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BCS BA Practice > BCS - Module 7: Building the Business Case > Flashcards

BCS - Module 7: Building the Business Case Flashcards

1
Q

The Business Case should not be amended after solution design

  1. True
  2. False
A
  1. False

The business case is a living document that should be revised as the project proceeds and more is discovered about the proposed solution and the costs and benefits of introducing it

Organisations are not static and so the business case must be kept under review to ensure the changing circumstances have not invalidated it

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2
Q

Which area of feasibility is this within a business case?

Strategic fit

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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3
Q

Which area of feasibility is this within a business case?

Within Budget

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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4
Q

Which area of feasibility is this within a business case?

Market Appropriate

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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5
Q

Which area of feasibility is this within a business case?

Timely

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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6
Q

Which area of feasibility is this within a business case?

Available

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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7
Q

Which area of feasibility is this within a business case?

Sufficient funds available

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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8
Q

Which area of feasibility is this within a business case?

Acceptable ROI

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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9
Q

Which area of feasibility is this within a business case?

Reliable

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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10
Q

Which area of feasibility is this within a business case?

Maintainable

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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11
Q

Which area of feasibility is this within a business case?

Performance of the solution

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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12
Q

Which area of feasibility is this within a business case?

Sufficient funds can be borrowed

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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13
Q

Which area of feasibility is this within a business case?

Architectural alignment

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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14
Q

Which area of feasibility is this within a business case?

Secure

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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15
Q

Which area of feasibility is this within a business case?

Scalable

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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16
Q

Which area of feasibility is this within a business case?

Acceptable cash flow

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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17
Q

Which area of feasibility is this within a business case?

Timely payback

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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18
Q

Which area of feasibility is this within a business case?

Cultural fit

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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19
Q

Which area of feasibility is this within a business case?

Compatible

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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20
Q

Which area of feasibility is this within a business case?

Capability fit

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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21
Q

Which area of feasibility is this within a business case?

Regulatory alignment

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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22
Q

Which area of feasibility is this within a business case?

Proven

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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23
Q

Which area of feasibility is this within a business case?

Whether the technology to deliver the solution is available

  1. Business
  2. Technical
  3. Financial
A
  1. Technical
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24
Q

Which area of feasibility is this within a business case?

Whether the proposal matches the business objectives and strategy of the organisation

  1. Business
  2. Technical
  3. Financial
A
  1. Business
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25
Q

Which area of feasibility is this within a business case?

Whether the orgainsation can afford the proposed solution

  1. Business
  2. Technical
  3. Financial
A
  1. Financial
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26
Q

Which tool can be used in assessing feasibility of a business case?

  1. PESTLE
  2. MOST
  3. SWOT
A
  1. PESTLE

e.g.
Political - is the proposed solution politically acceptable?
Economic - can the organisation afford the solution

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27
Q

DELETE

A

DELETE

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28
Q

Costs tend to be

  1. Mainly tangible
  2. Mainly intangible
  3. A mixture of the tangible and intangible
A
  1. Mainly tangible
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29
Q

Benefits tend to be

  1. Mainly tangible
  2. Mainly intangible
  3. A mixture of the tangible and intangible
A
  1. A mixture of the tangible and intangible
30
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Relocation

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
31
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Disruption and loss of productivity

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible cost
32
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Recruitment

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible cost
33
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Staff savings

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
34
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Increased job satisfaction

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
35
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Improved customer satisfaction

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
36
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Improved management information

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
37
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Reduced accommodation costs

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
38
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Business staff costs

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
39
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Purchasing Equipment

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
40
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Reduced effort and improved speed of working

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
41
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Greater organisational flexibility

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
42
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Reduced inventory

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
43
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Infrastructure establishment

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
44
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Faster responses to customers

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
45
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Reduced overtime working

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible benefit
46
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

More creative problem solving time

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
47
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Improved presentation or better market image

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
48
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Greater organisational flexibility

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
49
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Staff training and retraining

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
50
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Packaged software purchases

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
51
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Better communications

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Intangible benefit
52
Q

Costs and Benefits need to be discussed in the business case. Which category does the following fall into:

