CIS Chapter 1 - Chapter 5 Questions
34) The total number of food items with storage temperatures problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing
C) Meaningful information
67) SVF uses which of the following collaboration tools? A) EMC Documentum eRoom B) IBM Notes C) Microsoft SharePoint Online D) Microsoft Yammer E) Salesforce Chatter
C) Microsoft SharePoint Online
90) Hardware and software acquisition costs account for about ________ percent of TCO. A) 20 B) 40 C) 50 D) 75 E) 90
A) 20
23) Which of the following systems would you expect to deliver integrated, personalized business content through a web-based interface? A) TPS B) ESS C) MIS D) DSS E) SCM
B) ESS
89) Which of the following refers to the ability of a computer, product, or system to expand to serve a larger number of users without breaking down? A) Modality B) Scalability C) Expandability D) Disintermediation E) Customizability
B) Scalability
35) Which type of system 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
11) If your main supplier was late in delivering goods, which type of system would you use to update your production schedule? A) ESS B) TPS C) MIS D) DSS E) BIS
B) TPS
60) 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? A) HTML B) The World Wide Web C) E-mail D) An extranet E) FTP
B) The World Wide Web
97) 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.
33) The four major competitive strategies are: A) low-cost leadership, substitute products and services, customers; and suppliers. B) low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy. C) new market entrants, substitute products and services, customers, and suppliers. D) low-cost leadership, new market entrants, product differentiation, and focus on market niche. E) customers, suppliers, new market entrants, and substitute products.
B) low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.
38) In a hierarchical organization, the upper level consists of: A) scientists. B) senior management. C) professional employees. D) data workers. E) knowledge workers.
B) senior management.
34) A SAN is a ________ network. A) server area B) storage area C) scalable architecture D) service-oriented architecture E) software arrangement
B) storage area
96) Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered: A) organizational adjustments. B) strategic transitions. C) systems alterations. D) business goal transitions. E) sociotechnical transitions.
B) strategic transitions.
54) 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 output, is referred to as: A) the point of no return. B) the law of diminishing returns. C) supply and demand. D) network inelasticity. E) virtual economics.
B) the law of diminishing returns.
60) The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage. A) competitive forces B) value chain C) bargaining power D) new entrant E) rivalry
B) value chain
1) Producing a bill of materials is a business process in which of the following functional areas? A) Finance and accounting B) Human resources C) Manufacturing and production D) Research and development E) Sales and marketing
C) Manufacturing and production
37) 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 2016 B) 1,200 Subaru Outbacks sold during the first quarter 2016 in New York C) One Subaru Outback sold July 27, 2016 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 2016 in Mohegan Lake, New York
C) One Subaru Outback sold July 27, 2016 in Mohegan Lake, New York for $24,000
52) Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems? A) Senior executives B) Sales executives C) Production workers D) Operational managers E) Knowledge workers
C) Production workers
59) 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
68) Which of the following is the greatest obstacle in enabling collaboration between employees at different, distant corporate locations? A) Privacy B) Permissions C) Time zones D) Language E) Corporate culture
C) Time zones
46) Which of the following enables a single physical resource (such as a server or a storage device) to appear to the user as multiple logical resources? A) Cloud computing B) Autonomic computing C) Virtualization D) Multicore processing E) Ubiquitous computing
C) Virtualization
10) Today's nanotechnology-produced computer transistors are roughly equivalent in size to: A) the width of a fingernail. B) a human hair. C) a virus. D) an atom. E) a grain of sand.
C) a virus.
68) Linux is: A) primarily concerned with the tasks of end users. B) designed for specific machines and specific microprocessors. C) an example of open-source software. D) especially useful for processing numeric data. E) poorly suited to power fast computers.
C) an example of open-source software.
71) A software program with a graphical user interface for displaying web pages and for accessing the web and other Internet resources is called a web: A) service. B) client. C) browser. D) app. E) beacon.
C) browser.
27) All of the following are competitive forces in Porter's model except: A) suppliers. B) new market entrants. C) external environment. D) customers. E) substitute products.
C) external environment.
37) In environmental scanning, a firm may use information systems to: A) transform inputs into products and services. B) analyze the performance of its intranet. C) identify external events that may affect it. D) keep track of the temperature within its data centers. E) develop a unified organizational culture.
C) identify external events that may affect it.
21) According to agency theory, the firm is viewed as a(n): A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) "nexus of contracts" among self-interested individuals. E) entrepreneurial structure.
D) "nexus of contracts" among self-interested individuals.
10) How much did American businesses spend on information systems hardware, software, and telecommunications equipment in 2015? A) About $100 million B) About $1 billion C) About $100 billion D) About $1 trillion E) About $10 trillion
D) About $1 trillion
49) Firms that allow employees to use their own devices are embracing which of the following? A) Wearable computing B) Mobile consolidation C) Cloud computing D) BYOD E) Self computing
D) BYOD
41) Which of the following is not an example of the mobile digital platform? A) Tablets B) Kindle C) Cell phones D) CRM E) Apps
D) CRM
4) The ________ function is responsible for identifying customers. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) distribution and logistics
D) sales and marketing
59) 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: A) retention costs. B) preservation costs. C) differentiation costs. D) switching costs. E) variation costs.
D) switching costs.
3) 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
45) At what percent of capacity do most servers operate? A) 100% B) 80-90% C) approximately 70 percent D) 40-50% E) 15-20%
E) 15-20%
53) Which of the following is not an example of the consumerization of IT? A) Google Apps B) Dropbox C) Facebook D) Gmail E) Amazon Web Services
E) Amazon Web Services
37) ________ are computers consisting of a circuit board with processors, memory, and network connections that are stored in racks. A) Mainframes B) Rack servers C) Cloud servers D) Hybrid servers E) Blade servers
E) Blade servers
32) The three activities in an information system that produce the information organizations use to control operations 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.
11) Along with capital, ________ is the primary production input that the organization uses to create products and services. A) structure B) culture C) politics D) feedback E) labor
E) labor
18) Client/server computing is a primary example of centralized processing.
FALSE
29) Private business investment in information technology constituted 37 percent of all invested capital in 2015.
TRUE
39) The operating system is used to manage the computer's activities.
TRUE
44) Transaction-level information is essential for operational management to be able to direct the day-to-day operations of the business.
TRUE
51) A DSS uses internal information as well as information from external sources.
