Question bank
Better Business Cases™ Foundation
41 Better Business Cases™ Foundation questions with the correct answer and a written explanation, organised across 6 exam domains.
- 41 questions
- 6 domains
- Foundation level
certilumQuestion index
Jump straight to any question. Answers and explanations are inline.
Introduction to Better Business Cases and the Five Case Model
8 questions in this domain
- Question 1Single Choice
Which case in the Five Case Model addresses the strategic context and the case for change?
- AStrategic CaseCorrect answer
- BEconomic Case
- CCommercial Case
- DFinancial Case
Why this is the answer
The Strategic Case establishes the strategic context, the case for change, and the desired outcomes.
- Question 2Multiple Select
Which two components are part of the Management Case? (Select two)
- AProject planCorrect answer
- BBenefits realisation planCorrect answer
- CCost-benefit analysis
- DProcurement strategy
Why this is the answer
The Management Case includes the project management plan and the benefits realisation plan.
- Question 3Interactive
Read the scenario below and determine which case is being described.
- AStrategic Case
- BEconomic CaseCorrect answer
- CCommercial Case
- DFinancial Case
Why this is the answer
The scenario describes an options appraisal using cost-benefit analysis to identify the best public value, which is the Economic Case.
- Question 4Single Choice
What is the primary purpose of the Five Case Model?
- ATo ensure public funds are allocated to proposals that deliver optimal value for moneyCorrect answer
- BTo ensure projects are completed on time
- CTo maximise profit for private sector partners
- DTo reduce the amount of paperwork required for approvals
Why this is the answer
The Five Case Model ensures that public funds are directed to proposals that offer the best value for money and align with strategic objectives.
- Question 5Multiple Select
Which three of the following are key principles of Better Business Cases? (Select three)
- AProportionalityCorrect answer
- BOptions thinkingCorrect answer
- CStrict sequential order of case development
- DStakeholder involvementCorrect answer
Why this is the answer
Better Business Cases promotes proportionality, options thinking, and stakeholder involvement, but the cases are developed iteratively, not strictly sequentially.
- Question 6Interactive
Review the scenario and identify which case is being addressed.
- AEconomic Case
- BFinancial CaseCorrect answer
- CCommercial Case
- DManagement Case
Why this is the answer
The scenario deals with verifying that sufficient budget exists, which is the concern of the Financial Case.
- Question 7Single Choice
What does the term 'optimism bias' refer to in the context of Better Business Cases?
- AA systematic tendency to overestimate benefits and underestimate costs and timeCorrect answer
- BThe bias towards selecting the most optimistic option in the long list
- CA method to adjust for risk by adding a contingency fund
- DThe tendency of stakeholders to be overly positive about project outcomes
Why this is the answer
Optimism bias is a recognised systematic error that must be explicitly adjusted for using national guidelines.
- Question 8Multiple Select
Which two of the following are key deliverables of the Strategic Case? (Select two)
- ACase for changeCorrect answer
- BInvestment objectiveCorrect answer
- CPreferred option
- DCommercial strategy
Why this is the answer
The Strategic Case defines the case for change and the investment objective; the preferred option is an output of the Economic Case.
The Commercial Case
7 questions in this domain
- Question 9Single Choice
Which of the following best describes the relationship between procurement strategy and route to market?
- AThey are the same concept and can be used interchangeably.
- BProcurement strategy is the high-level plan; route to market is the specific legal tendering procedure.Correct answer
- CRoute to market is the strategic choice; procurement strategy is the procedural path.
- DProcurement strategy is only relevant after the route to market is chosen.
Why this is the answer
The document states: 'Procurement strategy is the high-level plan (e.g., single supplier vs. consortium). Route to market is the specific legal tendering procedure (e.g., open, restricted).' They are distinct but related layers.
- Question 10Multiple Select
Which TWO of the following are essential factors to consider when selecting a route to market?
- AThe number of capable suppliers in the market.Correct answer
- BThe preference of the Senior Responsible Owner for speed.
