chapter1 test.

txt

MULTIPLE CHOICE. Choose the one alternative that best completes the statement
or answers the question.
1) 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 1) _______

A) improved business value.

B) improved efficiency.
C) improved business practices.
D) improved decision making.
E) improved flexibility.

2) Verizon Corporation's use of a Web-based digital dashboard to provide

managers with precise real-time information illustrates which business
objective? 2) _______

A) improved flexibility
B) survival
C) competitive advantage
D) customer and supplier intimacy
E) improved decision making

3) 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? 3) _______

A) 1, 2, and 3 B) 1 and 2 C) 1 and 3 D) 1 only E) 2 and 3

4) The use of information systems because of necessity describes the business

objective of 4) _______
A) improved flexibility.
B) competitive advantage.
C) survival.
D) operational excellence.
E) improved business practices.

5) The Mandarin Oriental hotel's use of computer systems to keep track of

guests' preferences is an example of 5) _______
A) customer and supplier intimacy.
B) operational excellence.
C) improved flexibility.
D) improved decision making.
E) improved efficiency.

6) 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?
6) _______

A) improved efficiency
B) improved decision making
C) competitive advantage
Page 1
 chapter1 test.txt
D) survival
E) customer and supplier intimacy

7) Which of the following objectives best describes the business strategy behind
the technologies implemented by the San Francisco Giants, as discussed in the
chapter case? 7) _______

A) operational excellence
B) competitive advantage
C) customer support
D) survival
E) customer and supplier intimacy

8) An example of a business using information systems to create new products and

services is 8) _______
A) Verizon's Web-based digital dashboard.
B) Wal-Mart's RetailLink system.
C) the San Francisco Giants play tracking system.
D) the Mandarin Oriental hotel's customer-preference tracking system.
E) Apple Inc.'s iPod.

9) An example of a business using information systems to attain operational

excellence is 9) _______
A) Apple Inc.'s iPod.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Citibank's ATMs.
D) Wal-Mart's Retail Link system.
E) Verizon's Web-based digital dashboard.

10) An example of a business using information systems for customer and supplier
intimacy is 10) ______
A) the Mandarin Oriental hotel's customer-preference tracking system.
B) Citibank's ATMs.
C) Apple Inc.'s iPod.
D) Wal-Mart's Retail Link system.
E) Verizon's Web-based digital dashboard.

11) 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? 11) ______

A) survival
B) operational excellence
C) new products and services
D) customer and supplier intimacy
E) improved decision making

12) Apple Computer dominates the online legal music sales industry primarily
because of a failure of recording label companies to 12) ______

A) invest in technology.
Page 2
 chapter1 test.txt
B) modernize their information value chain.
C) adopt a new business model.
D) assemble accurate data.
E) invest in complementary assets.

13) All of the following are advantages, for a firm, of cloud computing except
13) ______
A) ability to improve communication.
B) ability to rely on markets to build value.
C) ability to support mobile computing.
D) ability to reduce data storage costs.
E) ability to support remote work.

14) Which of the following are key corporate assets? 14) ______
A) knowledge and the firm's tangible assets, such as goods or services
B) production technologies and business processes for sales, marketing, and
finance
C) significant business relationships
D) intellectual property, core competencies, and financial and human assets
E) time and knowledge

15) A firm that must invest in new information systems capabilities in order to
comply with federal legislation can be said to be investing to achieve which
business objective? 15) ______

A) operational excellence
B) improved decision making
C) customer intimacy
D) survival
E) improved reporting

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
16) Internet advertising is growing at approximately 15 percent a year. 16)
______

17) Developing a new product, hiring a new employee, and fulfilling an order are
examples of business processes. 17) ______

18) A fully digital firm produces only digital goods or services. 18)
______

19) A business model describes how a company produces, delivers, and sells a
product or service to create wealth. 19) ______

20) Investment in IT is 33% of all invested capital. 20) ______

SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
21) ________ is known as the enormous volume of data generated by Internet
activity, such as Web traffic and e-mail. 21) _____________

Page 3
 chapter1 test.txt
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
22) You are starting a small bike messenger company. Given your type of services
(hand-delivering packages within a small geographical area), could your firm be
a digital firm? If so, what would make this a digital firm?