TRUE
5) Place the following eras of IT infrastructure evolution in order, from earliest to most recent: 1. Cloud Computing Era; 2. Client/Server; 3. Enterprise Era; 4. Personal Computer; and 5. Mainframe and Minicomputer. A) 5, 2, 3, 4, 1 B) 5, 4, 2, 3, 1 C) 4, 5, 2, 3, 1 D) 5, 4, 2, 1, 3 E) 4, 5, 3, 2, 1
B) 5, 4, 2, 3, 1
15) ________ uses individual atoms and molecules to create computer chips and other devices. A) Virtualization B) Nanotechnology C) Quantum computing D) A minicomputer E) On-demand computing
B) Nanotechnology
9) Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following? A) New products and services B) Operational efficiency C) Survival D) Customer intimacy E) Competitive advantage
B) Operational efficiency
78) A formal contract between customers and their service providers that outlines the specific responsibilities of the service provider and to the customer is called a(n): A) SOA. B) SLA. C) TCO. D) RFQ. E) SaaS.
B) SLA.
72) Which of the following decisions requires knowledge based on collaboration and interaction? A) How long will it take to manufacture this product? B) Should we work with outside vendors on new products and services? C) In which geographical locations are our products garnering the most sales? D) Which product design is the most efficient for the user in terms of energy use? E) How can we produce this product more cheaply?
B) Should we work with outside vendors on new products and services?
14) 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.
44) Which of the following is a recent addition to the mobile digital platform? A) Quantum computing devices B) Wearable computing devices C) Cloud computing devices D) Grid computing devices E) Green computing devices
B) Wearable computing devices
16) The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as: A) IoT. B) big data. C) the mobile digital platform. D) cloud computing. E) business intelligence.
B) big data.
42) 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
31) 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
35) Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors. A) product differentiation B) market niche C) mass customization D) process efficiency E) low-cost leadership
B) market niche
94) Disciplines that contribute to the technical approach to information systems include: A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering. E) economics, sociology, and psychology.
B) operations research, management science, and computer science.
12) The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as organizational: A) culture. B) politics. C) structure. D) environments. E) routines.
B) politics.
36) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis.
B) processing.
54) 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.
27) All of the following are examples of business intelligence systems except a system that: A) summarizes and reports on a company's basic operations. B) tracks the flows of materials in a factory. C) focuses on problems that are unique and rapidly changing. D) compares total annual sales figures for specific products to planned targets. E) addresses nonroutine decisions.
B) tracks the flows of materials in a factory.
74) ________ allows you to communicate with avatars using text messaging. A) A virtual world B) Screen sharing C) Collaborative writing D) A large audience Webinar E) Telepresence
A) A virtual world
70) Running a Java program on a computer requires: A) a Java Virtual Machine to be installed on that computer. B) a Java Virtual Machine to be installed on the server hosting the Java applet. C) a miniature program to be downloaded to the user's computer. D) no specialized software, as Java is platform-independent. E) the Mozilla Firefox browser and no other browsers.
A) a Java Virtual Machine to be installed on that computer.
6) The introduction of the minicomputer: A) allowed computers to be customized to the specific needs of departments or business units. B) strengthened centralized computing. C) offered new, powerful machines at higher prices than mainframes. D) represented the rise of Microsoft. E) was dominated by IBM.
A) allowed computers to be customized to the specific needs of departments or business units.
48) In ________, raw data is systematically acquired and transformed during various stages that add value to that information. A) an information value chain B) the firm value chain C) information processing D) the feedback process E) the dissemination process
A) an information value chain
49) Information systems can be used at the industry level to achieve strategic advantage by: A) building industrywide, IT-supported consortia and symposia. B) raising the bargaining power of suppliers. C) encouraging the entry of new competitors. D) enforcing standards that reduce the differences between competitors. E) decreasing switching costs.
A) building industrywide, IT-supported consortia and symposia.
39) 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: A) culture. B) environment. C) atmosphere. D) business process. E) mission.
A) culture.
26) 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.
50) The marketplace for computer hardware: A) has become increasingly concentrated in top firms. B) has expanded to include a wide variety of start-up and mobile-computing firms. C) has moved significantly to Asian firms. D) has been decimated by mobile and cloud computing. E) has begun moving away from blade servers.
A) has become increasingly concentrated in top firms.
96) 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.
50) In network economics, the value of a commercial software vendor's software products: A) increases as more people use them. B) decreases as more people use them. C) increases due to higher marginal gain in output. D) decreases according to the law of diminishing returns. E) is unrelated to the number of people that use them.
A) increases as more people use them.
20) All of the following statements are true about information technology's impact on business firms except: A) it helps firms expand in size. B) it helps firms lower the cost of market participation. C) it helps reduce internal management costs. D) it helps reduce transaction costs. E) it helps reduce agency costs.
A) it helps firms expand in size.
9) Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy. A) machine B) professional C) divisionalized D) multidivisional E) ad hoc
A) machine
3) According to the ________ 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. A) microeconomic B) macroeconomic C) sociotechnical D) behavioral E) psychological
A) microeconomic
31) A firm can exercise greater control over its suppliers by having: A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers. E) only a single supplier.
A) more suppliers.
54) A(n) ________ is an integrated circuit to which two or more processors have been attached for enhanced performance and reduced power consumption. A) multicore processor B) legacy processor C) scalable processor D) aggregate circuit E) green circuit
A) multicore processor
33) Software that manages the resources of the computer is called: A) operating system software. B) application software. C) data management software. D) network software. E) web services software.
A) operating system software.
77) The practice of contracting custom software development to an outside firm is commonly referred to as: A) outsourcing. B) scaling. C) service-oriented architecture. D) application integration. E) utility computing.
A) outsourcing.
34) Walmart's continuous replenishment system allows it to do all of the following except: A) provide mass customization. B) transmit orders to restock directly to its suppliers. C) keep costs low. D) better meet customer demands. E) fine-tune merchandise availability.
A) provide mass customization.
33) RFID sensor-generated data on stored food items such as storage location is an example of: A) raw input. B) raw output. C) customer and product data. D) sales information. E) information systems.
A) raw input.
75) Prewritten, commercially available sets of software programs that eliminate the need for a firm to write its own software programs for certain functions, are referred to as: A) software packages. B) mashups. C) outsourced software. D) open-source software. E) service level agreements.
A) software packages.
41) Using ________ to enable government relationships with citizens, businesses, and other arms of government is called e-government. A) the Internet and networking technologies B) e-commerce C) e-business D) any computerized technology E) telecommunications
A) the Internet and networking technologies
18) Thomas Friedman's description of the world as "flat" refers to: A) the flattening of economic and cultural advantages of developed countries. B) the use of the Internet and technology for instantaneous communication. C) the reduction in travel times and the ubiquity of global exchange and travel. D) the growth of globalization. E) the increased use of global currencies.
A) the flattening of economic and cultural advantages of developed countries.
