Type:
Test Bank
Resource:
Essentials of MIS
Edition:
14th Edition
Author(s):
Kenneth C. Laudon Jane P. Laudon
Essentials of MIS, 14e, Global Edition (Laudon/Laudon) Chapter 1 Business Information Systems in Your Career 1) Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case? A) Operational excellence B) Survival C) Improved employee morale D) Increased supplier intimacy E) Creation of a new business model Answer: A Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 2) Journalist Thomas Friedman's description of the world as "flat" refers to the: A) reduction of economic and cultural advantages of developed countries. B) use of the Internet for instantaneous communication. C) reduction in travel times and the ubiquity of global exchange and travel. D) growth of globalization. E) increased use of global currencies. Answer: A Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 3) 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. E) new products. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today?
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4) A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Survival B) Improved decision making C) Competitive advantage D) Operational excellence E) Customer intimacy Answer: A Difficulty: Moderate AACSB: Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 5) Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following? A) New business models B) Operational efficiency C) Customer intimacy D) Competitive advantage E) Survival Answer: B Difficulty: Challenging AACSB: Analytical Thinking LO: 1-1: Why are information systems so essential for running and managing a business today? 6) Verizon uses a web-based digital dashboard to provide managers with real-time information, in order to: A) improve flexibility. B) improve decision making. C) gain competitive advantage. D) create supplier intimacy. E) create a new business model. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 7) Which business objective were competitors seeking when they rushed to provide ATMs after Citibank introduced the first ATMs in New York? A) Improved efficiency B) Customer and supplier intimacy C) Survival D) Competitive advantage E) Improved decision making Answer: C Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 2 .
8) All of the following describe the effects of globalization except: A) significant decreases in operating costs. B) reduction of labor costs through outsourcing. C) increased ability to find low-cost suppliers. D) increases in transaction costs. E) ability to reliably obtain price and quality information worldwide. Answer: D Difficulty: Challenging AACSB: Analytical Thinking LO: 1-1: Why are information systems so essential for running and managing a business today? 9) A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives? A) Customer intimacy B) Operational excellence C) New products. D) Improved decision making E) Survival Answer: E Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 10) Which of the following is an example of a business using information systems to create new products and services? A) Apple's creation of the iPad B) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced C) The Mandarin Oriental's use of computers to keep track of guests' preferences D) Verizon's web-based digital dashboard providing real-time company information for managers E) Walmart's Retail Link system Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today?
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11) An example of a business using information systems for supplier intimacy is: A) Apple's creation of the iPad. B) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C) Citibank's ATM system. D) Verizon's web-based digital dashboard providing real-time company information for managers. E) the Mandarin Oriental's use of computers to keep track of guests' preferences. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 12) To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) New products B) Survival C) Customer intimacy D) Supplier intimacy E) New services Answer: C Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 13) Software as a Service (SaaS) is an example of which of the following? A) Business intelligence B) Social business C) IoT D) Big Data E) Cloud computing Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today?
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14) Which of the following is one of the management and people changes posing a major challenge in the business use of information systems? A) IoT B) Big Data C) Mobile Platform. D) Cloud Computing. E) Online collaboration Answer: E Difficulty: Easy AACSB: Analytical Thinking; Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today? 15) E-commerce and Internet advertising reached $105 billion in 2018, growing at about: A) 5 percent. B) 10 percent. C) 15 percent. D) 20 percent. E) 25 percent. Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 16) What percent of employed Americans report spending some time working remotely? A) 13 percent B) 23 percent C) 33 percent D) 43 percent E) 53 percent Answer: D Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 17) All of the following are technology-related challenges in MIS except: A) cloud computing. B) big data. C) IoT. D) the mobile platform. E) co-creation of business value. Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today?
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18) Which of the following statements is not true? A) In 2018, American businesses invested nearly $1 trillion in information systems hardware, software, and telecommunications equipment. B) In 2018, American businesses spent over $140 billion on business and management consulting and information technology services. C) In 2018, about 25 percent of all capital investment in the United States was for information systems hardware, software, and telecommunications equipment. D) In 2018, investments in the United States for technology and management consulting grew at a faster rate than the U.S. economy as a whole. E) Worldwide, non-U.S. expenditures for information technology exceeded $3.8 trillion. Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 19) In 2018, approximately how many adult Americans bought something online? A) 150 million B) 180 million C) 190 million D) 220 million E) 230 million Answer: C Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 20) What percent of the Fortune 500 companies uses Twitter to communicate with their customers? A) 20 percent B) 40 percent C) 50 percent D) 60 percent E) 80 percent Answer: E Difficulty: Challenging AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 21) Over 90 percent of Internet users access the web with mobile devices. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-1: Why are information systems so essential for running and managing a business today?
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22) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 23) Federal law requires many businesses to keep email messages for ten years. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-1: Why are information systems so essential for running and managing a business today? 24) Define operational excellence. How can information systems help achieve it? Answer: Operational excellence is the achievement of higher levels of productivity and efficiency. 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. Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-1: Why are information systems so essential for running and managing a business today? 25) You work for an auto dealer. How could you use information systems to achieve greater customer intimacy? Answer: You could create a website that allows customers to order customized cars, and communicate with support personnel and other car owners. You could create an automated email service reminding car owners to take their car in for periodic check-ups. You could have an information system that tracks customer preferences in your local area, so you can offer cars that reflect local customer needs and desires. Difficulty: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1-1: Why are information systems so essential for running and managing a business today?
