Chapter 2

A business is a formal or informal organization created to sell services or products.

FALSE

A business process is a single step taken in a set of logically related activities that accomplish a specific business task.

FALSE

A hotel reservation system is a typical example of a management information system.

FALSE

Deciding whether to introduce a new product line is the responsibility of an operational manager.

FALSE

ESSs are designed primarily to solve specific problems.

FALSE

ESSs are designed to serve the middle management of the organization.

FALSE

Enterprise systems do not utilize order transaction data.

FALSE

Management information systems primarily support nonroutine decision making.

FALSE

Most MISs use sophisticated mathematical models or statistical techniques.

FALSE

Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.

FALSE

Senior management is responsible for directing the day-to-day activities of the business.

FALSE

Systems analysts are highly trained technical specialists who write the software instructions for computers.

FALSE

The decision to grant credit to a customer is normally made by a senior manager.

FALSE

Transaction processing systems are most commonly encountered at the senior management level of an organization.

FALSE

A cross-functional business process requires information to be shared between different business departments.

TRUE

Decision-support systems often use information from external sources.

TRUE

ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.

TRUE

End users are representatives of departments outside of the information systems group for whom applications are developed.

TRUE

Information supplied by an enterprise system is structured around cross-functional business processes.

TRUE

Knowledge management systems and customer relationship management systems are both types of enterprise applications.

TRUE

Supply chain management systems are more externally oriented than enterprise systems.

TRUE

TPS (Transaction Processing System) help managers monitor the firm's relations with the external environment.

TRUE

Teams are formal business groups that are created to accomplish a specific task.

TRUE

The primary goal of social business is to deepen interactions with employees and customers.

TRUE

Transaction processing systems are the basic business systems that serve the operational level of the organization.

TRUE

The ________ is responsible for ensuring that the company complies with existing data privacy laws. A) CPO B) CKO C) CIO D) CIP

a) CPO

________ systems provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. A) CRM B) MIS C) ESS D) CPS

a) CRM

From your reading of the case study discussing TELUS's employee learning initiatives, which of the following statements best expresses their experience? A) Converting the learning environment from formal classes to a collaborative learning can achieve significant reductions in an organization's learning budget. B) Employees learn more rapidly in a well-designed, structured environment. C) Informal, one-to-one learning sessions impart greater knowledge, more quickly, than group learning technologies. D) Enterprise information systems of all types, including educational systems, represent significant investments and risk to the organization's budget.

a) Converting the learning environment from formal classes to a collaborative learning can achieve significant reductions in an organization's learning budget

Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years? A) ESS B) TPS C) MIS D) DSS

a) ESS

You have been hired by Inspiration Inc., to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the U.S. The end products of the company are 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 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin? A) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, 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, for minimizing redundant work on similar clients D) Video conferencing system, for improving collaboration

a) Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed

In a business environment, the focus of collaboration is to: A) accomplish the task at hand. B) provide a sense of community. C) foster better communication. D) prevent miscommunication.

a) accomplish the task at hand.

Interaction jobs are those jobs which: A) are in the service sector and require close coordination and collaboration. B) involve knowledge that can't be put into an information system. C) are performed typically by operational-level employees. D) require intense levels of interaction with clients.

a) are in the service sector and require close coordination and collaboration

Employees that assist with paperwork at all levels of the firm are called: A) data workers. B) knowledge workers. C) operational management. D) service workers.

a) data workers

Buying or selling goods over the Internet is called: A) e-commerce. B) e-business. C) an intranet. D) an extranet.

a) e-commerce

Executive support systems are information systems that support the: 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.

a) long-range planning activities of senior management

These systems are designed to summarize and report on the company's basic operations. A) Management information systems B) Decision support systems C) Executive information systems D) Transaction processing systems

a) management information systems (MIS)

Key forces in a business's immediate environment include: A) regulations. B) technology. C) economy. D) politics.

a) regulations

________ technology allows a videoconference participant to give the appearance of being present at a location other than his or her true physical location. A) Telepresence B) Virtual reality C) Screen sharing D) Mind mapping

a) telepresence

Second Life is an example of a: A) virtual world. B) wiki. C) social networking site. D) mind mapping tool.

a) virtual world

Which of the following statements is not true about collaboration in a business setting? A) Collaboration may be a short-lived activity, lasting just a few minutes. B) Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity. C) Meaningful collaboration requires a supportive business firm culture and the right, decentralized structure. D) The evidence of the business benefits of collaboration are largely anecdotal.

b) Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity

Which of the following best describes the type of information systems P&G implemented to maintain competitive advantage, as discussed in the chapter case? A) ESS B) DSS C) TPS D) KMS

b) DSS

What is the most important benefit of an enterprise application? A) Enabling speed of communicating B) Enabling business functions and departments to share information C) Enabling a company to work collaboratively with customers and suppliers D) Enabling cost-effective, e-business processes

b) Enabling business functions and departments to share information

________ systems integrate and share information from suppliers, manufacturers, distributors, and logistics companies. A) Collaborative distribution B) Supply-chain management C) Reverse logistics D) Enterprise planning

b) Supply-chain management

Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A) ESS B) TPS C) MIS D) DSS

b) TPS

You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their client's frequently updated branding and style guides to all of their branches. The guides include multiple image files and text documents. What system will best serve these needs? A) A wiki B) An extranet with KMS capabilities C) A TPS with KMS capabilities D) A virtual meeting system

b) an extranet with KMS capabilities

DSS and MIS are also referred to as ________ systems. A) business information B) business intelligence C) executive support D) business model

b) business intelligence

The use of digital technology and the Internet to execute the major business processes in the enterprise is called: A) e-commerce. B) e-business. C) enterprise applications. D) MIS.

