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Better Business Cases Practitioner Exam Questions and Answers

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Question 1

Pittville University insist that the business scope of the Pittville project should be based on the

development of a new campus on the site of the Old Fire Station Headquarters.

Is this an appropriate application of the Five Case Model for this project?

Options:

A.

No, because Pittville University should NOT be involved in the development of the Strategic Case.

B.

No, because the business scope should determine the affected business areas, functionality and organization.

C.

Yes, because the Old Fire Station Headquarters site has good access from most parts of Pittville.

D.

Yes, because the business scope of the Pittville project should be based on a short list of options.

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Question 2

Using the Scenario and the extract below from the Revenue Budget for the Pittville project, answer the following

questions. (Note. The figures entered are correct).

Which 2 observations correctly evaluate the Expenditure?

Options:

A.

The cost of building the new campus should be included in this table.

B.

Staffing costs should be moved to the Economic Appraisal.

C.

To be useful this table should cover the lifetime of the asset.

D.

Equipment costs should be moved to the capital costs.

E.

The cost of finance should be moved to the Economic Appraisal.

Question 3

Two of the options in the OBC have been revised, as shown in the table above.

Should Option B be ranked as the preferred option?

Options:

A.

No, because the benefits are greater for Option A.

B.

No, because the public sector test discount rate has been applied.

C.

Yes, because option B has positive liquidity.

D.

Yes, because Option B has the higher NPSV.

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