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CAPM Business Analysis Frameworks Practice Question

Exhibit

Refer to the exhibit.
```
Business Case Summary
- Problem: High operational costs
- Proposed Solution: Automate manual processes
- Estimated Cost: $2M
- Expected Benefits: $3M annual savings
- Timeframe: 18 months
- Risks: Implementation complexity, staff resistance
```

Refer to the exhibit. Which critical element is missing from this business case?

⚠ Common exam trap

PMI often tests the misconception that a business case is just a high-level summary, but PMI requires it to include alternatives considered to demonstrate objective decision-making.

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

✓

Alternatives considered

The business case is missing a comparison of alternatives considered. A business case must justify why the selected approach is the best option, which requires evaluating at least one alternative (e.g., build vs. buy, different technical solutions). Without this, stakeholders cannot assess whether the recommended solution is optimal or cost-effective.

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 sponsor
Why it's wrong here
Sponsor is not typically part of business case summary; it may appear elsewhere.
✗
Detailed schedule
Why it's wrong here
Timeframe is given; detailed schedule is not expected in a summary.
✓
Alternatives considered
Why this is correct
Alternatives analysis is essential to demonstrate that other options were evaluated.
✗
Risk mitigation plan
Why it's wrong here
Risks are listed, but mitigation can be part of the full business case.

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CAPM Business Analysis Frameworks Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question