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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 451:

  When supervising employees, the behavior most likely to attain long-term positive results for a manager would be to:

  A. Discipline employees immediately using oral reprimands, written warnings, and temporary suspensions.
  B. Hold weekly meetings during which employees are reminded of work procedures and are praised for the week's accomplishments.
  C. Praise employees on a random schedule and link rewards to performance.
  D. Tell employees that working overtime now will result in a better performance review in 6 months.
  C. Praise employees on a random schedule and link rewards to performance.

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  Variable-interval schedules of reinforcement lead to higher performance. Employees are more alert because of the uncertainty involved, and performance and reward are connected.

• Question 452:

  When planning for successful negotiations, the negotiator should:

  A. Understand the implications for both sides if the negotiation fails.
  B. Concentrate solely on the issues in the negotiation at hand.
  C. Not deviate from stated positions.
  D. Depend on the initial research prepared for the negotiation.
  A. Understand the implications for both sides if the negotiation fails.

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  Negotiators should assess the best alternatives for both themselves and the other parties to determine their relative strength in the negotiation process. If alternatives are not readily available or are unattractive, a party is under additional pressure to make the negotiation work.

• Question 453:

  A long-term supplier has asked your company to negotiate some increased purchases and faster payment. The supplier is having some financial difficulty, but your firm has been quite profitable lately, having experienced growing sales. Your firm's best negotiation strategy is:

  A. Collaboration.
  B. Competition.
  C. Subordination
  D. Avoidance.
  C. Subordination

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  The supplier should be allowed to take the lead in making proposals. The firm should go along with anything reasonable.

• Question 454:

  Which of the following is not an advantage of group decision making as compared to individual decision making?

  A. Groups obtain an increased degree of acceptance of a solution so that it may be more easily implemented.
  B. Group decision making is consistent with democratic methods.
  C. Group members bring more complete information and knowledge into the decision process.
  D. Group members avoid expressing opinions that deviate from what appears to be the group consensus.
  D. Group members avoid expressing opinions that deviate from what appears to be the group consensus.

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  The groupthink phenomenon is undesirable. Groupthink occurs when group members accept what appears to be the group consensus rather than giving their honest input. The result maybe decisions with which some members of the group are not happy.

• Question 455:

  What strategy seeks to gain a larger share of a current market for a current product?

  A. Market penetration.
  B. Market development.
  C. Product development.
  D. Diversification.
  A. Market penetration.

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  Market penetration is the percentage of potential users of a product in a current market who buy the product. A firm's market penetration strategy may be to (1) convince its current customers toincrease their usage frequency, (2) convince other firms' customers to switch, or (3) convert nonusers in the target market.

• Question 456:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, the delegating leadership style is appropriate when followers have:

  A. Low maturity.
  B. Low to moderate maturity.
  C. Moderate to high maturity.
  D. High maturity.
  D. High maturity.

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  The dimensions of the delegating leadership style are low task and low relationship. Consequently, task- and relationship-related behaviors are low. The leader provides little direction or support because the maturity of followers is high. They are willing and able to do what is necessary.

• Question 457:

  Management literature describes generic influence tactics that may be used to influence superiors, peers, or subordinates. Which of the following is the most commonly used influence tactic?

  A. An upward appeal.
  B. Exchange.
  C. Rational persuasion.
  D. Pressure.
  C. Rational persuasion.

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  The most commonly used influence tactics are consultation, rational persuasion, and inspirational appeals. The least commonly used are pressure tactics, upward appeals, and exchange tactics. Rational persuasion tries to convince others by reliance on a detailed plan, supporting evidence, and reason. Rational persuasion is the method used most often by employees of participative managers.

• Question 458:

  A firm in a declining industry that adopts a harvest strategy assumes that:

  A. Intense competition is absent.
  B. Pockets of stable demand still exist.
  C. The highest recovery is obtainable by early sale.
  D. Aggressive marketing will drive out competition.
  A. Intense competition is absent.

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  A harvest strategy is in effect a controlled, gradual liquidation. It maximizes cash flow by minimizing new investment, RandD, advertising service, maintenance, etc., and by exploiting the firm's remaining strengths (e.g., goodwill) to increase prices or maintain sales volume. To besuccessful, the strategy assumes that the firm has certain strengths and intense competition is absent. The strengths permit the firm to maintain sales for a time in the face of price increases, reduced advertising, etc. Absence of intense competition means that other firms will be less likely to seize market share or lower prices. Moreover, a firm must be capable of cost reductions that do not cause immediate failure.

• Question 459:

  The CEO of a rapidly growing high-technology firm has exercised centralized authority over all corporate functions. Because the company now operates in four geographically dispersed locations, the CEO is considering the advisability of decentralizing operational control over production and sales. Which of the following conditions probably will result from and be a valid reason for decentralizing?

  A. Greater local control over compliance with governmental regulations.
  B. More efficient use of headquarters staff officials and specialists.
  C. Less overall operating costs.
  D. Quicker and better operating decisions
  D. Quicker and better operating decisions

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  Decentralization results in greater speed in making operating decisions because they are made by lower-level managers instead of being referred to top management. The quality ofoperating decisions should also be enhanced, assuming proper training of managers, because those closest to the problems should be the most knowledgeable about them.

• Question 460:

  Which of the following leadership types is best known as an agent of change?

  A. Participative leader.
  B. Traitist leader.
  C. Transformational leader.
  D. Free-rein leader.
  C. Transformational leader.

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  A transformational leader is an agent of change who attempts to inspire the members of the organization to aspire to, and to achieve, more than they thought was possible. Transformational leadership emphasizes vision, development of the individual, empowerment of the worker, and the challenging of traditional assumptions. The transformational leader normally has charisma, is motivational, provides intellectual stimulation to workers, and gives individualized consideration.