PRINCE2F Business Case and Organizing Practice Question
You are the Project Manager of a project that has just completed its first delivery stage. At the End Stage Assessment, the Project Board reviews the Business Case and notes that the forecast costs have risen by 12 percent while the expected benefits remain unchanged. The Board asks what the project should do to maintain alignment with the Business Case. Which action is MOST appropriate?
⚠ Common exam trap
The trap here is treating a significant cost increase as an ordinary variance within stage tolerances rather than a trigger for reassessing the Business Case and seeking a Project Board decision.
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
✓
Review the Business Case to confirm the project remains viable and, if necessary, escalate the decision to the Project Board for a continue, change or stop decision.
The Business Case must be reviewed at each End Stage Assessment and on significant changes. A 12 percent cost increase with unchanged benefits can undermine the investment appraisal, so the Project Manager should reassess viability and escalate to the Project Board for a continue, change or stop decision, preserving the continued business justification principle.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Proceed to the next stage as planned because the business case tolerance for benefits has not been exceeded.
Why it's wrong here
Tolerances are set for benefits, but a 12 percent cost increase without a corresponding benefit increase directly affects the investment appraisal and the project's continued viability. Proceeding without review would ignore the Business Case's role in justifying continued investment. The Project Board must consider whether the project remains desirable, viable and achievable given the changed cost profile.
- ✗
Update the Business Case with the new cost forecast and continue, treating the increase as a normal variance within stage tolerances.
Why it's wrong here
Updating the Business Case is necessary, but treating a 12 percent cost rise as a routine variance and continuing without a decision is not sufficient. The change may affect the investment appraisal and the overall justification for the project, so the Project Board must evaluate whether the project should still proceed. The Business Case is a decision-support document, not just a record of variances.
- ✗
Stop the project immediately because the cost increase invalidates the original Business Case and no further work can be justified.
Why it's wrong here
Stopping the project may be a valid outcome, but it is a decision for the Project Board, not an automatic consequence. The Business Case must first be reassessed to determine whether the project remains viable despite the higher costs. Immediate termination without evaluation would bypass the governance process and could discard a project that still offers acceptable value.
- ✓
Review the Business Case to confirm the project remains viable and, if necessary, escalate the decision to the Project Board for a continue, change or stop decision.
Why this is correct
The Business Case must be reviewed at each End Stage Assessment and whenever a significant change occurs. A 12 percent cost increase with unchanged benefits may undermine the investment appraisal, so the Project Manager should reassess the Business Case and present the findings to the Project Board, which decides whether to continue, change or stop the project. This maintains the continued business justification principle.
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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
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