Free Access IIA.IIA-CIA-Part3-3P.v2022-09-14.q151 Practice Test (Page 25)

Question 116

An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two.
Which of the following could be the reason for the decline in the net profit margin for year two?

A.The government increased the corporate tax rate.

B.Cost of sales increased relative to sales.

C.Total sales increased relative to expenses.

D.The organization had a higher dividend payout rate in year two.

Question 117

Which of the following statements is true regarding the "management-by-objectives" method?

A.Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.

B.Management by objectives helps organizations to keep employees motivated.

C.Management by objectives is most helpful in organizations that nave rapid changes.

D.Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

Question 118

Which of the following is a disadvantage in a centralized organizational structure?

A.Communication conflicts.

B.Loss of economies of scale

C.Slower decision making

D.Vulnerabilities in sharing knowledge

Question 119

Which of the following is a characteristic of big data?

A.Big data is often generated slowly and is highly variable.

B.Big data comes from internal sources kept in data warehouses.

C.Big data analytic results often need to be visualized.

D.Big data is often structured.

Question 120

Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?

A.PKI uses an independent administrator to manage the public key.

B.The private key uniquely authenticates each party to a transaction.

C.The public key is authenticated against reliable third-party identification.

D.PKI's public accessibility allows it to be used readily for e-commerce.

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