BA BA Business Case Development 1 — Questions and Answers
Question 1: What is the primary purpose of a business case in a BA context?
- To assign project tasks to team members
- To justify the investment in a proposed solution by outlining costs, benefits, and risks (Correct answer)
- To document the technical architecture of a system
- To create a project schedule
Correct answer: To justify the investment in a proposed solution by outlining costs, benefits, and risks
A business case provides the rationale for undertaking a project by documenting expected costs, benefits, risks, and strategic alignment.
Question 2: Which section of a business case quantifies the financial return expected from an investment?
- Executive summary
- Risk assessment
- Cost-benefit analysis (Correct answer)
- Stakeholder analysis
Correct answer: Cost-benefit analysis
The cost-benefit analysis section quantifies both the costs of the initiative and the anticipated financial and non-financial benefits.
Question 3: What does NPV stand for and why is it used in business cases?
- Net Project Value — to track budget spending
- Net Present Value — to assess the current worth of future cash flows from an investment (Correct answer)
- New Process Validation — to confirm process changes
- Net Performance Variance — to measure team output
Correct answer: Net Present Value — to assess the current worth of future cash flows from an investment
Net Present Value (NPV) calculates the current value of projected future cash flows, helping decision-makers assess whether an investment is financially worthwhile.
Question 4: A business case should be aligned with which of the following?
- The personal preferences of the project manager
- The organization's strategic goals and objectives (Correct answer)
- The vendor's product roadmap
- The IT department's technology preferences
Correct answer: The organization's strategic goals and objectives
A strong business case demonstrates how the proposed initiative supports the organization's broader strategic goals and priorities.
Question 5: Which of the following is typically included in the 'options analysis' section of a business case?
- A list of all employees affected by the change
- Multiple solution alternatives with their pros, cons, costs, and benefits (Correct answer)
- The final approved solution design
- The vendor contract terms
Correct answer: Multiple solution alternatives with their pros, cons, costs, and benefits
Options analysis presents multiple approaches to solving the business problem, allowing decision-makers to compare alternatives before selecting a solution.
Question 6: What is a 'do nothing' option in a business case?
- A recommendation to cancel the project
- A baseline alternative that describes consequences of taking no action (Correct answer)
- A placeholder when no alternatives exist
- An option that delays the project start date
Correct answer: A baseline alternative that describes consequences of taking no action
The 'do nothing' option establishes a baseline by describing what will happen if the organization takes no action, helping justify the need for change.
BA BA Business Case Development 1
What is the primary purpose of a business case in a BA context?