CAPM (Certified Associate in Project Management) Practice Exam

What is the project charter?

1. A detailed budget report

2. An agreement between the sponsor and the project manager

3. A list of project objectives and goals

4. A certification document for project approval

The correct answer is: An agreement between the sponsor and the project manager

A project charter is a document that formally authorizes a project and outlines its objectives, scope, risks, and key stakeholders. It serves as a high-level agreement between the project sponsor (the person or entity funding the project) and the project manager (the person responsible for executing the project). It is not a detailed budget report (A), as specific budget details are typically outlined in a separate document such as a project plan. While a list of project objectives and goals (C) may be included in a project charter, it is not the sole purpose of this document. Additionally, a project charter is not a certification document (D) for project approval, as it is typically created and approved before a project is officially launched. Therefore, the correct answer is B.