← Back to exam page

IIA-CIA-Part4 – Certified Internal Auditor - Part 4, Business Management Skills

Loading demo links...

Showing 4–6 of 20 questions

Question 4

A firm ships its product to a foreign subsidiary and charges a price that may increase import duties but lower the income taxes paid by the subsidiary. The most likely reason for these effects is that the:

Select an option, then click Submit answer.

  • ○

    Price is an arm's-length price.
  • ○

    Price is a cost-plus price.
  • ○

    Transfer price is too low.
  • ○

    Transfer price is too high.
Question 5

Entry into a new business may be made by internal development or acquisition. Entry through internal development usually involves creation of a full-fledged new business entity. The costs likely to be incurred by an internal entrant include:

II. Investments to overcome entry barriers

II. Change in the equilibrium level of supply and demand

III. Lower prices charged by competitors

IV. Higher marketing costs

Select an option, then click Submit answer.

  • ○

    I and II only.
  • ○

    I and IV only.
  • ○

    II, Ill, and IV only.
  • ○

    I, II, Ill, and IV.
Question 6

Backward integration strategy is most appropriate when the firm's current suppliers are:

Select an option, then click Submit answer.

  • ○

    Highly reliable.
  • ○

    Not reliable.
  • ○

    Geographically dispersed.
  • ○

    Geographically concentrated.