Question 1

What are some examples of environmental factors that may influence an organization's external context?

Options :

A : Climate and natural resources

B : Organizational procurement, vendor selection, and contract negotiation for hazardous waste disposal

C :

Organizational performance metrics, goal setting, and progress tracking regarding climate-related projects

D : Organizational response to new carbon emission regulations

Answer: A

Question 2

What criteria should objectives meet to be considered effective?

Options :

A : Objectives should be based only on financial metrics for each unit or department

B : Objectives should meet the SMART criteria (Specific, Measurable, Achievable, Relevant, Timebound)

C : Objectives should only have one timescale, e.g., quarterly, annually, 5 years

D : Objectives should be sought by a majority of the stakeholder categories for the organization

Answer: B

Question 3

How does the IACM address unfavorable events related to obstacles?

Options :

A : By focusing on opportunities

B : By decreasing the ultimate likelihood and impact of harm

C : By implementing a flat organizational structure

D : By conducting regular employee satisfaction surveys

Answer: B

Question 4

What is the difference between reasonable assurance and limited assurance?

Options :

A :

Reasonable assurance is provided by external auditors as part of a financial audit and indicates conformity to suitable criteria and freedom from material error, while limited assurance results from reviews, compilations, and other activities performed by competent personnel who are sufficiently objective about the subject matter.

B :

Reasonable assurance is provided by internal auditors as part of a risk assessment, while limited assurance results from external audits and regulatory examinations.

C :

Reasonable assurance is provided by the Board of Directors as part of governance activities, while limited assurance results from employee self-assessments.

D :

Reasonable assurance is provided by management as part of strategic planning, while limited assurance results from operational reviews and performance evaluations.

Answer: A

Question 5

What is the purpose of analyzing the internal context within an organization?

Options :

A :

To consider internal strengths and weaknesses, strategic plans, operating plans, organizational structures, policies, people, processes, technology, resources, information, and other internal factors that define the organization’s operations.

B :

To determine the organization’s financial performance and profitability with its current plans, structures, people, and other internal factors that define the organization’s operations.

C : To evaluate the organization’s use of resources in relation to its established objectives.

D : To assess how the organization operates given market conditions and competitive landscape.

Answer: A

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