Chapter 1 - Multiple Choice

An example of an organizational complementary asset is

using the appropriate business model

Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time?

1,2, and 3

Order data for baseball tickets and bar code data are examples of

A raw input

Which of the following would not be a complementary asset for a solar panel manufacturer?

centralized hierarchical decision making

Which of the following would NOT be used as an input for an information system?

digital dashboard

Which of the following are key corporate assets?

intellectual property, core competencies, and financial and human assets

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?

knowledge workers

In a hierarchical organization, the upper levels consist of

managerial, professional, and technical employees

The average number of tickets sold daily online is an example of

meaningful information

Disciplines that contribute to the technical approach to information systems are

operations research, management science, and computer science.

Converting raw data into a more meaningful form is called

processing

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?

survival

Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having

inadequate information.

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective?

survival

An example of a social complementary asset is

technology and service firms in adjacent markets

A managerial element in the UPS tracking system described in the chapter is

the decision to use automation

Output

transfers processed information to the people who will use it or to the activities for which it will be used

The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called

management information systems

Which field of study focuses on both a behavioral and technical understanding of information systems?

management information systems

The hardware and software used to transfer data in an organization is called

networking and telecommunications technology

Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?

new products and services

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?

operational excellence

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is

operational management.

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is

operations research.

The three principal levels within a business organization hierarchy are

senior management, middle management, and operational management.

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?

social

Data management technology consists of the

software governing the organization of data on physical storage media

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?

survival

The use of information systems because of necessity describes the business objective of

survival

Thomas Friedman's declaration that the world was now "flat" meant that

the Internet has reduced the economic advantages of developed countries

The costs for firms operating on a global scale have been drastically reduced by

the Internet.

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called

the information value chain

Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?

the specification of procedures for identifying packages with sender and recipient information

An example of a business using information systems for customer and supplier intimacy is

) the Mandarin Oriental hotel's customer-preference tracking system

An example of raw data from a national chain of automobile stores would be

1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky

Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's

IT infrastructure

Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below?

Use IT to achieve customer intimacy.

An example of a business using information systems to attain operational excellence is

Wal-Mart's RetailLink system

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to

adopt a new business model

Which of the following are environmental actors that interact with an organization and its information systems?

all of the above

The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its

culture

Psychologists study information systems with an eye to understanding

how human decision makers perceive and use formal information.

Sociologists study information systems with an eye to understanding

how systems affect individuals, groups, and organizations.

Which main business function is responsible for maintaining employee records?

human resources

The six important business objectives of information technology are new products, services and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and

improved decision making

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of

improved decision making

The three activities in an information system that produce the information organizations use to control operations are

input, processing, and output

An example of a business using information systems to create new products and services is

Apple Inc.'s iPod

Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?

competitive advantage

Maintaining the organization's financial records is a central purpose of which main business function?

finance and accounting