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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 171:

  Which one of the following statements about human perception and human perception's role in the communication process is false?

  A. Perception is used to interpret information from the environment.
  B. Perception can distort communication only at the end of the communication process.
  C. Selective perception refers to the tendency to remember what we prefer and to forget what we are uncomfortable with.
  D. Stereotyping is a form of perceptual organization.
  B. Perception can distort communication only at the end of the communication process.

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  Managers must always consider the perceptions of a message recipient. Recipients vary in their perception of messages because of background, language, education, attitudes toward the sender such as stereotyping) and job, etc. This variance can result in communication distortion at any stage of the communication process.

• Question 172:

  A company sells a diverse line of cookies. Its acquisition of another company, a maker of cake mixes, is most likely an example of

  A. Vertical integration.
  B. Horizontal diversification.
  C. Concentric diversification.
  D. Conglomerate diversification.
  B. Horizontal diversification.

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  Horizontal diversification is the acquisition of businesses making products unrelated to current offerings but that might appeal to the firm's current customers. Cookies and cake mixes are based on different technologies but may be demanded by the same customers.

• Question 173:

  In which industry structure is differentiation absent, and all sellers charge the same price?

  A. Monopoly.
  B. Monopolistic competition.
  C. Oligopoly.
  D. Pure competition.
  D. Pure competition.

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  An industry consists of firms selling products or services that are substitutes. One way to describe an industry considers the number of sellers and the extent of differentiation ofproducts and services. In pure competition, differentiation is absent, and the same prices are charged by all sellers.

• Question 174:

  Which one of the following is generally not beneficial to group decision making in an organization?

  A. More information.
  B. Acceptance.
  C. More knowledge.
  D. Dominant members.
  D. Dominant members.

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  Group decision making, such as by committee, works better when the committee is small and the members accept each other as contributing parts of the group. A dominant member is not desirable. The chair should act as a moderator and not be considered threatening or overbearing by the other members.

• Question 175:

  Which of the following does not describe perception?

  A. Selectivity.
  B. Organization.
  C. Objective.
  D. Interpretation.
  C. Objective.

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  Perception is the process through which someone gives meaning to the surrounding environment. Perception consists of three subprocesses:selectivity, organization, and interpretation. Objectives focus upon the purpose of communication rather than the receipt and interpretation perception).

• Question 176:

  The primary difference between centralization and decentralization is:

  A. Separate offices for all managers.
  B. Geographical separation of divisional headquarters and central headquarters.
  C. The extent of freedom of decision making by many levels of management.
  D. The relative size of the firm.
  C. The extent of freedom of decision making by many levels of management.

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  The primary distinction between centralization and decentralization is in the degree of freedom of decision making by managers at many levels. In decentralization, decision making is at as low a level as possible. The premise is that the local manager can make better more informed) decisions than a centralized manager. Centralization is based on the theory that decision making must be consolidated so that activities throughout the organization may be more effectively coordinated. In most organizations, a mixture of these approaches is found to be best.

• Question 177:

  Which of the following is not a step in the establishment of a competitive intelligence system?

  A. Data analysis.
  B. Data collection.
  C. Information dissemination.
  D. Classification of competitors.
  D. Classification of competitors.

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  A competitive intelligence system is established to identify competitor strategies, monitor their new-product introductions, analyze markets for the firm's own new-product introductions and acquisitions, obtain information about nonpublic firms, evaluate competitor RandD activity, learn about competitors' senior executives, and perform other necessary information gathering tasks. Its establishment consists of setting up the system, collecting data, analyzing the data, and disseminating the information. Classification of competitors, however, is not a step in this process. Competitors are classified and targeted by a firm based on that classification following the results of a customer value analysis (CVA).

• Question 178:

  Which of the following is false with regard to email policies?

  A. Employees may use informal writing because email is often informal in nature.
  B. Employees should understand that the organization has a legal right to monitor the employees' use of the email system.
  C. Filters should be used to protect against spam.
  D. Emails should be concisely written.
  A. Employees may use informal writing because email is often informal in nature.

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  The principles of good writing still apply to emails. Therefore, emails should be written like any other formal communication within the organization.

• Question 179:

  The basic purposes of an organization's internal communications network include all of the following except:

  A. Obtaining a common focus among employees.
  B. Informing potential investors about company operations and financial results.
  C. Aiding high-quality decision making.
  D. Integrating the efforts of specialists.
  B. Informing potential investors about company operations and financial results.

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  Because all managerial functions require communication, it is the secret to the success of any manager. A manager's ability to understand other people, and their ability to understand the manager, are crucial to accomplishing organizational objectives. Communication is the link that ties an organization together and transforms a diverse group of people into a cohesive whole. An organization's internal communications network is designed to facilitate decision making among managers, to promote goal congruence among employees, integrate the efforts of all employees, and build high morale and mutual trust. Informing potential investors about company operations is a purpose of the external, not internal, communications network.

• Question 180:

  In a declining industry with a favorable structure, a firm may have the ability to recover additional investment or to earn above-average returns in the remaining pockets of demand. Such a firm is most likely to follow a:

  A. Quick divestment strategy.
  B. Harvest strategy or quick divestment strategy.
  C. Leadership strategy or harvest strategy.
  D. Leadership strategy or niche strategy.
  D. Leadership strategy or niche strategy.

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  A leadership strategy is pursued by a firm that believes it can achieve market share gains to become the dominant firm. An assumption is that additional investment can be recovered. A second assumption is that success will put the firm in a better position to hold its ground or subsequently to follow a harvest strategy. A niche strategy seeks a market segment (pocket of demand) with stable or slowly decreasing demand with the potential for above-average returns. Some of the moves undertaken when following a leadership strategy may be appropriate. The firm may eventually change to a harvest or divest strategy.