- CThe complexity and risk profile of the project.Correct answer
- DThe existing contract management system of the organization.
Why this is the answer
Market analysis (number of suppliers) and complexity/risk are key factors. SRO preference is not a primary factor; contract management system belongs to the Management Case.
- Question 11Interactive
Based on the following risk allocation description, select the most appropriate payment mechanism.
- AFixed-priceCorrect answer
- BCost reimbursable
- CTarget cost with gain/pain share
- DOutput-based payment
Why this is the answer
The risk allocation places construction cost risk entirely on the supplier, so fixed-price is appropriate. Other mechanisms would not align with this allocation.
- Question 12Single Choice
What is the primary focus of an output specification?
- AThe detailed methods and materials to be used.
- BThe desired results and performance standards.Correct answer
- CThe price and payment schedule.
- DThe contract duration and termination clauses.
Why this is the answer
Output specifications focus on describing the desired results or performance standards, not on prescribing methods or inputs.
- Question 13Multiple Select
Which TWO are valid reasons to use a competitive dialogue procedure according to the BBC framework?
- AWhen the requirements are fully specified and standard.
- BWhen the project is highly complex and solutions cannot be fully specified upfront.Correct answer
- CWhen the buyer needs to negotiate risk allocation and payment mechanisms with bidders.Correct answer
- DWhen the contract value is very low and speed is needed.
Why this is the answer
Competitive dialogue is for complex projects with uncertain solutions and where negotiation is necessary. It is not suited for standard, low-value, or fast procurements.
- Question 14Interactive
Based on the risk allocation above, which payment mechanism is most appropriate?
- AFixed-price
- BCost reimbursable
- CTarget cost with gain/pain share
- DOutput-based paymentCorrect answer
Why this is the answer
Supplier bears technology performance risk, so output-based payment aligns incentives by linking payment to performance outcomes. Other mechanisms do not directly address performance risk allocation.
- Question 15Single Choice
Who is accountable for ensuring the procurement strategy aligns with the strategic outcomes of the business case?
- AProcurement Lead
- BProject Manager
- CSenior Responsible OwnerCorrect answer
- DFinance Officer
Why this is the answer
The roles table states: Senior Responsible Owner (SRO) is Accountable for aligning procurement strategy with the strategic outcomes of the business case.
The Economic Case
8 questions in this domain
- Question 16Single Choice
According to the BBC methodology, what is the primary purpose of the long list of options?
- ATo generate a comprehensive, unconstrained set of potential ways to deliver strategic objectivesCorrect answer
- BTo rank options by their net present value
- CTo conduct a detailed cost-benefit analysis on each option
- DTo select the preferred option for the business case
Why this is the answer
The long list represents the comprehensive, unconstrained set of potential ways to deliver the strategic objectives, as stated in section 3.1.
- Question 17Multiple Select
Which two options are mandatory to include in the long list according to the Better Business Cases methodology?
- ADo nothingCorrect answer
- BDo minimumCorrect answer
- CDo something
- DDo more
Why this is the answer
The document explicitly states that 'Do Nothing and Do Minimum' are mandatory options in the long list to ensure the baseline is considered.
- Question 18Interactive
Based on the options matrix in the code block, which option fails the 'Affordability' criterion?
- AOption A
- BOption BCorrect answer
- COption C
- DOption D
Why this is the answer
Option B has an estimated cost of £150M, which exceeds the £100M budget, so it fails the affordability pass/fail criterion.
- Question 19Single Choice
Which metric is considered the primary decision criterion for value for money in the Economic Case?
- ANet Present Value (NPV)Correct answer
- BInternal Rate of Return (IRR)
- CPayback Period
- DNet Present Social Value (NPSV)
Why this is the answer
Section 3.4 states that 'NPV is the primary metric for ranking options' in the Economic Case.
- Question 20Multiple Select
Which of the following are discounted cash flow techniques used for value for money assessment?
- ANet Present Value (NPV)Correct answer
- BInternal Rate of Return (IRR)Correct answer
- CPayback PeriodCorrect answer
- DReturn on Investment (ROI)
Why this is the answer
Section 3.4 lists NPV, IRR, and Payback Period as the three DCF techniques used for VfM assessment.
