MIS Chapter 1
How many service jobs move offshore to lower-wage countries in a typical year? A) 300,000 B) 3 million C) 3,000 D) 30 million E) 30,000
A) 300,000
Which of the following is a private corporate network extended to authorized users outside the organization? A) An extranet B) An intranet C) FTP D) The World Wide Web E) The Internet
A) An extranet
Maintaining the organization's financial records is a central purpose of which main business function? A) Finance and accounting B) Sales and manufacturing C) Finance and sales D) Manufacturing and accounting E) Human resources
A) Finance and accounting
Which of the following is not one of the six strategic business objectives that businesses are seeking to achieve when they invest in information systems? A) Improved community relations B) Survival C) Improved decision making D) Operational excellence E) Competitive advantage
A) Improved community relations
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? A) Operational management B) Production management C) Knowledge workers D) Service workers E) Middle management
A) Operational management
Data management technology consists of which of the following? A) Software governing the organization of data on physical storage media B) Physical hardware and media used by an organization to store data C) Two or more computers linked together to share data or resources D) Hardware and software used to transfer data E) Detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system
A) Software governing the organization of data on physical storage media
Which of the following constitutes a managerial element in the UPS tracking system described in the chapter? A) The decision to use computer systems to increase the ease of sending a package using UPS B) The ability to embed UPS functions in external sites C) Training provided to UPS drivers D) In-house package tracking software E) The specifications for required procedures for identifying packages
A) The decision to use computer systems to increase the ease of sending a package using UPS
Verizon Corporation uses a web-based digital dashboard to provide managers with real-time information in order to: A) improve decision making. B) create customer intimacy. C) comply with regulations. D) improve employee morale. E) create supplier intimacy.
A) improve decision making.
Disciplines that contribute to the technical approach to information systems include: A) operations research, management science, and computer science. B) engineering, utilization management, and computer science. C) economics, sociology, and psychology. D) computer science, engineering, and networking. E) management science, computer science, and engineering.
A) operations research, management science, and computer science.
Converting raw data into a more meaningful form is called: A) processing. B) capturing. C) feedback. D) organizing. E) inputting.
A) processing.
Which of the following may lead to competitive advantage?1. New products, services, and business models2. Charging less for superior products3. Responding to customers in real time A) 1 and 3 B) 1, 2, and 3 C) 1 only D) 2 and 3 E) 1 and 2
B) 1, 2, and 3
All of the following exemplify the new face of e-commerce in the twenty-first century except: A) Netflix B) GE C) Facebook D) Tumblr E) Apple Music
B) GE
Which of the following is not an expression of a superior return on the investment in an information system? A) Increase in revenue B) Increase in firm transaction costs C) Superior long-term strategic positioning of the firm D) Increase in productivity E) Increase in the firm's stock market value
B) Increase in firm transaction costs
As discussed in the chapter-opening case, AWM Smart Shelf can help brands and retailers achieve which of the following? A) Survival B) Increased customer intimacy C) Improved employee morale D) Development of new products E) Increased supplier intimacy
B) Increased customer intimacy
Which of the following makes long-range strategic decisions about products and services as well as ensures financial performance of the firm? A) Knowledge workers B) Senior management C) Operational management D) Middle management E) Production workers
B) Senior management
Which of the following statements is not true? A) Since 2000, the United States has lost an estimated 5 million manufacturing jobs to offshore, low-wage producers. B) The Internet has eased competitive tensions among nations as global trade expands. C) More than 50 percent of Intel's revenues in 2019 came from overseas sales of its microprocessors. D) A growing percent of the economy in the United States depends on imports and exports. E) Half of Fortune 500 U.S. firms derive nearly 50 percent of their revenues from foreign operations.
B) The Internet has eased competitive tensions among nations as global trade expands.
Sociologists study information systems with an eye to understanding: A) how new information systems change the control and cost structures within the firm. B) how systems affect individuals, groups, and organizations. C) the production of digital goods. D) how human decision makers perceive and use formal information. E) mathematically based models and physical technology.
