IIA-CIA-PART3 Online Practice Questions and Answers

Correct Answer: B

International marketing efforts take three basic forms:creation of an export department, creation of a division to manage international marketing, or global organization. The latter encompasses genuinely worldwide functions, e.g., manufacturing, marketing, finance, and logistics. Thus, worldwide operations are the organization's focus, not merely that of a department or division of a national firm. A global organization may follow a multinational, global, or glocal strategy. A multinational strategy adopts a portfolio approach. Its emphasis is on national markets because the need for global integration is not strong. The product is customized for each market and therefore incurs higher production costs. Decision making is primarily local with a minimum of central control. This strategy is most effective given large differences between countries. Also, exchange rate risk is reduced when conducting business in this manner.

Correct Answer: B

Intergroup competition is increased by market interdependence, which is the extent to which groups pursue the same customers. The greater the interdependence, the stronger the competition among groups.

Correct Answer: D

Organizational decline loss of effectiveness and efficiency coupled with inflexibility) may lead to downsizing, merger, reorganization, or liquidation. It results from decreased demand, resource limitations, or mismanagement. One characteristic of a declining organization is lack of innovation. Moreover, the most important cause of organizational decline is management complacency. In turn, a characteristic of management complacency is lack of innovation. Consequently, the CEO should encourage innovation at all levels. Also, downsizing has many negative effects. The enlightened view is that employees are not readily disposable commodities, but rather valuable resources who should be terminated only as a last resort. This view seeks alternatives to involuntary termination. One such alternative is a voluntary retirement program that offers accelerated retirement benefits, severance allowances, or other compensation.

Correct Answer: B

A mature group is in the end stage of group development and tends to be more effective and productive compared to groups in earlier stages. A mature group engages in rational discussion of decisions with tolerance of dissent and no attempt to force unanimity.

Correct Answer: B

If the demand for a product is inelastic, the coefficient of price elasticity of demand (percentage change in quantity demanded - percentage change in price) is less than 1.0. The relationship between price changes and total revenue (TR) changes is TR = price x quantity. The result is that a price increase causes total revenue to increase.

Correct Answer: A

The behavioral theory of management holds that all people including employees) have complex needs, desires, and attitudes. The fulfillment of needs is the goal toward which employees are motivated. Effective leadership matches need-fulfillment rewards with desired behavior tasks) that accomplishes organizational goals.

Correct Answer: D

Job enrichment increases the scope of boring, repetitive tasks by using more of the employee's skills and allowing the employee more power to make decisions concerning the job, such as order of tasks, etc. Thus, it encourages worker participation in decisions previously made by management.

Correct Answer: C

Interpretation is a subprocess of perception. Noise is a disruption that impedes the communication process.

Correct Answer: A

The benefits of electronic communication include better control of information, more timely information, elimination of tedious tasks, improvement of competitiveness due to improved technology, standardization of procedures by computer programs, assistance for strategic planning, and optimization of organizational resources to improve productivity.

Correct Answer: C