- Question 21Interactive
Given the cash flows in the code block and a discount rate of 5%, what is the sign of the Net Present Value (NPV)?
- APositiveCorrect answer
- BNegative
- CZero
- DCannot be determined
Why this is the answer
The undiscounted cash flows sum to +20, and with discounting the NPV remains positive (approximately 13.6). A positive NPV indicates the project adds value.
- Question 22Single Choice
According to the UK Green Book, what is the real discount rate typically used for public sector projects?
- A3.5%Correct answer
- B2.0%
- C5.0%
- D10.0%
Why this is the answer
Section 3.4 states: 'For public sector projects, the Green Book mandates a real discount rate of 3.5%'.
- Question 23Multiple Select
Which of the following are characteristics of the long-list appraisal process?
- AUses pass/fail criteriaCorrect answer
- BInvolves detailed quantitative analysis
- CIs a high-level screeningCorrect answer
- DGenerates 3–5 options
Why this is the answer
Section 3.1 explains that the long-list appraisal is a high-level, qualitative sift using pass/fail criteria; it does not involve detailed analysis and produces many options, not exactly 3–5.
The Financial Case
6 questions in this domain
- Question 24Single Choice
What is the primary question answered by the affordability assessment in the Financial Case?
- ACan the organization pay for the investment?Correct answer
- BDoes the investment provide value for money?
- CIs the procurement route commercially viable?
- DCan the project be delivered on time?
Why this is the answer
Affordability assessment checks if the organisation can fund the project within budget constraints, not value for money or commercial viability.
- Question 25Multiple Select
Which of the following are examples of revenue expenditure? (Select two.)
- AStaff salariesCorrect answer
- BPurchase of a new building
- COffice utilitiesCorrect answer
- DSoftware development capitalised
Why this is the answer
Staff salaries and office utilities are day-to-day operational costs consumed in the period, hence revenue expenditure.
- Question 26Interactive
Refer to the code block below. What is the total capital funding requirement in Year 1 according to the budget impact profile?
- A£500,000
- B£1,200,000Correct answer
- C£2,000,000
- D£300,000
Why this is the answer
The code block shows Year 1 capital costs of £1,200,000; this is the amount that requires capital funding.
- Question 27Single Choice
What is the main purpose of the Statement of Resources in the Financial Case?
- ATo prove affordability and resource availabilityCorrect answer
- BTo calculate the Net Present Value of the project
- CTo outline the strategic benefits of the investment
- DTo detail the project risk register
Why this is the answer
The Statement of Resources shows that the organisation has identified and can afford the required resources over the investment lifecycle.
- Question 28Multiple Select
Which of the following are common components of sensitivity analysis in the Financial Case? (Select two.)
- AVarying key assumptions to test impact on affordabilityCorrect answer
- BAssigning probability and impact to each risk
- CTesting optimistic, pessimistic, and most likely scenariosCorrect answer
- DDiscounting future cash flows to present value
Why this is the answer
Sensitivity analysis tests assumptions and scenarios; assigning probability is part of risk management, not sensitivity analysis.
- Question 29Interactive
Review the code block showing cost items. Which cost should be classified as revenue expenditure?
- AConstruction of main building
- BAnnual software licence renewalCorrect answer
- CPurchase of server hardware
- DDevelopment of in-house software
Why this is the answer
Annual software licence renewal is a recurring operational cost consumed within the period, hence revenue expenditure.
The Management Case
4 questions in this domain
- Question 30Single Choice
Who is ultimately accountable for ensuring the benefits stated in the business case are delivered?
- ASenior Responsible Owner (SRO)Correct answer
- BProject Manager (PM)
- CSenior User
- DSenior Supplier
Why this is the answer
The SRO is the single accountable individual for the business case and the project outcome, including benefits realisation. The PM is responsible for execution but not accountable for benefits. The Senior User and Senior Supplier are board members with specific representative roles but not overall accountability.
