Chapter 1 Quiz and Practice Quiz

All business processes are formally documented by an organization. True or False?

False

Creating a marketing plan is not an example of a business process. True or False?

False

Knowledge workers make long-range strategic decisions about products and services. True or False?

False

A business model describes how a company produces, delivers, and sells a product or service to create wealth. True or False?

True

A firm that invests in a strong IS development team is making an investment in organizational complementary assets. True or False?

True

Creative work driven by new knowledge and information is a significant part of management responsibility. True or False?

True

Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage. True or False?

True

Intranets link different systems and networks within a firm. True or False?

True

Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments. True or False?

True

UPS's use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own website is an information systems solution used to achieve customer intimacy. True or False?

True

Which of the following is an example of a business using information systems to improve customer and supplier intimacy? 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 iPad E) PCL Construction's use of cloud computing

B) The Mandarin Oriental's use of computers to keep track of guest preferences

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.

B) Today, most firms are fully digital.

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.

B) senior management, middle management, and operational management.

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) 1, 2, and 3

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.

E) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.

In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled. True or False?

False

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

False

There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology. True or False?

False

The key elements of an organization are its structure, business processes, politics, culture, and people. True or False?

True

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

True

You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems. True or False?

True

Which of the following is an example of an organizational complementary asset? A) Choosing the appropriate business model B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management

A) Choosing the appropriate business model

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

A) Technology and service firms in adjacent markets

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

A) an information value chain

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.

A) the flattening of economic and cultural advantages of developed countries.

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

B) Finance and accounting

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) Using information to creating plans to deal with competitors D) In-house package tracking software E) Ability to embed UPS functions in external sites

B) Providing package status reports to customers

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) Improved community relations D) Competitive advantage E) Survival

C) Improved community relations

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

C) Knowledge workers

The total number of food items with storage temperature problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing

C) Meaningful information

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

C) Survival

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

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.

C) information technology (IT) infrastructure.

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

D) Operational management

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.