Chapter 6

E-business system
1. Using the Internet and other networks for e-commerce, enterprise collaboration, and
Web-enabled business processes. E-business
2. Information systems that cross the boundaries of the functional areas of a business in
order to integrate and automate business processes. Cross-functional enterprise systems
3. Information systems that support marketing, production, accounting, finance, and human
resource management. Functional business systems
4. E-business applications fit into a framework of interrelated cross-functional enterprise
applications. Enterprise application architecture
5. Software that interconnects enterprise application systems. Enterprise application
integration
6. Information systems for customer relationship management, sales management, and
promotion management. Marketing information systems
7. Collaborating interactively with customers in creating, purchasing, servicing, and
improving products and services. Interactive marketing
8. Using mobile computing networks to support salespeople in the field. Sales force
automation
9. Information systems that support manufacturing operations and management.
Manufacturing information systems
10. A conceptual framework for simplifying and integrating all aspects of manufacturing
automation. Computer-integrated manufacturing
11. Using computers in a variety of ways to help manufacture products. Computer-aided
manufacturing
12. Use electronic communications, conferencing, and collaborative work tools to support
and enhance collaboration among teams and workgroups. Enterprise collaboration
systems
13. Using computers to operate a petroleum refinery. Process control
14. Using computers to help operate machine tools. Machine control
15. Information systems to support staffing, training and development, and compensation
administration. Human resource information systems
16. Using the Internet for recruitment and job hunting is an example. Online HRM systems
17. Accomplishes legal and historical record-keeping and gathers information for the
planning and control of business operations. Accounting information Systems
18. An example is using the Internet and extranets to do accounts receivable and accounts
payable activities. Online Accounting Systems
19. Handles sales orders from customers. Order processing
20. Keeps track of items in stock. Inventory Control
21. Keeps track of amounts owed by customers. Accounts receivable
22. Keeps track of purchases from suppliers. Accounts payable
23. Produces employee paychecks. Payroll
24. Produces the financial statements of a firm. General ledger
25. Information systems for cash management, investment management, capital budgeting,
and financial forecasting. Financial management systems
26. Performance monitoring and control systems for factory floor operations.
Manufacturing execution systems
27. Customizing advertising and promotion methods to fit their intended audience. Targeted
marketing
28. Data entry, transaction processing, database maintenance, document and report
generation, and inquiry processing. Transaction processing cycle
29. Collecting and periodically processing transaction data. Batch processing
30. Processing transaction data immediately after they are captured. Real-time processing
31. Systems that immediately capture and process transaction data and update corporate
databases. Online transaction processing systems

1. _______________ is defined as the use of the Internet and other networks and
information technologies to support electronic commerce, enterprise communication and
collaboration, and Web-enabled business processes, both within a networked enterprise
and with customers and business partners.

A. Electronic business
B. Enterprise collaboration
C. Cross-functional system management
D. Supply chain management
Ans A
2. _______________ systems cross the boundaries of traditional business functions in order
to reengineer and improve vital business processes all across the enterprise.

A. Electronic business
B. Enterprise collaboration
C. Cross-functional enterprise
D. Supply chain management Ans C

3. Networked enterprises view _______________ systems as a strategic way to use IT to

decentralize information resources.
A. electronic business
B. enterprise collaboration
C. cross-functional enterprise
D. supply chain management Ans C

4. Moving from mainframe-based legacy systems to integrated, cross-functional

client/server applications typically involves installing _______________ software.
A. enterprise resource planning
B. supply chain management
 C. customer relationship management
D. all of the choices are correct. Ans D

5. Instead of focusing on the information processing requirements of business functions,

enterprise software focuses on supporting integrated clusters of _______________
involved in the operations of a business.
A. application software
B. business processes
C. customer relationships
D. all of the choices are correct. Ans B
6. A(n) _______________ architecture illustrates the inter-relationships of the major cross-
functional enterprise applications that many companies have, or are installing, today.
A. enterprise application
B. enterprise operation
C. cross-functional
D. none of the choices are correct. Ans: A

7. Which of the following applications focuses on the efficiency of a firm's internal

production, distribution, and financial processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management Ans: B
8. Which of the following applications focuses on acquiring and retaining profitable
customers via marketing, sales, and service processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management Ans: A

9. Which of the following applications focuses on developing the most efficient and
effective sourcing and procurement processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management Ans: D