5) According to the chapter case, ABB decided to switch from its existing corporate intranet for all of the following reasons except: A) the intranet was too expensive to maintain. B) the intranet was too static and outmoded to meet its current needs. C) the intranet had poor capabilities for searching for information. D) the intranet lacked collaboration tools. E) the intranet was confusing and inefficient.
A) the intranet was too expensive to maintain.
10) Which of the following is an example of a divisionalized bureaucracy? A) Startup firm B) University C) Fortune 500 firm D) Midsize manufacturer E) Consulting firm
C) Fortune 500 firm
56) Which of the following involves practices and technologies to minimize the environmental effects of manufacturing and managing computing devices? A) Capacity planning B) Cloud computing C) Green computing D) Utility computing E) On-demand computing
C) Green computing
17) Which of the following is not one of the current changes taking place in information systems technology? A) Growing business use of big data B) Growth in cloud computing C) Growth in the PC platform D) Emerging mobile digital platform E) Increased usage of data generated by the Internet of Things
C) Growth in the PC platform
92) How would you determine the market demand for your firm's IT services? A) Perform a TCO analysis B) Benchmark your services C) Hold focus groups to assess your services D) Analyze sales returns on key investments E) Perform a stress test
C) Hold focus groups to assess your services
69) Which of the following statements about Linux is not true? A) It plays a major role in the back office running local area networks. B) It is available in free versions downloadable from the Internet. C) It has garnered 20 percent of the server operating system market. D) Linux applications are embedded in cell phones, smartphones, netbooks, and other handheld devices. E) Linux works on all the major hardware platforms.
C) It has garnered 20 percent of the server operating system market.
37) Which of the following 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
55) Personnel who design new products or services for a firm belong to which level of a business hierarchy? A) Middle management B) Production workers C) Knowledge workers D) Data workers E) Service workers
C) Knowledge workers
38) ________ interfaces allow users to employ one or more fingers to manipulate objects on a screen without a mouse or keyboard. A) Hypertouch B) Nanotech C) Multitouch D) Linux E) Scalable
C) Multitouch
11) 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 of the following business objectives is this information intended to support? A) Customer intimacy B) Survival C) Operational excellence D) Improved decision making E) New products and services
C) Operational excellence
95) You are consulting for a natural food products distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step? A) Identify the business ecosystem the distributor is in B) Implement a strategic transition to the new system C) Perform a strategic systems analysis D) Benchmark existing systems E) Set up a strategic transition
C) Perform a strategic systems analysis
74) Which of the following refers to a set of self-contained services that communicate with each other to create a working software application? A) Web services B) EAI software C) SOA D) SOAP E) Prepackaged software
C) SOA
36) Which of the following is not an example of a wearable computing device? A) Smartwatch B) Smart glasses C) Smartphones D) Activity trackers E) Smart ID badges
C) Smartphones
49) 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? A) Managerial B) Governmental C) Social D) Organizational E) Auxiliary
C) Social
43) Which of the following is a competitive force challenging the publishing industry? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Customers' bargaining power E) Suppliers' bargaining power
C) Substitute products or services
70) Which of the following statements about collaboration is not true? A) In business, a collaboration can last as little as a few minutes. B) Business collaboration relies on the formation of teams that are assigned a specific task or goal. C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure. D) One business benefit of collaboration is improved innovation. E) Businesses need special systems for collaboration.
C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure.
96) Which of the following statements is not true? A) In 2016, the median wage for IT/MIS jobs is about $80,000. B) In the next eight years to 2024, IS/MIS will add about 500,000 jobs. C) Out of 114 occupations, MIS is ranked 15th in terms of salaries. D) In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT. E) The growth of online software services and cloud computing is impacting the job prospects for computer programmers.
D) In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT.
20) All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) ability to find low-cost suppliers. D) increases in transaction costs. E) replication of business models in multiple countries.
D) increases in transaction costs.
3) 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.
91) An information systems manager: A) writes software instructions for computers. B) acts as liaison between the information systems group and the rest of the organization. C) translates business problems into information requirements. D) manages data entry staff. E) oversees the company's security policy.
D) manages data entry staff.
39) Which of the following best illustrates the use of information systems to focus on market niche? A) A car manufacturer's Web site that lets you customize the features on the car you are purchasing. B) A restaurant chain analyzing local sales figures to determine which menu items to serve. C) A bookseller selling an e-book reader that reads only the bookseller's books. D) A department store creating specialized products for preferred customers. E) A clothes manufacturer expanding its offerings to new styles.
D) A department store creating specialized products for preferred customers.
12) Approximately what percent of U.S. businesses have some form of remote work program? A) About 15 percent B) About 25 percent C) About 35 percent D) About 60 percent E) About 75 percent
D) About 60 percent
5) Which of the following is not a major feature of organizations that impacts the use of information systems? A) Business processes B) Environments C) Goals D) Agency costs E) Leadership styles
D) Agency costs
61) 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
8) Which of the following is an example of a business using information systems to create a new product? A) Walmart's RetailLink system B) The Mandarin Oriental's use of computers to keep track of guest preferences C) Verizon's use of a web-based digital dashboard to provide real-time company information for managers D) Apple's creation of the iPod E) Kroger's use of sensors to monitor cold food storage temperatures
D) Apple's creation of the iPod
5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following? A) Improved flexibility B) Improved decision making C) Improved efficiency D) Customer intimacy E) Operational excellence
D) Customer intimacy
18) Non-typical business problems with causes and effects that are rapidly changing are typically handled by which of the following types of information system? A) MIS B) TPS C) ESS D) DSS E) KMS
D) DSS
25) Which of the following is a highly structured decision? A) Creating a new product B) Estimating the effect of changing costs of supply materials C) Calculating the best trucking routes for product delivery D) Granting credit to a customer E) Forecasting new industry trends
D) Granting credit to a customer
1) Which of the following is not one of the six strategic business objectives of information systems? A) New products and services B) Improved decision making C) Competitive advantage D) Improved employee morale E) Survival
D) Improved employee morale
22) According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are: A) environment, organization, structure, and tasks. B) technology, people, culture, and structure. C) organization, culture, management, and environment. D) tasks, technology, people, and structure. E) costs, tasks, structure, and management.
D) tasks, technology, people, and structure.
75) All of the following are reasons for the increased business focus on collaboration and teamwork, except for: A) the need for creating innovative products and services. B) growth of "interaction" jobs. C) greater global presence. D) the need for more efficient work hierarchies. E) the need to reduce communication costs.
D) the need for more efficient work hierarchies.
