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Better-Business-Cases-Practitioner Practice Exam Questions with Answers Better Business Cases Practitioner Exam Certification

Question # 6

Answer the following questions about the actions taken when preparing the Economic Case within the Full Business Case (FBC).

The Outline Business Case (OBC) was based on the following preferred way forward:

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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.

Since the OBC, the Government has established that students from the country do not have to pay university tuition fees. There

has been a further 15% increase in interest for taking a Welsh language course at Pittville University.

Should the service scope and underlying assumptions be amended?

A.

No, because the underlying business need of falling 16-18-year-olds participation in education remains the same.

B.

No, because an increase in interest will NOT reduce the support for the preferred option from the Local Education Authority.

C.

Yes, because any changes to service requirements may require following-up throughout the whole case.

D.

Yes, because students are Pittville project stakeholders.

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Question # 7

Which 2 statements should be recorded under the Benefits, risks, dependencies and constraints heading?

A.

Increase the number of education courses from 55 to 65.

B.

The project could meet with substantial opposition from parents and staff.

C.

Maintain staff satisfaction.

D.

An operating surplus will be generated from hiring out the sports facilities at the new campus.

E.

To implement links with employers and the local economy.

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Question # 8

Which statement should be recorded under the Change Management heading?

A.

The Change Management Strategy should mitigate the impact of school closures on jobs.

B.

There should be a break clause allowing either party to give two months written notice to terminate the agreement after a minimum of six months.

C.

11-16 year old pupils from Pittville High School could be absorbed into the other schools if all further education unit were moved to a new campus.

D.

The Pittville University development option will result in a net overall saving in the cost ofcontracts for cleaning.

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Question # 9

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?

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 # 10

Which statement should be recorded under the Post Project Evaluation heading?

A.

The Western Area Learning Improvement Programme Director is responsible for delivering the benefits of the Pittville project.

B.

The monitoring of anticipated benefits is to be assessed every year, for a ten-year period.

C.

The rate of 16-18 year olds in education and training to be increased by at least 15% within three years.

D.

New roles will be identified, advertised and assigned before the start of the second academic year of the implementation.

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Question # 11

Which statement should be recorded under the Risk Management heading?

A.

The sports facilities at the new campus are to be hired out to external organizations and groups.

B.

A project management special advisor has been appointed from a consultancy specializing in the PRINCE2 methodology.

C.

Schools and universities affected by the Pittville project are to escalate any risks to the Project Manager.

D.

The redefinition of jobs is to be communicated to teaching unions before any communications with staff can be issued.

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Question # 12

The Financial Appraisal for the new campus includes the cost of inflation over the life of the scheme.

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

A.

No, because the Financial Appraisal should be based on constant prices.

B.

No, because it is the Economic Appraisal that should include the cost of inflation.

C.

Yes, because this will be an on going cost to the new campus over the life of the scheme.

D.

Yes, because all of the new campus assets will decrease in value over the life of a scheme.

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Question # 13

An extract of an entry in the benefits register includes the following information:

1. Benefit type: Cash-releasing

2. Description: A net overall saving in the cost of cleaning

3. Target improvement: Reduce overall costs of cleaning contracts by 10% per annum

4. Responsible officer: Pittville University Procurement Manager.

Which 2 statements apply to these entries?

A.

Amend entry 1, because the benefit type should be 'financial but non-cash-releasing'.

B.

No change to entry 1, because the benefit is cash-releasing and should be measured in financial terms.

C.

Amend entry 3, because the improvement is unknown.

D.

No change to entry 3, because the benefits register should indicate the level of improvement expected.

E.

Amend entry 4, because the SRO should be the responsible officer for all benefits.

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Question # 14

Using the Scenario, answer the following questions about roles and responsibilities on the Pittville project.

Which action should be completed by the sponsor for the Western Area Learning Improvements Programme?

A.

Plan, in detail, the construction of the new learning campus.

B.

Appoint a Senior Responsible Owner for the Pittville project.

C.

Produce regular reports on progress of the development of the new learning campus for the Senior Responsible Owner of the project.

D.

Develop the preferred way forward for the Pittville project.

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Question # 15

Which statement should be recorded under the Benefits Realization heading?

A.

The Pittville Project Manager is responsible for producing regular progress reports for the Senior Responsible Owner of the project.

B.

The local university has proposed to run a series of workshops in the Western Area to prepare for university applications.

C.

The rationalization of courses to improve pupil/teacher ratios.

D.

The Reference Project is based on using the same property management company that maintains Pittville University.

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Question # 16

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.

When preparing the Strategic Outline Case, the need to address the number of education courses available to 16-18-year-olds was

considered to be sufficiently large and stand alone to form a project.

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

A.

No, because the Pittville project is part of a larger programme of change.

B.

No, because whether the change is sufficiently large to warrant a project should have been determined before this stage.

C.

Yes, because this stage should confirm the strategic context of the proposal.

D.

