|
Home |
Services |
Newsletter |
Other Links |
Contact Us
|
Part IV-Practice Exam
1.
The Porter’s Five Forces identifies the elements that drive
the industry competition. Which of the following is not part of the
Porter’s five forces?
a) Rivalry among industries. b) Threat of substitute products or services. c) Bargaining power of suppliers or buyers.
d)
Threat of new entrants.
2.
Which of the following is not a major source of
barriers to entry?
a) Economies of scale. b) Capital requirements. c) Customer loyalty as a result of product differentiation.
d)
High industry growth.
3.
Every business needs to design a strategy to achieve its
objectives. Which of the following strategies is not part of Porter’s
proposed generic strategies?
a) Differentiation. b) Cost leadership. c) Strategic alliance.
d)
Focus.
a) Access to leading scientific research. b) Highly skilled and creative product development team. c) Corporate reputation for quality and innovation.
d)
Efficient distribution channel.
5.
An attractive industry has the following characteristics, except:
a) Low barrier of entry. b) Suppliers and buyers have only modest bargaining power. c) Substitute products or services are few.
d)
Rivalry among competitors is stable.
6.
Powerful suppliers can apply bargaining power over
participants in an industry by threatening to increase prices or reduce the
quality of a product or service. A supplier group is powerful if the following
apply, except:
a) The industry is not an important customer of the supplier group. b) The industry is dominated by many supplier groups. c) There is a threat of forward integration by the supplier group. d) The supplier group’s products are differentiated.
7.
High intensity of rivalry among existing competitors within an
industry can be triggered by:
a) Low fixed or storage costs. b) High switching costs. c) Slow industry growth.
d)
Low exit barriers.
8.
According to Michael Porter, buyers are powerful when:
a) Buyers are responsible for a small percentage of purchases. b) Products are differentiated. c) There are low switching costs.
d)
Buyers have less information.
9.
A company can utilize competitor intelligence to analyze its
competitors in the industry. Competitor intelligence has the following
purposes, except:
a) To forecast competitors’ future strategies and decisions. b) To predict the competitors’ likely reactions to a company’s strategic initiatives. c) To determine how competitors’ behavior can be influenced to make it more favorable.
d)
To predict the future earnings and growth of the competitors.
10.
Being
the first mover in an industry has many advantages for a company. The following
are advantages of being the first mover, except:
a) Gaining positive reputation with the customer. b) Being recognized as particularly innovative in the industry. c) Pioneering costs.
d)
Being the first to move along the learning curve.
11.
According to Michael Porter, firms pursuing the same strategy
directed to the same target market constitutes which type of group?
a) Strategic group. b) Market group. c) Operational group.
d)
Focus group.
12.
The marketing mix is the set of tools a company uses to pursue
its marketing objectives in the target market. Which of the following is not one of the four Ps of marketing mix?
a) Product. b) Price. c) Personal services.
d)
Promotion.
13.
Core competencies are valuable assets owned by a company,
which consists of complex skills, resources, and knowledge that are relatively
better than those of the competitors. Core competencies have to possess the
following characteristics, except:
a) Valuable. b) Rare. c) Not costly to imitate.
d)
Non-substitutable.
14.
Building a customer database can be very useful for a company
in many ways. However, having a customer database is not effective under the
following cases, except when:
a) The product is a once in a lifetime purchase. b) Customers show high loyalty to a brand. c) The cost of gathering customer information is high.
d)
The unit of sale is very small (e.g., a candy bar).
15.
According to Porter, the value chain is a tool for identifying
ways to create more or retain customers. It consists of five primary activities
and four supporting activities. Which of the following is not part of
the four supporting activities in supply chain?
a) Company infrastructure. b) Technology development.
c)
Communication.
d)
Human resource management.
16.
Which of the following is not one of the stages of the
Product Life Cycle?
a) Introduction. b) Growth. c) Changes.
d)
Maturity.
17.