B) how systems affect individuals, groups, and organizations.
Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) inputting. E) feedback.
B) processing.
In 2019, what percent of the world economy resulted from foreign trade? A) 50 percent B) 66 percent C) 30 percent D) 10 percent E) 25 percent
C) 30 percent
Approximately how much revenue was generated by e-commerce sales worldwide in 2019? A) About $360 billion B) About $3.6 billion C) About $3.6 trillion D) About $36 billion E) About $36 trillion
C) About $3.6 trillion
Which of the following is an example of an organizational complementary asset? A) Strong senior management B) Laws and regulations C) Efficient business processes D) The Internet and telecommunications infrastructure E) A collaborative work environment
C) Efficient business processes
The Mandarin Oriental uses computer systems to keep track of guests' preferences in order to: A) Improve decision making B) Increase efficiency C) Enhance customer intimacy D) Achieve operational excellence E) Improve flexibility
C) Enhance customer intimacy
Which of the following is not one of the six strategic business objectives that businesses are seeking to achieve when they invest in information systems? A) Survival B) Operational excellence C) Improved community relations D) Competitive advantage E) Improved decision making
C) Improved community relations
Which of the following is not a key organizational complementary asset? A) Supportive business culture that values efficiency and effectiveness. B) A strong information systems development team C) Incentive systems that monitor and reward individual innovation D) Decentralization of authority E) Efficient business processes
C) Incentive systems that monitor and reward individual innovation
In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business? A) Knowledge workers B) Service workers C) Operational management D) Middle management E) Production management
C) Operational management
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) Improved decision making B) Customer intimacy C) Survival D) Competitive advantage E) Operational excellence
C) Survival
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 on the Internet? A) An extranet B) E-mail C) The World Wide Web D) FTP E) HTML
C) The World Wide Web
Which of the following statements about digital firms is not true? A) Digital firms offer extraordinary opportunities for flexible global organization and management. B) Digital firms sense and respond to their environments more rapidly than traditional firms. C) Today, most firms are fully digital. D) In digital firms, time shifting and space shifting are the norm. E) Digital firms have more flexibility to survive in turbulent times.
C) Today, most firms are fully digital.
All of the following are new technology-related innovations in MIS except: A) big data. B) cloud computing. C) co-creation of business value. D) the mobile digital platform. E) IoT.
C) co-creation of business value.
Output: A) is information that is returned to appropriate members of the organization to help them evaluate the input stage. B) transforms raw data into processed information. C) transfers processed information to the people who will use it or to the activities for which it will be used. D) is feedback that has been processed to create meaningful information. E) is a stream of raw facts representing events occurring in organizations or the physical environment.
C) transfers processed information to the people who will use it or to the activities for which it will be used.
Which of the following is an example of an organizational complementary asset? A) Laws and regulations B) A collaborative work environment C) Strong senior management D) Efficient business processes E) The Internet and telecommunications infrastructure
D) Efficient business processes
Which of the following business functions is responsible for maintaining employee records? A) Sales and marketing B) Finance and accounting C) Middle management D) Human resources E) Manufacturing and production
D) Human resources
Which of the following work at the same level as middle management?? A) Production workers B) Operational managers C) Data workers D) Knowledge workers E) Service workers
D) Knowledge workers
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) Computer literacy B) Information technology infrastructure C) Information systems architecture D) Management information systems E) Business processes
D) Management information systems
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) The development of new products and services B) Competitive advantage C) Customer intimacy D) Operational efficiency E) Survival
D) Operational efficiency
Which of the following is an example of a social complementary asset? A) Incentives for management innovation B) Teamwork and collaborative work environments C) Distributed decision-making rights D) Technology and service firms in adjacent markets to assist implementation E) A strong IS development team
D) Technology and service firms in adjacent markets to assist implementation
Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system is in use by our primary competitors. B) The system integrates well with the Web. C) The system enables the firm to create new products and services. D) The system will create new value for the firm, beyond its costs. E) The system will automate key business processes.
D) The system will create new value for the firm, beyond its costs.