4) 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
46) Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing D) Service E) Technology
E) Technology
71) Which of the following tools would you use to evaluate and choose a collaboration tool for your organization? A) Virtual meeting system B) Cloud collaboration C) IBM Notes D) The collaboration matrix E) The time/space collaboration and social tool matrix
E) The time/space collaboration and social tool matrix
91) Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology implementations? A) Supply and demand B) Return on investment C) Breakeven point D) Cost-benefit analysis E) Total cost of ownership
E) Total cost of ownership
76) ________ are created by combining and customizing components from different online software applications. A) Apps B) Web browsers C) SaaS D) Web services E) Web mashups
E) Web mashups
17) Which of the following factors does not help explain why computing resources today are even more available than in previous decades? A) Network economics B) Law of mass digital storage C) Moore's law D) Declining communications costs and the Internet E) Widespread rejection of technology standards
E) Widespread rejection of technology standards
7) Which of the following technologies disrupted the traditional publishing industry? A) Instant messaging B) e-mail C) Internet telephony D) PCs E) World Wide Web
E) World Wide Web
79) ________ provides a standard format for data exchange, enabling web services to pass data from one process to another. A) HTML B) HTML5 C) Java D) Chrome OS E) XML
E) XML
30) Walmart's attempt to increase its online presence is an example of a firm using information systems to: A) strengthen ties to its customers. B) simplify the industry value chain. C) develop synergies. D) focus on market niche. E) achieve low-cost leadership.
E) achieve low-cost leadership.
13) All of the following are new technology-related trends 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.
9) Interpretations of Moore's law assert that: A) computing power will eventually level off. B) transistors decrease in size 50% every two years. C) data storage costs decrease by 50% every 18 months. D) PCs decrease in market share by 9% every 5 years. E) computing power doubles every 18 months.
E) computing power doubles every 18 months.
63) A(n) ________ is an activity for which a firm is a world-class leader. A) expertise area B) competitive advantage C) growth driver D) efficiency E) core competency
E) core competency
69) A(n) ________ social networking tool creates business value by connecting the members of an organization through profiles, updates, and notifications that are tailored to internal corporate uses. A) cloud-based B) social-commerce C) collaborative D) remote, asynchronous E) enterprise
E) enterprise
13) The development of TCP/IP occurred during the ________ era. A) cloud and mobile computing B) general-purpose mainframe and minicomputer C) client/server era D) personal computer E) enterprise computing
E) enterprise computing
20) Application server software is responsible for locating and managing stored webpages.
FALSE
21) IT infrastructure consists of only those physical computing devices required to operate the enterprise.
FALSE
27) 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
28) Exponential growth in the number of transistors and the power of processors is expected to increase for the foreseeable future.
FALSE
40) SANs maintain a series of servers and provide fee-paying subscribers with space to maintain their websites.
FALSE
45) 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
46) A DSS is most commonly used by the operations management level of an organization.
FALSE
47) You would use an MIS to help determine if your business should introduce a new product line.
FALSE
48) For nonroutine decision making, senior managers rely on management information systems.
FALSE
49) Most transaction processing systems use sophisticated mathematical models or statistical techniques.
FALSE
53) Operational managers use ESS primarily to solve specific problems.
FALSE
56) An SCM is considered to be an intraorganizational system because it manages information that flows between different companies.
FALSE
58) Quantum computing is implemented primarily with enterprise or ISP servers.
FALSE
59) An inventory control system is an example of an MIS.
FALSE
59) Quantum computing is not yet available to the general public.
FALSE
6) Identifying customers is a business process handled by the human resources function.
FALSE
65) Computers and programs are the only things required to produce the information an organization needs.
FALSE
66) Information systems literacy focuses primarily on knowledge of information technology.
FALSE
67) The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.
FALSE
68) Knowledge workers make long-range strategic decisions about products and services.
FALSE
69) High product differentiation is a sign of a transparent marketplace.
FALSE
69) There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology.
FALSE
70) The effect of the Internet has been to decrease the bargaining power of customers.
FALSE
71) All business processes are formally documented by an organization.
FALSE
74) Switching costs decrease when customers are strongly linked to products and platforms.
FALSE
76) In the value chain model, support activities are most directly related to the production and distribution of the firm's products and services, which create value for the customer.
FALSE
80) Production tasks are coordinated through the use of social networks in social business.
FALSE
81) Middle managers make long-range strategic decisions about the firm's products and services.
FALSE
81) The law of diminishing returns only applies to digital products.
FALSE
81) Web services can exchange information between two different systems only if the operating systems and programming languages upon which the systems are based are identical.
FALSE
82) The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly.
FALSE
84) Mintzberg's classification identifies five forces in an industry's environment that affect the strategic position of a firm.
FALSE
96) TCO refers to the original cost of purchased technology: both hardware and software.
FALSE
97) Research has shown that a majority of firms are able to align their information technology with their business goals.
FALSE
98) The use of Internet technologies allows companies to more easily sustain competitive advantage.
FALSE
23) Approximately how many Americans access the Internet using a smartphone or tablet? A) 118 million B) 172 million C) 194 million D) 220 million E) 258 million
C) 194 million
19) In 2015, what percent of the U.S. economy resulted from foreign trade? A) 10 percent B) 25 percent C) 30 percent D) 50 percent E) 66 percent
C) 30 percent
21) How many service jobs move offshore to lower-wage countries in a typical year? A) 3,000 B) 30,000 C) 300,000 D) 3 million E) 30 million
C) 300,000
90) A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CTO E) CKO
C) CIO
92) The ________ helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes. A) CTO B) CSO C) CKO D) CPO E) CEO
C) CKO
46) Which of the following would not be a complementary asset for a solar panel manufacturer? A) International solar equipment certification standards B) Government funding for green technology C) Centralized hierarchical decision making D) Innovation-driven management team E) Subsidies for adoption of solar energy
C) Centralized hierarchical decision making
2) Which of the following is an example of a cross-functional business process? A) Identifying customers B) Transporting the product C) Creating a new product D) Assembling a product E) Paying creditors
C) Creating a new product
19) Which of the following types of information systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance? A) MIS B) TPS C) DSS D) KMS E) RPS
C) DSS
28) 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? A) MIS B) TPS C) ESS D) CRM E) SCM
C) ESS
12) Which of the following is the network standard for connecting desktop computers into local area networks that enabled the widespread adoption of client/server computing and local area networks and further stimulated the adoption of personal computers? A) TCP/IP B) COBOL C) Ethernet D) ASCII E) Linux
C) Ethernet
39) You manage the IT 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 E) MIS
C) Extranet
64) Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives.
TRUE
65) Smart products are an example of the Internet of Things.
TRUE
66) A company's competitive advantages ultimately translate into higher stock market valuations than its competitors.
TRUE
67) The three main dimensions of information systems are management, organizations, and information technology.
TRUE
68) Customers are one of the competitive forces that affect an organization's ability to compete.
