Certified Business Analysis Professional Needs Assessment and Business Case Development 2 — Questions and Answers
Question 1: Which financial metric measures the time required for a solution's benefits to recover its initial investment?
- Net Present Value (NPV)
- Return on Investment (ROI)
- Payback Period (Correct answer)
- Internal Rate of Return (IRR)
Correct answer: Payback Period
Payback period calculates how long it takes for cumulative benefits to equal the initial investment, indicating how quickly the investment is recovered.
Question 2: What does 'SMART' stand for in the context of defining business objectives?
- Simple, Manageable, Achievable, Realistic, Timely
- Specific, Measurable, Achievable, Relevant, Time-bound (Correct answer)
- Strategic, Motivated, Agile, Reasonable, Transparent
- Scalable, Modular, Adaptable, Responsive, Testable
Correct answer: Specific, Measurable, Achievable, Relevant, Time-bound
SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound, ensuring goals are clear and evaluable.
Question 3: Which of the following is the MOST important characteristic of a well-written business case?
- It is written in technical language
- It clearly links the proposed solution to measurable business benefits (Correct answer)
- It includes detailed technical specifications
- It is as long as possible to cover all details
Correct answer: It clearly links the proposed solution to measurable business benefits
A strong business case clearly connects the proposed solution to specific, measurable business benefits that justify the investment.
Question 4: A company wants to improve customer satisfaction by 20% within one year. What type of requirement does this represent?
- Functional requirement
- Business requirement (Correct answer)
- Transition requirement
- Stakeholder requirement
Correct answer: Business requirement
A business requirement defines a high-level outcome or goal the organization wants to achieve, such as improving customer satisfaction by 20%.
Question 5: What is the purpose of an 'alternatives analysis' in a business case?
- To list all stakeholders
- To compare multiple solution options and justify the recommended approach (Correct answer)
- To document technical specifications
- To create a project schedule
Correct answer: To compare multiple solution options and justify the recommended approach
Alternatives analysis compares different solution options on criteria like cost, risk, and feasibility to justify why the recommended solution is the best choice.
Question 6: Which technique helps identify external factors that could affect the success of a proposed solution?
- Use Case Analysis
- PESTLE Analysis (Correct answer)
- User Story Mapping
- Data Flow Diagramming
Correct answer: PESTLE Analysis
PESTLE analysis examines Political, Economic, Social, Technological, Legal, and Environmental external factors that could impact the solution.
Certified Business Analysis Professional Needs Assessment and Business Case Development 2
Which financial metric measures the time required for a solution's benefits to recover its initial investment?