions
Why it's wrong here
Product descriptions are part of Quality.
Project team structure
Why it's wrong here
Team structure is part of Organising.
Common exam traps
PeopleCert often tests the distinction between the contents of the Business Case and the contents of the Project Plan or other management products, leading candidates to mistakenly include project team structure or product descriptions as Business Case components.
Detailed technical explanation
The Business Case is developed during the Starting Up a Project process and is refined throughout the project. It includes not only the expected benefits and major risks but also the costs, timescales, and investment appraisal (e.g., Net Present Value or Payback Period). The Business Case is formally reviewed at each stage boundary and at the end of the project to confirm continued viability against the original justification.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
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FAQ
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
The correct answer is: Major risks — A Business Case in PRINCE2 is the document that justifies the project's initiation and continued viability. Major risks are a component because they must be identified and assessed to determine if the project's potential rewards outweigh the threats. Expected benefits are also a core component, as they define the measurable improvements that the project is expected to deliver, forming the basis for the justification.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
About these practice questions
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Same concept, more angles
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 TWO of the following are components of the Business Case?
mediumWhy C: The Business Case includes expected benefits, dis-benefits, costs, timescale, and investment appraisal. Options A and E are correct.
Variation 2. Which TWO of the following are components of the Business Case?
mediumWhy C: Options A and C are correct. The Business Case includes the expected benefits and major risks. The Project Plan is a separate document. The Risk Register is also separate. The Product Status Account is used in change control.
Variation 3. Which TWO of the following are elements of the Business Case?
mediumWhy B: Expected benefits and major risks are key components of a Business Case in PRINCE2.
Last reviewed: Jun 30, 2026
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.
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