IIA-CIA-PART4 Online Practice Questions and Answers

The inherent attractiveness of a national market is most likely increased by which factor?

A. The firm's strategic position.

B. The market's exclusion from a regional free trade zone.

C. Unmet needs of a developing nation.

D. Product adaptation is costly.

With the globalization of economies, many organizations have expanded their operations to international locations. As an advisor to management, an internal auditor will most likelyrecommend that a geocentric, or worldwide, attitude be adopted. Select the reason the geocentric attitude is preferred.

A. It promotes a simpler organizational structure.

B. It provides greater autonomy for host country managers.

C. It provides the best balance of local and worldwide objectives.

D. It promotes tighter organizational control.

A structural characteristic of an emerging industry is:

A. Strategic uncertainty.

B. Customers are sophisticated.

C. Technological uncertainty has been overcome.

D. Industry development is unlimited.

A firm is most likely to leave a declining industry because

A. The remaining pockets of demand include price-insensitive buyers.

B. It is the only part of a vertically integrated business that is affected.

C. Buyers have high switching costs.

D. Mobility barriers are high.

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.

For the past several years, many organizations have attempted to reduce administrative costs and respond more rapidly to customer and competitive demands. One method is to eliminate layers of middle management. The element of organizational structure affected by such reductions is:

A. Spatial differentiation.

B. Formalization.

C. Vertical differentiation.

D. Formalization of jobs.

During which stages do the primary issues among group members involve uncertainty about power and authority relationships?

A. Yes Yes

B. Yes No

C. No Yes

D. No No

A firm should state its primary competitive scopes when it:

A. Defines its strategic business units (SBUs).

B. Establishes strategic control points.

C. Formulates its mission.

D. Makes investment and divestment decisions.

Which one of the following statements regarding communication along the grapevine in an organization is false?

A. By maintaining open channels of communication, managers can minimize the damage thegrapevine can do in an organization.

B. Attempts to totally eliminate the grapevine are unlikely to succeed.

C. The grapevine communication network can exist in several patterns.

D. The grapevine is rumor-mongering, and managers should not use the grapevine.

When negotiating with an analytical personality, the negotiator should:

A. Present facts and precedents in an organized manner.

B. Push the other party for quick closure of negotiations.

C. Focus on creating a bond with the other party.

D. Include unimportant items in the proposal for bargaining.