Implied authority is best described as:

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Implied authority refers to the unwritten power that an individual holds to perform tasks that are deemed necessary for the normal course of business, even if those tasks are not explicitly outlined in any written document. This concept is essential in situations where certain actions are taken by an employee or representative that pertain to the overall objectives of the organization, allowing them to operate efficiently without needing to seek permission for every individual decision.

For example, a claims adjuster in an insurance company may have implied authority to negotiate settlements with claimants, as it aligns with their role and responsibilities. This authority exists to facilitate day-to-day operations and is generally accepted as part of their job function, even if not specifically noted in formal agreements.

In contrast, written permissions for specific tasks, authority explicitly stated in a legal document, and authority limited only to what is defined in writing refer to more formalized structures of authority that require explicit consent or documentation. Such forms of authority are not the same as implied authority, which thrives on the assumption of a broader scope of power necessary to fulfill job responsibilities effectively.

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