MANAGEMEMT INFORMATION SYSTEMS_Test bank chapter 1

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Exam Name___________________________________ TRUE/FALSE. Write ‘T’ if the

statement is true and ‘F’ if the statement is false. Question: Internet advertising is growing

at approximately 10 percent a year. Answer:

Question: Developing a new product, fulfilling an order, and hiring a new employee are

examples of business processes. Answer:

Question: A fully digital firm produces only digital goods or services. Answer:

Question: A business model describes how a company produces, delivers, and sells a

product or service to create wealth. Answer:

Question: Information technology (IT) consists of all the hardware that a firm needs to use

in order to achieve its business objectives, whereas information systems consist of all the

software and business processes needed. Answer:

Question: Computers are only part of an information system. Answer:

Question: Information systems literacy describes the behavioral approach to information

systems, whereas computer literacy describes the technical approach. Answer:

Question: The dimensions of information systems are management, organizations, and

information technology. Answer:

Question: Knowledge workers assist with paperwork at all levels of the firm. Answer:

Question: There are four major business functions: Sales and marketing; manufacturing

and production; finance and accounting; and information technology. Answer:

Question: In order to understand how a specific business firm uses information systems,

you need to know something about the hierarchy and culture of the company. Answer:

Question: Business processes are logically related tasks for accomplishing tasks that have

been formally encoded by an organization. Answer:

Question: A substantial part of management responsibility is creative work driven by new

knowledge and information. Answer:

Question: Intranets allow firms to work easily with third-party suppliers and vendors.

Answer:

Question: An IT infrastructure provides the platform on which the firm can build its

information systems. Answer:

Question: UPS’s use of Web-based tools that allow customers to embed UPS functions

such as tracking and cost calculations into their own Web sites was an information systems

solution used to achieve customer intimacy. Answer:

Question: Studies have consistently shown that firms who invest greater amounts in

information technology receive greater benefits than firms that invest less. Answer:

Question: Government and private sector standards are examples of complementary social

assets required to optimize returns from IT investments. Answer:

Question: A firm that invests in efficient business processes is making an investment in

organizational complementary assets. Answer:

Question: The behavioral approach to information systems leaves aside technical

solutions to instead analyze the psychological, social, and economic impacts of systems.

Answer:

Question: The six important business objectives of information technology are new

products, services, and business models; customer and supplier intimacy; survival;

competitive advantage; operational excellence; and A) improved flexibility. B) improved

decision making. C) improved business practices. D) improved efficiency. Answer:

Question: Dell Computer’s use of information systems to improve efficiency and

implement “mass customization” techniques to maintain consistent profitability and an

industry lead illustrates which business objective? A) improved flexibility B) improved

business practices C) competitive advantage D) survival Answer:

Question: The use of information systems because of necessity describes the business

objective of A) survival. B) improved business practices. C) competitive advantage. D)

improved flexibility. Answer:

Question: Which of the following choices may lead to competitive advantage: (1) new

products, services, and business models; (2) charging less for superior products; (3)

responding to customers in real time? A) 1 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3

Answer:

Question: Verizon’s implementation of a Web-based digital dashboard to provide

managers with real-time information such as customer complaints is an example of A)

improved flexibility. B) improved decision making. C) improved efficiency. D) customer

and supplier intimacy. Answer:

Question: The move of retail banking to use ATMs after Citibank unveiled its first ATMs

illustrates the use of information systems to achieve which business objective? A)

improved efficiency B) customer and supplier intimacy C) survival D) competitive

advantage Answer:

Question: The three activities in an information system that produce the information

organizations use to control operations are A) information retrieval, research, and analysis.

B) input, output, and feedback. C) input, processing, and output. D) data analysis,

processing, and feedback. Answer:

Question: Order data for baseball tickets and bar code data are examples of A) raw input.

B) raw output. C) customer and product data. D) sales information. Answer:

Question: The average number of tickets sold daily online is an example of A) input. B)

raw data. C) meaningful information. D) feedback. Answer:

Question: Output A) is feedback that has been processed to create meaningful

information. B) is information that is returned to appropriate members of the organization

to help them evaluate the input stage. C) transfers data to the people who will use it or to

the activities for which it will be used. D) transfers processed information to the people

who will use it or to the activities for which it will be used. Answer:

Question: Converting raw data into a more meaningful form is called A) capturing. B)

processing. C) organizing. D) feedback. Answer:

Question: An example of raw data from a national chain of automobile stores would be A)

an average of 13 Toyotas are sold daily in Kentucky. B) 30 percent increase in Toyota RAV

4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2008 in

Louisville, Kentucky. D) all of the above. Answer:

Question: The field that deals with behavioral issues as well as technical issues

surrounding the development, use, and impact of information systems used by managers

and employees in the firm is called A) information systems literacy. B) information

systems architecture. C) management information systems. D) information technology

infrastructure. Answer:

Question: In a hierarchical organization, the upper levels consist of A) managerial and

professional employees. B) managerial, professional, and technical employees. C)

professional and operational employees. D) managerial, professional, and operational

employees. Answer:

Question: Which of the following business objectives best describes the strategy behind

the use of technology in the new Yankee Stadium? A) competitive advantage B) improved

decision making C) new products and services D) survival Answer:

Question: The fundamental set of assumptions, values, and ways of doing things that has

been accepted by most of a company’s members is called its A) culture. B) environment.

