Business Case Writing Business Case Structure and Components 1 — Questions and Answers
Question 1: Which component of a business case describes the gap between the current state and the desired future state?
- Financial summary
- Problem or opportunity statement (Correct answer)
- Risk register
- Implementation timeline
Correct answer: Problem or opportunity statement
The problem or opportunity statement defines the current situation, why it is unsatisfactory, and what outcome the organization is trying to achieve.
Question 2: The 'options analysis' section of a business case should typically include:
- Only the recommended option
- At least three options including the 'do nothing' baseline (Correct answer)
- Unlimited alternatives without evaluation
- Vendor contracts only
Correct answer: At least three options including the 'do nothing' baseline
Best practice requires presenting multiple realistic options—including do nothing—so decision-makers can see how the recommended option compares.
Question 3: A project charter differs from a business case in that the project charter:
- Contains the financial analysis
- Formally authorizes the project to begin after approval of the business case (Correct answer)
- Is written before the problem statement
- Replaces the need for stakeholder analysis
Correct answer: Formally authorizes the project to begin after approval of the business case
The business case justifies the investment, while the project charter formally authorizes the project manager to proceed with resources once the business case is approved.
Question 4: Which element of a business case ensures alignment with the organization's long-term direction?
- Financial appendix
- Strategic alignment section (Correct answer)
- Risk register
- Vendor evaluation matrix
Correct answer: Strategic alignment section
The strategic alignment section explicitly links the proposed investment to the organization's goals, mission, and strategic priorities.
Question 5: In a formally structured business case, the 'scope statement' defines:
- The project budget only
- What is included in and excluded from the initiative (Correct answer)
- Stakeholder salaries
- The vendor's responsibilities
Correct answer: What is included in and excluded from the initiative
The scope statement prevents scope creep by clearly delineating what the project will and will not address.
Question 6: Which business case section directly supports the 'go/no-go' decision by synthesizing all key findings?
- Technical appendix
- Conclusions and recommendations section (Correct answer)
- Glossary of terms
- Vendor profiles
Correct answer: Conclusions and recommendations section
The conclusions and recommendations section synthesizes the analysis and presents a clear, justified call to action for decision-makers.
Business Case Writing Business Case Structure and Components 1
Which component of a business case describes the gap between the current state and the desired future state?