23) What are the main changes taking place in organizational use of information
systems? Which of these do you think is having the greatest impact on
businesses?

MULTIPLE CHOICE. Choose the one alternative that best completes the statement
or answers the question.
24) The three activities in an information system that produce the information
organizations use to control operations are 24) ______

A) data, information, and analysis.

B) information retrieval, research, and analysis.
C) input, processing, and output.
D) input, output, and feedback.
E) data analysis, processing, and feedback.

25) Order data for baseball tickets and bar code data are examples of 25)
______
A) sales information.
B) customer and product data.
C) information systems.
D) raw output.
E) raw input.

26) The average number of tickets sold daily online is an example of 26)
______
A) meaningful information.
B) input.
C) processing.
D) feedback.
E) raw data.

27) Output 27) ______

A) is feedback that has been processed to create meaningful information.
B) converts raw input into a meaningful form.
C) is information that is returned to appropriate members of the organization to
help them evaluate the input stage.
D) transfers processed information to the people who will use it or to the
activities for which it will be used.
E) transfers data to the people who will use it or to the activities for which
it will be used.

28) Converting raw data into a more meaningful form is called 28) ______
A) processing. B) capturing. C) feedback. D) organizing. E)
analysis.

29) An example of raw data from a national chain of automobile stores would be
29) ______
Page 4
 chapter1 test.txt
A) 30-percent increase in Toyota RAV4 sales during September in Kentucky.
B) 10-percent improvement in sales projections for Toyota sales next year.
C) an average of 13 Toyotas are sold daily in Kentucky.
D) 1 Toyota RAV4 sold March 3, 2013, in Louisville, Kentucky.
E) a demographic breakdown of all Toyota buyers in the past year.

30) In a hierarchical organization, the upper levels consist of 30) ______

A) managerial, professional, and operational employees.
B) knowledge workers.
C) professional and operational employees.
D) managerial, professional, and technical employees.
E) managerial and professional employees.

31) Which of the following is not one of the current changes taking place in
information systems technology? 31) ______
A) growing business use of "big data"
B) growth in cloud computing
C) increased usage of social networking by business
D) growth in the PC platform
E) emerging mobile platform

32) 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 32) ______

A) environment.
B) ethos.
C) culture.
D) values.
E) atmosphere.

33) Thomas Friedman's declaration that the world was now "flat" meant that
33) ______
A) globalization is starting to offer less advantage to large corporations.
B) the global economy is increasingly commanded by fewer and larger
corporations.
C) global capitalism is homogenizing culture and business practices throughout
the world.
D) the Internet has reduced the economic advantages of developed countries.
E) global shipping rates have reached historic lows.

34) Data management technology consists of the 34) ______

A) physical hardware and media used by an organization for storing data.
B) software governing the organization of data on physical storage media.
C) two or more computers to share data or resources.
D) hardware and software used to transfer data.
E) detailed, preprogrammed instructions that control and coordinate the computer
hardware components in an information system.

35) Which of the following statements best describes organizational culture?

35) ______
A) It enables the organization to transcend the different levels and specialties
of its employees.
Page 5
 chapter1 test.txt
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 is a set of assumptions and values accepted by most members.
E) It allows a company to achieve greater operational efficiency.

36) 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 36) ______

A) IT infrastructure.
B) data management environment.
C) networked environment.
D) culture.
E) information system.

37) Maintaining the organization's financial records is a central purpose of

which main business function? 37) ______
A) sales and manufacturing
B) human resources
C) manufacturing and accounting
D) finance and sales
E) finance and accounting

38) Which of the following is not one of the primary environmental actors that
interacts with an organization and its information systems? 38) ______

A) sales force
B) customers
C) suppliers
D) competitors
E) regulatory agencies

39) Which of the following best describes the primary reason for implementing a
new information system, from a business perspective? 39) ______

A) The system enables the firm to create new products and services.
B) The system integrates well with the Web.
C) The system will automate key business processes.
D) The system is in use by our primary competitors.
E) The system will create new value for the firm, beyond its costs.

