What is the primary purpose of a project charter?

• A. To estimate the project's overall cost
• B. To document the project objectives, scope, and stakeholders
• C. To analyze competitors in the market
• D. To measure employee performance

Answer: (B)

The primary purpose of a project charter is to document the project objectives, scope, and stakeholders. A project charter serves as a foundational document that officially initiates a project and outlines its essential elements. It provides clarity about what the project seeks to achieve, defines the scope of work, identifies key stakeholders involved, and sets the framework for decision-making throughout the project lifecycle. By capturing these critical details early on, it helps ensure all stakeholders have a shared understanding of the project's goals and constraints, facilitating better communication and alignment.

In contrast, estimating the project's overall cost is just one component of the project planning process and not the purpose of the charter itself. Analyzing competitors in the market typically pertains to market research and strategic planning rather than the specific aims of a project charter. Similarly, measuring employee performance is related to human resources and staff management, which falls outside the scope of what a project charter addresses. Each of these functions is important in its own right, but they do not reflect the core intention behind creating a project charter.