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PRINCE2 7 Found. · PeopleCert · Business Case practice · Bank updated 2026-07-03

PRINCE2 7 Found. practice questions: Business Case practice

5 free questions from 14 on this area · answer and explanation for each · no sign-up

These 5 questions come from the Business Case practice section of our PRINCE2 7 Found. bank (14 questions on this area, which carries 9% of the real exam). Every question is original, with the correct answer explained and linked to the source it is drawn from.

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1/5 · Business Case practice · easy
Which two management products does the Business Case practice introduce for use throughout a PRINCE2 7 project?
AThe business case and the risk management approach.
BThe business case and the quality management approach.
CThe business case and the benefits management approach.
DThe benefits management approach and the communication management approach.
Show answer & explanation
C is correct. The Business Case practice defines two management products: the business case itself, which captures the justification for the project, and the benefits management approach, which defines how and when benefits will be measured. The other products listed belong to different practices.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Business Case practice
2/5 · Business Case practice
What is the primary purpose of the benefits management approach in PRINCE2 7?
ATo capture the roles and responsibilities of the project management team for approving changes to baselined products.
BTo describe the reporting arrangements and frequency of highlight reports sent to the project board.
CTo define how and when a measurement of the project's expected benefits can be made, and to assign responsibility for carrying out benefits reviews.
DTo record the detailed budget and cost tolerances allocated to each management stage of the project.
Show answer & explanation
C is correct. The benefits management approach sets out how and when the benefits described in the business case will be measured, and who is accountable for measuring them, often extending beyond project closure. It is distinct from progress reporting, stage budgeting, and change control arrangements.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Business Case practice
3/5 · Business Case practice · hard
During initiation of a PRINCE2 7 project, the business case documents three business options: continuing with the current manual process, making a low-cost upgrade to existing software, and commissioning an entirely new system. What is this comparison of options primarily intended to help the project board judge?
AWhich option will produce the shortest project schedule, regardless of the overall value for money it offers.
BWhich option allocates the largest contingency budget within the risk register.
CWhich option requires the fewest quality criteria to be defined in the quality management approach.
DWhether the recommended option offers the best balance of cost, benefit and risk to justify continued investment in the project.
Show answer & explanation
D is correct. PRINCE2 7 expects the business case to set out realistic business options (typically including 'do nothing') so the project board can judge which represents the best value for money — the optimum balance of cost, benefit and risk — before authorizing continued investment. Options are not compared solely on quality criteria, schedule, or contingency size.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Business Case practice
4/5 · Business Case practice
In PRINCE2 7, at what point in a project's lifecycle is an outline business case typically first developed?
ADuring the final management stage, to support the decision to close the project.
BOnly after the project board has already approved a detailed project plan covering the whole project.
CDuring the pre-project activities, to support the decision to authorize initiation of the project.
DDuring the closing process, once all the project's benefits have already been realized.
Show answer & explanation
C is correct. PRINCE2 7 describes the business case as evolving over the project: an outline version is produced before initiation to justify starting the project, then refined into a detailed business case during initiation for the project board's authorization to proceed, and subsequently updated at each key decision point.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Business Case practice
5/5 · Business Case practice
A team member claims that if a project delivers all its specialist products on time, within budget, and to the agreed quality criteria, its Business Case is automatically proven to be justified. Which response best reflects PRINCE2 7 guidance on the Business Case practice?
AJustification depends on the intended benefits being realized through the outcomes that follow from adopting the outputs, which is separate from delivering the outputs to time, cost and quality
BJustification is decided solely by whether the Project Board approves each End Stage Report
CJustification is established retrospectively, once the end-of-project lessons report has been produced and approved
DJustification is guaranteed as long as the project stays within the cost and time tolerances agreed for every management stage
Show answer & explanation
A is correct. A common misconception is equating successful delivery of outputs with a justified investment. PRINCE2 7's Business Case practice is explicit that outputs enable outcomes, and it is the benefits derived from those outcomes — assessed against costs, timescale and risk — that determine ongoing and ultimate justification, not simply hitting delivery targets.
↗ the official PRINCE2 7 Foundation syllabus (PeopleCert, 2023) — Business Case practice
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Other PRINCE2 7 Found. areas

The same kind of free sample for every other section of the PRINCE2 7 Found. bank:

Key concepts of projects and PRINCE27 qThe PRINCE2 principles13 qPeople in successful projects17 qOrganizing practice14 qPlans practice12 qQuality practice13 qRisk practice13 qIssues practice13 qProgress practice11 qThe PRINCE2 processes14 q

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