Is this a correct application of the ‘continued business justification’ principle, and why?


ABC Company produces a corporate business plan which includes the targets for the next 12 months. For the Health and Safety Training Project, a feasibility study was carried out and, as a result, the expected sales were included in this plan. During the ‘starting up a project’ process, the executive advised the project manager that the corporate business plan provides sufficient justification to initiate the project.

Is this a correct application of the ‘continued business justification’ principle, and why?
A . Yes, because the executive is responsible for the project’s continued business justification.
B . Yes, because the business justification needs to be recorded and approved in some form.
C . No, because the feasibility study provides sufficient business justification for the project.
D . No, because business justification is not required until the ‘initiating a project’ process.

Answer: A

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