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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 11:

  According to Edward T. Hall, the perception of time is monochronic or polychronic. Which cultures perceive time as monochronic?

  A. Northern European.
  B. Latin American.
  C. Arabic.
  D. Mediterranean.
  A. Northern European.

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  The perception of time as it relates to business and social life varies with the culture. Polychronic time is based on a perception that time is nonlinear, flexible, and multidimensional. This perception is typical of Mediterranean, Latin American, and Arabic cultures. Monochronic time is based on a perception that time is the same for everyone and is measurable in standard units. This perception is common in Northern Europe and the U.S. These western cultures believe in punctuality and that time is money and should not be wasted.

• Question 12:

  While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. Under such a philosophy, the opportunity for cost reductions would be greatest in which stage of the life cycle?

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

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  During the growth stage, the opportunity for cost reductions is at its maximum because production volume is increasing at a high rate. Thus, fixed costs are being spread over more units of production, and the benefits of the learning curve are being realized.

• Question 13:

  Which of the following is least likely to be an example of synergy?

  A. A shopping mall with several businesses providing different products and performing different services.
  B. A car dealership providing warranties on automobile parts to maximize customer value.
  C. A manufacturing company hiring a new manager with technological experience lacking in the company.
  D. Military Humvees being converted into sports utility vehicles for sale to civilians.
  B. A car dealership providing warranties on automobile parts to maximize customer value.

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  Synergy occurs when the combination of formerly separate elements has a greater effect than the sum of their individual effects. However, a car dealership's provision of warranties reflects anoperational strategy designed to provide post-purchase services to gain a competitive advantage and maximize customer value. It does not reflect the complementary sharing of resources, technology, or competencies. In contrast, synergy arises from selling a line of carsthat share some components or abrand identification.

• Question 14:

  Power is synonymous with leadership. Simply, it is the ability to influence other people. The sources of power are various. For example, the kind of power arising from the strength of the leader's personality is known as:

  A. Coercive power.
  B. Legitimate power.
  C. Expert power.
  D. Referent power.
  D. Referent power.

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  Power may be classified as reward power (the leader controls resources), coercive power (the leader may punish the subordinate), legitimate power (the leader has the right to lead), referent power (the leader has fame, charisma, etc.), and expert power (the leader has specialized ability or knowledge).

• Question 15:

  Steps in a negotiation include clarifying interests, identifying options, designing alternative deal packages, selecting a deal, and perfecting the deal. The type of negotiation described is:

  A. Two-party.
  B. Three-party.
  C. Added-value.
  D. Ineffective.
  C. Added-value.

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  In added value negotiating, the two sides make multiple deals to "add value" to the process. Clarifying interests, identifying options, designing alternative deal packages, selecting a deal, and perfecting a deal are all steps in added-value negotiating.

• Question 16:

  A purchasing agent placed a rush telephone order with a supplier. The clerk in the supplier's office repeated the order specifications back to the purchasing agent. No written confirmations were exchanged. The shipment arrived late and was of the wrong quantity.

  However, the purchasing agent was unable to prove that the shipment was unsatisfactory.What link of the communication chain has failed in this scenario?

  A. Encoding.
  B. Decoding.
  C. Medium.
  D. Feedback.
  C. Medium.

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  In the communication process, the medium is the channel through which the communication flows. The failure in this case was caused by the choice of a medium that did not create a permanent record of the facts of the communication. A multinational firm was attempting to buy a controlling interest in a medium size US $10 million annual sales) foreign metal-working firm. The multinational firm's negotiator in the foreign country sent the following email:The foreign firm won't deal unless 51% ownership." The executive committee of the multinational firm, not wanting a minority interest, then canceled the deal. Upon returning to the multinational firm, the negotiator pointed out that the foreign firm wanted to sell no more than 51% ownership in order to retain at least 49%. Thus, the deal could have been made.

• Question 17:

  Centralization and decentralization are defined according to the relative delegation ofdecision-makingauthority by top management. Many managers believe that decentralized organizations have significant advantages over centralized organizations. A major advantage of a decentralized organization is that:

  A. Decentralized organizations are easier to control.
  B. Decentralized structures streamline organizations and eliminate duplication of resources.
  C. Decentralized organizations have fewer managers than centralized organizations.
  D. Decentralized organizations encourage increased initiative among employees.
  D. Decentralized organizations encourage increased initiative among employees.

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  A decentralized organization allows lower level employees to participate in decision making. This increased involvement encourages initiative and creative thinking and is especially appropriate in complex and rapidly changing environments.

• Question 18:

  Noise may disrupt communication during transmission. All of the following are examples of noise except:

  A. Selective perception.
  B. Static on a telephone line.
  C. A letter lost because it was interspersed with junk mail.
  D. A participant in a conversation being called away for a meeting.
  A. Selective perception.

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  Noise in a communication channel is an outside disruption that impedes the flow of a message. It can vary from real noise, such as loud machines running and static on a phone line, to disruptions such as phone calls during a face-to-face conversation. Selective perception on the part of either the sender or the receiver of a message is not noise because it is not an outside disruption.

• Question 19:

  Understanding the best alternative to a negotiated agreement (BATNA) helps a negotiator to avoid which of the following? I. Accepting an unfavorable settlement. II. Rejecting a favorable settlement:

  A. I only.
  B. II only.
  C. land II.
  D. Neither I nor II.
  C. land II.

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  Accepting an unfavorable settlement and rejecting a favorable settlement are two mistakes avoided by understanding the BATNA. The BATNA is the acceptable minimum outcome if a negotiator cannot obtain the desired result.

• Question 20:

  Which of the following is the acceptable minimum outcome if a negotiator cannot obtain the desired result?

  A. Win-win attitude.
  B. Cooperation.
  C. Best alternative to a negotiated agreement (BATNA).
  D. Win-lose attitude.
  C. Best alternative to a negotiated agreement (BATNA).

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  BATNA is the acceptable minimum outcome if a negotiator cannot obtain the desired result. The BATNA helps a negotiator to avoid accepting an unfavorable agreement and rejecting a favorable agreement.