TRUE
7) One example of a business process is shipping a product to a customer.
TRUE
70) You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems.
TRUE
71) An efficient customer response system directly links consumer behavior to distribution and production and supply chains.
TRUE
72) Creative work driven by new knowledge and information is a significant part of management responsibility.
TRUE
72) Information systems are used to enable new products and services via product differentiation.
TRUE
73) Intranets link different systems and networks within a firm.
TRUE
73) Mass customization offers individually tailored products or services using the same resources as mass production.
TRUE
74) UPS's use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites is an information systems solution used to achieve customer intimacy.
TRUE
79) The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.
TRUE
80) A firm can be said to have competitive advantage when it has access to resources that others do not.
TRUE
80) Java software is designed to run on any computing device, regardless of the specific microprocessor or operating system it uses.
TRUE
80) The key elements of an organization are its structure, business processes, politics, culture, and people.
TRUE
81) A key word in social business is "conversations."
TRUE
82) An example of a remote, synchronous collaboration tool is a Skype conference call using VOIP and webcams.
TRUE
82) Detailed, programmed instructions that control computer hardware components in an information system are known as computer software.
TRUE
82) Whereas HTML is limited to describing how data should be presented in the form of Web pages, XML can perform presentation, communication, and data storage tasks.
TRUE
83) Global firms can collaborate from different locations at the same time using synchronous collaboration tools.
TRUE
83) Hypertext markup language specifies how text, graphics, video, and sound are placed on a webpage.
TRUE
83) Smart products generally raise switching costs.
TRUE
84) A service-oriented architecture is set of self-contained services that communicate with each other to create a working software application.
TRUE
85) Today, many business firms continue to operate legacy systems because they meet a business need and would be costly to replace.
TRUE
94) The decision to purchase your own IT assets or rent them from external providers is also referred to as the rent-versus-buy decision.
TRUE
95) Scalability refers to the ability of a computer, product, or system to expand to serve a large number of users without breaking down.
TRUE
97) The number of IS/MIS jobs is projected to grow 50% faster than the average job growth for the economy as a whole in the next eight years.
TRUE
98) In 2016, the median wage for IT/MIS jobs is about twice the level for all occupations.
TRUE
98) The behavioral approach to information systems focuses on analyzing the psychological, social, and economic impacts of systems rather than the technical aspects.
TRUE
99) IT governance refers to the overall decision-making that guides the IT strategy of a firm.
TRUE
13) To monitor the status of internal operations and the firm's relations with the external environment, managers need which of the following types of system? A) DSS B) KWS C) TPS D) MIS E) BIS
C) TPS
12) You have been hired by a non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, SMS, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs? A) TPS B) TPS with DSS capabilities C) TPS with MIS capabilities D) TPS with ESS capabilities E) DSS with MIS capabilities
C) TPS with MIS capabilities
62) A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market. A) value chain B) support web C) value web D) consortium E) net marketplace
C) value web
2) Which of the following statements about organizations is not true? A) An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. B) An organization is a formal, legal entity with internal rules and procedures that must abide by laws. C) An organization is a collection of people and other social elements. D) An informal group can be considered to be an organization. E) An organization is a collection of rights, privileges, obligations, and responsibilities delicately balanced over a period of time through conflict and conflict resolution.
D) An informal group can be considered to be an organization.
32) The four major types of enterprise applications are: A) SCM, CRM, DSS, and KMS. B) SCM, CRM, ESS, and KMSs. C) ERP, SCM, DSS, and CRM. D) ERP, SCM, CRM, and KMS. E) TPS, MIS, DSS, and ESS.
D) ERP, SCM, CRM, and KMS.
30) Which of the following systems is designed to support organization-wide process coordination and integration? A) DSS B) MIS C) CRM D) Enterprise applications E) SCM
D) Enterprise applications
36) The ability to offer individually tailored products or services using the same production resources as bulk production is known as: A) mass marketing. B) micromarketing. C) micro customization. D) niche customization. E) mass customization.
E) mass customization.
78) Data is information that has been shaped into a form that is meaningful to human beings.
FALSE
77) When the output of some units in a firm can be used as inputs to other units, synergies develop, which can lower costs and generate profits.
TRUE
78) According to the network economics perspective, the more people offering products on eBay's site, the greater the value of the site to all who use it.
TRUE
79) Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
TRUE
45) 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.
95) Which of the following job categories is expected to experience the most growth over the next eight years? A) Computer support specialists B) Software engineers C) Systems analysts D) Computer programmers E) Database administrators
C) Systems analysts
50) Managers can use DSS to make decisions about problems that are unusual and not easily specified in advance.
TRUE
22) 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
47) Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry? A) Benchmarking B) Best practices C) Value chain analysis D) Strategic systems analysis E) Secondary activities
A) Benchmarking
36) Which of the following types of system would you use to manage relationships with your customers? A) CRM B) MIS C) CLE D) CLU E) KMS
A) CRM
53) Which of the following would not be used as an input for an information system? A) Digital dashboard B) Tablet computer C) Bar code scanner D) Smartphone E) RFID reader
A) Digital dashboard
24) 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? A) ESS B) TPS C) MIS D) DSS E) KMS
A) ESS
56) A virtual company: A) uses networks to link people, assets, and ideas. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services or virtual products. E) is limited by traditional organizational boundaries.
A) uses networks to link people, assets, and ideas.
72) Sets of loosely coupled software components that exchange information with each other using standard web communication standards and languages are referred to as: A) web services. B) EAI software. C) SOA. D) SOAP. E) SaaS.
A) web services.
8) In a multi-tiered network: A) the work of the entire network is centralized. B) the work of the entire network is balanced over several levels of servers. C) processing is split between clients and servers. D) processing is handled by multiple, geographically-remote clients. E) processing is located in the cloud.
B) the work of the entire network is balanced over several levels of servers.
75) There is little variation in returns on IT investment across firms.
FALSE
25) Internet advertising is growing at approximately 5 percent a year.
FALSE
77) A firm that invests in a strong IS development team is making an investment in organizational complementary assets.
TRUE
75) The value chain model classifies all company activities as either primary or support activities.
TRUE
76) Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments.
TRUE
28) A business model describes how a company produces, delivers, and sells a product or service to create wealth.
TRUE
52) An organization's MIS and DSS supply an ESS with summarized information.
