Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 243

An organization's board of directors is particularly focused on positioning the organization as a leader in the industry and beating the competition.

Which of the following strategies offers the greatest alignment with the board's focus?

Answer options

• A. Divesting product lines expected to have negative profitability.
• B. Increasing the diversity of strategic business units.
• C. Increasing investment in research and development for a new product.
• D. Relocating the organization's manufacturing to another country.

Correct answer: B

Explanation

Option B is correct because increasing the diversity of strategic business units can enhance competitive advantage and market presence, aligning with the board's goal. Options A, C, and D, while potentially beneficial, do not directly focus on broadening the organization’s strategic approach to lead in the industry and compete effectively.