MIS 134 first test
Approximately how much revenue was generated by e-commerce in 2017?
$700 Billion
20) A colleague at work takes small amounts of office supplies for her own personal use, saying that this is a tiny loss to the company. You tell her that if everyone were to take office supplies, then the loss would no longer be minimal. Your rationale expresses which of the following ethical principles? A) Kant's Categorical Imperative B) The Golden Rule C) The Risk Aversion Principle D) The "No free lunch" rule E) The slippery-slope rule
A
42) Procter and Gamble uses InnovationNet for which of the following? A) To enhance its core competencies B) To benchmark its progress against competitors C) To create synergies with its suppliers D) To take advantage of network economics E) To establish a virtual company
A
45) Which of the following represent the primary activities of a firm? A) Inbound logistics, operations, outbound logistics, sales and marketing, and service B) Inbound logistics, operations, outbound logistics, technology, and service C) Procurement, inbound logistics, operations, technology, and outbound logistics D) Procurement, operations, technology, sales and marketing, and services E) Organization infrastructure, human resources, technology, and procurement
A
53) 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
A
57) Which of the following is an example of a keystone firm within a business ecosystem? A) Apple in the mobile platform ecosystem B) GUESS and the fashion ecosystem C) Citibank and the ATM ecosystem D) American Airlines and the computerized reservation ecosystem E) Nike and the athletic apparel ecosystem
A
7) 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
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
A
96) Sociologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.
A
14) As discussed in the chapter opening case, which of the following statements about Verizon is not true? A) Verizon is focusing on satellite-based television in its competition with AT&T. B) Verizon claims that its wireless network is the largest and most reliable in the United States. C) Verizon is investing in upgrading its high-speed networks. D) Verizon sees mobile ads and video as an investment for the future. E) Verizon offers a standalone video service.
A
16) ________ means that you accept the potential costs and obligations for the decisions you make. A) Responsibility B) Accountability C) Liability D) Due process E) Duty
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.
A
19) 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.
A
20) 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.
A
25) Which ethical rule states that if an action cannot be taken repeatedly, it is not right to take at all? A) Slippery-slope rule B) Lemming rule C) High-failure cost rule D) Utilitarian principle E) Golden Rule
A
29) 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
A
3) According to the ________ definition of organizations, an organization is seen as a means by which capital and labor are transformed by the organization into outputs to the environment. A) microeconomic B) macroeconomic C) sociotechnical D) behavioral E) psychological
A
3) The obligations that individuals and organizations have concerning rights to intellectual property involve which of the following moral dimensions of the information age? A) Property rights and obligations B) System quality C) Accountability and control D) Information rights and obligations E) Quality of life
A
31) 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.
A
32) Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which of the following strategies? A) Low-cost leadership B) Marketing effectiveness C) Focusing on market niche D) Strengthening supplier intimacy E) Developing synergies
A
33) RFID sensor-generated data on stored food items such as storage location is an example of: A) raw input. B) raw output. C) customer and product data. D) sales information. E) information systems.
A
34) 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
34) 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
A
37) 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
A
39) 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) culture. B) environment. C) atmosphere. D) business process. E) mission.
A
42) The Online Privacy Alliance: A) encourages self-regulation to develop a set of privacy guidelines for its members. B) protects user privacy during interactions with websites. C) has established technical guidelines for ensuring privacy. D) is a government agency regulating the use of customer information. E) is a safe harbor program established by the U.S. government.
A
47) 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
A
48) 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
49) Information systems can be used at the industry level to achieve strategic advantage by: A) building industrywide, IT-supported consortia and symposia. B) raising the bargaining power of suppliers. C) encouraging the entry of new competitors. D) enforcing standards that reduce the differences between competitors. E) decreasing switching costs.
A
50) 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
50) Which of the following is an example of an organizational complementary asset? A) Using the appropriate business model B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure E) Strong senior management
A
51) Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials? A) Digital Millennium Copyright Act B) Privacy Act C) Freedom of Information Act D) Electronic Communications Privacy Act E) Computer Software Copyright Act
A
51) 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
52) Which of the following statements about Flash cookies is not true? A) Flash cookies are installed only at the user's request. B) Flash cookies are stored on the user's computer. C) Flash cookies cannot be easily detected or deleted. D) Flash cookies are sometimes called super cookies. E) Flash cookies can be installed whenever a person clicks a Flash video.
A
53) Which of the following would not be used as an input for an information system? A) Digital dashboard B) Tablet computer C) Bar code scanner D) Smartphone E) RFID reader
A
56) 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.