In Customer Relationship Management (CRM), there are different
levels of marketing relationships between companies and customers. Which of the
following is categorized as proactive marketing?
a) The salesperson contacts the customers from time to time with suggestions about improved product uses or new products. b) The salesperson simply sells the products. c) The salesperson sells the products and encourages the customer to call if they have questions, comments or complaints.
d)
The company works continuously with its large customers to
help improve their performance.
18.
An organizational approach to continuously improve the quality
of all the organization’s processes, products, and services is called:
a) Competitive advantage. b) Organizational goal. c) Restructuring.
d)
Total Quality Management.
19.
The following are key principles of Total Quality Management
(TQM), except:
a) Do it right the first time. b) Build teamwork and empowerment. c) Be production-oriented.
d)
Make continuous improvement part of corporate culture.
20.
Part of marketing research is gathering the needed primary and
secondary data. Secondary data can be collected through:
a) Observation. b) Focus groups. c) Experiments.
d)
Previous reports.
21.
Many strategic alliances take the form of marketing alliances,
which usually fall into one of the following categories, except:
a) Product or service alliances. b) Promotional alliances. c) Customer alliances.
d)
Logistic alliances.
22.
To achieve competitive edge through innovation, a company needs
to foster a supportive climate for intrapreneurship through the following
efforts, except:
a) Focusing on results and teamwork. b) Rewarding innovation and risk taking. c) Following precise agenda and procedures.
d)
Tolerating and learning from mistakes.
23.
Which type of company is a multinational network of productive
units with a decentralized authority structure and no distinct national
identity?
a) Global company. b) Transnational company. c) International company. d) Worldwide company.
24.
Which of the following is not a strength of Management
by Objectives (MBO)?
a) MBO integrates planning and control into a rational system of management. b) MBO encourages an organization to develop a top-to-bottom hierarchy of objectives. c) MBO emphasizes good intentions or personalities rather than end results.
d)
MBO encourages self-management and personal commitment through
participation.
25.
Which type of attitude is a view that assumes local management
in the host country know best how to run their operations, which might result
in a duplication of work and inefficiencies?
a) Polycentric attitude. b) Geocentric attitude. c) Ethnocentric attitude.
d)
Cultural attitude.
26.
Which of the following is not an example of project
management graphic tools designed to more effectively manage the planning,
scheduling, and controlling of operations?
a) Flow charts. b) Enterprise Resource Planning (ERP). c) Gantt chart.
d)
Program Evaluation and Review Technique (PERT).
27.
The tendency to evaluate positively presented information
favorably and negatively presented information unfavorably is called:
a) Escalation of commitment. b) Over-confidence. c) Under-confidence.
d)
Framing error.
a) Broad and general individual task definition. b) High task flexibility. c) Low reliance on hierarchical control.
d)
Narrow and specific type of required knowledge.
29.
Which of the following is not a potential mistake that
people might make when attempting to identify problems?
a) Identifying the gap between the actual and the desired situations. b) Focusing on narrow, low-priority areas. c) Defining the problem according to a possible solution.
d)
Diagnosing problems in terms of their symptoms.
30.
The following are the four key human resources activities
necessary to link organizational strategy and structure, except:
a) Recruitment and selection. b) Human resource strategy. c) Communication.
d)
Training.
31.
Which type of power originates from personal identification,
attraction or charisma?
a) Expert power. b) Legitimate power. c) Coercive power.
d)
Referent power.
32.
Added value negotiating (AVN) is a five-step process involving
the development of multiple seals that add value to the negotiating process.
Which of the following is not one of the processes in AVN?
a) Clarify interest. b) Identify options. c) Design alternative deal packages.
d)
Alter deal.
33.
Which type of control anticipates the problems and their
timely prevention, rather than after-the-fact reaction?
a) Feedforward control. b) Concurrent control. c) Feedback control.
d)
Ongoing control.
34.
Resistance to change can be caused by all of the following
factors, except:
a) Potential for new training. b) Inertia or desire to maintain a safe, secure and predictable status quo. c) Fear of failure.
d)
Threat to job status or security.
35.
Which of the following involves constructing a bar chart to
identify which problems need the most attention?
a) Cause-and-Effect analysis. b) Pareto analysis. c) Control chart.
d)
Scatter diagram.
