Online Access Free IIA.IIA-CIA-Part3.v2021-09-30.q250 Practice Test (Page 15)

One of the main reasons total quality management (TQM) can be used as a strategic weapon is that:

A.The cumulative improvement from a company's TQM efforts cannot readily be copied by competitors.

B.Introducing new products can lure customers away from competitors.

C.Reduced costs associated with better quality can support higher shareholder dividends.

D.TQM provides a comprehensive planning process for a business.

When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

A.Each good is produced by the nation that has the lowest opportunity cost for that good.

B.Goods that contribute to a nation's balance-of-payments deficit are no longer imported.

C.Each nation's total imports approximately equal its total exports.

D.International trade is unrestricted and tariffs are not imposed.

An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

A.Face increased production costs.

B.Have to initiate a price war in order to enter the industry.

C.Face higher learning costs, which would increase fixed costs.

D.Face increased marketing costs.

Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

A.Threats and opportunities.

B.Performance.

C.Risk tolerance

D.Governance

In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?

A.Drum.

B.Buffer.

C.Rope.

D.No part of TOC analysis corresponds to the drum-buffer-rope model.

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