Yes, because this stage should provide stakeholders with an early indication of the preferredoption.

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Question # 17

Temporary accommodation has been put on the site of the Old Fire Station Headquarters whilst thedevelopment of

the new campus takes place.

Should the cost of the temporary accommodation be treated as a capital cost within the Financial Appraisal?

A.

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

B.

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

C.

Yes, because all running costs must be accounted for.

D.

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

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Question # 18

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?

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 # 19

Which 2 observations correctly evaluate risks that could affect the affordability of this project?

A.

Without the sale of Pittville High School, the project is no longer viable.

B.

The project would still be viable if equipment costs were to double after Year 3.

C.

If the other income were to be withdrawn for any reason, LEA Funding alone could fund the running costs of the scheme after Year 3.

D.

The project would no longer be affordable if funding were to increase by 5%.

E.

Income from the hire of the Sport Facilities must continue to increase every year for the scheme to be viable.

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Question # 20

Which 2 statements should be recorded under the Proposed charging mechanisms heading?

A.

The cost of any changes to the contract will need to be authorized by the Programme Change Board.

B.

The new campus building is to be listed as an asset on the Local Education Authority balance sheet.

C.

The return on the investment will repay the sum of the original investment over 10 years.

D.

The contract period for development of the new campus is three years.

E.

20% of the contract price is to be paid up front for materials.

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Question # 21

Answer the following question about the Outline Business Case.

The following questions include only true statements about the Pittville project.

However only one statement is an appropriate entry for that heading in the

Management Case section.

Which statement should be recorded under the Programme and Project Management heading?

A.

Projected inflation will mean that costs will be 6% higher when the campus is operational.

B.

Temporary accommodation will be put on the site of the Old Fire Station Headquarters at least 3 months before the development of the new campus takes place.

C.

Opportunities will be created for teachers to be involved in delivering new courses.

D.

The chosen service provider must have experience in the construction of publicly used buildings.

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Question # 22

Answer the following question about scoping the proposal and preparing the Strategic Outline

Case (SOC) for the Pittville project.

Column 1 is a list of information gathered about the Pittville project. For each entry in Column 1, select

from Column 2 the option that best describes it. Each selection from Column 2 can be used once, more

than once or not at all.

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Question # 23

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?

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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Question # 24

Using the Scenario, answer the following questions about the Commercial Case for the Pittville project.

The following questions include only true statements about the project, but only two statements are appropriate entries for the

suggested heading of the Commercial Case.

Remember to select 2 answers to each question.

Which 2 statements should be recorded under the Required services heading?

A.

20% of the contract price is to be paid up front for materials.

B.

To increase the rate of 16-18-year-olds participating in education and training by at least 15% within the next three years.

C.

The major users of the finished campus will be 16-18 year old learners.

D.

The selected contractor will be responsible for taking measures to reduce any potential errors in the construction phase.

E.

All intellectual property rights are to be maintained by the Local Education Authority.

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Question # 25

Which 2 observations correctly evaluate the affordability of the Pittville project?

A.

The Financial Appraisal shows that this scheme is unaffordable.

B.

At the end of Year 6, E6 million of the initial spending costs will have been recovered.

C.

The surplus Income forecast in Year 1 is sufficient to cover the deficit forecast in Year 2.

D.

The revenue budget should show how long it will take for the surplus income to cover the initial cost of building the new campus.

E.

If expenditure and income continue at the same rate, each subsequent year should return a surplus of £1 million.

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Question # 26

Which action should be completed by the Pittville Project Manager?

A.

Produce regular progress reports for the Senior Responsible Owner of the

project.

B.

Appoint the Senior Responsible Owner for the project.

C.

Approve the specification for the new learning campus.

D.

Approve the continuation of the project at the end of each delivery stage.

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Question # 27

The benefits realization strategy states that the following:

1. Benefits will be entered in the benefits register

2. Only cash-releasing benefits will be tracked in the benefits register.

Which 2 statements apply to these entries?

A.

Amend entry 1, because benefits should be captured in the benefits realization strategy.

B.

No change to entry 1, because the benefits register should capture all benefits.

C.

Amend entry 2, because all key benefits, whether or NOT they are cash-releasing, should be identified and monitored.

D.

No change to entry 2, because all benefits should be measured in financial terms.

E.

No change to entry 2, because only financial benefits should be included in the business case.

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Question # 28

The Economic Case in the FBC has been completed and the Senior Responsible Owner, has asked that assurance of the

investment decision be held for the project before the benefits realization plans are produced.

Should assurance of the investment decision be held at this point?

A.

No, because assurance of the delivery strategy should be held before benefits realization plans are finalized.

B.

No, because assurance of the investment decision should be held before Stage 4 - Implementation.

C.

Yes, because assurance of the investment decision ensures the investment is sound before the planning for delivery is finalized.

D.

Yes, because assurance of the investment decision should be held before procurement of the Value For Money solution.

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