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Better Business Cases Practitioner Exam Questions and Answers

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Question 1

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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Question 2

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.

Question 3

The Central Government funding programme for the redevelopment of schools has been put on hold. A Review Board will decide

which programmes to continue. This funding programme covers 20% of the Pittville project costs. It is considered very likely that

the Western Area Learning Programme will be high priority due to the forecast enhanced provision of education courses for 16-18

year olds.

Should the funding profile in the Economic Case be updated?

Options:

A.

No, because the funding statement is provided in the Financial Case.

B.

No, because the Economic Case should have already quantified this funding risk.

C.

Yes, because alternative monies may be available to fund proposals that offer demonstrably better value for money.

D.

Yes, because scenario analysis should reflect the political uncertainties on which the success of the proposal depends.

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