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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 311:

  Which strategy for a global marketing organization is based on a portfolio of national markets?

  A. reaction of a division to manage international marketing.
  B. A multinational strategy.
  C. A global strategy.
  D. Creation of an export department
  B. A multinational strategy.

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  International marketing efforts take three basic forms:creation of an export department, creation of a division to manage international marketing, or global organization. The latter encompasses genuinely worldwide functions, e.g., manufacturing, marketing, finance, and logistics. Thus, worldwide operations are the organization's focus, not merely that of a department or division of a national firm. A global organization may follow a multinational, global, or glocal strategy. A multinational strategy adopts a portfolio approach. Its emphasis is on national markets because the need for global integration is not strong. The product is customized for each market and therefore incurs higher production costs. Decision making is primarily local with a minimum of central control. This strategy is most effective given large differences between countries. Also, exchange rate risk is reduced when conducting business in this manner.

• Question 312:

  Which of the following is a benefit of the communication link represented by negotiating employee-supervisor differences?

  A. Each employee perceives that management values his/her accomplishments.
  B. A written communication link between the employees and management is provided.
  C. Each employee is shown that management values his/her rights and needs.
  D. The need for an informal grapevine is reduced.
  C. Each employee is shown that management values his/her rights and needs.

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  The benefits of negotiating employee-supervisor differences include communicating both sides of an issue without litigation, recognizing employee concerns to indicate that management values each subordinate's needs and rights, and impartially treating tensions in the work environment while finding compromise solutions.

• Question 313:

  Of the following entities, a matrix organization would be most appropriate for:

  A. A company operating a set of geographically dispersed telephone call centers that provide technical support.
  B. A company which starts several complex, multidisciplinary engineering and construction projects each year.
  C. A retail company, which sells to customers through multiple stores, located in shopping malls, as well as through a website and mailed catalogs.
  D. A company that provides temporary staffing help to a wide variety of commercial and governmental agencies.
  B. A company which starts several complex, multidisciplinary engineering and construction projects each year.

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  A matrix organization consists of a project team of people from various functional areas within the organization. These specialists report simultaneously to the project manager and themanagers of their functional departments. At the end of the project, the team is disbanded.Accordingly, a matrix organization that assigns specialists as needed to various projects is appropriate for such a company.

• Question 314:

  Leadership situations vary with regard to the degree to which the leader can determine what subordinates will do, how the subordinates will do it, and what the results will be. Accordingto Fiedler's contingency theory, a leader with a relationship- oriented management style will be most effective when exerting:

  A. Great control.
  B. Moderate control.
  C. Little control.
  D. Great or little control.
  B. Moderate control.

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  A relationship-oriented manager is employee centered. His or her self-esteem is strongly affected by personal interactions with subordinates. Fiedler indicated that such a manager is most effective when not faced with the extremes of high or low control situations. High control follows from strong position power, a structured task, and good leader- member relations. A low-control situation has just the opposite characteristics. Ina high-control environment, a concern for personal relations may be unimportant. In a low-control situation, therelationship orientedleader may be unable to provide the needed task structuring. Thus, themoderate controlsituation is best. An example is an assembly-line situation (a structured task) in which leader-member relations are poor.

• Question 315:

  Nonverbal communication consists of messages conveyed by:

  I. The physical distance between the sender and the receiver

  II. The facial expressions used when speaking

  III. Electronic means of communication such as email

  IV.

  Unconscious actions of the speaker while speaking

  A. Ill only.
  B. IV only.
  C. I and II only.
  D. I, II, and IV.
  I. The physical distance between the sender and the receiver II. The facial expressions used when speaking III. Electronic means of communication such as email IV. Unconscious actions of the speaker while speaking
  D. I, II, and IV.

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  Physical distance and positioning convey many nonverbal messages that depend on cultural differences. For example, Americans tend to prefer a large personal space. Facial expressions provide almost limitless variations of meaning thanks to the dozens of facial muscles and the possibilities created by different contexts, cultures, and individual personalities. In addition to facial expressions, other unconscious actions of the speaker affect the message sent. They include gestures, posture, movement,touch, mode of dress, surroundings, and voice characteristics.

• Question 316:

  In which of the following situations will organizational politics most likely have a significant impact?

  A. When space allocations are made according to objective criteria.
  B. When the budget allows for generous salary increases for all employees.
  C. When promotions are based on an employee's attitude.
  D. When performance outcomes are clearly stated and objective.
  C. When promotions are based on an employee's attitude.

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  Organizational politics, or impression management, is defined by Andrew Durbin as the pursuit of self- interest at work in the face of real or imagined opposition." Also, employees tend to believe that pursuit of self-interest at work in the form of career advancement is aided by playing politics. Hence, employees will try to, among other things, manage the impression of their attitudes held by superiors.

• Question 317:

  Which strategy in a global industry is most likely to rely on domestic content rules or high tariffs?

  A. A protected niche strategy.
  B. A national focus strategy.
  C. A national segment strategy.
  D. A global focus strategy.
  A. A protected niche strategy.

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  A protected niche strategy is applied in nations where global competitors are discouraged by governmental impediments, such as domestic content rules or tariffs. The strategy is designed to be effective in markets with governmental constraints and requires close attention to the national government.

• Question 318:

  Business strategies may be characterized by their effects on operations. The distinction between a compact car and a luxury car reflects which operational strategy?

  A. Cost.
  B. Flexibility.
  C. Service.
  D. Quality.
  D. Quality.

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  A quality strategy involves competition based on product quality or process quality. Product quality relates to design, for example, the difference between a luxury car and a subcompact car. Process quality concerns the degree of freedom from defects.

• Question 319:

  Which of the following is a structural factor that may lead to overbuilding in an industry?

  A. The need to add capacity in large increments.
  B. An increase in the minimum efficient scale of production.
  C. An increase in competitive pressure on the suppliers of the firm.
  D. Competitors are not integrated.
  C. An increase in competitive pressure on the suppliers of the firm.

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  Suppliers of capital, equipment, materials, etc., face their own competitive pressures. Thus, lower supplier prices, government subsidies, favorable interest rates, and similar incentives may promote expansion by customer industries.

• Question 320:

  A firm discounts never-before-discounted items. This action is an example of a:

  A. Divergence from industry precedent.
  B. Cross-parry.
  C. Divergence from prior strategic objectives.
  D. Bluff.
  A. Divergence from industry precedent.

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  The discounting of never-before-discounted items implies aggressive intent. It is an example of a divergence from industry precedent.