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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 501:

  Which of the following best describes the benefit of an organization adopting a business continuity and disaster recovery plan for responding to natural disasters?

  A. It prevents economic impact to the organization.
  B. It enables the organization to predict when a natural disaster will occur.
  C. It reduces the likelihood that events will disrupt operating activities.
  D. It eliminates the threat to the organization.
  C. It reduces the likelihood that events will disrupt operating activities.

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  Explanation

• Question 502:

  Which of the following is a source of global competitive advantage?

  A. Low fixed costs.
  B. Production economies of scale.
  C. Weak copyright protection.
  D. Intensive local service requirements.
  B. Production economies of scale.

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  Explanation

  Production economies of scale exist when a firm can produce and sell the output at which the average total cost of production is minimized. (The archetypal example is oil refining.) In other words, economies of scale in centralized production may yield a cost advantage achievable only when output exceeds the demand in one country, and exports are feasible.

• Question 503:

  An organization created a formalized plan for a large project. Which of the following should be the first step in the project management plan?

  A. Estimate time required to complete the whole project
  B. Determine the responses to expected project risks
  C. Break the project into manageable components
  D. Identify resources needed to complete the project
  C. Break the project into manageable components

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  Explanation

• Question 504:

  A company's compensation program does not allow for salary increases based onabove averageperformance after an employee reaches the top of a position's salary range. It also pays some employees higher salaries because of their educational qualifications. This company could improve the program by:

  A. Allowing each manager to set up his or her own system of salary increases.
  B. Providing only monetary compensation.
  C. Developing a system that equates years of experience with education.
  D. Decreasing the annual percentage increase in each salary range.
  C. Developing a system that equates years of experience with education.

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  Explanation

  A company with a compensation program that stops rewarding above-average performance at the top of each salary range and rewards education with higher compensation could improve the system in several ways. These include starting a bonus program for above-average performance, refusing to hire a person at the top of a salary range unless s)he will be promoted quickly, and equating experience and education so that employees are treated fairly.

• Question 505:

  Job design involves not only the intentional planning of the characteristics of a job but also of the work environment. The purpose is to increase workers' intrinsic job motivation so as to improve performance. It is an approach that explicitly considers workers' ego and social needs. The aspect of job design that should have the greatest motivational effect is:

  A. Job enlargement.
  B. Job rotation.
  C. Job enrichment.
  D. Job simplification.
  C. Job enrichment.

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  Explanation

  Job enrichment is an attempt to apply the findings of Herzberg two-factor theory of behavior), Maslow hierarchy of human needs), Likert participation), and McGregor Theories X and Y) by structuring the job so that each worker participates in the planning and controlling so as to maximize the satisfaction of both social and ego needs and avoid the disadvantages of routine, highly specialized work. Job enrichment includes allowing and encouraging more worker discretion in deciding work methods, work sequence, and work pace. It encourages interactions between workers, gives workers a feeling of personal responsibility for their tasks, makes sure workers understand how their tasks contribute to the finished product, provides feedback on job performance, and involves workers in changes in the physical aspects of the work environment.

• Question 506:

  In regard to effective negotiation, a win-win attitude is characterized by:

  A. Seeking mutual benefit and satisfaction.
  B. Cooperative.
  C. It promotes support of, and commitment to, the agreement.
  D. All of the answers are correct.
  D. All of the answers are correct.

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  Explanation

  In regards to effective negotiation, a win-win attitude is characterized by seeking mutual benefit and satisfaction, being cooperative, and promoting support of, and commitment to, the agreement. In contrast to a win-win attitude, a win-lose attitude is competitive and is a zerosum game instead of a positive-sum game.

• Question 507:

  Nonverbal communication consists of messages conveyed by:

  A. The physical distance between the sender and the receiver II. The facial expressions used when speaking III. Electronic means of communication such as email IV. Unconscious actions of the speaker while speaking
  B. Ill only.
  C. IV only.
  D. I and II only.
  E. I, II, and IV.
  D. I and II only.

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  Explanation

  Physical distance and positioning convey many nonverbal messages that depend on cultural differences. For example, Americans tend to prefer a large personal space. Facial expressions provide almost limitless variations of meaning thanks to the dozens of facial muscles and the possibilities created by different contexts, cultures, and individual personalities. In addition to facial expressions, other unconscious actions of the speaker affect the message sent. They include gestures, posture, movement,touch, mode of dress, surroundings, and voice characteristics.

• Question 508:

  A strategic group analysis does all but which of the following?

  A. Determines what mobility barriers exist.
  B. Forecasts future group actions and trends.
  C. Considers how the firm compares with the competitors within the chosen strategic group.
  D. Predicts reaction patterns to events such as competitive attacks.
  C. Considers how the firm compares with the competitors within the chosen strategic group.

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  Explanation

  An overall industry analysis, not a strategic group analysis, considers how the firm compares with the competitors within the chosen strategic group, e.g., on the basis of its scale of operations, the intensity of group rivalry, and the differences in the ability of the group members to implement their strategies.

• Question 509:

  Which of the following factors is considered a disadvantage of vertical integration?

  A. It may reduce the flexibility to change partners.
  B. It may not reduce the bargaining power of suppliers.
  C. It may limit the organization's ability to differentiate the product.
  D. It may lead to limited control of proprietary knowledge.
  A. It may reduce the flexibility to change partners.

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  Explanation

• Question 510:

  Within an enterprise, IT governance relates to the:

  1. Alignment between the enterprise's IT long term plan and the organization's objectives.

  2. Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives.

  3. Operational plans established to support the IT strategies and objectives.

  4. Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.

  A. 1 and 2 only
  B. 3 and 4 only
  C. 1, 2, and 4 only
  D. 2, 3, and 4 only
  C. 1, 2, and 4 only

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  Explanation