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Management Information Systems, 12e (Laudon)Chapter 1 Information Systems in Global Business Today1) Internet advertising is growing at approximately 10 percent a year.Answer: TRUEDiff: 3Page Ref: 6AACSB: Reflective ThinkingCASE: ContentObjective: 1.12) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.Answer: TRUEDiff: 1Page Ref: 11AACSB: Reflective ThinkingCASE: ContentObjective: 1.33) A fully digital firm produces only digital goods or services.Answer: FALSEDiff: 2Page Ref: 11AACSB: Reflective ThinkingCASE: ContentObjective: 1.14) A business model describes how a company produces, delivers, and sells a product or service to create wealth.Answer: TRUEDiff: 1Page Ref: 13AACSB: Reflective ThinkingCASE: ContentObjective: 1.35) 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: FALSEDiff: 2Page Ref: 15AACSB: Use of ITCASE: ContentObjective: 1.36) Computers are only part of an information system.Answer: TRUEDiff: 1Page Ref: 17AACSB: Use of ITCASE: ContentObjective: 1.37) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.Answer: FALSEDiff: 1Page Ref: 17AACSB: Use of ITCASE: ContentObjective: 1.38) The dimensions of information systems are management, organizations, and information technology.Answer: TRUEDiff: 2Page Ref: 18AACSB: Reflective ThinkingCASE: ContentObjective: 1.39) Knowledge workers assist with paperwork at all levels of the firm.Answer: FALSEDiff: 1Page Ref: 18AACSB: Reflective ThinkingCASE: ContentObjective: 1.210) There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.Answer: FALSEDiff: 1Page Ref: 18-19AACSB: Reflective ThinkingCASE: ContentObjective: 1.211) 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: TRUEDiff: 2Page Ref: 19-20AACSB: Analytic SkillsCASE: AnalysisObjective: 1.312) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.Answer: FALSEDiff: 2Page Ref: 19AACSB: Reflective ThinkingCASE: ContentObjective: 1.313) A substantial part of management responsibility is creative work driven by new knowledge and information.Answer: TRUEDiff: 1Page Ref: 20AACSB: Reflective ThinkingCASE: ContentObjective: 1.214) Intranets allow firms to work easily with third-party suppliers and vendors.Answer: FALSEDiff: 2Page Ref: 21AACSB: Use of ITCASE: ContentObjective: 1.215) An IT infrastructure provides the platform on which the firm can build its information systems.Answer: TRUEDiff: 1Page Ref: 21AACSB: Use of ITCASE: ContentObjective: 1.316) UPSs 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: TRUEDiff: 3Page Ref: 13, 22AACSB: Analytic SkillsCASE: AnalysisObjective: 1.217) Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.Answer: FALSEDiff: 2Page Ref: 26AACSB: Use of ITCASE: ContentObjective: 1.418) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments.Answer: TRUEDiff: 2Page Ref: 27AACSB: Reflective ThinkingCASE: ContentObjective: 1.419) A firm that invests in efficient business processes is making an investment in organizational complementary assets.Answer: TRUEDiff: 2Page Ref: 27AACSB: Reflective ThinkingCASE: ContentObjective: 1.420) The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.Answer: TRUEDiff: 2Page Ref: 29AACSB: Reflective ThinkingCASE: ContentObjective: 1.321) The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; andA) improved flexibility.B) improved decision making.C) improved business practices.D) improved efficiency.Answer: BDiff: 1Page Ref: 12AACSB: Use of ITCASE: ContentObjective: 1.222) Dell Computers 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 flexibilityB) improved business practicesC) competitive advantageD) survivalAnswer: CDiff: 3Page Ref: 14AACSB: Use of ITCASE: SynthesisObjective: 1.223) The use of information systems because of necessity describes the business objective ofA) survival.B) improved business practices.C) competitive advantage.D) improved flexibility.Answer: ADiff: 2Page Ref: 14AACSB: Use of ITCASE: ContentObjective: 1.224) 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 onlyB) 1 and 2C) 2 and 3D) 1, 2, and 3Answer: DDiff: 3Page Ref: 14AACSB: Analytic SkillsCASE: AnalysisObjective: 