36.
Which of the following
grants the inventor of a new product or process exclusive rights, for a defined
period, to manufacture, use, or sale that invention?
a) Copyright. b) Patent. c) Trademark.
d)
Goodwill.
37.
When prices are set by central partners, productive assets are
owned by the state, and private ownership is forbidden, a country utilizes
which of the following four broad categories of the economic system?
a) Market economy. b) Command economy. c) Mixed economy.
d)
State-directed economy.
38.
According to Michael Porter, there are four attributes (known
as Porter’s Diamonds) of a nation that shape the environment in which local
firms compete, and these attributes promote or impede the creation of a
competitive advantage. Which of the following is not one of those
attributes?
a) Firm strategy, structure, and rivalry. b) Relating and supporting industries. c) The global market economy condition.
d)
The nature of home demand for the industry’s products or
services.
39.
The theory of comparative advantage suggests all of the
following, except:
a) Countries differ in their ability to produce goods efficiently. b) Unrestricted free trade decreases world production. c) It makes sense for a country to specialize in producing those goods it can produce more efficiently, while buying goods that it can produce relatively less efficiently from other countries.
d)
Opening a country to free trade stimulates economic growth,
which creates dynamic gains from the trade.
40.
Which of the following is not one of the political
arguments that support government intervention in regulating business?
a) To protect and promote human rights. b) There are some industries that need to be protected for national security reasons. c) Regulation is needed to protect the consumers.
d)
To give benefits to the producers.
41.
Starbucks’ acquisition of Seattle Coffee in Britain is an
example of:
a) Vertical foreign direct investment. b) Horizontal foreign direct investment. c) Franchising.
d)
Licensing.
42.
Some of the benefits of foreign direct investment (FDI) to a
host country can arise from all of the following, except:
a) Resource-transfer effects. b) Additional job creation in the host country as a result of FDI. c) Its ability to promote competition.
d)
Higher tax savings.
43.
The rate at which a foreign exchange dealer converts one
currency into another currency on a particular day is called:
a) Forward exchange rate. b) Backward exchange rate. c) Spot exchange rate.
d)
Foreign exchange rate.
44.
Which of the following is the simultaneous purchase and sale
of a given amount of foreign exchange for two different value dates?
a) Spot exchange rate. b) Forward exchange rate. c) Currency swaps.
d)
Exchange swaps.
45.
The Eurobond market is attractive compared to most major
domestic bond markets because of the following features, except:
a) The absence of regulatory interference. b) A favorable tax status. c) Less stringent disclosure requirements than in most domestic bond markers.
d)
Better economic returns.
46.
The advantage of choosing exporting as an entry mode is:
a) Ability to experience curve economies. b) High transportation costs. c) Existing trade barriers.
d)
Problems with local marketing agents.
47.
The following are some
of the reasons why an acquisition can fail, except:
a) The acquiring firm often overpays for the assets of the acquired firm. b) The management of the acquiring firm was pessimistic about the value that could be created via an acquisition. c) There is a clash between the cultures of the acquiring and acquired firm.
d)
Synergies that were predicted cannot be realized.
48.
Other things being equal, the rate of new product development
seems to be greater in countries where:
a) Less money is spent on basic and applied research and development. b) Underlying demand is strong. c) Consumers are relatively wealthy.
d)
Competition is scarce.
49.
Which of the following types of countertrade refers to the use
of a specialized third-party trading house in an arrangement?
a) Switch trading. b) Counterpurchase. c) Offset.
d)
Buybacks.
50. Which one of the following statements about Maslow’s
hierarchy of needs theory is not true?
a. The five levels of needs are arranged in a hierarchical order. b. Physiological needs are the lowest level. c. The lower order need must be fully satisfied before the next higher need becomes potent.
d.
The need hierarchy concept has not been well supported by
research.
51.
Which of the following is not true about the
motivation-hygiene theory?
a. Working conditions are characterized as hygiene factors. b. Intrinsic factors are motivators. c. A job becomes satisfying when the dissatisfying characteristics are removed.
d.
None of the above.
52.
