IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 181:

  Frederick Herzberg postulated a two-factor theory of human behavior that included satisfiers anddissatisfies. Which of the following is adissatisfied?

  A. Promotion to another position.

  B. Salary.

  C. Challenging work.

  D. Responsibility.

  Correct Answer: B

  Frederick Herzberg's two-factor theory of human behavior postulates that there are two classes of factors in the job situation. Maintenance of hygiene factors dissatisfiers) are those the presence of which will not especially motivate people but the absence of which will diminish performance. These factors are extrinsic to the work itself. They include supervision, working conditions, interpersonal relations, salary, and status. Motivational factors (satisfiers) are those the absence of which will not diminish performance but the addition or availability of which will motivate employees. Intrinsic to the work itself, these include achievement, recognition, challenging work, advancement, growth in the job, and responsibility.

• Question 182:

  Which of the following statements is true with respect to a change in values?

  A. Values are neither stable nor enduring.

  B. The process of questioning values will result in a change.

  C. Values are not fixed, and when they change, they change quickly.

  D. Values are established in early years and are unlikely to change.

  Correct Answer: D

  Values are specific to each individual and involve moral and personal issues. They tend to be learned in childhood from parents, friends, and others. Values can be modified throughout life but ordinarily tend to stay the same.

• Question 183:

  A manager has a small team of employees, but each individual is self-motivated and could be termed a "high achiever." The manager has been given a particularly difficult assignment. Even for a high achiever, the probability that this job can be completed by one individual by the required deadline is low. Select the best course for the audit manager.

  A. Assign one individual since high achievers thrive on high risks.

  B. Assign two employees to moderate the risk of failure.

  C. Assign all employees to ensure the risk of failure is low.

  D. Ask company management to cancel the job.

  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.

• Question 184:

  A company, the largest provider of mental health services in its area, was encountering personnel problems. The company's facilities housed many clients, but funding never seemed adequate to hire quality, live-in staff. A new administrator is determined to facilitate long-term employment of the best possible care-giving staff. Besides paying better wages, the administrator believes that the staff should be strongly motivated by the work itself. According to Maslow's hierarchy of needs, the best employees would have a need for:

  A. Esteem.

  B. Belonging.

  C. Self-actualization.

  D. Safety and security.

  Correct Answer: C

  Self-actualization is the highest level need in Maslow's hierarchy. Self-actualization refers to the desire to become what one is capable of becoming, to realize one's potential and accomplish to the limit of one's ability. It becomes important only after the lower level needs have been met. The work itself becomes the motivator after all lower level needs are satisfied.

• Question 185:

  Maslow's theory of motivation is based on a hierarchy of human needs. The need satisfied by greater income is:

  A. Self-actualization.

  B. Safety.

  C. Participation.

  D. Authority.

  Correct Answer: B

  Maslow saw human needs as a hierarchy and held that lower-level needs physiological and safety needs) must be satisfied before higher-level needs acceptance by peers, esteem,self actualization) can influence the individual. Safety needs involve protection not only from physical harm but also from economic insecurity. Job and income security help to satisfy the need for safety.

• Question 186:

  According to thebehavioral theory of management:

  A. Employees are motivated to fulfill needs.

  B. Morale problems are not goal related.

  C. Compensation is a universal motivator.

  D. Productivity is not correlated with job satisfaction.

  Correct Answer: A

  The behavioral theory of management holds that all people including employees) have complex needs, desires, and attitudes. The fulfillment of needs is the goal toward which employees are motivated. Effective leadership matches need-fulfillment rewards with desired behavior tasks) that accomplishes organizational goals.

• Question 187:

  A firm wishes to enter a new business by creating a new entity (an internal entrant). The internal entrant is most likely to achieve above-average profits by targeting which industry?

  A. An industry with high entry costs.

  B. An industry with a stabilized structure.

  C. A new industry.

  D. An industry in equilibrium if entry positively affects the firm's existing businesses.

  Correct Answer: C

  A firm may be able to achieve above-average profits by choosing appropriate targets. For example, an industry may be in disequilibrium because it is new, entry barriers are rising, or firms have poor information. In a new industry, (1) the structure is not established,

  (2) entry barriers are low, (3) retaliation is unlikely, (4) resource supplies have not been locked up, and (5) brands are not well developed.

  However, initial firms may have greater costs than later entrants. Rising entry barriers favor an early entrant whose subsequent competitors will face higher costs. The early entrant also may have an edge in product differentiation. Poor

  information may perpetuate disequilibrium because firms that might enter the industry may not be aware of its potential.

• Question 188:

  A firm may decide to enter a new business by creating a new entity. After undertaking a structural analysis, the internal entrant chooses an appropriate target industry. The most likely target is an industry in which the entrant:

  A. Will have to develop its own distribution network.

  B. Can raise mobility barriers after entry.

  C. Will not have to compete with a dominant firm that seeks to protect the industry.

  D. Calculates that the costs of retaliation to existing firms are less than the benefits.

  Correct Answer: B

  A distinctive ability to influence industry structure is another basis for earning above- average profits. Thus, an ability to raise mobility barriers after the firm has entered the industry is a reason to target that industry. Moreover, a firm may be able to recognize that entering a fragmented industry will start a process of consolidation and increased entry barriers.

• Question 189:

  Entry by a firm into a new business may be through the creation of a full-fledged new business entity. The new entrant is most likely to cause industry disruption and retaliation when:

  A. The industry is fast-growing.

  B. The industry is highly concentrated.

  C. Fixed costs are low.

  D. The market is segmented.

  Correct Answer: B

  In a highly concentrated industry, the internal entrant is more likely to have a significant and noticeable effect on particular firms with the ability to retaliate. In a fragmented industry, any firms might be affected but not significantly. These firms also might have no ability to retaliate.

• Question 190:

  A firm enters a new business by creating a full-fledged new entity (an internal entrant). The internal entrant is least likely to cause disruption and retaliation in a:

  A. Slow-growth industry.

  B. Fragmented industry.

  C. Commodity-producing industry.

  D. Highly-concentrated industry.

  Correct Answer: B

  In a fragmented industry, many firms might be affected but not significantly. These firms also might have no ability to retaliate. Firms in a fragmented industry have insignificant market shares and little influence on industry outcomes.