What does a Project Charter do with respect to the information in the Proposal?

• A. It replaces the proposal with a new plan
• B. It carries forward the information from the proposal and makes it more formal/detailed
• C. It defines only the project risks
• D. It serves as a vendor contract

Answer: (B)

The project charter formalizes authorization and turns the proposal’s content into a structured, approved plan. It carries forward the information from the proposal—purpose, goals, stakeholders, and the envisioned scope—while adding the detail and formality needed to authorize and guide the work. It defines measurable objectives, high-level requirements, key milestones, and an estimated budget and resources. It also identifies roles (sponsor and project manager), high-level risks, constraints, and assumptions, plus basic governance arrangements. With these elements, the charter officially approves the project to proceed and provides a baseline for planning and execution. It’s not a replacement for the proposal, not focused solely on risks, and not a vendor contract.