TRUE
73) Which of the following is the foundation technology for web services? A) XML B) HTML C) SOAP D) UDDI E) SCSI
A) XML
38) 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? A) An extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed B) A CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C) A KMS, for minimizing redundant work on similar clients D) A marketing system, for improving sales levels E) A TPS, to help manage all daily activities and transactions
A) An extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed
57) Which of the following is an example of a keystone firm within a business ecosystem? A) Apple in the mobile platform ecosystem B) GUESS and the fashion ecosystem C) Citibank and the ATM ecosystem D) American Airlines and the computerized reservation ecosystem E) Nike and the athletic apparel ecosystem
A) Apple in the mobile platform ecosystem
93) Which of the following is a firm's CPO responsible for? A) Ensuring that the company complies with existing data privacy laws B) Making better use of existing knowledge in organizational and management processes C) Enforcing the firm's information security policy D) Overseeing the use of information technology in the firm E) Acting as liaison between the information systems group and the rest of the company
A) Ensuring that the company complies with existing data privacy laws
7) Which of the following is the key business metric behind the technologies implemented by Kroger, as discussed in the chapter-opening case? A) Higher customer satisfaction levels B) Survival C) Improved employee morale D) Improved decision making E) Reduced cost of supplies
A) Higher customer satisfaction levels
45) Which of the following represent the primary activities of a firm? A) Inbound logistics, operations, outbound logistics, sales and marketing, and service B) Inbound logistics, operations, outbound logistics, technology, and service C) Procurement, inbound logistics, operations, technology, and outbound logistics D) Procurement, operations, technology, sales and marketing, and services E) Organization infrastructure, human resources, technology, and procurement
A) Inbound logistics, operations, outbound logistics, sales and marketing, and service
76) Which of the following statements regarding IBM Notes is not true? A) It began as an e-mail and messaging client. B) It is a widely used collaboration tool at larger firms. C) It provides capabilities for wikis and microblogging. D) It provides tools for full version control of all company documentation. E) It is designed to provide security for sensitive corporate information.
A) It began as an e-mail and messaging client.
43) Which of the following statements about Plan International's new human resources system, as described in the chapter case, is not true? A) It took six months to implement a working system at Plan International's international headquarters. B) The new system helps manage grants and donations received by Plan International. C) The new system is cloud-based and delivers information on a secure mobile platform. D) The new system enables employees to update their own personal information. E) The new system provides a bird's-eye view of the entire Plan workforce.
A) It took six months to implement a working system at Plan International's international headquarters.
14) Which of the following became the standard PC in the Personal Computer Era? A) Wintel PC B) DOS PC C) MITS PC D) Altair E) Apple II
A) Wintel PC
32) Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which of the following strategies? A) Low-cost leadership B) Marketing effectiveness C) Focusing on market niche D) Strengthening supplier intimacy E) Developing synergies
A) Low-cost leadership
16) Which of the following would you use in order to determine which of your suppliers has the best and worst records for keeping to your production schedule? A) MIS B) TPS C) UPS D) DSS E) CRM
A) MIS
16) ________ states that the value or power of a network grows exponentially as a function of the number of network members. A) Metcalfe's Law B) Moore's Law C) Law of scalability D) Law of outsourcing E) Law of networks
A) Metcalfe's Law
47) Which of the following types of computing involves purchasing computing power from a remote provider and paying only for the computing power used? A) On-demand B) Grid C) Edge D) Autonomic E) Quantum
A) On-demand
2) Which of the following is not an IT infrastructure service component? A) Operating system software B) Computing platforms to provide a coherent digital environment C) Physical facilities management to manage the facilities housing physical components D) IT management services to plan and develop the infrastructure and provide project management E) IT education services that provide training to employees
A) Operating system software
58) ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. A) Product differentiation B) Low-cost leadership C) Focusing on market niche D) Strengthening customer intimacy E) Strengthening supplier intimacy
A) Product differentiation
34) Which of the following types of system enables management to make better decisions regarding organizing and scheduling sourcing, production, and distribution? A) SCM B) TPS C) KMS D) ERP E) MIS
A) SCM
29) Which of the following substitute products would be of most concern for a cable TV distributor? A) Satellite TV B) Broadcast TV C) Satellite radio D) The Internet E) Terrestrial radio
A) Satellite TV
14) A(n) ________ is typically a major source of data for other systems. A) TPS B) MIS C) ESS D) DSS E) KMS
A) TPS
51) Which of the following is an example of a social complementary asset? A) Technology and service firms in adjacent markets B) Training programs C) Distributed decision-making rights D) Incentives for management innovation E) A strong IS development team
A) Technology and service firms in adjacent markets
57) Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) The specification of procedures for identifying packages with sender and recipient information B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery E) A web-based Post Sales Order Management System
A) The specification of procedures for identifying packages with sender and recipient information
42) Procter and Gamble uses InnovationNet for which of the following? A) To enhance its core competencies B) To benchmark its progress against competitors C) To create synergies with its suppliers D) To take advantage of network economics E) To establish a virtual company
A) To enhance its core competencies
35) Which of the following is an example of a legacy system? A) Transaction processing system running on a mainframe B) Scalable grid computing system C) Web services running on a cloud computing platform D) MDM software E) Quantum computing system
A) Transaction processing system running on a mainframe
11) Which of the following is a multitasking, multi-user, operating system developed by Bell Laboratories that operates on a wide variety of computing platforms? A) Unix B) Linux C) OS X D) COBOL E) DOS
A) Unix
50) Which of the following is an example of an organizational complementary asset? A) Using the appropriate business model B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management
A) Using the appropriate business model
14) As discussed in the chapter opening case, which of the following statements about Verizon is not true? A) Verizon is focusing on satellite-based television in its competition with AT&T. B) Verizon claims that its wireless network is the largest and most reliable in the United States. C) Verizon is investing in upgrading its high-speed networks. D) Verizon sees mobile ads and video as an investment for the future. E) Verizon offers a standalone video service.
A) Verizon is focusing on satellite-based television in its competition with AT&T.
78) ________ is a collaboration tool that supports remote (different place), synchronous (same time) collaboration. A) Video conferencing B) E-mail C) A MUD D) A wall display E) A virtual world
A) Video conferencing
79) According to the chapter case, which of the following statements about Cisco's IX5000 telepresence system is not true? A) No special changes to a room are required to install the IX5000 system. B) A six-seat IX500 system costs about $500,000. C) The IX5000 system is able to capture an entire room in fine detail. D) The IX5000 system needs only half the power, installation time, and data transmission capacity (bandwidth) as Cisco's previous telepresence systems. E) Produban was the first company to deploy the IX5000 system.
B) A six-seat IX500 system costs about $500,000.
