Exam 1 OBA 362
30) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) inputting.
B) processing.
SCM systems are more externally oriented than enterprise systems. True or False
True
15) A business is a formal organization created to sell services or products at a profit. True or False
True
86) What are the three dimensions of business problems? Give an example of each.
(1) Organizational: This may include outdated business processes, unsupportive culture and attitudes, political conflict, turbulent business environment and change, complexity of task, inadequate resources. (2) Technology: This may include insufficient or aging hardware, outdated software, inadequate data management, insufficient telecommunications capacity, incompatibility of old systems with new technology, and rapid technological change. (3) People: This may include lack of employee training, difficulties in evaluation performance, legal and regulatory compliance, work environment, lack of employee support and participation, indecisive management, or poor management.
39) Which of the following can typically access a company's intranet? A) The general public B) The firm's employees C) The firm's customers D) The firm's suppliers E) The firm's outside contractors
A
13) ________ is the ability to offer individually tailored products or services using the same production resources as mass production. A) Mass customization B) Size customization C) Personalization D) Demand customization E) CAD
A) Mass customization
Which of the following is the best definition of an information system? A) A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization B) Computers, keyboards, printers, and telecommunications devices C) A set of detailed programmed instructions that transform raw data into information D) Physical devices and software that can be connected to share voice, data, images, sound, and video E) A global network that uses universal standards
A) A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
81) Which are the three major dimensions of business problem solving? A) Organizational dimensions, people dimensions, and technology dimensions B) Organizational dimensions, people dimensions, and environmental dimensions C) People dimensions, technology dimensions, and environmental dimensions D) Technology dimensions, organizational dimensions, and environmental dimensions E) Organizational dimensions, technology dimensions, and cultural dimensions
A) Organizational dimensions, people dimensions, and technology dimensions
80) ________ technology allows a videoconference participant to give the appearance of being present at a location other than his or her true physical location. A) Telepresence B) Virtual reality C) Screen sharing D) Mind mapping E) Virtual world
A) Telepresence
23) Benchmarking: A) compares the efficiency and effectiveness of your business processes against strict standards. B) allows industry participants to develop industry-wide standards. C) is used to measure the speed and responsiveness of information technology. D) synchronizes the business processes of customers, suppliers, and trading partners. E) coordinates the value chains of independent firms to enable them to collectively produce a product or service.
A) compares the efficiency and effectiveness of your business processes against strict standards.
64) The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin. A) domestic exporter B) multinational C) franchise D) transnational E) virtual company
A) domestic exporter
18) Internet technology: A) makes it easy for rivals to compete on price alone. B) imposes a significant cost of entry, due to infrastructure requirements. C) increases the difference between competitors because of the wide availability of information. D) makes it easy to sustain operational advantages. E) has lessened competitive rivalries.
A) makes it easy for rivals to compete on price alone.
41) A moving company has an information system that analyzes travel patterns and decides which routes are the most efficient for every van. The need for employees to follow procedures to update this system with arrival and departure times is a(n) ________ dimension of the system. A) organizational B) managerial C) people D) technology E) cultural
A) organizational
8) 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.
69) Outdated software is an example of the ________ dimension of business problems. A) technology B) organizational C) people D) management E) cultural
A) technology
73) Customer definitions of the quality of a product include all of the following except: A) uniformity of the product. B) accuracy of the advertising with respect to the product. C) durability and safety of the product. D) ease of use of the product. E) customer support for the product.
A) uniformity of the product.
Which of the following refers to the purchase or sale of goods and services over the Internet? A. E-commerce B. E-business C. CRM D. MIS E. SCM
A. E-commerce
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. Survival B. Improved decision making C. Competitive advantage D. Operational excellence E. Customer intimacy
A. Survival
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.
consists of detailed, preprogrammed instructions that control and coordinate the computer ________ hardware components in an information system. A. Software B. Programming C. Enterprise applications D. Business intelligence E. Data management technology
A: Software
100) The role of the information systems department in a company is solely to support the needs of other groups as determined by senior managers. Explain why you agree or disagree with this statement.