The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of an organization's members is called its: A) business process. B) mission. C) environment. D) culture. E) atmosphere.
D) culture.
All of the following are characteristics of twenty-first digital firms except: A) use of social media to enter into conversations with customers. B) better understanding of the importance of information technology in creating and managing the firm. C) greater awareness of changes in technology, consumer attitudes, and culture. D) greater emphasis on hierarchy and structure. E) more emphasis on decision-making based on data and analysis.
D) greater emphasis on hierarchy and structure.
Psychologists study information systems with an eye to understanding: A) mathematically based models and physical technology. B) how systems affect individuals, groups, and organizations. C) how new information systems change the control and cost structures within the firm. D) how human decision makers perceive and use formal information. E) the production of digital goods.
D) how human decision makers perceive and use formal information.
Psychologists study information systems with an eye to understanding: A) mathematically based models and physical technology. B) the production of digital goods. C) how new information systems change the control and cost structures within the firm. D) how human decision makers perceive and use formal information. E) how systems affect individuals, groups, and organizations.
D) how human decision makers perceive and use formal information.
What percent of Facebook's users access the service from mobile phones and tablets? A) 93 percent B) 100 percent C) 90 percent D) 95 percent E) 98 percent
E) 98 percent
Question 40 / 1 point Which of the following is not a key organizational complementary asset? A) Decentralization of authority B) Efficient business processes C) A strong information systems development team D) Supportive business culture that values efficiency and effectiveness. E) Incentive systems that monitor and reward individual innovation
E) Incentive systems that monitor and reward individual innovation
Which of the following is an example of a business using information systems to improve supplier intimacy? A) Apple's creation of the iPad B) The Mandarin Oriental's use of computers to keep track of guest preferences C) Citibank's ATM system D) Verizon Corporation's use of a web-based digital dashboard to provide real-time information for managers E) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced
E) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced
The total number of food items with storage temperature problems is an example of which of the following? A) Feedback B) Processing C) Raw data D) Input E) Meaningful information
E) Meaningful information
The total number of food items with storage temperature problems is an example of which of the following? A) Input B) Processing C) Raw data D) Feedback E) Meaningful information
E) Meaningful information
All of the following are examples of challenges that required companies to create information systems as a necessity of doing business except: A) Citibank's development of an ATM network. B) the passage of the Sarbanes-Oxley Act. C) the passage of the Toxic Substances Control Act. D) the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. E) Walmart's development of Retail Link.
E) Walmart's development of Retail Link.
All of the following are examples of environmental actors in an information system except: A) customers. B) suppliers. C) competitors. D) regulatory agencies. E) employees.
E) employees.
Sociologists study information systems with an eye to understanding: A) mathematically based models and physical technology. B) how new information systems change the control and cost structures within the firm. C) the production of digital goods. D) how human decision makers perceive and use formal information. E) how systems affect individuals, groups, and organizations.
E) how systems affect individuals, groups, and organizations.
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) networked environment. B) information system. C) culture. D) data management environment. E) information technology (IT) infrastructure.
E) information technology (IT) infrastructure.
Journalist Thomas Friedman's description of the world as "flat" refers to the: A) increased use of global currencies. B) flattened hierarchies in digital firms. C) reduction in travel times and the ubiquity of global exchange and travel. D) use of social media for instantaneous communication. E) reduction of economic and cultural advantages of developed countries.
E) reduction of economic and cultural advantages of developed countries.
The three principal levels within a business organization hierarchy are: A) senior management, operational management, and information systems. B) senior management, middle management, and service workers. C) senior management, data workers, and service workers. D) senior management, operational management, and service workers. E) senior management, middle management, and operational management.
E) senior management, middle management, and operational management.
