Business Case Writing Introduction to Business Case Writing 2

Question 1

Which section of a business case defines the boundaries of what the proposed initiative will and will not address?

Accepted Answer

Scope Statement

Answer

The Scope Statement explicitly defines what is included and excluded from the project, preventing scope creep.

Question 2

When presenting multiple solution options in a business case, what must each option include to allow fair comparison?

Accepted Answer

Consistent evaluation criteria applied to all options

Answer

Applying consistent evaluation criteria across all options ensures decision-makers can make an objective, apples-to-apples comparison.

Question 3

A 'do nothing' option is often included in a business case primarily to:

Accepted Answer

Provide a baseline against which alternatives are measured

Answer

The 'do nothing' option establishes a baseline, making the value of action clear by contrast.

Question 4

Which financial metric measures the time required for an investment to generate enough returns to recover its initial cost?

Accepted Answer

Payback Period

Answer

The Payback Period calculates how long it takes for cumulative benefits to equal the initial investment.

Question 5

In business case writing, 'sensitivity analysis' is used to:

Accepted Answer

Test how outcomes change when key assumptions are varied

Answer

Sensitivity analysis tests how changes in key variables (costs, timelines, demand) affect the projected outcomes, revealing how robust the case is.

Business Case Writing Practice Test