40) Which of the following would not be a complementary asset for a solar panel
manufacturer? 40) ______
A) international solar equipment certification standards
B) subsidies for adoption of solar energy
C) innovation-driven management team
D) government funding for green technology
E) centralized hierarchical decision making

41) In a business hierarchy, the level that is responsible for monitoring the
daily activities of the business is 41) ______
Page 6
 chapter1 test.txt
A) knowledge workers.
B) production management.
C) service workers.
D) operational management.
E) middle management.

42) From a business perspective, raw data is transformed systematically during

various stages, transforming it into valuable information, in a process called
42) ______

A) feedback.
B) the information value chain.
C) the IT value chain.
D) dissemination.
E) information processing.

43) 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? 43) ______

A) social
B) organizational
C) auxiliary
D) managerial
E) governmental

44) An example of an organizational complementary asset is 44) ______

A) laws and regulations.
B) a collaborative work environment.
C) the Internet.
D) using the appropriate business model.
E) strong senior management.

45) An example of a social complementary asset is 45) ______

A) distributed decision-making rights.
B) incentives for management innovation.
C) a strong IS development team.
D) training programs.
E) technology and service firms in adjacent markets.

46) Which of the following roles in a firm would be least affected by using
mobile devices to access firm information systems? 46) ______

A) knowledge workers
B) production workers
C) senior executives
D) sales executives
E) operational managers

47) Which of the following would not be used as an input for an information
system? 47) ______
Page 7
 chapter1 test.txt
A) cell phone
B) digital dashboard
C) barcode scanner
D) handheld computer
E) RFID reading

48) The three principal levels within a business organization hierarchy are
48) ______
A) senior management, operational management, and information systems.
B) senior management, middle management, and operational management.
C) senior management, middle management, and service workers.
D) senior management, operational management, and service workers.
E) senior management, data workers, and service workers.

49) Engineers, scientists, or architects, who design new products or services

for a firm, belong to which level of a business hierarchy? 49) ______

A) knowledge workers
B) data workers
C) middle management
D) service workers
E) production workers

50) Which main business function is responsible for maintaining employee

records? 50) ______
A) manufacturing and production
B) middle management
C) human resources
D) sales and marketing
E) finance and accounting

51) Which of the following constitutes an organizational element in the UPS

tracking system described in the chapter? 51) ______

A) the use of handheld computers and networks for managing package delivery
B) promoting the company strategy of low-cost, superior service
C) the specification of procedures for identifying packages with sender and
recipient information
D) monitoring service levels
E) a Web-based Post Sales Order Management System

52) A managerial element in the UPS tracking system described in the chapter is
52) ______
A) in-house package tracking software.
B) taking inventory.
C) providing package status reports to customers.
D) ability to embed UPS functions in external sites.
E) the decision to use automation.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
53) Information technology (IT) consists of all the hardware that a firm needs
Page 8
 chapter1 test.txt
to use in order to achieve its business objectives, whereas information systems
consist of all the software and business processes needed. 53) ______

54) Computers make up the entirety of an information system. 54) ______

55) Information systems literacy describes the behavioral approach to

information systems, whereas computer literacy describes the sociotechnical
approach. 55) ______

56) The three main dimensions of information systems are management,

organizations, and information technology. 56) ______

57) Knowledge workers make long-range strategic decisions about products and
services. 57) ______

58) There are four major business functions: human resources; manufacturing and
production; finance and accounting; and information technology. 58) ______

59) You need to know something about the hierarchy and culture of the company in
order to understand how a specific business firm uses information systems
59) ______

60) All business processes are formally documented by an organization. 60)

______

61) Creative work driven by new knowledge and information is an insignificant

part of management responsibility. 61) ______

62) Intranets link different systems and networks within a firm. 62) ______

63) 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. 63) ______

64) There is little variation in returns on IT investment across firms. 64)

