Business Case Writing Business Case Writing MCQ 2

Question 1

Which financial metric measures the time required to recover the initial investment from projected cash flows?

Accepted Answer

Payback Period

Answer

Payback period calculates how long it takes for cumulative cash inflows to equal the upfront investment cost.

Question 2

A business case that ignores risks associated with a proposed project is considered:

Accepted Answer

Incomplete and potentially misleading

Answer

A credible business case must include a risk assessment to present a balanced and honest picture to decision-makers.

Question 3

What is the primary purpose of a sensitivity analysis in a business case?

Accepted Answer

To determine how results change when key assumptions vary

Answer

Sensitivity analysis tests how much the outcome changes when individual variables (e.g., cost, demand) are adjusted.

Question 4

Which section of a business case typically outlines who must approve the project and their authority levels?

Accepted Answer

Governance and Decision Framework

Answer

The governance section defines approval authorities, escalation paths, and decision-making roles.

Question 5

When presenting a business case to a C-suite audience, which content approach is most effective?

Accepted Answer

Lead with strategic impact and key recommendations

Answer

Executives prefer top-down structure: strategic rationale and recommendations upfront, with details available in appendices.

Business Case Writing Practice Test