There are two types of authorities, each of them corresponds to a different type of leadership.
The most common one is the authority that arises from one’s position or title. Leaders of different countries. Government bureaucrats. Police officers and maybe even your reporting manager.
In this form, the authority resides in the office or position, not the leader. It generally has a fixed tenure and is answerable to a higher office of authority.
The other form of authority is based on the leader’s personal qualities and charisma. The leader’s power comes from the massive trust and faith people put in him/her.
History has some clear examples of such leaders. Consider Mahatma Gandhi or Nelson Mandela.
This form of authority is purely driven by vision laid by the leader and his/her ability to see it through.
Business leaders generally enjoy the authority of their office but have a choice of winning people’s trust and leading with a purpose.