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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 441:

  A firm sells its product in a foreign market for a much higher price than in the firm's home market. The reason is most likely:

  A. Price elasticity of demand.
  B. Dumping.
  C. Gray market activity.
  D. Price escalation.
  D. Price escalation.

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  Price escalation is caused by an accumulation of additional costs, e.g., currency fluctuations; transportation expenses; profits earned by importers, wholesalers, and retailers; and import duties.

• Question 442:

  Which of the following has been identified as the most important cause of organizational decline?

  A. Centralization.
  B. Management complacency.
  C. Poor employee morale.
  D. Lack of innovation.
  B. Management complacency.

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  Management complacency often is characterized by a lack of innovation, faulty perception of markets and competition, failure to observe or appraise the initial indicators of decline, and lack of focus on daily objectives. Therefore, the characteristics listed are the product of poor management.

• Question 443:

  Strategic control measurements that relate to external effectiveness concern customer satisfaction at the:

  A. Departmental level.
  B. Business-operating-system level.
  C. Business-unit level.
  D. Work-center level.
  B. Business-operating-system level.

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  Strategic controls should be established to monitor progress, isolate problems, identify invalid assumptions, and take prompt corrective action. As plans are executed at each organizational level, control measurements are made to determine whether objectives have been achieved. Thus, objectives flow down the organizational hierarchy, and control measures flow up. One category of strategic control measures relates to external effectiveness. At the business- operating-system level, these measures concern satisfaction and flexibility.

• Question 444:

  According to research on path-goal leadership styles done in many countries, which styles are neither the most nor the least accepted internationally?

  I. Directive

  II. Supportive

  III. Participative

  IV.

  Achievement-oriented

  A. l and II.
  B. l and Ill.
  C. II and IV.
  D. Ill and IV.
  I. Directive II. Supportive III. Participative IV. Achievement-oriented
  C. II and IV.

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  The participative style, although not always the best, is the most widely accepted internationally. The directive style is the least accepted internationally. It was not deemed appropriate in the U.S., U.K., Canada, Australia, Germany, and Sweden. Theachievement orientedstyle was found unacceptable in such countries as Brazil, France, Italy, and Japan. The supportive style was not accepted in such countries as Brazil, France, India, and Sweden.

• Question 445:

  Forward downstream integration most likely:

  A. Allows the firm to protect its proprietary knowledge from suppliers.
  B. Implies that the firm can fully support an efficient subunit but has additional needs to be met in the market.
  C. May allow the firm's subunit(s) to maintain constant production rates while external parties bear the risk of fluctuations.
  D. Improves access to information about demand.
  D. Improves access to information about demand.

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  A strategic advantage of forward integration is that access to market information is improved. A forward subunit (the demand leading stage) controls the amount and mix of demand to besatisfied upstream. At the very least, forward integration improves the timeliness of (1) demand information, (2) production planning, (3) inventory control, and (4) the costs of being under- or over-stocked. It also may provide information about changing tastes, competitors' moves, and the ideal mix of products.

• Question 446:

  Which of the following is true concerning generic influence tactics?

  A. Consultation involves appealing to emotions, values, or ordeals.
  B. Ingratiating tactics attempt to raise the other person's self-esteem prior to a request.
  C. Coalition tactics try to convince others by reliance on a detailed plan, supporting evidence, and reason.
  D. Pressure tactics are based on the formal or informal support of higher management.
  B. Ingratiating tactics attempt to raise the other person's self-esteem prior to a request.

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  Management literature describes generic influence tactics that may be used in any direction. As noted by researchers, ingratiating tactics attempt to raise the other person's self-esteem prior to a request.

• Question 447:

  Which of the following best describes a cost synergy?

  A. Recycling of by-products.
  B. Selling one product strengthens sales of another product.
  C. Transferring knowledge to new uses.
  D. Acquiring new management skills.
  A. Recycling of by-products.

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  Cost synergy results in cost reduction. It manifests itself in many ways, for example, in recycling of by- products or in the design, production, marketing, and sales of a line of products by the same enterprise.

• Question 448:

  Frederick Taylor's scientific approach to motivation concluded that workers are best motivated by:

  A. Psychic income.
  B. Money.
  C. Fear of punishment.
  D. Knowledge of a job well done.
  B. Money.

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  Taylor felt that employees responded best to the extrinsic motivator of monetary incentives.

• Question 449:

  Organizational charts often represent the formal structure of an organization. Often the organizational chart represents a pyramid with the chief executive on the top and the operating workforce on the bottom. Which of the following would not be included in a typical organizational chart?

  A. The span of control and the number of organizational levels.
  B. Communication channels.
  C. Promotional or career tracks.
  D. Informal influence or friendships.
  D. Informal influence or friendships.

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  Organizational charts often show the formal relationships between employers and employees. However, a shortcoming of organizational charts is that they do not show informal relationships between the upper and lower levels of the corporate hierarchy.

• Question 450:

  Michael E Porter developed what is popularly known as the diamond model for determining national advantages in the global business environment. According to this model.

  A. Factor conditions are production advantages that are nature-made or inherited.
  B. Foreign markets exert less influence than home markets on a firm's ability to detect demand trends.
  C. Reliance on related and supporting industries in the home country weakens a firm's international competitiveness.
  D. Cooperation with domestic competitors clearly aids international competitiveness.
  B. Foreign markets exert less influence than home markets on a firm's ability to detect demand trends.

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  Home demand conditions determine the inherent demand for goods or services that originate within the home country. Porter believes that home markets exert a much higher influence on a firm's ability to recognize consumer trends than those in a foreign market. Moreover, home demand offsets innovation and product development. Home demand is a function of

  (1)

  the mixture of customer needs and wants,

  (2)

  their scope and growth rate,

  (3)

  the means by which domestic preferences are communicated to international markets. Moreover, a national advantage is achieved when home demand provides more timely and clear trend indicators to domestic firms than to foreign firms.