51) Which of the following is the most popular mobile operating system? A) Linux B) Android C) Chrome OS D) iOS E) Unix
B) Android
52) Which of the following is an example of synergy in business? A) Amazon's use of the Internet to sell books B) Bank of America acquiring Countrywide Financial to reach a large pool of new customers C) Blockbuster combining traditional video rental with online video rental D) Walmart's order entry and inventory management system to coordinate with suppliers E) Nike's use of technology to improve its product offerings
B) Bank of America acquiring Countrywide Financial to reach a large pool of new customers
25) Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete? A) Network economics model B) Competitive forces model C) Competitive advantage model D) Demand control model E) Agency costs model
B) Competitive forces model
29) What is the most important function of an enterprise application? A) Increasing 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 E) Enabling inventory and supply chain management
B) Enabling business functions and departments to share information
33) ________ systems are also known as enterprise systems. A) Resource planning B) Enterprise resource planning C) Enterprise support D) Management information E) Decision-support
B) Enterprise resource planning
40) Which of the following types of system helps coordinate the flow of information between the firm and its suppliers and customers? A) Intranet B) Extranet C) KMS D) TPS E) DSS
B) Extranet
43) 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
56) Which main business function is responsible for maintaining employee records? A) Sales and marketing B) Human resources C) Finance and accounting D) Manufacturing and production E) Middle management
B) Human resources
22) Which of the following statements is not true? A) In 2015, American businesses invested about $1 trillion in information systems hardware, software, and telecommunications equipment. B) In 2015, American businesses spent $500 billion on business and management consulting and information technology services. C) Private business investment in information technology has grown from 21 percent of total invested capital in 1999 to 37 percent of all invested capital in 2015. D) Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms. E) Much of the money spent by American businesses on business and management consulting involves redesigning firms' business operations to take advantage of new technologies.
B) In 2015, American businesses spent $500 billion on business and management consulting and information technology services.
64) Why does Amazon need to worry about competitors in online shopping? A) E-commerce is affected by the law of diminishing returns. B) Internet technologies are universal, and therefore usable by all companies. C) Internet shopping produces cost transparency. D) The Internet enables the production or sales of substitute products or services. E) The Internet increases switching costs.
B) Internet technologies are universal, and therefore usable by all companies.
2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following? A) Compliance with regulations B) Managerial decision making C) Efficiency in creation of new products D) Employee morale E) Intimacy with its suppliers
B) Managerial decision making
24) Which of the following statements is not true? A) Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. B) Most PCs manufactured in China use microprocessor chips manufactured in Korea. C) Eighty percent of the toys sold in the United States are manufactured in China. D) In 2015, 60 percent of Apple's revenue was generated outside of the United States. E) Technology companies are particularly dependent on offshore revenue.
B) Most PCs manufactured in China use microprocessor chips manufactured in Korea.
15) A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective? A) Customer intimacy B) Operational excellence C) Survival D) Creation of new products E) Improved decision making
C) Survival
6) Competitors were seeking which of the following business objectives when they rushed to provide ATMs after Citibank introduced the first ATMs in New York? A) Improved efficiency B) Customer and supplier intimacy C) Survival D) Competitive advantage E) Improved decision making
C) Survival
58) Which of the following constitutes a managerial element in the UPS tracking system described in the chapter? A) Taking inventory B) Providing package status reports to customers C) The decision to use automation D) In-house package tracking software E) Ability to embed UPS functions in external sites
C) The decision to use automation
1) The interaction between information technology and organizations is influenced: A) solely by the decision making of middle and senior managers. B) by the development of new information technologies. C) by many factors, including structure, politics, culture, and environment. D) by two main macroeconomic forces: capital and labor. E) by the rate of growth of the organization.
C) by many factors, including structure, politics, culture, and environment.
42) 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.
41) The Internet increases the bargaining power of customers by: A) creating new opportunities for building loyal customer bases. B) making more products available. C) making information available to everyone. D) lowering transaction costs. E) enabling the development of new services.
C) making information available to everyone.
8) Under Mintzberg's classification of organizational structure, knowledge-based organizations fall under the category of: A) entrepreneurial structures. B) divisionalized bureaucracies. C) professional bureaucracies. D) adhocracies. E) machine bureaucracies.
C) professional bureaucracies.
89) 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) CTO. E) CIO.
C) systems analyst.
3) Specifications that establish the compatibility of products and the ability to communicate in a network are called: A) network standards. B) telecommunications standards. C) technology standards. D) Internet standards. E) compatibility standards.
C) technology standards.
17) 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? A) KMS B) TPS C) ESS D) MIS E) DSS
D) MIS
28) Which of the following marketplace forces would be of least concern to a manufacturer of deep-sea oil rigs? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants E) Low number of customers
D) New market entrants
66) Which type of software is created and updated by a worldwide community of programmers and available for free? A) Software packages B) Mashups C) Outsourced D) Open source E) Closed source
D) Open source
47) 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
77) Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix? A) Synchronous/colocated B) Same time/remote C) Different time/remote D) Remote/colocated E) Same time/same place
D) Remote/colocated
21) Which level of the organization is an ESS specifically designed to serve? A) Operational B) End-user C) Middle management D) Senior management E) Knowledge workers
D) Senior management
1) Which type of infrastructure service provides data, voice and video connectivity to employees, customers, and suppliers? A) Networking B) Telephone C) VOIP D) Telecommunications E) Data management
D) Telecommunications
42) All of the following are current hardware platform trends except: A) green computing. B) virtualization. C) cloud computing. D) Unix. E) quantum computing.
D) Unix.
38) Which of the following is not a true statement about value webs? A) Value webs involve a collection of independent firms that use information technology to coordinate their value chains. B) Value webs are more customer-driven than traditional value chains. C) Value webs operate in a less linear fashion than traditional value chains. D) Value webs are inflexible and cannot adapt quickly to changes in supply and demand. E) Value webs involve highly synchronized industry value chains.
D) Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
93) Which of the following is not one of the main six factors to consider when evaluating how much your firm should spend on IT infrastructure? A) Your firm's business strategy B) The IT investments made by competitor firms C) Market demand for your firm's services D) Your firm's organizational culture E) Information technology assessment
D) Your firm's organizational culture
65) ZipRealty, which combines Google Maps with real estate data, is an example of: A) cloud computing. B) SOA. C) a widget. D) a mashup. E) a web service.
D) a mashup.
4) A(n)________ is used to communicate between a user and an organization's back-end systems. A) public server B) private server C) legacy server D) application server E) blade server
D) application server
48) The most successful solutions or methods for achieving a business objective are called: A) value activities. B) best processes. C) core competencies. D) best practices. E) benchmarks.
D) best practices.
94) All of the following job categories are expected to grow over the next eight years except: A) computer support specialists. B) software engineers. C) systems analysts. D) computer programmers. E) database administrators.
D) computer programmers.
53) Information systems enhance core competencies by: A) providing better reporting facilities. B) creating educational opportunities for management. C) allowing operational employees to interact with management. D) encouraging the sharing of knowledge across business units. E) fostering synergies among departments.
