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Which of the following is an example of a risk avoidance response?
Which of the following is an example of a risk avoidance response?A . Buying an insurance policy to protect against loss events.B . Hedging against natural gas price fluctuations.C . Selling a non-strategic business unit.D . Outsourcing a high risk process to a third party.View AnswerAnswer: C
Which of the following best describes a market signal?
Which of the following best describes a market signal?A . The bargaining power of buyers is forcing a drop in market prices.B . There is pressure from the competitor's substitute products.C . Strategic analysis by the organization indicates feasibility of expanding to new market niches.D . The competitor announces a...
In order to maximize profit, how much of product Y should the organization produce each month?
An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows: Product X Product Y Selling price per unit $10...
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?A . Lack of flexibility.B . Incompatibility with client/server technology.C . Employee resistance to change.D . Inadequate technical support.View AnswerAnswer: A
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?
An organization has recorded the following profit and expenses: Profit before interest and tax $200,000 Sales $2,300,000 Purchases of materials $700,000 Interest expenses $30,000 If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT...
Which of the following is a role of the board of directors in the governance process?
Which of the following is a role of the board of directors in the governance process?A . Conduct periodic assessments of the organization's governance systems.B . Obtain assurance concerning the effectiveness of the organization's governance systems.C . Implement an effective system of internal controls to support the organization's governance systems.D...
According to IIA guidance, which of the following is a typical risk associated with the tender process and contracting stage of an organization's IT outsourcing life cycle?
According to IIA guidance, which of the following is a typical risk associated with the tender process and contracting stage of an organization's IT outsourcing life cycle?A . The process is not sustained and is not optimized as planned.B . There is a lack of alignment to organizational strategies.C ....
Capacity overbuilding is most likely to occur when management is focused on which of the following?
Capacity overbuilding is most likely to occur when management is focused on which of the following?A . Marketing.B . Finance.C . Production.D . Diversification.View AnswerAnswer: C
In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?
In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?A . The underlying causes of the risk.B . The impact of the risk on the organization's objectives.C . The risk levels of current and future events.D . The...
Emergency changes that bypass the normal control process frequently are deemed necessary.
Emergency changes that bypass the normal control process frequently are deemed necessary.A . 1 and 3 onlyB . 2 and 4 onlyC . 1, 2, and 4 onlyD . 1, 2, 3, and 4View AnswerAnswer: C
