Question 1

Which of the following are typical responsibilities for operational management within a risk management program?

1. Implementing corrective actions to address process deficiencies.

2. Identifying shifts in the organization's risk management environment.

3. Providing guidance and training on risk management processes.

4. Assessing the impact of mitigation strategies and activities.

Options :

A : 1 and 2 only

B : 1 and 4 only

C : 2 and 3 only

D : 3 and 4 only

Answer: B

Question 2

What kind of strategy would be most effective for an organization to adopt in order to implement a unique advertising campaign for selling identical product lines across all of its markets?

Options :

A : Export strategy.

B :

Transnational strategy.

C : Multi-domestic strategy.

D : Globalization strategy.

Answer: C

Question 3

An investor has acquired an organization that has a dominant position in a mature, slow-growth industry and consistently creates positive financial income. Which of the following terms would the investor most likely label this investment in her portfolio?

Options :

A : A star.

B : A cash cow.

C : A question mark.

D : A dog.

Answer: B

Question 4

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?

Options :

A : Cost of sales increased relative to sales.

B : Total sales increased relative to expenses.

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

D : The government increased the corporate tax rate.

Answer: A

Question 5

Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

Options :

A : There is a higher reliance on organizational culture.

B : There are clear expectations set for employees.

C : There are electronic monitoring techniques employed.

D : There is a defined code for employee behavior.

Answer: B