b) e-business

A(n) ________ 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 system B) enterprise system C) automatic reporting system D) management information system

b) enterprise system

A firm depends heavily on its ________ to supply capital, labor, customers, new technology, services and products, stable markets and legal systems, and general educational resources. A) HR department B) environment C) culture D) knowledge workers

b) environment

Which of the following types of systems could be used to enable different firms to work collaboratively on a product? A) Intranet B) Extranet C) KMS D) CRM

b) extranet

The three principal levels of hierarchies within a business organization are: A) management, knowledge workers, and service workers. B) senior management, middle management, and operational management. C) management, data workers, and operational management. D) senior management, operational management, and workers.

b) senior management, middle management, and operational management

Each of the following is a quality of business organization and structure that serves to enable productive collaboration, except: A) open culture. B) strong hierarchy. C) decentralized structure. D) breadth of collaboration.

b) strong hierarchy

A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CIT

c) CIO

Which of the following best describes the goals of the Vail Ski Resort's implementation of new information systems, as described in the chapter case? A) Improve speed of gondolas in order to increase number of customers. B) Improve slope feedback in order to better manage customer use and slope quality. C) Improve quality and breadth of products and services to engage more customers. D) Increase customer data in order to better market products and services

c) Improve quality and breadth of products and services to engage more customers

Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time? A) ESS B) TPS C) MIS D) DSS

c) MIS

Development and support services for a firm's business systems are provided by: A) IT educational services. B) IT management services. C) Application software services. D) IT standards services.

c) application software services

These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance. A) Management information systems B) Transaction processing systems C) Decision support systems D) Knowledge management systems

c) decision support systems (DSS)

Which of the following collaboration tools would be appropriate for participants in separate locations who need to collaborate synchronously? A) Blog B) Team room C) Electronic meeting software D) Group calendar

c) electronic meeting software

You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics, such as views and click-throughs, about their current banner ads. Which type of system will most efficiently provide a solution? A) CRM B) Enterprise system C) Extranet D) Intranet

c) extranet

Which of the following is a cross-functional business process? A) Hiring an employee B) Identifying a customer C) Fulfilling a customer order D) Creating an invoice

c) fulfilling a customer order

Engineers and architects are examples of: A) senior management. B) production workers. C) knowledge workers. D) middle management.

c) knowledge workers

Checking for product quality is an activity associated with the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing

c) manufacturing and production

The goal of social commerce applications is to: A) connect through personal and business profiles. B) use social media to connect with customers. C) share opinions about purchasing products or services. D) upload and share business documents.

c) share opinions about purchasing products or services

Instant messaging, videoconferencing, and shared screens are all examples of ________ collaboration tools. A) bimodal B) colocated C) synchronous D) spontaneous

c) synchronous

The principal liaison between the information systems groups and the rest of the organization is a(n): A) programmer. B) information systems manager. C) systems analyst. D) CIO.

c) systems analyst

Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records? A) ESS B) TPS C) MIS D) DSS

d) DSS

Policies that determine which information technology will be used, when, and how, are provided by: A) IT educational services. B) IT management services. C) Application software services. D) IT standards services.

d) IT standards services

Which type of information system would an intranet be most easily adapted to? A) CRM B) MIS C) TPS D) KMS

d) KMS

What is the primary benefit of using information services to enhance business processes? A) Improve collaboration B) Speed up information sharing C) Improve products and services D) Automate manual processes

d) automate manual processes

________ support making decisions that are unique, rapidly changing, and not easily specified in advance. A) Management information systems B) Transaction processing systems C) Executive support systems D) Decision support systems

d) decision support systems (DSS)

Which of the following is an example of a key force in a firm's broader, less immediate environment? A) Stockholders B) Regulations C) Shipping firms D) Economic trends

d) economic trends

These systems are designed to support organization-wide process coordination and integration. A) Decision support systems B) Management information systems C) CRM D) Enterprise applications

d) enterprise applications

Supply chain management systems are one type of ________ because they automate the flow of information across company boundaries. A) KMS B) enterprise system C) MIS D) interorganizational system

d) interorganizational system

The five basic entities that make up any business are suppliers, customers, employees, products and services, and: A) its environment. B) manufacturing and production. C) sales and marketing. D) invoices and payments.

d) invoices and payments

A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of: A) knowledge management systems. B) transaction support systems. C) executive support systems. D) management information systems.

d) management information systems (MIS)

The term "management information systems" designates a specific category of information systems serving: A) integrated data processing throughout the firm. B) transaction process reporting. C) senior management. D) middle management functions.

d) middle management functions

Promoting the organization's products or services is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing

d) sales and marketing

What analytical framework discussed in the chapter helps understand and evaluate the benefits and uses of collaboration tools? A) Cost/use matrix B) Task/time matrix C) Space/cost matrix D) Time/space matrix

d) time/space matrix

A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n): A) executive support system. B) management-level system. C) decision support system. D) transaction-processing system.

d) transaction-procession system (TPS)

A wiki is a type of collaborative: A) social network. B) blogging. C) virtual world. D) web site.

d) web site