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CBAP · Question #87

What is the purpose of the business case?

The correct answer is A. The business case helps the organization determine if they can justify the investment for the. The business case exists to justify whether the expected benefits of a solution outweigh its costs and risks, enabling the organization to make an informed investment decision.

Strategy Analysis

Question

What is the purpose of the business case?

Options

  • AThe business case helps the organization determine if they can justify the investment for the
  • BThe business case helps the organization determine the duration and cost of the solution.
  • CThe business case helps the organization determine the cost of the solution.
  • DThe business case helps the organization determine if the solution is feasible.

How the community answered

(40 responses)
  • A
    75% (30)
  • B
    15% (6)
  • C
    3% (1)
  • D
    8% (3)

Why each option

The business case exists to justify whether the expected benefits of a solution outweigh its costs and risks, enabling the organization to make an informed investment decision.

AThe business case helps the organization determine if they can justify the investment for theCorrect

The business case is a formal document that presents the rationale for undertaking a project by comparing expected costs, benefits, risks, and strategic alignment. Its primary purpose is investment justification - helping decision-makers determine whether committing resources to the solution is warranted. It is not merely a cost estimate or feasibility check, but a comprehensive argument for or against proceeding.

BThe business case helps the organization determine the duration and cost of the solution.

Determining duration and cost is a component of project planning, not the primary purpose of the business case, which focuses on value and investment justification.

CThe business case helps the organization determine the cost of the solution.

Identifying only the cost of the solution is too narrow - the business case must weigh costs against benefits and strategic value to be meaningful.

DThe business case helps the organization determine if the solution is feasible.

Feasibility is one element analyzed within a business case, but it is a sub-component of the broader investment justification purpose.

Concept tested: Purpose and scope of the business case document

Source: https://www.pmi.org/learning/library/business-analysis-practitioners-guide-9466

Topics

#business case purpose#investment justification#strategy analysis#feasibility

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