Exam Question: What is the purpose of a project charter?

What is the purpose of a project charter?

Select the best response:

1) To formally authorize a project or a phase and document initial requirements which satisfy the stakeholder’s needs and expectations.

2) To document how the project will be planned, executed, monitored/controlled and closed.

3) To link the project, which is going to be planned, executed, and monitored/controlled to the ongoing work of the organization.

4) To describe the process the process of performing the work defined in the project management plan in order to achieve the project’s objectives.

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Answer: (1)


A project charter is a key process that commences any project. It ensures that the project is aligned in such a manner to fulfill its envisaged goals and that it integrates into the organization’s strategic plans. In essence it formally authorizes the existence of a project and acknowledges that the project has an active sponsor, who is in charge for issuing the charter. In addition, it formally recognizes and grants the project manager the authority to utilize organizational resources to the project activities.

The sponsor or initiator is usually someone external to the project implementation who has authority since he/she funds the project. The extent that the project manager can apply organizational resources is usually spelt out in the project charter. The charter hence spells out the limits and powers of the project manager when it comes to resource utilization. In conclusion, the project charter is a formal authorization document issued by the sponsor that acknowledges that the project satisfies their needs and expectations.


Question courtesy of http://www.oliverlehmann.com/contents/free-downloads/175_PMP_Sample_Questions.pdf. Explanation/justification copyright Planthat.com, 2012, all rights reserved.

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