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

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.

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.

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

• Benefit type: Cash-releasing
• Description: A net overall saving in the cost of cleaning
• Target improvement: Reduce overall costs of cleaning contracts by 10% per annum
• Responsible officer: Pittville University Procurement Manager.Which 2 statements apply to these entries?
• Amend entry 1, because the benefit type should be 'financial but non-cash-releasing'.
• No change to entry 1, because the benefit is cash-releasing and should be measured in financial terms.
• Amend entry 3, because the improvement is unknown.
• No change to entry 3, because the benefits register should indicate the level of improvement expected.
• Amend entry 4, because the SRO should be the responsible officer for all benefits.

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

• The cost of any changes to the contract will need to be authorized by the Programme Change Board.
• 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.
• 20% of the contract price is to be paid up front for materials.

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?

• No, because Pittville University should NOT be involved in the development of the Strategic Case.
• No, because the business scope should determine the affected business areas, functionality and organization.
• Yes, because the Old Fire Station Headquarters site has good access from most parts of Pittville.
• Yes, because the business scope of the Pittville project should be based on a short list of options.

Answer the following question about the Programme Business Case.The following questions include only true statements, but only 2 statements are appropriate entries for that heading in the Strategic Case section.Remember to select 2 answers to each question.Which 2 statements should be recorded under the Organization overview heading?

• The Consortium has been formed to plan the transformation of education and learning for 14-19- year-olds throughout the Western Area.
• Formal meetings have been held over the past nine months to establish the goals to be achieved.
• Pittville is the commercial, retail and cultural centre of Topland, with a population of circa 22,000.
• There are problems accessing learning in some parts of the region.
• There is a shortage of higher education establishments in the region.

Which 2 attributes demonstrate that this option supports the key CSF Potential affordability?

• The addition of a new campus will be matched by plans to downsize elsewhere.
• Constant prices have been used to estimate lifecycle costs in the value for money appraisal.
• The 3 local government authorities have formed a partnership known as the Western Area Learning Consortium.
• The option provides an increase in the progression to higher-level learning.
• The cost of maintaining and adapting Pittville High School will be removed by closing the school.

Which 2 statements should be recorded under the Potential for risk transfer heading?

• Teaching staff will automatically become employees at the new campus with the same terms and conditions of employment.
• The selected contractor will be responsible for taking measures to reduce any potential errors in the construction phase.
• All construction work is to comply with standard building regulations.
• The new campus building is to be listed as an asset on the Local Education Authority balance sheet.
• The Local Education Authority is best placed to respond to possible opposition from staff and parents.

Which 2 attributes demonstrate that this option supports the key CSF Potential value for money?

• New opportunities will be available for teachers to be involved in delivering the new education courses.
• The 'BAU/status quo' option is the baseline for assessing value for money.
• There is a reasonably positive reaction from local schools to the Old Fire Station Headquarters being used as a second site.
• The demographic forecasts are for further reductions in the demand for places over the next five years.
• A new campus would provide modern and better facilities at a cheaper cost than refitting existing buildings.

Using the Scenario, answer the following questions.What should be prepared to demonstrate how the Pittville project will fit with other initiatives, such as the development of Work Based Learning throughout the Western Area?

• Strategic Outline Case.
• Strategic Assessment
• Business strategies.
• SWOT analysis.