Chapter 1 Business Information Systems in Your Career
Chapter 1 Business Information Systems in Your Career
Chapter 1 Business Information Systems in Your Career
21) As discussed in the chapter opening case, the Giants' new ticketing information systems is an
effort to achieve which of the primary business objectives?
A) Customer and supplier intimacy
B) Improved decision making
C) Operational excellence
D) New products and services
Answer: B
22) Journalist Thomas Friedman's description of the world as "flat" referred to:
A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
Answer: A
23) The six important business objectives of information system investment include all of the
following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
Answer: B
24) 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: A
25) All of the following choices describe ways for a company to achieve a competitive
advantage, except:
A) producing a superior product and charging less than competitors.
B) implementing information systems to support better management decision making.
C) garnering more sales and profits than your competitors.
D) using information systems to create new and popular products that your competitors cannot
duplicate.
Answer: B
26) 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.
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27) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
information system business objective of:
A) improved efficiency.
B) customer and supplier intimacy.
C) survival.
D) competitive advantage.
Answer: C
28) An information system can be defined technically as a set of interrelated components that
collect (or retrieve), process, store, and distribute information to support:
A) decision making and control in an organization.
B) communications and data flow.
C) managers analyzing the organization's raw data.
D) the creation of new products and services.
Answer: A
29) 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: C
31) The average number of tickets sold daily online is an example of:
A) input.
B) raw data.
C) meaningful information.
D) output.
Answer: C
32) 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 raw 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: D
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33) Converting raw data into a more meaningful form is called:
A) capturing.
B) processing.
C) organizing.
D) feedback.
Answer: B
34) An example of raw data from a national chain of automobile stores would be:
A) average of 13 Toyotas sold daily in Kentucky in 2007.
B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky.
C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky - $28000.
D) annual sales of Toyota RAV4s increased 2.4 percent.
Answer: C
35) Electronic computers and related software programs are the technical foundation, the tools
and materials, of:
A) all business procedures.
B) information accumulation.
C) modern information systems.
D) all industrialized countries.
Answer: C
36) 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: C
37) A hierarchy:
A) results in a clear-cut division of labor.
B) is composed primarily of experts trained for different functions.
C) is a pyramid structure of rising authority and responsibility.
D) is used primarily in large organizations to define job roles.
Answer: C
39) The fundamental set of assumptions, values, and ways of doing things that has been accepted
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by most of a company's members is called its:
A) culture.
B) environment.
C) atmosphere.
D) values.
Answer: A
42) A database that receives employee manual input of customer names and addresses is riddled
with errors and you have been charged with rectifying the situation. In taking an organizational
perspective of this problem, you would be considering:
A) the skill levels of the employees inputting the data.
B) the training given to the employees inputting the data.
C) the types of reviews in place for selecting data input personnel.
D) the types of automatic error checking provided by the input software.
Answer: C
43) Intranets:
A) are based on mainframe technology.
B) are multiple networks joined together.
C) are typically used to communicate with the business's trusted vendors.
D) use Internet technology for a private company network.
Answer: D
44) The first step in the four-step model of business problem solving is:
A) agreeing that a problem exists.
B) identifying the problem.
C) outlining the problem's causes.
D) assigning the problem to a problem solver.
Answer: B
46) Legal and regulatory compliance is an example of the ________ dimension of business
problems.
A) management
B) organizational
C) people
D) technology
Answer: C
47) You are a new manager at a plumbing supply manufacturer where there is an unusually high
number of returns for a new aerator for a high-end faucet in production. In viewing the problem
you determine that the primary cause is the improperly designed die cast for the aerator. Which
dimension of a business problem does this reflect?
A) People
B) Technology
C) Management
D) Organizational
Answer: A
48) Poor business processes is an example of the ________ dimension of business problems.
A) management
B) organizational
C) people
D) infrastructure
Answer: B
49) The owners of Speed-EZ, a new bike messenger service, are concerned about how they will
manage their messengers once they have left the office. This is a business problem that falls into
the:
A) management dimension.
B) people dimension.
C) organizational dimension.
D) technology dimension.
Answer: B
50) Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a
business problem that falls into the:
A) management dimension.
B) people dimension.
C) organizational dimension.
D) technical dimension.
Answer: C
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51) In choosing the best solution for a business problem, one of the most important
considerations is:
A) change management.
B) existing resources and skills.
C) employee training.
D) outcome measurement.
Answer: B
52) The final step in the four-step model of business problem solving is:
A) outcome.
B) implementation.
C) change management.
D) feedback.
Answer: B
53) Which of the following would not be considered part of the implementation phase of
problem solving?
