Free APMG-International Better-Business-Cases-Practitioner Practice Exam with Questions & Answers | Set: 2

For each statement in Column 1, we need to determine if it should be explained within the Commercial Case or the Financial Case based on its content. Here are the answers:

Commercial Case- The use of the open procedure for considering tender responses is typically a part of procurement strategy, which falls under the Commercial Case. It deals with how the project will be delivered, the procurement strategy, and the contractual arrangements.

Commercial Case- The potential for opposition from staff when transferring units would also be considered in the Commercial Case as it relates to stakeholder engagement and the management of change, both of which are commercial considerations.

Financial Case- An operating surplus from hiring out sports facilities deals directly with financial performance and sustainability, hence it would be included in the Financial Case.

Neither of the above- This statement about student satisfaction and attendance rates is more related to the outcomes and benefits, which would typically be covered in the Economic Case or Benefits Realization Plan rather than the Commercial or Financial Cases.

Financial Case- The net overall saving in the cost of contracts for cleaning is a financial consideration, dealing with cost savings and expenditure, and therefore should be included in the Financial Case.

Financial Case- Structuring payments to incentivize delivery would be part of the payment mechanism and financial structuring, which are addressed in the Financial Case.

Therefore, the answers from Column 2 would be:

A

A

B

C

B

B

For the activities listed in Column 1, here are the corresponding actions from Column 2 that should undertake these activities within the Five Case Model framework:

Produce a contingency plan to follow in the event that the main teaching building is not ready before the start of the academic year.

Answer: D. Finalize risk management arrangements and plans. Contingency planning is a part of risk management.

Ensure that the consolidated Pittville Project Benefits Register is reviewed regularly.

Answer: C. Finalize benefits realisation arrangements and plans. Regular review of the Benefits Register ensures that benefits realization stays on track.

Take into account the milestones for delivery agreed with Piaffeco.

Answer: A. Finalize project management arrangements and plans. Milestones are a key part of project management.

Schedule a performance review of Piaffeco's delivery of the new campus following its implementation.

Answer: E. Finalize contract management arrangements and plans. Performance reviews are part of managing the contract.

Timetable monthly meetings between the Western Area Learning Improvement Programme Director and the Piaffeco Project Director. This is so they can update and share plans for the future usage and operation of the campus site.

Answer: A. Finalize project management arrangements and plans. Regular meetings between project directors are part of the ongoing project management process.

Update the reduced likelihood that the computer systems will not operate correctly due to the Piaffeco's recent acquisition of a company which specializes in computer systems.

Answer: D. Finalize risk management arrangements and plans. Adjusting the risk profile based on new information is a core component of risk management.

These answers align with the activities that are typically included in the different arrangements and plans according to the Five Case Model, which guides the development of business cases in a structured manner.

A. True, AND the reason explains the assertion.Operating costs are indeed revenue costs rather than capital costs and should not be included in the Capital Profile.

B. True, BUT the reason does not explain the assertion.The income from grants should not be shown on the Capital Profile if they are intended to support operating costs, which should be part of an Income and Expenditure Account. However, capital grants used for capital expenditures could be included in the Capital Profile.

E. False, False.There is no funding gap of $810,000. The Total Funding matches the Total Spend over the five years, as shown in the table.

A. True, AND the reason explains the assertion.Receipts from the sale of the school would typically be considered as contributing to the funding of capital costs for construction, aligning with the accountancy treatment of recognizing proceeds from asset disposal.