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Essentials of MIS, 12e (Laudon)
Chapter 2 Global E-Business and Collaboration
1) Suppliers, customers, employees, products and services, and ________ are the five basic
components with which businesses must deal.
A) the environment
B) manufacturing and production
C) sales and marketing
D) invoices and payments
E) technology
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
2) Producing a bill of materials is a responsibility of the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
E) technology
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
3) Identifying potential customers for the businesses’ products or services is an activity
associated with the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) technology
E) sales and marketing
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
2
4) Which of the following is an interorganizational business process?
A) Hiring an employee
B) Identifying a customer
C) Creating financial statements
D) Ordering raw materials
E) Checking product quality
AACSB: Analytical Thinking
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
5) Employees that assist with paperwork at all levels of the firm are called:
A) data workers.
B) knowledge workers.
C) operational management.
D) service workers.
E) senior managers.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
6) The three principal levels of hierarchies within a business organization are:
A) senior management, knowledge workers, and service workers.
B) senior management, middle management, and operational management.
C) senior management, data workers, and operational management.
D) senior management, operational management, and workers.
E) senior management, operational management, and data workers.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
7) Key forces in a business’s immediate environment include:
A) stockholders.
B) technological innovations.
C) economic conditions.
D) politic conditions.
E) global events.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
3
8) Engineers and scientists are examples of:
A) senior management.
B) production workers.
C) knowledge workers.
D) middle management.
E) operational management.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
9) Which of the following is an example of a key force in a firm’s broader, less immediate
environment?
A) Competitors
B) Regulations
C) Suppliers
D) Economic trends
E) Customers
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
10) Which of the following is not a true statement with respect to business processes?
A) Every business can be seen as a collection of business processes.
B) Analyzing business processes can enable you to achieve a clear understanding of how a
business actually works.
C) The efficiency of a business firm is not related to its business processes.
D) Information systems can automate many steps in business processes that were formerly
performed manually.
E) A business process may involve a unique way in which work, information, and knowledge are
coordinated within an organization.
AACSB: Analytical Thinking; Information Technology
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
4
11) Middle management is responsible for directing the day-to-day activities of the business.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
12) Operational-level manufacturing systems provide transaction-level information that enable
monitoring of the daily activities of a business.
AACSB: Analytical Thinking
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
13) Business processes that impede organizational responsiveness are a source of competitive
strength for a company.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
14) In a firm hierarchy, responsibility and accountability is concentrated at the top.
AACSB: Analytical Thinking
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
15) A business is a formal organization created to sell services or products at a profit.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
16) Every business process is tied to one specific functional area.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
5
17) Information systems found in nonprofit organizations are typically very similar to those
found in private industry.
AACSB: Application of Knowledge
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
18) What is the connection between organizations, information systems, and business processes?
AACSB: Reflective Thinking; Information Technology; Written and Oral Communication
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
19) Define and give an example of a cross-functional business process within a firm.
AACSB: Analytical Thinking; Written and Oral Communication
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
20) Why do businesses invest in information systems?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 2.1: What major features of a business are important for understanding the role of
information systems?
6
21) A computerized system that performs and records the daily activities necessary to conduct
business is classified as a(n):
A) executive support system.
B) management-level system.
C) decision support system.
D) transaction processing system.
E) business intelligence system.
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
22) Which type of system would you use to change a production schedule if a key supplier was
late in delivering goods?
A) ESS
B) CRM system
C) MIS
D) DSS
E) SCM system
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
23) A relocation control system that reports summaries on the total moving, house-hunting, and
home financing costs for employees in all company divisions would fall into the category of
a/an:
A) KMS.
B) TPS.
C) ESS.
D) MIS.
E) CRM system
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
7
24) The term management information systems refers to a specific category of information
systems serving:
A) integrated data processing throughout the firm.
B) transaction process reporting.
C) senior management.
D) middle management functions.
E) knowledge workers.
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
25) Which of the following systems are designed to summarize and report on the company’s
basic operations?
A) KMS
B) DSS
C) ESS
D) TPS
E) MIS
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
26) ________ support making decisions that are unique, rapidly changing, and not easily
specified in advance.
A) MIS
B) TPS
C) ESS
D) DSS
E) KWM
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
8
27) Which type of system would you use to determine the five suppliers with the worst record in
delivering goods on time?
A) ESS
B) TPS
C) MIS
D) DSS
E) CRM
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
28) Which of the following systems are especially suited to situations in which the procedure for
arriving at a solution may not be fully predefined in advance?
A) MIS
B) TPS
C) DSS
D) KMS
E) CRM
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
29) Which type of system would you use to forecast the return on investment if you used new
suppliers with better delivery track records?
A) ESS
B) TPS
C) MIS
D) DSS
E) CRM
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
9
30) DSS and MIS are also referred to as ________ systems.
A) business information
B) business intelligence
C) executive support
D) business model
E) expert
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
31) An ESS is an information system that supports the:
A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision-making and administrative activities of middle managers.
D) day-to-day processes of production.
E) management of customer relationships.
AACSB: Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
32) Which type of system would you use to determine what trends in your supplier’s industry
will affect your firm the most in five years?
A) ESS
B) TPS
C) MIS
D) DSS
E) KWM
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
10
33) Which of the following statements about Plan International’s new human resources system,
as described in the chapter case, is not true?
A) It took six months to implement a working system at Plan International’s international
headquarters.
B) The new system helps manage grants and donations received by Plan International.
C) The new system is cloud-based and delivers information on a secure mobile platform.
D) The new system enables employees to update their own personal information.
AACSB: Analytical Thinking; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
34) Which of the following systems are designed to support organization-wide process
coordination and integration?
A) DSS
B) MIS
C) CRM
D) Enterprise applications
E) ESS
AACSB: Application of Knowledge; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
35) A(n) ________ collects data from various key business processes and stores the data in a
single comprehensive data repository, usable by many parts of the business.
A) TPS
B) DSS
C) automatic reporting system
D) MIS
E) enterprise system
AACSB: Application of Knowledge; Information Technology
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?