MIS Chapter 1
24) The use of information systems because of necessity describes the business objective of
A) survival.
54) An example of an organizational complementary asset is
A) technology and service firms in adjacent markets.
55) An example of a social complementary asset is
A) technology and service firms in adjacent markets.
38) Thomas Friedman's declaration that the world was now "flat" meant that
A) the Internet has reduced the economic advantages of developed countries.
23) Which of the following choices 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?
D) 1, 2, and 3
42) An example of a business using information systems to create new products and services is
D) Apple Inc.'s iPod.
40) Organizational culture is best described by which of the following statements?
D) It is a set of assumptions and values accepted by most members.
27) Which of the following objectives best describes the business strategy behind the technologies implemented in Disney's Operational Command Center, as discussed in the chapter case?
D) customer support
65) Which field of study focuses on both a behavioral and technical understanding of information systems?
D) management information systems
50) In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
D) operational management.
1) Internet advertising is growing at approximately 10 percent a year.
True
11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.
True
13) A substantial part of management responsibility is creative work driven by new knowledge and information.
True
15) Investment in IT is over 50% of all invested capital.
True
16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.
True
18) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments.
True
19) A firm that invests in efficient business processes is making an investment in organizational complementary assets.
True
2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.
True
4) A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
6) Computers are only part of an information system.
True
8) The dimensions of information systems are management, organizations, and information technology.
True
9) Knowledge workers assist with paperwork at all levels of the firm.
False
43) An example of a business using information systems to attain operational excellence is
A) Wal-Mart's RetailLink system.
37) 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.
64) Which of the following would not be used as an input for an information system?
A) digital dashboard
58) Sociologists study information systems with an eye to understanding
A) how systems affect individuals, groups, and organizations.
61) Which of the following are key corporate assets?
A) intellectual property, core competencies, and financial and human assets
29) Order data for baseball tickets and bar code data are examples of
A) raw input.
46) Which of the following is not one of the primary environmental actors that interacts with an organization and its information systems?
A) sales force
51) From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called
A) the information value chain.
69) 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
47) Which of the following best describes the primary reason for implementing a new information system, from a business perspective?
B) The system will create new value for the firm, beyond its costs.
53) Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
B) adopt a new business model.
45) Maintaining the organization's financial records is a central purpose of which main business function?
B) finance and accounting
59) Psychologists study information systems with an eye to understanding
B) how human decision makers perceive and use formal information.
68) Which main business function is responsible for maintaining employee records?
B) human resources
21) The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
B) improved decision making.
25) Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of
B) improved decision making.
35) In a hierarchical organization, the upper levels consist of
B) managerial, professional, and technical employees.
56) Disciplines that contribute to the technical approach to information systems are
B) operations research, management science, and computer science.
32) Converting raw data into a more meaningful form is called
B) processing.
66) The three principle levels within a business organization hierarchy are
B) senior management, middle management, and operational management.
49) The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective?
B) survival
44) An example of a business using information systems for customer and supplier intimacy is
B) the Mandarin Oriental hotel's customer-preference tracking system.
33) An example of raw data from a national chain of automobile stores would be
C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
41) 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
C) IT infrastructure.
60) All of the following are advantages, for a firm, of cloud computing except
C) ability to improve communication.
48) Which of the following would not be a complementary asset for a solar panel manufacturer?
C) centralized hierarchical decision making
22) Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?
C) competitive advantage
36) Which of the following is not one of the current changes taking place in information systems technology?
C) development of videopresence software
28) The three activities in an information system that produce the information organizations use to control operations are
C) input, processing, and output.
67) Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?
C) knowledge workers
34) The field that 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 is called
C) management information systems.
30) The average number of tickets sold daily online is an example of
C) meaningful information.
57) The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is
C) operations research.
62) Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems?
C) production workers
52) 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?
C) social
39) Data management technology consists of the
C) software governing the organization of data on physical storage media.
26) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
C) survival
63) A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
C) survival
70) A managerial element in the UPS tracking system described in the chapter is
C) the decision to use automation.
31) Output
D) transfers processed information to the people who will use it or to the activities for which it will be used.
10) There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology.
False
12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.
False
14) Intranets allow firms to work easily with third-party suppliers and vendors.
False
17) Studies have consistently shown that firms that invest greater amounts in information technology receive greater benefits than firms that invest less.
False
20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.
False
3) A fully digital firm produces only digital goods or services.
False
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.
False
7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.
False
