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Code d'Examen: IIA-CIA-Part4
Nom d'Examen: IIA (Certified Internal Auditor - Part 4, Business Management Skills)
Questions et réponses: 535 Q&As
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NO.1 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.2 With the shift in some countries' economies toward service industries, a new form of
organization has developed. This organization structure is referred to as the professional
bureaucracy. While this structure resembles the machine bureaucracy which relies on standardized
work processes) in several respects, it is different in one key aspect. This significant difference is that
in a professional bureaucracy:
A. Senior management has had to give up a substantial amount of control.
B. Tasks are accomplished with a high degree of efficiency.
C. There is strict adherence to rules.
D. There is a tendency for subunit conflicts to develop.
Answer: A
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Explanation:
A professional bureaucracy e.g., a university or library) is a complex and formal but decentralized
organization in which highly trained specialists have great autonomy. The jobs performed by these
professionals require years of education and training. By their nature, such jobs can be performed
effectively only if the employees are afforded substantial autonomy.
NO.3 Which of the following is false with regard to email policies?
A. Employees may use informal writing because email is often informal in nature.
B. Employees should understand that the organization has a legal right to monitor the employees'
use of the email system.
C. Filters should be used to protect against spam.
D. Emails should be concisely written.
Answer: A
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Explanation:
The principles of good writing still apply to emails. Therefore, emails should be written like any
other formal communication within the organization.
NO.4 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.5 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.6 The General Electric (GE) portfolio model for competitive analysis of strategic business units
(SBUs) should be compared with the Boston Consulting Croup's growth-share matrix. The GE model:
A. Is a matrix with two variables:relative market share and market growth rate.
B. Calculates an index for each of its two variables.
C. Considers such factors for business strength as market size, growth rate, and price levels.
D. Considers such factors for market attractiveness as market share, growth rate, and marketing
skills.
Answer: B
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Explanation:
The GE model is a multifactor portfolio matrix with two variables. Business strength or competitive
position (BUS) is on one axis, and market attractiveness (MAT) is on the other. BUS is classified as
strong, medium, or weak, and MAT is classified as high, medium, or low. Thus, the matrix in this
model is 3 x 3 and has nine cells. SBUs are shown in the matrix as circles. Circle size is directly
proportional to the size of the related market, with a shaded portion in the circle that represents
the SBU's market share. To measure BUS and MAT, the firm must isolate the multiple factors
affecting each, quantify them, and create an index. Factors will vary with each business. The
measurements will provide the values on the axes of the matrix.
NO.7 The competitive factor that may lead to industry overcapacity is
A. A favorable interest rate charged by suppliers of capital.
B. A short lead time for capacity expansion.
C. The existence of first mover advantages.
D. Integration of competitors.
Answer: C
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Explanation:
First mover advantages may be significant. Thus, short lead times for ordering equipment, lower
costs, and the ability to exploit an excess of demand over supply may encourage too many firms to
expand.
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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