MANAGEMEMT INFORMATION SYSTEMS_Test bank chapter 2

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

statement is true and ‘F’ if the statement is false. Question: Operational management is

responsible for directing the day-to-day operations of the business and therefore needs

transaction-level information. Answer:

Question: You would use an MIS to help decide whether to introduce a new product line.

Answer:

Question: Online collaboration tools eliminate the need for global firms to have

synchronous collaboration. Answer:

Question: Transaction processing systems are most commonly used by the senior

management level of an organization. Answer:

Question: A transaction processing system is a computerized system that performs and

records the daily routine transactions necessary to conduct business. Answer:

Question: A hotel reservation system is a typical example of a management information

system. Answer:

Question: Management information systems typically support nonroutine decision making.

Answer:

Question: Enrolling employees in benefits plans is a business process handled by the

finance and accounting function. Answer:

Question: Functional systems that support business processes within a single functional

group, such as human resources, are being phased out in favor of cross-functional systems.

Answer:

Question: Managers need TPSs to monitor the status of internal operations and the firm’s

relations with the external environment. Answer:

Question: Most MISs use sophisticated mathematical models or statistical techniques.

Answer:

Question: Decision-support systems help managers make decisions that are unique,

rapidly changing, and not easily specified in advance. Answer:

Question: Decision-support systems use internal information as well as information from

external sources. Answer:

Question: ESSs are designed to serve the middle management of the organization.

Answer:

Question: ESSs are designed to incorporate data about external events, but they also draw

summarized information from internal MIS and DSS. Answer:

Question: A Skype conference call using VOIP and webcams is an example of a remote,

synchronous collaboration tool. Answer:

Question: ESSs are designed primarily to solve specific problems. Answer:

Question: Information supplied by an enterprise system is structured around

cross-functional business processes. Answer:

Question: Enterprise systems often include transactions with customers and vendors.

Answer:

Question: Supply chain management systems are more externally oriented than enterprise

systems. Answer:

Question: An example of a collaboration tool that supports colocated, asynchronous

collaboration is A) a team room. B) e-mail. C) a MUD. D) a wall display. Answer:

Question: Identifying customers is a responsibility of the ________ function. A) finance

and accounting B) human resources C) manufacturing and production D) sales and

marketing Answer:

Question: Producing bills of materials is a business process within the ________ function.

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

and marketing Answer:

Question: Which of the following is an example of a cross-functional business process?

A) identifying customers B) creating a new product C) assembling a product D) paying

creditors Answer:

Question: Which type of system would you use to change a production schedule if a key

supplier was late in delivering goods? A) ESS B) TPS C) MIS D) DSS Answer:

Question: To monitor the status of internal operations and the firm’s relations with the

external environment, managers need ________ systems. A) decision-support B)

knowledge C) transaction processing D) management information Answer:

Question: Which systems are typically a major source of data for other systems? A)

transaction processing systems B) management information systems C) executive support

systems D) decision-support systems Answer:

Question: 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 Answer:

Question: 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) knowledge management systems. B) transaction processing

systems. C) executive support systems. D) management information systems. Answer:

Question: The term “management information systems” designates a specific category of

information systems serving A) integrated data processing throughout the firm. B)

transaction process reporting. C) employees with online access to historical records. D)

middle management functions. Answer:

Question: Non-typical business problems with causes and effects that are rapidly changing

are typically handled by which type of information system ? A) MIS B) TPS C) ESS D)

DSS Answer:

Question: ________ systems are especially suited to situations in which the procedure for

arriving at a solution may not be fully defined in advance. A) Management information B)

Transaction processing C) Decision-support D) Knowledge management Answer:

Question: 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

Answer:

Question: Which of the following is not one of the four main classifications for

collaboration tools identified by the space/time matrix? A) synchronous/colocated B) same

time/remote C) different time/remote D) remote/colocated Answer:

Question: All of the following statements regarding Lotus Notes are true except for A) It

began as an e-mail and messaging client. B) It is the most widely used collaboration tool at

Fortune 1000 companies. C) Firmwide installations at a large company require specialized

servers and may cost millions of dollars per year. D) It provides tools for e-mail, calendars,

help desk, CRM, blogs, and wikis. Answer:

Question: ESS are specifically designed to serve which level of the organization? A)

operational B) end-user C) middle management D) senior management Answer:

Question: Executive support systems are information systems that support 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. Answer:

Question: Which systems often deliver information to senior executives through a portal,

which uses a Web interface to present integrated personalized business content? A)

transaction processing systems B) executive support systems C) management information

systems D) decision-support systems Answer:

Question: 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 Answer:

Question: What is the most important function of an enterprise application? A) increasing

