Business Case Writing Business Case Writing MCQ 3 — Questions and Answers
Question 1: What does a 'benefits realization plan' in a business case describe?
- The total budget allocated to the project
- How and when expected benefits will be measured and confirmed (Correct answer)
- The list of project deliverables and milestones
- The risk mitigation strategies for the project
Correct answer: How and when expected benefits will be measured and confirmed
A benefits realization plan defines metrics, timelines, and accountability for confirming that stated benefits are actually achieved.
Question 2: Which cost type represents ongoing expenses after a project is implemented, such as maintenance and licensing?
- Capital expenditure (CapEx)
- Sunk cost
- Opportunity cost
- Operating expenditure (OpEx) (Correct answer)
Correct answer: Operating expenditure (OpEx)
OpEx covers recurring costs required to run a solution, which must be included in total cost of ownership calculations.
Question 3: When writing assumptions in a business case, they should be:
- Hidden within financial tables to save space
- Explicitly stated, numbered, and justified (Correct answer)
- Kept vague to allow flexibility later
- Limited to one per financial projection
Correct answer: Explicitly stated, numbered, and justified
Explicit, numbered assumptions allow reviewers to challenge, validate, or update them as conditions change.
Question 4: A business case for an IT infrastructure upgrade should include which of the following to justify the investment?
- Only qualitative benefits like improved morale
- Total cost of ownership (TCO) and quantified performance improvements (Correct answer)
- Vendor marketing materials as supporting evidence
- A single worst-case financial scenario
Correct answer: Total cost of ownership (TCO) and quantified performance improvements
TCO paired with measurable performance gains (uptime, speed, capacity) provides the financial rigor required for infrastructure approvals.
Question 5: Which element helps stakeholders understand why a decision must be made now rather than later?
- Project timeline Gantt chart
- Urgency or 'compelling event' statement (Correct answer)
- Vendor comparison matrix
- Technical architecture diagram
Correct answer: Urgency or 'compelling event' statement
A compelling event or urgency statement explains market conditions, deadlines, or penalties that make delay costly.
Question 6: In a multi-option business case, options should be evaluated against:
- Only their cost, to find the cheapest solution
- A consistent set of criteria aligned to strategic objectives (Correct answer)
- The personal preferences of the project sponsor
- The most recent industry trend reports
Correct answer: A consistent set of criteria aligned to strategic objectives
Using consistent evaluation criteria tied to strategic goals ensures a fair, defensible comparison across all options.
Question 7: What is the role of an 'investment logic map' in business case development?
- To chart the project's Gantt schedule
- To visually link the problem, intervention, and expected outcomes (Correct answer)
- To list approved vendors and their pricing
- To document the governance approval chain
Correct answer: To visually link the problem, intervention, and expected outcomes
An investment logic map provides a one-page visual that connects the problem statement to the proposed solution and its anticipated benefits.
Business Case Writing Business Case Writing MCQ 3
What does a 'benefits realization plan' in a business case describe?