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Phase gates are governance checkpoints where executives and key stakeholders review performance, risks, compliance, and updated forecasts to determine go/no-go/hold decisions. The goal is to ensure the initiative still aligns with strategy and the business case before committing further resources. Option A confuses gating with transition to operations, which may or may not occur at a gate. Option C prescribes a one-size-fits-all deliverable; gates are tailored by lifecycle and industry—design finalization may be a criterion in some contexts but is not universal. Option D is not a standard gate outcome. CAPM fundamentals emphasize tailoring governance: define entry/exit criteria, required artifacts (e.g., updated benefits forecast, risk profile), and decision rights. Effective gates increase portfolio discipline—failing fast when needed, redirecting scope, or adding controls. They also clarify expectations for teams, reducing churn by aligning on what “readiness” looks like before moving forward.