What happens during the executive review at the end of Phase 1?

During the executive review at the end of Phase 1, a crucial decision-making process takes place. Executives assess the project's viability and overall direction, forming a go or no-go decision. This review involves evaluating whether the project meets strategic goals and aligns with the organization's objectives.

If the decision is to proceed, the executives also commit the necessary budget for the next phases of the project. This commitment is significant because it ensures that resources are allocated to move forward, reflecting the organization's support and confidence in the project. This step is vital in the project lifecycle as it sets the course for future actions and resource management.

In contrast, other choices suggest outcomes that don't align with the typical processes following Phase 1. For instance, disbanding teams would not be a logical step at this point since a go decision usually means ongoing work. Proposing a budget without commitment does not fully support the transition to the next phase. Launching projects immediately contradicts the structured approach typically taken in project management, where phases must be completed with executive oversight before actual project work begins.

Thus, the correct choice accurately captures the function of the executive review by emphasizing the go/no-go decision and budget commitment, both essential steps for progressing a project successfully.