Certified Business Analysis Professional (CBAP) — Question 352

As a milestone is reached, the project is funded for enough capital to reach the next milestone.
This approach is called _________.

Answer options

• A. Step funding
• B. Phase funding
• C. Stakeholders funding
• D. Milestone funding

Correct answer: A

Explanation

The correct answer is 'Step funding' as it specifically refers to providing financial resources at different stages of a project based on achieving milestones. 'Phase funding' generally relates to broader project phases rather than individual milestones, while 'Stakeholders funding' and 'Milestone funding' do not accurately describe the segmented funding approach that 'Step funding' represents.