According to ISTQB and the Business Analysis Body of Knowledge (BABOK) standards, the terms business goals, business needs, and requirements are related but represent different levels of abstraction in defining what an organization aims to achieve.
Business Goals represent the high-level strategic objectives an organization wants to accomplish. These are broad statements of intent and typically reflect long-term ambitions.
Business Needs specify what the business must address to meet its goals; these are more focused descriptions of the problems or opportunities that justify the business change. They provide a rationale for why a project or initiative is undertaken.
Requirements are detailed specifications that describe the features, functions, or qualities the solution must have to fulfill the business needs.
The relationship is hierarchical and increasingly specific: business goals set the overarching purpose, business needs interpret these goals into actionable problem statements or opportunities, and requirements specify the solution details.
ISTQB glossary and syllabus excerpts confirm this layered approach, clarifying that these terms are not synonymous but instead describe the same concept at varying levels of detail and abstraction. Therefore, option B best captures this nuanced relationship.
Exact Extract from ISTQB Foundation Level Syllabus (Business Analysis Section):
"Business goals, business needs, and requirements describe, at different levels of abstraction, what shall be achieved by the business change. Business goals are high-level statements; business needs are statements of problems or opportunities to be addressed, and requirements define the detailed attributes of the solution to meet those needs."