C) atmosphere. D) values. Answer:

Question: Thomas Friedman’s declaration that the world was now “flat” meant that A) the

Internet has reduced the economic advantages of developed countries. B) globalization is

starting to offer less advantage to large corporations. C) the global economy is increasingly

commanded by fewer and larger corporations. D) global capitalism is homogenizing

culture and business practices throughout the world. Answer:

Question: Data management technology consists of the A) physical hardware and media

used by an organization for storing data. B) detailed, preprogrammed instructions that

control and coordinate the computer hardware components in an information system. C)

software governing the organization of data on physical storage media. D) hardware and

software used to transfer data. Answer:

Question: The hardware and software used to transfer data in an organization is called A)

data management technology. B) networking and data management technology. C) data

and telecommunications technology. D) networking and telecommunications technology.

Answer:

Question: Networking and telecommunications technologies, along with computer

hardware, software, data management technology, and the people required to run and

manage them, constitute an organization’s A) data management environment. B)

networked environment. C) IT infrastructure. D) information system. Answer:

Question: An example of a business using information systems to create new products and

services is A) Wal-Mart’s RetailLink system. B) the Mandarin Oriental hotel’s

customer-preference tracking system. C) Verizon’s Web-based digital dashboard. D) Apple

Inc.’s iPod. Answer:

Question: An example of a business using information systems to attain operational

excellence is A) Wal-Mart’s RetailLink system. B) the Mandarin Oriental hotel’s

customer-preference tracking system. C) Verizon’s Web-based digital dashboard. D) Apple

Inc.’s iPod. Answer:

Question: An example of a business using information systems for customer and supplier

intimacy is A) Wal-Mart’s RetailLink system. B) the Mandarin Oriental hotel’s

customer-preference tracking system. C) Verizon’s Web-based digital dashboard. D) Apple

Inc.’s iPod. Answer:

Question: Maintaining the organization’s financial records is a central purpose of which

main business function? A) manufacturing and accounting B) finance and accounting C)

sales and manufacturing D) finance and sales Answer:

Question: Based on the examples in the chapter, if you were asked to formulate a plan for

a regional drive-in restaurant chain’s efforts to use information technology to develop a

loyal customer base, what would be the best use of information technology from the list

below? A) Use IT to increase supplier loyalty. B) Use IT to increase operational efficiency.

C) Use IT to create new products and business models. D) Use IT to help survive

government reporting requirements. E) Use IT to achieve customer intimacy. Answer:

Question: Which of the following would not be a complementary asset for a solar panel

manufacturer? A) international solar equipment certification standards B) government

funding for green technology C) centralized hierarchical decision making D)

innovation-driven management team Answer:

Question: The temp agency that you own is having serious difficulties placing temps

because few of them are familiar with Internet research. Investing in training software to

enhance your workers’ skills is an example of using technology to achieve which business

objective? A) customer and supplier intimacy B) survival C) competitive advantage D)

improved decision-making Answer:

Question: In a business hierarchy, the level that is responsible for monitoring the daily

activities of the business is A) middle management. B) service workers. C) production

management. D) operational management. Answer:

Question: Which of the following are environmental actors that interact with an

organization and its information systems? A) customers B) suppliers C) regulatory

agencies D) all of the above Answer:

Question: From a business perspective, raw data is transformed systematically during

various stages, transforming it into valuable information, in a process called A) the

information value chain. B) the IT value chain. C) information processing. D) feedback.

Answer:

Question: A corporation that funds a political action committee, which in turn promotes

and funds a political candidate who agrees with the values of that corporation, could be

seen as investing in which main category of complementary assets? A) managerial B)

governmental C) social D) organizational Answer:

Question: Apple Computer dominates the online legal music sales industry primarily

because of a failure of recording label companies to A) invest in technology. B) adopt a

new business model. C) invest in complementary assets. D) modernize their information

value chain. Answer:

Question: An example of an organizational complementary asset is A) using the

appropriate business model. B) a collaborative work environment. C) laws and regulations.

D) all of the above. Answer:

Question: An example of a social complementary asset is A) technology and service firms

in adjacent markets. B) training programs. C) distributed decision-making rights. D) all of

the above. Answer:

Question: Disciplines that contribute to the technical approach to information systems are

A) computer science, engineering, and networking. B) operations research, management

science, and computer science. C) engineering, utilization management, and computer

science. D) management science, computer science, and engineering. Answer:

Question: The discipline that focuses on mathematical techniques for optimizing

parameters of organizations, such as transportation and inventory control, is A)

management science. B) MIS. C) operations research. D) utilization management.

