Management Exam 1 (chapter reviews)
Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services. B) The system will create new value for the firm, beyond its costs. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web.
B) The system will create new value for the firm, beyond its costs.
Which of the following statements about digital firms is not true? A) In digital firms, time shifting and space shifting are the norm. B) Today, most firms are fully digital. C) Digital firms offer extraordinary opportunities for flexible global organization and management. D) Digital firms sense and respond to their environments more rapidly than traditional firms. E) Digital firms have more flexibility to survive in turbulent times.
B) Today, most firms are fully digital.
In ________, digital technology and the Internet are used to execute the major business processes in the enterprise. A) e-commerce B) e-business C) enterprise applications D) MIS E) SCM
B) e-business
A(n) ________ system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business. A) transaction processing B) enterprise C) automatic reporting D) management information E) knowledge management
B) enterprise
Sociologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.
A) how systems affect individuals, groups, and organizations.
In a hierarchical business organization, the upper level consists of: A) scientists. B) senior management. C) service workers. D) data workers. E) knowledge workers.
B) senior management.
Which of the following work at the same level as middle management?? A) Operational managers B) Production workers C) Knowledge workers D) Data workers E) Service workers
C) Knowledge workers
Which of the following is a global network that uses universal standards to connect millions of different networks around the world? A) An extranet B) The World Wide Web C) The Internet D) An intranet E) Verizon
C) The Internet
Which of the following would a manager use to determine the impact on production schedule if sales doubled in the next quarter? A) MIS B) TPS C) ESS D) DSS E) CRM
D) DSS
) Journalist Thomas Friedman's description of the world as "flat" refers to the: A) reduction of economic and cultural advantages of developed countries. B) use of social media for instantaneous communication. C) reduction in travel times and the ubiquity of global exchange and travel. D) flattened hierarchies in digital firms. E) increased use of global currencies.
A) reduction of economic and cultural advantages of developed countries
E-government is intended to do all of the following except: A) transform a business firm's relationships with its customers. B) improve delivery of government services. C) make government operations more efficient. D) empower citizens by giving them easier access to information. E) provide the ability for citizens to network electronically with other citizens.
A) transform a business firm's relationships with its customers.
Which of the following systems integrates supplier, manufacturer, distributor, and customer logistics processes? A) Collaborative distribution system B) Supply chain management system C) Reverse logistics system D) Enterprise planning system E) Transaction processing system
B) Supply chain management system
Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format on the Internet? A) HTML B) The World Wide Web C) E-mail D) An extranet E) FTP
B) The World Wide Web
Which of the following can typically access a firm's intranet? A) The general public B) The firm's employees C) The firm's customers D) The firm's suppliers E) The firm's outside contractors
B) The firm's employees
Psychologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.
B) how human decision makers perceive and use formal information.
Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) inputting.
B) processing.
The three principal levels within a business organization hierarchy are: A) senior management, operational management, and service workers. B) senior management, middle management, and operational management. C) senior management, operational management, and information systems. D) senior management, middle management, and service workers. E) senior management, data workers, and service workers.
B) senior management, middle management, and operational management.
Which of the following is a private corporate network extended to authorized users outside the organization? A) An intranet B) The World Wide Web C) The Internet D) An extranet E) FTP
D) An extranet
Which of the following systems is used to focus on non-routine business problems that are unique and rapidly changing? A) MIS B) TPS C) ESS D) DSS E) KMS
D) DSS
Which of the following systems is designed to automate business processes across the firm, spanning functional areas and organizational levels? A) DSS B) MIS C) CRM D) Enterprise applications E) SCM
D) Enterprise applications
Which of the following is a question that might be answered by an MIS system? A) What new products should our company create? B) What is the effect on return on investment of the changing costs of supplies? C) What is the best trucking route for product delivery? D) How do actual sales for each quarter compare to projected sales? E) What are employment levels in the industry likely to be in five years?
D) How do actual sales for each quarter compare to projected sales?
