Business Case Writing Business Case Writing 5

Question 1

Which writing technique best improves the clarity of a business case for non-financial stakeholders?

Accepted Answer

Using plain language, visuals, and summary tables to translate complex data

Answer

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?

Accepted Answer

A risk is a potential future event; an issue is a problem that has already occurred

Answer

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?

Accepted Answer

The value of the next best alternative foregone by choosing this investment

Answer

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?

Accepted Answer

A concise executive summary with supporting appendices available on request

Answer

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?

Accepted Answer

The total cost including acquisition, operation, maintenance, and disposal over the asset's life

Answer

Whole-life costing captures all costs over the full lifetime of an asset or solution, preventing underestimation by focusing only on upfront costs.

Business Case Writing Practice Test