What is a business case?

A business case serves as a critical document that provides a justification for initiating a project by detailing its potential benefits, anticipated costs, risks, and overall value to the organization. It acts as a foundation for decision-making by stakeholders, illustrating why a project should be pursued in alignment with the organization’s strategic goals. The business case outlines not just the financial implications but also the broader impact of the project, such as improvements in efficiency, customer satisfaction, or competitive advantage.

In contrast, a document outlining legal obligations pertains more narrowly to contractual and regulatory frameworks, failing to provide the comprehensive rationale needed for project approval. A report on project team performance focuses specifically on evaluating how a project team is functioning rather than addressing the broader context of why a project should start. Lastly, a summary of daily operations within a department does not relate to project initiation or justification, as it centers on the routine activities rather than strategic project development. Thus, the selected answer accurately encapsulates the essence and purpose of a business case in project management.