Relocation

  1. Tangible cost
  2. Intangible cost
  3. Tangible benefit
  4. Intangible benefit
A
  1. Tangible cost
53
Q

The impacts of the options need to be shown in the business case. Which categories of the impact assessment are mentioned below:

Create a single point of contact for customers
Hire people using a different hiring approach

  1. Organisation structure
  2. Interdepartmental relations
  3. Working practices
  4. Management style
  5. Recruitment policy
  6. Appraisal and promotion criteria
  7. Supplier relations
A
  1. Organisation structure

5. Recruitment policy

54
Q

The impacts of the options need to be shown in the business case. Which categories of the impact assessment are mentioned below:

Redefine the ways of working with third parties
Change the targets, objectives and incentives for staff

  1. Organisation structure
  2. Interdepartmental relations
  3. Working practices
  4. Management style
  5. Recruitment policy
  6. Appraisal and promotion criteria
  7. Supplier relations
A
  1. Supplier relations

6. Appraisal and promotion criteria

55
Q

The impacts of the options need to be shown in the business case. Which categories of the impact assessment are mentioned below:

Changes in ways of working off the back of new process and systems
Changes in ways of working off the back of reduction in the organisation’s management hierachy

  1. Organisation structure
  2. Interdepartmental relations
  3. Working practices
  4. Management style
  5. Recruitment policy
  6. Appraisal and promotion criteria
  7. Supplier relations
A
  1. Working practices

4. Management style

56
Q

The impacts of the options need to be shown in the business case. Which category of the impact assessment is mentioned below:

Changes in the relationships between areas of the business

  1. Organisation structure
  2. Interdepartmental relations
  3. Working practices
  4. Management style
  5. Recruitment policy
  6. Appraisal and promotion criteria
  7. Supplier relations
A
  1. Interdepartmental relations
57
Q

The principal risks of the change need to be shown in the business case.

What are the 5 things that need to be recorded for each identified risk?

A
  1. Description
  2. Impact assessment
  3. Probability
  4. Countermeasures
  5. Ownership
58
Q

Which type of risk is described here:

Organisational

  1. Business
  2. Technical
  3. Project
59
Q

Which type of risk is described here:

Incompatibility

  1. Business
  2. Technical
  3. Project
60
Q

Which type of risk is described here:

Deadlines

  1. Business
  2. Technical
  3. Project
61
Q

Which type of risk is described here:

Dependancies

  1. Business
  2. Technical
  3. Project
62
Q

Which type of risk is described here:

Relationships (internal and external)

  1. Business
  2. Technical
  3. Project
63
Q

Which Investment Appraisal Technique is described below?

A forecast of whether the money spent or saved today is worth the same as it will be next year or in several years’ time

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Discounted Cash Flow and Net Present Value (DCF)
64
Q

Which Investment Appraisal Technique is described below?

A cash flow forecast over time for each option in the business case

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Payback Calculation
65
Q

Which Investment Appraisal Technique is described below?

The discount rate that will break even overall resulting in a Net Present Value of £0

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Internal Rate of Return (IRR)
66
Q

Which Investment Appraisal Technique is the most straightforward, easiest to comprehend and easiest to construct?

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Payback Calculation
67
Q

Which Investment Appraisal Technique does not take into account the time value of money (e.g. money spent or saved today will not be worth as much in the future)?

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Payback Calculation
68
Q

If the NPV (Net Present Value) is positive this means

  1. The project will be profitable
  2. The project will not be profitable
A
  1. The project will be profitable
69
Q

Complete this sentence:

The higher a project’s NPV…

  1. The lower the IRR and the less desirable it is to undertake the project
  2. The higher the IRR and the more desirable it is to undertake the project
A
  1. The higher the IRR and the more desirable it is to undertake the project
70
Q

Which Investment Appraisal Technique can be used to get a single percentage figure to compare projects and identify the better investment opportunities?

  1. Payback Calculation
  2. Discounted Cash Flow and Net Present Value (DCF)
  3. Internal Rate of Return (IRR)
A
  1. Internal Rate of Return (IRR)

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