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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 281:

  Which country is best described as having an individualistic culture?

  A. India.
  B. Japan.
  C. Canada.
  D. China.
  C. Canada.

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  Individualistic cultures are societies that place a higher value on the rights and accomplishments of individual persons within the society. Examples are the U.S., U.K,Canada, and Australia. Collectivist cultures focus much more on the goals of family, friends, country, and the organization. Examples are China, India, Mexico, Japan, and Egypt.

• Question 282:

  Which of the following best describes a market synergy?

  A. Technology transfer from one product to another.
  B. Bundling of products distributed through the same channels.
  C. Production of multiple products at one facility.
  D. Use of complementary management skills to achieve entry into a new market.
  B. Bundling of products distributed through the same channels.

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  Market synergy arises when products or services have positive complementary effects. Shopping malls reflect this type of synergy. Also, bundling of products, distribution through the same distribution channels, and use of the same sales force are other examples of market synergies.

• Question 283:

  During the growthstage of a product's life cycle:

  A. The quality of products is poor.
  B. New product models and features are introduced.
  C. There is little difference between competing products.
  D. The quality of the products becomes more variable and products are less differentiated.
  B. New product models and features are introduced.

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  In the growth stage, sales and profits increase rapidly, cost per customer decreases, customers are early adopters, new competitors enter an expanding market, new product models and features are introduced, and promotion spending declines or remains stable. The firm enters new market segments and distribution channels and attempts to build brand loyalty and achieve the maximum share of the market. Thus, prices are set to penetrate the market, distribution channels are extended, and the mass market is targeted through advertising. The strategy is to advance by these means and by achieving economies of productive scale.

• Question 284:

  Which of the following is a staff position in the bank?

  A. The manager of customer service-checking, the department that handles checking account inquiries and transactions.
  B. The directory of personnel, the department that handles the hiring, firing, promotion, etc., of all employees.
  C. The chief loan officer, who is in charge of final approval of all loans.
  D. The vice president in charge of the mortgage department, which handles mortgages on business and residential property.
  B. The directory of personnel, the department that handles the hiring, firing, promotion, etc., of all employees.

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  Staff positions in any organization advise and support the line positions. They indirectly help to achieve the organization's basic objective. Each staff position's authority is, at most, functional. Such authority is exercised only over activities related to the staff's function or specialty.

• Question 285:

  Usually, the cheapest way to gain market share is by targeting what class of competitors?

  A. Close competitors.
  B. Distant competitors.
  C. Weak competitors.
  D. Bad competitors.
  C. Weak competitors.

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  Using the results of a customer value analysis, a firm may target a given class of competitors in order to gain market share. Although there are various methods, targeting weak competitors is usually the cheapest way to gain market share because weak competitors generally do not offer much resistance.

• Question 286:

  The inherent attractiveness of a national market is most likely increased by which factor?

  A. The firm's strategic position.
  B. The market's exclusion from a regional free trade zone.
  C. Unmet needs of a developing nation.
  D. Product adaptation is costly.
  C. Unmet needs of a developing nation.

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  Attractiveness is a function of such factors as geography, income, climate, population, and the product. Another major factor is the unmet needs of a developing nation, for example, China or India.

• Question 287:

  A team is a group whose members work together to achieve a specific common goal. Which of the following is true with respect to teams?

  A. All groups are teams, but not all teams are groups.
  B. Teams improve organizational performance because teams are easy to form.
  C. A team is similar to a group because team leadership often rotates and members are accountable to each other.
  D. Smaller teams are recommended.
  D. Smaller teams are recommended.

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  Normally, smaller teams are recommended. Two to nine members is recommended because working in teams requires accepting a diversity of ideas and opinions. Larger groups require more time for each of the members to develop trust in one another and to work together productively.

• Question 288:

  The General Electric (GE) portfolio model for competitive analysis of strategic business units (SBUs) should be compared with the Boston Consulting Croup's growth-share matrix. The GE model:

  A. Is a matrix with two variables:relative market share and market growth rate.
  B. Calculates an index for each of its two variables.
  C. Considers such factors for business strength as market size, growth rate, and price levels.
  D. Considers such factors for market attractiveness as market share, growth rate, and marketing skills.
  B. Calculates an index for each of its two variables.

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  The GE model is a multifactor portfolio matrix with two variables. Business strength or competitive position (BUS) is on one axis, and market attractiveness (MAT) is on the other. BUS is classified as strong, medium, or weak, and MAT is classified as high, medium, or low. Thus, the matrix in this model is 3 x 3 and has nine cells. SBUs are shown in the matrix as circles. Circle size is directly proportional to the size of the related market, with a shaded portion in the circle that represents the SBU's market share. To measure BUS and MAT, the firm must isolate the multiple factors affecting each, quantify them, and create an index. Factors will vary with each business. The measurements will provide the values on the axes of the matrix.

• Question 289:

  U .S firm most likely may decide to enter the Australian market because of :

  A. Geography.
  B. The unmet needs of an undeveloped country.
  C. Psychic proximity.
  D. Population.
  C. Psychic proximity.

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  Attractiveness of a foreign market is a function of such factors as geography, income, climate, population, and the product. Another major factor is the unmet needs of a developing nation, for example, China or India. Entry into a market abroad may be based on many factors, for example, psychic proximity. Thus, a first-time venture abroad might be in a market with a related culture, language, or laws.

• Question 290:

  A vertically integrated organization is best described as one that:

  A. Owns all of its production facilities.
  B. Manufactures the component parts used in its product.
  C. Is departmentalized by product or service.
  D. Fosters very narrow span of control.
  B. Manufactures the component parts used in its product.

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  An organization is vertically integrated if it unites sources of supply, the production of finished goods, and the marketing of the product. In other words, complete vertical integration combines all phases of the production and delivery of products or services.