10. Which of the following applications focuses on tools that support group collaboration and
decision support?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management Ans C
 11. As described in the text, partner relationship management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes
B. Acquiring and retaining profitable customers via delivery of timely products
C. Acquiring and retaining partners who can enhance the selling and distribution of a
firm's products and services
D. Providing a firm's employees with tools that support group collaboration and decision
support Ans: C
12. According to the Ogilvy and Mather case, important elements in a global outlook include
all the following except:
A. Culture
B. Language
C. Dietary differences
D. Available bandwidth Ans C

13. Enterprise application integration (EAI) software enables users to model the business
processes and interactions that should occur between:
A. International divisions
B. Suppliers and customers
C. End users
D. Business applications Ans D

14. Enterprise application integration (EAI) software provides _______________ that performs
data conversion and subordination, and application communication and messaging services.
A. middleware
B. a legacy system
C. the telecommunication protocol
D. a business application Ans A

15. Distribution and manufacturing are _______________.

A. middleware Back office operations include processes
B. legacy systems used by employees that help keep the
business running. Accounting, finance,
C. back office systems inventory, order fulfillment, distribution,
and shipping are examples of back office
D. front office systems Ans C systems. Back office systems can be
manual or automated.

16. _______________ software can integrate the front-office and back

office systems applications of a business so they work together in a seamless, integrated way.
A. Customer relationship management (CRM)
B. Knowledge management (KM)
C. Enterprise application integration (EAI)
D. Supply chain management (SCM) Ans C
17. Customer service and sales order entry are _______________.

In hotel front office, computers

are used to create bills and
invoices, to monitor bookings and
reservations, to check-in and
check-out guests, to record guest
expenditure and share information
within and across the hotel.
A. middleware
B. legacy systems
C. back office systems
D. front office systems Ans D

18. _______________ are events that occur as part of doing business, such as sales, purchases,
deposits, withdrawals, refunds, and payments.
A. Items
B. Transactions
C. Occurrences
D. Processes Ans B

19. A transaction is _______________.

A. any exchange of goods
B. any business event that must be captured and recorded
C. an event requiring an exchange of money
D. any business process where an exchange of resources occurs Ans : B

20. Transaction processing systems play a vital role in supporting the _______________ of an e-
business enterprise.
A. customer service
B. product distribution
C. operations
D. systems architecture Ans D
21. Transaction processing systems are _______________ information systems that process data
resulting from the occurrence of business transactions.
A. customer relationship management (CRM)
B. knowledge management (KM)
C. operational accounting
D. cross-functional Ans D
22. Online transaction processing is considered a _______________ system because it captures
and processes transactions immediately.
A. customer service B. post-event
C. batch processing D. real time Ans D
23. The first step of the transaction processing cycle is _______________.
A. inquiry processing
B. document generation
C. transaction processing
D. data entry Ans D
24. _______________ update the corporate databases of an organization to reflect changes
resulting from day-to-day business transactions.
A. Online transaction processing (OLTP) systems
B. Enterprise application integration systems
C. Accounting processing systems
D. Transaction processing systems Ans D
25. Transaction processing systems process data in two basic ways: _______________ and
_______________.
A. Online processing, offline processing
B. Online/real-time processing, batch processing
C. Distributed processing, centralized processing
D. Replicated processing, distributed processing Ans B
26. _______________ systems are cross-functional information systems that enhance
communication and coordination among the members of business teams and workgroups.
A. Enterprise coordination
B. Enterprise integration
C. Enterprise collaboration
D. Transaction processing Ans C
27. The capabilities and potential of _______________ are driving the demand for better
enterprise collaboration tools in business.
A. the Internet
B. intranets
C. extranets
D. All of the choices are correct. Ans D
28. Electronic mail, voice mail, faxing, Web publishing, bulletin board systems, and paging are
considered _______________ tools.
A. electronic communication
B. collaborative work management
C. electronic conferencing
D. All of the choices are correct. Ans A
29. Which of the following is considered a collaborative work management tool?
A. Calendaring and scheduling
B. Instant messaging
C. Voice conferencing
D. Paging Ans A

30. Training in a virtual world is effective, but obstacles include both _______________.
A. technology and culture
B. hardware and software
C. front office and back office
D. suppliers and customers Ans A
31. Training in a virtual world can both _______________.
A. increase costs and increase efficiency
B. lower costs and lower efficiency
C. increase costs and lower efficiency
D. lower costs and increase efficiency Ans C

