21-30

Hofstede developed an influential model of the dimensions on which national cultures differ. In the Hofstede's model, a national culture which supports single status pay arrangements, informal styles of dress in the workplace and self-managed team working would be classified as:

• Individualistic

• Collective

• Low power distance

• High uncertainty distance

The key purpose of internal auditing is to

• Detect errors and frauds

• Evaluate the organization's risk management processes and systems of control

• Give confidence as to the truth and fairness of the financial statements

• Express an internal opinion on the truth and fairness of the financial statements

According to Hofstede, the extent to which security, order and control are preferred to ambiguity and change is called:

• Masculinity

• Individualism

• Power distance

• Uncertainty avoidance

If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are

• Substitutes

• Complements

Internal auditors have an unavoidable..........problem, as they report to those people whose activities they are reporting on. Which word correctly completes this sentence?

• Integrity

• Independence

• Loyalty

Under typical employment protection legislation, which of the following would be classified as an unfair reason for the dismissal of an employee?

• The employee was a member of a trade union

• The employee was guilty of misconduct

• The employee's job became redundant

• The employee had a lack of qualifications or capability for the job

Delayering refers to eliminating several levels of unnecessary management to reduce Y's costs, leading to lower prices for customers.

• true

• false

Increases in unemployment, reduced demand, falling household incomes and low business confidence and investment are associated most strongly with which of the following?

• High interest rates

• Increase in the money supply

• A budget deficit

• Recession

Constructive dismissal occurs when an organization no longer needs an employee and therefore terminates their contract.

• true

• false

In an economic environment of high price inflation, those who owe money will gain and those who are owed money will lose. Is this statement true or false?

• true

• false