When comparing projects and programs in PMI based terminology, which statement best describes their relationship?

Introduction / Context:
In PMI based project management, the terms project and program have precise definitions. They are related but not interchangeable. Many job advertisements refer to both program managers and project managers, and exam questions frequently test whether you understand how projects and programs relate to each other and why organizations choose to group projects into programs.

Given Data / Assumptions:

• A project is defined as a temporary endeavor undertaken to create a unique product, service, or result.
• A program is a group of related projects managed together to obtain benefits and control not available by managing each project separately.
• The question asks for the best description of the relationship between projects and programs.
• We are assuming PMI and PMBOK Guide definitions.

Concept / Approach:
A program typically includes multiple related projects that contribute to a larger strategic objective. For example, a digital transformation program might include projects for implementing new software, training staff, and upgrading infrastructure. The key idea is that managing these projects as a program provides additional benefits, such as better coordination, optimized resource usage, and strategic alignment, compared to managing them independently. Projects are the building blocks; a program is the coordinated collection of those blocks.

Step-by-Step Solution:
Step 1: Recall PMI's definition that a program consists of multiple related projects and possibly other work. Step 2: Recognize that projects are temporary and unique, whereas programs provide a broader management structure that may run longer and include several projects. Step 3: Review the answer choices and look for the one that states clearly that programs are composed of related projects. Step 4: Identify option C as the statement that correctly describes a program as composed of one or more related projects managed in a coordinated way. Step 5: Verify that other options either reverse the relationship or contain incorrect statements about permanence or sector limitations.

Verification / Alternative check:
In PMBOK based literature, examples of programs include initiatives like a company wide quality improvement program or a city's infrastructure development program, each containing many individual projects. The emphasis is always on the coordinated management of related projects. Projects can exist without being part of a program, but programs are, by definition, made up of projects and related activity. This confirms that the relationship described in option C is accurate.

Why Other Options Are Wrong:
Option A incorrectly states that there are no differences between projects and programs, which contradicts PMI definitions. Option B reverses the relationship by claiming that a project is composed of programs, which is incorrect. Option D claims that programs are permanent with no defined end date; while programs may be long lived, they still have objectives and can be closed. Option E incorrectly restricts programs to government agencies and projects to private organizations, which is not true; both can exist in any sector.

Common Pitfalls:
A frequent pitfall is thinking of programs merely as larger projects rather than as coordinated sets of related projects. Another mistake is assuming that programs can never end or always span many years; in reality, a program ends when its objectives are met or when it is no longer aligned with organizational strategy. Understanding that programs coordinate multiple projects helps clarify roles, responsibilities, and governance structures in real organizations and on certification exams.

Final Answer:
The best description is that a program is composed of one or more related projects that are managed in a coordinated way to obtain benefits not available from managing them individually.