A) Change management
B) Purchasing hardware for an information systems solution
C) Training an employee on new systems software
D) Evaluating a selection of software packages for implementing a new business process
Answer: D
54) The failure of NASA's initial solution to preventing the space shuttle shedding foam
illustrates:
A) the importance of training employees on new business processes.
B) the need to prepare for measuring outcomes of a business solution.
C) the continuous nature of problem solving.
D) the need to quickly adapt to new technological innovations.
Answer: C
56) A major criterion in deciding the most important perspectives of a business problem is:
A) implementation.
B) change management.
C) usefulness.
D) organizational needs.
Answer: C
57) Which of the following is an example of a business using information systems to create new
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products and services?
A) Apple's creation of the iPod
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to
become the world's largest auto maker
D) Verizon's Web-based digital dashboard providing real-time company information for
managers
Answer: A
58) An example of a business using information systems to attain competitive advantage is:
A) Apple's creation of the iPod.
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to
become the world's largest auto maker.
D) Verizon's Web-based digital dashboard providing real-time company information for
managers.
Answer: C
59) An example of a business using information systems for customer and supplier intimacy is:
A) Apple's creation of the iPod.
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to
become the world's largest auto maker.
D) Verizon's Web-based digital dashboard providing real-time company information for
managers.
Answer: B
62) Consider an information system in a moving company that analyzes travel patterns and
decides which routes are the most efficient for every van. The need for employees to follow
procedures to update this system with arrival and departure times would be considered a(n)
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________ element of the system.
A) organizational
B) managerial
C) people
D) technology
Answer: A
63) What is the estimated growth rate for information systems managers' jobs through 2020?
A) 15%
B) -1%
C) 45%
D) 5%
Answer: D
64) To make sure they stock clothes that their customers will purchase, a department store
implements a new application that analyzes spending levels at their stores and cross references
this data to popular clothing styles. This is an example of using information systems to support a
business strategy of:
A) new products, services, and business models.
B) survival.
C) customer and supplier intimacy.
D) improved decision making.
Answer: C
?
65) Financial managers work directly with ________ to ensure investments in information
systems help achieve corporate goals.
A) operations managers
B) senior managers
C) marketing managers
D) accounting managers
Answer: B
67) Assume you work for a package delivery service in a major metropolitan area and that the
business has been losing customers for several years. You have been asked to find a solution to
this problem, perhaps one which uses modern information technologies. What is the correct way
to proceed?
A) Look for solutions, evaluate the solutions, identify the problem more clearly, and then
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implement the solution.
B) Think about what solutions can be implemented, look for solution designs, evaluate the
designs, and then implement the solution.
C) Identify the problem, design alternative solutions, choose the best solution, and then
implement the solution.
D) Design solutions, evaluate and identify the problems, choose the best solution, and then
implement the solution.
Answer: C
69) The culture of UPS places service to the customer among the company's highest business
objectives, which is reflected in their use of information systems to enable customer tracking of
their packages. Based on your reading of Chapter 1, why is "culture" an important factor to
consider when building information system solutions to business problems?
A) Culture is one element that can be radically changed, not always for the better, by new
information systems.
B) Culture affects how information system solutions are implemented and used.
C) Culture is a cauldron of employee perspectives and conflicts, which can be used to improve
business processes.
D) Culture is the driving force behind decision making and innovation.
Answer: B
70) Based on your reading of the case discussing mobile handhelds in the workplace, PepsiCo's
custom iPhone app to coordinate deliveries enhances which of the following generic business
objectives?
A) New products, services, and business models
B) Survival
C) Improved decision making
D) Customer and supplier intimacy
Answer: D
73) The world's largest and most widely used network is:
A) usa.gov.
B) the Web.
C) the Internet.
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D) DARPAnet.
Answer: C
74) Detailed, preprogrammed instructions that control and coordinate the computer hardware
components in an information system describes:
A) software.
B) programming.
C) enterprise applications.
D) business intelligence.
Answer: A
75) ________ is a service provided by the Internet that uses universally accepted standards for
storing, retrieving, formatting, and displaying information in a page format.
A) FTP
B) E-mail
C) The Web
D) HTML
Answer: C
77) Which of the following is not one of the three major categories of business problem solving?
A) Environment
B) Organization
C) Technology
D) People
Answer: A
1) Suppliers, customers, employees, products and services, and ________ are the five basic
components with which businesses must deal.
A) the environment
B) manufacturing and production
C) sales and marketing
D) invoices and payments
E) technology
Answer: D
5) Employees that assist with paperwork at all levels of the firm are called:
A) data workers.
B) knowledge workers.
