- (Exam Topic 1)
Organizational activities that complement each other and create a competitive advantage are called a:

1. A. Merger.
2. B. Strategic fit.
3. C. Joint venture.
4. D. Strategic goal.

Correct Answer: B

- (Exam Topic 1)
Which of the following factors is considered a disadvantage of vertical integration?

1. A. It may reduce the flexibility to change partners.
2. B. It may not reduce the bargaining power of suppliers.
3. C. It may limit the organization's ability to differentiate the product.
4. D. It may lead to limited control of proprietary knowledge.

Correct Answer: A

- (Exam Topic 1)
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

1. A. A multinational company has stockholders in other countries.
2. B. A multinational company exports its products to other countries.
3. C. A multinational company operates outside of its country of origin.
4. D. A multinational company uses raw materials and components from more than one country.

Correct Answer: C

- (Exam Topic 1)
Which of the following should an organization consider when developing strategic objectives for its business processes?
* 1. Contribution to the success of the organization.
* 2. Reliability of operational information.
* 3. Behaviors and actions expected of employees.
* 4. How inputs combine with outputs to generate activities.

1. A. 1 and 2 only
2. B. 1 and 3 only
3. C. 2 and 4 only
4. D. 3 and 4 only

Correct Answer: B

- (Exam Topic 2)
An internal auditor is reviewing the organization's performance appraisal process. Which of the following methods would be most effective to identify stereotyping?

1. A. Use a behaviorally anchored rating scale to Break down jobs into their components.
2. B. Analyze and compare the ratings for different classes or groupings of employees.
3. C. Compare the ratings of selective employees with their previous appraisals.
4. D. Analyze the number and percentages of employee appraisals that fall into each rating category

Correct Answer: C