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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 301:

  The human resource department of an organization observed that accounting staff turnover was unusually high. Exit interviews indicated that the accounting department work schedule was highly restrictive for accountants who had young children. To improve the retention of skilled employees in the accounting department, the best solution would be to:

  A. Implement a program of job rotation within the accounting department.
  B. Promote job enlargement for the positions experiencing the greatest turnover.
  C. Provide job sharing and flextime opportunities for accounting department employees.
  D. Enrich the jobs of accounting department employees.
  C. Provide job sharing and flextime opportunities for accounting department employees.

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  Job sharing and flextime allow employees to adjust their work schedules and hours to better achieve personal objectives. These programs can increase worker loyalty and motivation.

• Question 302:

  The competitive factor that may lead to overbuilding in an industry is:

  A. The need of large customers to know that capacity exists to meet their long-term requirements.
  B. A significant first mover advantage.
  C. The advantage held by the capacity leader.
  D. The existence of high entry barriers.
  B. A significant first mover advantage.

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  First mover advantages may be significant. Thus, shorter lead times for ordering equipment, lower costs, and the ability to exploit an excess of demand over supply may encourage too many firms to expand.

• Question 303:

  The generic strategic costs of vertical integration include:

  I . Reduction of operating leverage

  II. Need to overcome mobility barriers Ill. A decrease in exit barriers

  IV.

  Loss of access to supplier technology

  A. I and Ill only.
  B. II and IV only.
  C. II, Ill, and IV only.
  D. I, II, Ill, and IV.
  B. II and IV only.

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  Integration is a special case of entry into a new business. Thus, the firm must incur costs to overcome mobility barriers to enter the adjacent business:economies of scale, proprietary technology, capital investment, sources of materials, etc. Integration also increases fixed costs and operating leverage, which is in itself a cause of increased business risk. Thus, an integrated firm is exposed to fluctuations affecting any of its components. For example, sales of an upstream component depend on sales of downstream components. Moreover, integration may increase the difficulty of leaving the industry (exit barriers). Finally, integration may foreclose access to supplier or customer technology. The integrated firm may have to create its own technology rather than taking advantage of supplier/customer expertise.

• Question 304:

  Which of the following is not a characteristic of informal groups?

  A. Informal groups are developed to establish friendships.
  B. Informal groups tend to be small and very complex.
  C. Membership in informal groups lasts longer than membership in formal groups.
  D. Informal groups develop their own leaders.
  C. Membership in informal groups lasts longer than membership in formal groups.

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  Membership in formal groups tends to last longer than membership in informal groups. Membership in both groups is usually different as well.

• Question 305:

  A construction manager is using a distributive-bargaining approach in negotiating the price of lumber with a supplier. The construction manager will:

  A. Concede to the supplier's asking price in order to maintain a positive working relationship.
  B. Hire a mediator to negotiate the deal on behalf of the manager.
  C. Attempt to get agreement on a price within the settlement range (that is, within both the manager's and supplier's aspiration ranges).
  D. State the resistance point (that is, the highest price acceptable) and ask the supplier to concede.
  C. Attempt to get agreement on a price within the settlement range (that is, within both the manager's and supplier's aspiration ranges).

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  When using a distributive-bargaining approach, the negotiator operates with a maximum desired result (target point) and a minimum acceptable result (resistance point) in mind. If the ranges of feasible outcomes (aspiration ranges) overlap, an agreement is possible.

• Question 306:

  People with a high need for achievement usually do not:

  A. Perform best when they perceive risks are high.
  B. Seek situations in which they can attain personal responsibility for problem solving.
  C. Function effectively as salespeople.
  D. Prefer frequent and unambiguous feedback.
  A. Perform best when they perceive risks are high.

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  People with a high need for achievement prefer tasks of intermediate difficulty. They want success or failure to be the result of their own actions. High achievers avoid easy tasks because of the lack of challenge and difficult tasks because of the low probability of success.

• Question 307:

  The alignment of managerial goals with organizational goals usually requires:

  I. Assigning responsibility for activities.

  II. Delegating the authority to perform necessary tasks.

  III. Establishing accountability.

  IV.

  Measuring and evaluating performance.

  A. I and IV only.
  B. I, II, and III only.
  C. II, Ill, and IV only.
  D. I, II, Ill, and IV.
  I. Assigning responsibility for activities. II. Delegating the authority to perform necessary tasks. III. Establishing accountability. IV. Measuring and evaluating performance.
  D. I, II, Ill, and IV.

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  Authority is the right to direct and exact performance from others, including the right to prescribe the means and methods by which the work will be done. The right to direct should be distinguished from the ability the power) to accomplish tasks. Responsibility is the obligation to perform. In the classical view, this obligation is formally imposed by a superior and is inherent in any job. In the behavioral view, responsibility must and should be delegated; there is a successive dividing and passing down of obligation. The appropriate amount of authority or power must be delegated with the responsibility. However, a higher position cannot escape ultimate responsibility. Accountability is the duty to account for the fulfillment of the responsibility. In practice, accountability is the duty to report performance to one's superior and the physical means for reporting or being able to substantiate performance, i.e., record keeping. Thus, measuring and evaluating performance is related to accountability. Consequently, an organizational structure is effective if it facilitates the contribution of individuals toward the attainment of enterprise objectives.

• Question 308:

  Entry by a firm into a new business may be through the creation of a full-fledged new business entity. The new entrant is most likely to cause industry disruption and retaliation when:

  A. The industry is fast-growing.
  B. The industry is highly concentrated.
  C. Fixed costs are low.
  D. The market is segmented.
  B. The industry is highly concentrated.

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  In a highly concentrated industry, the internal entrant is more likely to have a significant and noticeable effect on particular firms with the ability to retaliate. In a fragmented industry, any firms might be affected but not significantly. These firms also might have no ability to retaliate.

• Question 309:

  Which of the following management orientations is characterized by an organization's efforts to adapt the product and marketing program to each local environment?

  A. Ethnocentric.
  B. Polycentric.
  C. Geocentric.
  D. Fegiocentric.
  B. Polycentric.

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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. Accordingly, the polycentric attitude adapts to each local environment.

• Question 310:

  Which of the following is false concerning job motivation?

  A. Increased planning and decision making in a job is a positive motivator only if accompanied by a salary increase.
  B. Recognition of achievement motivates performance.
  C. Poor working conditions create dissatisfaction with the job.
  D. Poor interpersonal relations create dissatisfaction with the job.
  A. Increased planning and decision making in a job is a positive motivator only if accompanied by a salary increase.

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  Frederick Herzberg's two-factor theory of human behavior postulates that there are two classes of factors in the job situation. Maintenance of hygiene factors dissatisfiers) are those the presence of which will not especially motivate people but the absence of which will diminish performance. These factors are extrinsic to the work itself. They include supervision, working conditions, interpersonal relations, salary, and status. Motivational factors (satisfiers) are those the absence of which will not diminish performance but the addition or availability of which will motivate employees. Intrinsic to the work itself, these include achievement, recognition, challenging work, advancement, growth in the job, and responsibility. Thus, increased planning and decision making enrich the job and serve toincrease satisfaction and motivation. A pay increase is not necessary to achieve this positive effect, but a perceived inadequacy of compensation would act as a dissatisfier.