CBAP · Question #142
As a milestone is reached, the project is funded for enough capital to reach the next milestone. This approach is called _________.
The correct answer is A. Step funding. Step funding is the practice of releasing project capital incrementally as each milestone is achieved, tying continued investment to demonstrated progress.
Question
As a milestone is reached, the project is funded for enough capital to reach the next milestone. This approach is called _________.
Options
- AStep funding
- BPhase funding
- CStakeholders funding
- DMilestone funding
How the community answered
(50 responses)- A74% (37)
- B4% (2)
- C8% (4)
- D14% (7)
Why each option
Step funding is the practice of releasing project capital incrementally as each milestone is achieved, tying continued investment to demonstrated progress.
Step funding structures financial releases as discrete steps tied to milestone completion, meaning the project receives only enough capital to reach the next defined checkpoint. This approach reduces investor risk by ensuring funds are only released when progress is verified. It is the standard term used in project finance and IT project management for this incremental funding model.
Phase funding broadly refers to funding tied to project phases, but it is not the specific term for milestone-gated capital release.
Stakeholder funding describes the source of funding (from stakeholders), not the incremental release mechanism.
Milestone funding is an informal or colloquial description; the recognized project management term for this practice is step funding.
Concept tested: Step funding incremental capital release strategy
Source: https://www.comptia.org/certifications/project
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