In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled. a) True b) False
False
A business model describes how a company produces, delivers, and sells a product or service to create wealth. a) True b) False
a) True
Creating a marketing plan is an example of a business process. a) True b) False
a) True
Creative work driven by new knowledge and information is a significant part of management responsibility. a) True b) False
a) True
Detailed, programmed instructions that control computer hardware components in an information system are known as computer software. a) True b) False
a) True
Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage. a) True b) False
a) True
Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives. a) True b) False
a) True
Parts of an organization's culture can always be found embedded in its information systems. a) True b) False
a) True
The behavioral approach to information systems focuses on analyzing the social, psychological, and economic impacts of systems rather than the technical aspects. a) True b) False
a) True
The key elements of an organization are its structure, business processes, politics, culture, and people. a) True b) False
a) 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. a) True b) False
a) True
All business processes are formally documented by an organization. a) True b) False
b) False
Data is information that has been shaped into a form that is meaningful to human beings. a) True b) False
b) False
In 2019, the supply of applicants far exceeded the number of job openings in information systems and technologies. a) True b) False
b) False
Information systems literacy focuses primarily on knowledge of information technology. a) True b) False
b) False
Intranets are used by organization to coordinate their activities with other firms for making purchases, collaborating on design, and other interorganizational work. a) True b) False
b) False
Knowledge workers make long-range strategic decisions about products and services. a) True b) False
b) False
Middle managers make long-range strategic decisions about the firm's products and services. a) True b) False
b) False
Social complementary assets are investments made by a firm to optimize its return on information technology assets. a) True b) False
b) False
There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology. a) True b) False
b) False
There is little variation in returns on IT investment across firms. a) True b) False
b) False
In each of the years between 1999 and 2019, capital investment in information technology, consisting of IT equipment, software, and research and development (R&D), accounted for over ________ percent of U.S. total capital spending (in nominal GDP). A) 65 B) 70 C) 40 D) 50 E) 55
c) 40
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) Creation of new products B) Improved decision making C) Survival D) Operational excellence E) Customer intimacy
C) Survival
The three activities in an information system that produce the information organizations use to make decisions, control operations, analyze problems, and create new products are: A) data, information, and analysis. B) data analysis, processing, and feedback. C) input, processing, and output. D) input, output, and feedback. E) information, research, and analysis.
C) input, processing, and output.
In a hierarchical business organization, the upper level consists of: A) data workers. B) service workers. C) senior management. D) knowledge workers. E) scientists.
C) senior management.
Which of the following best describes the primary reason for implementing a new information system, from a business perspective? A) The system will create new value for the firm, beyond its costs. B) The system will automate key business processes. C) The system is in use by our primary competitors. D) The system integrates well with the Web. E) The system enables the firm to create new products and services.
A) The system will create new value for the firm, beyond its costs.
Which of the following is an example of raw data from an automobile manufacturer? A) 1,200 Subaru Outbacks sold during the first quarter 2020 in New York B) One Subaru Outback sold July 27, 2020 in Mohegan Lake, New York for $24,000 C) An average sale price of $25,500 for all Subaru Outbacks sold during July 2020 in Mohegan Lake, New York D) An average of 120 Subarus sold daily in New York in 2020 E) Annual sales of Subaru Outbacks increased 5.3 percent
B) One Subaru Outback sold July 27, 2020 in Mohegan Lake, New York for $24,000
In each of the years between 1999 and 2019, capital investment in information technology, consisting of IT equipment, software, and research and development (R&D), accounted for over ________ percent of U.S. total capital spending (in nominal GDP). A) 50 B) 65 C) 40 D) 55 E) 70
C) 40
All of the following describe the effects of globalization except: A) ability of firms to replicate their business models in multiple countries without having to redesign expensive fixed-cost information systems infrastructure. B) significant decreases in operating costs. C) increased ability to find low-cost suppliers. D) ability to reliably obtain price and quality information worldwide. E) increases in transaction costs.
E) increases in transaction costs.
