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
A business case is a decision-support document that justifies investment in a proposed initiative, and a cost-benefit analysis (B) is a core component because it quantifies expected costs against anticipated benefits (ROI, NPV, payback period) so stakeholders can judge financial viability. Alignment to strategic objectives (C) is also typically included because it demonstrates how the proposal supports the organization's goals and priorities, which is essential for obtaining executive approval and prioritization. By contrast, a risk register (A) is a project management artifact maintained during project execution, a detailed project schedule (D) is created in the planning phase after approval, and a communication plan (E) is part of project or program management planning — none of these are standard elements used to justify the business case itself.
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
The risk register is a living project artefact maintained during execution, not part of the initial justification document. A business case summarises high-level risks alongside costs, benefits and options analysis, but the detailed register is created later in planning.
- ✓
Cost-benefit analysis
Why this is correct
A cost-benefit analysis quantifies expected financial returns against projected costs, directly satisfying the business case's need to justify investment. It compares options and demonstrates whether the initiative delivers sufficient value to proceed, forming the core economic rationale that sponsors and governance bodies require before authorising funding and committing organisational resources.
- ✓
Alignment to strategic objectives
Why this is correct
A business case justifies investment by demonstrating how the initiative supports the organisation's strategic objectives, linking spend to measurable business benefit. This alignment satisfies the stem's requirement for typical business case content, alongside cost, risk and expected return.
- ✗
Detailed project schedule
Why it's wrong here
A business case justifies investment through costs, benefits, options and risks; the detailed schedule is produced later during project planning, once the charter is approved. It would belong in the project management plan, not the document seeking funding approval.
- ✗
Communication plan
Why it's wrong here
The communication plan describes how information will be distributed during execution, so it is created during planning after the business case is approved. A business case instead captures the problem, options analysis, costs, benefits and risks used to justify the investment.
Go deeper
Related to this question
Learn chapter
Stakeholder Engagement and Vision Alignment
Key term
Project Management Plan
A formal, approved document that defines how a project is executed, monitored, controlled, and closed, serving as the single source of truth for the project team.
Key term
Training and Development
Training and Development is the process of enhancing team members' skills, knowledge, and competencies to improve project performance and achieve career growth.
About these practice questions
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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.