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CSEET · Business Laws and Management · Functions of Management

Meera, a sales head, asks her team leader Arjun to handle all dealer follow-ups and gives him the right to approve discounts up to Rs 5,000. She remains answerable to the director for the sales results. Which statement is correct?

Meera has delegated authority and the task to Arjun, but she stays ultimately accountable to the director. Accountability for results cannot be fully transferred downward, and one act of delegation does not amount to decentralisation of the whole organisation.

  1. AMeera has transferred her accountability fully to Arjun
  2. BMeera has delegated authority but her ultimate accountability stays with herCorrect
  3. CArjun has no responsibility because authority was given only for discounts
  4. DMeera has decentralised the whole organisation

Explanation

Authority and the duty to perform can be delegated, but accountability to the superior cannot be passed off completely. Meera remains answerable to the director. Option A is wrong because accountability is not wholly transferred; option D confuses a single delegation with systematic organisation-wide decentralisation.

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