Practice Test Questions for ITC 761

Producing a bill of materials is a business process in which of the following functional areas?

finance and accounting

Which of the following is an example of a divisionalized bureaucracy?

fortune 500 firm

Which of the following is an example of a cross-functional business process?

fulfilling a customer order

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 of the following is NOT a business benefit of collaboration?

improved compliance with government regulations

Which of the following statements about collaboration is NOT true?

in business, a collaboration can last as little as a few minutes

In network economics, the value of a commercial software vendor's s software products:

increases as more people use them

In network economics, the value of a commercial software vendor's software products:

increases as more people use them

Why does Amazon need to worry about competitors in online shopping?

internet technologies are universal, and therefore usable by all companies

Which of the following best describes the effect that new information technology has on society?

it has a ripple effect, raising new ethical, social, and political issues

All of the following statements are true about information technology's impact on business firms EXCEPT:

it helps firms expand in size

What is NOT a feature of the General Data Protection Regulation (GDPR)?

it prevents firms from using cookies

Which of the following statements about the technical view of organizations is NOT true?

it sees the firm as being infinitely malleable

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstore illustrates which of the following strategies?

low-cost leadership

Order fulfillment involves all of the following business processes EXCEPT:

making customers aware of the product

The internet increases the bargaining power of customers by:

making information available to everyone

Firms use a WHAT strategy to provide a specialized product or service for a narrow target market better than competitors

market niche

The total number of food items with storage temperature problems is an example of which of the following?

meaningful information

According to the WHAT definition of organizations, an organization is seen as a means by which capital and labor are transformed by the organization into outputs to the environment

microeconomic

The term Management Information Systems refers to a specific category of information systems serving?

middle management functions

Which of the following marketplace forces would be of least concern to a manufacturer of deep-sea oil rigs?

new market entrants

Which of the following is an example of raw data from an automobile manufacturer?

one Subaru Outback sold July 27,20176 in Mohegan Lake, New York for $24,000

The NAI is an industry association formed to help with which of the following?

online privacy issues

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which oft he following business objectives is this information intended to support?

operational excellence

In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business?

operational management

In the WHAT model of informed consent, personal information cannot be collected until the consumer specifically agrees that his or her data can be collected

opt-in

WHAT grants the owner exclusive ownership of the ideas behind an invention for 20 years

patent law

All of the following laws apply to actions by the federal government EXCEPT the:

privacy act

Which of the following restricts the information that the US federal government can collect about an individual and regulates what it can do with the information?

privacy act

Which of the following constitutes a managerial element in the UPS tracking system described in the chapter?

providing package status reports to customers

Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case?

reduced delays in document management

WHAT are not held liable for the messages they transmit

regulated common carriers

The WHAT function is responsible for making sure customers are aware of the company's products

sales and marketing

All of the following are examples of environmental factors in an information system EXCEPT:

sales force

In a hierarchical organization, the upper level consists of:

senior management

Which level of the organization is an ESS specifically designed to serve?

senior management

The three principal levels within a business organization hierarchy are:

senior management, middle management, and operational management

Which ethical rule states that if an action cannot be taken repeatedly, it is not right to take at all?

slippery-slope rule

Which of the following statements about spam is NOT true?

spamming is more tightly regulated in the United States than in Europe

Walmart's continuous replenishment system is an example of a firm using information systems to:

strengthen ties to its customers

Which type of system integrates supplier, manufacturer, distributor and customer logistics processes?

supply chain management system

The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as WHAT activities

support

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?

survival

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?x

survival

The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as:

switching costs

When two organizations pool markets and expertise that result in lower costs and generate profits, they are creating:

synergies

All of the following are capabilities of enterprise social networking tools EXCEPT:

the ability to establish groups and team workspaces

Which of the following is NOT an example of the moral dimensions of the information age identified in the text?

the emergence of giant tech firms that dominate their markets

The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional value, is referred to as:

the law of diminishing returns

All of the following are reasons for the increased business focus on collaboration and teamwork, EXCEPT for:

the need for more efficient work hierarchies

Which of the following best describes the primary reason for implementing a new information system, from a business perspective?

