Chapter 2: TRUE/FALSE

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

False

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

False

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

False

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

False

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

False

ESSs are designed primarily to solve specific problems.

False

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

False

Enterprise systems do not utilize order transaction data.

False

Management information systems primarily support nonroutine decision making.

False

Most MISs use sophisticated mathematical models or statistical techniques.

False

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

False

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

False

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

False

Decision-support systems often use information from external sources.

True

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

True

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

True

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

True

TPS help managers monitor the firm's relations with the external environment.

True

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

True

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

True