Business Case Writing Business Case Writing 5 — Questions and Answers
Question 1: Which writing technique best improves the clarity of a business case for non-financial stakeholders?
- Including all raw financial models in the main body
- Using plain language, visuals, and summary tables to translate complex data (Correct answer)
- Limiting the document to financial professionals only
- Avoiding any mention of risk to prevent confusion
Correct answer: Using plain language, visuals, and summary tables to translate complex data
Plain language, charts, and summary tables make financial and strategic content accessible to stakeholders with diverse backgrounds.
Question 2: What is the key difference between a 'risk' and an 'issue' in a business case context?
- Risks are financial; issues are operational
- A risk is a potential future event; an issue is a problem that has already occurred (Correct answer)
- Issues require board approval; risks do not
- They are the same and can be used interchangeably
Correct answer: A risk is a potential future event; an issue is a problem that has already occurred
Risks are uncertain future events that may affect the project, while issues are current problems requiring immediate attention.
Question 3: In a business case, what does 'opportunity cost' refer to?
- The cost of market research to identify the opportunity
- The value of the next best alternative foregone by choosing this investment (Correct answer)
- The penalty for missing the project launch window
- The cost of external consultants hired to write the case
Correct answer: The value of the next best alternative foregone by choosing this investment
Opportunity cost represents the potential benefit lost by allocating resources to this project instead of the next best alternative use.
Question 4: Which format is typically most appropriate for a business case presented to a board of directors?
- A 50-page technical specification document
- A concise executive summary with supporting appendices available on request (Correct answer)
- An informal email outlining the main idea
- A spreadsheet with financial models only
Correct answer: A concise executive summary with supporting appendices available on request
Boards need a concise, decision-focused document; detailed supporting material is placed in appendices for those who want deeper review.
Question 5: What is 'whole-life costing' (or total cost of ownership) in a business case?
- The initial capital expenditure of the project
- The total cost including acquisition, operation, maintenance, and disposal over the asset's life (Correct answer)
- The annual operating budget for the first year only
- The cost per employee affected by the change
Correct answer: The total cost including acquisition, operation, maintenance, and disposal over the asset's life
Whole-life costing captures all costs over the full lifetime of an asset or solution, preventing underestimation by focusing only on upfront costs.
Question 6: A business case's 'strategic alignment' section should demonstrate that the proposed investment:
- Has the lowest possible cost compared to alternatives
- Directly supports the organization's stated goals, priorities, or mission (Correct answer)
- Was requested by a senior executive
- Will be completed before the fiscal year ends
Correct answer: Directly supports the organization's stated goals, priorities, or mission
Strategic alignment shows that the investment advances the organization's objectives, increasing the likelihood of approval and long-term support.
Question 7: When a business case is updated after initial approval due to changed circumstances, this is known as:
- A post-implementation review
- A revised or refreshed business case (Correct answer)
- A project closure report
- A lessons learned document
Correct answer: A revised or refreshed business case
A revised business case is resubmitted when significant changes in scope, costs, or benefits require re-approval from decision-makers.
Business Case Writing Business Case Writing 5
Which writing technique best improves the clarity of a business case for non-financial stakeholders?