Project Initiation & Business Case Development Flashcards

Which statement BEST describes the relationship between the project charter and the project management plan?

Answer: The project charter authorizes the project; the project management plan details how it will be executed

The project charter is created during initiation to formally authorize the project, while the project management plan is developed during planning to describe how the work will be carried out.

An organization requires a payback period of no more than 3 years for capital investments. A proposed project has an estimated payback of 4.2 years. How should this finding be addressed?

Answer: The project should be rejected or redesigned to accelerate benefits realization

When a project fails to meet an organization's investment threshold, it should be rejected or reconsidered — possibly redesigning scope, phasing, or approach to accelerate cash recovery.

Which component of the business case describes the consequences of NOT undertaking the project?

Answer: Do-nothing analysis or base case

The do-nothing (or base case) analysis outlines the status quo and the negative consequences of inaction, strengthening the justification for moving forward with the project.

A project manager reviews an initial stakeholder register created during initiation. What is the MOST important reason to identify stakeholders this early?

Answer: To ensure early engagement and capture requirements that could affect project scope and success

Early stakeholder identification allows the project manager to engage key parties, surface requirements and concerns, and reduce the risk of discovering critical needs late in the project lifecycle.

What is the PRIMARY purpose of conducting a SWOT analysis during project initiation?

Answer: To assess the internal and external environment to inform project strategy and risk identification

A SWOT analysis during initiation examines organizational strengths, weaknesses, opportunities, and threats to help shape project strategy and identify early risks and enablers.

During project initiation, the project manager identifies that a key regulatory approval has a lead time of 14 weeks. This information should be captured as a:

Answer: Project constraint

A 14-week regulatory approval lead time is a known limitation on the project schedule, making it a project constraint that must be reflected in planning.

Which of the following BEST describes the difference between a project mandate and a full business case in a structured project initiation process?

Answer: A mandate provides a brief initial justification to authorize further investigation; a business case provides detailed justification for full commitment

A project mandate is a lightweight document used to authorize early-stage investigation or a feasibility study, while the full business case provides the detailed analysis needed to commit organizational resources.