APMG-International Better-Business-Cases-Practitioner Exam Practice Questions Answers

Better Business Cases Practitioner Exam Questions and Answers

Question 1

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?

Options:

How charges for the preferred service provider's offer have been modelled, including the resultant benefits.

Capital and revenue implications of the resultant deal, including any costs falling to the organization.

Net effect on the organization's charges (prices), if any.

Service streams and outputs being contracted for.

Buy Now

Question 2

Which is an appropriately defined SMART spending objective for improved efficiency of resources?

Options:

To increase the utilization of teachers from 75% to 90% within three years.

To reduce travel times for staff and students to and from the new campus.

To absorb up to 30% growth in the number of 16 to 18-year-old learners within the current establishment of support staff.

To create a healthy competition between learning providers to benefit learners.

Question 3

Which detail should be explained in the Financial Case?

Options:

Accountancy treatment of the negotiated deal.

Explanation of any personnel implications.

Contingency arrangement for overspends.

Payment premiums for risk transfer.

Question 4

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?

Options:

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

Appoint a Senior Responsible Owner for the Pittville project.

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

Develop the preferred way forward for the Pittville project.

Question 5

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

Options:

The Consortium has been formed to plan the transformation of education and learning for 11 to 18 year olds throughout the Western Area.

The redefinition of jobs is to be negotiated with teaching unions and communicated to all staff.

A financial special advisor has been appointed from Western Area Finance, an auditing organization.

Plans could meet with substantial opposition from parents and staff.

Question 6

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

Options:

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.

Question 7

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

Lines 1 to 6 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.

Options:

Answer:

Explanation:

Here are the appropriate options for each line based on the assertions and reasons provided:

Option C: True (Assertion) / False (Reason) - It is appropriate that the contract includes price variations dependent on the LEA's ability to downsize. However, the reason given is false because a Commercial Case outlines how payments will be made but does not necessarily include contract price variations based on downsizing capacity.

Option E: False (Assertion) / False (Reason) - The assertion is false because the duration of a construction contract usually does not cover the lifetime of the asset; it covers the period of the construction. The reason is also false because a Commercial Case explains the delivery timescales, not necessarily the duration covering the asset's lifetime.

Option A: True (Assertion) / True (Reason) - It is true that the source of funding should be described in the Commercial Case, and the reason is true because the Commercial Case does explain the financial implications to an organization of a negotiated deal.

Option E: False (Assertion) / False (Reason) - The assertion is false; while it is important to identify and cost individual risks, encouraging a service provider to take on risks is not the primary function of the Commercial Case. The reason is also false because optimizing the transfer of risk is not the sole purpose of a Commercial Case; it's about outlining the commercial viability and arrangements.

Option A: True (Assertion) / True (Reason) - It is true that the chosen service provider for the construction should agree to the procurement strategy, and the reason is true because a Commercial Case involves agreeing to the commercial transaction and procurement strategy.

Option A: True (Assertion) / True (Reason) - It is true that the Commercial Case should explain the staff redistribution and redundancies as these are key elements of the commercial terms and conditions of the project which will affect the financial and commercial implications of the scheme.

Question 8

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.

Question 9

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

Options:

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.

Question 10

Which 2 details should be defined when determining spending objectives?

Options:

Targeted outcomes and 'where we want to be'.

The problems, difficulties and inadequacies associated with 'where we are now'.

The boundaries, or limitations, of the project.

How services are currently organized, provided and supplied.

Public value in terms of return for money spent.

Question 11

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?

Options:

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.

Question 12

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?

Options:

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 circa22,000.

There are problems accessing learning in some parts of the region.

There is a shortage of higher education establishments in the region.

Question 13

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.

Question 14

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus on

the 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 response

that supports your decision.

The cost of the temporary accommodation on the site of the Old Fire Station Headquarters has been treated as a revenue cost within

the Financial Appraisal. This temporary accommodation is required as part of the construction of the new campus.

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

Options:

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

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

Yes, because all construction costs must be accounted for.

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

Question 15

Which is an appropriately defined SMART spending objective for greater learner

success rates?

Options:

To ensure that all learning providers for 16 to 18-year-olds are able to offer effective learning.

To reduce staff turnover in the next two years.

