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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

In management theory, the formal right of a manager to give orders and to expect those orders to be obeyed, arising from the position held in the organisation, is best described as:

The formal right of a manager to give orders and expect compliance, arising from the position held, is called authority. It is legitimate and position-based, unlike accountability, which is answerability for results, or influence, which can exist without any formal position in the organisation.

  1. AAuthorityCorrect
  2. BAccountability
  3. CInfluence
  4. DSpan of control

Explanation

Authority is the legitimate right attached to a managerial position to command and take decisions. Accountability is the obligation to answer for outcomes, influence need not rest on position, and span of control is the number of subordinates reporting to a manager.

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