CAPM Practice Question: Project Management Fundamentals and Core Concepts
Which document formally authorizes the project and provides the project manager with authority to apply organizational resources?
⚠ Common exam trap
CAPM often tests the distinction between the project charter and the business case, as both are early documents, but only the charter formally authorizes the project and grants authority to the project manager.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Project charter
The project charter is the document that formally authorizes the existence of a project and gives the project manager the authority to apply organizational resources to project activities. It is typically issued by the project sponsor or initiator and serves as the foundation for the project management plan. Without a charter, the project manager lacks the formal power to assign resources and execute the project.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Project charter
Why this is correct
The project charter is the document that formally authorises the project's existence and grants the project manager authority to commit organisational resources. Business cases and plans lack that sanctioning power, so the charter uniquely satisfies the stem's requirement for formal authorisation and resource authority.
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Business case
Why it's wrong here
A business case justifies the investment and expected benefits but grants no formal authority over organisational resources. It is the right document when deciding whether a project should proceed, preceding the authorisation that actually charters it.
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Project management plan
Why it's wrong here
The project management plan describes how the project will be executed, monitored and closed; it does not confer authorisation or resource authority. It is the correct reference once the project is authorised and planning artefacts are being integrated.
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Stakeholder register
Why it's wrong here
A stakeholder register records identified people, their interests and influence; it grants no authority over resources. The project charter is the document that formally authorises the project and empowers the project manager. The register is tempting because it is a genuine PMBOK artefact produced during initiation, but its purpose is stakeholder analysis, not authorisation.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PMI exam blueprint
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.