IIA-CIA-PART4 Online Practice Questions and Answers

Correct Answer: A

A global strategy regards the world as one market. The product is essentially the same in all countries. Central control of the production process is relatively strong. Faster product development and lower production cost are typical.

Correct Answer: C

The participative style, although not always the best, is the most widely accepted internationally. The directive style is the least accepted internationally. It was not deemed appropriate in the U.S., U.K., Canada, Australia, Germany, and Sweden. Theachievement orientedstyle was found unacceptable in such countries as Brazil, France, Italy, and Japan. The supportive style was not accepted in such countries as Brazil, France, India, and Sweden.

Correct Answer: B

Subsidies are a structural characteristic of an emerging market. If a subsidy is given by the government or other party, it usually assists the growth of the new industry instead of hindering it. Subsidies tend to focus on radically new technology or technology in which societal concern is strong.

Correct Answer: D

The nature of the benefit is the most significant factor. At one extreme, the benefit may consist of a performance advantage unattainable by other methods. At the other extreme, the benefit may be a pure cost advantage. Ordinarily, early markets purchase a product because it offers a performance advantage. Early markets tend to be suspicious of a product offering a cost advantage.

Correct Answer: B

Under the autocratic style, the manager dictates all decisions to employees. Employees are not allowed to give input. Autocratic leaders rely on threats and punishment, and do not trust workers. Autocratic leadership can sometimes be the most effective form, such as where there is limited time to make a decision or when workers do not respond to any other leadership style.

Correct Answer: D

A matrix organization consists of a project team of people from various functional areas within the organization. These specialists report simultaneously to the project manager and the managers of their functional departments. At the end of the project, the team is disbanded.

Correct Answer: D

Groupshift is the difference between the decisions that members of a group would make singly and the group's decision. Sometimes the group's decision is more conservative, butmore often it is riskier. What apparently occurs is that the group discussion accentuates the initial tendency of the group. The most likely reason for the more frequent shift toward the riskier course is diffusion of responsibility among members of the group. Thus, no one will be wholly to blame for failure.

Correct Answer: D

Job design theories of motivation specifically address the issue of overspecialization. These theories focus on the match between the person and the job as the key to motivation. The recommendation for dealing with the potential problems of overspecialization and boredom is either to enrich the job or to move the employee to a job that provides the appropriate level of challenge.

Correct Answer: B

The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message flows, the receiver, and feedback. Because the effectiveness of communication can be known only by its impact on the receiver and the perceived change in the receiver's behavior, the received message must govern the definition. The sent message may be garbled in encoding, in transmission, or in the receiver's decoding.

Correct Answer: B

Backward integration is appropriate when the firm's current suppliers are unreliable. Stable relationships between internal sellers and buyers create economies because they need not fear loss of the related buyers and sellers. They also need not fear undue economicpressure from each other. Furthermore, because the relationship is locked in, more efficient procedures for their relationship (e.g., dedicated controls and records) may be implemented. Another advantage is that internal sellers and buyers may more fully adapt to each other's needs than they would or could in dealings with outsiders.