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? A) Middle management B) Service workers C) Production management D) Operational management E) Knowledge workers
D) Operational management
Which level of the organization is an ESS specifically designed to serve? A) Operational management B) End-users C) Middle management D) Senior management E) Knowledge workers
D) Senior management
Which of the following is not a key organizational complementary asset? A) Supportive business culture that values efficiency and effectiveness. B) Efficient business processes C) Incentive systems that monitor and reward individual innovation D) A strong information systems development team E) Decentralization of authority
C) Incentive systems that monitor and reward individual innovation
Which of the following systems would you use to consolidate the relevant knowledge and experience in the firm and make it available to improve business processes and management decision making? A) TPS B) An extranet C) KMS D) CRM E) MIS
C) KMS
Which of the following systems would an organization use to compare total annual sales for a specific product to a planned target? A) ESS B) TPS C) MIS D) DSS E) CRM
C) MIS
The total number of food items with storage temperature problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing
C) Meaningful information
Which of the following is an example of raw data from an automobile manufacturer? A) An average of 120 Subarus sold daily in New York in 2020 B) 1,200 Subaru Outbacks sold during the first quarter 2020 in New York C) One Subaru Outback sold July 27, 2020 in Mohegan Lake, New York for $24,000 D) Annual sales of Subaru Outbacks increased 5.3 percent E) An average sale price of $25,500 for all Subaru Outbacks sold during July 2020 in Mohegan Lake, New York
C) One Subaru Outback sold July 27, 2020 in Mohegan Lake, New York for $24,000
Which of the following would be used as an input for an information system? A) Sales by region report B) Sales for stores in a region C) Product ID and price D) Year to date sales of products E) Marketing costs report for each product
C) Product ID and price
A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective?
C) Survival
Managers use which of the following systems to monitor the status of internal operations and the firm's relations with the external environment? A) DSS B) KWS C) TPS D) MIS E) BIS
C) TPS
Which of the following is not a true statement with respect to business processes? A) Every business can be seen as a collection of business processes. B) Analyzing business processes can enable you to achieve a clear understanding of how a business actually works. C) The performance of a business firm typically is not related to its business processes. D) Business processes can be either a source of competitive strength or a liability. E) A business process may involve a unique way in which work, information, and knowledge are coordinated within an organization.
C) The performance of a business firm typically is not related to its business processes.
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: A) data management environment. B) networked environment. C) information technology (IT) infrastructure. D) information system. E) culture.
C) information technology (IT) infrastructure.
Raw data collected at checkout counters in a grocery store is an example of: A) output. B) processing. C) feedback. D) input. E) information systems.
D) input.
Order fulfillment involves all of the following business processes except: A) checking the customer's credit. B) assembling the product. C) submitting the order. D) making customers aware of the product. E) shipping the product.
D) making customers aware of the product.
All of the following are characteristics of twenty-first digital firms except: A) use of social media to enter into conversations with customers. B) greater awareness of changes in technology, consumer attitudes, and culture. C) better understanding of the importance of information technology in creating and managing the firm. D) greater emphasis on hierarchy and structure. E) more emphasis on decision-making based on data and analysis.
D) greater emphasis on hierarchy and structure.
All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) ability to reliably obtain price and quality information worldwide. C) increased ability to find low-cost suppliers. D) increases in transaction costs. E) ability of firms to replicate their business models in multiple countries without having to redesign expensive fixed-cost information systems infrastructure.
D) increases in transaction costs.
The ________ function is responsible for making sure customers are aware of the company's products. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) distribution and logistics
D) sales and marketing
Output: A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transforms raw data into processed information. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) is a stream of raw facts representing events occurring in organizations or the physical environment.
D) transfers processed information to the people who will use it or to the activities for which it will be used.
