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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2024-06-15.q282 Dumps
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Question 161

A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:

Correct Answer: B
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Question 162

Which of the following is an advantage of a decentralized organizational structure, as opposed to a centralized structure?

Correct Answer: A
Explanation/Reference: https://www.economicsdiscussion.net/management/advantages-and-disadvantages-of- decentralization/31848
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Question 163

Which of the following is not true about the advantages of adopting ISO 9000 standards?

Correct Answer: C
Market pressure is usually the primary reason that entities adopt ISO 9000 standards. However, many entities that register make internal process and quality improvement as a result. ISO 9000 forces entities to share information, which leads to a better understanding of who internal customers and users are.
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Question 164

An investment company is attempting to allocate its available funds between two investment alternatives, equities and bonds, which differ in terms of expected return and risk. The company would like to minimize its risk while earning an expected return of at least 10% and investing no more than 70% in either of the investment alternatives. An appropriate technique for allocating its funds between equities and bonds is:

Correct Answer: A
Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function that is subject to certain constraints. In this case, the maximum investment is constrained by a 70% limit on either investment choice.
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Question 165

The activity of trading futures with the objective of reducing or controlling risk is called:

Correct Answer: B
Hedging is the use of offsetting commitments to minimize the effect of adverse future price movements. Thus, a financial manager may limit many risk exposures by trading in futures markets.
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