APMG-International Better-Business-Cases-Practitioner Quiz 1 Topic 4 Questions 1-5

Question: 1

The Consortium has appointed its own assurance on the Western Area Learning

Improvement Programme.

Which action should be completed by this role?

AEstablish the Pittville project spending objectives.

BConfirm the requirements for 16 to 18-year-old learners can be met.

CManage the risks retained by the public sector.

DArrange and schedule the resources required to develop the new learning campus.

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Question: 2

Which 2 observations correctly evaluate the Income?

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

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

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

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

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

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Question: 3

Which 2 details should be defined when determining the potential business scope?

AA wide range of options that meet the spending objectives.

BAffected business areas, functionality and organization.

CBoundaries, or limitations, of the project.

DCritical success factors essential to the successful delivery of the scheme.

EHow services are currently organized, provided and supplied.

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Question: 4

It is estimated that 60% of the taxation costs on the development will NOT be reclaimable.

Should the unclaimable taxation costs be excluded from the Financial Appraisal?

ANo, because the Financial Appraisal should demonstrate value for money.

BNo, because both resource and non-resource costs and benefits should be factored into the analysis.

CYes, because taxation costs should be excluded from the Financial Appraisal.

DYes, because it is the Economic Case that should include inflation and taxation costs.

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Question: 5

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).

q5_Better-Business-Cases-Practitioner

Which 2 observations correctly evaluate the Expenditure?

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

BStaffing costs should be moved to the Economic Appraisal.

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

DEquipment costs should be moved to the capital costs.

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

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APMG-International Better-Business-Cases-Practitioner Quiz:1 Topic:4 Questions:1-5