Which of the following 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 A) 1 only B) 1 and 2 C) 2 and 3 D) 1 and 3 E) 1, 2, and 3
E) 1, 2, and 3
Which of the following systems would you use to forecast the return on investment if your firm planned to switch to a new supplier that offered products at a lower cost? A) ESS B) TPS C) MIS D) CRM E) DSS
E) DSS
Which of the following statements best describes organizational culture? A) It encompasses the sum of beliefs and assumptions by all members. B) It enables the organization to transcend the different levels and specialties of its employees. C) It reflects the senior management's perspective on the organization and goals. D) It allows a company to achieve greater operational efficiency. E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
Which of the following 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? A) Computer literacy B) Information systems architecture C) Business processes D) Information technology infrastructure E) Management information systems
E) Management information systems
Data management technology consists of which of the following? A) Physical hardware and media used by an organization to store data B) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system C) Two or more computers linked together to share data or resources D) Hardware and software used to transfer data E) Software governing the organization of data on physical storage media
E) Software governing the organization of data on physical storage media
A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Operational excellence B) Improved decision making C) Competitive advantage D) Customer intimacy E) Survival
E) Survival
All of the following are new technology-related innovations in MIS except: A) cloud computing. B) big data. C) IoT. D) the mobile digital platform. E) co-creation of business value.
E) co-creation of business value.
The three activities in an information system that produce the information organizations use to make decisions, control operations, analyze problems, and create new products are: A) information, research, and analysis. B) input, output, and feedback. C) data, information, and analysis. D) data analysis, processing, and feedback. E) input, processing, and output.
E) input, processing, and output.
A DSS only uses information from external sources.
FALSE
A business process must be tied to just one specific functional area.
FALSE
All business processes are formally documented by an organization.
FALSE
Checking for quality is a business process handled by the marketing function.
FALSE
Cross-functional systems are being phased out in favor of systems that support business processes within a single functional group, such as human resources.
FALSE
Data is information that has been shaped into a form that is meaningful to human beings.
FALSE
In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled.
FALSE
Information systems literacy focuses primarily on knowledge of information technology.
FALSE
Intranets are used by organization to coordinate their activities with other firms for making purchases, collaborating on design, and other interorganizational work.
FALSE
Knowledge workers make long-range strategic decisions about products and services.
FALSE
Managers rely on TPS for nonroutine decision making.
FALSE
Middle managers make long-range strategic decisions about the firm's products and services
FALSE
Most TPS use sophisticated mathematical models or statistical techniques
FALSE
Operational managers use ESS primarily to solve specific problems
FALSE
Social complementary assets are investments made by a firm to optimize its return on information technology assets.
FALSE
There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology.
FALSE
Transaction-level information is essential for operational management to plan future production levels.
FALSE
You would use a TPS to help determine if your business should introduce a new product line.
FALSE
Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives.
TRUE
Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments.
TRUE
Managers can use DSS to make decisions about problems that are unusual and not easily specified in advance.
TRUE
Outsourcing has accelerated the development of new information systems in the United States.
TRUE
The behavioral approach to information systems focuses on analyzing the social, psychological, and economic impacts of systems rather than the technical aspects.
TRUE
The three main dimensions of information systems are management, organizations, and information technology.
TRUE
A DSS enables business analysts to use sophisticated analytics and models to analyze data.
