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Package Title: Assessment Questions
Course Title: Intro IS 5e
Chapter Number: 2
Question Type: True/False
1. A business process has inputs and outputs
2. The activities of a business process can be measured
3. Cross-functional processes are executed within a single functional area.
4. The procurement process includes the sales function.
5. An organization’s business processes can create a competitive advantage.
6. A business process always includes information systems.
7. BPR is a strategy for improving the efficiency of an organization’s data collection.
8. BPM is an implementation of BPR.
9. BPM can improve an organization’s flexibility.
10. The overall performance of an organization has little to do with how well it manages
its business processes.
11. Business process management includes methods and tools to support the design,
analysis, implementation, management, and optimization of business processes.
12. Competitive advantage refers to making higher profits.
13. The business environment refers to the industry that a company is in.
14. Globalization is the integration and interdependence of many facets of life made
possible by rapid advances in information technology.
15. The information technology environment is the combination of social, legal,
economic, physical, and political factors that affect business activities.
16. In general, labor costs are higher in developed countries than in developing
countries.
17. Developed countries usually provide greater fringe benefits than developing
countries.
18. Information technology is facilitating the entry of a wide variety of employees into the
workforce.
19. Internet access in the United States is not particularly related to household income.
20. In general, government deregulation decreases competition.
21. Ethical issues are important because, if handled poorly, they can damage an
organization’s image.
22. Build-to-stock is a strategy of producing customized products and services.
23. In mass production, a company produces a large quantity of identical items.
24. In mass customization, companies produce items in large quantity, but they tailor the
items to meet the desires and needs of individual customers.
25. Customer intimacy is the process whereby a business learns as much as possible
about its customers to better anticipate and address their needs.
26. A growing IT initiative called green IT is enabling organizations to reduce their
carbon footprint.
27. The digital divide is the gap between data and knowledge.
28. The One Laptop per Child project aims to use technology to revolutionize how the
world can educate its children.
29. Competitive advantage helps a company function effectively within a market and
generate larger-than-average profits.
30. An information system that helps an organization gain a competitive advantage is
called a competitive information system.
31. Every competitive organization is driven by the competitive forces identified by
Michael Porter.
32. Michael Porter concludes that the overall impact of the Internet is to increase
competition, which generally diminishes a firm’s profitability.
33. The Internet increases traditional barriers to entry into a market.
34. The Internet decreases customers’ bargaining power.
35. Information-based industries face the greatest threat from substitutes.
36. The music industry is a good example of the extremely low variable costs of digital
products.
37. The introduction of the ATM in the banking industry is an example of the innovation
strategy.
38. An entry barrier is a long-term competitive advantage.
39. The bargaining power of suppliers is low when their buyers have many choices.
40. When there are many substitute products, a company can create a competitive
advantage by increasing fees.
41. Porter’s value chain model is a variation of his competitive advantage framework.
42. The primary activities in the value chain create the value for which customers are
willing to pay.
43. It’s a good idea for a company to select two competitive advantage strategies.
Question Type: Multiple Choice
44. Which of the following statements concerning business processes is false?
A. A process has inputs.
B. A process has outputs.
C. A process has activities that can be measured.
D. A process creates value.
E. A process cannot cross functional area boundaries.
46. Reconciling bank accounts is an example of a(n):
A. Accounting Business Process
B. Finance Business Process
C. Marketing Business Process
D. Production Business Process
E. Management Information Systems Business Process
47. Managing account collections is an example of a(n):
A. Accounting Business Process
B. Finance Business Process
C. Marketing Business Process
D. Production Business Process
E. Management Information Systems Business Process
48. Collecting sales tax is an example of a(n):
A. Accounting Business Process
B. Finance Business Process
C. Marketing Business Process
D. Production Business Process
E. Management Information Systems Business Process
49. Managing purchasing is an example of a(n):
A. Accounting Business Process
B. Finance Business Process
C. Marketing Business Process
D. Production Business Process
E. Management Information Systems Business Process
50. Managing pay and payroll is an example of a(n):
A. Accounting Business Process
B. Finance Business Process
C. Marketing Business Process
D. Human Resources Business Process
E. Management Information Systems Business Process
51. Which of the following processes involves the warehouse, purchasing, and
accounting functional areas?