______

65) Laws and regulations creating fair, stable market environments are examples
of complementary social assets required to optimize returns from IT investments.
65) ______

66) A firm that invests in a strong IS development team is making an investment

in organizational complementary assets. 66) ______

67) The behavioral approach to information systems leaves aside technical

solutions to instead analyze the psychological, social, and economic impacts of
systems. 67) ______

SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
68) ________ is data that has been shaped into a form that is meaningful to
human beings. 68) _____________
Page 9
 chapter1 test.txt

69) ________ is output returned to appropriate members of the organization to

help them evaluate or correct the input stage. 69) _____________

70) The key elements of an organization are its structure, business processes,
politics, culture, and ________. 70) _____________

71) ________ makes long-range strategic decisions about the firm's products and
services. 71) _____________

72) Detailed, programmed instructions that control computer hardware components

in an information system are known as computer ________. 72) _____________

73) ________ is a global network that uses universal standards to connect

millions of different networks around the world. 73) _____________

74) The ________ is a service provided by the Internet that uses universally
accepted standards for storing, retrieving, formatting, and displaying
information in a page format. 74) _____________

75) ________ are private corporate networks extended to authorized users outside
the organization. 75) _____________

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
76) Define operational excellence. How can information systems help achieve it?

77) You work for an auto manufacturer and distributor. How could you use
information systems to achieve greater customer intimacy?

78) What is the difference between information technology and information

systems? Describe some of the functions of information systems.

79) You are a marketing manager for a national movie theater chain. Give an
example of data that your department could use for creating meaningful
information. What type of information could that data produce?

80) Define business process. What might be a business process used at a

hospital?

81) This chapter discusses how each organization has its own culture and sets of
values shared by most of its members. What kind of shared values might you find
at a law firm?

82) You work at the business headquarters for a chain of movie theaters.
Describe this firm's information value chain.

83) How does a company's use of information systems affect its corporate
strategies? Provide an example.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement
or answers the question.
84) The field that deals with behavioral issues as well as technical issues
Page 10
 chapter1 test.txt
surrounding the development, use, and impact of information systems used by
managers and employees in the firm is called 84) ______

A) business processes.
B) information systems architecture.
C) management information systems.
D) information systems literacy.
E) information technology infrastructure.

85) Disciplines that contribute to the technical approach to information systems

are 85) ______
A) engineering, utilization management, and computer science.
B) operations research, management science, and computer science.
C) economics, sociology, and psychology.
D) management science, computer science, and engineering.
E) computer science, engineering, and networking.

86) The discipline that focuses on mathematical techniques for optimizing

parameters of organizations, such as transportation and inventory control, is
86) ______

A) utilization management.
B) MIS.
C) computer science.
D) operations research.
E) management science.

87) Sociologists study information systems with an eye to understanding 87)

______
A) the production of digital goods.
B) how new information systems change the control and cost structures within the
firm.
C) mathematically based models and physical technology.
D) how systems affect individuals, groups, and organizations.
E) how human decision makers perceive and use formal information.

88) Psychologists study information systems with an eye to understanding

88) ______
A) mathematically based models and physical technology.
B) how human decision makers perceive and use formal information.
C) how new information systems change the control and cost structures within the
firm.
D) how systems affect individuals, groups, and organizations.
E) the production of digital goods.

89) Which field of study focuses on both a behavioral and technical

understanding of information systems? 89) ______
A) sociology
B) management information systems
C) economics
D) behavioral computing
E) operations research
Page 11
 chapter1 test.txt

SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
90) In a(n) ________ perspective, the performance of a system is optimized when
both the technology and the organization mutually adjust to one another until a
satisfactory fit is obtained. 90) _____________

1) D

2) E

3) C

4) C

5) A

6) D

7) B

8) E

9) D

10) A

11) A

12) C

13) A

14) D

15) D

16) TRUE

17) TRUE

18) FALSE

19) TRUE

20) TRUE

21) Big data

22) Being a digital firm doesn't purely rely on having digital goods and
Page 12
 chapter1 test.txt
services. A digital firm would have most of its relationships with customers,
suppliers, and employees be digitally enabled. Ordering deliveries, assigning
deliveries, managing employees and assignments could certainly be digitally
enabled; using cell phones, information systems, and handheld devices to connect
customers, delivery management, and bike messengers.

