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CBAP · Question #501

A corporation is experiencing poor financial performance and needs to change many aspects of its business strategy in coder to become solvent again. A business analyst (BA) is conducting a…

The correct answer is B. The new financial performance metrics. A complete feasibility analysis for a financially distressed organization must include new financial performance metrics to measure whether the proposed changes will restore solvency.

Strategy Analysis

Question

A corporation is experiencing poor financial performance and needs to change many aspects of its business strategy in coder to become solvent again. A business analyst (BA) is conducting a feasibility analysis and analyzing resources required. The BA has identified the existing resources, the resources that need to be increased, and the required additional capabilities. What is the other dimension this analysis should indicate?

Options

  • AThe new resources to be developed
  • BThe new financial performance metrics
  • CThe enterprise readiness agreement
  • DThe timeline for instituting the change

How the community answered

(37 responses)
  • A
    8% (3)
  • B
    70% (26)
  • C
    5% (2)
  • D
    16% (6)

Why each option

A complete feasibility analysis for a financially distressed organization must include new financial performance metrics to measure whether the proposed changes will restore solvency.

AThe new resources to be developed

New resources to be developed overlap conceptually with the 'required additional capabilities' dimension already identified, making it a redundant rather than distinct dimension of the analysis.

BThe new financial performance metricsCorrect

After cataloging existing resources, resources to be increased, and additional capabilities required, the feasibility analysis must also define the new financial performance metrics that will indicate success. These metrics - such as revenue targets, cost reduction benchmarks, or liquidity ratios - provide measurable criteria for determining whether the strategic changes are achievable and sufficient to restore solvency.

CThe enterprise readiness agreement

An enterprise readiness agreement is not a recognized standard dimension of a resource or feasibility analysis framework within business analysis practice.

DThe timeline for instituting the change

A timeline is part of implementation planning rather than a distinct analytical dimension of the resource requirements analysis itself, and the question asks about what the current analysis should indicate.

Concept tested: Feasibility analysis dimensions including financial metrics

Source: https://www.iiba.org/career-resources/a-business-analysis-professionals-career-journey/babok/

Topics

#feasibility analysis#resource analysis#financial performance metrics#future state definition

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