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PMP People — Leading Projects Practice Question
Arrange the steps for developing a project charter in the correct order.
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
Step 1: Identify the sponsor, Step 2: Define the business case, Step 3: Draft the charter, Step 4: Obtain approval, Step 5: Communicate the charter.
The project charter is developed by identifying the sponsor, defining the business case, drafting the charter, obtaining approval, and then communicating it.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Step 1: Identify the sponsor, Step 2: Define the business case, Step 3: Draft the charter, Step 4: Obtain approval, Step 5: Communicate the charter.
Why this is correct
This sequence correctly outlines the logical progression for project initiation. Identifying the sponsor first establishes the necessary authority and secures executive backing. This enables the formal development of a robust business case, which justifies the project's existence and strategic alignment. Subsequently, the project charter can be drafted, formalizing the project's high-level scope and objectives, before being formally approved by the sponsor, granting official authorization. Finally, communicating the approved charter ensures all stakeholders are aware of the project's mandate and the Project Manager's authority.
- ✗
Step 1: Define the business case, Step 2: Identify the sponsor, Step 3: Draft the charter, Step 4: Obtain approval, Step 5: Communicate the charter.
Why it's wrong here
This order is incorrect because defining the business case typically requires the explicit authorization and strategic direction from a project sponsor. Without an identified sponsor to champion the initiative and provide executive oversight, the business case might lack organizational alignment, strategic relevance, or the necessary resources for its development. The sponsor's early involvement ensures the business case addresses genuine organizational needs and has the foundational support required for project progression.
- ✗
Step 1: Identify the sponsor, Step 2: Define the business case, Step 3: Draft the charter, Step 4: Communicate the charter, Step 5: Obtain approval.
Why it's wrong here
This option is incorrect because obtaining formal approval for the project charter must precede its communication to stakeholders. Communicating an unapproved charter risks disseminating information that is not yet finalized or officially sanctioned, potentially leading to confusion, misaligned expectations, or a lack of commitment from stakeholders if subsequent changes are mandated during the approval process. Formal approval provides legitimacy and ensures the project's mandate is officially recognized before broader dissemination.
- ✗
Step 1: Draft the charter, Step 2: Identify the sponsor, Step 3: Define the business case, Step 4: Obtain approval, Step 5: Communicate the charter.
Why it's wrong here
This sequence is incorrect because drafting the project charter is a synthesis activity that relies on foundational information, specifically the identified sponsor's authority and the details within the business case. Attempting to draft the charter without first establishing who is sponsoring the project and without a clear, justified business case would result in a speculative, incomplete, and likely invalid document. The charter formalizes what has already been strategically decided and justified, not initiates it.
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