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CAPM Practice: Demonstrate an understanding of business analysis (BA) roles and responsibilities

Question 9 of 67 in Demonstrate an understanding of business analysis (BA) roles and responsibilities

What is a 'business case' and what role does the BA typically play in its development?
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Correct answer: A document justifying a project investment by analyzing costs, benefits, risks, and alternatives; BA often conducts the analysis and prepares it

Explanation

A business case justifies investment by comparing costs vs. benefits, presenting alternatives, and assessing risks. BAs often lead or support business case development by analyzing options and quantifying expected value.

**Why not A:** A project charter authorizes the project but does not contain the detailed cost-benefit analysis and alternatives evaluation found in a business case. The business case provides the justification for investment, while the charter formally authorizes the project to begin. BAs are frequently involved in business case development.

**Why not B:** A technical specification of the proposed solution describes the implementation approach, not the business case. The business case evaluates whether the project is worth pursuing by analyzing costs, benefits, risks, and alternatives at a strategic level before committing to a specific technical solution.

**Why not D:** A business case is not a legal document, and BAs do not simply approve it. BAs often lead or significantly contribute to business case development by conducting the analysis of costs, benefits, and alternatives. The approval authority typically rests with project sponsors or governance boards.

Key Concept

This question covers Demonstrate an understanding of business analysis (BA) roles and responsibilities under Demonstrate an understanding of business analysis (BA) roles and responsibilities (Business Analysis Frameworks).

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