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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 291:

  Which of the following statements is true regarding leadership styles?

  A. The manager dictates all decisions to the employees, so communication is downward and tasks are clearly defined in authoritarian leadership.
  B. Employees in a group are given the authority and responsibility to make individual decisions in democratic leadership.
  C. The leader delegates substantial authority and employees participate in defining and assigning tasks in laissez-faire leadership.
  D. None of the answers are correct.
  A. The manager dictates all decisions to the employees, so communication is downward and tasks are clearly defined in authoritarian leadership.

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  When a manager uses an authoritarian leadership style, he or she dictates all decisions to the employees, so communication is downward. Moreover, tasks are clearly defined. This is considered the classical approach to leadership. Employees are not allowed to give input.

• Question 292:

  A firm that sells in foreign markets should consider all aspects of how products move from the firm to ultimate users. Where in the whole channel are marketing mix decisions most likely made?

  A. Export department of the seller firm.
  B. Import department of the buyer firm.
  C. Channels within nations.
  D. Channels between nations.
  A. Export department of the seller firm.

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  Distribution channels are a necessity to ensure that goods are successfully transferred from the production facility to end users. These channels include three distinct links that must work smoothly together.

  1.

  The international marketing headquarters (export department of international division) is where decisions are made with regard to the subsequent channels and other aspects of the marketing mix.

  2.

  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.

  3.

  Channels within nations take the goods from the border or entry point to the ultimate users of the products. Among nations, the number of levels of distribution, the types of channels, and the size of retailers vary substantially.

• Question 293:

  Cultures have been described as low-context or high-context. Which culture is high- context?

  A. Germany.
  B. Saudi Arabia.
  C. Great Britain.
  D. Swillerland.
  B. Saudi Arabia.

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  Hall drew a distinction between high-context and low-context cultures. In high-context cultures (e.g., Japanese, Chinese, Arabic, and Korean), much meaning is transmitted by nonverbal cues and situational circumstances. Thus, a person's status in a firm, rank in society, and reputation convey the primary message. In low- context cultures (e.g., Northern Europe and North America), primary messages are transmitted verbally. Hence, precise written contractual agreements are highly valued. In contrast, social events are more highly valued in a highcontext culture.

• Question 294:

  Conflict arising as a result of a sales manager making delivery promises to customers that are incompatible with the low inventory levels maintained by the production manager is an example of which of the following types of interpersonal conflict?

  A. Personal differences.
  B. Information deficiency.
  C. Role incompatibility.
  D. Environmental stress.
  C. Role incompatibility.

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  The sales manager has made promises that the production manager cannot keep. Their interpersonal conflict arises from a common type of role incompatibility. The sales manager'srole is to maximize sales, but the production manager's role is, in part, to achieve production efficiencies, for example, by maintaining low inventories. Thus, individual and Intergroupconflict has occurred because the functional responsibilities of the managers are interdependent in an interfunctional organization.

• Question 295:

  A public university would be considered which type of organization?

  A. Commonweal organization.
  B. Business organization.
  C. Nonprofit service organization.
  D. Mutual benefit organization.
  C. Nonprofit service organization.

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  Nonprofit service organizations include charities and universities. Nonprofit service organizations serve particular groups of clients.

• Question 296:

  A leader who explains decisions and provides opportunity for clarification is described as having which leadership style?

  A. Selling.
  B. Telling.
  C. Participating.
  D. Delegating.
  A. Selling.

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  According to Hersey and Blanchard, a selling style of leadership provides a high degree of task orientation and a high degree of relationship orientation. This type of leader explains decisions and provides opportunities for clarification. Thus, upward and downward, two- way communication is active. This approach is more democratic than authoritarian.

• Question 297:

  Which of the following statements is true with regard to a vertically integrated acquisition?

  A. A grocery store chain that purchases a dairy and begins to make milk-based products under its own brand is forward integrated.
  B. A movie producer that acquires a chain of theaters is backward integrated.
  C. A clothing manufacturer that acquires a chain of clothing stores is forward integrated.
  D. A soda maker that purchases its leading competitor is backward integrated.
  C. A clothing manufacturer that acquires a chain of clothing stores is forward integrated.

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  Vertical integration occurs upstream (backward) by acquiring suppliers or downstream (forward) by acquiring wholesalers and retailers. An example of forward integration is a clothing manufacturer's acquisition of a chain of clothing stores in which to sell its products.

• Question 298:

  Firm A mostly does business in markets in the southern part of the country. Firm B mostly does business in markets in the western part of the country. However, Firm A has recently moved to compete with Firm B in the western part of the country by introducing its existing products there. Accordingly, Firm B has entered Firm As primary markets. What kind of market signal did Firm B send?

  A. A cross-parry.
  B. A bluff.
  C. An introduction of a fighting brand.
  D. A direct response.
  A. A cross-parry.

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  The cross-parry is a response to a competitor's move in one area with a move in another. For example, Firm X, which is well entrenched in region A, may move to compete with Firm Y in its stronghold in region B. Firm Ys cross-parry is to enter the market in region A. A cross-parry is an indirect response by the defending firm that potentially avoids destructive conflict in the newly penetrated market. However, it also signals the possibility of retaliation, especially if it occurs in one of the initiating firm's key markets. For example, price cutting as a cross-parry may be very effective against a firm with a large share of the market where the parry is made. This firm has more to lose in a price war in that market. Consequently, maintenance of a presence in a cross market deters the large-share firm from attacking elsewhere.

• Question 299:

  An organization that makes precision castings for the automotive and aerospace industries plans to build a manufacturing plant. The president has formed a small committee of senior managers to evaluate potential plant sites and make the final choice. Which of the following is correct about the president's approach to making this decision?

  A. A site that receives the committee's unanimous approval can be presumed to be the best choice available.
  B. The committee's decision will receive greater opposition than a decision made by one executive.
  C. Committee members will tend to encourage creative thinking and innovative viewpoints among themselves.
  D. The fact that the decision was made by a committee obscures the role of personal accountability.
  D. The fact that the decision was made by a committee obscures the role of personal accountability.

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  When a decision is made by a group rather than an individual, accountability is spread over the members of the group rather than concentrated on an individual. Opportunities for groupthink and buck-passing are abundant because no one person answers for the consequences.

• Question 300:

  Which of the following is an example of upward communication?

  A. Management's notices on bulletin boards.
  B. Grievance actions.
  C. Informational inserts in pay envelopes.
  D. Personnel policy manuals.
  B. Grievance actions.

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  Grievance actions are a formal means of bringing employee dissatisfaction to the attention of management, i.e., from the bottom upward.