What formally authorizes the existence of a project?

• A. Project Charter
• B. Contract
• C. Statement of Work
• D. Business Case

Answer: (A)

The formal authorization to start a project is established by the project charter. This document officially grants the project manager the authority to apply organizational resources and begin work. It marks the official recognition of the project, outlining high‑level objectives, key stakeholders, success criteria, constraints, and initial risks. It is usually issued by the project sponsor or the governing authority, signaling commitment to proceed. A contract is an external agreement with a supplier or partner; a Statement of Work describes the specific tasks and deliverables to be performed—often tied to a contract; a Business Case explains why the project should be undertaken, justifying benefits and costs. Among these, the project charter is the formal document that authorizes the project’s existence and empowers the project team to move forward.