Exam
Name___________________________________
1. Internet advertising is growing at approximately 10 percent a year.
2. Developing a new product, fulfilling an order, and hiring a new employee are examples of business
processes.
3. A fully digital firm produces only digital goods or services.
4. A business model describes how a company produces, delivers, and sells a product or service to create
wealth.
5. 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.
6. Computers are only part of an information system.
7. Information systems literacy describes the behavioral approach to information systems, whereas computer
literacy describes the technical approach.
8. The dimensions of information systems are management, organizations, and information technology.
9. Knowledge workers assist with paperwork at all levels of the firm.
10. There are four major business functions: sales and marketing; manufacturing and production; finance and
accounting; and information technology.
11. 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.
12. Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an
organization.
13. A substantial part of management responsibility is creative work driven by new knowledge and information.
14. Intranets allow firms to work easily with third–party suppliers and vendors.
15. Investment in IT is over 50% of all invested capital.
16. 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.
17. Studies have consistently shown that firms that invest greater amounts in information technology receive
greater benefits than firms that invest less.
18. Government and private sector standards are examples of complementary social assets required to optimize
returns from IT investments.
19. A firm that invests in efficient business processes is making an investment in organizational complementary
assets.
20. The behavioral approach to information systems leaves aside technical solutions to instead analyze the
psychological, social, and economic impacts of systems.
21. 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 business practices.
B) improved efficiency.
C) improved decision making.
D) improved flexibility.
22. 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) competitive advantage
C) improved business practices
D) survival
23. 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
24. The use of information systems because of necessity describes the business objective of
A) competitive advantage.
B) improved flexibility.
C) survival.
D) improved business practices.
25. 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 efficiency.
B) improved decision making.
C) improved flexibility.
D) customer and supplier intimacy.
26. 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) survival
B) customer and supplier intimacy
C) competitive advantage
D) improved efficiency
27. Which of the following objectives best describes the business strategy behind the technologies implemented
in Disney’s Operational Command Center, as discussed in the chapter case?
A) new products and services
B) customer support
C) operational excellence
D) competitive advantage
28. The three activities in an information system that produce the information organizations use to control
operations are
A) input, processing, and output.
B) input, output, and feedback.
C) data analysis, processing, and feedback.
D) information retrieval, research, and analysis.
29. Order data for baseball tickets and bar code data are examples of
A) raw input.
B) customer and product data.
C) sales information.
D) raw output.
30. The average number of tickets sold daily online is an example of
A) raw data.
B) input.
C) feedback.
D) meaningful information.
31. Output
A) transfers processed information to the people who will use it or to the activities for which it will be
used.
B) is feedback that has been processed to create meaningful information.
C) is information that is returned to appropriate members of the organization to help them evaluate the
input stage.
D) transfers data to the people who will use it or to the activities for which it will be used.
32. Converting raw data into a more meaningful form is called
A) processing.
B) organizing.
C) capturing.
D) feedback.
33. An example of raw data from a national chain of automobile stores would be
A) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
B) an average of 13 Toyotas are sold daily in Kentucky.
C) 30 percent increase in Toyota RAV4 sales during September in Kentucky.
D) all of the above.
34. 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 technology infrastructure.
C) information systems architecture.
D) management information systems.
35. In a hierarchical organization, the upper levels consist of
A) managerial, professional, and operational employees.
B) managerial and professional employees.
C) professional and operational employees.
D) managerial, professional, and technical employees.
36. Which of the following is not one of the current changes taking place in information systems technology?
A) growing business use of “big data”
B) growth in cloud computing
C) emerging mobile platform
D) development of videopresence software
37. 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) values.
C) environment.
D) atmosphere.
38. Thomas Friedman’s declaration that the world was now “flat” meant that
A) global capitalism is homogenizing culture and business practices throughout the world.
B) the Internet has reduced the economic advantages of developed countries.
C) globalization is starting to offer less advantage to large corporations.
D) the global economy is increasingly commanded by fewer and larger corporations.
39. Data management technology consists of the
A) detailed, preprogrammed instructions that control and coordinate the computer hardware components
in an information system.
B) software governing the organization of data on physical storage media.
C) hardware and software used to transfer data.
D) physical hardware and media used by an organization for storing data.
40. Organizational culture is best described by which of the following statements?
A) It is a set of assumptions and values accepted by most members.
B) It encompasses the sum of beliefs and assumptions by all members.
C) It reflects the senior management’s perspective on the organization and goals.
D) It enables the organization to transcend the different levels and specialties of its employees.
41. 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) networked environment.
B) data management environment.
C) IT infrastructure.
D) information system.
42. An example of a business using information systems to create new products and services is
A) Verizon’s Web–based digital dashboard.
B) the Mandarin Oriental hotel’s customer–preference tracking system.
C) Wal–Mart’s RetailLink system.
D) Apple Inc.’s iPod.
43. An example of a business using information systems to attain operational excellence is
A) Wal–Mart’s RetailLink system.
B) Apple Inc.’s iPod.
C) Verizon’s Web–based digital dashboard.
D) the Mandarin Oriental hotel’s customer–preference tracking system.
44. An example of a business using information systems for customer and supplier intimacy is
A) the Mandarin Oriental hotel’s customer–preference tracking system.
B) Apple Inc.’s iPod.
C) Verizon’s Web–based digital dashboard.
D) Wal–Mart’s RetailLink system.
45. Maintaining the organization’s financial records is a central purpose of which main business function?
A) manufacturing and accounting
B) finance and sales
C) finance and accounting
D) sales and manufacturing
46. Which of the following is not one of the primary environmental actors that interacts with an organization and
its information systems?
A) customers
B) regulatory agencies
C) suppliers
D) sales force
47. Which of the following best describes the primary reason for implementing a new information system, from
a business perspective?
A) The system is in use by our primary competitors.
B) The system will create new value for the firm, beyond its costs.
C) The system will automate key business processes.
D) The system enables the firm to create new products and services.
48. Which of the following would not be a complementary asset for a solar panel manufacturer?
A) centralized hierarchical decision making
B) government funding for green technology
C) innovation–driven management team
D) international solar equipment certification standards
49. 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) improved decision making
B) customer and supplier intimacy
C) competitive advantage
D) survival
50. In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
A) operational management.
B) service workers.
C) middle management.
D) production management.
51. From a business perspective, raw data is transformed systematically during various stages, transforming it
into valuable information, in a process called
A) information processing.
B) the IT value chain.
C) the information value chain.
D) feedback.
52. 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) organizational
B) governmental
C) managerial
D) social
53. Apple Computer dominates the online legal music sales industry primarily because of a failure of recording
label companies to
A) adopt a new business model.
B) modernize their information value chain.
C) invest in complementary assets.
D) invest in technology.
54. An example of an organizational complementary asset is
A) using the appropriate business model.
B) laws and regulations.
C) a collaborative work environment.
D) all of the above.