the system will create new value for the firm, beyond its costs

Which of the following tools would you use to evaluate and choose a collaboration tool for your organization?

the time and space collaboration and social tool matrix

Which of the following is the greatest obstacle in enabling collaboration between employees at different distant corporate location?

time zones

Which of the following is the greatest obstacle in enabling collaboration between employees at different, distant corporate locations?

time zones

Which of the following statements about digital firms is NOT true?

today most firms are fully digital

All of the following are examples of business intelligence systems EXCEPT a system that:

tracts the flows of materials in a factory

The FIP principle of Notice/Awareness states that:

websites must disclose their information practices before collecting data

According to agency theory, the firm is viewed as a(n):

"nexus of contracts" among self-interested individuals

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

1, 2, and 3

How many service jobs move offshore to lower-wage countries in a typical year?

300,000

Which of the following were involved in what has been called the patent trial of the century?

Apple and Samsung

The WHAT helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes

CKO

The GDPR created a WHAT framework in order to enable US businesses to legally use personal data from EU countries

COPPA

Which of the following types of system would you use to manage relationships with your customers?

CRM (customer relationship management)

Non-typical business problems with causes and effects that are rapidly changing are typically handled by which of the following types of information systems?

DSS

Which of the following types of systems typically use a digital dashboard to display an array of charts and graphs of a business's key performance indicators?

ESS

Which of the following would you use to forecast trends in your supplier's industry that could affect your firm over the next five years?

ESS

A relocation control system that reports summaries on the total moving, house hunting, and home financing costs for employees in all company divisions falls into which of the following categories?

KMS

Which of the following would you use in order to determine which of your suppliers has the best and worst records for meeting your production schedules?

MIS

Which of the following statements is NOT true?

Most PCs manufactured in China use microprocessor chips manufactured in Korea

Which of the following is a data analysis technology that finds hidden connections between data in disparate sources?

NORA

To monitor the status of internal operations and the firm's relations with the external environment, managers need which of the following types of systems?

TPS

Which of the following statements about network economics is NOT true?

Uber is an example of a business model that is based on the principle of network economics

Which of the following resulted in a Christmas Eve outage for millions of Netflix customers?

a failure of Amazon's cloud computing service

According to the chapter case, which of the following statements about Cisco's IX5000 telepresence system is NOT true?

a six-seat IX500 system costs about $500,000

How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2017?

about $1 trillion

WHAT is a feature of social institutions that means mechanisms are in place to determine responsibility for an action

accountability

Information systems enhance core competencies by:

allowing operational employees to interact with management

Which of the following is a private corporate network extended to authorized users outside the organization?

an extranet

You have been hired by BizCom, a business communications consultancy that services many clients in different industries throughout the United States, to help it improve its profit margin. BizCom provides customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 50 consultants, all of whom are located in its central headquarters in Alexandria, Virginia. What type of system do you recommend that BizCom install to improve its business processes and increase its profit margin?

an extranet, to enable quick collaboration over the internet, minimize the time spent

In WHAT, raw data is systematically acquired and transformed during various stages that add value to that information

an information value chain

Advertisers use WHAT in order to display more relevant ads based on a user's search and browsing history

behavioral targeting

Which of the following substitute products would be most concern for a cable TV distributor?

broadcast TV

Which of the following statements about business processes is NOT true?

business processes are typically unaffected by changes in information systems

The interaction between information technology and organizations is influenced:

by the development of new information technologies

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

centralized hierarchical decision making

Which of the following is an example of an organizational complementary assets?

choosing the appropriate business model

Which of the following is NOT one of the IT innovations changing the world of business today?

cloud computing

Which of the following is NOT a US federal law affecting private institutions?

computer matching and privacy protection act

A(n) WHAT is an activity for which a firm is a world-class leader

core competency

Which of the following is the most common reason that business systems fail?

data quality

Digital media differs from a physical book in all of the following ways EXCEPT:

ease of establishing uniqueness

What is the most important function of an enterprise application?

enabling business functions and departments to share information

The Network Advertising initiative is an industry association that:

encourages self-regulation to develop a set of privacy guidelines for its members

A(n) WHAT 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

enterprise