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ACCA Strategic Professional · Strategic Business Leader · Qualities of leadership

Hollis Bank's head of compliance has the formal right, set out in her job description and company policy, to halt a product launch that breaches regulations. Which statement best distinguishes this from power more generally?

She holds authority, meaning the formally sanctioned right to make decisions attached to her role and recognised by company policy. Power is the broader ability to influence others, which can exist without such formal backing.

  1. AShe holds authority, being the legitimate right to use power attached to her roleCorrect
  2. BShe holds only informal power, because it is not based on position
  3. CShe holds charismatic influence, which depends on her personality
  4. DShe holds no authority until staff accept her decisions

Explanation

Authority is the formal, legitimate right to make decisions and direct others, derived from the role. Power is the wider ability to influence, which may exist without authority. Her right is written in policy, so it is authority.

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