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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 241:

  Managerial attitudes toward global operations are viewed by researcher HowardPerl mutteras a key to understanding multinational firms. A polycentric attitude is indicated by

  A. An identification with the nationality of the owner.
  B. Evaluation and control standards that are both local and global.
  C. High information flow in multiple directions.
  D. Relatively little decision making by the central administrative authority.
  D. Relatively little decision making by the central administrative authority.

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  A polycentric attitude assumes that cultural differences require local managers to make most decisions because they are more knowledgeable about local conditions than are central administrators. Thus, development of local managerial talent is crucial. Another result is that foreign operating performance is primarily evaluated based on results. As a consequence,methods, training, and incentives vary significantly among subsidiaries. Furthermore, control is predominantly local, the firm is identified with the nationality of the host nation, and relatively little communication occurs with central administration or among subsidiaries. One disadvantage is that local operations may have inefficiencies because of duplication of activities. Another disadvantage is loss of goal congruence between local entities and the firm as a whole. Advantages are more capable and motivated local managers, better results in local markets, local development of new product ideas, and stronger support by host governments.

• Question 242:

  What is a primary reason for planning?

  A. Reacting to employee needs.
  B. Environmental uncertainty.
  C. Reacting to competition.
  D. Organizational policy.
  B. Environmental uncertainty.

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  Planning is influenced and limited constrained) by external environmental) factors, the effects of which cannot be determined with certainty. Market trends, social change, competitors' actions, and governmental regulation are among these environmental factors.

• Question 243:

  A company experiences a decrease in unit sales over the long run. It is in a(n):

  A. Emerging industry.
  B. Global industry.
  C. Mature industry.
  D. Declining industry.
  D. Declining industry.

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  A declining industry is not simply at a low point in the business cycle but has sustained a permanent decrease in unit sales over the long run. Michael E. Porter's view is that this phase of the industry life cycle does not correspond exactly to the decline stage in the product life cycle. Moreover, he argues that the nature of the competition and the range of strategic choices in the decline phase are diverse and vary widely from industry to industry. The result is that some industries may be able to negotiate decline without intense rivalry, long-term overcapacity, and ruinous losses.

• Question 244:

  All of the following are skills that managers must focus on when attempting to manage time properly except:

  A. The ability to focus on results.
  B. Striving to stay busy.
  C. Concentrating time and energy on tasks with the highest payoffs.
  D. The ability to plan, delegate, organize, direct, and control.
  B. Striving to stay busy.

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  To function effectively, managers must learn to manage time properly. The key principle is to focus on results rather than on staying busy. Time management is actually self- management. The skills needed to manage others are the same skills needed to manage oneself. Time management requires self-discipline and control until it becomes an everyday habit.

• Question 245:

  Nonverbal communication is a powerful but little-understood form of communication in organizations. All of the following represent forms of nonverbal communication except:

  A. The tone of voice a person selects.
  B. The positioning of furniture in a person's office.
  C. Prolonged eye contact.
  D. A facsimile message from a business associate.
  D. A facsimile message from a business associate.

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  Nonverbal communication consists of the nuances that accompany a verbal communication. For instance, the tone of a speaker's voice may communicate something totally different from the words being spoken. Similarly, body language facial expressions, gestures,posture, and appearance) is a nonverbal communicator. Even the positioning or nature of furniture in an office may communicate something to a listener. A fax message, however is a verbal communication to the extent that it contains words.

• Question 246:

  Which one of the following is a social trend affecting the organization?

  A. Changes in labor markets.
  B. Tougher legislation to protect the environment.
  C. Rising inflation.
  D. Replacements for steel in cars and appliances.
  A. Changes in labor markets.

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  Social trends, such as changes in labor markets, reflect social, cultural, and demographic factors in the organization'smicroenvironmentthat may constitute opportunities or threats (identified in a SWOT analysis). The attributes of people (age, education, income, ethnicity, family status, etc.) and their beliefs, attitudes, and values shape and are shaped by social trends that in turn affect the organization. Thus, changes in the characteristics, sources, locations, and costs of labor resources supplied (a basic factor of production) have great effects on an organization's strategic position.

• Question 247:

  Which of the following is a potential disadvantage to listening by a manager?

  A. Demonstrates concern for subordinates by the manager.
  B. Concentration may be focused on the words spoken to the exclusion of the ideas.
  C. Gain more information about the workplace.
  D. May result in higher employee morale.
  B. Concentration may be focused on the words spoken to the exclusion of the ideas.

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  If a manager is focused on the words spoken by someone else and not the intended ideas, there is a decoding problem. Effective listening requires understanding the message the communicating party is trying to convey.

• Question 248:

  A firm ships its product to a foreign subsidiary and charges a price that may increase import duties but lower the income taxes paid by the subsidiary. The most likely reason for these effects is that the:

  A. Price is an arm's-length price.
  B. Price is a cost-plus price.
  C. Transfer price is too low.
  D. Transfer price is too high.
  D. Transfer price is too high.

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  A transfer price is the price charged by one subunit of a firm to another. When the subsidiarybuyer is in a foreign country, the higher the transfer, the higher the potential tariffs.However, the tax levied on a subsequent sale by the subsidiary will be lower because of its higher acquisition cost.

• Question 249:

  Which one of the following statements about the nature of communication is true?

  A. Communication occurs only when people deliberately and consciously decide to communicate.
  B. Accounting terms such as expense, revenue, net income, and variance mean the same to all users.
  C. Because managerial accounting reports classify and summarize vast amounts of data, the reports do not add to the information overload within an organization.
  D. Communication between departments is affected by the level of functional specialization within departments.
  D. Communication between departments is affected by the level of functional specialization within departments.

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  Communication between departments is sometimes affected by the level of functional specialization within those departments. Noise of any sort can inhibit communication, and that noise can be physical or nonphysical. An example of nonphysical noise is the difference in expertise between the sender and the recipient. A sender must establish a climate that encourages the elimination of interpersonal barriers to communication.

• Question 250:

  A small engineering consulting firm accepts special projects from customers in a variety of fields. Its choice of an organic organizational design was most likely based on its:

  A. Lack of concern for self-fulfillment of employees.
  B. Preference for formal communication.
  C. Adoption of directive leadership style.
  D. Participative decision making processes.
  D. Participative decision making processes.

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  The organic structure is best suited to a company that emphasizes operational efficiency less than the flexibility needed to respond quickly to changes in its environment and the creativity to find solutions to new problems. Decision making in this context tends to rely on input from many sources and requires multidirectional communication. Hence, a horizontal or flat structure typified by project or matrix management will be appropriate.