BCS BAPV5 BCS Practitioner Certificate in Business Analysis Practice v5.0 Online Training

Question #19

The board of Jackson Holding wants to save money on its purchases by introducing a new procurements system Before preparing the business case, what activity would it be BEST to undertake?

A . Prepare a Feasibility Study
B . Select a procurement solution
C . Approve the budget for the new system
D . Prepare a Benefits Realisation Report

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Correct Answer: A
A

Explanation:

A Feasibility Study is an assessment of whether a proposed business change or solution is viable and worthwhile. It helps to evaluate the benefits, costs, risks and constraints of different options and recommend the best one for further development. Therefore, option A is the correct answer, as preparing a Feasibility Study would be the best activity to undertake before preparing a business case for introducing a new procurement system. A Feasibility Study would help to identify and compare different procurement solutions based on their technical, operational, economic, legal and social feasibility. It would also help to estimate their expected benefits, costs, risks and impacts on the organisation and its stakeholders. A Feasibility Study would provide a solid foundation for preparing a business case that justifies why a particular procurement solution should be selected and implemented. Option B is not a correct answer, as selecting a procurement solution would not be an appropriate activity to undertake before preparing a business case. Selecting a procurement solution would require conducting a Feasibility Study first to evaluate different options and choose the best one based on objective criteria. Selecting a procurement solution without conducting a Feasibility Study would risk choosing an unsuitable or suboptimal solution that may not meet the organisation’s needs or objectives. Option C is not a correct answer, as approving the budget for the new system would not be an appropriate activity to undertake before preparing a business case. Approving the budget for the new system would require preparing a business case first to estimate the costs and benefits of different options and justify why a particular option should be funded and implemented. Approving the budget for the new system without preparing a business case would risk allocating insufficient or excessive funds that may not reflect the value or feasibility of the solution. Option D is not a correct answer, as preparing a Benefits Realisation Report would not be an appropriate activity to undertake before preparing a business case. Preparing a Benefits Realisation Report would require implementing the new system first to measure and evaluate its actual benefits against its expected benefits. Preparing a Benefits Realisation Report without preparing a business case would risk implementing an ineffective or inefficient solution that may not deliver the desired outcomes or benefits.

Reference: BCS Practitioner Certificate in BAP Specimen, page 29.

Question #22

The threat posed to the organisation from cyber attack, and therefore the justification for this project, needs to be clearly articulated

Which THREE sections of a business case will cover these points’?

A . Options considered
B . Analysis of costs and benefits
C . Description of the current situation
D . Recommendations
E . Risk assessment

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Question #23

A business case is being created for a new. automated auditing system that will improve the IT department’s ability to record and monitor all the computing devices used across the organisation The sponsor of the project is keen to get a better idea of the financial implications of the project and

has asked for the simplest calculation possible This calculation should consider the tangible costs and tangible benefits of the project, as well as showing when it will have saved the department as much money as it has cost.

Which of the following investment appraisal calculations has the sponsor asked for?

A . Payback calculation
B . Net present value
C . Internal rate of return
D . Discounted cash flow

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Correct Answer: A
A

Explanation:

An investment appraisal calculation is a technique for assessing whether a proposed business change or solution is financially viable and worthwhile. It helps to compare the costs and benefits of different options and select the best one based on objective criteria. There are different types of investment appraisal calculations, such as payback calculation, net present value, internal rate of return and discounted cash flow. Therefore, option A is the correct answer, as payback calculation is the simplest investment appraisal calculation that considers the tangible costs and benefits of a project, as well as showing when it will have saved as much money as it has cost. Payback calculation measures how long it will take for a project to recover its initial investment by comparing its cumulative cash inflows with its cumulative cash outflows over time. It helps to show how quickly a project will break even or generate profit. Option B is not a correct answer, as net present value is not the simplest investment appraisal calculation that considers only tangible costs and benefits. Net present value measures how much value a project will add or subtract from an organisation by comparing its present value of cash inflows with its present value of cash outflows over time. It helps to show how profitable a project will be in today’s terms. Net present value requires discounting future cash flows using an appropriate discount rate, which adds complexity to the calculation. Option C is not a correct answer, as internal rate of return is not the simplest investment appraisal calculation that considers only tangible costs and benefits. Internal rate of return measures how efficient a project is by calculating its annualised effective compounded return rate or rate of growth over time. It helps to show how attractive a project is compared to other investment opportunities. Internal rate of return requires finding an unknown discount rate that makes net present value equal to zero, which adds complexity to the calculation. Option D is not a correct answer, as discounted cash flow is not an investment appraisal calculation itself, but a method for estimating future cash flows by applying an appropriate discount rate to reflect their present value. Discounted cash flow can be used in other investment appraisal calculations, such as net present value or internal rate of return.