A
57) Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) The specification of procedures for identifying packages with sender and recipient information B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery E) A web-based Post Sales Order Management System
A
58) ________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. A) Product differentiation B) Low-cost leadership C) Focusing on market niche D) Strengthening customer intimacy E) Strengthening supplier intimacy
A
71) An efficient customer response system directly links consumer behavior to distribution and production and supply chains.
A
81) ________ are not held liable for the messages they transmit. A) Regulated common carriers B) Private individuals C) Organizations and businesses D) Elected officials E) European ISPs
A
82) Which of the following resulted in an outage for Netflix customers on Christmas Eve 2012? A) A failure of Amazon's cloud computing service B) A failure of Netflix's recommendation engine software C) A blackout at Netflix's primary data center D) A hacking attack E) A bug in Netflix's credit card processing system
A
88) Redesigning and automating business processes can be seen as a double-edged sword because: A) increases in efficiency may be accompanied by job losses. B) increases in efficiency may be accompanied by poor data quality. C) support for middle-management decision making may be offset by poor data quality. D) reliance on technology results in the loss of hands-on knowledge. E) it can concentrate power in the hands of senior executives.
A
9) Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy. A) machine B) professional C) divisionalized D) multidivisional E) ad hoc
A
90) CVS refers to: A) eyestrain related to computer display screen use. B) a business practice that attempts to evaluate the intangible values of computer systems. C) carpal vision syndrome. D) a type of antivirus protection software. E) wrist injuries brought about by incorrect hand position when using a keyboard.
A
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.
B
17) ________ is a feature of social institutions that means mechanisms are in place to determine responsibility for an action. A) Due process B) Accountability C) The courts of appeal D) The judicial system E) Liability
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.
B
33) 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.
B
43) 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
54) 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) network inelasticity. E) virtual economics.
B
60) The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage. A) competitive forces B) value chain C) bargaining power D) new entrant E) rivalry
B
86) The U.S. CAN-SPAM Act: A) makes spamming illegal. B) requires commercial email senders to identify themselves. C) has dramatically cut down spamming. D) does not override state anti-spamming laws. E) does not outlaw the use of fake return addresses.
B
96) Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered: A) organizational adjustments. B) strategic transitions. C) systems alterations. D) business goal transitions. E) sociotechnical transitions.
B
1) Which of the following best describes how new information systems can result in legal gray areas? A) They work with networked, digital data, which are more difficult to control than information stored manually. B) They result in new situations that are not covered by old laws. C) They are implemented by technicians rather than managers. D) They are created from sets of logical and technological rules rather than social or organizational mores. E) They are little understood by politicians or lawyers.
B
12) The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as organizational: A) culture. B) politics. C) structure. D) environments. E) routines.
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.
B
18) ________ is a feature of law-governed society and involves having laws that are known and understood, along with the ability to appeal to higher authorities to ensure that the laws are applied correctly. A) Liability B) Due process C) Responsibility D) Accountability E) The judicial system
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
B
2) Which of the following best describes the effect that new information technology has on society? A) It has a dampening effect on the discourse of business ethics. B) It has a ripple effect, raising new ethical, social, and political issues. C) It is beneficial for society as a whole, while raising dilemmas for consumers. D) It has a waterfall effect in raising ever more complex ethical issues. E) It has a magnifying effect, creating increasing numbers of ethical issues.
B
21) 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.
B
24) 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
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.
B
25) Which model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete? A) Network economics model B) Competitive forces model C) Competitive advantage model D) Demand control model E) Agency costs model
B
35) 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
B
36) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) analysis.
B
38) In a hierarchical organization, the upper level consists of: A) scientists. B) senior management. C) professional employees. D) data workers. E) knowledge workers.
B
40) 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.
B
43) In the ________ model of informed consent, personal information can be collected until the consumer specifically requests that his or her data not be collected. A) opt-in B) opt-out C) P3P D) PGP E) safe harbor
B
45) Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system enables the firm to create new products and services. B) The system will create new value for the firm, beyond its costs. C) The system will automate key business processes. D) The system is in use by our primary competitors. E) The system integrates well with the Web.
B
48) "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.
