PRINCE2F Business Case and Organizing Practice Question
This PRINCE2F practice question tests your understanding of business case and organizing. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Request an extraordinary meeting of the project board to discuss the revised business case
The correct answer is A because PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Request an extraordinary meeting of the project board to discuss the revised business case
Why this is correct
Correct: escalate immediately for decision.
Related concept
Read the scenario before looking for a memorised answer.
✗
Update the business case with the new figures and continue with the project
Why it's wrong here
The business case must be approved by the board; unauthorized changes are not allowed.
✗
Reduce project scope to bring costs back in line with the original business case
Why it's wrong here
Scope changes require board approval.
✗
Wait for the next scheduled board meeting to present the changes
Why it's wrong here
Delaying could lead to wasted effort; immediate escalation is needed.
Common exam traps
Common exam trap: answer the scenario, not the keyword
PeopleCert often tests the misconception that the project manager can autonomously adjust the business case or scope to fix issues, when in fact PRINCE2 mandates escalation to the project board for any significant deviation from the approved plan.
Detailed technical explanation
How to think about this question
In PRINCE2, the business case is a living document that must be reviewed at key decision points, especially when the project's viability is threatened. The project manager's role is to identify and escalate exceptions (e.g., cost overruns, benefit reductions) to the project board, which holds authority to approve revised business cases or terminate the project. The 'exception plan' mechanism is designed for such scenarios, where the board can decide to continue, amend, or stop the project based on updated forecasts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Business Case and Organizing — This question tests Business Case and Organizing — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Request an extraordinary meeting of the project board to discuss the revised business case — The correct answer is A because PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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