Business Case

What is the primary purpose of a project business case?

• ·         Determine whether a project should be done based upon an ROI perspective.

• ·         Define the business units and the points of contact for those involved on the project.

• ·         Authorize the initiation of a project.

• ·         All of the above

Which business function should prepare a project business case?

•          The function doing most of the work on the project.

•          A cross-functional team.

•         Finance.

• All of the above

What is needed to be able to calculate the ROI for a project business case?

•         A risk mitigation strategy for all project risks.

•         A financial estimate of all project costs and project benefits allocated by year.

•          A target payback date, target NPV value or target IRR.

• All of the above

Sequence the following steps in preparation of a business plan.

1.      Industry and market analysis

2.      Operations, marketing plan and financing

3.      Company values and Mission

4.      Risk and contingency team analysis.

5.      Business case summary

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Business case is developed in when.

1.      Considering Idea as an opportunity

2.      Considering opportunity as an idea when it has qualities which are durable, timely and attractive.

• Both are incorrect.

• Both statements are correct.

• Statement 1 is incorrect and statement 2 is correct.

• Statement 1 is correct and statement 2 is incorrect.

   

Which of the following is critical for ensuring the credibility of the business case assumptions?

• Using historical data from previous projects

• Relying on industry benchmarks

• Consulting with subject matter experts

• Including overly optimistic projections

What is the Monte Carlo simulation used for in a business case?

• Determining the project timeline

• Quantifying the impact of risk and uncertainty

• Calculating the total project cost

• Comparing different project alternatives

When conducting a cost-benefit analysis, which type of costs should be included?

• Both direct and indirect costs

• Indirect costs only

• Direct costs only

• Only fixed costs

How does sensitivity analysis help in evaluating a business case?

• It identifies the project stakeholders

• It evaluates the project team’s capabilities

• It provides a detailed project schedule

• It determines the effect of varying key assumptions on outcomes

What is the purpose of conducting a 'break-even analysis' in a business case?

• To calculate the project's total revenue

• To determine the point at which total costs equal total benefits

• To assess project risks

• To outline the project timeline