IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 351:

  Which of the following is a project planning methodology that involves a complex series of required simulations to provide information about schedule risk?

  A. Monte Carlo Analysis.
  B. Project Management Information System (PMIS)
  C. Earned Value Management (EVM).
  D. Integrated Project Plan.
  A. Monte Carlo Analysis.

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  Explanation

  https://opentextbc.ca/projectmanagement/chapter/chapter-16-risk-management-planning-project-management/

• Question 352:

  According to Michael E. Porter's generic strategies model, a firm that successfully adopts a cost focus strategy is most likely to:

  A. Have weak customer loyalty.
  B. Have a strong RandD function.
  C. Know its market well.
  D. Enjoy economies of scale.
  C. Know its market well.

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  Explanation

  Cost focus is the generic strategy favored by firms that seek competitive advantage through lower costs and that have a narrow competitive scope (e.g., a regional market or a specialized product line). The rationale for a cost focus strategy is that the narrower market can be better served because the firm knows it well.

• Question 353:

  According to a model suggested by Arthur D Little, a consulting organization, market share will tend to

  A. Increase after gains in mind share but not heart share.
  B. Decrease after losses in heart share but not mind share.
  C. Increase after gains in mind share and heart share.
  D. Not be affected by changes in mind share and heart share.
  C. Increase after gains in mind share and heart share.

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  Explanation

  Arthur D Little suggests a three-factor model for assessing a competitor's current and future market share. Market share is the share of the target market. Mind share is the percentage of customers who name the firm as the first that comes to mind" in the industry. Heart share is the percentage of customers who name the firm as the one from which they "would prefer to buy." A competitor that improves its mind share and heart share will ultimately increase its market share and profits.

• Question 354:

  An organization's board of directors is particularly focused on positioning the organization as a leader in the industry and beating the competition.

  Which of the following strategies offers the greatest alignment with the board's focus?

  A. Divesting product lines expected to have negative profitability.
  B. Increasing the diversity of strategic business units.
  C. Increasing investment in research and development for a new product.
  D. Relocating the organization's manufacturing to another country.
  B. Increasing the diversity of strategic business units.

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  Explanation

• Question 355:

  A firm is most likely to leave a declining industry because

  A. The remaining pockets of demand include price-insensitive buyers.
  B. It is the only part of a vertically integrated business that is affected.
  C. Buyers have high switching costs.
  D. Mobility barriers are high.
  B. It is the only part of a vertically integrated business that is affected.

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  Explanation

  Vertical integration of a business may require exit of the entire chain when the reasons for decline affect all its parts. However, when only one part of the vertically integrated business is in a declining industry, integration is an argument for exit of the affected part. Divestiture prevents the weak link from harming the entire chain.

• Question 356:

  What link in the communications chain is defective?

  A. The meaning of the message would be unclear to the buyer.
  B. The supervisor chose the wrong channel for the communication.
  C. The supervisor should not be the source of this type of communication.
  D. The supervisor did not account for the noise in the communication chain.
  B. The supervisor chose the wrong channel for the communication.

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  Explanation

  In the communications process, the medium is the channel through which the communication flows. The defect in this case was the channel chosen to inform the employee of his/her loss of job. The supervisor should have spoken directly with the employee. The supervisor ofpurchasing reviewed a memorandum prepared for a buyer in the department. The memo read, "Effective September 30, the corporation has determined that your functions will be absorbed into our parent company's small-unit purchasing function. This will reduce operating costs, improve communications, and facilitate production engineering changes. You will be provided with outplacement support." That should cover the situation," thought the supervisor. Its too bad that I am leaving on vacation before the buyer returns from vacation, but this memo will give the buyer the general idea."

• Question 357:

  Which of the following is a cultural aspect that typically makes international and intercultural communication more difficult?

  A. Long distances between sender and receiver. II. Body language. III. Language. IV. Attitude.
  B. I and Ill only.
  C. II and V only.
  D. I, IV, and V only.
  E. II, Ill, IV, and V only.
  D. I, IV, and V only.

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  Explanation

  Facial, gestural, and postural body language, and other forms of nonverbal communication, may have different meanings in different cultures. Furthermore, because of the differences in language even within the same country, special care must be taken not to make mistakes or offend others in a foreign land. It is nearly impossible for someone with only a few semestersof a foreign language to understand the subtleties of nonnative communication. Attitudes, such as stereotyping, also may cause misunderstandings. In addition, time is a barrier to intercultural communication. The perception of time as it relates to business and social life varies with the culture. Polychronic time is based on a perception that time is nonlinear, flexible, and multidimensional. This perception is typical of Mediterranean,Latin American, and Arabic cultures. Monochronic time is based on a perception that time is the same for everyone and is measurable in standard units. This perception is common in Northern Europe and the U.S. These western cultures believe in punctuality and that time is money and should not be wasted. However, communication difficulties due to the long distances separating senders and receivers have been minimized by electronic communication, such as email, fax, and teleconferencing.

• Question 358:

  Which of the following employee survey questions would be most effective to measure organizational commitment?

  A. How would you rate the development and training opportunities you receive at the organization?
  B. How satisfied are you with your manager's attitude and behavior?
  C. How content are you with the amount of pay you receive for your work?
  D. How likely are you to recommend the organization as an employer to your friends?
  D. How likely are you to recommend the organization as an employer to your friends?

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  Explanation

• Question 359:

  Which of the following is the acceptable minimum outcome if a negotiator cannot obtain the desired result?

  A. Win-win attitude.
  B. Cooperation.
  C. Best alternative to a negotiated agreement (BATNA).
  D. Win-lose attitude.
  C. Best alternative to a negotiated agreement (BATNA).

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  Explanation

  BATNA is the acceptable minimum outcome if a negotiator cannot obtain the desired result. The BATNA helps a negotiator to avoid accepting an unfavorable agreement and rejecting a favorable agreement.

• Question 360:

  A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

  A. Diversification
  B. Vertical integration
  C. Risk avoidance
  D. Differentiation
  B. Vertical integration

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  Explanation