CAPM Business Analysis Frameworks Practice Question
A business analyst is preparing a business case for a project with intangible benefits. How should the intangible benefits be presented to support 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
✓
Provide a qualitative description with supporting evidence such as customer surveys
Intangible benefits, such as customer satisfaction or brand reputation, are best presented with qualitative descriptions supported by evidence like customer surveys. This approach provides credible justification without forcing inaccurate monetary valuations. Option A is wrong because listing without explanation fails to convey value. Option B is wrong because the cost-benefit ratio typically requires quantifiable monetary values, not intangibles. Option C is wrong because assigning a monetary value can be arbitrary and misleading.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
List intangible benefits without explanation to keep the business case concise
Why it's wrong here
They need explanation to show their value.
- ✗
Quantify intangible benefits using the cost-benefit ratio
Why it's wrong here
Cost-benefit ratio is for tangible costs and benefits.
- ✗
Assign a monetary value to each intangible benefit
Why it's wrong here
Forcing monetary values can be misleading and may not be credible.
- ✓
Provide a qualitative description with supporting evidence such as customer surveys
Why this is correct
Qualitative descriptions with evidence help justify the investment.
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