Future Business Leaders of America (FBLA) Business Management Practice Test

What term describes the power that comes from an individual's position within an organization?

1. Wealth

2. Job depth

3. Chain of command

4. Authority

The correct answer is: Authority

The term that describes the power that comes from an individual's position within an organization is "authority." Authority refers to the legitimate power that a person holds due to their position within the organizational hierarchy. It enables individuals to make decisions, give orders, and enforce compliance within their scope of responsibility. Authority is essential for maintaining structure and facilitating coordination in organizations, allowing leaders to effectively manage tasks and people. In contrast, wealth refers to the accumulation of valuable resources and is not inherently related to one's position in an organization. Job depth relates to the degree of responsibility and autonomy in a role, rather than the power derived from a position itself. The chain of command refers to the formal line of authority within an organization but does not specifically denote the power that an individual possesses as a result of their position. Therefore, authority is the most accurate term to capture this aspect of organizational dynamics.