A firm that invests in a strong IS development team is making an investment in organizational complementary assets. a) True b) False
a) True
The three main dimensions of information systems are management, organizations, and information technology. a) True b) False
a) True
To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) Customer intimacy B) Survival C) New services D) New business models E) Supplier intimacy
A) Customer intimacy
In ________, raw data is systematically acquired and transformed during various stages that add value to that information. A) the feedback process B) the dissemination process C) an information value chain D) an industry value chain E) a firm value chain
C) an information value chain
All of the following describe the effects of globalization except: A) increased ability to find low-cost suppliers. B) increases in transaction costs. C) significant decreases in operating costs. D) ability of firms to replicate their business models in multiple countries without having to redesign expensive fixed-cost information systems infrastructure. E) ability to reliably obtain price and quality information worldwide.
B) increases in transaction costs.
A corporation that funds an employee training program to enhance the development of decision making skills could be seen as investing in which main category of complementary assets? A) Auxiliary B) Organizational C) Managerial D) Governmental E) Social
C) Managerial
Laws and regulations creating fair, stable market environments are examples of complementary social assets required to optimize returns from IT investments. a) True b) False
a) True
Outsourcing has accelerated the development of new information systems in the United States. a) True b) False
a) True
A corporation that funds an employee training program to enhance the development of decision making skills could be seen as investing in which main category of complementary assets? A) Governmental B) Managerial C) Auxiliary D) Organizational E) Social
B) Managerial
Which of the following disciplines focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control? A) Utilization management B) Computer science C) Operations research D) Management science E) MIS
C) Operations research
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) Creation of new products B) Customer intimacy C) Survival D) Operational excellence E) Improved decision making
C) Survival
Raw data collected at checkout counters in a grocery store is an example of: A) processing. B) feedback. C) output. D) input. E) information systems.
D) input.
Which of the following would be used as an input for an information system? A) Product ID and price B) Year to date sales of products C) Sales by region report D) Marketing costs report for each product E) Sales for stores in a region
A) Product ID and price
Which of the following statements is not true? A) In 2019, global spending on information technology (IT) and IT services was nearly $3.8 trillion. B) In 2019, firms spent $160 billion on management consulting and services. C) Most of the business value of IT investment derives from organizational, management, and cultural changes inside firms. D) Much of the money spent by businesses on management consulting and services involves redesigning firms' business operations to take advantage of new technologies. E) In 2019, U.S. spending on IT equipment, software, and research and development accounted for about 35 percent of total U.S. capital spending (in nominal GDP)
E) In 2019, U.S. spending on IT equipment, software, and research and development accounted for about 35 percent of total U.S. capital spending (in nominal GDP)
Which of the following is a global network that uses universal standards to connect millions of different networks around the world? A) Verizon B) The World Wide Web C) An extranet D) An intranet E) The Internet
E) The Internet
Which of the following statements best describes organizational culture? A) It reflects the senior management's perspective on the organization and goals. B) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization. C) It allows a company to achieve greater operational efficiency. D) It encompasses the sum of beliefs and assumptions by all members. E) It enables the organization to transcend the different levels and specialties of its employees.
B) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.
Journalist Thomas Friedman's description of the world as "flat" refers to the: A) reduction in travel times and the ubiquity of global exchange and travel. B) reduction of economic and cultural advantages of developed countries. C) increased use of global currencies. D) flattened hierarchies in digital firms. E) use of social media for instantaneous communication.
B) reduction of economic and cultural advantages of developed countries.
Which of the following constitutes an organizational element in the UPS package tracking system described in the chapter? A) Promoting the company strategy of low-cost, superior service B) Routing software that creates the most efficient delivery route for each driver C) The use of handheld computers and networks for managing package delivery D) Anchoring the system in UPS's sales and production functions. E) Monitoring service levels
D) Anchoring the system in UPS's sales and production functions.
Which of the following statements is not true? A) Since 2000, the United States has lost an estimated 5 million manufacturing jobs to offshore, low-wage producers. B) A growing percent of the economy in the United States depends on imports and exports. C) Half of Fortune 500 U.S. firms derive nearly 50 percent of their revenues from foreign operations. D) More than 50 percent of Intel's revenues in 2019 came from overseas sales of its microprocessors. E) The Internet has eased competitive tensions among nations as global trade expands.
E) The Internet has eased competitive tensions among nations as global trade expands.
