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Better Business Cases Practitioner Exam Questions and Answers

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Question 1

Using the Scenario, answer the following questions about scoping the proposal and preparing the Strategic Outline Case for

the Pittville project.

Decide whether the approach is appropriate for stage 1, and select the response that supports your decision.

There is a risk that the local planning authority may reject proposals for development of the Old Fire Station Headquarters site. This

will cause delays to the project.

Should this risk be recorded as an external non-systemic risk within the Strategic Outline Case?

Options:

A.

No, because risks should be identified in the Outline Business Case.

B.

No, because this is a service risk associated with the design and build phases of the project.

C.

Yes, because the local planning authority is an external organization.

D.

Yes, because changes to the Old Fire Station Headquarters site will affect the environment.

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Question 2

Which 2 observations correctly evaluate the Income?

Options:

A.

There will be a funding gap in Year 2 when the Expenditure is forecast to exceed the Income.

B.

The affordability of the scheme is NOT dependent upon the income from the sale of Pittville High School.

C.

Income from the hire of the sports facilities should NOT be shown as a separate source of income.

D.

Funding to help pay for the construction of the new campus should be shown as a separate source of income in the Revenue Budget.

E.

Local Education Authority (LEA) Funding 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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