PRINCE2 Practitioner 6th Edition — Question 48

During stage 3, project costs are increasing but there will still be a positive return on investment, as documented in the business case. However, corporate management has recently revised its targets for return on investment and has decided to stop the project as it will not meet the new targets.
Is this an appropriate application of the 'continued business justification' principle?

Answer options

• A. Yes, because changes in corporate strategy may impact a project's justification.
• B. Yes, because a change in a project's justification should trigger premature closure.
• C. No, because the project business case still justifies a project.
• D. No, because changes in corporate strategy should not impact a project once authorized.

Correct answer: C

Explanation

The correct answer is C because the project's business case still indicates that it can provide a positive return, thus justifying its continuation despite rising costs. Options A and B incorrectly suggest that any change in corporate strategy or returns should automatically lead to project termination, while option D misinterprets the principle by stating that corporate strategy changes should not affect an authorized project.