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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 371:

  All of the following statements about communication are false except:

  A. Managers spend more of the workday involved in written communication than oral communication.
  B. Written communication encourages feedback.
  C. Breakthroughs in electronic technology will blur the distinctions between written and oral communications.
  D. The grapevine rarely provides accurate information.
  C. Breakthroughs in electronic technology will blur the distinctions between written and oral communications.

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  Breakthroughs in electronic technology may lead to oral messages being recorded and subsequently written out. The supervisor of purchasing reviewed a memorandum prepared for a buyer in the department. The memo read, "Effective September 30, the corporation has determined that your functions will be absorbed into our parent company's small-unit purchasing function. This will reduce operating costs, improve communications, and facilitate production engineering changes. You will be provided with outplacement support." That should cover the situation," thought the supervisor. Its too bad that I am leaving on vacation before the buyer returns from vacation, but this memo will give the buyer the general idea."

• Question 372:

  An advantage of a direct investment strategy when entering a foreign market is

  A. Reduction in the capital at risk.
  B. Shared control and responsibility.
  C. Assurance of access when the foreign country imposes domestic content rules.
  D. Avoidance of interaction with the local bureaucracy.
  C. Assurance of access when the foreign country imposes domestic content rules.

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  Direct investment has many advantages:

  (1)

  cheaper materials or labor,

  (2)

  receipt of investment incentives from the host government, (3) a strong relationship with interested parties in the host country, (4) control of the investment,

  (5)

  a better image in the host country,

  (6)

  market access when domestic contest rules are in effect. However, direct investment is risky because of exposure to currency fluctuations, expropriation, potentially high exit barriers, and restraints on sending profits out of the country.

• Question 373:

  A manager in a government agency supervises a section of clerical employees who review license applications for approval or denial. The clerical jobs are well defined procedurally and are covered by government regulations. In this case, what is the best leadership style for the manager?

  A. Directive.
  B. Supportive.
  C. Participative.
  D. Achievement-oriented.
  B. Supportive.

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  A supportive style is best when tasks are highly structured and the authority relationships are clear and bureaucratic. This approach depends on people who want to work, grow, and achieve. The supportive style may be best when tasks are unsatisfying.

• Question 374:

  Entry into a new business may be made by acquisition. The analysis differs from that for entry by internal development. A key point is that prices are set in the market for acquisitions. Accordingly, a buyer should most likely expect to make above- average profits when the

  A. Market is active and well organized.
  B. Seller can choose to continue operating the business.
  C. Market for acquisitions is imperfect.
  D. Buyer adopts a sequential entry strategy.
  C. Market for acquisitions is imperfect.

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  Acquisitions are more likely to earn above-average profits when the expected present value to the seller of continuing operations is low, e.g., because the seller needs funds, has capital limits, or has management weaknesses. Above-average profits also are more likely when the market for acquisitions is imperfect. For example, (1) the buyer may have better information, (2) there are few bidders, (3) the economy is weak, (4) the seller is weak, or (5) the seller has reasons to sell other than profit maximization. Moreover, the buyer may have a unique ability to operate the seller.

• Question 375:

  Which of the following is a disadvantage of a flat organizational structure?

  A. Employees are not encouraged to be creative.
  B. The input of fresh ideas from outside the company is limited because employee turnover is low.
  C. Managers spend too much time training individuals and not enough time supervising.
  D. Employees may not be performing work tasks properly.
  D. Employees may not be performing work tasks properly.

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  A flat organizational structure concentrates decision-making authority at one level. Tasks and performance objectives may be unclear to employees because of a lack of supervision.

• Question 376:

  Which type of market structure is most apt to demonstrate price leadership by a major firm in the industry?

  A. Pure competition.
  B. Monopoly.
  C. Monopolistic competition.
  D. Oligopoly.
  D. Oligopoly.

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  Price leadership is typical in oligopolistic industries. Under price leadership, price changes are announced by a major firm in the industry. Once the leader has spoken, everyone else in the industry matches the price charged by the leader.

• Question 377:

  The manager of a team of actuaries has been asked to develop the basic pricing structure for a new health insurance product. The team has successfully designed other pricing structures in recent years. The manager was assigned to the team 6 months ago that is the best leadership style for the manager of this team?

  A. Directive.
  B. Supportive.
  C. Participative.
  D. Achievement-oriented.
  C. Participative.

• Question 378:

  A flat organization structure is one with relatively few levels of hierarchy and is characterized by wide spans of management control. A tall organization has many levels of hierarchy and narrow spans of control. Which of the following situations is consistent with a flat organization structure?

  A. Tasks require little direction and control of subordinates.
  B. Work areas are geographically dispersed.
  C. Tasks are highly complex and varied.
  D. Subordinates perform distinctly different tasks.
  A. Tasks require little direction and control of subordinates.

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  Flat structures have the advantages of fast information flow from the top to the bottom of the organization and increased employee satisfaction. Tall structures are faster and more effective at problem resolution because of the increased frequency of interaction between superior and subordinate and the greater order imposed by the hierarchy. For a flat structure to be successful, employees must be able to work without supervision much of the time because a manager with many employees has little time for each one.

• Question 379:

  Because communication is vital to effective management, managers spend most of their time communicating. Consequently, managers

  A. Who are good communicators will be effective.
  B. Mostly engage in oral communication.
  C. Devote most of their time to formal, written communication.
  D. Are essentially senders of messages.
  B. Mostly engage in oral communication.

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  Because communication is the process of conveying meaning or understanding from one person to another, managers must spend most of their time communicating with subordinates, peers, and superiors. More of this communication is oral and informal than written and formal. Managers communicate lower-level results and problems upward, and coordinating information horizontally. Infrequently, communication may also be among peers or across organizational channels.

• Question 380:

  The technique that calls for the manager to concentrate on tasks that are most closely related to the manager's strengths is:

  A. Keeping an activity log for about a week.
  B. Creating a prioritized to-do list.
  C. Prioritizing work.
  D. Developing an action plan.
  C. Prioritizing work.

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  The are several common techniques that managers use for effective time management. One of those techniques is prioritizing work. There are three methods that can be employed to prioritize work. The first one is for the manager to concentrate on the things that (s)he enjoys. The second is for the manager to concentrate on tasks most closely related to his/her strengths. The third method is for the manager to determine how (s)he is being evaluated and to prioritize tasks accordingly.