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Better Business Cases Practitioner Exam Questions and Answers

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Question 1

Answer the following questions about the content of the Commercial Case and the Financial Case for the Pittville project.

Which detail should be explained in the Commercial Case?

Options:

A.

How charges for the preferred service provider's offer have been modelled, including the resultant benefits.

B.

Capital and revenue implications of the resultant deal, including any costs falling to the organization.

C.

Net effect on the organization's charges (prices), if any.

D.

Service streams and outputs being contracted for.

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Question 2

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus on

the site of the Old Fire Station Headquarters.

Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response

that supports your decision.

The cost of the temporary accommodation on the site of the Old Fire Station Headquarters has been treated as a revenue cost within

the Financial Appraisal. This temporary accommodation is required as part of the construction of the new campus.

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

Options:

A.

No, because the Financial Appraisal should NOT contain revenue costs.

B.

No, because construction and refurbishment costs should be treated as capital costs.

C.

Yes, because all construction costs must be accounted for.

D.

Yes, because these represent a cost of developing the scheme.

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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