- Question 31Multiple Select
Which of the following roles are typically members of the Project Board according to the Better Business Cases framework? (Select all that apply.)
- ASenior Responsible Owner (SRO)Correct answer
- BSenior UserCorrect answer
- CSenior SupplierCorrect answer
- DProject Manager
Why this is the answer
The Project Board comprises the SRO (Executive), Senior User, and Senior Supplier. The Project Manager attends as an advisor but is not a voting member of the board.
- Question 32Interactive
Consider the following decision logic for a governance approach. Based on the BC guidance, what should the SRO do next when a Gateway review identifies an Amber rating?
- AProceed to immediate approval as the review is not Red.
- BReject the business case and halt the project.
- CAddress the issues identified by the review before seeking approval.Correct answer
- DEscalate directly to the CEO for a final decision.
Why this is the answer
An Amber rating indicates that issues need to be addressed before approval. The SRO should work with the project team to resolve findings and then return to the approving body. Immediate approval is not appropriate, and rejection is not required unless issues are critical.
- Question 33Single Choice
When is a Post-Implementation Review (PIR) typically conducted?
- AImmediately after project closure
- BAfter a period of operational use, typically 6-12 monthsCorrect answer
- CBefore the Full Business Case is approved
- DOnly if the project exceeded its budget
Why this is the answer
The PIR is conducted after a period of operational use to allow benefits to materialise, typically 6-12 months post-implementation. It is not immediate; it is a summative evaluation distinct from a post-project review.
The Strategic Case
8 questions in this domain
- Question 34Single Choice
In which case of the Five Case Model is the strategic context documented?
- AStrategic CaseCorrect answer
- BEconomic Case
- CCommercial Case
- DFinancial Case
Why this is the answer
The strategic context is documented in the Strategic Case, which is the first of the five cases.
- Question 35Multiple Select
Which two characteristics must a properly defined business need have?
- ASpecific and measurableCorrect answer
- BLinked to a preferred solution
- CTime-boundCorrect answer
- DDriven by stakeholder wants
Why this is the answer
A business need should be SMART: Specific, Measurable, Achievable, Relevant, Time-bound. It must not include a solution.
- Question 36Interactive
Refer to the code block. Which option correctly states an investment objective?
- AA
- BBCorrect answer
- CC
- DD
Why this is the answer
Investment objectives must be SMART and derived from strategic objectives. Option B is specific and measurable.
- Question 37Single Choice
Where are an organization's strategic objectives typically found?
- ACorporate planCorrect answer
- BProject plan
- CInvestment objectives
- DBenefits map
Why this is the answer
Strategic objectives are derived from the corporate plan, annual report, or strategy document.
- Question 38Multiple Select
Which two options must always be included when generating a long list of options?
- ADo nothingCorrect answer
- BDo minimumCorrect answer
- CPreferred solution
- DHigh-cost option
Why this is the answer
The BBC framework mandates that 'do nothing' and 'do minimum' are always included in the long list of options.
- Question 39Interactive
The code block shows a shortlist. Which option should have been rejected due to lack of strategic fit?
- AOption A
- BOption B
- COption CCorrect answer
- DOption D
Why this is the answer
Option C (Outsource IT to reduce costs) does not align with the strategic goal of improving in-house capability.
- Question 40Single Choice
Who is accountable for identifying benefits, risks, and constraints at the strategic level?
- ASenior Responsible Owner (SRO)Correct answer
- BProject Manager
- CFinance Director
- DBusiness Change Manager
Why this is the answer
The SRO is accountable for ensuring benefits, risks, and constraints are identified and documented at the strategic level.
- Question 41Multiple Select
Which two are examples of constraints at the strategic level?
- ABudget capCorrect answer
- BTeam member availability
- CLegislative deadlineCorrect answer
- DProject manager's preference
Why this is the answer
Strategic constraints are non-negotiable boundaries like budget caps and legislative deadlines. Team availability is operational.
Frequently asked questions
Everything about the Better Business Cases™ Foundation question bank and how to use it.