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The project charter formally authorizes the project and grants the project manager authority to apply organizational resources to project activities. Typically issued by a sponsor or initiating entity, it summarizes the business need, high-level scope, key milestones, budget summary, stakeholders, and success criteria. It is not a detailed plan (Option A); the project management plan and its subsidiary plans define how the work will be executed and controlled. It is not a contract with the team (Option C), though it clarifies roles at a high level. Nor is it the Benefits Management Plan (Option D), which details how benefits will be tracked and realized post-delivery. For the CAPM, understanding the charter’s role during initiation is essential: it aligns expectations early, prevents scope drift by articulating objectives, and provides a reference for decision-making when trade-offs arise. The charter also catalyzes stakeholder identification and sets the stage for tailoring governance appropriate to the project’s complexity and risk profile.