What does a business case provide?

Study for the CIPS Contract Administration (L3M3) Test. Master key concepts with our structured flashcards and multiple-choice questions. Each question includes hints and explanations. Get ready to excel in your exam!

A business case provides a justification for a proposed project, detailing the rationale for undertaking the project and how it aligns with the organization's goals and objectives. It typically includes information about the project's benefits, costs, risks, and alternatives, enabling stakeholders to understand the value and feasibility of the project. The bottom line is that a well-constructed business case serves as a critical communication tool, articulating why a particular project should be approved and supported by decision-makers.

While other options may contain relevant information, they do not capture the essence of what a business case fundamentally provides. A breakdown of project costs alone is too narrow; it is just one piece of a broader argument laid out in a business case. An overview of the company's financials is also more comprehensive than necessary, as the focus of a business case is specifically on the proposed project rather than the company's overall financial status. Lastly, while a strategic plan for future projects may influence decision-making, it does not serve the primary purpose of a business case, which is to justify a specific initiative.

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