11
36) What is the most important benefit of an enterprise application?
A) Enabling speed of communicating
B) Enabling business functions and departments to share information
C) Enabling a company to work collaboratively with customers and suppliers
D) Enabling cost-effective, e-business processes
E) Enabling managers to make better decisions
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?
37) ________ systems integrate and share information from suppliers, manufacturers,
distributors, and logistics companies.
A) Collaborative distribution
B) Supply chain management
C) Reverse logistics
D) Enterprise planning
E) Digital dashboard
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?
38) ________ provide information to coordinate all of the business processes that deal with
customers in sales, marketing, and service to optimize revenue, customer satisfaction, and
customer retention.
A) TPS
B) MIS
C) ESS
D) CPS
E) CRM systems
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?
12
39) Which of the following can typically access a company’s intranet?
A) The general public
B) The firm’s employees
C) The firm’s customers
D) The firm’s suppliers
E) The firm’s outside contractors
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?
40) You manage the Information Systems department at a small startup Internet advertiser. You
need to set up an inexpensive system that allows customers to see real-time statistics, such as
views and click-throughs, about their current display ads. Which type of system will most
efficiently provide a solution?
A) CRM
B) Enterprise system
C) Extranet
D) Intranet
E) KWM
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?
41) Which of the following refers to the purchase or sale of goods and services over the Internet?
A) E-commerce
B) E-business
C) CRM
D) MIS
E) SCM
AACSB: Application of Knowledge
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
13
42) The use of digital technology and the Internet to execute the major business processes in the
enterprise is called:
A) e-commerce.
B) e-business.
C) enterprise applications.
D) MIS.
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?
43) You work for a highly successful advertiser that is about to expand nationally. Of utmost
importance will be finding a way to store and disseminate its clients’ frequently updated branding
and style guides throughout the organization. The guides include multiple image files and text
documents. What system will best serve these needs?
A) A wiki
B) An extranet with KMS capabilities
C) A TPS with KMS capabilities
D) A telepresence system
E) A virtual world
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?
44) You have been hired by Inspiration Inc. to help improve its profit margin. Inspiration Inc. is
a business communications consulting firm that services many clients in different industries
throughout the world. The firm provides its clients with customized written recommendations
about how to best use the client’s existing resources to improve the client’s internal
communications. The company has approximately 100 consultants, all of whom are located in its
central headquarters in Chicago. What system do you recommend to improve Inspiration Inc.‘s
business processes and increase its profit margin?
A) Extranet, to enable quick collaboration via the Internet, minimize the time spent
communicating with the client, and minimize the amount of paperwork needed
B) CRM, to maintain easily accessible customer records to minimize the time spent looking for
client data
C) KMS, to minimize redundant work on similar clients
D) Video conferencing system, to improve collaboration
E) MIS, to produce reports on the firm’s operations
AACSB: Analytical Thinking; 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?
14
45) The principal purpose of a TPS is to answer nonroutine questions and track the flow of
transactions through an organization.
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?
46) A TPS helps managers monitor the firm’s relations with the external environment.
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?
47) A payroll system is a typical example of an MIS.
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?
48) An MIS typically uses data supplied by a TPS.
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?
49) An MIS primarily supports routine decision making.
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?
50) Most MISs use sophisticated mathematical models or statistical techniques.
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?
15
51) Decision-support systems often use information from external sources.
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?
52) ESSs are designed to serve the middle management of the organization.
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?
53) ESSs are designed to incorporate data about external events, but they also draw summarized
information from internal MIS and DSS.
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?
54) ESSs are designed primarily to solve specific problems.
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?
55) Information supplied by an enterprise system is structured around cross-functional business
processes.
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?
56) Supply chain management systems are more externally oriented than enterprise systems.
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?
16
57) Enterprise systems do not utilize order transaction data.
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?
58) Knowledge management systems and customer relationship management systems are both
types of enterprise applications.