D) encouraging the sharing of knowledge across business units.
44) The value chain model: A) categorizes five related advantages for adding value to a firm's products or services. B) sees the supply chain as the primary activity for adding value. C) categorizes four basic strategies a firm can use to enhance its value chain. D) highlights specific activities in the business where competitive strategies can best be applied. E) enables more effective product differentiation.
D) highlights specific activities in the business where competitive strategies can best be applied.
35) 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) transfers data to the people who will use it or to the activities for which it will be used. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) converts raw input into a meaningful form.
D) transfers processed information to the people who will use it or to the activities for which it will be used.
7) A client computer networked to a server computer, with processing split between the two types of machines, is called a(n): A) service-oriented architecture. B) on-demand architecture. C) multi-tiered client/server architecture. D) two-tiered client/server architecture. E) divided architecture.
D) two-tiered client/server architecture.
6) Which of the following statements about business processes is not true? A) Business processes influence the relationship between an organization and information technology. B) Business processes are a collection of standard operating procedures. C) A business firm is a collection of business processes. D) Business processes are usually ensconced in an organization's culture. E) Business processes are typically unaffected by changes in information systems.
E) Business processes are typically unaffected by changes in information systems.
32) Which of the following is a leading networking hardware provider? A) Dell B) Intel C) Seagate D) IBM E) Cisco
E) Cisco
20) Which type of information system 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
13) Which of the following statements about disruptive technologies is not true? A) Disruptive technologies radically change the business landscape and environment. B) Disruptive technologies may be substitute products that perform better than other products currently being produced. C) Disruptive technologies may sometimes simply extend the marketplace. D) Disruptive technologies may put entire industries out of business. E) Firms that invent disruptive technologies as first movers always become market leaders.
E) Firms that invent disruptive technologies as first movers always become market leaders.
73) Which of the following is not a business benefit of collaboration? A) Improved quality B) Improved financial performance C) Improved customer service D) Improved innovation E) Improved compliance with government regulations
E) Improved compliance with government regulations
55) Which of the following statements about network economics is not true? A) Uber is an example of a business model that is based on the principle of network economics. B) The law of diminishing returns does not always apply to every situation. C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases. D) Information technology can be strategically useful from a network economics perspective. E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
41) 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.
4) Which of the following statements about the technical view of organizations is not true? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It emphasizes group relationships, values and structures. D) It sees the organization as a social structure similar to a machine. E) It sees the inputs and outputs, labor and capital, as being infinitely malleable.
E) It sees the inputs and outputs, labor and capital, as being infinitely malleable.
62) 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) Information systems literacy B) Information systems architecture C) Business processes D) Information technology infrastructure E) Management information systems
E) Management information systems
63) Which field of study focuses on both a behavioral and technical understanding of information systems? A) Sociology B) Operations research C) Economics D) Behavioral computing E) Management information systems
E) Management information systems
67) Which of the following is not one of the current software platform trends? A) Web services and service-oriented architecture B) Open-source software C) HTML5 D) Software outsourcing E) Multicore processors
E) Multicore processors
40) All of the following are IT-enabled products and services providing competitive advantage except: A) Amazon's one-click shopping. B) Apple's iPod and iTunes. C) Ping's golf club customization. D) PayPal's online person-to-person payment system. E) Nike's use of celebrities to market their products.
E) Nike's use of celebrities to market their products.
95) Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? A) Management science B) MIS C) Computer science D) Utilization management E) Operations research
E) Operations research
52) Which of the following is not one of the NIST defined characteristics of cloud computing? A) Ubiquitous network access B) Location-independent resource pooling C) On-demand self service D) Measured service E) Reduced elasticity
E) Reduced elasticity
26) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Solar energy D) Airline E) Small retailer
E) Small retailer
40) Data management technology consists of which of the following? A) Physical hardware and media used by an organization for storing data B) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system C) Two or more computers 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
55) SaaS refers to: A) supplying online access over networks to storage devices and storage area network technology. B) managing combinations of applications, networks, systems, storage, and security as well as providing Web site and systems performance monitoring to subscribers over the Internet. C) self-contained services that communicate with each other to create a working software application. D) easy-to-use software tools for displaying Web pages. E) hosting and managing access to software applications delivered over the Internet to clients on a subscription basis.
E) hosting and managing access to software applications delivered over the Internet to clients on a subscription basis.
15) The term management information systems refers to a specific category of information systems serving: A) integrated data processing throughout the firm. B) transaction process reporting. C) employees with online access to historical records. D) the information technology function. E) middle management functions.
E) middle management functions.
43) The ability to be in multiple states at once, dramatically increasing processing power, is a hallmark of: A) co-location. B) edge computing. C) grid computing. D) utility computing. E) quantum computing.
E) quantum computing.
44) All of the following are examples of environmental actors in an information system except: A) competitors. B) regulatory agencies. C) customers. D) suppliers. E) sales force.
E) sales force.
61) 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 ________ activities. A) primary B) auxiliary C) secondary D) service E) support
E) support
51) When two organizations pool markets and expertise that result in lower costs and generate profits, they are creating: A) a value web. B) a value chain. C) net marketplaces. D) core competencies. E) synergies.
E) synergies.
19) When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as: A) switching costs. B) network costs. C) procurement. D) agency costs. E) transaction costs.
E) transaction costs.
48) All of the following are cloud computing services except: A) infrastructure as a service. B) platform as a service. C) software as a service. D) on-demand computing. E) virtualization as a service.
E) virtualization as a service.
15) All organizations have bedrock, unquestioned assumptions that define their goals and products.
TRUE
16) A professional bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.
TRUE
17) Routines are also called standard operating procedures.
TRUE
19) In N-tier computing, significant parts of website content, logic, and processing are performed by different servers.
TRUE
22) An application server may reside on the same computer as a web server or on its own dedicated computer.
TRUE
23) Enterprise infrastructure requires software that can link disparate applications and enable data to flow freely among different parts of the business.
TRUE
24) It is much easier to eliminate a cloud service than to remove functionality from a company's core internal systems.
TRUE
25) In financial services firms, investments in IT infrastructure represent more than half of all capital invested.
TRUE
26) Creating a marketing plan is an example of a business process.
TRUE
26) Microsoft is the market leader in client/server networking.
TRUE
27) Cloud computing is the fastest growing form of computing.
TRUE
54) A web interface used to present integrated personalized business content to users is called a portal.
TRUE
55) Enterprise applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole.
TRUE
57) In green computing, reducing computer power consumption is a top priority.
TRUE
57) Supply chain management systems are more externally oriented than enterprise systems.
TRUE
58) A TPS is an information system that keeps track of all of the daily routine transactions of a business.
TRUE
