Q.Statement I: Delegation is the entrustment of responsibility and authority to another, and the creation of accountability for performance. Statement II: Irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation. Choose the correct option from the following: (A) Statement I is true and Statement II is false. (B) Statement II is true and Statement I is false. (C) Both the Statements are true. (D) Both the Statements are false.

Both statements describe delegation correctly. Statement I gives the standard definition — delegation is the entrustment of responsibility and authority to a subordinate and the creation of accountability for performance. Statement II reflects a key rule in CBSE Class 12 Business Studies: authority can be delegated but accountability cannot, so the manager remains accountable to the same extent …

The core idea here is the Delegation Accountability Principle, a fundamental concept in management. When a manager delegates a task, they give a subordinate the authority (the right to decide and act) and the responsibility (the obligation to perform) for that task. But the manager’s own accountability — the answerability for the final outcome — is never reduced. Accountability is like a shadow that stays with the original manager, no matter how much authority they pass down.

Why? Because the manager chose the subordinate, assigned the task, and remains answerable to their own superiors for the results. If the subordinate fails, the manager cannot say, “It was their fault.” The manager is still accountable for the failure. This is why Statement II is true — it captures that non-transferable nature of accountability.

Let’s break it down step by step.

1. Statement I: Delegation is the entrustment of responsibility and authority to another, and the creation of accountability for performance.

   This is the textbook definition. Delegation involves three elements:

   • Responsibility — the duty to perform the assigned task.
   • Authority — the power to make decisions and use resources.
   • Accountability — the obligation to answer for the outcome. When a manager delegates, they give responsibility and authority to a subordinate, and that subordinate becomes accountable to the manager for the task. So Statement I is true.

2. Statement II: Irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation. …