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Where was the question from? It is more like a Prince2 question- see the answer here
The project charter authorizes the project and includes its scope, goals, objectives, participants, roles, and responsibilities, etc. It empowers the project manager and acts as his/her passport to enter domains with proxy power of the signatories.
If the business case is NOT done, then the charter is likely ambiguous, therefore dithering its value proposition across the board. To state it differently, the charter provides "marching orders," and without the input of the business case, the question then becomes, "Where are you marching to?" Having such a question open after the charter means you are at risk of a project reset.
Now, if I was to "read into" your setup, I would view the sponsor as viewing themselves as the "expert." This may well be, but formal project mechanisms wherein you have an "accountable project manager" are not set up to operate in this fashion. I would recommend that you "re-charter" after obtaining a project manager who can work under methodology.
A. Select Project Manager
The question is not well formed and leaves us moving in all direction.
'According to PMI®'s PMBOK Guide (5th edition), a project charter is a “document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities'
In some cases, the Project Manager helps to prepare the Project Charter while the Sponsor signs off and this official kick-starts the project.
"A' is already determined in the charter, B is an input in the charter too.
C and D might be considered here, though you already have them in the Charter on high level, as part of the Planning Stage, the two processes will be further elaborated.
Stephane gave a good explanation.
Given so many replies and thoughts, I think this is an excellent exam question.
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