CAPM Practice: Demonstrate an understanding of project roles and responsibilities

Leadership focuses on inspiring, motivating, and influencing people toward a vision, while management focuses on planning, organizing, and controlling work to achieve objectives. Both are essential skills for project managers.

**Why not A:** Leadership does not require formal authority — in fact, leadership is often about influence without positional power. Management, on the other hand, typically does involve formal authority to plan and control work. This option reverses the relationship between authority and these two concepts.

**Why not C:** Budget control is a management function, not a leadership function. Team development is closely related to leadership (inspiring and growing people), not management. This option assigns each concept to the wrong domain.

**Why not D:** Leadership is not limited to senior executives — anyone at any level can demonstrate leadership by inspiring and influencing others. Similarly, project managers use both leadership and management skills. This option creates a false hierarchy between the two concepts.