What is the primary purpose of a Project Charter?

The primary purpose of a Project Charter is to formally authorize a project and outline key stakeholders and objectives. The Project Charter serves as a foundational document that establishes the existence of the project and provides a clear direction for what the project aims to achieve. It is a critical communication tool that aligns the expectations of stakeholders and the project team, ensuring that everyone understands the scope, purpose, and goals of the project at the outset.

By consolidating key information such as the project's objectives, high-level requirements, assumptions, risks, and stakeholder lists, a Project Charter establishes a shared understanding of the project's intent and framework. This formal authorization is crucial as it often comes from a project sponsor or governance board, signaling that the project can proceed with allocated resources.

The other choices address important aspects of project management but do not capture the overarching purpose of a Project Charter. Tracking project expenses, evaluating project success, and assigning team roles are all critical activities within project management but are operational in nature and happen after the project's authorization. These functions rely on the foundation that the Project Charter provides, which is why the second choice is the most accurate answer.