MIS Test 1

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

1, 2, and 3

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.

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 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

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 to be an organization.

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

All of the following are steps in the process for analyzing an ethical issue except: A) assigning responsibility. B) identifying the stakeholders. C) identifying the options you can reasonably take. D) identifying and clearly describing the facts. E) identifying the potential consequences of your options.

Assigning responsability

Advertisers use ________ in order to display more relevant ads based on a user's search and browsing history. A) behavioral targeting B) Web bugs C) NORA D) intelligent agents E) FIP principles

Behavioral targeting

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 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 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.

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

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 of the following is not a U.S. federal law affecting private institutions? A) COPPA B) HIPAA C) Gramm-Leach-Bliley Act D) Video Privacy Protection Act E) Computer Matching and Privacy Protection Act

Computer Matching and Privacy Protection Act

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

All of the following are technical solutions to protecting user privacy except: A) e-mail encryption. B) anonymous surfing. C) anonymous email. D) preventing client computers from accepting cookies. E) data use policies.

Data use policies

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

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.

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

A DSS is most commonly used by the operations management level of an organization. True or False

False

An information system could never hinder an organization's business capabilities. True or False

False

Computers and programs are the only things required to produce the information an organization needs. True or False

False

Current information technology innovations are creating new products and services while having no impact on existing businesses or industries. True or False

False

Data is information that has been shaped into a form that is meaningful to human beings. True or False

False

For nonroutine decision making, senior managers rely on management information systems. True or False

False

Gaining unapproved access to a computer is not a federal crime. True or False

False

Identifying customers is a business process handled by the human resources function. True or False

False

Middle managers make long-range strategic decisions about the firm's products and services. True or False

False

Most transaction processing systems use sophisticated mathematical models or statistical techniques. True or False

False

Operational managers use ESS primarily to solve specific problems. True or False

False

Research has shown that a majority of firms are able to align their information technology with their business goals. True or False

False

Spam is legally defined as any e-mail that is unsolicited. True or False

False

The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly. True or False

False

The law of diminishing returns only applies to digital products. True or False

False

Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed? A) HIPAA B) Gramm-Leach-Bliley Act C) Privacy Protection Act D) Freedom of Information Act E) COPPA

HIPAA

A man steals from a grocery store in order to feed his starving family. Which of the following best expresses the utilitarian principle in evaluating this situation? A) His action is acceptable, because the grocer suffers the least harm. B) His action is acceptable, because the higher social value is the survival of the family. C) His action is wrong, because the man would not want the grocer to steal from him. D) His action is wrong, because if everyone were to do this, the concept of personal property is defeated. E) His action is wrong, because the grocery store owner is harmed.

His action is acceptable, because the higher social value is the survival of the family.

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

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

Improved employee morale

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.

Which of the five moral dimensions of the information age do the central business activities of DoubleClick involve? A) Property rights and obligations B) System quality C) Accountability and control D) Quality of life E) Information rights and obligations

Information rights and obligations

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

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.

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.

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

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.

Which of the following is not protected by copyright law? A) Musical compositions B) Motion pictures C) Maps D) Artwork E) Machines

Machines

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

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.

Making information available to everyone.

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.

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

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

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

When a cookie is created during a website visit, it is stored: A) on the website's server. B) on the hard drive of the visitor's computer. C) on the ISP's servers. D) in the browser's application settings. E) nowhere, because they are only used during a visit and are discarded once a visitor leaves the Web site.

On the hard drive of the visitor's computer.

TRUSTe is an example of which of the following? A) Web beacon B) Behavioral targeting program C) Opt-out program D) Spyware E) Online seal program

Online seal program

_______ grants the owner exclusive ownership of the ideas behind an invention for 20 years. A) Copyright law B) Trademark law C) Patent law D) Trade secret protection E) Privacy law

Patent law

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 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 systems analysis

Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis.

Processing

The use of computers to assemble data from different sources to create digital dossiers of detailed information about individuals is known as which of the following? A) Profiling B) Phishing C) Spamming D) Targeting E) Spyware

Profiling

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

The U.S. Department of Commerce developed a ________ framework in order to enable U.S. businesses to legally use personal data from EU countries. A) COPPA B) P3P C) PGP D) FIP E) safe harbor

Safe harbor

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

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

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

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 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

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

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

A(n) ________ is typically a major source of data for other systems. A) TPS B) MIS C) ESS D) DSS E) KMS

TPS

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

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 restricts the information that the U.S. federal government can collect about an individual and regulates what it can do with the information? A) The Privacy Act B) The Gramm-Leach-Bliley Act C) The Freedom of Information Act D) COPPA E) HIPPA

The Privacy Act

"Look and feel" copyright infringement lawsuits are concerned with: A) the distinction between tangible and intangible ideas. B) the distinction between an idea and its expression. C) using the graphical elements of another product. D) using the creative elements of another product. E) violation of a monopoly on the ideas behind a product.

The distinction between an idea and its expression.

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.

________ prohibits an organization from collecting any personal information unless the individual specifically takes action to approve information collection and use. A) A safe harbor B) The opt-in model C) FIP principles D) P3P E) The opt-out model

The opt-in model

According to ________, you should take the action that produces the least harm. A) Kant's categorical imperative B) the risk aversion principle C) the utilitarian principle D) the Golden Rule E) the "no free lunch" rule

The risk aversion principle

In digital firms, both _____________ and _____________ are the norm.

Time shifting and Space shifting

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.

A TPS is an information system that keeps track of all of the daily routine transactions of a business. 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 has access to resources that others do not. True or False

True

A key word in social business is "conversations." True or False

True

A web interface used to present integrated personalized business content to users is called a portal. True or False

True

Any intellectual work product that isn't based on public knowledge can be classed as a trade secret. True or False

True

Computer abuse refers to acts involving a computer that may not be illegal but are considered unethical. True or False

True

Copyright is a legal protection given to creators of certain types of intellectual property. True or False

True

Enterprise applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole. True or False

True

Ethics describes the principles of right and wrong that can be used by individuals to make choices to guide their behavior. True or False

True

Global firms can collaborate from different locations at the same time using synchronous collaboration tools. True or False

True

IT governance refers to the overall decision-making that guides the IT strategy of a firm. True or False

True

Information systems enable globalization. True or False

True

Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives. True or False

True

Malicious software that is installed secretly on your computer by other applications and that tracks your online movements is called spyware. True or False

True

One example of a business process is shipping a product to a customer. True or Fale

True

Some forms of illegal sharing of music files have declined as legitimate online music stores have expanded. True or False

True

Supply chain management systems are more externally oriented than enterprise systems. True or False

True

The three main dimensions of information systems are management, organizations, and information technology. True or False

True

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.

In relationship to total capital investments for organization, for the past 15 years Information technology capital investments have

been steadily increasing

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