Quick Answer
The correct answer is high-level risks and business need. In the CompTIA Project+ PK0-005 exam, the project charter serves as the formal authorization to begin a project, granting the project manager authority to use organizational resources. The business need is a core component because it justifies the project’s existence by linking it to strategic goals, while high-level risks are included to flag potential uncertainties early without requiring detailed analysis—keeping the charter a broad overview. This question tests your ability to distinguish charter essentials from detailed planning documents like the project management plan. A common trap is confusing the business case (a separate pre-charter document) with the business need, or mistaking detailed risk registers for high-level risks. Memory tip: think “BNR” for Business Need and high-level Risks—the two components that answer “why” and “what might go wrong” at the start.
This PK0-005 practice question tests your understanding of tools and documentation. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project manager is creating a project charter. Which TWO components are typically included in a project charter? (Choose two.)
Detailed budget
Why wrong: Detailed budget is developed later in planning.
Business need
Business need justifies the project and is included in the charter.
Task assignments
Why wrong: Task assignments are defined in the project plan.
Communication plan
Why wrong: Communication plan is a separate document.
High-level risks
High-level risks are identified in the charter.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Business need
The project charter is a high-level document that authorizes the project and provides the project manager with the authority to apply organizational resources. The business need (option B) is a core component because it justifies why the project is being undertaken, linking it to organizational strategy. High-level risks (option E) are also included to identify potential uncertainties at the outset, without requiring detailed analysis, which aligns with the charter's purpose of providing a broad overview.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Detailed budget
Why it's wrong here
Detailed budget is developed later in planning.
Business need
Why this is correct
Business need justifies the project and is included in the charter.
Related concept
Read the scenario before looking for a memorised answer.
Task assignments
Why it's wrong here
Task assignments are defined in the project plan.
Communication plan
Why it's wrong here
Communication plan is a separate document.
High-level risks
Why this is correct
High-level risks are identified in the charter.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Cisco often tests the distinction between high-level and detailed components, so the trap here is that candidates confuse the project charter with the project management plan, selecting detailed items like budget or communication plan that belong to later phases.
Detailed technical explanation
The project charter is defined by the PMBOK Guide as the document that formally authorizes a project, and it typically includes the business case, high-level scope, milestones, and key risks. In practice, the business need is often derived from a feasibility study or strategic objective, while high-level risks are identified using techniques like brainstorming or SWOT analysis, but not yet quantified. A real-world scenario is a company launching a new software product: the charter would state the market demand (business need) and list risks like technology obsolescence or resource shortages, without detailing mitigation plans.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PK0-005 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Tools and Documentation — This question tests Tools and Documentation — Read the scenario before looking for a memorised answer..
The correct answer is: Business need — The project charter is a high-level document that authorizes the project and provides the project manager with the authority to apply organizational resources. The business need (option B) is a core component because it justifies why the project is being undertaken, linking it to organizational strategy. High-level risks (option E) are also included to identify potential uncertainties at the outset, without requiring detailed analysis, which aligns with the charter's purpose of providing a broad overview.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.
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