B
49) The NAI is an industry association formed to help with which of the following? A) Copyright protection B) Online privacy issues C) Patent protection D) Trademark protection E) Trade secret protection
B
52) Which of the following is an example of synergy in business? A) Amazon's use of the Internet to sell books B) Bank of America acquiring Countrywide Financial to reach a large pool of new customers C) Blockbuster combining traditional video rental with online video rental D) Walmart's order entry and inventory management system to coordinate with suppliers E) Nike's use of technology to improve its product offerings
B
54) 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
54) ________ 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
B
56) 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
B
60) Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format? A) HTML B) The World Wide Web C) E-mail D) An extranet E) FTP
B
64) 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.
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
B
94) Disciplines that contribute to the technical approach to information systems include: A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering. E) economics, sociology, and psychology.
B
97) Psychologists study information systems with an eye to understanding: A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods. E) mathematically based models and physical technology.
B
10) Which of the following is an example of a divisionalized bureaucracy? A) Startup firm B) University C) Fortune 500 firm D) Midsize manufacturer E) Consulting firm
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
C
27) 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.
C
34) The total number of food items with storage temperatures problems is an example of which of the following? A) Input B) Raw data C) Meaningful information D) Feedback E) Processing
C
35) FIP principles are based on a belief in which of the following? A) Accountability of the record holder B) Responsibility of the record holder C) Mutuality of interest between the record holder and the individual D) Privacy of the individual E) Difference between the interests of the individual and commercial organizations
C
37) Which of the following is an example of raw data from an automobile manufacturer? A) An average of 120 Subarus sold daily in New York in 2016 B) 1,200 Subaru Outbacks sold during the first quarter 2016 in New York C) One Subaru Outback sold July 27, 2016 in Mohegan Lake, New York for $24,000 D) Annual sales of Subaru Outbacks increased 5.3 percent E) An average sale price of $25,500 for all Subaru Outbacks sold during July 2016 in Mohegan Lake, New York
C
46) Which of the following would not be a complementary asset for a solar panel manufacturer? A) International solar equipment certification standards B) Government funding for green technology C) Centralized hierarchical decision making D) Innovation-driven management team E) Subsidies for adoption of solar energy
C
47) Which of the following protects the authors of a book from having their work copied by others? A) Patent protection B) Due process C) Copyright law D) Fair Use Doctrine E) Trade Secret law
C
49) A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? A) Managerial B) Governmental C) Social D) Organizational E) Auxiliary
C
52) Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems? A) Senior executives B) Sales executives C) Production workers D) Operational managers E) Knowledge workers
C
55) 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
58) 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) The decision to use automation D) In-house package tracking software E) Ability to embed UPS functions in external sites
C
89) Which of the following terms refers to significant disparities in access to computers and the Internet among different social groups and different locations? A) CVS B) Technostress C) Digital divide D) RSI E) CTS
C
1) The interaction between information technology and organizations is influenced: A) solely by the decision making of middle and senior managers. B) by the development of new information technologies. C) by many factors, including structure, politics, culture, and environment. D) by two main macroeconomic forces: capital and labor. E) by the rate of growth of the organization.
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
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
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
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
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
C
41) 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.
C
42) 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
43) Which of the following is a competitive force challenging the publishing industry? A) Positioning and rivalry among competitors B) Low cost of entry C) Substitute products or services D) Customers' bargaining power E) Suppliers' bargaining power
C
5) Which of the following is not one of the current key technology trends that raises ethical issues? A) Data storage improvements B) Data analysis advancements C) Increase in data quality D) Increase in use of mobile devices E) Advances in networking technology
C
55) ________ 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
C
59) 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
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
C
8) Under Mintzberg's classification of organizational structure, knowledge-based organizations fall under the category of: A) entrepreneurial structures. B) divisionalized bureaucracies. C) professional bureaucracies. D) adhocracies. E) machine bureaucracies.
C
8) Which of the following is a data analysis technology that finds hidden connections between data in disparate sources? A) HIPAA B) FIP C) NORA D) COPPA E) Spyware
C
91) Which of the following occurs when muscle groups are forced through tens of thousands of repetitions under low-impact loads? A) CTS B) CVS C) RSI D) Technostress E) RSS
C
95) 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 in 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
C
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
D
21) According to agency theory, the firm is viewed as a(n): A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) "nexus of contracts" among self-interested individuals. E) entrepreneurial structure.
D
23) The ethical "no free lunch" rule states that: A) if an action cannot be taken repeatedly, then it is not right to be taken at any time. B) one should take the action that produces the least harm or incurs the least cost. C) one can put values in rank order and understand the consequences of various courses of action. D) if something someone else has created is useful to you, it has value, and you should assume the creator wants compensation for this work. E) if an action is not right for everyone to take, it is not right for anyone to take.
