Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is delegation in a business context?

1. The act of taking authority back

2. The process of passing down authority to a subordinate

3. The sharing of power among peers

4. The responsibility of managing a team

The correct answer is: The process of passing down authority to a subordinate

In a business context, delegation refers to the process of passing down authority to a subordinate. This involves assigning tasks and responsibilities to a team member while empowering them to make decisions related to those tasks. Effective delegation is crucial for productivity and management efficiency, as it allows leaders to distribute workloads and encourages team members to develop their skills and take ownership of their work. By delegating, managers can focus on higher-level strategic tasks, while subordinates gain valuable experience and contribute to the organization's objectives. The other concepts highlight aspects of authority and management that do not accurately capture the essence of delegation. Taking authority back does not relate to the empowerment implied in delegation. Sharing power among peers does not involve the hierarchical structure typically seen in delegation. Lastly, managing a team is a broader responsibility that encompasses delegation as one of its functions but does not succinctly define it.