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 Answer:

Question: ________ are designed to support organization-wide process coordination and

integration. A) Decision-support systems B) Management information systems C) CRM

systems D) Enterprise applications Answer:

Question: The point-of-sale Pulse system used by Domino’s to maintain consistent and

efficient management functions in its restaurants is best categorized as which type of

system? A) TPS B) DSS C) CRM D) more than one of the above Answer:

Question: In Domino’s upgraded Pulse Evolution system, it incorporated a Pizza Tracker

functionality that shows the progression of individual pizza orders. This is an example of

using information systems to achieve which business objective? A) customer and supplier

intimacy B) survival C) improved decision making D) operational excellence Answer:

Question: The four major enterprise applications are A) SCMs, CRMs, DSSs, and KMSs.

B) SCMs, CRMs, ESSs, and KMSs. C) enterprise systems, SCMs, DSSs, and CRMs. D)

enterprise systems, SCMs, CRMs, and KMSs. Answer:

Question: Enterprise systems are also known as ________ systems. A) resource planning

B) enterprise resource planning C) enterprise support D) management information Answer:

Question: Enabling management to make better decisions regarding organizing and

scheduling sourcing, production, and distribution is a central feature of A) SCMs B) TPSs

C) KMSs D) ERPs Answer:

Question: ________ systems integrate supplier, manufacturer, distributor, and customer

logistics processes. A) Collaborative distribution B) Supply-chain management C) Reverse

logistics D) Enterprise planning Answer:

Question: ________ systems are designed to help firms manage their relationships with

their customers. A) CRM B) MIS C) CLE D) CLU Answer:

Question: Which types of systems consolidate the relevant knowledge and experience in

the firm to make it available to improve business processes and management decision

making? A) TPS B) extranets C) KMS D) CRM Answer:

Question: You are planning the launch of your new company, an application service

provider that provides an online timesheet and project tracking application. To best

communicate with and manage your relationship with your users, you would want to

implement a(n) A) extranet. B) intranet. C) KMS. D) CMS. Answer:

Question: All of the following are direct business benefits of collaboration, except for A)

improved quality. B) improved financial performance. C) improved customer service. D)

improved compliance with government regulations. Answer:

Question: Which of the following types of system helps expedite the flow of information

between the firm and its suppliers and customers? A) intranet B) extranet C) KMS D) TPS

Answer:

Question: Which of the following occupations would NOT be categorized as an

“interaction” job? A) sales representative B) business manager C) engineer D) operations

manager Answer:

Question: E-government refers to the application of ________ to digitally enable

government and public sector agencies’ relationships with citizens, businesses, and other

arms of government. A) the Internet and networking technologies B) e-commerce C)

e-business D) any computerized technology Answer:

Question: Which of the following decisions requires knowledge based on collaboration

and interaction? A) How long will it take to manufacture this product? B) Should we work

with with outside vendors on new products and services? C) In which geographical

locations are our products garnering the most sales? D) Which product design is the most

efficient for the user in terms of energy use? Answer:

Question: Buying or selling goods over the Internet is called A) e-commerce. B)

e-business. C) an intranet. D) an extranet. Answer:

Question: 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. Answer:

Question: The principal liaison between the information systems groups and the rest of the

organization is a(n) A) programmer. B) information systems manager. C) systems analyst.

D) CTO. Answer:

Question: A ________ is a senior manager who oversees the use of IT in the firm. A) CEO

B) CFO C) CIO D) CTO Answer:

Question: The ________ helps design programs and systems to find new sources of

knowledge or to make better use of existing knowledge in organizational and management

processes. A) CTO B) CSO C) CKO D) CPO Answer:

Question: The CPO is responsible for A) ensuring that the company complies with

existing data privacy laws. B) making better use of existing knowledge in organizational

and management processes. C) enforcing the firm’s information security policy. D)

overseeing the use of information technology in the firm. Answer:

Question: Which of the following types of collaboration tools allows you to communicate

with avatars using text messaging? A) virtual worlds B) screen sharing C) collaborative

writing D) large audience Webinars Answer:

Question: Which of the following roles falls into the duties of an information systems

manager? A) writing software instructions for computers B) acting as liaison between the

information systems group and the rest of the organization C) translating business

problems into information requirements D) managing data entry staff Answer:

Question: Which of the following statements about collaboration is not true? A) In

business, a collaboration can last as little as a few minutes. B) Business collaboration relies

on the formation of teams that are assigned a specific task or goal. C) Successful

collaboration can be achieved through technology regardless of the organization’s culture

or structure. D) One business benefit of collaboration is improved innovation. Answer:

