Certified Internal Auditor - Part 4, Business Management Skills: IIA-CIA-PART4

Correct Answer: D

Departmentation may be performed by function, product, and geography. Departmentation by function is found in almost every organization at some level, whether for-profit or nonprofit. The most common departments in for-profit organizations are marketing, production, and finance though other terms maybe used). These often extend upward in the organizational chart to the level below the chief executive. Departmentation by product or service is growing in importance for multiline, large-scale enterprises. It is often an outgrowth of functional departmentation. The result is that product-service subunits may be treated as separate businesses with a high degree of autonomy. Managers must therefore have a broad perspective, not a merely functional orientation. Departmentation by territory geographic location) is favored by national or multinational firms and government agencies with scattered resources, offices, or plants.

Correct Answer: D

Values are specific to each individual and involve moral and personal issues. They tend to be learned in childhood from parents, friends, and others. Values can be modified throughout life but ordinarily tend to stay the same.

Correct Answer: B

Token awards are normally nonrecurring. They show appreciation for the role of the employee. Other similar examples are gift coupons, stock options, early time off with pay, or dinner and theater tickets.