AACSB: Application of Knowledge
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
59) Identify the different types of systems used for the different levels of management in a
business.
AACSB: Information Technology; Written and Oral Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
17
60) Eternal Friend, a family-owned manufacturer of pet caskets, has grown exponentially over
the last few years. However, they are having difficulty in preparing for future growth. The only
information system used at Eternal Friend is an antiquated accounting system. The company has
one manufacturing plant located in Arkansas, and three warehouses, in Arkansas, Delaware, and
California. The Eternal Friend sales force is national, and Eternal Friend purchases most of its
raw materials from a single overseas supplier. You have been hired to recommend the
information systems Eternal Friend should implement in order to maintain their competitive
edge. However, there is not enough money for a full scale, cross-functional enterprise
application, and you will need to limit the first step to a single management level. What will you
choose, and why?
AACSB: Application of Knowledge; Information Technology; Written and Oral
Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
61) Describe at least two benefits of using enterprise systems.
AACSB: Analytical Thinking; Information Technology; Written and Oral Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
62) How can a good CRM system increase profits for a company?
AACSB: Analytical Thinking; Information Technology; Written and Oral Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
18
63) The automotive tire supply company you work for, Tires4U, has noticed that one of its
brands of tires is not selling nearly as well as anticipated at most of its locations. For each of the
four main types of information systems found in a business, identify a query that might help
understand this development. Of the four types of systems, which do you think will be the most
helpful and why?
AACSB: Application of Knowledge; Information Technology; Written and Oral
Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
64) What is a digital dashboard, and why are they becoming an increasingly popular tool?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
65) How have the technologies associated with e-business impacted government?
AACSB: Application of Knowledge; Written and Oral Communication
LO: 2.2: How do systems serve different management groups in a business and how do systems
that link the enterprise improve organizational performance?
19
66) From your reading of the chapter-opening case study discussing ABB’s use of enterprise
social networking, which of the following statements best expresses ABB’s experience?
A) ABB’s primary motivation for replacing its existing corporate intranet was to enhance its
security.
B) Implementing Yammer improved employee productivity and collaboration.
C) Efforts to implement Yammer were met with significant resistance from employees.
D) Yammer provided ABB with a single entry point to all the information and tools ABB
employees need for their jobs.
AACSB: Analytical Thinking; Information Technology
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?
67) Which of the following types of systems could be used to enable different firms to work
collaboratively on a product?
A) Intranet
B) Extranet
C) KMS
D) CRM
E) DSS
AACSB: Analytical Thinking; Information Technology
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?
68) Interaction jobs are those jobs which:
A) require close coordination and collaboration.
B) involve knowledge that can’t be put into an information system.
C) are performed typically by operational-level employees.
D) require intense levels of interaction with clients.
E) require an emphasis on innovation.
AACSB: Application of Knowledge; Interpersonal Relations and Teamwork
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?
20
69) In a business environment, the focus of collaboration is to:
A) accomplish the task at hand.
B) provide a sense of community.
C) foster better communication.
D) prevent miscommunication.
E) increase a firm’s profit margin.
AACSB: Application of Knowledge; Interpersonal Relations and Teamwork
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?
70) Which of the following statements is not true about collaboration in a business setting?
A) Collaboration may be a short-lived activity, lasting just a few minutes.
B) Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity.
C) Meaningful collaboration requires a supportive business firm culture and the right,
decentralized structure.
D) The evidence of the business benefits of collaboration is largely anecdotal.
E) Special types of information systems are available to support collaboration.
AACSB: Application of Knowledge; Interpersonal Relations and Teamwork
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?
71) Each of the following is required for successful collaboration, except:
A) open culture.
B) strong hierarchy.
C) decentralized structure.
D) breadth of collaboration.
E) appropriate collaboration technology.
AACSB: Analytical Thinking; Interpersonal Relations and Teamwork
LO: 2.3: Why are systems for collaboration and social business so important and what
technologies do they use?