Posted by: Pdfprep
Post Date: November 14, 2020
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?
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.
Answer: C
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