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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 161:

  Communication must occur in various directions within an organization. The kind of communication that is the slowest is:

  A. Upward.
  B. Downward.
  C. Horizontal.
  D. Diagonal.
  A. Upward.

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  The directions of communication are upward, downward, horizontal, and diagonal. Upward communication is from a subordinate to a superior morale surveys, grievance procedures, interviews, conferences). It is usually slower and must overcome more barriers than other directions of communication. Moreover, subordinates may be hesitant to communicate with superiors when interpersonal problems arise.

• Question 162:

  A firm wishes to enter a new business by creating a new entity (an internal entrant). The internal entrant is most likely to achieve above-average profits by targeting which industry?

  A. An industry with high entry costs.
  B. An industry with a stabilized structure.
  C. A new industry.
  D. An industry in equilibrium if entry positively affects the firm's existing businesses.
  C. A new industry.

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  A firm may be able to achieve above-average profits by choosing appropriate targets. For example, an industry may be in disequilibrium because it is new, entry barriers are rising, or firms have poor information. In a new industry, (1) the structure is not established,

  (2) entry barriers are low, (3) retaliation is unlikely, (4) resource supplies have not been locked up, and (5) brands are not well developed.

  However, initial firms may have greater costs than later entrants. Rising entry barriers favor an early entrant whose subsequent competitors will face higher costs. The early entrant also may have an edge in product differentiation. Poor

  information may perpetuate disequilibrium because firms that might enter the industry may not be aware of its potential.

• Question 163:

  Which of the following would be the best approach for negotiating the purchase of a large number of microcomputers, assuming that both parties follow the same approach?

  A. Review previous demands, concessions, and settlements (precedents).
  B. Attempt to get personal information about the opposing negotiators.
  C. Enter without preconceived ideas about what should be accomplished.
  D. Ask as few questions as possible during negotiations.
  A. Review previous demands, concessions, and settlements (precedents).

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  The best approach to negotiating a large purchase, assuming that both parties follow the same approach, is to review previous settlements, demands, and concessions to determine what can be achieved. The history of past practices and interactions tends to define current standards of fairness in negotiations.

• Question 164:

  Intentional stimulation of conflict can be triggered by:

  I. Making changes to the organizational structure

  II. Hiring new employees with different values, attitudes, and backgrounds

  III.

  Assigning an employee the role of devil's advocate to oppose the majority views

  A. I only.
  B. I, II, and Ill.
  C. I and Ill only.
  D. II only.
  I. Making changes to the organizational structure II. Hiring new employees with different values, attitudes, and backgrounds III. Assigning an employee the role of devil's advocate to oppose the majority views
  B. I, II, and Ill.

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  Intentional stimulation of conflict is triggered by making changes in the organizational structure, hiring new employees with different values, attitudes, backgrounds, and assigning an employee to be devil's advocate to oppose the majority views of the group.

• Question 165:

  Which of the following statements regarding approaches to conflict resolution is true?

  A. Forcing is a style of managing conflict where the relationship is given more importance than individual goals, and goals are conceded in order to preserve relationships.
  B. Withdrawing is a style of managing conflict where personal goals and relationships are relinquished. It is regarded as a temporary solution because the problem and conflict reoccur.
  C. Smoothing occurs when goals are highly important while the relationship is of minor importance. Goals are achieved at any cost.
  D. Compromising is a style that highly values goals and relationships. Conflicts are viewed asproblems to be solved, and negotiators seek a solution that both achieves goals and improves relationships.
  B. Withdrawing is a style of managing conflict where personal goals and relationships are relinquished. It is regarded as a temporary solution because the problem and conflict reoccur.

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  The withdrawing or avoiding style ignores the issues and the people involved in the conflict. Thus, avoidance is nonaction. It withdraws from and suppresses the conflict but does not solve the underlying problem.

• Question 166:

  A manager implementing the directive leader approach should:

  A. Closely supervise each employee.
  B. Display confidence in each employee's ability.
  C. Work with the employee when developing goals.
  D. Clearly signal that the employee is expected to be successful.
  A. Closely supervise each employee.

• Question 167:

  Communication plays an important role in the successful operation of all organizations. Which of the following statements concerning organizational communications is false?

  A. Communication involves at least two people:a sender and a receiver.
  B. Communication is what the sender says, not what the receiver understands.
  C. Every act of communication influences the organization in some way.
  D. Management spends the majority of its time communicating with other members of the organization.
  B. Communication is what the sender says, not what the receiver understands.

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  The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message flows, the receiver, and feedback. Because the effectiveness of communication can be known only by its impact on the receiver and the perceived change in the receiver's behavior, the received message must govern the definition. The sent message may be garbled in encoding, in transmission, or in the receiver's decoding.

• Question 168:

  Which of the following scenarios illustrates an organization that has become out of balance by focusing too much on efficiency rather than effectiveness?

  A. The job is not completed and resources are wasted.
  B. The job is completed but resources are wasted.
  C. The job is not completed but resources are not wasted.
  D. The job is completed and resources are not wasted.
  C. The job is not completed but resources are not wasted.

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  In the narrowest sense, effectiveness is achievement of objectives. It is contrasted with efficiency, which is the ratio of output to input. In the broadest sense, an organization must achieve its objectives efficiently to be considered effective. When the job is not completed but resources are not wasted, the organization is out of balance by focusing too much on efficiency.

• Question 169:

  Which of the following is not a technological factor that may lead to overbuilding?

  A. Long lead times for adding capacity.
  B. Changes in production technology.
  C. The presence of economies of scale.
  D. High exit barriers.
  D. High exit barriers.

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  The following are technological factors that may lead to overbuilding:

  (1)

  capacity may need to be added in large increments; (2) the presence of economies of scale or a steep learning curve encourages preemption; (3) long lead times for adding capacity increase the risk of competitive inferiority if a firm does not act quickly to raise capacity;

  (4)

  when the minimum efficient scale increases, large plants are becoming more efficient even though demand is not growing:and

  (5)

  changes in production technology result in new construction while old plants remain in operation. High exit barriers are a structural factor that may lead to overbuilding. The effect of high exit barriers is to extend the period of overcapacity.

• Question 170:

  Which of the following is false regarding transformational leadership?

  A. Transformational leadership emphasizes vision, development of the individual, empowerment of the worker, and the challenging of traditional assumptions.
  B. Transformational leaders use traditional thinking to monitor employees so that the employees adhere to standards.
  C. Transformational leaders have charisma and provide intellectual stimulation to the workers.
  D. Transformational leaders expect employees to achieve more than the employees thought was possible.
  B. Transformational leaders use traditional thinking to monitor employees so that the employees adhere to standards.

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  Transformational leaders have charisma and provide intellectual stimulation to the workers. In addition, they will emphasize vision, focus on development of the individual, empowerment of the worker, and the challenging of traditional assumptions. A transactional leader, on the other hand, would monitor employees to ensure that they adhered to standards.