Reference: BCS Practitioner Certificate in BAP Specimen, page 31.

Question #24

As pari of a strategic review for a recording company, Exquisite Analogue, Jay has been asked to undertake a resource audit As a result of him meeting with key stakeholders he has compiled a list of statements

Which THREE of the following SHOULD be included in the resource audit?

A . There are two recording studios, one in London and one in Pans
B . In the back catalogue there are 20,000 analogue recordings
C . Recent awards include Vinyl magazines ‘Customers Choice Award’.
D . An offer has been made to purchase the company by a larger competitor
E . Imminent tax changes may impact profitability

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Question #25

The directors of Swift Despatch believe they might be able to improve their service and reduce costs by opening a distribution centre in Coventry A team has been created to investigate this further, including representatives of logistics, property and marketing Yasmin has been asked to advise on how the Business Case should be progressed at this point.

What SHOULD she advise?

A . Create a high level Business Case
B . Create a detailed Business Case
C . It is too early to work on the Business Case
D . Confirm with the directors the costs and benefits

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Correct Answer: A
A

Explanation:

A high level Business Case is a document that provides a preliminary rationale and justification for a proposed business change or solution. It helps to establish the feasibility and desirability of the project and secure initial approval and funding for further investigation and development. Therefore, option A is the correct answer, as creating a high level Business Case would be the best activity to undertake at this point for introducing a new procurement system. A high level Business Case would help to define the problem or opportunity that motivates the project, identify and compare different procurement solutions based on their expected benefits, costs, risks and impacts, and recommend the preferred option for further analysis and evaluation. A high level Business Case would provide a solid foundation for proceeding with the project and preparing a detailed Business Case later on.

Option B is not a correct answer, as creating a detailed Business Case would not be an appropriate activity to undertake at this point for introducing a new procurement system. A detailed Business Case is a document that provides a comprehensive rationale and justification for a proposed business change or solution. It helps to confirm the viability and worthiness of the project and secure final approval and funding for implementation and delivery. A detailed Business Case would require conducting extensive research and analysis on the preferred procurement solution and presenting its definitive benefits, costs, risks and impacts. A detailed Business Case would be premature and unnecessary at this point, as it would depend on the outcome of the high level Business Case first. Option C is not a correct answer, as it is too early to work on the Business Case would not be an appropriate activity to undertake at this point for introducing a new procurement system. Working on the Business Case is an essential activity for any project that involves significant business change or investment. It helps to provide evidence and support for the project and ensure its alignment with the organisation’s strategy and objectives. Working on the Business Case would not be too early at this point, as it would help to establish the feasibility and desirability of the project and secure initial approval and funding for further investigation and development. Option D is not a correct answer, as confirming with the directors the costs and benefits would not be an appropriate activity to undertake at this point for introducing a new procurement system. Confirming with the directors the costs and benefits would require preparing a high level Business Case first to estimate and compare the financial implications of different options and recommend the best one for further development and implementation. Confirming with the directors the costs and benefits without preparing a high level Business Case first would risk providing inaccurate or incomplete information that may not reflect the value or feasibility of the project.

Reference: BCS Practitioner Certificate in BAP Specimen, page 33.

Question #26

Imani has been asked to prepare a SWOT analysis for her company, which sells van insurance Her investigation has revealed that. The company is a UK-based company which sells insurance in the UK and Ireland. The recent increase in home shopping has led to a corresponding increase in delivery drivers and vehicles across both markets However, the call centre, which serves both markets, has not been able to deal with the large influx of calls this has resulted in It is unclear whether in the longer term the call centre capacity needs to be expanded due to customers moving to digital channels and new regulatory hurdles, following Brexit. to trading in Ireland.

