chapter 1

D

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

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

C

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

D

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

E

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.

B

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.

C

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

B

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.

C

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

A

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.

C

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

B

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

D

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.

C

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

B

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.

C

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

B

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

E

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

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

D

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

C

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

A

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

D

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

B

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