CIPS Level 4 Diploma in Procurement and Supply L4M2 Question # 50 Topic 6 Discussion
L4M2 Exam Topic 6 Question 50 Discussion:
Question #: 50
Topic #: 6
John has been asked to develop a business case before obtaining approval to purchase a large piece of capital equipment for a glove manufacturing unit. Is this the right thing to do?
A.
Yes, because this will help compare alternatives and options
B.
No, because risk consideration is not John's responsibility
C.
Yes, because this will assist the purchase order
D.
No, because this can lead to business-focused thinking
Detailed Explanation:A business case allows for the evaluation of alternatives and ensures alignment with strategic goals. It also assesses risks, benefits, and financial impact, providing a comprehensive basis for decision-making. Reference: CIPS Level 4, Capital Expenditure and Business Case Development.
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