Which THREE of the following SHOULD be included in the SWOT analysis?

A . Opportunity
B . Weakness
C . Threat
D . Strength
E . Technology

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Correct Answer: ABC
ABC

Explanation:

A SWOT analysis is a technique for identifying and evaluating the strengths, weaknesses, opportunities and threats that affect an organisation or project. It helps to assess the internal and external factors that influence the performance and potential of the organisation or project. Therefore, options A, B and C are correct answers, as they should be included in the SWOT analysis for the company that sells van insurance. They describe different types of factors that affect the company’s situation and prospects. Option A describes an opportunity, which is a favourable or advantageous circumstance or situation that arises from the external environment and that can be exploited to achieve the objectives of the organisation or project. An example of an opportunity is the increase in home shopping, which has led to an increase in delivery drivers and vehicles across both markets. This creates a potential demand for van insurance that the company can cater to. Option B describes a weakness, which is a negative or unfavourable characteristic or situation that arises from the internal environment and that can hinder or prevent the achievement of the objectives of the organisation or project. An example of a weakness is the inability of the call centre to deal with the large influx of calls, which may result in poor customer service, dissatisfaction and loss of business. Option C describes a threat, which is a harmful or adverse circumstance or situation that arises from the external environment and that can endanger or damage the achievement of the objectives of the organisation or project. An example of a threat is the new regulatory hurdles following Brexit, which may affect the company’s ability to trade in Ireland and reduce its market share and revenue. Option D is not a correct answer, as strength is not a factor that has been discovered in the investigation for the SWOT analysis. A strength is a positive or favourable characteristic or situation that arises from the internal environment and that can facilitate or enhance the achievement of the objectives of the organisation or project. Option E is not a correct answer, as technology is not a type of factor that can be included in a SWOT analysis. Technology is an aspect of the external environment that can affect an organisation or project positively or negatively, depending on how it is used or adapted to.

Reference: BCS Practitioner Certificate in BAP Specimen, page 34.

Question #27

A PESTLE analysis is being conducted for a small manufacturing company The following has been discovered.

The company’s electricity provider is planning changes to the way in which electricity usage is calculated, it is likely that this will lead to increased electricity costs.

An amendment to the Data Protection Act has recently been introduced It states that information held about employees’ payroll can now be held for more than six years, as long as the individual remains an employee

How will this information be categorised in the PESTLE analysis? Select the TWO that apply

A . Legal
B . Economic
C . Political
D . Technological
E . Environmental.

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Correct Answer: AB
AB

Explanation:

A PESTLE analysis is a technique for identifying and evaluating the political, economic, social, technological, legal and environmental factors that affect an organisation or project. It helps to assess the opportunities and threats that arise from the external environment. Therefore, options A and B are correct answers, as they are categories of factors that can be included in a PESTLE analysis for a small manufacturing company. They describe different aspects of the external environment that influence the company’s situation and prospects. Option A describes a legal factor, which is a factor related to laws, regulations, standards or policies that govern an organisation or project. An example of a legal factor is an amendment to the Data Protection Act, which affects how information about employees’ payroll can be held by an organisation. Option B describes an economic factor, which is a factor related to money, markets, trade or resources that affect an organisation or project. An example of an economic factor is a change in electricity usage calculation by an electricity provider, which affects how much electricity costs for an organisation. Option C is not a correct answer, as political is not a factor that has been discovered in the investigation for the PESTLE analysis. A political factor is a factor related to government, politics, power or conflict that affect an organisation or project. Option D is not a correct answer, as technological is not a factor that has been discovered in the investigation for the PESTLE analysis. A technological factor is a factor related to science, innovation, invention or discovery that affect an organisation or project. Option E is not a correct answer, as environmental is not a factor that has been discovered in the investigation for the PESTLE analysis. An environmental factor is a factor related to nature, ecology, climate or geography that affect an organisation or project.

Reference: BCS Practitioner Certificate in BAP Specimen, page 35.