1.225) Verizons implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example ofA) improved flexibility.B) improved decision making.C) improved efficiency.D) customer and supplier intimacy.Answer: BDiff: 2Page Ref: 14AACSB: Use of ITCASE: AnalysisObjective: 1.226) 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 efficiencyB) customer and supplier intimacyC) survivalD) competitive advantageAnswer: CDiff: 2Page Ref: 14AACSB: Use of ITCASE: AnalysisObjective: 1.227) Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?A) operational excellenceB) new products and services C) competitive advantageD) customer support Answer: ADiff: 2Page Ref: 36-37AACSB: Analytic SkillsCASE: AnalysisObjective: 1.228) The three activities in an information system that produce the information organizations use to control operations areA) information retrieval, research, and analysis.B) input, output, and feedback.C) input, processing, and output.D) data analysis, processing, and feedback.Answer: CDiff: 1Page Ref: 16AACSB: Use of ITCASE: ContentObjective: 1.329) Order data for baseball tickets and bar code data are examples ofA) raw input.B) raw output.C) customer and product data.D) sales information.Answer: ADiff: 1Page Ref: 16AACSB: Use of ITCASE: ContentObjective: 1.330) The average number of tickets sold daily online is an example ofA) input.B) raw data.C) meaningful information.D) feedback.Answer: CDiff: 1Page Ref: 16AACSB: Use of ITCASE: AnalysisObjective: 1.331) OutputA) 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: DDiff: 1Page Ref: 16AACSB: Use of ITCASE: ContentObjective: 1.332) Converting raw data into a more meaningful form is calledA) capturing.B) processing.C) organizing.D) feedback.Answer: BDiff: 1Page Ref: 16AACSB: Use of ITCASE: ContentObjective: 1.333) An example of raw data from a national chain of automobile stores would beA) 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: CDiff: 3Page Ref: 16AACSB: Use of ITCASE: AnalysisObjective: 1.334) 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 calledA) information systems literacy.B) information systems architecture.C) management information systems.D) information technology infrastructure.Answer: CDiff: 2Page Ref: 17-18AACSB: Reflective ThinkingCASE: ContentObjective: 1.535) In a hierarchical organization, the upper levels consist ofA) managerial and professional employees.B) managerial, professional, and technical employees.C) professional and operational employees.D) managerial, professional, and operational employees.Answer: BDiff: 2Page Ref: 18AACSB: Reflective ThinkingCASE: ContentObjective: 1.236) Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?A) competitive advantageB) improved decision makingC) new products and servicesD) survivalAnswer: CDiff: 3Page Ref: 3-4, 12-15AACSB: Analytic SkillsCASE: AnalysisObjective: 1.237) The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a companys members is called itsA) culture.B) environment.C) atmosphere.D) values.Answer: ADiff: 1Page Ref: 20AACSB: Reflective ThinkingCASE: ContentObjective: 1.238) Thomas Friedmans declaration that the world was now flat meant thatA) 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: ADiff: 1Page Ref: 8AACSB: Reflective ThinkingCASE: ContentObjective: 1.239) Data management technology consists of theA) 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: CDiff: 2Page Ref: 20AACSB: Use of ITCASE: ContentObjective: 1.340) The hardware and software used to transfer data in an organization is calledA) data management technology.B) networking and data management technology.C) data and telecommunications technology.D) networking and telecommunications technology.Answer: DDiff: 2Page Ref: 20AACSB: Use of ITCASE: ContentObjective: 1.341) Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organizationsA) data management environment.B) networked environment.C) IT infrastructure.D) information system.Answer: CDiff: 2Page Ref: 21AACSB: Use of ITCASE: ContentObjective: 1.342) An example of a business using information systems to create new products and services isA) Wal-Marts RetailLink