PRINCE2 – Foundation Exam Exam

Which approach is taken to determine the project's initial feasibility during the Starting Up a Project process?

1. Market analysis

2. Risk assessment

3. Business justification

4. Stakeholder interests

The correct answer is: Business justification

The approach used to determine the project's initial feasibility during the Starting Up a Project process is business justification. This process involves assessing whether a project is worth undertaking based on its alignment with organizational goals, expected benefits, and the investment required. The focus is on understanding the rationale behind the project, ensuring that it addresses a genuine business need and will generate sufficient value to justify its initiation. Establishing business justification involves developing a business case that outlines the potential advantages, cost implications, and risks associated with the project. This case serves as a critical reference point for stakeholders to evaluate the project's purpose and the expected outcomes. While market analysis, risk assessment, and stakeholder interests are all important aspects of project management, they are part of broader planning and evaluation processes that may come after the initial justification has been established. Business justification specifically prioritizes clarifying the fundamental purpose of the project and its expected contributions to the organization, making it the central focus during the initial feasibility assessment in the Starting Up a Project phase.