IIA IIA-CIA-PART4 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 131:

  Which strategy in a global industry is most likely to be facilitated by a transnational coalition?

  A. A protected niche strategy.
  B. A national focus strategy.
  C. A national segment strategy.
  D. Broad line global competition.
  D. Broad line global competition.

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  Broad line global competition is competition over the full product line of the firm based on differentiation or low cost. The firm needs large resources for this long-term strategy. Governmental relations should emphasize impediment reduction. Transnational coalitions may be created to help the firms overcome impediments to executing the broader strategies, for example, market access or technology barriers.

• Question 132:

  Which one of the following will not help overcome communication problems between the Accounting Department and other departments?

  A. Interdepartmental task forces.
  B. Cross traininand job rotation.
  C. Organization-wide social events.
  D. A performance appraisal prepared by your immediate supervisor.
  D. A performance appraisal prepared by your immediate supervisor.

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  Horizontal communication between departments is often subject to more problems than either upward or downward communication within a single department. Examples of these problems include the use of technical terms understood by only one side in the communication process, faulty channel selection, and interpersonal problems. To overcome these difficulties, the sender must encode the message in the context of the receiver's perceptions; that is, the sender mustunderstand the receiver. The sender must establish an interpersonal climate that encourages the elimination of interpersonal barriers to communication. A performance appraisal prepared by the accountant's supervisor will not help the accountant understand the perceptions of people in other departments.

• Question 133:

  Intensity of rivalry among existing firms in an industry increases when:

  I. Products are relatively undifferentiated. II.Consumer switching costs are low.

  A. I only.
  B. II only.
  C. Both I and II.
  D. Neither I nor II.
  I. Products are relatively undifferentiated. II.Consumer switching costs are low.
  C. Both I and II.

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  The degree of product differentiation and the costs of switching from one competitor's product to another increase the intensity of rivalry and competition in an industry. Less differentiation tends to heighten competition based on price, with price cutting leading to lower profits. Low costs of switching products also increase competition.

• Question 134:

  Departmentation is the grouping of organizational subsystems. The greatest advantage of functional Departmentation is that it:

  A. Provides the benefits of specialization.
  B. Facilitates communication between primary functions.
  C. Helps to focus on achievement of organizational goals.
  D. Is appropriate for geographically dispersed companies.
  A. Provides the benefits of specialization.

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  Departmentation by function is the most widely used method and is found in almost every enterprise at some level. The most common departments are selling, production, and finance though other terms maybe used). These often extend

  upward in the organizational chart to the level below the chief executive. If persons within a department have similar knowledge, skills, and interests, they can specialize in the solution of particular problems.

  Thus, problem solving becomes more efficient.

• Question 135:

  When compared to individuals, groups have advantages and disadvantages for decision making. Which of the following is true regarding group decisions? Advantages Disadvantages:

  A. Increased personalDisagreements do not accountability surface because of pressures to conform
  B. Increased Takes more time to acceptance ofarriveat a decision by participants
  C. Takes less time to Lack of personal arrive at adecisionalaccountability
  D. Increased diversity Reduced acceptance ofexpertise decisionby participants
  B. Increased Takes more time to acceptance ofarriveat a decision by participants

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  Group decision making and problem solving has the following advantages:1) The group has greater knowledge and experience than an individual:2) the group provides multipleperspectives:3) members participating in a group process tend to have a better understanding of the reasons for different actions:4) those actively participating in the group process tend to accept, and have ownership of, the result:and 5) group involvement provides training for the less experienced members. The following are the disadvantages:1) The social pressure to conform may inhibit creativity:) the group may be dominated by a few aggressive members:3) the decision or solution may be a product of logrolling political dealing):4) the goal of reaching a good decision or solution may be displaced by a secondary concern, e.g., competing with a rival:and 5) the process may suffer from groupthink, or preference for unanimity over the quality of the decision or solution.

• Question 136:

  To market effectively the internal auditing function to management, auditors must recognize that their roles may result in varying degrees of conflict. Conflict triggers must be understood and managed so that a dysfunctional situation does not develop. Select the answer that is not a conflict trigger.

  A. Communication breakdowns.
  B. Super ordinategoals.
  C. Personality clashes.
  D. Status differentials.
  B. Super ordinategoals.

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  Conflict trigger include ambiguous jurisdictions (unclear job boundaries); competition for scarce resources; status differentials; time pressures; personality clashes; unreasonable standards, rules, etc.; communication breakdowns; and unrealized expectations. However, an appeal to super ordinate goals is a conflict resolution technique, not a conflict trigger.

• Question 137:

  A new manager of a production department has been asked to assess the effectiveness of that department. The organization needs to satisfy both internal and external constituents and takes a broad approach to effectiveness. To complete the assignment successfully, the manager should:

  A. Measure the daily productivity of the department.
  B. Do a survey of employee morale, as it is often a major underlying factor in productivity.
  C. Compare the past year's production against annual goals.
  D. Consider short-, medium-, and long-term effectiveness.
  D. Consider short-, medium-, and long-term effectiveness.

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  Kreitner Management, 9th ed., page 298) states, "Organizational effectiveness can be defined as meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving in the distant future." In the near term about one year), it should be effective in achieving its goals, efficient in its use of resources, and a source of satisfaction to its constituencies owners, employees, customers, and society). In the intermediate term 2 to 4 years), it should adapt to new possibilities and obstacles and develop its abilities and those of its members. In the long term 5+ years), the organization should be able to survive in an uncertain world.

• Question 138:

  The three major factors favoring globalization are

  A. Cultural, commercial, and technical.
  B. Flexibility, proximity, and adaptability.
  C. Political, technological, and social.
  D. Ambition, positioning, and organization.
  C. Political, technological, and social.

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  The new economy is driven by the digital revolution that facilitates international commerce by providing capabilities that did not exist a relatively few years ago. It is also driven by such political events as the fall of the Soviet Union, the participation of China in the world economic system, the emergence of the European Union, and the creation of other regional free trade zones. These technological and political factors are intertwined with social changes, for example, greater concern for the rights of women and minorities; the advance of multilingualism; and the convergence of tastes in fashion, music, and certain other cultural factors. Accordingly, these factors favor globalization by reducing trade barriers, reducing cost of coordination, increasing economies of scale, and encouraging standardization and global branding.

• Question 139:

  Which condition does not increase the threat of new competitor entry into the industry?

  A. Strong brand identity.
  B. Existing firms do not enjoy the cost advantages of vertical integration.
  C. Few proprietary product differences.
  D. Low capital requirements.
  A. Strong brand identity.

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  Strong brand identity decreases the threat that new competitors will enter an industry. New competitors have difficulty because potential customers are loyal to established firms in the industry.

• Question 140:

  Modern management theory devotes considerable attention to employee empowerment. Done appropriately, employee empowerment:

  A. Increases managerial power.
  B. Means lack of control.
  C. Is independent of compensation.
  D. Does not require full employee participation in decision making.
  A. Increases managerial power.

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  Modern management theory emphasizes employee empowerment. The question is not whether employees should be empowered, but the circumstances in which it should occur. The paradox isthat managers who appropriately surrender power by empowering employees actually gain power. They have an increased ability to achieve desired results.