Which of the following is not a characteristic of ERG theory?
a. It proposes three levels of needs-existence, relatedness, and growth. b. More than one level of needs may serve as motivators at the same time. c. It involves a frustration-regression process.
d.
The existence needs must be satisfied before the relatedness
needs become important.
53.
McClelland’s, who proposed the Achievement-Motivation model,
need for achievement best approximates Maslow’s need for:
a. Esteem. b. Self-actualization. c. Love.
d.
Success.
54.
If a salaried employee is underpaid, equity theory would
predict that:
a. Quantity will increase. b. Quality will increase. c. Quantity and/or quality will decrease.
d.
There will be no effect.
55.
Which of the following concepts is inconsistent with the expectancy
theory of motivation?
a. Self-interest. b. Relative work of rewards. c. Knowledge of performance criteria.
d.
One’s inputs and outputs compared to another’s.
56.
Which would be least likely to be motivated by organizational
rewards?
a. An employee with a low need for affiliation. b. An employee with a high need for achievement. c. An employee with a low need for achievement.
d.
An employee with a high need for power.
57.
An example of an MBO (Management By Objectives) objective is:
a. To decrease absenteeism. b. To increase quality of products by February 1, 2005. c. To improve service to all customers.
d.
To cut departmental costs by 10 percent within 2 months.
58.
Increasing the number and variety of tasks that an individual
performs is a job design approach called:
a. Job exchange. b. Job enlargement. c. Job amplification.
d.
Job enrichment.
59.
Suggestion boxes, employee attitude surveys, and grievance
procedures are examples of:
a. Upward communication. b. Horizontal communication. c. Managerial communication.
d.
Organizational structure.
a. Understand its importance to the communication network. b. Ignore it. c. Destroy it.
d.
Force people to use formal communication channels.
a. It scores the highest in terms of channel richness. b. It provides for a maximum amount of information to be transmitted. c. Feedback is delayed.
d.
It offers multiple information cues.
62.
Which of the following is not a technique for making feedback
more effective?
a. Keep feedback personal. b. Focus on specific behaviors. c. Keep feedback goal-oriented. d. Make feedback well timed.
e.
All of the above are techniques for making feedback effective.
63.
Coordinating hundreds of hotels located around the world is
far more difficult than coordinating the few hotels making up a local chain due
to:
a. Geographical variation. b. Spatial differentiation. c. Decentralization. d. Formalization.
e.
None of the above.
64.
The office supply firm that has three departments to service
retail, wholesale, and government customers is practicing which
departmentalization method?
a. Functional. b. Customer. c. Process.
d.
Geographic.
65.
Which one of the following problems is most likely to occur in
a matrix structure?
a. Decreased response to environmental changes. b. Decreased employee motivation. c. Loss from economies of scale.
d.
Employees receiving conflicting directives.
66. According to
Maslow’s Hierarchy of Needs, the needs of achievement, adequacy, and
independence are categorized as:
a.
Safety
needs.
b.
Self-actualization
needs.
c.
Esteem
needs.
d.
Social needs.
67.
According to the
Reinforcement theory, extinction is:
a.
The withholding of positive reinforcement.
b.
The positive consequences following a desired behavior.
c. The negative consequences following an undesired behavior.
d.
The withdrawal from an unpleasant environment.
68.
Highly cohesive groups tend to possess which of the following
characteristics?
a. Large group size. b. New members can easily join the group. c. Can influence members more than in less cohesive groups.
d.
Creates better job satisfaction among its members.
69.
In Herzberg’s two-factor theory of job satisfaction,
a.
Achievement
is a motivator.
b.
Interpersonal
relationships are motivator factors.
c.
Motivators
characterize the context in which the work is performed.
d.
Increased responsibility is a
hygiene factor.
70.
In the most autonomous group, the group does what?
a. Has influence over group production goals. b. Decides on the leader. c. Decides when to work.
d.
All of the above.
71.
Groupthink can disrupt a team’s ability to make a good
decision. Symptoms of groupthink
include:
a. Collective rationalization. b. Self-censorship. c. Illusion of unanimity.
d.