D
39) 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.
D
44) What percent of global Internet users use Google Search and other Google services? A) Less than 10 percent B) Around 25 percent C) About 50 percent D) Nearly 80 percent E) Over 90 percent
D
48) The most successful solutions or methods for achieving a business objective are called: A) value activities. B) best processes. C) core competencies. D) best practices. E) benchmarks.
D
61) 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
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
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
D
2) 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.
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.
D
22) 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.
D
22) Which of the following best describes Immanuel Kant's categorical imperative? A) If an action cannot be taken repeatedly, then it is not right to be taken at any time. B) One should take the action that produces the least harm or incurs the least cost. C) One can put values in rank order and understand the consequences of various courses of action. D) If an action is not right for everyone to take, it is not right for anyone to take. E) You should act towards others as you would like them to act towards you.
D
26) Which of the following ethical guidelines suggests that you put yourself in the place of others, and think of yourself as the object of the decision? A) Kant's categorical imperative B) the risk aversion principle C) the utilitarian principle D) the Golden Rule E) the "no free lunch" rule
D
28) Which of the following marketplace forces would be of least concern to a manufacturer of deep-sea oil rigs? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants E) Low number of customers
D
33) In 2010, the FTC added all of the following recommendations to its privacy guidelines except: A) firms should build products and services that protect privacy. B) firms should increase the transparency of their data collection. C) firms should require consumer consent and provide clear options to opt out of data collection. D) firms should limit the length of time that any personal data is stored to six months or less. E) consumers should be able to review and contest the accuracy and completeness of data.
D
35) 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 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) converts raw input into a meaningful form.
D
37) In environmental scanning, a firm may use information systems to: A) transform inputs into products and services. B) analyze the performance of its intranet. C) identify external events that may affect it. D) keep track of the temperature within its data centers. E) develop a unified organizational culture.
D
38) 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
39) All of the following laws apply to actions by the federal government except the: A) Freedom of Information Act. B) Privacy Act. C) Computer Security Act. D) Children's Online Privacy Protection Act. E) E-Government Act.
D
44) 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) highlights specific activities in the business where competitive strategies can best be applied. E) enables more effective product differentiation.
D
47) 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
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
D
5) Which of the following is not a major feature of organizations that impacts the use of information systems? A) Business processes B) Environments C) Goals D) Agency costs E) Leadership styles
D
53) 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.
D
58) Which of the following is not true about the changes to EU data protection rules proposed in 2012? A) The new rules would require Internet companies to obtain explicit consent from consumers for the use of their personal data. B) The new rules would require Internet companies to delete information at the user's request. C) The new rules would require Internet companies to retain information only as long as absolutely necessary. D) The new rules would reject the right to be forgotten. E) The new rules would apply only to all companies providing services in Europe.
D
59) The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as: A) retention costs. B) preservation costs. C) differentiation costs. D) switching costs. E) variation costs.
D
61) Which of the following is not a file-sharing service? A) The Pirate Bay B) Megaupload C) Morpheus D) Pandora E) Grokster
D
62) A(n) ________ 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. A) value chain B) support web C) value web D) consortium E) net marketplace
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
D
84) Which of the following is a primary drawback to the "do anything anywhere" computing environment? A) It makes work environments less pleasant. B) It creates a digital divide. C) It centralizes power at corporate headquarters. D) It blurs the traditional boundaries between work and family time. E) It leads to employees being paid less for the total amount of work performed.
D
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.
E
13) Which of the following statements about disruptive technologies is not true? A) Disruptive technologies radically change the business landscape and environment. B) Disruptive technologies may be substitute products that perform better than other products currently being produced. C) Disruptive technologies may sometimes simply extend the marketplace. D) Disruptive technologies may put entire industries out of business. E) Firms that invent disruptive technologies as first movers always become market leaders.
E
30) 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.
E
36) The ability to offer individually tailored products or services using the same production resources as bulk production is known as: A) mass marketing. B) micromarketing. C) micro customization. D) niche customization. E) mass customization.
E
38) 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
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
E
4) The obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within which of the following moral dimensions of the information age? A) Family and home B) Property rights and obligations C) System quality D) Accountability and control E) Quality of life
E
4) Which of the following statements about the technical view of organizations is not true? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It emphasizes group relationships, values and structures. D) It sees the organization as a social structure similar to a machine. E) It sees the inputs and outputs, labor and capital, as being infinitely malleable.