32. _______________ tools help people accomplish or manage group work activities.
A. Calendaring and scheduling
B. Task and project management
C. Collaborative work management
D. Knowledge management Ans C
33. Collaborative work management tools include all of the following except:
A. Calendaring and scheduling tools
B. Task and project management
C. Faxing, paging, and bulletin board systems
D. Knowledge management Ans C
34. A(n) _______________ business system is a type of information system that supports the
business functions of accounting, finance, marketing, operations management, and human
resource management.
A. functional B. inter-enterprise
C. collaboration D. enterprise resource Ans A

35. Marketing information systems can help marketing managers with:

A. Customer relationship management
B. Product planning and pricing
C. Targeted marketing strategies
D. All of the choices are correct. Ans D

36. Which of the following is considered a human resource business function?

A. Compensation analysis B. Payroll
C. Customer relationship management D. Sales force automation Ans A

37. Which of the following is considered a production/operations business function?

A. Personnel requirements forecasting
B. Process control
C. Investment management
D. Sales force automation Ans B
38. Which of the following is supported by the marketing business function?
A. Compensation analysis
B. Process control
C. Credit management
D. Sales force automation Ans D
39. All of the following are supported by the accounting business function except:
A. General ledger B. Inventory control
C. Capital budgeting D. Payroll Ans C
40. Providing website visitors with chat rooms, Web forms and questionnaires, and e-mail
correspondence opportunities enables companies to use _______________ to encourage
customers to become involved in product development, delivery, and service issues.
A. order processing
B. interactive marketing
C. sales force automation
D. None of the choices are correct. Ans B

41. Targeted marketing includes all of the following components except:

A. Online behavior
B. Content
C. Credit
D. Demographics/psychographics Ans C

42. Advertising and promotion efforts can be tailored to each visit to a site by an individual. This
strategy is based on a variety of tracking techniques, such as Web "__________" files recorded
on the visitor's disk drive from previous visits.
A. Virus B. Donut
C. Cookie D. Compressed Ans C

43. Many companies view sales force automation as a way to gain _______________ in sales
productivity and marketing responsiveness.
A. customer loyalty
B. strategic advantage
C. higher profits
D. demographic/psychographic customer statistics Ans B

44. _______________ information systems support the production/operations function that

includes all activities concerned with the planning and control of the processes producing goods
and services.
A. Finance B. Management
C. Marketing D. Manufacturing Ans D
45. Computer integrated manufacturing is an overall concept that stresses using computer-based
systems in manufacturing to do all the following, except:
A. Simplify production processes
B. Automate production processes
C. Integrate all production and support processes
D. Integrate collaboration and communication throughout the organization Ans D

46. The overall goal of computer-integrated manufacturing is to _______________ the

production and support processes.
A. simplify B. automate
C. segregate D. integrate Ans D

47. The overall goal of computer-integrated manufacturing is to integrate the _______________

and _______________ processes.
A. shipping, handling
B. sales, delivery
C. production, support
D. receiving, payment Ans C
48. Computer-integrated manufacturing systems support all of the following concepts except:
A. Flexible manufacturing systems
B. Inquiry processing
C. Agile manufacturing
D. Total quality management Ans B

49. When a manufacturer automates production of a product by installing computer systems to

monitor processes and robots to do some of the assembly tasks, it is an example of
____________________.
A. computer integrated manufacturing
B. computer-aided manufacturing
C. process control
D. task control Ans A

50. Accounting systems are among the ____________________, yet _______________

information systems in business.
A. newest, least used
B. newest, most widely used
C. oldest, least used
D. oldest, most widely used Ans D
51. According to the text, _______________ emphasize legal and historical record-keeping and
the production of accurate financial statements.
A. operational accounting systems
B. management accounting systems
C. cross-functional accounting systems
D. financial accounting systems Ans A

52. Which of the six essential accounting business systems mentioned in the text reflects changes
in inventory and provides shipping and reorder information?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing Ans C

53. Computer-based _______________ systems support business managers and professionals in

decisions concerning the financing of a business, and the allocation and control of financial
resources within a business.
A. accounting information
B. financial management
C. marketing information
D. management information Ans A

54. Which of the six essential accounting business systems mentioned in the text records
purchases from, amounts owed to, and payments to suppliers?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing Ans B