BA BA Business Case Development 2

Question 1

Which metric measures how long it takes for an investment to pay for itself through savings or revenue?

Accepted Answer

Payback period

Answer

The payback period calculates the time required for the cumulative benefits of an investment to equal its initial cost.

Question 2

Who typically approves a business case before a project proceeds?

Accepted Answer

The project sponsor or senior decision-making authority

Answer

The project sponsor or a governance body with authority over resources and strategic decisions typically reviews and approves the business case.

Question 3

What is the role of assumptions in a business case?

Accepted Answer

To document conditions believed to be true that could affect outcomes if proven false

Answer

Assumptions document conditions accepted as true for planning purposes; if they prove incorrect, they become risks that could affect the business case projections.

Question 4

A BA is preparing a business case for automating a manual invoicing process. Which benefit category does 'reduced processing time' fall under?

Accepted Answer

Tangible/quantifiable benefit

Answer

Reduced processing time is a tangible, measurable benefit because it can be quantified in hours saved and directly converted to cost savings.

Question 5

What is 'sensitivity analysis' used for in a business case?

Accepted Answer

To test how changes in key assumptions affect the projected outcomes

Answer

Sensitivity analysis tests how the business case projections change when key assumptions (like cost estimates or benefit timelines) vary, revealing how robust the case is.

(BA) Business Analyst Practice Test

(BA) Business Analyst Practice Test

BA BA Business Case Development 2