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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 151:

  A manager believes that positive employee attitudes are extremely important. The manager cooperates with employees in solving problems. A likely effect on employee behavior of this leadership style is:

  A. Mistrust of the manager.
  B. A lack of extraordinary performance.
  C. High employee turnover.
  D. Increased employee creativity.
  D. Increased employee creativity.

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  When a manager works to maintain a positive attitude among employees and cooperates with them in problem solving, employees are likely to be more motivated, confident, and creative. This leadership style should also improve communication and decrease absenteeism.

• Question 152:

  In a SWOT analysis, a firm considers macroeconomic factors when it identifies:

  A. The capability profile.
  B. Opportunities and threats.
  C. Core competencies.
  D. Strengths and weaknesses.
  B. Opportunities and threats.

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  Opportunities and threats (the external environment) are identified by consideringmacro environmentalfactors (economic, demographic, political, legal, social, cultural, and technical) andmicro environmentalfactors (suppliers, customers, distributors, competitors, and other competitive factors in the industry).

• Question 153:

  What condition is most likely necessary to the success of a strategy of preemptive expansion?

  A. Competitors believe that the move is preemptive.
  B. The result is intense industry conflict.
  C. The firm does not know the expectations of competitors about the market.
  D. The learning-curve effect is small.
  A. Competitors believe that the move is preemptive.

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  Competitors must believe that the move is preemptive. Hence, the firm should know competitors' expectations about the market or be able to influence them favorably. Moreover, the preempting firm must have credibility, such as resources, technology, and a history of credibility, to support its statements and moves.

• Question 154:

  Effective communication is most likely to take place when the:

  A. Sender and receiver share similar frames of reference.
  B. Message is stated in general rather than specific terms.
  C. Message is delivered as quickly as possible.
  D. Sender ignores any underlying assumptions.
  A. Sender and receiver share similar frames of reference.

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  Effective communication is likely to have the least amount of distortion when the sender and the receiver share similar frames of reference. If both sender and receiver understand thesymbols used to communicate and the underlying assumptions concerning the problem, the message will be easier to write, to send, and to understand.

• Question 155:

  Organizational characteristics that may be barriers to effective communications include all of the following except:

  A. Organizational status differences.
  B. Lack of formal channels.
  C. Listening problems.
  D. Departmental needs and goals.
  C. Listening problems.

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  Listening problems are personal characteristics, not organizational characteristics that may cause communication problems.

• Question 156:

  While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company's product is the lowest price and best quality of all competitors?

  A. Introduction stage.
  B. Growth stage.
  C. Maturity stage.
  D. Decline stage.
  C. Maturity stage.

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  The maturity stage is the ideal time for advertising lower prices and superior quality because this is the period during a product's life when competition is greatest. Due to the availability of many substitutes, a firm has reasons to set itself apart. Because price and quality are both concerns of customers during the maturity stage, it is an ideal time for the firm to differentiate its product by advertising low prices and higher quality.

• Question 157:

  A firm enters a new business by creating a full-fledged new entity (an internal entrant). The internal entrant is least likely to cause disruption and retaliation in a:

  A. Slow-growth industry.
  B. Fragmented industry.
  C. Commodity-producing industry.
  D. Highly-concentrated industry.
  B. Fragmented industry.

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  In a fragmented industry, many firms might be affected but not significantly. These firms also might have no ability to retaliate. Firms in a fragmented industry have insignificant market shares and little influence on industry outcomes.

• Question 158:

  The general attack strategy adopted by a market challenger that is used by a firm with an advantage in resources is:

  A. Frontal attack.
  B. Bypass attack.
  C. Flank attack.
  D. Encirclement attack.
  D. Encirclement attack.

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  An encirclement attack is used by a challenger with an advantage in resources. It is an assault on multiple marketing fronts.

• Question 159:

  Which of the following is not an advantage of group effort compared with work performed by individuals?

  A. Groups provide support to members.
  B. Groups make decisions that are more easily accepted.
  C. Groups provide a clear link between effort and outcome.
  D. Groups control and discipline members.
  C. Groups provide a clear link between effort and outcome.

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  In a culture that strongly emphasizes individual identity and competition, the preference tends to be for a clear link between effort and outcome. However, groups tend to submerge individual identity and responsibility and therefore to blur the link between individual effort and its results.

• Question 160:

  Firm X is considering entry into an industry. To analyze competition within the industry, Firm X evaluated its strategic groups. According to Michael E. Porter,

  A. The members of a strategic group pursue different competitive strategies.
  B. Intergroup competition is increased by market interdependence.
  C. Low barriers to mobility among strategic groups promote profitability.
  D. High substitutability of products reduces competition among groups.
  B. Intergroup competition is increased by market interdependence.

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  Intergroup competition is increased by market interdependence, which is the extent to which groups pursue the same customers. The greater the interdependence, the stronger the competition among groups.