Business Case Writing Business Case Writing MCQ 4 — Questions and Answers
Question 1: Which stakeholder analysis technique maps individuals by their level of influence and interest in a project?
- SWOT analysis
- Power/Interest grid (Correct answer)
- RACI matrix
- Ishikawa diagram
Correct answer: Power/Interest grid
A Power/Interest grid categorizes stakeholders into four quadrants to guide engagement and communication strategies.
Question 2: A business case that uses only the most favorable revenue projection without acknowledging uncertainty is an example of:
- Conservative financial modeling
- Optimism bias (Correct answer)
- Scenario planning
- Monte Carlo simulation
Correct answer: Optimism bias
Optimism bias is the tendency to overestimate benefits and underestimate costs, which undermines business case credibility.
Question 3: Which of the following is a non-financial benefit that should still be quantified where possible in a business case?
- Equipment depreciation
- Improved customer satisfaction scores (Correct answer)
- Software licensing fees
- Staff overtime costs
Correct answer: Improved customer satisfaction scores
Non-financial benefits like NPS or satisfaction scores can often be tied to revenue or cost outcomes to strengthen the case.
Question 4: The 'critical path' referenced in a business case implementation plan identifies:
- The most expensive project activities
- The sequence of tasks that determines the minimum project duration (Correct answer)
- Risks with the highest likelihood of occurring
- Stakeholders who must be consulted before approval
Correct answer: The sequence of tasks that determines the minimum project duration
The critical path is the longest chain of dependent tasks; any delay on it directly delays the project end date.
Question 5: When a business case is required to comply with public sector investment guidelines (e.g., HM Treasury Green Book), the five-case model includes all of the following EXCEPT:
- Strategic case
- Economic case
- Marketing case (Correct answer)
- Financial case
Correct answer: Marketing case
The Five Case Model covers strategic, economic, commercial, financial, and management cases — there is no 'marketing case'.
Question 6: What is the purpose of including a 'lessons learned' reference from past projects in a business case?
- To lengthen the document and appear thorough
- To demonstrate organizational learning and improve estimate credibility (Correct answer)
- To assign blame for previous project failures
- To replace the need for a risk register
Correct answer: To demonstrate organizational learning and improve estimate credibility
Citing lessons learned shows that past mistakes have been accounted for, which strengthens confidence in the current plan's realism.
Question 7: Which of the following best describes a 'logical framework' (logframe) used in business case development?
- A Gantt chart showing project milestones
- A matrix linking inputs, activities, outputs, outcomes, and impact (Correct answer)
- A financial model projecting five-year cash flows
- A vendor scoring sheet for procurement decisions
Correct answer: A matrix linking inputs, activities, outputs, outcomes, and impact
A logframe is a structured matrix that maps the causal chain from resources and activities through to broader goals and measurable indicators.
Business Case Writing Business Case Writing MCQ 4
Which stakeholder analysis technique maps individuals by their level of influence and interest in a project?