PRINCE2 – Foundation Exam Exam

Which characteristic signifies the temporary nature of a project?

1. It is financially sponsored

2. It has a defined duration

3. It involves multiple stakeholders

4. It requires a permanent team

The correct answer is: It has a defined duration

The characteristic that signifies the temporary nature of a project is that it has a defined duration. Projects are inherently temporary endeavors with a specific beginning and end. This aspect distinguishes projects from ongoing operations or processes, which do not have a predetermined end date. A defined duration means that there is a clear timeline for when the project is expected to start and finish, which is crucial for setting objectives, allocating resources, and assessing progress. This characteristic ensures that all stakeholders understand that the project will be completed once its objectives have been achieved, and it will not continue indefinitely. The other characteristics, while relevant to projects, do not inherently indicate their temporary nature. Financial sponsorship and involving multiple stakeholders can also apply to ongoing operations or programs. Similarly, the requirement for a permanent team is contrary to the definition of a project, which is meant to utilize temporary resources to achieve specific goals. Therefore, having a defined duration is key to understanding the project’s temporary nature.