system.B) the Mandarin Oriental hotels customer-preference tracking system.C) Verizons Web-based digital dashboard.D) Apple Inc.s iPod.Answer: DDiff: 3Page Ref: 13AACSB: Use of ITCASE: AnalysisObjective: 1.143) An example of a business using information systems to attain operational excellence isA) Wal-Marts RetailLink system.B) the Mandarin Oriental hotels customer-preference tracking system.C) Verizons Web-based digital dashboard.D) Apple Inc.s iPod.Answer: ADiff: 3Page Ref: 12AACSB: Use of ITCASE: AnalysisObjective: 1.144) An example of a business using information systems for customer and supplier intimacy isA) Wal-Marts RetailLink system.B) the Mandarin Oriental hotels customer-preference tracking system.C) Verizons Web-based digital dashboard.D) Apple Inc.s iPod.Answer: BDiff: 2Page Ref: 13-14AACSB: Use of ITCASE: AnalysisObjective: 1.145) Maintaining the organizations financial records is a central purpose of which main business function?A) manufacturing and accountingB) finance and accountingC) sales and manufacturingD) finance and salesAnswer: BDiff: 1Page Ref: 19AACSB: Reflective ThinkingCASE: ContentObjective: 1.246) Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chains 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: EDiff: 3Page Ref: 12-15AACSB: Use of ITCASE: EvaluationObjective: 1.247) Which of the following would not be a complementary asset for a solar panel manufacturer?A) international solar equipment certification standardsB) government funding for green technologyC) centralized hierarchical decision making D) innovation-driven management teamAnswer: CDiff: 2Page Ref: 27AACSB: Analytic SkillsCASE: SynthesisObjective: 1.448) 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 intimacyB) survivalC) competitive advantageD) improved decision-makingAnswer: BDiff: 2Page Ref: 14AACSB: Analytic SkillsCASE: EvaluationObjective: 1.249) In a business hierarchy, the level that is responsible for monitoring the daily activities of the business isA) middle management.B) service workers.C) production management.D) operational management.Answer: DDiff: 2Page Ref: 18AACSB: Reflective ThinkingCASE: ContentObjective: 1.350) Which of the following are environmental actors that interact with an organization and its information systems?A) customersB) suppliersC) regulatory agenciesD) all of the aboveAnswer: DDiff: 2Page Ref: 17AACSB: Use of ITCASE: ContentObjective: 1.251) From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process calledA) the information value chain.B) the IT value chain.C) information processing.D) feedback.Answer: ADiff: 2Page Ref: 24AACSB: Use of ITCASE: ContentObjective: 1.252) 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) managerialB) governmentalC) socialD) organizationalAnswer: CDiff: 2Page Ref: 27AACSB: Analytic SkillsCASE: AnalysisObjective: 1.453) Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies toA) invest in technology.B) adopt a new business model.C) invest in complementary assets.D) modernize their information value chain.Answer: BDiff: 2Page Ref: 26-27AACSB: Use of ITCASE: ContentObjective: 1.154) An example of an organizational complementary asset isA) using the appropriate business model.B) a collaborative work environment.C) laws and regulations.D) all of the above.Answer: ADiff: 2Page Ref: 27AACSB: Reflective ThinkingCASE: ContentObjective: 1.455) An example of a social complementary asset isA) technology and service firms in adjacent markets.B) training programs.C) distributed decision-making rights.D) all of the above.Answer: ADiff: 2Page Ref: 27AACSB: Reflective ThinkingCASE: ContentObjective: 1.456) Disciplines that contribute to the technical approach to information systems areA) 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: BDiff: 3Page Ref: 28AACSB: Use of ITCASE: ContentObjective: 1.557) The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, isA) management science.B) MIS.C) operations research.D) utilization management.Answer: CDiff: 3Page Ref: 29AACSB: Reflective ThinkingCASE: ContentObjective: 1.55
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