Accounting Multiple Choice Question – 16 June 2024

Lucy is a manager who can authorise her own travel expenses up to £2,000.

Lucy is about to travel abroad on business and has a choice between flying economy class for £650 or flying business class for £2,250.

Lucy is an old friend of the company’s travel administrator, Alex, who arranges bookings.

Lucy persuades Alex to book the business class seat without proper authorisation.

This is an example of Lucy exercising her…?

Select ONE answer:

1. Authority without power
2. Power without authority
3. Delegation of authority
4. Power with authority

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct  –>  Referent power is based on identification with, admiration of or respect for the individual. This can be summed up as power based on force of personality.
3. Not correct
4. Not correct

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