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26) Which of the following is the best definition of an information system? A) A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization B) Computers, keyboards, printers, and telecommunications devices C) A set of detailed programmed instructions that transform raw data into information D) Physical devices and software that can be connected to share voice, data, images, sound, and video E) A global network that uses universal standards Answer: A Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 27) The three activities in an information system that produce the information are: A) information, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback. E) information, data, and processing. Answer: C Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 28) The average number of baseball tickets sold at a particular price is an example of: A) input. B) raw data. C) meaningful information. D) output. E) feedback. Answer: C Difficulty: Easy AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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29) 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) transforms raw data into processed information. D) transfers processed information to the people who will use it or to the activities for which it will be used. E) is a stream of raw facts representing events occurring in organizations or the physical environment. Answer: D Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 30) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) inputting. Answer: B Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 31) Which of the following is an example of raw data from an automobile manufacturer? A) An average of 130 Subarus sold daily in New York in 2019 B) 1,300 Subaru Outbacks sold during the first quarter 2019 in New York C) One Subaru Outback sold January 7, 2019 in Mount Kisco, New York for $25,000 D) Annual sales of Subaru Outbacks increased 4.5 percent E) An average sale price of $26,000 for all Subaru Outbacks sold during January 2019 in Mount Kisco, New York Answer: C Difficulty: Challenging AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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32) Which of the following fields 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? A) Information systems literacy B) Information systems architecture C) Management information systems D) Information technology infrastructure E) Computer information systems Answer: C Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 33) All of the following are examples of environmental actors in an information system except: A) customers. B) stockholders. C) feedback. D) competitors. E) regulatory agencies. Answer: C Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 34) In a hierarchical organization, the upper levels consist of: A) managerial, professional and knowledge workers. B) managerial, professional, and technical workers. C) professional and operational workers. D) managerial, professional, and operational workers. E) knowledge, technical and operational workers. Answer: B Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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35) 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) business process. B) environment. C) atmosphere. D) values. E) culture. Answer: E Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 36) All of the following can be considered managerial responsibilities except: A) making action plans to solve organizational problems. B) creating new products and services. C) designing new information systems. D) allocating human resources to coordinate the work to be done. E) setting strategy for responding to business challenges in the environment. Answer: C Difficulty: Moderate AACSB: Analytical Thinking LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 37) Data management technology consists of the: A) 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. E) universally accepted standards for storing data. Answer: C Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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38) 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. E) provide the platform on which a firm builds its information systems. Answer: D Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 39) As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system? A) The specification of procedures for identifying packages with sender and recipient information B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery E) Routing software that creates the most efficient delivery route for each driver Answer: A Difficulty: Challenging AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 40) As described in the chapter case, which of the following constitutes a people element of the UPS tracking system? A) The web-based Post Sales Order Management System B) The ability to provide package status reports to customers C) The decision to use automation D) The implementation of in-house package tracking software E) The ability to embed UPS functions in external sites Answer: C Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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41) A moving company has an information system 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 is a(n) ________ dimension of the system. A) organizational B) managerial C) people D) technology E) cultural Answer: A Difficulty: Moderate AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 42) 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. E) Culture is the basis for organizational politics. Answer: B Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 43) Which of the following is a global network that uses universal standards to connect millions of different networks around the world? A) An extranet B) The World Wide Web C) The Internet D) An intranet E) Verizon Answer: C Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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44) ________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. A) Computer software B) Programming C) Enterprise applications D) Business intelligence E) Data management technology Answer: A Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 45) ________ 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) Email C) The World Wide Web D) HTML E) An extranet Answer: C Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 46) Information systems contain information about significant people, places, and things within the organization or in the environment surrounding it. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 47) An extranet is a private intranet extended to authorized users outside the organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 48) Computer literacy focuses primarily on knowledge of information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 14 .
49) People, organizations, and information technology are all dimensions of information systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 50) The history and culture of business firms affects how it uses information technology. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 51) Developing a new product, fulfilling an order, and hiring a new employee are all examples of business processes. Answer: TRUE Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 52) Business processes are logically related tasks for accomplishing work that have been formally encoded by an organization. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 53) Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 54) The Internet is the world's largest and most widely used network. Answer: TRUE Difficulty: Moderate AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 15 .
55) A firm's IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 56) UPS's use of web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own websites, described in the chapter case, is an information systems solution used to achieve supplier intimacy. Answer: FALSE Difficulty: Challenging AACSB: Analytical Thinking; Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 57) Data is information that has been shaped into a form that is meaningful to human beings. Answer: FALSE Difficulty: Easy AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 58) Feedback is a specific type of output. Answer: TRUE Difficulty: Moderate AACSB: Application of Knowledge LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 59) Intranets are private corporate networks extended to authorized users outside the organization. Answer: FALSE Difficulty: Easy AACSB: Information Technology LO: 1-2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?
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