What Is Included in a Business Case?
Which TWO of the following are typically included in a business case? (Choose two.)
Quick Answer
The answer is alignment to strategic objectives and cost-benefit analysis. A business case must justify a project’s existence by quantifying its financial viability through a cost-benefit analysis, which compares expected benefits against costs to demonstrate net value. It also must explicitly link the project to the organization’s strategic objectives, ensuring the initiative supports broader business goals and secures executive sponsorship. On the PMP exam, this concept tests your understanding of the business case as the gatekeeper for project initiation—common traps include confusing it with the project charter or assuming market demand alone suffices. Remember the mnemonic “ABC”: Alignment, Benefits, and Cost—three pillars that prove a project is worth pursuing.
⚠ Common exam trap
Many exam-takers confuse the business case with the project charter or other planning documents, mistakenly thinking that detailed execution artifacts like the risk register or schedule are included in the business case, when in fact the business case is a high-level justification document created before the project is formally authorized.
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
✓
Cost-benefit analysis
The business case is a foundational document used to justify the initiation of a project or investment. It must demonstrate that the project is worthwhile, which is why a cost-benefit analysis (Option B) is a core component, quantifying the financial viability. Additionally, the business case must show how the project aligns with the organization's strategic objectives (Option C) to ensure it supports the broader business goals and receives executive sponsorship.
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 register
Why it's wrong here
Risk register is created during risk management planning.
- ✓
Cost-benefit analysis
Why this is correct
Cost-benefit analysis is a key component of a business case.
- ✓
Alignment to strategic objectives
Why this is correct
Strategic alignment is a core part of the business case.
- ✗
Detailed project schedule
Why it's wrong here
The schedule is developed during planning, not in the business case.
- ✗
Communication plan
Why it's wrong here
The communication plan is part of the project management plan.
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Same concept, more angles
1 more way this is tested on PMP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company is implementing a new customer relationship management (CRM) system. The project manager wants to ensure that the project delivers value aligned with the organization's strategic goals. Which document should the project manager reference to confirm the alignment?
medium- A.Project management plan
- B.Scope statement
- ✓ C.Business case
- D.Project charter
Why C: The business case documents the justification for the project, including alignment with organizational strategy, expected benefits, and ROI. For a CRM implementation, the business case would confirm that the system supports strategic goals like improving customer retention or sales efficiency, making it the correct reference for value alignment.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP 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 PMP exam.