IIA-CIA-PART4 Online Practice Questions and Answers

Correct Answer: B

According to Kotler, "Global firms plan, operate, and coordinate their activities on a worldwide basis." Thus, a global firm secures cost or product differentiation advantages not available to domestic firms.

Correct Answer: C

The annual MGR reflects the maturity and attractiveness of the market and the relative need for cash to finance expansion. An MGR of 10% or more is generally regarded as high. The RMS reflects an SBU's competitive position in the marketsegment. An RMS of 1.0 or moresignifies that the SBU has a strong competitive position. Cash cows have high RMS and low MGR. They are strong competitors and cash generators in low-growth markets.

Correct Answer: B

A recent traitist approach is based on the emotional intelligence of leaders, that is, their social skills and judgment, maturity, and emotional control. These abilities can be learned, especially when a manager or employee understands that

immaturity, erratic behavior, and uncontrolled negative emotions have a bad effect on the workplace. According to Daniel Goleman, a leader can acquire social capital through exhibiting the following leadership traits:

1Self-awareness is knowing oneself.

2Self-management is the ability to prevent one's mood swings from interfering with positive relationships.

3Social awareness is understanding the actions and emotions of others. This ability helps a person to adapt in a productive way.

4Relationship management is an ability possessed by a person who communicates and resolves conflict effectively. Humor and a benign approach are characteristics of people who develop good relationships.

Correct Answer: C

A network organization is a network based upon coordination through adaptation. It also is based upon long-term relationships without specific legal ties.

Correct Answer: B

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.

Correct Answer: B

Norms often provide a common identity for a group. Members feel they are part of a cohesive group with members who also share the same values.

Correct Answer: C

A cross-functional team is one that includes members of different departments who have different areas of expertise. A research-and-development team is usually a cross-functional team because many different skills are needed to identify and create a new product.

Correct Answer: B

High achievers wish to do something better than it has been done before. According to McClelland's theory of needs, high achievers thrive when the job provides for personal responsibility, feedback, and moderate risks. They avoid very easy or very difficult tasks, andthey do not like to succeed by chance. Accordingly, one high achiever should not be assigned a job when the probability of its successful completion is very low.

Correct Answer: A

Accommodating is a conflict handling intention. The dimensions of conflict handling intentions are assertiveness and cooperation. An intention is what mediates between one's actual behavior and one's emotions and perceptions. Accommodating entails placing another person's interests above one's own. It represents the minimum of assertiveness and the maximum of cooperation. For example, the seller should accommodate the customer by providing the product the customer wants.

Correct Answer: B

Vertical integration occurs when a company becomes its own supplier or distributor. It combines within a firm production, distribution, selling, or other separate economic processes needed to deliver a product or service to a customer.