E
40) Data management technology consists of which of the following? 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) Two or more computers to share data or resources D) Hardware and software used to transfer data E) Software governing the organization of data on physical storage media
E
41) 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
E
50) Which of the following is not protected by copyright law? A) Musical compositions B) Motion pictures C) Maps D) Artwork E) Machines
E
51) When two organizations pool markets and expertise that result in lower costs and generate profits, they are creating: A) a value web. B) a value chain. C) net marketplaces. D) core competencies. E) synergies.
E
56) 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
E
59) Digital media differs from a physical book in all of the following ways except: A) ease of replication. B) ease of alteration. C) ease of transmission. D) ease of global distribution. E) ease of establishing uniqueness.
E
63) 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
E
7) Which of the following technologies disrupted the traditional publishing industry? A) Instant messaging B) e-mail C) Internet telephony D) PCs E) World Wide Web
E
11) Along with capital, ________ is the primary production input that the organization uses to create products and services. A) structure B) culture C) politics D) feedback E) labor
E
19) When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as: A) switching costs. B) network costs. C) procurement. D) agency costs. E) transaction costs.
E
26) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer chip C) Solar energy D) Airline E) Small retailer
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
32) 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.
E
36) The FIP principle of Notice/Awareness states that: A) customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction. B) data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use. C) there must be a mechanism in place to enforce FIP principles. D) consumers should be able to review the data collected about them. E) websites must disclose their information practices before collecting data.
E
40) 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.
E
41) 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
44) All of the following are examples of environmental actors in an information system except: A) competitors. B) regulatory agencies. C) customers. D) suppliers. E) sales force.
E
45) Which of the following forms of protection of intellectual property requires that the property be the subject of a nondisclosure agreement? A) Copyright B) Patent C) All forms of intellectual property protection D) Trademark E) Trade secret
E
46) 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.
E
46) Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing D) Service E) Technology
E
55) Which of the following statements about network economics is not true? A) Uber is an example of a business model that is based on the principle of network economics. B) The law of diminishing returns does not always apply to every situation. C) From a network economics perspective, the value of a community of people grows as the number of participants in the community increases. D) Information technology can be strategically useful from a network economics perspective. E) In network economics, the marginal cost of adding new members to the network is higher than the marginal gain.
E
57) Which of the following is not a difficulty in establishing patent protection? A) Length of time required to receive protection B) The requirement that the work reflect some special understanding and contribution C) The requirement that the work must be original D) The requirement that the work must be novel E) The requirement that the work must be a secret
E
6) 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
E
6) 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.
E
60) Which of the following were involved in what has been called the patent trial of the century? A) Apple and Microsoft B) Apple and Hewlett-Packard C) Microsoft and Symantec D) Microsoft and Facebook E) Apple and Samsung
E
61) The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ________ activities. A) primary B) auxiliary C) secondary D) service E) support
E
62) Which of the following 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) Business processes D) Information technology infrastructure E) Management information systems
E
63) Which field of study focuses on both a behavioral and technical understanding of information systems? A) Sociology B) Operations research C) Economics D) Behavioral computing E) Management information systems
E
83) Which of the following is the most common reason that business systems fail? A) Software bugs B) Software errors C) Hardware failures D) Facilities failures E) Data quality
E
85) Which of the following statements about spam is not true? A) Most spam originates from bot networks. B) Cell phone spam usually comes in the form of SMS text messages. C) Spam costs for business are very high. D) Spamming has mushroomed because it is so inexpensive and can reach so many people. E) Spamming is more tightly regulated in Europe than in the United States.
E
87) Which of the five moral dimensions of the information age does spamming involve? A) Quality of life B) System quality C) Accountability and control D) Information rights and obligations E) Property rights and obligations
E
9) Which of the following is not an example of the potential dark side of big data? A) Police visits to individuals whom a computer system identified as likely to commit a crime in the future. B) Use of a device installed in a car to analyze driving habits. C) Use of a predictive modeling system that predicts life expectancy by using data about individual consumers' buying habits as well as personal and family medical histories. D) Use of computerized systems to filter and hire job applicants. E) Analyzing data from sensors installed in local parks to monitor soil moisture.
E
95) Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? A) Management science B) MIS C) Computer science D) Utilization management E) Operations research
E
11) In today's legal environment, managers who are convicted for the misuse of information systems are still unlikely to be given a prison sentence.
FALSE
10) Routine violations of individual privacy are made more difficult by advances in data storage.
FALSE
12) Ethics describes the principles of right and wrong that can be used by individuals to make choices to guide their behavior.
TRUE
