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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 231:

  For an industry to be genuinely global, it must be involved in which of the following significant activities?

  I. Licensing

  II. Export

  III.

  Direct Investment

  B. II. or Ill.
  D. Ill. only.
  I. and lll.
  B. II. or Ill.

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  A genuinely global industry requires a firm to compete globally. Participation in foreign markets is usually by licensing; export; or, after the firm has obtained experience, direct investment. A genuinely global industry will have significant export activity or direct investment. Nevertheless, direct investment does not necessarily signal the existence of global competition. Direct investment also may occur when purely national factors determine a subsidiary's competitive position.

• Question 232:

  With the globalization of economies, many organizations have expanded their operations to international locations. As an advisor to management, an internal auditor will most likelyrecommend that a geocentric, or worldwide, attitude be adopted. Select the reason the geocentric attitude is preferred.

  A. It promotes a simpler organizational structure.
  B. It provides greater autonomy for host country managers.
  C. It provides the best balance of local and worldwide objectives.
  D. It promotes tighter organizational control.
  C. It provides the best balance of local and worldwide objectives.

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  According to Howard Perlmutter, the geocentric attitude toward international operations is world oriented. The intention is to balance local and worldwide objectives in all aspects of operations, to maintain global standards while permitting local managers to exercise appropriate discretion.

• Question 233:

  Maslow's theory of motivation is based on a hierarchy of human needs. The need satisfied by greater income is:

  A. Self-actualization.
  B. Safety.
  C. Participation.
  D. Authority.
  B. Safety.

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  Maslow saw human needs as a hierarchy and held that lower-level needs physiological and safety needs) must be satisfied before higher-level needs acceptance by peers, esteem,self actualization) can influence the individual. Safety needs involve protection not only from physical harm but also from economic insecurity. Job and income security help to satisfy the need for safety.

• Question 234:

  The method of principled negotiation is based on which of the following principles?

  I. Separate the people from the problem.

  II. Focus on positions, not interests.

  III. Invent options for mutual gain.

  IV.

  Insist on using subjective criteria.

  A. I and II only.
  B. I and Ill only.
  C. I, II, and Ill only.
  D. II, Ill, and IV only.
  I. Separate the people from the problem. II. Focus on positions, not interests. III. Invent options for mutual gain. IV. Insist on using subjective criteria.
  B. I and Ill only.

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  The principled negotiation method focuses on basic interests, mutually satisfying options, and fair standards. The basic principles include (1) separating the people from the problem; (2) focusing on interests, not positions; (3) inventing options for mutual gain; and (4) insisting on using objective criteria.

• Question 235:

  Which of the following is unlikely to cause changes in attitudes?

  A. Make sure that the message is credible.
  B. Present many different issues in as short a time as possible.
  C. Shape the argument to the listener.
  D. Focus the presentation on the ultimate objective.
  B. Present many different issues in as short a time as possible.

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  Presenting many different issues in as short a time as possible will confuse the listener and cause the message to be lost or disregarded. To convey a persuasive message effectively, the communicator should make a clear presentation that focuses on the ultimate objective. The argument should be stated one idea at a time, and unrelated subjects and jumping from issue toissue should be avoided. The presentation should guide the recipient of the communication directly to the desired conclusion.

• Question 236:

  Communication is most likely to be effective when:

  A. The sender carefully considers the receiver's needs.
  B. Sender and receiver concentrate only on verbal messages.
  C. It changes the receiver's attitude.
  D. The receiver monitors the sender's behavior.
  A. The sender carefully considers the receiver's needs.

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  The needs, abilities, and skills of the receiver must be taken into account by the sender. The sender must fit the message to what the receiver can effectively receive or the message will be useless.

• Question 237:

  The sharing of important financial information with employees based upon a foundation of trust and commitment to training is known as

  A. Self-managed teams.
  B. Open-book management.
  C. Quality circles.
  D. Impression management.
  B. Open-book management.

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  Open-book management involves sharing important financial information with trained and empowered employees. This approach is founded on trusting employees, commitment to their training, and waiting patiently for results.

• Question 238:

  Which approach to understanding leadership focuses on the social skills, judgment, and maturity of the leader?

  A. Behavioral styles theory.
  B. Emotional intelligence theory.
  C. The Ohio State model.
  D. Path-goal theory.
  B. Emotional intelligence theory.

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  A recent traitist approach is based on the emotional intelligence of leaders, that is, their social skills and judgment, maturity, and emotional control. These abilities can be learned, especially when a manager or employee understands that

  immaturity, erratic behavior, and uncontrolled negative emotions have a bad effect on the workplace. According to Daniel Goleman, a leader can acquire social capital through exhibiting the following leadership traits:

  1Self-awareness is knowing oneself.

  2Self-management is the ability to prevent one's mood swings from interfering with positive relationships.

  3Social awareness is understanding the actions and emotions of others. This ability helps a person to adapt in a productive way.

  4Relationship management is an ability possessed by a person who communicates and resolves conflict effectively. Humor and a benign approach are characteristics of people who develop good relationships.

• Question 239:

  An organization has 10 groups of teams that each consists of multi-skilled workers. Workers are often transferred between teams when needed, and communication among and within groups is emphasized. The corporation would be classified as a(n)

  A. Hourglass organization.
  B. Cluster organization.
  C. Network organization.
  D. Virtual organization.
  B. Cluster organization.

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  A cluster organization is essentially a group of teams. The workers are often multi-skilled and shift among teams as needed. The workers undergo special training and team-building exercises. The pay is also based upon knowledge.

• Question 240:

  Distribution channels ensure that goods in international trade are transferred successfully to end users. Where are intermediaries, such as trading companies, most likely selected?

  A. Channels within nations.
  B. Export department of the seller.
  C. International division of the seller.
  D. Channels between nations.
  D. Channels between nations.

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  Channels between nations carry goods to foreign borders. They include air, land, sea, or rail transportation channels. At this stage, in addition to transportation methods, intermediaries are selected (e.g., agents or trading companies), and financing and risk management decisions are reached.