C) operational management.
D) service workers.
E) senior managers.
Answer: A
9) Which of the following is an example of a key force in a firm's broader, less immediate
environment?
A) Competitors
B) Regulations
C) Suppliers
D) Economic trends
E) Customers
Answer: D
10) Which of the following is not a true statement with respect to business processes?
A) Every business can be seen as a collection of business processes.
B) Analyzing business processes can enable you to achieve a clear understanding of how a
business actually works.
C) The efficiency of a business firm is not related to its business processes.
D) Information systems can automate many steps in business processes that were formerly
performed manually.
E) A business process may involve a unique way in which work, information, and knowledge are
coordinated within an organization.
Answer: C
21) A computerized system that performs and records the daily activities necessary to conduct
business is classified as a(n):
A) executive support system.
B) management-level system.
C) decision support system.
D) transaction processing system.
E) business intelligence system.
Answer: D
22) Which type of system would you use to change a production schedule if a key supplier was
late in delivering goods?
A) ESS
B) CRM system
C) MIS
D) DSS
E) SCM system
Answer: E
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23) 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/an:
A) KMS.
B) TPS.
C) ESS.
D) MIS.
E) CRM system
Answer: D
24) The term management information systems refers to a specific category of information
systems serving:
A) integrated data processing throughout the firm.
B) transaction process reporting.
C) senior management.
D) middle management functions.
E) knowledge workers.
Answer: D
25) Which of the following systems are designed to summarize and report on the company's
basic operations?
A) KMS
B) DSS
C) ESS
D) TPS
E) MIS
Answer: E
26) ________ support making decisions that are unique, rapidly changing, and not easily
specified in advance.
A) MIS
B) TPS
C) ESS
D) DSS
E) KWM
Answer: D
27) 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
E) CRM
Answer: C
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28) Which of the following systems are especially suited to situations in which the procedure for
arriving at a solution may not be fully predefined in advance?
A) MIS
B) TPS
C) DSS
D) KMS
E) CRM
Answer: C
29) 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
E) CRM
Answer: D
32) 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
E) KWM
Answer: A
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33) Which of the following statements about Plan International's new human resources system,
as described in the chapter case, is not true?
A) It took six months to implement a working system at Plan International's international
headquarters.
B) The new system helps manage grants and donations received by Plan International.
C) The new system is cloud-based and delivers information on a secure mobile platform.
D) The new system enables employees to update their own personal information.
Answer: A
34) Which of the following systems are designed to support organization-wide process
coordination and integration?
A) DSS
B) MIS
C) CRM
D) Enterprise applications
E) ESS
Answer: D
35) A(n) ________ collects data from various key business processes and stores the data in a
single comprehensive data repository, usable by many parts of the business.
A) TPS
B) DSS
C) automatic reporting system
D) MIS
E) enterprise system
Answer: E
37) ________ systems integrate and share information from suppliers, manufacturers,
distributors, and logistics companies.
A) Collaborative distribution
B) Supply chain management
C) Reverse logistics
D) Enterprise planning
E) Digital dashboard
Answer: B
38) ________ provide information to coordinate all of the business processes that deal with
customers in sales, marketing, and service to optimize revenue, customer satisfaction, and
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customer retention.
A) TPS
B) MIS
C) ESS
D) CPS
E) CRM systems
Answer: E
40) You manage the Information Systems department at a small startup Internet advertiser. You
need to set up an inexpensive system that allows customers to see real-time statistics, such as
views and click-throughs, about their current display ads. Which type of system will most
efficiently provide a solution?
A) CRM
B) Enterprise system
C) Extranet
D) Intranet
E) KWM
Answer: C
41) Which of the following refers to the purchase or sale of goods and services over the Internet?
A) E-commerce
B) E-business
C) CRM
D) MIS
E) SCM
Answer: A
42) 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.
E) KWM.
Answer: B
43) You work for a highly successful advertiser that is about to expand nationally. Of utmost
importance will be finding a way to store and disseminate its clients' frequently updated branding
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and style guides throughout the organization. The guides include multiple image files and text
documents. What system will best serve these needs?
A) A wiki
B) An extranet with KMS capabilities
C) A TPS with KMS capabilities
D) A telepresence system
E) A virtual world
Answer: B
44) You have been hired by Inspiration Inc. to help improve its profit margin. Inspiration Inc. is
a business communications consulting firm that services many clients in different industries
throughout the world. The firm provides its clients with customized written recommendations
about how to best use the client's existing resources to improve the client's internal
communications. The company has approximately 100 consultants, all of whom are located in its
central headquarters in Chicago. What system do you recommend to improve Inspiration Inc.'s
business processes and increase its profit margin?