A. Procurement
B. Fulfillment
C. Order entry
D. Accounts receivable
E. Payroll
52. Which of the following processes involves the warehouse, sales, and accounting
functional areas?
A. Procurement
B. Fulfillment
C. Order entry
D. Accounts Receivable
E. Payroll
53. Which of the following is not a role that information systems play in businesses
processes?
A. Establish standards
B. Execute the process
C. Capture and store process data
D. Monitor process performance
E. Detect problems with the process.
54. For many organizations, business process reengineering
A. Is easy to implement.
B. Is not disruptive to implement.
C. Has little impact on facilities.
D. Is inexpensive.
E. Has a major impact on the corporate culture.
55. Which of the following statements is false?
A. BPM is a task-oriented approach.
B. BPM can help companies reduce costs.
C. BPM can help companies increase revenue.
D. BPM can improve customer satisfaction.
E. BPM can improve organizational flexibility
56. Which of the following statements is false?
A. BPM begins with process modeling.
B. Process modeling is a graphical depiction of all the steps in a process.
C. BPM uses Web-enabled technologies for user interfaces.
D. Business activity monitoring is used to measure and manage business processes.
E. Business activity monitoring is a type of scheduled reporting.
57. Business pressures on organizations are created when there are changes in
A. Social factors
B. Economic factors
C. Legal factors
D. Political factors
E. Changes in all of the above will create business pressures.
58. Market pressures include which of the following?
A. the global economy
B. weak competition
C. a homogeneous workforce
D. weak customers
E. high-cost offshore labor
59. The workforce in developed countries is exhibiting all of the following trends except:
A. It is becoming more diversified.
B. It includes more women.
C. It includes more single parents.
D. It includes fewer persons with disabilities.
E. It includes more minority-group members.
60. Today’s customers have ________ .
A. less knowledge about products
B. less sophistication
C. difficulty in finding information about products
D. higher expectations
E. difficulty in comparing prices
61. Which of the following statements concerning technology pressures on modern
businesses is true?
A. Technology changes so rapidly that organizations should wait before they release
new technology-based products.
B. New technologies offer alternative service options.
C. New technologies will never replace existing technologies.
D. The amount of information on the Internet remains stable from year to year.
E. The important information on the Internet is fee-based.
62. Which of the following is not an example of the growing initiative called green IT?
A. Designing an IT infrastructure to support sustainability.
B. Building systems that monitor carbon throughout the organization.
C. Asking vendors about compliance on environmental standards.
D. Building computer applications that use less energy
E. Designing energy-efficient data centers.
63. The digital divide is an example of which type of societal pressure?
A. social responsibility
B. government regulations
C. protection against terrorism
D. ethics
E. information overload
64. Which one of the following statements is false?
A. Businesses tend to view government regulations as expensive constraints on their
activities.
B. Government deregulation reduces competition.
C. IT support is essential for compliance with many new regulations.
D. IT has been used to identify patterns of behavior associated with terrorist activities.
E. Information ethics can destroy the morale of a company’s employees.
65. Which of the following is not a Section Reference 1 by organizations to business
pressures?
A. Delay releases of innovated products.
B. Build strategic systems that enable an organization to increase market share or
profits.
C. Provide tools that satisfy customers so they don’t go to a competitor.
D. Manufacture customized goods at a lower cost.
E. Conduct business electronically with customers and business partners.
66. Producing identical items in large quantities is called:
A. strategic systems.
B. customer focus.
C. continuous improvement.
D. mass production.
E. mass customization.
67. Producing customized items in large quantities is called:
A. strategic systems.
B. customer focus.
C. continuous improvement.
D. mass production.
E. mass customization.
