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Better Business Cases Practitioner Exam Questions and Answers

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Viewing questions 21-30 out of questions

Questions # 21:

Using the Scenario, answer the following questions.

Column 1 is a list of areas of interest to be included in the communications planned for the Pittville project. For each area of interest

in Column 1, select from Column 2 the MOST appropriate stakeholder group to which it will apply. Each selection from Column 2

can be used once, more than once or not at all.

Question # 21

Options:

Answer

Answer:

Explanation

For the Pittville project described in the scenario, here are the most appropriate stakeholder groups for each area of interest:

Impact on traffic in the area surrounding the new learning campus.

Most Appropriate Stakeholder Group:A. Local residents

New opportunities available for teachers to be involved in delivering new education courses.

Most Appropriate Stakeholder Group:B. LEA members

Details of the increased range of education courses available for 16-18-year-olds.

Most Appropriate Stakeholder Group:D. 11-16-year-old pupils and their parents

Ongoing costs of providing education for 11-18-year-olds.

Most Appropriate Stakeholder Group:B. LEA members

Demographic forecasts for demand for student places over the next five years.

Most Appropriate Stakeholder Group:C. University staff

These selections are based on the groups most directly affected by or involved with each area of interest. Local residents will be directly impacted by changes in traffic patterns due to the new learning campus. LEA members would be concerned with the financial aspects and opportunities for teachers regarding new courses. The pupils and their parents would be directly interested in the details of new education courses available, especially as it pertains to their education and future. University staff would be involved in the planning and would need to understand the demographic forecasts to prepare for future student intake.

Questions # 22:

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?

Options:

No, because the funding statement is provided in the Financial Case.

No, because the Economic Case should have already quantified this funding risk.

Yes, because alternative monies may be available to fund proposals that offer demonstrably better value for money.

Yes, because scenario analysis should reflect the political uncertainties on which the success of the proposal depends.

Answer

Questions # 23:

The Local Education Authority Director has been appointed as the Senior Responsible Owner for the Western Area Learning Improvement Programme.

Which action is MOST appropriate for this role?

Options:

Champion the project when it gets into difficulties.

Consider the downsizing of 11 to 18-year-old education and training provision elsewhere to offset the new campus.

Document the impact of the programme on the organization's income and expenditureaccount in the programme's business case.

Provide assurance that the programme has delivered its anticipated benefits.

Answer

Questions # 24:

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?

Options:

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

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

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

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

Answer

Questions # 25:

Answer the following question about the Economic Case within the Outline Business Case

(OBC).

The Preferred Way Forward is the Service Solution to provide a new Learning Campus on the

Old Fire Station Headquarters site and to close and transfer all further education units in the

Pittville area. However there are concerns that the project timescale may be difficult to keep

due to the following reasons:

. Planning authority consent may delay the schedule because the site is in a conservation

area

. Staff and students could be opposed to moving location.

Lines 1 to 5 in the table below consist of an assertion statement and a reason statement. For each

line identify the appropriate option, from options A to E, that applies. Each option can be used once,

more than once or not at all.

Question # 25

Options:

Answer

Answer:

Explanation

The assertion is that the conversion of the Old Fire Station Headquarters site should be considered as a non-standard building project for deriving the optimism bias adjustment factor because non-standard building projects involve significant planning and construction risks. This isTrue, and the reason given is alsoTrueand explains the assertion because the presence of significant risks is precisely why it would be categorized as non-standard and why an optimism bias adjustment would be needed.

Correct Option: A

The assertion states that the optimism bias should be set midway between the upper and lower works duration limit to reflect the identified timescale risks becauseoptimism bias should be reduced as each risk is mitigated. This isTrue; however, the reason isTruebut does not correctly explain the assertion. Optimism bias is related to underestimation of risks, not their mitigation.

Correct Option: B

The assertion here is that opposition of staff and students to the move should be categorized as a decant risk because a decant risk arises in accommodation projects related to moving staff and clients. This isTrue, and the reason isTrueand directly explains why such opposition should be considered a decant risk.

Correct Option: A

The assertion that risks to the timetable should be used as the basis for scenario analysis isTrue. The reason given is that sensitivity analysis of Economic Appraisal findings should identify reasons for variances in project assumptions and estimates, which is alsoTrueand provides a correct explanation for using risks in scenario analysis.

Correct Option: A

The final assertion is that the preferred option must consider developing on the Pittville University site to manage all 16-18 education because it has the highest net present social value. This assertion isFalsebecause the preferred option should be the one with the best value for money overall, considering both quantitative and qualitative benefits. The reason is alsoFalsebecause it incorrectly suggests that the option with the highest net present social value automatically demonstrates the best value for money, without consideration of costs or other factors.

Correct Option: E

Therefore, the correct options for each line are A, B, A, A, and E, respectively

Questions # 26:

Which 2 observations correctly evaluate the Income?

Options:

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

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

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

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

Local Education Authority (LEA) Funding should be moved to the Economic Appraisal.

Answer

A, B

Questions # 27:

The Management Case states that, because the Pittville project is part of the Western Area Learning Improvements Programme:

1. A benefits realization strategy and benefits register are NOT required for the project.

2. All benefits will be tracked at the programme level.

Which 2 statements apply to these entries?

Options:

Amend entry 1, because all projects should use a benefits register to identify key benefits and how they will be tracked.

Amend entry 1, because the benefits realization strategy for the project should outline how the programme's approach to realizing benefits is being adapted for the project.

Amend entry 2, because the potential benefits from the project should be documented only in the Economic Case.

No change to entry 2, because when a project is part of a wider programme, benefits should be tracked only at the programme level.

No change to entry 2, because tracking benefits at the programme level will help to avoid double counting of benefits from different projects.

Answer

A, B

Questions # 28:

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

Options:

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.

Answer

A, E

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