Answers will vary, but should include an understanding of the role this department plays in creating new products and services and coordinating organizational change. An example answer is: I disagree with this statement. While a major function of the information systems department is to install, run, and manage the technology infrastructure, another role that it should play is to inform the company about new technologies, suggest capabilities the firm could have based on new or existing technologies, and helping the firm manage business processes and change
36) What is the most important benefit of an enterprise application? A) Enabling speed of communicating B) Enabling business functions and departments to share information C) Enabling a company to work collaboratively with customers and suppliers D) Enabling cost-effective, e-business processes E) Enabling managers to make better decisions
B) Enabling business functions and departments to share information
37) ________ systems integrate and share information from suppliers, manufacturers, distributors, and logistics companies. A) Collaborative distribution B) Supply chain management C) Reverse logistics D) Enterprise planning E) Digital dashboard
B) Supply chain management
74) Seeing quality as the responsibility of all people and functions in an organization is central to the concept of: A) Six Sigma. B) TQM. C) quality control. D) cycle time reduction. E) benchmarking.
B) TQM.
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.
67) A firm that locates all systems development and operations at its headquarters is using a ________ system configuration. A) unilateral B) centralized C) decentralized D) networked E) virtual
B) centralized
The six important business objectives of information system investment include all of the following except: A) competitive advantage. B) employee morale. C) improved decision making. D) survival. E) new products.
B) employee morale.
The first step in the model of business problem solving discussed in the chapter is: A) interviewing the people involved in the problem. B) identifying the problem. C) outlining the problem's causes. D) assigning the problem to a problem solver. E) evaluating possible solutions to the problem.
B) identifying the problem.
76) The final step in the four-step model of business problem solving is: A) outcome. B) implementation. C) change management. D) feedback. E) employee retraining.
B) implementation.
12) When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. A) product differentiation B) market niche C) mass customization D) process efficiency E) market transparency
B) market niche
63) The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. A) domestic exporter B) multinational C) franchise D) transnational E) virtual company
B) multinational
72) Inadequate resources are an example of the ________ dimension of business problems. A) management B) organizational C) people D) infrastructure E) cultural
B) organizational
People, organizations, and information technology are all dimensions of information systems. True or False
True
6) The three principal levels of hierarchies within a business organization are: A) senior management, knowledge workers, and service workers. B) senior management, middle management, and operational management. C) senior management, data workers, and operational management. D) senior management, operational management, and workers. E) senior management, operational management, and data workers.
B) senior management, middle management, and operational management.
72) Each of the following is required for successful collaboration, except: A) open culture. B) strong hierarchy. C) decentralized structure. D) breadth of collaboration. E) appropriate collaboration technology.
B) strong hierarchy
30) 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) inelasticity. E) virtual economics.
B) the law of diminishing returns.
The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in its use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems? A. Culture is one element that can be radically changed, not always for the better, by new information systems. B. Culture affects how information system solutions are implemented and used. C. Culture is a cauldron of employee perspectives and conflicts, which can be used to improve business processes. D. Culture is the driving force behind decision making and innovation. E. Culture is the basis for organizational politics.
B. Culture affects how information system solutions are implemented and used.
DSS and MIS are also referred to as ________ systems. A. collaboration B. business intelligence C. executive support D. business model E. expert
B. business intelligence
The use of digital technology and the Internet to execute the major business processes in the enterprise is called: A. e-commerce. B. e-business. C. enterprise applications. D. MIS. E. KWM.
