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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 471:

  The reason(s) governments most likely restrict trade include

  I. To help foster new industries.

  II. To protect declining industries.

  III. To increase tax revenues.

  IV.

  To foster national security.

  A. I only.
  B. I and II only.
  C. II and Ill only.
  D. I, II, and IV only.
  I. To help foster new industries. II. To protect declining industries. III. To increase tax revenues. IV. To foster national security.
  D. I, II, and IV only.

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  Governmental impediments to global competition are generally imposed for the announced purpose of protecting local firms and jobs, developing new industries, and fostering national security. They also may have the effect of raising revenue in the short run. In the long run, tax and revenues will decline because of reduced trade. Examples of governmental impediments are tariffs; duties; quotas; domestic content rules; preferences for local firms regarding procurement,taxes, RandD, labor regulations, and other operating rules; and laws (e.g., antibribery or tax) enacted by a national government that impede national firms from competing globally. These impediments are most likely when industries are viewed as crucial.

• Question 472:

  In which of the following situations would a narrower span of control be more appropriate?

  A. Managers do not spend a great deal of time on planning or strategic management.
  B. Managers must spend a great deal of time coordinating with other managers.
  C. Subordinates work in the same area rather than being geographically dispersed.
  D. Work performed by subordinates is substantially identical.
  B. Managers must spend a great deal of time coordinating with other managers.

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  If substantial coordination is required, a manager benefits from reduced supervision requirements. In addition, increased coordination implies that the work done by subordinates is not standardized. As spans of control move from wider to narrower, the work done becomes less similar and more complex.

• Question 473:

  According to the contingency theory of leadership, a manager will be most effective when the manager:

  A. Consistently initiates structure.
  B. Adapts style to specific circumstances.
  C. Is task oriented.
  D. Is relationship oriented.
  B. Adapts style to specific circumstances.

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  Fred E. Fiedler's contingency theory of management holds that no single style of directing is best for all occasions. A successful director (leader) must, for each situation, balance his or her formal authority, the task structure, and the leader's relationships with the pertinent group members.

• Question 474:

  Michael E. Porter's generic strategies are responses to the five competitive forces. How do focus strategies respond to the threat of buyers' bargaining power?

  A. A cost leader may be able to pass along suppliers' price increases.
  B. Substitute products may not be able to compete on quality.
  C. Core competencies in a broad market may not be matched by new entrants.
  D. Brand loyalty may not be matched by new entrants.
  B. Substitute products may not be able to compete on quality.

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  Differentiation may reduce the leverage enjoyed by strong buyers because of the uniqueness of the product and the resulting lack of close substitutes. Focus strategies also may reduce buyers' ability to negotiate in a narrow market. Substitutes may not be able to compete on price, quality, etc.

• Question 475:

  The factor that would not contribute to retention of experienced employees would be:

  A. Initiation of job enrichment programs.
  B. Adherence to government regulations regarding sex discrimination in paying and promoting workers.
  C. Paying new employees more than older ones.
  D. Adoption of flextime rules.
  C. Paying new employees more than older ones.

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  When old employees discover that newcomers are being hired at higher salaries, the group hired first will be unhappy, feeling that their greater experience should warrant greater reward. In the short run, the newcomers will be satisfied. But it is possible that next year's newcomers will be hired at still higher salaries, contributing to the overall dissatisfaction. Thus, such a policy will provide incentives for experienced workers to leave the company.

• Question 476:

  At the introduction stage of an innovative product, the profit growth is normally slow due to

  A. Expensive sales promotion.
  B. High competition.
  C. A mass market.
  D. Available alternatives.
  A. Expensive sales promotion.

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  The introduction stage is characterized by slow sales growth and lack of profits because of the high expenses of promotion and selective distribution to generate awareness of the product and encourage customers to try it. Thus, the per-customer cost is high. Competitors are few, basic versions of the product are produced, and higher-income customers (innovators) are usually targeted. Cost-plus prices are charged. They may initially be high to permit cost recovery when unit sales are low. The strategy is to infiltrate the market, plan for financing to cope with losses, build supplier relations, increase production and marketing efforts, and plan for competition.

• Question 477:

  When a multinational firm decides to sell its products abroad, one of the risks the firm faces is that the government of the foreign market charges the firm with dumping. Dumping occurs when

  A. The same product sells at different prices in different countries.
  B. A firm charges less than the cost to make the product so as to enter or win a market.
  C. Lower quality versions of the product are sold abroad so as to be affordable.
  D. Transfer prices are set artificially high so as to minimize tax payments.
  B. A firm charges less than the cost to make the product so as to enter or win a market.

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  Dumping is an unfair trade practice that violates international agreements. It occurs when a firmcharges a price (1) lower than that in its home market or (2) less than the cost to make the product. Dumping may be done to penetrate a market or as a result of export subsidies.

• Question 478:

  A reasonable BATNA (best alternative to a negotiated agreement) protects against bad decisions caused by the following:

  I. Framing error

  II. Escalation of commitment

  III.

  Overconfidence

  A. I and Ill only.
  B. I, II, and Ill.
  C. I only.
  D. II and Ill only.
  I. Framing error II. Escalation of commitment III. Overconfidence
  B. I, II, and Ill.

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  A reasonable BATNA protects against bad decisions caused by the following:framing error, escalation of commitment, and overconfidence. Framing error is a perceptual problem. The presentation or context of information may bias its interpretation and the resulting decision. Escalation of commitment is adherence to a failing course of action when a purely objectivedecision maker would abandon it. Overconfidence is the common tendency to overestimate the chances of success.

• Question 479:

  An organization has recently introduced total quality management TOM). Its senior management wants to determine an innovative approach to foster total participation throughout the organization. Management should:

  A. Seek isolation from all distractions in order to think the problem through.
  B. Bring the employees together for a brainstorming session.
  C. Rely on themselves to develop a new approach.
  D. Use a disciplined problem-solving approach.
  B. Bring the employees together for a brainstorming session.

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  Certain group decision-making processes may be more creative than individual decisions. One creative approach is brainstorming, which breaks down broadly based problems into their essentials. It is an unstructured approach that relies on the spontaneous contribution of ideas from all members of a group.

• Question 480:

  Time consumption is a disadvantage when managers address conflict by:

  A. Smoothing.
  B. Forcing.
  C. Problem-solving.
  D. None of the answers are correct
  C. Problem-solving.

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  Problem-solving is a way managers address conflicts, but it requires a large amount of time to resolve.