Professional in Human Resources (PHR) Practice Exam

A Business Case serves as a foundational document that outlines an organizational challenge and proposes potential solutions. It is designed to justify the need for change or investment by detailing the problem at hand, analyzing the potential benefits and risks of proposed solutions, and presenting data to support the recommendations. This structured approach helps stakeholders understand the reasons for initiating a project, the expected outcomes, and the overall value it will bring to the organization.

In contrast, while a historical analysis of company performance, a balance sheet overview, and a proposal for new amendments might provide relevant information or context, they do not fulfill the primary purpose of a Business Case. Instead, those options focus on past performance, financial positioning, or specific changes, which are components that may inform a Business Case but do not encompass its essential purpose of addressing organizational challenges and suggesting actionable solutions.