B. e-business.
66) ________ systems are those in which development occurs at the home base, but operations are handed over to autonomous units in foreign locations. A) Transnational B) Decentralized C) Duplicated D) Networked E) Virtual
C) Duplicated
1) Which of the following is not one of the competitive forces in Porter's model? A) Suppliers B) Competitors C) External environment D) Customers E) Technology
C) External environment
68) ________ typically develop a single information system, usually at the home base, and then replicate it around the world. A) Domestic exporters B) Multinational firms C) Franchisers D) Transnational firms E) Virtual companies
C) Franchisers
32) Which of the following fields 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) Management information systems D) Information technology infrastructure E) Computer information systems
C) Management information systems
3) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Small retailer D) Airline E) Solar energy
C) Small retailer
17) To what competitive force did the printed encyclopedia industry succumb? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Increased bargaining power of customers E) Increased bargaining power of suppliers
C) Substitute products or services
79) Instant messaging, videoconferencing, and shared screens are all examples of ________ collaboration tools. A) bimodal B) collocated C) synchronous D) spontaneous E) asynchronous
C) synchronous
10) Which of the following is not a true statement with respect to business processes? A) Every business can be seen as a collection of business processes. B) Analyzing business processes can enable you to achieve a clear understanding of how a business actually works. C) The efficiency of a business firm is not related to its business processes. D) Information systems can automate many steps in business processes that were formerly performed manually. E) A business process may involve a unique way in which work, information, and knowledge are coordinated within an organization.
C) The efficiency of a business firm is not related to its business processes.
65) In a ________ system configuration, separate information systems are designed and managed by each foreign unit. A) duplicated B) centralized C) decentralized D) networked E) virtual
C) decentralized
36) All of the following can be considered managerial responsibilities except: A) making action plans to solve organizational problems. B) creating new products and services. C) designing new information systems. D) allocating human resources to coordinate the work to be done. E) setting strategy for responding to business challenges in the environment.
C) designing new information systems.
33) All of the following are examples of environmental actors in an information system except: A) customers. B) stockholders. C) feedback. D) competitors. E) regulatory agencies.
C) feedback.
27) 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) input, processing, and output. D) data analysis, processing, and feedback. E) information, data, and processing.
C) input, processing, and output.
19) The Internet raises the bargaining power of customers most effectively 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) reducing barriers to entry.
C) making information available to everyone.
2) Producing a bill of materials is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) technology
C) manufacturing and production
28) The average number of baseball tickets sold at a particular price is an example of: A) input. B) raw data. C) meaningful information. D) output. E) feedback.
C) meaningful information.
28) When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created. A) value webs B) value chains C) synergies D) core competencies E) benchmarks
C) synergies
26) A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. A) value chain B) business network C) value web D) consortia E) supply chain
C) value web
To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A. New products B. Survival C. Customer intimacy D. Improved decision making E. Operational excellence
C. Customer intimacy
Assume you work for a package delivery service in a major metropolitan area and that the business has been losing customers for several years. You have been asked to find a solution to this problem. What is the correct way to proceed? A. Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. B. Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution. C. Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. D. Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. E. Identify relevant information technologies, interview employees, choose a technology, and implement the technology.
C. Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.
Work environment is an example of the ________ dimension of business problems. A. management B. organizational C. people D. technology E. cultural
C. People
Engineers and scientists are examples of: A. senior management. B. production workers. C. knowledge workers. D. middle management. E. operational management.
C. knowledge workers.
The goal of social commerce applications is to: A. connect through personal and business profiles. B. use social media to connect with customers. C. share opinions about purchasing products or services. D. upload and share business documents. E. harness collective knowledge to generate new ideas.
C. share opinions about purchasing products or services.
Data management technology consists of the: 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. software governing the organization of data on physical storage media. D. hardware and software used to transfer data. E. universally accepted standards for storing data.
C. software governing the organization of data on physical storage media.
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
A(n) ________ performs and records the daily activities of a firm necessary to conduct business. A. executive support system B. management-level system C. decision support system D. transaction processing system E. business intelligence system
D. transaction processing system
64) How can a good CRM (Customer relationship management) system increase profits for a company?
Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm's interactions with its customers. The systems consolidate customer information from multiple sources—telephone, email, wireless devices, traditional sales and marketing systems, and the web—so that the firm can obtain a unified view of a customer. Understanding the customer allows a firm to increase the effectiveness of their marketing campaigns.
7) Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces? A) Strengthen customer and supplier intimacy B) Focus on market niche C) Differentiate products D) Compete on employee loyalty E) Low-cost leadership
D) Compete on employee loyalty
4) Which of the following is an interorganizational business process? A) Hiring an employee B) Identifying a customer C) Creating financial statements D) Ordering raw materials E) Checking product quality
D) Ordering raw materials
24) The most successful solutions or methods for achieving a business objective are called: A) core processes. B) best processes. C) benchmarks. D) best practices. E) value webs.
D) best practices.
29) An information system can 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) synchronizing the value chains of business partners with an industry.
D) encouraging the sharing of knowledge across business units.
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.
Which of the following would solving? A. Change management B. Purchasing hardware for an information systems solution C. Training an employee on new systems software D. Evaluating a selection of software packages for implementing a new business process E. Determining the attitude of employees about the solution
D. Evaluating a selection of software packages for implementing a new business process
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.
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. helps a firm identify points at which information technology can most effectively enhance its competitive position. E. focuses primarily on collaboration with suppliers.
D. helps a firm identify points at which information technology can most effectively enhance its competitive position.
SCM systems are considered to be a(n) ________ because they automate the flow of information across company boundaries. A. KMS B. enterprise system C. MIS D. interorganizational system E. cross-functional system
D. interorganizational system
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 raw 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. is a stream of raw facts representing events occurring in organizations or the physical environment.
D. transfers processed information to the people who will use it or to the activities for which it will be used.
78) Which of the following Google tools allows people to engage in group video chat? A) Google Drive B) Google Docs C) Google Sites D) Google Circles E) Google Hangouts
E) Google Hangouts
97) Which of the following is not a service typically provided by an information systems department? A) Telecommunications services B) Physical facilities management services C) Data management services D) Project management services E) Human resources services
E) Human resources services
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.
4) All of the following could be considered substitute products for industrial electricity generation except: A) solar. B) wind. C) coal. D) hydro-power. E) ethanol.
E) ethanol.
3) Identifying potential customers for the businesses' products or services is an activity associated with the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) technology E) sales and marketing
E) sales and marketing
75) In choosing the best solution for a business problem, all of the following are important considerations except: A) the cost of the solution. B) the feasibility of the solution given existing resources and skills. C) the length of time to implement the solution. D) the attitudes of employees. E) the ability to forget about the problem once it has been solved.
E) the ability to forget about the problem once it has been solved.
A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives? A. Customer intimacy B. Operational excellence C. New products. D. Improved decision making E. Survival
E. Survival
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. business process. B. environment. C. atmosphere. D. values. E. culture.
E. culture.
Data is information that has been shaped into a form that is meaningful to human beings. True or False
False
50) The inventors of a disruptive technology always benefit the most from the technology; and it is rare that fast followers catch up quickly. True or False
False
64) What is the difference between information technology and information systems?
Information technology (IT) consists of all the hardware and software that a firm needs to use to achieve its business objectives. Information systems are more complex. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.
45) In the value chain model, primary activities are those that are most directly related to the production and distribution of the firm's products and services. True or False
True
46) The value chain model classifies all company activities as either primary or support. True or False
True
47) When the output of some units can be used as inputs to other units, synergies develop, which can lower cost and generate profits. True or False
True
51) A value web 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. True or False
True
71) Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources. True or False
True
82) Identifying a problem includes agreeing that a problem exists. True or False
True
85) The primary goal of social business is to deepen interactions with employees and customers. True or False
True
A business model describes how a company produces, delivers, and sells a product or service to create wealth. True Or False
True
A firm can be said to have competitive advantage when it uses commonly available resources more efficiently. True or False
True
An MIS typically uses data supplied by a TPS True or False
True
Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. True or False
True
Information systems contain information about significant people, places, and things within the organization or in the environment surrounding it. True or False
True