23) The main organizational changes taking place are:

1. businesses using social networks to connect with customers and
suppliers,
2. businesses expanding their use of the mobile platform, and
3. increase in collaboration, with customers and suppliers more connected
by networks to the firm and able to contribute in new products and services.
Student answers as to the greatest impact will vary. An example answer is: The
increase in collaboration is having the greatest impact, as customers are
essentially gaining greater control in determining the end product; businesses
who are flexible enough to listen to and respond to customer demand will be more
successful.

24) C

25) E

26) A

27) D

28) A

29) D

30) D

31) D

32) C

33) D

34) B

35) D

36) A

37) E

38) A

39) E

40) E

Page 13
 chapter1 test.txt
41) D

42) B

43) A

44) D

45) E

46) B

47) B

48) B

49) A

50) C

51) C

52) E

53) FALSE

54) FALSE

55) FALSE

56) TRUE

57) FALSE

58) FALSE

59) TRUE

60) FALSE

61) FALSE

62) TRUE

63) TRUE

64) FALSE

65) TRUE

66) TRUE

Page 14
 chapter1 test.txt
67) TRUE

68) Information

69) Feedback

70) people

71) Senior management

72) software

73) The Internet

74) World Wide Web/Web/WWW

75) Extranets

76) Operational excellence is the achievement of higher levels of productivity,

efficiency, and profitability. Information systems can help achieve operational
excellence by improving communications to suppliers and optimizing the supply
chain. Information systems could help managers communicate with workers more
efficiently, enable technological innovation in products, minimize warehouse
overhead, and streamline distribution.

77) You could create a Web site that allows customers to customize cars,
communicate with support personnel and other car owners. You could create an
automated e-mail service reminding car owners to take their car in for periodic
checkups. You could have an information system that tracks customer preferences
in local areas, so you can provide cars that reflect local customer needs and
desires.

78) Information technology (IT) consists of all the hardware and software that a
firm needs to use to achieve its business objectives. Information systems are
more complex. An information system can be defined technically as a set of
interrelated components that collect (or retrieve), process, store, and
distribute information to support decision making and control in an
organization.
An information system:
• supports decision making, coordination, and control
• helps employees analyze problems
• helps employees visualize complex subjects
• helps create new products

79) Movie ticket sales from individual theaters would be an example of raw data.
Meaningful information from this would be: average number of tickets sold to
seniors on certain days of the week.

80) A business process is a set of logically related tasks and behaviors for
accomplishing work. Hiring a new employee, customer intake, and filing medical
records are examples of business processes at a hospital.

Page 15
 chapter1 test.txt
81) Shared values at a law firm might be: The legal system works, the legal
system is fair, lawyers help people, and people need help with the legal system
because it is complicated.

82) An information value chain adds value to data at various stages,

transforming it into valuable data. At a chain of movie theaters, data would be
gathered from ticket sales and concession sales. Information systems would help
transform this into meaningful information, such as determining the types of
movies popular in certain regions, times and days of the week that people most
often saw movies, what snacks were the most popular. This information would be
valuable in making decisions, such as offering ticket discounts during less
popular time slots and offering more popular snack items. Further feedback based
on the results of these decisions could determine whether these decisions were
effective.

83) A firm's ability to effectively use information technology is interdependent

with its ability to implement corporate strategies and achieve corporate goals.
More and more, the ability to compete and succeed depends on a company's ability
to implement technology. What a business would like to do in the future can
depends on what its systems will be able to do. Examples of this might be a
company who invests in information systems that enable it to create new products
or to make its distribution system more efficient, allowing the company to
become the low-cost producer.

84) C

85) B

86) D

87) D

88) B

89) B

90) sociotechnical

Page 16