What describes implied authority?

Implied authority refers to the authority that is not explicitly stated but is inferred from the actions, circumstances, or the relationship between parties. This type of authority enables a person to perform acts that are necessary to carry out the responsibilities of their job or role, even if those actions are not specifically detailed in an agreement or contract. In a business context, implied authority allows an agent to take actions that are customary for their position and that a principal would typically expect them to take.

For instance, a property manager may not have explicit permission to hire maintenance workers for an apartment complex, but it can be assumed that, given the nature of their role, they would have the authority to do so in order to fulfill their obligations. Thus, choice B correctly captures the essence of implied authority, highlighting that it is about what can be reasonably inferred rather than what is explicitly articulated.

The other options describe forms of authority that are more strictly defined, either by having explicit limitations or being limited to specific tasks. These types of authority do not encompass the flexible and inferred nature of implied authority.