PRINCE2 7 Pract. · PeopleCert · Business Case practice · Bank updated 2026-07-03
PRINCE2 7 Pract. practice questions: Business Case practice
5 free questions from 12 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 Pract. bank (12 questions on this area, which carries 7% of the real exam). Every question is original, with the correct answer explained and linked to the source it is drawn from.
1/5 · Business Case practice
A project is in the 'Starting up a project' activity. The project manager has been asked to produce a fully detailed business case, including a comprehensive investment appraisal with confirmed benefit tolerances, before the project board decides whether to authorize initiation. Is this appropriate?
ANo, because normally only an outline business case (reasons, options, high-level costs/benefits) is needed at this point to justify the cost of initiation; the detailed business case with full investment appraisal is developed during initiating a project.
BNo, because producing a business case is solely the responsibility of corporate or programme management and the project manager should never draft it.
CYes, because PRINCE2 7 requires the fully detailed business case to be approved before a project mandate can be issued.
DYes, because the business case must always be fully detailed before any resources, including the cost of initiation, are committed.
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2/5 · Business Case practice · hard
At project closure, the project manager insists on presenting fully confirmed benefit figures to the project board, arguing that no post-project activity is needed once the project ends. The project's output, a new online booking system, has been live for only two weeks, and the projected reduction in phone-based bookings can only be reliably measured after a full seasonal cycle of usage. Evaluate the project manager's position.
ACorrect, because confirming benefits is exclusively a closing-a-project activity and cannot occur after the project has formally closed.
BIncorrect: at closure the project manager should confirm only the benefits already measurable, and hand over a benefits review plan so that corporate/programme management or the senior user can review remaining benefits, such as the seasonal booking reduction, after closure.
CCorrect, because responsibility for benefits realization transfers entirely to the Senior Supplier once the outputs are handed over to operations.
DIncorrect, because PRINCE2 7 mandates that all benefit reviews must wait exactly one full year after closure regardless of the nature of the benefit.
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3/5 · Business Case practice · easy
While developing the business case, a project team identifies that consolidating three regional warehouses into one central warehouse (the project's output) will, once operational, result in redundancies at two regional sites — a certain outcome that the affected regional managers will clearly view negatively. How should this be classified and handled within the Business Case practice?
AIt should be excluded from the business case, since PRINCE2 7 defines benefits and dis-benefits only in financial terms, and stakeholder impact is a communications matter outside the practice.
BAs a dis-benefit: a measurable outcome perceived as disadvantageous by a stakeholder, which should be recorded and weighed in the business case alongside the expected benefits.
CAs a cost only, because redundancy payments are a one-off cash outflow, and PRINCE2 7 does not recognize dis-benefits as a distinct concept.
DAs a risk, because it is an uncertain future event that may or may not occur, and it should be logged in the risk register with a probability and impact assessment.
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4/5 · Business Case practice
Midway through delivery of a data-migration project, the Project Manager learns that a third-party licensing cost has risen by 40% and that the productivity benefits originally forecast will now take an extra six months to materialise. A stage boundary is approaching. Which action best reflects PRINCE2 guidance on handling this development?
AThe Project Manager proceeds into the next stage as planned, since the Business Case was approved at initiation and does not need re-examination until project closure.
BThe Senior User alone decides whether to continue, since a delay to benefits is purely a user-side concern that does not require wider Project Board involvement.
CThe Project Manager updates the Business Case with the revised costs and forecast benefits, and the Project Board reviews it before authorising the next stage to confirm the project remains desirable, viable and achievable.
DBecause the change originates from a supplier issue rather than a user requirement, the Business Case is left unchanged and only the Supplier's cost tolerances are adjusted internally.
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C is correct. Continued business justification means the Business Case is a living document, not a one-time approval. When costs or benefit timescales shift materially, the Project Manager updates the Business Case and the Project Board formally reassesses desirability, viability and achievability before authorising further work, typically at the next stage boundary.
↗ the official PRINCE2 7 Practitioner syllabus (PeopleCert, 2023) — Business Case practice
5/5 · Business Case practice
A newly appointed Project Manager tells a colleague: "The Business Case is basically a one-off cost-benefit form that gets signed off during initiation and then filed away until the project closes." Which response most accurately corrects this understanding?
AThe Business Case must be actively maintained and re-verified against current forecasts at stage boundaries, at exceptions, and before other major decisions, not simply approved once at initiation.
BThe statement is essentially accurate; PRINCE2 recommends baselining the Business Case at initiation and revisiting it only if the project fails outright.
CThe Benefits Management Approach immediately replaces the Business Case after initiation, so no further Business Case reviews are required during delivery.
DBecause continued business justification is a principle, the Business Case can never legitimately change once initiation is complete, even if circumstances change.
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A is correct. Treating the Business Case as a filed-and-forgotten initiation artefact is a frequent misconception. PRINCE2's continued business justification principle instead requires the Business Case to be a living document, checked and updated at stage boundaries, exceptions and other key decision points so the Project Board can judge whether the project remains worthwhile.
↗ the official PRINCE2 7 Practitioner syllabus (PeopleCert, 2023) — Business Case practice
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