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Important Questions

Authority, Responsibiity and Accountability — Important Questions

ICSE · Class 11 · Business Studies

45 important questions from Authority, Responsibiity and Accountability for ICSE Class 11 Business Studies, with answers.

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45 Questions·
multiple choice

Important Questions from Authority, Responsibiity and Accountability

1multiple choice
1 marks

In Louis Allen's definition, delegation involves 'entrustment of responsibility and authority to another and creation of accountability.' Which element is the most critical reason why delegation does NOT reduce the delegator's own responsibility?

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Because responsibility is absolute and cannot be fully transferred – the delegator retains it

Step 1: Louis Allen's definition highlights three elements – entrustment of responsibility, delegation of authority, and creation of accountability. Step 2: The critical insight here is that while authority can be passed on, responsibility is ABSOLUTE. It means the original holder of responsibility (the delegator) always retains it. Step 3: This is why delegation is NOT abdication – the manager does not escape responsibility by delegating. Step 4: Why others are wrong – Creating accountability in the subordinate is a consequence of delegation, not the reason the delegator retains responsibilit

2multiple choice
1 marks

An employee is given the responsibility to complete a project but is NOT given any authority to direct the team or access resources. According to the Principle of Parity, what will be the most likely outcome?

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The employee will become ineffective as responsibility exceeds authority

Step 1: The Principle of Parity between Authority and Responsibility states that authority granted must match the responsibility assigned. Step 2: Two scenarios arise from imbalance – (a) If authority > responsibility: there is risk of misuse of authority. (b) If responsibility > authority: the person becomes ineffective because they cannot command resources or people needed to fulfil the responsibility. Step 3: In this question, the employee has responsibility but NO authority – this is the second scenario. Without authority to direct the team or access resources, the employee simply cannot p

3multiple choice
1 marks

Which of the following CORRECTLY describes the flow of authority, responsibility, and accountability in an organisation?

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Authority flows downward; responsibility and accountability flow upward

Step 1: Authority is delegated from a superior to a subordinate, meaning it travels FROM top TO bottom – it flows DOWNWARD. Step 2: When authority is given, the subordinate takes on responsibility to perform the task. This obligation is owed TO the superior, meaning responsibility flows UPWARD. Step 3: Accountability (answering for the outcome) is also owed to the superior – it also flows UPWARD. Step 4: A simple memory trick – authority comes FROM above (top to bottom), while responsibility and accountability go TO above (bottom to top). Step 5: All other options mix up these directions and a

4multiple choice
1 marks

How does Competence Authority Theory differ from Formal Authority Theory in terms of the source of a manager's authority?

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Competence theory says authority comes from personal expertise and charisma; Formal theory says it originates from the top and flows down through delegation

Step 1: Formal Authority Theory – Authority originates at the very top of an organisation (e.g., shareholders → Board of Directors → CEO → managers). It flows downward through the process of delegation. It is legal and legitimate. Step 2: Competence Authority Theory – According to Urwick, a person derives authority from their personal competence, technical knowledge, and charisma. People follow their advice not because of rank, but because of expertise. Step 3: Example – A junior software expert may have more competence authority over a technical decision than a senior manager with only formal

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Frequently Asked Questions

What are the important topics in Authority, Responsibiity and Accountability for ICSE Class 11 Business Studies?
Key topics in Authority, Responsibiity and Accountability include Authority: Meaning, Features, and Sources, Responsibility and Accountability, Interrelationship among Authority, Responsibility, and Accountability, Delegation of Authority. Study these first, then practise questions on each for Class 11 exams.
How many important questions are there in Authority, Responsibiity and Accountability?
Super Tutor has 45 practice questions for Authority, Responsibiity and Accountability, including multiple choice questions. A sample with answers is on this page.

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