What is a Business Case? Project Management in Under 5

The video tutorial explains what a business case is, comparing it to a set of scales weighing costs against benefits. It discusses the importance of financial evaluation, using tools like discounted cash flows and net present value. The tutorial also distinguishes between two types of business cases: advocacy, which promotes a project, and impartial, which presents multiple options for decision-making. Understanding the context and type of business case required is crucial for effective project evaluation.

What is the primary purpose of a business case?

• To list all project expenses

• To identify project stakeholders

• To weigh costs against benefits

• To provide a project timeline

Which financial tool is commonly used in investment appraisal?

• Cash flow statement

• Discounted cash flow

• Profit and loss statement

• Balance sheet

What is a key challenge in evaluating costs and benefits?

• Setting a project deadline

• Quantifying non-financial elements

• Identifying project risks

• Finding qualified personnel

What characterizes an advocacy business case?

• It argues for a specific project

• It is impartial and unbiased

• It focuses on regulatory compliance

• It presents multiple project options

Why is it important to know the type of business case required by an organization?

• To ensure the project is completed on time

• To avoid unnecessary project costs

• To meet legal requirements

• To make informed and effective decisions