Question 1

Which of the following is an example of a risk avoidance strategy?

Options :

A : Hedging against exchange rate variations.

B : Limiting access to an organization-s data center.

C : Selling a nonstrategic business unit.

D : Outsourcing a high-risk activity.

Answer: C

Question 2

A capital investment project will have a higher net present value, everything else being equal, if it has:

Options :

A : A higher initial investment level.

B : A higher discount rate.

C : Cash inflows that are larger in the later years of the life of the project.

D : Cash inflows that are larger in the earlier years of the life of the project.

Answer: D

Question 3

Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

Options :

A : The cost of goods sold for the period will be understated.

B : The cost of goods sold for the period will be overstated.

C : The net income for the period will be understated.

D : There will be no effect on the cost of goods sold or the net income for the period.

Answer: B

Question 4

Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

Options :

A : A sense of achievement.

B : Promotion.

C : Recognition.

D : An incremental increase in salary.

Answer: D

Question 5

An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

Options :

A : Lack of awareness of the state of processing.

B : Increased cost and complexity of network traffic.

C : Interference of the mirrored data with the original source data.

D : Confusion about where customer data are stored.

Answer: B

Higher Test Marks with Free Online IIA-ACCA Exam Practice

Buying Options: