31) Administrative activities focus on the ________.
A) design and development of applications that support the primary business activities
B) hardware and software that must be implemented to support the applications that the primary
activities use
C) business activities associated with employee management
D) processes and decision making to orchestrate the day-to-day operations of an organization
E) purchasing of goods and services that are required as inputs for the primary activities
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
32) The hardware and software that must be implemented to support the applications that the
primary activities use are a part of the ________ activities.
A) human resources
B) technology development
C) procurement
D) inbound logistics
E) infrastructure
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
33) Human resource activities ________.
A) are classified as a support activity since the primary activities cannot be accomplished
without the employees to perform them
B) include the design and development of applications that support the primary business
activities
C) include the purchasing of goods and services that are required as inputs to the primary
activities
D) integrate the internal applications with suppliers, business partners, and customers
E) streamline the organization’s internal value chain
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
11
34) ________ activities encompass all business activities associated with employee management,
such as hiring, interview scheduling, payroll, and benefits management.
A) Human resource
B) Technology development
C) Procurement
D) Account
E) Architectural
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
35) ________ is a support activity.
A) Outbound logistics
B) Operations and manufacturing
C) Technology development
D) Customer service
E) Marketing and sales
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
36) Designing and developing applications that support the primary business activities are a part
of the ________ activities.
A) operations and manufacturing
B) outbound logistics
C) technology development
D) procurement
E) inbound logistics
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
12
37) A(n) ________ information flow consists of information that is received from another
organization.
A) stand-alone
B) legacy
C) packaged
D) upstream
E) downstream
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
38) A ________ information flow relates to the information that is produced by a company and
sent along to another organization.
A) stand-alone
B) legacy
C) packaged
D) custom
E) downstream
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
39) One of the traditional functional areas that companies are organized around is information
systems management.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
40) The core business processes common to most business organizations are order-to-cash,
procure-to-pay, and make-to-stock.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
13
41) The order-to-cash process entails subprocesses such as price and terms negotiations, issuing
of the purchase order, receiving the goods, and receiving and paying the invoice.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
42) The processes associated with buying goods from external vendors are together referred to as
the procure-to-pay process.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
43) In the make-to-stock process, raw materials, subcomponents, and accessories are procured
based on forecasts, but actual manufacturing does not start until sales orders are received.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
44) The make-to-order process uses the pull-based approach.
Difficulty: Easy
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
14
45) Briefly explain the order-to-cash process.
Difficulty: Moderate
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
46) Briefly explain the procure-to-pay process.
Difficulty: Moderate
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
15
47) Write a short note on the make-to-stock and make-to-order process.
Difficulty: Moderate
Learning Obj.: 7.1: Explain core business processes that are common in organizations.
Classification: Concept
48) Systems that focus on the specific needs of individual departments and are not designed to
communicate with other systems in the organization are referred to as ________.
A) internally focused applications
B) externally focused systems
C) stand-alone applications
D) enterprise-wide systems
E) enterprise-information systems
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
16
49) Legacy systems can prove problematic when information from multiple departmental
systems is required to support business processes and decision making. Which of the following
scenarios is most similar to the above-mentioned statement?
A) Chuck’s is a retail chain that has an inventory management system that is tied to an RFID
system. This system notifies Chuck’s managers when the inventory in its stores falls below a
certain level.
B) Quick Software Solutions has an automated system to track employee absence. It also uses a
non-automated system like attendance registers that employees sign every day. This information
is updated to Quick’s database management system on a weekly basis.
C) Nuok Tires supplies its products to Fresto, an automobile manufacturer. Nuok Tires’ factories
are located close to Fresto’s factories to minimize transportation costs.
D) Fender, a guitar manufacturer, allows customers to design their guitars online. Potential
buyers need to send the design with the order to receive their customized guitars.
E) Jsutmi successfully pursues a just-in-time inventory system. Recently, however, it has not
been able to meet demand due to labor problems.
Difficulty: Moderate
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Synthesis
50) A(n) ________ is an integrated suite of business applications for virtually every department,
process, and industry, allowing companies to integrate information across operations on a
company-wide basis using one large database.
A) legacy system
B) management information system
C) decision support system
D) distributed system software
E) enterprise system
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
51) An internally focused system helps an organization coordinate with its ________.
A) suppliers
B) business partners
C) producers
D) departments
E) customers
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
17
52) A(n) ________ system coordinates business processes with customers, suppliers, and
business partners of an organization.
A) internally focused
B) legacy
C) stand-alone
D) intermediary
E) externally focused
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
53) A system that communicates across organizational boundaries is also referred to as a(n)
________ system.
A) legacy
B) interorganizational
C) intraorganizational
D) internally focused
E) stand-alone
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
54) ________ software are applications written by third-party vendors that are used by many
different users and organizations.
A) Packaged
B) Custom
C) Bespoke
D) Personalized
E) Tailored
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
18
55) Applications that are designed and developed exclusively for a specific organization are
known as ________ software.
A) collaborative
B) custom
C) groupware
D) ready-made application
E) packaged
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
56) Customers can purchase ________ software off the shelf to help them with their personal
documents and communications.
A) personalized
B) tailored
C) packaged
D) custom
E) bespoke
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
57) ________ software is written by third-party vendors to support standardized and repetitive
tasks.
A) Packaged
B) Unpacked
C) Custom
D) Practices-Based
E) Process-Based
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
19
58) Identify the software that is cost effective, since the vendor that builds the application
spreads out the development costs by selling copies to a large number of users?
A) packaged software
B) bespoke software
C) adapted software
D) corrected software
E) custom software
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
59) Which of the following types of software is best suited for tasks that are unique to a
particular business?
A) collaborative
B) custom
C) groupware
D) packaged
E) ready-made application
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
60) Which of the following statements is true of packaged and custom software?
A) Packaged software are applications that are designed and developed exclusively for a specific
organization.
B) The development costs of custom software are much higher than for packaged software
because of the time, money, and resources that are required to design and develop them.
C) Packaged software is well suited for tasks that are unique to a particular business.
D) Custom software is cost effective since the vendor that builds the application can spread out
development costs through selling to a large number of users.
E) Custom software is highly useful for standardized, repetitive tasks, such as writing a report or
preparing a presentation.
Difficulty: Easy
Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved.
Classification: Concept
20