All of the above.
72.
The following actions can help prevent guidelines, except:
a. Defining expectations for the group. b. Setting up independent groups to work on the same problem. c. Assigning a Devil’s advocate.
d.
Inviting outside experts to the meeting.
a. They act as group-based suggestion systems. b. They are equally effective in almost all manufacturing situations. c. They usually consist of groups of lower employees.
d.
All of the above.
74.
Which of the decision-making problem occurs when group members’ desire to maintain good relations becomes
more important than reaching good decisions?
a.
Structural
decision-making flaws.
b.
Group Think.
c.
Group
Polarization.
d.
External
pressure.
75.
There are potential drawbacks in studying leadership
styles. Which of the following is/are
problem(s) in studying leadership?
a.
People
are studied instead of the relationship itself.
b.
Measures
are often inaccurate.
c.
This
type of study involves subjective judgment.
d.
All
of the above.
a. To instruct and change. b. To define objectives. c. To set responsibilities.
d.
To provide feedback.
77.
Which of the following characterizes
organizational structures?
a. Work behavior that is managed by communication from supervisors. b. Responsibility that is attached to a single job. c. Coordination by mutual adjustment.
d.
All of the above.
78.
One of the types of organizational
structure is the matrix structure. In
which of the following situations does the matrix structure work best?
a. There is little advantage to achieve economies of scale. b. There is one strong base of departmentalization. c. There is a need to carry out interdependent tasks involving a large amount of information.
d.
A and B.
79.
Coercive power is based on which of
the following?
a. Authority. b. Knowledge. c. Capability to punish.
d.
Charisma.
80.
If an organization decided to change its organizational
structure into a matrix structure, which one of the following potential
problems might occur?
a. Power struggles may become more intense. b. Employees have multiple reporting structures. c. Increase in costs.
d.
All of the above.
81.The following are the main benefits from adopting a
common currency, except:
a.
Reduction
in transaction costs.
b.
Elimination
of exchange rate uncertainty.
c.
Reduction
in rivalry between participating countries.
d.
Increased price transparency.
82.
The following are the three major dimensions that distinguish
international finance from domestic finance, except:
a. Foreign exchange risks. b. Market imperfections. c. Political risks.
d.
Demand risks.
83.
When the same or equivalent things are trading at the same
price across different locations or markets, which of the following
implications prevails?
a. The law of one price. b. Arbitrage portfolio c. Interest rate parity.
d.
Purchasing power parity.
84.
Which of
the following theories states that the exchange rate between currencies of two
countries should be equal to the ratio of the countries’ price levels?
a. The law of one price. b. Purchasing power parity. c. Arbitrage portfolio
d.
Interest rate parity.
85.
Which of the following implies that an increase (decrease) in
the expected inflation rate in a country will cause a proportionate increase
(decrease) in interest rate in the country?
a. Efficient markets hypothesis. b. Forward expectation parity. c. Purchasing power parity.
d.
Fisher effect.
86.
When Honda, a Japanese automobile manufacturer, built an
assembly factory in Ohio, the company was engaged in:
a. Capital investment. b. Portfolio investment. c. Foreign direct investment.
d.
Branch investment.
87.
The type of international transaction that covers all
purchases and sales of international reserve assets, such as dollars, foreign
exchanges, gold, and drawing rights is called:
a. Current account. b. Official reserve account. c. International account.
d.
Capital account.
88.
The type of international transaction that includes all
purchases and sales of assets, such as stocks, bonds, bank accounts, real
estate, and businesses is called:
a. Current account. b. Official reserve account. c. International account.
d.
Capital account.
89.
An arbitrage condition that must hold true when international
financial markets are in equilibrium is called:
a. The law of one price. b. Arbitrage portfolio c. Interest rate parity.
d.
Purchasing power parity.
90.
Forecasting exchange rates is an important task for
multinational corporations that are formulating international sourcing,
production, financing, and marketing strategies. The following approaches can
be used as forecasting techniques, except:
a.
Analysis
approach.
b.
Efficient
markets approach.
c.
Fundamental
approach.
d.
