Which term describes the justification for a proposed business action based on its benefits and costs?

The justification for a proposed business action based on its benefits and costs is best described by the term "business case." A business case provides a comprehensive analysis that outlines the rationale for undertaking a particular project, demonstrating its potential value by comparing the expected benefits to the associated costs and risks. It serves as a foundational document that helps stakeholders understand how the initiative aligns with organizational goals, ensuring that the decision to proceed is informed and justified by tangible advantages.

In terms of context, a business model refers to the framework through which a business creates, delivers, and captures value, focusing more on the overall structure of the business rather than the justification for specific actions. A business objective typically describes specific, measurable goals an organization aims to achieve, guiding performance but not necessarily encompassing a cost-benefit analysis. A strategic initiative refers to a significant action or project aimed at achieving a particular strategic goal; however, it does not inherently include the justification based on benefits versus costs that is central to a business case.