To increase the achievement of qualifications by a minimum of 15% within three years.

To provide all education courses with immediate effect.

Question 16

Two of the options in the OBC have been revised, as shown in the table above.

Should Option B be ranked as the preferred option?

Options:

No, because the benefits are greater for Option A.

No, because the public sector test discount rate has been applied.

Yes, because option B has positive liquidity.

Yes, because Option B has the higher NPSV.

Question 17

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

Options:

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.

Question 18

Which statement should be recorded under the Benefits Realization heading?

Options:

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

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

The rationalization of courses to improve pupil/teacher ratios.

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

Question 19

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

Options:

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

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

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

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

Question 20

The Benefits Realization Framework section states:

1. It was identified in the OBC that existing schools and universities play a major role in the success or otherwise of the Pittville

project. A strategy for Learning Provider engagement is to be prepared.

2. A senior manager within the Local Education Authority is ultimately responsible for benefits realization.

Which 2 statements apply to these entries?

Options:

Amend entry 1, because the strategy for the realization of benefits should be confirmed within the OBC.

Delete entry 1, because schools and universities will be responsible for the delivery of the benefits.

No change to entry 1, because the strategy for the realization of benefits should be revisited and re-affirmed within the FBC.

Amend entry 2, because the project manager is responsible for benefits realization.

No change to entry 2, because this is appropriate to this section.

Question 21

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.

Question 22

There is a need to meet regulations that address the needs of those with Learning Difficulties and Disabilities

Should this item be recorded as a dependency within the Strategic Outline Case?

Options:

No, because the regulations are an externally imposed parameter or constraint.

No, because dependencies should NOT be recorded within the Strategic Outline Case.

Yes, because any actions or developments required by others should be considered if the success of the project is dependent upon them.

Yes, because success of the project is dependent upon compliance with these regulations.

Question 23

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.

There is a risk that the local planning authority may reject proposals for development of the Old Fire Station Headquarters site. This

will cause delays to the project.

Should this risk be recorded as an external non-systemic risk within the Strategic Outline Case?

Options:

No, because risks should be identified in the Outline Business Case.

No, because this is a service risk associated with the design and build phases of the project.

Yes, because the local planning authority is an external organization.

Yes, because changes to the Old Fire Station Headquarters site will affect the environment.

Question 24

Using the Scenario and the extract below from the Revenue Budget for the Pittville project, answer the following

questions. (Note. The figures entered are correct).

Which 2 observations correctly evaluate the Expenditure?

Options:

The cost of building the new campus should be included in this table.

Staffing costs should be moved to the Economic Appraisal.

To be useful this table should cover the lifetime of the asset.

Equipment costs should be moved to the capital costs.

The cost of finance should be moved to the Economic Appraisal.

Question 25

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

Options:

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.

Question 26

Using the Scenario and the information below, answer the following questions about the creation

of the short listed options for the Pittville project.

Spending Objectives

At least 15% increase in rate of participation

A 15% increase in attainment of qualification

At least 65 education courses

Critical Success Factors

Strategic fit and business needs - fit for purpose schools and universities attractive to 16-18-year-old

learners

Potential Value For Money

Supply side capacity and capability

Potential affordability

Potential achievability

Remember to select 2 answers to each question.

Scoping Solution 1: 'Current level of participation, 55 education courses and current qualification

success rate'

Which 2 statements are correct about this entry in the Options Framework?

Options:

Should be carried forward to the short listed options.

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.

Question 27

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?

Options:

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

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

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

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

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

Question 28

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

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 approval of the OBC, there has been an attractive bid for the Old Fire Station Headquarters site by a supermarket company.

The bid is 15% higher than the original amount that the site was valued at.

Should the FBC production be delayed while the ranking of the options in the OBC is reassessed?

Options:

No, because the anticipated benefits will remain the same.

No, because the sale price of the site is an opportunity cost which is irrelevant to the Economic Appraisal.

Yes, because the FBC must be re-submitted for re-approval if the costs vary significantly.

Yes, because the FBC should be based on accurate Economic Appraisals for all options.

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APMG-International Better-Business-Cases-Practitioner Dumps

Better Business Cases Practitioner Exam Questions and Answers

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