TRUE
Which of the following systems would a firm use to manage relationships with its customers? A) CRM B) MIS C) CLE D) CLU E) KMS
A) CRM
To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) Customer intimacy B) Survival C) New business models D) Supplier intimacy E) New services
A) Customer intimacy
Which of the following systems would you use to determine which trends in your supplier's industry could affect your firm the most during the next five years? A) ESS B) TPS C) MIS D) DSS E) KMS
A) ESS
Which of the following is an example of an organizational complementary asset? A) Efficient business processes B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management
A) Efficient business processes
You have been hired by BizCom to help it improve its business processes and financial performance. BizCom is a business communications consulting firm that services many clients in different industries throughout the United States. BizCom provides customized written recommendations about how to best use a client's existing resources to improve the client's internal communications. The company has approximately 50 consultants, all of whom are located in its central headquarters in Alexandria, Virginia. Which of the following would you recommend that BizCom install? A) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with its clients, and minimize the amount of paperwork needed B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) KMS, to minimize redundant work on similar clients D) MIS, to produce reports on the firm's operations E) TPS, to help manage all daily activities and transactions
A) Extranet, to enable quick collaboration over the Internet, minimize the time spent
As discussed in the chapter-opening case, AWM Smart Shelf can help brands and retailers achieve which of the following? A) Increased customer intimacy B) Survival C) Improved employee morale D) Development of new products E) Increased supplier intimacy
A) Increased customer intimacy
An ESS supports which of the following? A) Long-range planning activities of senior management B) Knowledge and data workers in an organization C) Decision making and administrative activities of middle managers D) Day-to-day processes of production E) Transactional needs of the organization
A) Long-range planning activities of senior management
Which of the following makes long-range strategic decisions about products and services as well as ensures financial performance of the firm? A) Senior management B) Middle management C) Production workers D) Operational management E) Knowledge workers
A) Senior management
A(n) ________ is typically a major source of data for other systems. A) TPS B) MIS C) ESS D) DSS E) KMS
A) TPS
Which of the following is an example of a social complementary asset? A) Technology and service firms in adjacent markets to assist implementation B) Teamwork and collaborative work environments C) Distributed decision-making rights D) Incentives for management innovation E) A strong IS development team
A) Technology and service firms in adjacent markets to assist implementation
The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of an organization's members is called its: A) culture. B) environment. C) atmosphere. D) business process. E) mission.
A) culture.
Using the Internet to buy or sell goods is called: A) e-commerce. B) e-business. C) an intranet. D) an extranet. E) e-government.
A) e-commerce.
Detailed, programmed instructions that control computer hardware components in an information system are known as computer software.
TRUE
Enterprise systems are also known as which of the following? A) SCM systems B) ERP systems C) ESS D) MIS E) DSS
B) ERP systems
Which of the following systems incorporates data from external events as well as summarized information from internal business intelligence systems? A) TPS B) ESS C) MIS D) DSS E) SCM
B) ESS
Which of the following could be used to enable different firms to work collaboratively on a product? A) Intranet B) Extranet C) TPS D) ESS E) DSS
B) Extranet
Maintaining the organization's financial records is a central purpose of which main business function? A) Manufacturing and accounting B) Finance and accounting C) Sales and manufacturing D) Finance and sales E) Human resources
B) Finance and accounting
What is the most important benefit of an enterprise application? A) Enabling the creation of business intelligence B) Helping businesses become more flexible and productive by enabling business functions and departments to share information and coordinate their business processes more closely C) Providing answers to nonroutine questions D) Enabling cost-effective e-business processes E) Enabling managers to make better decisions
B) Helping businesses become more flexible and productive by enabling business functions and departments to share information and coordinate their business processes more closely
Which of the following systems is especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance? A) MIS B) TPS C) DSS D) KMS E) SCM
C) DSS
You manage the IT department for a firm that manages regional farmer's markets. You need to set up an inexpensive system that allows local vendors to see real-time statistics about which of the firm's markets have vendor openings on which days. Which of the following systems would most efficiently provide a solution? A) CRM B) Enterprise system C) Extranet D) Intranet E) MIS
C) Extranet
Which of the following is an example of a cross-functional business process? A) Identifying customers B) Shipping a product C) Fulfilling a customer order D) Hiring employees E) Paying creditors
C) Fulfilling a customer order
Which of the following is not one of the six strategic business objectives that businesses are seeking to achieve when they invest in information systems? A) Operational excellence B) Improved decision making C) Improved community relations D) Competitive advantage E) Survival
C) Improved community relations
Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
TRUE
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
TRUE
A firm that invests in a strong IS development team is making an investment in organizational complementary assets.
TRUE
An organization's MIS and DSS supply an ESS with summarized information.
TRUE
Creating a marketing plan is an example of a business process.
TRUE
Creative work driven by new knowledge and information is a significant part of management responsibility.
TRUE