Answer to Question #191934 in Economics for Beauty Magadlela

Question

Which one of the following is a distinct characteristic of formal authority?

1 Formal authority is vested in people, not organisational positions.

2 Formal authority is accepted by subordinates.

3 Formal authority flows up the vertical hierarchy of an organisation.

4 Formal authority is only present in centralised structures.

Answer 1

Formal authority is a right to control resources and direct people that applies to a particular context. 

Three characteristics of authority are:

1. Authority is vested in organizational position, not people.
2. Authority flows down the vertical hierarchy.
3. Authority is accepted by subordinates.

So, the correct answer is 2.