Question 1

The IFE Matrix should be ________ in multidivisional firms.
A) constructed for each autonomous division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly

Accepted Answer

The IFE Matrix should be constructed for each autonomous division in multidivisional firms because it helps to evaluate the internal strengths and weaknesses of each division.

Question 2

In the IFE Matrix, a weight of 0.01 means the factor is not important.

Accepted Answer

A weight of 0.01 in the IFE Matrix indicates that the factor has minimal importance or impact on the company's success.

Question 3

In the IFE Matrix, the sum of all weights must equal 1.0.

Accepted Answer

The Internal Factor Evaluation (IFE) Matrix requires that the sum of all assigned weights equals 1.0 to ensure a balanced assessment of internal factors.

Question 4

Which of the following is the last step in developing an IFE Matrix?
A) Determining the organization's structure
B) Summing the weighted scores for each variable
C) Obtain total weighted score
D) Identifying the organization's functions of business
E) Assigning a weight to each factor

Accepted Answer

The last step in developing an Internal Factor Evaluation (IFE) Matrix is to obtain the total weighted score by summing the weighted scores for each variable.

Question 5

________ exemplifies the complexity of relationships among the functional areas of business.
A) Government auditing
B) External auditing
C) Financial ratio analysis
D) Environmental scanning
E) Distribution strategy

Accepted Answer

The answer of ________ exemplifies the complexity of relationships among...

Question 6

Cyberthreats are more of a technology threat than a people threat.

Accepted Answer

Cyberthreats often exploit human vulnerabilities, such as through phishing attacks, making them as much a people threat as a technology threat.

Question 7

The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization.

Accepted Answer

Internal audits are conducted by employees within the organization, allowing them to gain insights into the organization's operations and how different parts interconnect, unlike external audits which are conducted by outside parties.

Question 8

An IFE Matrix can be developed in ________ steps.
A) three
B) four
C) five
D) six
E) two

Accepted Answer

An Internal Factor Evaluation (IFE) Matrix is developed in five steps: identifying key internal factors, assigning weights, rating the factors, multiplying weights by ratings, and summing the weighted scores.

Question 9

The initial step in developing an IFE Matrix is
A) attaching a cost to each discrete activity.
B) assigning weights to key internal factors.
C) assigning ratings to key internal factors.
D) obtaining weighted scores.
E) developing a full and narrow list of key internal factors.

Accepted Answer

The initial step in developing an Internal Factor Evaluation (IFE) Matrix is to develop a full and narrow list of key internal factors. This involves identifying the strengths and weaknesses that are critical to the organization's success.

Question 10

Technology ties all business functions together and provides the basis for all managerial decisions.

Accepted Answer

The answer of Technology ties all business functions together and...

Question 11

The maximum weight for a factor in the IFE Matrix is
A) 0.01.
B) 2.
C) 3.
D) 4.
E) 1.

Accepted Answer

The maximum weight for a factor in the Internal Factor Evaluation (IFE) Matrix is 1.0, as weights are assigned on a scale from 0.0 to 1.0.

Question 12

Data mining can help in generating predictive models.

Accepted Answer

Data mining involves analyzing large datasets to discover patterns and relationships, which can be used to create models that predict future outcomes.

Question 13

In the IFE Matrix, weights are industry-based, not company-based.

Accepted Answer

The IFE (Internal Factor Evaluation) Matrix uses weights that are based on industry standards to assess the internal strengths and weaknesses of a company relative to its competitors.

Question 14

According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

Accepted Answer

William King suggests that a task force of managers from different units should identify key strengths and weaknesses to guide the organization's future.

Question 15

Who should perform an internal audit?
A) A private auditing firm
B) The organization's accounting department
C) Representative managers and employees from throughout the firm
D) A small team of top-level managers
E) The chief executive officer

Accepted Answer

Internal audits are typically performed by representative managers and employees from throughout the firm to ensure objectivity and a comprehensive understanding of the organization's operations.

Question 16

Constructing an Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit.

Accepted Answer

An Internal Factor Evaluation (IFE) Matrix is used to summarize and evaluate the major strengths and weaknesses in the functional areas of a business, which is a key step in an internal strategic-management audit.

Question 17

The Internal Factor Evaluation Matrix should use a total of 20 internal factors.

Accepted Answer

The Internal Factor Evaluation Matrix (IFE Matrix) is a tool used to evaluate the internal strengths and weaknesses of an organization. It typically uses a total of 20 internal factors, which are grouped into four categories: financial, operational, marketing, and organizational.

Question 18

In analyzing big data, there is a shift from focusing largely on outliers to also focusing on aggregates.

Accepted Answer

The answer of In analyzing big data, there is a...

Question 19

The IFE Matrix is an evaluation of the effectiveness of the firm's current strategies, not taking into account opportunities and threats.

Accepted Answer

The Internal Factor Evaluation (IFE) Matrix focuses on internal strengths and weaknesses, assessing the effectiveness of current strategies without considering external opportunities and threats.

Question 20

The average total weighted score in the IFE Matrix is
A) 4.0.
B) 2.5.
C) 1.0.
D) 3.2.
E) 1.8.

Accepted Answer

The average total weighted score in the Internal Factor Evaluation (IFE) Matrix is 2.5, which indicates a balance between strengths and weaknesses within an organization.

Quiz 4: The Internal Assessment

The IFE Matrix should be ________ in multidivisional firms.

In the IFE Matrix, a weight of 0.01 means the factor is not important.

In the IFE Matrix, the sum of all weights must equal 1.0.

Which of the following is the last step in developing an IFE Matrix?

________ exemplifies the complexity of relationships among the functional areas of business.

Cyberthreats are more of a technology threat than a people threat.

The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization.

An IFE Matrix can be developed in ________ steps.

The initial step in developing an IFE Matrix is