Technical approach.
91.
The following are some of the reasons why a bank may
establish multinational operations, except:
a.
Multinational
banks are not often subject to the same regulations as domestic banks.
b.
Multinational
banks are perceived to be prestigious and to have liquidity that can be used to
attract clients abroad.
c.
Managerial
and marketing knowledge developed at home can be used abroad with low marginal
costs.
d.
Growth potential in target countries is unlimited compared
with the services offered by domestic banks.
92.
Countries,
such as the Bahamas, the Cayman Islands, Panama, and Singapore, whose banking
system is organized to permit external accounts beyond the normal economic
activity, operate which of the following?
a. Foreign branch bank. b. International banking facilities (IBF). c. Offshore banking center.
d.
Subsidiary banking center.
93.
An interbank contract that allows
the Eurobank to hedge the interest rate risk in mismatched deposits and credits
is called:
a. Forward rate agreement (FRA). b. Euronotes. c. Backward rate agreement (BRA).
d.
International debt agreement.
94.
The groups of people who stand ready
to buy or sell securities, provide liquidity, and operate in the secondary
market are called:
a. Brokers. b. Specialists. c. Market makers.
d.
Investment banks.
95.
The secondary equity markets of the
world serve all of the following purposes, except:
a. Marketability. b. Providing limit order. c. Sharing valuation.
d.
Competitive trading that fosters fair market prices.
96.
Cross listing refers to a firm having its equity shares listed
on one or more foreign exchanges, in addition to the home country stock
exchange. Which of the following is not a reason for a firm to cross-list its shares?
a. Cross listing may mitigate the possibility of a hostile takeover. b. Cross listing provides a means for expanding the investor base for a firm’s stock, thus potentially increasing the demand for the stock. c. Cross listing establishes name recognition of the company in a new capital market.
d.
Cross listing brings the investor’s name before the firm and
consumer groups.
97.
Two types
of market participants that are necessary for a derivatives market to operate
are speculators and hedgers. A hedger:
a. Tries to avoid price variation by locking a purchase price through a contract. b. Bears the risk of future price changes. c. Attempts to profit from a change in the futures price.
d.
Takes
a long or short position in futures contract depending upon expectation of
price movement.
98.
The practice of exchanging debt service obligations of a
bond denominated in one currency for the debt service obligations denominated
in another currency is called:
a. Reversing trade. b. Currency swap. c. Trade agreement.
d.
Bond swap.
99.
Which of the following is not one of the
classifications of the potential foreign currency exposures?
a. Economic exposures. b. Transaction exposure. c. Customer exposure.
d.
Translation exposure.
100.
To manage operating exposure, a firm
can use various strategies such as the following, except:
a. Production reengineering processes. b. Maintaining flexibility sourcing policy. c. Diversification of the market.
d.
Financial hedging using currency options and forward
contracts.
|
1. A 2. D 3. C 4. D 5. A 6. B 7. C 8. C 9. D 10. C 11. A 12. C 13. C 14. B 15. C 16. C 17. A 18. D 19. C 20. D 21. C 22. C 23. B 24. C 25. A 26. B 27. D 28. D 29. A 30. C 31. D 32. D 33. A 34. A 35. B 36. B 37. B 38. C 39. B 40. D 41. B 42. D |
43. C 44. C 45. D 46. A 47. B 48. D 49. A 50. C 51. C 52. D 53. B 54. C 55. D 56. B 57. D 58. B 59. A 60. A 61. C 62. A 63. B 64. B 65. D 66. C 67. A 68. C 69. A 70. D 71. D 72. A 73. D 74. B 75. D 76. A 77. C 78. C 79. C 80. D 81. C 82. D 83. A 84. B 85. D |
86. C 87. B 88. D 89. C 90. A 91. D 92. C 93. A 94. C 95. B 96. D 97. A 98. B 99. C 100. A |
Contact Us
Home / About Us / Services / Newsletter
IT Audit / Pre-QAR / CIA / 1 Stop IA Shop / IA Manual
Audit Services Tel:615-790-9858 PO Box 681387, Franklin, TN 37068