MIS Exam 1 (ch 1-3)
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
"nexus of contracts" among self-interested individuals
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
A department store creating specialized products for preferred customers
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.
A six seat IX500 system costs about $500,000
________ 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 virtual world
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
About 60 percent
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
Achieve low-cost leadership
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
Agency costs
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
Apple in the mobile platform ecosystem
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
Apple's creation of the Ipod
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
CRM
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
Co-creation of business value
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
Competitive forces model
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
Computer programmers
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
Consortium
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
Core competency
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
Creation of new products
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
Digital dashboard
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
ESS
Which of the following would you use to forecast trends in your supplier's industry that could affect your firm over the next five years? A) ESS B) TPS C) MIS D) DSS E) KMS
ESS
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
Enterprise applications
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.
External environment
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
Extranet
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
Extranet
Maintaining the organization's financial records is a central purpose of which main business function? A) Manufacturing and accounting B) Finance and accounting C) Sales and manufacturing D) Finance and sales E) Human resources
Finance accounting
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
Firms that invent disruptive technologies as first movers always become market leaders
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
Fortune 500 firm
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
Granting credit to a customer
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
Higher customer satisfaction levels
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.
Highlights specific activities in the business where competitive strategies can best be applied
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
Improved compliance with government regulations
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.
It helps firms expand in size
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
Keep track of the temperature within its data centers
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
Knowledge workers
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
Labor
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
Low-cost leadership
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.
Low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy
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
Lowering transaction costs
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
MIS
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
MIS
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
MIS
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
Bank of America acquiring Countrywide Financial to reach a large pool of new customers
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
Benchmarking
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
Best practices
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.
Building industry wide, IT-supported consortia and symposia
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
Business processes are typically unaffected by changes in information systems
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.
By many factors, including structure, politics, and environment
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.
Tasks, technology, people, and structure
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
Technology
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
Time Zones
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
To enhance its core competencies
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
Today, most firms are fully digital
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
Transaction costs
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.
Transfers processed information to the people who will use it or to the activities for which it will be used
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
Uses networks to link people, assets, and ideas
) 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
Value chain
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
e-business
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 moral e) survival
improved employee moral
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.
in 2015, American businesses spent $500 billion on business and management consulting and information technology services
Verizon's use of a web-based digital dashboards 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 moral e) intimacy with its suppliers
managerial decision making
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
Machine
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
Making customers aware of the product
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
Management information systems
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.
Manages data entry staff
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
Manufacturing and production
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
Market niche
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.
Mass customization
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
Meaningful information
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
Microeconomics
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
Microsoft SharePoint Online
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.
Middle management functions
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.
More suppliers
________ 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
Product differentiation
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
Professional bureaucracies
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
Provide mass customization
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
Remote/collocated
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
SCM
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
Satellite TV
In a hierarchical organization, the upper level consists of: A) scientists. B) senior management. C) professional employees. D) data workers. E) knowledge workers
Senior management
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?
Should we work with outside vendors on new products and services?
Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Solar energy D) Airline E) Small retailer
Small retailer
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
Social
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
Software governing the organization of data on physical storage media
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
Switching costs
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.
Synergies
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.
Systems analyst
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
Systems analyst
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
TPS
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
TPS
A ________ is a senior manager who oversees the use of IT in the firm. A) CEO B) CFO C) CIO D) CTO E) CKO
CIO
A(n) ________ is typically a major source of data for other systems. A) TPS B) MIS C) ESS D) DSS E) KMS
TPS
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.
An informal group can be considered an organization
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
CKO
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.
Culture
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
Customer Intimacy
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
DDS
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
DSS
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
Emerging mobile digital platforms
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
Enabling business functions and departments to share information
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.
Encouraging the sharing of knowledge across business units
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
Ensuring that the company complies with existing data privacy laws
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
Enterprise
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
Enterprise
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.
In general, the technical occupations in IT are showing faster expansion than occupations involved with the management of IT
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.
In network economics, the marginal cost of adding new members to the network is higher than the marginal gain
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
Inbound logistics, operations, outbound logistics, sales and marketing, and service
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
Increases as more people use them
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
Increases in transaction costs
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.
Information technology (IT) infrastructure
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.
Internet technologies are universal, and therefore usable by all companies
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.
It began as an email and messaging client
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
It sees the input and outputs, labor and capital, as being infinitely malleable
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
KMS
Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis.
Processing
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
New market entrants
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
Nike's use of celebrities to market their products
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
Perform a strategic system analysis
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.
Politics
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.
Strategic transactions
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
Substitute products or services
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
Successful collaboration can be achieved through technology regardless of the organization's culture or structure
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.
Summarizes and reports on a company's basic operations
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
Supply chain management system
The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ________ activities. A) primary B) auxiliary C) secondary D) service E) support
Support
A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Operational excellence B) Improved decision making C) Competitive advantage D) Customer intimacy E) Survival
Survival
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
TPS with MIS capabilities
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
The law of diminishing returns
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.
The need for more efficient work hierarchies
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
The time/space collaboration and social too matrix
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.
Value webs are inflexible and cannot adapt quickly to changes in supply and demand
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.
Verizon is focusing on satellite-base television in its competition with AT&T
________ 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
Video conferencing
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
World wide web
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
An extranet
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
How systems affect individuals, groups, and organizations
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
How systems affect individuals, groups, and organizations
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
One Subaru Outbacks sold July 27, 2016 in Mohegan Lake, New York for $24,000
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
Survival
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
The decision to use automation
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
The internet
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
Using the appropriate business model
Which of the following may lead to competitive advantage? 1. New products, services, and business models; 2. Charging less for superior products; 3. Responding to customers in real time
1, 2, and 3
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
194 Million
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
30 percent
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
300,000
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
About $1 Trillion
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
An extranet, to enable quick collaboration over the internet, minimize the time spent communication with the client, and minimizing the amount of paperwork needed
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
An information value chain
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
Big data
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
Centralized hierarchical decision making
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
Creating a new product
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.
E-commerce
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
ERP, SCM, CRM, and KMS
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
ESS
________ systems are also known as enterprise systems. A) Resource planning B) Enterprise resource planning C) Enterprise support D) Management information E) Decision-support
Enterprise resource planning
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
Human resources
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
Input, processing, and output
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.
It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization
Which of the following 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
It took six months to implement a working system at Plan International's international headuarters
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
Knowledge workers
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
Long-range planning activities of senior management
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
Management information systems
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
Most PC's manufactured in China use microprocessor chips manufactured in Korea
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
Operational efficiency
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
Operational excellence
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
Operations research
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
Operations research, management science, and computer science
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
Production workers
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
Raw input
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
Sales and marketing
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.
Sales force
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
Senior management
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.
Senior management, middle management, and operational management
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
Technology and service firms in adjacent markets
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
The flattening of economic and cultural advantages of developed countries
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
The internet and networking technologies
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.
The intranet was too expensive to maintain
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
The specifications of procedures for identifying packages with sender and recipient information
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.
The system will create new value for the firm beyond its costs
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
The world wide web