Question: Which of the following is not one of the fifteen categories of collaborative

software tools? A) file sharing B) event scheduling C) white boarding D) extranets

Answer:

Question: You work for a highly successful advertiser that is just about to expand

nationally. Of utmost importance will be finding a way to store and disseminate their

clients’ continually updated branding guides, which include multiple image files and text

documents, to all of the firm’s branches. What system will best serve these needs? A) an

intranet with KMS capabilities B) an extranet with KMS capabilities C) a TPS with KMS

capabilities D) a CRM Answer:

Question: You have been hired by a worldwide non-profit agency to implement a system

to handle their donations. The system must be able to handle and record telephone, sms,

and Internet donations, provide up-to-the-minute reports, and create highly customizable

mailing lists. In addition, event fundraisers need to be able to quickly access a donor’s

information and history. Which of the following systems will best meet these needs? A)

TPS B) TPS with DSS capabilities C) TPS with MIS capabilities D) TPS with ESS

capabilities Answer:

Question: You have been hired by Inspiration Inc. to help improve their profit margin.

Inspiration Inc. is a business communications consultancy that services many clients in

different industries throughout the United States. The end products of the company are

customized recommendations for the best use of a client’s existing resources for improving

internal communications, typically delivered via documentation in different media. The

company has approximately 100 consultants, all of whom are located in their central

headquarters in Chicago. What system do you recommend to improve the company’s

business processes and increase their profit margin? A) extranet, to enable quick

collaboration over 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, for

minimizing redundant work on similar clients D) marketing system, for improving sales

levels Answer:

Question: A(n) ________ is a set of logically related activities for accomplishing a

specific business result. Answer:

Question: A Web interface used to present integrated personalized business content to

users is called a(n) ________. Answer:

Question: ________ applications span the entire firm, integrating information from

multiple functions and business processes to enhance the performance of the organization

as a whole. Answer:

Question: ________ systems are used by middle management to combine data and

sophisticated analytical models or data analysis tools to support nonroutine decision

making. Answer:

Question: IT ________ includes the strategy and policies for using information

technology within an organization. Answer:

Question: Applications that allow managers to interactively manipulate current and

historical data to discover patterns and trends that will help their decision-making are

referred to as ________. Answer:

Question: A state Web site that allows citizens to pay parking fines online is a form of

________. Answer:

Question: Supply chain management systems are one type of ________ system because

they automate the flow of information across organizational boundaries. Answer:

Question: ________ are highly trained technical specialists who write the software

instructions for computers. Answer:

Question: ________ are representatives of departments outside of the information systems

group for whom applications are developed. Answer:

Question: Identify and discuss the major types of information systems that serve the main

management groups within a business. What are the relationships among these systems?

Answer:

Question: You have been hired to work with 10 salespeople from different branches of a

national business in creating an online training site for new Sales employees. Identify six

collaboration tools that are available to help the team work together. Which single tool

would be the most helpful for the project, in your opinion, and why? Answer:

Question: Your aunt has asked you for your suggestions to make her business, a local

sandwich shop, more efficient. Describe at least three types of business processes that a

sandwich shop has. Can any be better coordinated through the use of information systems?

Answer:

Question: Describe the role of IT governance within the firm. Answer:

Question: Apex Vacuum, a family-owned manufacturer of budget vacuums, has grown

exponentially over the last few years. However, the company is having difficulty preparing

for future growth. The only information system used at Apex is an antiquated accounting

system. The company has one manufacturing plant located in Arkansas; and three

warehouses, in Arkansas, Delaware, and California. The Apex sales force is national, and

Apex purchases about a third of its vacuum parts and materials from a single overseas

supplier. You have been hired to recommend the information systems Apex should

implement in order to maintain their competitive edge. However, there is not enough

money for a full-blown, cross-functional enterprise application, and you will need to limit

the first step to a single functional area or constituency. What will you choose, and why?

Answer:

Question: Describe at least two benefits of using enterprise systems. Answer:

Question: You have been hired by an international architectural firm, with offices in

Singapore, Paris, and Mumbai. The firm would like architects and draftspeople from

different teams to be able to collaborate efficiently. How will you determine what the best

collaboration tools are for their needs? Answer:

Question: What is the connection between organizations, information systems, and

business processes? Answer:

Question: What are cross-functional business processes? Give an example. Answer:

Question: The retail home improvement chain you work for, DIY Discount, has noticed

that one of its brands of faucets is not selling nearly as well as anticipated. What

information systems of the business will you use to determine the reason for the poor

sales? Discuss what information you will retrieve from which system. Which of the

information systems will be most important for your analysis? Which of the systems will

be least important? Answer:

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