A) Extranet, to enable quick collaboration via 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, to minimize redundant work on similar clients
D) Video conferencing system, to improve collaboration
E) MIS, to produce reports on the firm's operations
Answer: A
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66) From your reading of the chapter-opening case study discussing ABB's use of enterprise
social networking, which of the following statements best expresses ABB's experience?
A) ABB's primary motivation for replacing its existing corporate intranet was to enhance its
security.
B) Implementing Yammer improved employee productivity and collaboration.
C) Efforts to implement Yammer were met with significant resistance from employees.
D) Yammer provided ABB with a single entry point to all the information and tools ABB
employees need for their jobs.
Answer: B
67) Which of the following types of systems could be used to enable different firms to work
collaboratively on a product?
A) Intranet
B) Extranet
C) KMS
D) CRM
E) DSS
Answer: B
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69) In a business environment, the focus of collaboration is to:
A) accomplish the task at hand.
B) provide a sense of community.
C) foster better communication.
D) prevent miscommunication.
E) increase a firm's profit margin.
Answer: A
70) Which of the following statements is not true about collaboration in a business setting?
A) Collaboration may be a short-lived activity, lasting just a few minutes.
B) Collaboration is a many-to-many activity as opposed to a one-to-one or one-to-many activity.
C) Meaningful collaboration requires a supportive business firm culture and the right,
decentralized structure.
D) The evidence of the business benefits of collaboration is largely anecdotal.
E) Special types of information systems are available to support collaboration.
Answer: B
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72) A wiki is a type of collaborative:
A) social network.
B) blogging.
C) virtual world.
D) website.
E) MIS.
Answer: D
75) What analytical framework discussed in the chapter helps understand and evaluate the
benefits and uses of collaboration tools?
A) Cost/use matrix
B) Task/time matrix
C) Space/cost matrix
D) Time/space matrix
E) Time/cost matrix
Answer: D
76) Cisco's WebEx is an example of which of the following types of collaboration tools?
A) Blog
B) Team room
C) Online meeting
D) Group calendar
E) Wiki
Answer: C
77) Which of the following Google tools allows people to engage in group video chat?
A) Google Drive
B) Google Docs
C) Google Apps for Business
D) Google Circles
E) Google Hangouts
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Answer: E
78) Instant messaging, videoconferencing, and shared screens are all examples of ________
collaboration tools.
A) bimodal
B) colocated
C) synchronous
D) spontaneous
E) asynchronous
Answer: C
79) Supply chain management systems are considered to be a(n) ________ because they
automate the flow of information across company boundaries.
A) KMS
B) enterprise system
C) MIS
D) interorganizational system
E) cross-functional system
Answer: D
80) ________ technology allows a videoconference participant to give the appearance of being
present at a location other than his or her true physical location.
A) Telepresence
B) Virtual reality
C) Screen sharing
D) Mind mapping
E) Virtual world
Answer: A
81) Which of the following best describes the type of information systems FWO implemented, as
discussed in the chapter case?
A) ESS
B) DSS
C) TPS
D) KMS
E) Cloud collaboration service
Answer: E
82) As discussed in the chapter case, what is the primary reason why Spacebook failed?
A) It was too expensive to implement.
B) It was designed and developed without taking the organization's culture into consideration.
C) It did not include enough collaboration tools.
D) Its user interface was confusing.
E) It was riddled with technical issues.
Answer: B
90) Which of the following is most likely to have direct responsibility for ensuring that his or her
company complies with existing data privacy laws?
A) CPO
B) CKO
C) CIO
D) CIP
E) CSO
Answer: A
91) 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) CIO.
E) CSO.
Answer: C
92) A ________ is a senior manager who oversees the use of IT in the firm.
A) CEO
B) CFO
C) CIO
D) CIT
E) CPO
Answer: C
93) Development and support services for a firm's business systems are provided by:
A) IT educational services.
B) IT management services.
C) data management services.
D) IT standards services.
E) application software services.
Answer: E
94) Policies that determine which information technology will be used, when, and how, are
provided by:
A) IT educational services.
B) IT management services.
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C) application software services.
D) IT standards services.
E) data management services.
Answer: D
96) Which of the following would be primarily responsible for enterprise-wide governance and
usage of information to maximize the value of an organization's data?
A) CKO
B) CPO
C) end users
D) CDO
E) CSO
Answer: D
97) Which of the following is not a service typically provided by an information systems
department?
A) Telecommunications services
B) Physical facilities management services
C) Data management services
D) Project management services
E) Human resources services
Answer: E
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