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
The project sponsor is an approval and governance role, not a required element of the business case document itself. Business cases contain the rationale, costs, benefits and options analysis. It is tempting because sponsors authorise projects, but their identification sits in the charter.
- ✗
Detailed schedule
Why it's wrong here
A detailed schedule is a project management artefact, not a business case component. Business cases justify investment through costs, benefits, risks and options. It is tempting because schedules accompany approval documentation, but they belong in the project management plan, not the case itself.
- ✓
Alternatives considered
Why this is correct
Alternatives considered is a mandatory business case component because it documents the options evaluated against the recommended solution, including their costs, benefits and rejection rationale. Without it, decision-makers cannot verify that the chosen approach delivers optimal value, so the business case fails the completeness requirement tested in this scenario.
- ✗
Risk mitigation plan
Why it's wrong here
A risk mitigation plan is an execution artefact, not a business case element. Business cases present options analysis, costs and benefits to justify investment. It is tempting because risks are discussed in business cases, but mitigation planning belongs to the risk management plan.
Go deeper
Related to this question
About these practice questions
One of 451 original CAPM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.