CIA Part 3 - Business Knowledge for Internal Auditing: IIA-CIA-PART3

Correct Answer: B

A cartel is an organization of sellers (e.g., the oil cartel OPEC) who undertake joint action to maximize members' profits by controlling the supply, and therefore the price, of their product. Under the laws of many nations, such collusive conduct is illegal when engaged in by firms subject to those laws. The reason is that, as a result of the monopolistic and anticompetitive practices of cartels, supply is lower, prices are high, competition is restrained, and the relevant industry is less efficient. Accordingly, governmental and international organizations seek to protect consumers and the health of the domestic and global economy through anti-cartel efforts.

Correct Answer: C

In the 1960s, Douglas McGregor developed two theories to describe the extremes of managers' views of human nature. Theory X is a negative view of people and the way they interact with the organization. Theory X assumes that people dislike work, must be threatened with punishment to work toward organizational objectives, require close supervision, avoid responsibility, and crave security.

Correct Answer: B