2014年7月28日星期一

IIA-CIA-Part4 Real Questions, IIA-CIA-Part4 Real Questions

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Exam Code: IIA-CIA-Part4
Exam Name: Certified Internal Auditor - Part 4, Business Management Skills
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IIA-CIA-Part4 PDF VCE Total Q&A: 535 Questions and Answers
Last Update: 2014-07-28

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NO.1 Which of the following concepts is not consistent with a successful authoritarian organization?
A. Each subordinate should only have one superior.
B. Superiors may have as many subordinates as possible within the superior's span of control.
C. Responsibility may be delegated.
D. The hierarchy of authority should be precisely defined.
Answer: C

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Explanation:
Taylor, Fayol, and other traditionalists advocated the creation of authoritarian organizations. One of
the criteria for success was the ability to delegate authority but not responsibility. Responsibility
should always remain with the person who made the decision.

NO.2 A corporation is performing research to determine the feasibility of entering the truck rental
industry.The decision to enter the market is most likely to be deterred if:
A. Buyer switching costs are high.
B. Buyers view the product as differentiated.
C. The market is dominated by a small consortium of buyers.
D. Buyers enjoy large profit margins.
Answer: C

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Explanation:
When purchasing power is concentrated in a few buyers or when buyers are well organized, their
bargaining power is greater. This effect is reinforced when sellers are in a capitalintensive industry,
such as trucking.

NO.3 For a multinational firm, which of the following is a disadvantage of an ethnocentric staffing
policy in which all key management positions are filled by parent-company nationals?
A. An ethnocentric staffing policy significantly raises compensation, training, and staffing costs.
B. An ethnocentric staffing policy produces resentment among the firm's employees in host
countries.
C. An ethnocentric staffing policy limits career mobility for parent-country nationals.
D. An ethnocentric staffing policy isolates headquarters from foreign subsidiaries.
Answer: B

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Explanation:
An ethnocentric staffing policy has the advantage that expatriates may understand the objectives,
policies, and procedures of the parent firm better than local employees do.
However, ethnocentrism in hiring has the following disadvantages, among others:
(1) Expatriate managers have difficulty in adapting to a new culture, language, and physical
environment;
(2)training and relocation costs may be high;
(3)host-country governments prefer local control;
(4)the morale and performance of host-country employees will suffer.

NO.4 Strategic management includes developing the organization's grand strategy. This strategy is
based on:
A. Existing strategic business units (SBUs).
B. A SWOT analysis.
C. Portfolio management of the organization's businesses.
D. Strategic planning.
Answer: B

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Explanation:
Strategic management is a process that includes development of a grand strategy that describes
how the organization's mission is to be achieved. This strategy is based on a situational analysis that
considers organizational strengths and weaknesses (a capability profile) and their interactions with
environmental opportunities and threats. Such an evaluation is also called a SWOT analysis.
Strengths and weaknesses (the internal environment) are usually identified by considering the firm's
capabilities and resources. What the firm does particularly well or has in greater abundance are
known as core competencies. Opportunities and threats (the external environment) are identified
by considering macroenvironment factors (economic, demographic, political, legal, social, cultural,
and technical) and microenvironment factors (suppliers, customers, distributors, competitors, and
other competitive factors in the industry).

NO.5 A small engineering consulting firm accepts special projects from customers in a variety of
fields. Its choice of an organic organizational design was most likely based on its:
A. Lack of concern for self-fulfillment of employees.
B. Preference for formal communication.
C. Adoption of directive leadership style.
D. Participative decision making processes.
Answer: D

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Explanation:
The organic structure is best suited to a company that emphasizes operational efficiency less than
the flexibility needed to respond quickly to changes in its environment and the creativity to find
solutions to new problems. Decision making in this context tends to rely on input from many
sources and requires multidirectional communication. Hence, a horizontal or flat structure typified
by project or matrix management will be appropriate.

NO.6 Which of the following is not one of the advantages of self-managed teams?
A. Motivation is improved because decision making is decentralized.
B. Improved processes of production if the teams are supported properly.
C. Managerial acceptance by tradition-oriented managers.
D. Improved communication because all members understand the team's activities better.
Answer: C

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Explanation:
Managerial resistance is often the primary obstacle of self-managed teams. Organizational change is
difficult and tradition-oriented managers tend to regard self-managed teams as a threat to their
status.

NO.7 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.
Answer: D

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Explanation:
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.

NO.8 Which of the following is least likely to be an example of synergy?
A. A shopping mall with several businesses providing different products and performing different
services.
B. A car dealership providing warranties on automobile parts to maximize customer value.
C. A manufacturing company hiring a new manager with technological experience lacking in the
company.
D. Military Humvees being converted into sports utility vehicles for sale to civilians.
Answer: B

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Explanation:
Synergy occurs when the combination of formerly separate elements has a greater effect than the
sum of their individual effects.
However, a car dealership's provision of warranties reflects anoperational strategy designed to
provide post-purchase services to gain a competitive advantage and maximize customer value. It
does not reflect the complementary sharing of resources, technology, or competencies. In contrast,
synergy arises from selling a line of carsthat share some components or abrand identification.

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