International Project Management Association (IPMA) Practice Exam

A project charter is:

1. An expression of management's commitment to the project

2. Normally issued by the project manager

3. Used mostly when dealing with potential sellers of long-lead-time items

4. One of the key outputs of projects planning

The correct answer is: An expression of management's commitment to the project

A project charter is fundamentally an expression of management's commitment to the project. This document formally authorizes the project, grants the project manager the authority to utilize organizational resources for project activities, and outlines the project's objectives, scope, stakeholders, and key deliverables. It serves as a foundational element ensuring that all stakeholders understand the project's intent and the support it has from upper management, which is crucial for aligning expectations and fostering accountability. The other options do not accurately reflect the primary function of the project charter. While the project manager may play a role in developing the charter, it is typically issued by higher management to convey their commitment. The charter does not primarily focus on long-lead-time sellers; instead, that aspect is more related to specific procurement documents. Additionally, while the project charter is a critical document in the project initiation phase, it is not classified as an output of project planning but rather a prerequisite that forms the basis for subsequent planning processes. Understanding these distinctions emphasizes the charter's importance in affirming management's support and the foundational role it plays in aligning project objectives with organizational goals.