- (Exam Topic 1)
The main reason to establish internal controls in an organization is to:

1. A. Encourage compliance with policies and procedures.
2. B. Safeguard the resources of the organization.
3. C. Ensure the accuracy, reliability, and timeliness of information.
4. D. Provide reasonable assurance on the achievement of objectives.

Correct Answer: D

- (Exam Topic 1)
Which of the following statements is true regarding the resolution of interpersonal conflict?

1. A. Unrealized expectations can be avoided with open and honest discussion.
2. B. Reorganization would probably not help ambiguous or overlapping jurisdictions.
3. C. Deferring action should be used until there is sufficient time to fully deal with the issue.
4. D. Timely and unambiguous clarification of roles and responsibilities will eliminate most interpersonal conflict.

Correct Answer: A

- (Exam Topic 1)
The cost to enter a foreign market would be highest in which of the following methods of global expansion?

1. A. Joint ventures.
2. B. Licensing.
3. C. Exporting.
4. D. Overseas production.

Correct Answer: D

- (Exam Topic 1)
Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

1. A. Political.
2. B. Financial.
3. C. Social.
4. D. Tariff.

Correct Answer: A

- (Exam Topic 1)
Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

1. A. Fragmented industries.
2. B. Declining industries.
3. C. Mature industries.
4. D. Emerging industries.

Correct Answer: D