Information Systems Today, 7e (Valacich)
Chapter 7 Enhancing Business Processes Using Enterprise Information Systems
1) Traditionally, companies are organized around five distinct functional areas. Which of the
following is one of them?
A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
2) Which of the following is a core business process?
A) time-to-purchase
B) make-to-stock
C) plan-to-produce
D) account-to-report
E) hire-to-retire
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
3) Buying a book at Amazon.com illustrates which of the following core business processes?
A) time-to-purchase
B) order-to-cash
C) plan-to-produce
D) account-to-report
E) hire-to-retire
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
1
4) Whenever an order is placed with online retailers, the retailers put together the order, ship it,
and charge the payment to the customer’s credit card. This process of selling a product or service
is known as the ________ process.
A) make-to-order
B) time-to-market
C) order-to-cash
D) procure-to-pay
E) make-to-stock
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
5) For most businesses, the ________ process entails several subprocesses including creating a
customer record, checking the customer’s creditworthiness, creating an order, checking and
allocating stock, and shipping.
A) order-to-cash
B) make-to-order
C) procure-to-pay
D) make-to-stock
E) plan-to-produce
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
6) An online retailer has finished creating a customer record. Identify the retailer’s next step in an
order-to-cash process.
A) create order
B) allocate stock
C) pick, pack, and ship
D) prepare and send invoice
E) check customer’s creditworthiness
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
2
7) In the order-to-cash process, checking credit is followed by ________.
A) collecting payment
B) creating an order
C) allocating stock
D) picking, packing, and shipping
E) preparing and sending the invoice
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
8) In an order-to-cash process, identify the next step that the online retailer takes after creating an
order for a customer.
A) collect payment
B) create customer record
C) check and allocate stock
D) pick, pack, and ship
E) prepare and send invoice
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
9) An effective ________ process can create customer satisfaction, speed up the collection
process, and serve to provide valuable inputs into business intelligence and customer relationship
management applications.
A) order-to-cash
B) make-to-order
C) procure-to-pay
D) make-to-stock
E) plan-to-produce
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
3
10) Subprocesses of the procure-to-pay process include ________.
A) collecting the payment
B) creating customer records
C) price and terms negotiations
D) creating customer satisfaction
E) speeding up the collection process
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
11) The several processes associated with the acquiring of goods from external vendors are
collectively referred to as the ________ process.
A) make-to-stock
B) make-to-order
C) order-to-cash
D) plan-to-produce
E) procure-to-pay
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
12) Which of the following is the first step in the procure-to-pay process?
A) negotiate price and terms
B) issue purchase order
C) receive goods
D) receive invoice
E) settle payment
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
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13) An effective ________ process can help to obtain favorable conditions, reduce transaction
costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders.
A) procure-to-pay
B) procure-to-buy
C) find-to-buy
D) procure-to-sell
E) find-to-sell
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
14) In the procure-to-pay process, the negotiation of price and terms is followed by ________.
A) settling the payment
B) creating the customer record
C) issuing the purchase order
D) receiving the goods
E) receiving the invoice
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
15) ________ immediately after the purchase order is issued in the procure-to-pay process.
A) Payment is settled
B) Price and terms are negotiated
C) Credit is checked
D) Goods are received
E) Invoices are received
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
5
16) Receiving the goods is followed by ________ in the procure-to-pay process.
A) settling the payment
B) negotiating the price and terms
C) issuing the purchase order
D) creating the order
E) receiving the invoice
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
17) In the ________ process, goods are produced based on forecasts and are stored in a
warehouse, and sales orders are then fulfilled from inventory.
A) configure-to-stock
B) make-to-stock
C) make-to-order
D) engineer–to-order
E) assemble-to-order
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
18) The organization waits for an order, allowing the organization to initiate a ________
sequence to move the order through the production process.
A) pushing
B) rotating
C) working
D) pulling
E) propelling
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
6
19) In core business processes, which of the following uses a push-based approach?
A) order-to-cash
B) procure-to-pay
C) production-to-order
D) make-to-stock
E) make-to-order
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
20) In the ________ process, raw materials, subcomponents, and accessories are procured based
on forecasts, but actual manufacturing does not start until sales orders are received.
A) order-to-cash
B) procure-to-pay
C) make-to-stock
D) acquire-to-dispose
E) make-to-order
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
21) Which of the following uses a pull-based approach?
A) make-to-order
B) make-to-stock
C) plan-to-produce
D) account-to-report
E) acquire-to-dispose
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
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22) The make–to-stock process is typically used for ________.
A) customizable goods
B) commodities
C) big-ticket items
D) building aircrafts
E) building highways
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
23) Which of the following goods are typically produced under a make-to-order approach?
A) expensive high-volume goods
B) cheap high-volume goods
C) very expensive low-volume goods
D) mass-produced goods
E) goods from external vendors
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
24) Which of the following goods are produced using the make–to-order approach?
A) commercial aircrafts
B) air conditioners
C) home appliances
D) televisions
E) refrigerators
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Application
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25) ________ activities are performed by the functional areas that process inputs and produce
outputs.
A) Base
B) Core
C) Support
D) Extended
E) Focus
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
26) Which of the following is a core activity according to the value chain model?
A) human resource activities
B) technology development
C) operations and manufacturing
D) administrative activities
E) infrastructure activities
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
27) Inbound logistics involves business activities associated with ________.
A) distributing end products within the order-to-cash business process
B) creating marketing literature
C) communicating with potential and existing customers
D) receiving and stocking raw materials, parts, and products
E) order processing
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
9
28) Assembly processes are ________ activities.
A) outbound logistics
B) marketing and sale
C) customer sales
D) administrative and marketing
E) operations and manufacturing
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
29) Outbound logistics activities focus on the ________.
A) processing of orders
B) distribution of end products within the order-to-cash business process
C) pricing of goods and services
D) transformation of raw materials into end products
E) receiving and stocking of raw materials, parts, and products
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
30) ________ focuses on the distribution of end products within the order-to-cash business
process.
A) Procure-and-pay process
B) Sales and marketing activity
C) Make-to-stock process
D) Inbound logistics
E) Outbound logistics
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
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