Skip to content

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

Which of the following correctly distinguishes power from authority?

Authority is the formal, position-based right to command, whereas power is the capacity to influence others' behaviour from any source, such as expertise or personality. A person can hold authority without much power, or power without formal authority.

  1. APower always flows downward, authority flows upward
  2. BAuthority is the formal right to command attached to a position, while power is the capacity to influence behaviour whatever its sourceCorrect
  3. CPower is legally conferred, authority is personal
  4. DAuthority needs no acceptance by subordinates, power does not exist in formal organisations

Explanation

Authority derives from position and is formally granted. Power is the capacity to influence and can arise from expertise, personality or control of resources. The other options reverse the meanings or make false claims.

Did you get it right without looking?

One question tells you little. A timed set on Organisation Structure, Responsibility, Accountability and Delegation of Authority shows your real accuracy, how long you take and where you lose marks.

Practise Organisation Structure, Responsibility, Accountability and Delegation of AuthorityFree diagnostic mock

More Organisation Structure, Responsibility, Accountability and Delegation of Authority questions