CAPM Business Analysis Frameworks Practice Question
Which THREE elements are typically included in a project business case?
⚠ Common exam trap
CAPM often tests the boundary between the business case and adjacent initiation documents (charter, stakeholder register), so candidates include artifacts that are inputs to or outputs of the business case rather than its actual components.
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
✓
Risk assessment
A business case typically includes a risk assessment (A), because decision-makers need to understand the uncertainties, threats, and potential negative outcomes that could affect the expected value of the proposed investment. It also includes an alternatives analysis (C), which documents the options considered (e.g., build vs. buy vs. do nothing) and justifies why the recommended solution was selected over the others. A cost-benefit analysis (E) is also a core element, quantifying expected costs, benefits, ROI, NPV, or payback period to demonstrate the financial viability of the initiative. The stakeholder register (B) is a project stakeholder management artifact produced during project initiation or planning, not a component of the business case itself. The project charter (D) is a separate authorization document that formally initiates the project and is created after, and often based on, the approved business case.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Risk assessment
Why this is correct
A business case documents the risk assessment, identifying uncertainties and their potential effect on benefits, costs and schedule. This satisfies the stem's requirement for a typical element, since decision-makers need this analysis to judge whether the expected value justifies proceeding with the proposed project.
- ✗
Stakeholder register
Why it's wrong here
The stakeholder register records identified individuals and their interest, influence and engagement approach; it is an independent project artefact, not an input to the business case. It is tempting because stakeholders validate benefits, yet the business case documents justification, options and cost-benefit analysis before such detailed registers are compiled.
- ✓
Alternatives analysis
Why this is correct
Alternatives analysis records the options considered and why the recommended approach was selected over them. This satisfies the stem's requirement for a typical business case element, demonstrating that decision-makers evaluated viable choices rather than defaulting to a single predetermined solution.
- ✗
Project charter
Why it's wrong here
The project charter authorises the project and is produced after the business case is approved; it cannot be an element within the case that justifies it. It is tempting because both documents share sponsor and objective details, but the charter formally empowers the project manager, whereas the business case only recommends the investment.
- ✓
Cost-benefit analysis
Why this is correct
Cost-benefit analysis compares projected costs against expected benefits, expressing the investment's financial justification. This satisfies the stem's requirement for a typical business case element, providing the quantitative comparison that supports the go or no-go recommendation for the proposed project.
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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 PMI exam blueprint
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.