Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the definition of authority?

1. The right to exercise power

2. The ability to influence events or people

3. The process of managing subordinates

4. The capacity to make decisions

The correct answer is: The right to exercise power

The correct response identifies authority as "the right to exercise power." This definition highlights the legitimacy that is granted to an individual or an organization to enforce rules, make decisions, and command others. Authority is often linked to formal positions within an organization, such as management or leadership roles, where individuals are vested with the power to make critical decisions for the overall benefits of the organization. This definition also contrasts with the other choices. For example, the ability to influence events or people refers more to the concept of leadership or persuasion rather than formal authority. The process of managing subordinates involves a set of actions and skills to oversee a group of employees, which pertains more to managerial competencies rather than the concept of authority itself. Lastly, the capacity to make decisions relates to decision-making skills and autonomy, but does not inherently include the element of having the right or power to do so, which is central to authority. In summary, the uniqueness of the definition provided lies in its emphasis on the legitimacy and power aspect that accompanies authority, distinguishing it clearly from related but different concepts.