CAPM Practice: Demonstrate an understanding of project roles and responsibilities

Leadership is about setting direction, aligning people with the vision, and inspiring them toward goals. Management focuses on planning, organizing, and controlling resources and processes to execute and achieve those goals efficiently.

**Why not A:** This option reverses the correct associations. Leadership is not primarily concerned with budget and schedule — those are management functions. Management is not primarily concerned with stakeholder relationships — relationship building is a leadership function involving influence and inspiration.

**Why not C:** Leadership does not require formal authority. In fact, leadership is often characterized by the ability to influence without formal positional power. Management may or may not involve formal authority, but the defining distinction is about function, not authority level.

**Why not D:** Assigning tasks is a management function (planning and controlling work), while motivating the team is a leadership function (inspiring people toward a vision). This option reverses the correct associations between these activities and their respective domains.