International Project Management Association (IPMA) Practice Exam

What is the primary purpose of a project charter?

1. To outline the project scope in detail

2. To gain formal approval for the project

3. To manage the project's budget

4. To establish project team roles

The correct answer is: To gain formal approval for the project

The primary purpose of a project charter is to gain formal approval for the project. This document serves as an essential foundational element in project management, as it officially authorizes the existence of the project and empowers the project manager to apply organizational resources to project activities. By obtaining formal approval, the charter also aligns stakeholders, ensuring that there is a shared understanding of the project's objectives, scope, and impact. While outlining the project scope in detail, managing the budget, and establishing team roles are all relevant aspects of project management, they are not the main goal of the project charter. Instead, these elements typically develop later in the project planning phase when project planners expand upon the initial authorization provided by the charter. The charter acts as the critical first step that not only legitimizes the project but also provides a high-level overview that later documents will refine and elaborate upon.