PRINCE2 Business Case Components: What's Included?
Which TWO of the following are components of the Business Case?
Quick Answer
The answer is Major risks and Expected benefits. These two are components of the Business Case in PRINCE2 because the Business Case is the document that justifies the project’s viability, and it must capture both the positive value (expected benefits) and the negative uncertainties (major risks) that could affect that value. On the PRINCE2 Foundation exam, this question tests your understanding of the Business Case’s mandatory contents as defined in the PRINCE2 manual, often appearing as a “select two” item designed to trip you up with plausible distractors like the project plan or options analysis, which are separate management products. A common trap is confusing the Business Case’s components with the project plan’s details; remember that the Business Case focuses on justification, not execution. For a quick memory tip, think “B.R.M.”—Benefits, Risks, and the Management stage—since the Business Case always includes expected benefits and major risks as its core justification pair.
⚠ Common exam trap
Candidates often confuse the 'techniques' used to develop the Business Case (like options analysis) with the 'components' that actually make up the Business Case document itself.
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
✓
Expected benefits
'Expected benefits' is a core component of the Business Case in PRINCE2, quantifying the justification for the project. Option C is correct because 'Major risks' are also a required component, as the Business Case must include an assessment of the risks that could affect the project's viability.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Project Plan
Why it's wrong here
The Project Plan is a separate management product.
- ✓
Expected benefits
Why this is correct
Benefits are a key part of the Business Case justification.
- ✓
Major risks
Why this is correct
Major risks are included as part of the Business Case.
- ✗
Lessons Log
Why it's wrong here
The Lessons Log is separate from the Business Case.
- ✗
Options analysis
Why it's wrong here
Options are considered but are not a separate component; the Business Case includes the selected option's details.
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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 TWO of the following are components of the Business Case?
medium- ✓ A.Expected benefits
- B.Product descriptions
- C.Configuration item records
- ✓ D.Investment appraisal
- E.Risk register
Why A: The Business Case in PRINCE2 is the key document that justifies the project's initiation and continued viability. It must include the expected benefits (the measurable improvements from the project's outputs) and an investment appraisal (a financial evaluation like Net Present Value or Payback Period to assess the project's value). These two components are mandatory for a complete Business Case.
Variation 2. Which TWO of the following are components of the Business Case?
medium- A.Product descriptions
- B.Quality criteria
- ✓ C.Investment appraisal
- D.Acceptance criteria
- ✓ E.Expected benefits
Why C: The Business Case in PRINCE2 is developed during the Initiating a Project process and is used to justify the project's viability. It includes the investment appraisal (C) to assess the financial justification and the expected benefits (E) to define the measurable improvements the project will deliver.
Variation 3. Which TWO of the following are components of the Business Case?
medium- A.Configuration item records
- ✓ B.Expected benefits
- C.Work package descriptions
- D.Quality criteria
- ✓ E.Major risks
Why B: The Business Case in PRINCE2 is the key document that justifies the project's initiation and continued viability. It must include the expected benefits (B) to demonstrate the positive outcomes the project aims to achieve, and it must identify major risks (E) to provide a balanced view of the potential downsides and uncertainties. These two components are explicitly required by the PRINCE2 Business Case theme.
Variation 4. Which TWO of the following are components of the Business Case?
medium- A.Configuration item records
- B.Product Description
- ✓ C.Major risks
- ✓ D.Expected benefits
- E.Project Plan
Why C: The Business Case in PRINCE2 justifies the project's initiation and continued viability. It must include the expected benefits (tangible and intangible) that the project aims to deliver, as well as the major risks that could affect those benefits. Therefore, options C and D are correct components.
Variation 5. Which TWO of the following are components of the Business Case?
easy- A.Project Plan
- ✓ B.Expected benefits
- C.Product Breakdown Structure
- D.Quality Register
- ✓ E.Major risks
Why B: The Business Case includes expected benefits, costs, timescales, major risks, etc. Options, investment appraisal, and dis-benefits are also components.
Variation 6. Which TWO of the following are components of the Business Case?
medium- ✓ A.Expected benefits
- B.Configuration item records
- ✓ C.Major risks
- D.Team structure
- E.Product Breakdown Structure
Why A: The Business Case in PRINCE2 captures the justification for the project, including the expected benefits (tangible and intangible) that the project aims to deliver. Benefits are a core component because they define the value that the project must provide to justify the investment. Without expected benefits, the Business Case cannot demonstrate whether the project is worthwhile.
Variation 7. Which TWO of the following are components of the Business Case?
medium- ✓ A.Investment appraisal
- B.Configuration Item Records
- C.Product Description
- D.Risk Register
- ✓ E.Expected benefits
Why A: The Business Case in PRINCE2 is the key document that justifies the project's initiation and continued viability. It must include an investment appraisal to evaluate the financial viability of the project, and it must define the expected benefits that the project aims to deliver. These two components are essential for decision-making and are explicitly required by the PRINCE2 methodology.
Variation 8. Which TWO of the following are components of a Business Case?
medium- ✓ A.Major risks
- B.Project organization structure
- C.Work Breakdown Structure
- ✓ D.Expected benefits
- E.Quality criteria
Why A: A Business Case in PRINCE2 must include the justification for the project, which requires an assessment of the major risks that could affect the viability of the project. 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 cost-benefit analysis.
JA
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.