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820-427 · Question #23

Your company is launching a new business and leaders are unsure if government regulations will limit growth. You are planning to discuss the business case with a Finance Director. What are two…

The correct answer is A. Mitigating or limiting the impact of risks D. Flexibility to change service level specifications in a contract with clearly identified costs for. When government regulations pose a risk to a new business, a Finance Director needs to understand how that risk can be mitigated (A) and how the solution offers contractual flexibility with clear cost visibility (D) - both directly address the financial uncertainty created by…

Value Proposition Development

Question

Your company is launching a new business and leaders are unsure if government regulations will limit growth. You are planning to discuss the business case with a Finance Director. What are two elements of value that you should focus on? (Choose two.)

Options

  • AMitigating or limiting the impact of risks
  • BSteady costs with three good options that Finance can use for charging different departments
  • CWhether purchasing the solution in pieces will make it easier to recruit highly creative software
  • DFlexibility to change service level specifications in a contract with clearly identified costs for
  • EWhether leasing the solution is a better way to recruit for the future

How the community answered

(22 responses)
  • A
    77% (17)
  • B
    5% (1)
  • C
    14% (3)
  • E
    5% (1)

Explanation

When government regulations pose a risk to a new business, a Finance Director needs to understand how that risk can be mitigated (A) and how the solution offers contractual flexibility with clear cost visibility (D) - both directly address the financial uncertainty created by regulatory exposure.

Why A and D are correct:

  • (A) Risk mitigation is a core financial concern; showing you've identified regulatory risks and have plans to limit their impact demonstrates financial prudence and protects ROI projections.
  • (D) Flexible service level specifications mean the business can scale up or down as regulations evolve, while clearly identified costs allow Finance to model different regulatory scenarios - exactly what's needed under uncertainty.

Why the distractors are wrong:

  • (B) Stable cost structures and internal chargebacks are operational/accounting concerns, not strategic value in a regulatory risk conversation.
  • (C) Purchasing strategy linked to recruiting creative software talent is irrelevant to a Finance Director's regulatory concerns.
  • (E) Leasing as a recruitment strategy conflates procurement method with talent acquisition - not a financial value element in this context.

Memory tip: Think "Risk + Flexibility" - when regulations are uncertain, Finance cares about protecting against downside (A) and keeping options open (D). Any answer about recruiting talent or internal cost allocation is a distractor designed to test whether you stay focused on the regulatory uncertainty context.

Topics

#risk-mitigation#business-case-development#value-elements#cost-flexibility

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