Answer:

Question: Sociologists study information systems with an eye to understanding A) how

systems affect individuals, groups, and organizations. B) how human decision makers

perceive and use formal information. C) how new information systems change the control

and cost structures within the firm. D) the production of digital goods. Answer:

Question: Psychologists study information systems with an eye to understanding A) how

systems affect individuals, groups, and organizations. B) how human decision makers

perceive and use formal information. C) how new information systems change the control

and cost structures within the firm. D) the production of digital goods. Answer:

Question: The costs for firms operating on a global scale have been drastically reduced by

A) networking technology. B) investments in organizational complementary assets. C) the

Internet. D) the rise of digital content. Answer:

Question: Which of the following are key corporate assets? A) intellectual property, core

competencies, and financial and human assets B) production technologies and business

processes for sales, marketing, and finance C) knowledge and the firm’s tangible assets,

such as goods or services D) time and knowledge Answer:

Question: Overproduction or underproduction of goods and services, misallocation of

resources, and poor response times are the results of a firm’s having A) poor relationships

with suppliers. B) poor relationships with customers. C) inadequate information. D) a

surplus of information. Answer:

Question: A firm that must invest in new information systems capabilities in order to

comply with federal legislation can be said to be investing to achieve which business

objective? A) customer intimacy B) operational excellence C) survival D) improved

reporting Answer:

Question: Which of the following would NOT be used as an input for an information

system? A) digital dashboard B) handheld computer C) bar-code scanner D) cell phone

Answer:

Question: Which field of study focuses on both a behavioral and technical understanding

of information systems? A) sociology B) operations research C) economics D)

management information systems Answer:

Question: The three principal levels within a business organization hierarchy are A) senior

management, operational management, and service workers. B) senior management,

middle management, and operational management. C) senior management, operational

management, and information systems. D) senior management, middle management, and

service workers. Answer:

Question: Engineers, scientists, or architects, who design new products or services for a

firm, belong to which level of a business hierarchy? A) middle management B) production

workers C) knowledge workers D) data workers Answer:

Question: Which main business function is responsible for maintaining employee records?

A) sales and marketing B) human resources C) finance and accounting D) manufacturing

and production Answer:

Question: Which of the following constitutes an organizational element in the UPS

tracking system described in the chapter? A) the specification of procedures for identifying

packages with sender and recipient information B) monitoring service levels C) promoting

the company strategy of low-cost, superior service D) the use of handheld computers and

networks for managing package delivery Answer:

Question: A managerial element in the UPS tracking system described in the chapter is A)

taking inventory. B) providing package status reports to customers. C) the decision to use

automation. D) in-house package tracking software. Answer:

Question: ________ is data that has been shaped into a form that is meaningful to human

beings. Answer:

Question: ________ is output returned to appropriate members of the organization to help

them evaluate or correct the input stage. Answer:

Question: Computer ________ consists of the detailed, preprogrammed instructions that

control and coordinate the computer hardware components in an information system.

Answer:

Question: ________ is a global network that uses universal standards to connect millions

of different networks around the world. Answer:

Question: The ________ is a service provided by the Internet that uses universally

accepted standards for storing, retrieving, formatting, and displaying information in a page

format. Answer:

Question: ________ are private corporate networks extended to authorized users outside

the organization. Answer:

Question: The key elements of an organization are its people, structure, business

processes, politics, and ________. Answer:

Question: In a(n) ________ perspective, the performance of a system is optimized when

both the technology and the organization mutually adjust to one another until a satisfactory

fit is obtained. Answer:

Question: ________ makes long-range strategic decisions about the firm’s products and

services. Answer:

Question: Investments in organization and management, such as investments in new

business models and training, are also known as ________. Answer:

Question: Define operational excellence. How can information systems help achieve it?

Answer:

Question: You work for an auto manufacturer and distributor. How could you use

information systems to achieve greater customer intimacy? Answer:

Question: What is the difference between information technology and information

systems? Describe some of the functions of information systems. Answer:

Question: You are a marketing manager for a national movie theater chain. Give an

example of data that your department could use for creating meaningful information. What

type of information could that data produce? Answer:

Question: Define business process. What might be a business process used at a hospital?

Answer:

Question: You are starting a small bike messenger company. Given your type of services

(hand-delivering packages within a small geographical area), could your firm be a digital

firm? If so, what would make this a digital firm? Answer:

Question: This chapter discusses how each organization has its own culture and sets of

values shared by most of its members. What kind of shared values might you find at a law

firm? Answer:

Question: You work at the business headquarters for a chain of movie theaters. Describe

this firm’s information value chain. Answer:

Question: How does a company’s use of information systems affect its corporate

strategies? Provide an example. Answer:

Question: The information systems of Accenture, a global consulting firm, allow for a

highly decentralized organization without a traditional headquarters. Based on your

reading of Chapter 1, which of the six strategic business objectives does Accenture’s

information systems contribute to? Answer:

Complete Solution: