Free Better Business Cases Practitioner Exam Better-Business-Cases-Practitioner Exam Practice Test

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

• Without the sale of Pittville High School, the project is no longer viable.
• The project would still be viable if equipment costs were to double after Year 3.
• If the other income were to be withdrawn for any reason, LEA Funding alone could fund the running costs of the scheme after Year 3.
• The project would no longer be affordable if funding were to increase by 5%.
• Income from the hire of the Sport Facilities must continue to increase every year for the scheme to be viable.

The Consortium has appointed its own assurance on the Western Area Learning Improvement Programme.Which action should be completed by this role?

• Establish the Pittville project spending objectives.
• Confirm the requirements for 16 to 18-year-old learners can be met.
• Manage the risks retained by the public sector.
• Arrange and schedule the resources required to develop the new learning campus.

Which detail should be explained in the Financial Case?

• Accountancy treatment of the negotiated deal.
• Explanation of any personnel implications.
• Contingency arrangement for overspends.
• Payment premiums for risk transfer.

Which 2 statements should be recorded under the Proposed key contractual clauses heading?

• Staff at the new campus will automatically become employees of Pittville University with the same terms and conditions of employment.
• The parties shall attempt to resolve any dispute through negotiations between senior executives of the parties, who have authority to settle the same.
• The new campus building is to be listed as an asset on the Local Education Authority balance sheet.
• The return on the investment will repay the sum of the original investment over 10 years.
• The contract period for development of the new campus is three years.

Spending objectives, existing arrangements and business needs are now being considered for the Pittville project.Which entry is NOT a business need?

• The participations of 16-18-year-olds in education and training in Pittville is slightly below the average for the country. It has fallen over the last few years.
• The Consortium wants to see improvements in the levels of basic skills and overall learner success rates.
• At least a 15% increase in the participation of 16-18-year-olds in education and training within the next three years.
• Address the limitations of some further education units to offer choice and an appropriate learning environment.

The Local Education Authority Director has agreed to be the Senior Responsible Owner. Therefore, they are ultimately responsiblefor the realization of benefits resulting from the Pittville project.Should the responsibilities for the benefits realization arrangements be documented in the Economic Case?

• No, because the benefits realization arrangements are finalized in the Management Case.
• No, because the benefits realization takes place during the implementation and operational phases of the project.
• Yes, because the plan for the delivery of benefits should be documented within the benefits register and attached to the FBC.
• Yes, because changes to the benefits should be identified before the FBC Economic Appraisals.

Scoping Solution 2: '20% increase in rate of participation, 75-85 education courses, 15-20% improvement in qualification success rate'.Which 2 statements are correct about this entry in the Options Framework?

• Should be rejected as over-ambitious.
• Delivers against one or more of the critical success factors.
• Will represent a benchmark for Value For Money throughout the appraisal process.
• Supports one or more of the Spending Objectives.
• Incorrectly identified as a Scoping Solution.

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus onthe 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 responsethat supports your decision.The cost of inflation is estimated to be 2% per annum.Should the project manager use this information when preparing the Financial Appraisal for this scheme?

• No, because the Financial Appraisal should include constant or real prices.
• No, because the Financial Appraisal should exclude the cost of general inflation and depreciation.
• Yes, because the Financial Appraisal should include the cost of inflation.
• Yes, because inflation will reduce the cost of the scheme over time.

The benefits realization strategy states that the following:

• Benefits will be entered in the benefits register
• Only cash-releasing benefits will be tracked in the benefits register.
• Which 2 statements apply to these entries?
• Amend entry 1, because benefits should be captured in the benefits realization strategy.
• No change to entry 1, because the benefits register should capture all benefits.
• Amend entry 2, because all key benefits, whether or NOT they are cash-releasing, should be identified and monitored.
• No change to entry 2, because all benefits should be measured in financial terms.
• No change to entry 2, because only financial benefits should be included in the business case.

The new campus scheme will take three years to complete. Projected inflation over this period will mean that staffing costs will be 6%higher when the campus is operational.Should this increase be managed as a risk to the project?

• No, because inflation should be included as a cost in the Financial Appraisal.
• No, because any increase in cost should be dealt with as an issue.
• Yes, because any cost increase could threaten the affordability of a scheme.
• Yes, because any risk that might affect the financial viability of a scheme should be closely managed.