CAPM Predictive Plan-Based Methodologies Practice Question
Which document formally authorizes the project and provides the project manager with the authority to apply organizational resources to project activities?
⚠ Common exam trap
The trap is confusing the project charter with the business case or project management plan — candidates must remember that only the charter formally authorizes the project and grants the PM authority.
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
✓
Project charter
The project charter is the document that formally authorizes the project and gives the project manager the authority to apply organizational resources to project activities. It is issued by the project sponsor or initiating entity and serves as the project's official start.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
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 apply organisational resources to project activities. It is issued by the sponsor, satisfying the stem's requirement for formal authorisation and resource authority.
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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 authorise the project or grant resource authority. It is created after the charter, so it suits planning integration baselines, not the initiating document that formally names the project manager.
- ✗
Business case
Why it's wrong here
A business case justifies the investment and compares options, but it neither authorises the project nor grants resource authority. It precedes the charter during pre-project analysis; the charter is the document that formally initiates the project and empowers the project manager.
- ✗
Project scope statement
Why it's wrong here
The scope statement details deliverables, boundaries and acceptance criteria, but confers no authority over organisational resources. It is produced during planning to control scope creep, whereas the project charter is the initiating document that formally authorises the project and names the project manager.
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Same concept, more angles
1 more way this is tested on CAPM
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which document formally authorizes the project manager to use organizational resources to execute the project?
easy- ✓ A.Project charter
- B.Business case
- C.Scope statement
- D.Project management plan
Why A: 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 project's official 'birth certificate.' Without a charter, the project manager lacks the formal power to commit resources or make decisions on behalf of the project.
JA
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.