IIA IIA-CIA-Part4 - Certified Internal Auditor - Part 4, Business Management Skills Exam
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Total 535 questions
Question #1 (Topic: )
Which of the following is the most significant reason that domestic governments and
international organizations seek to eliminate cartels?
international organizations seek to eliminate cartels?
A. The increased sales price reduces the amount of corporate tax revenues payable to the government.
B. True competition keeps prices as low as possible, thus increasing efficiency in the marketplace.
C. Small businesses cannot survive or grow without government protection.
D. The economic stability of developing countries depends on a global free market.
Answer: B
Question #2 (Topic: )
When a multinational firm decides to sell its products abroad, one of the risks the firm faces
is that the government of the foreign market charges the firm with dumping. Dumping
occurs when
is that the government of the foreign market charges the firm with dumping. Dumping
occurs when
A. The same product sells at different prices in different countries.
B. A firm charges less than the cost to make the product so as to enter or win a market.
C. Lower quality versions of the product are sold abroad so as to be affordable.
D. Transfer prices are set artificially high so as to minimize tax payments.
Answer: B
Question #3 (Topic: )
A global firm
A. Has achieved economies of scale in the firm's domestic market.
B. Plans, operates, and coordinates business globally.
C. Relies on indirect export.
D. Tends to rely more on one product market.
Answer: B
Question #4 (Topic: )
A firm expands into international markets to
A. Be in foreign markets.
B. Eliminate foreign competition
C. Pursue new, higher-profit opportunities.
D. Preclude piracy of the firm's products.
Answer: C
Question #5 (Topic: )
A firm wishing to become global must consider how many national markets to enter. A firm
should enter fewer national markets when
should enter fewer national markets when
A. Communication adaptation costs are low.
B. The product need not be adapted.
C. Entry costs are low.
D. The first countries chosen are heavily populated and have high incomes.
Answer: D
