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CMA Final · Entrepreneurship and Startup · Leadership

Which statement about the difference between a leader and a manager, as commonly distinguished in entrepreneurship literature, is correct?

A leader concentrates on vision, direction and influencing people, while a manager concentrates on planning, organising and controlling resources to meet set goals. Leadership can arise from personal influence without formal authority, whereas management authority is usually positional.

  1. AA manager focuses on creating vision and inspiring change, while a leader focuses on planning and controlling routines
  2. BLeadership is derived only from formal position, whereas management arises from personal influence
  3. CA leader focuses on vision, direction and influence, while a manager focuses on planning, organising and controlling to achieve stated goalsCorrect
  4. DBoth terms are identical and differ only in the size of the organisation

Explanation

Leaders set direction and influence people, while managers handle planning, organising and controlling. Option A reverses the roles, and B reverses the source of authority: leadership can be informal, management is positional.

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