CH 2

1) Producing a bill of materials is a business process in which of the following functional areas?
A) Finance and accounting
B) Human resources
C) Manufacturing and production
D) Research and development
E) Sales and marketing
Answer: C

2) Which of the following is an example of a cross-functional business process?

A) Identifying customers
B) Transporting the product
C) Creating a new product
D) Assembling a product
E) Paying creditors
Answer: C

3) Identifying customers is a business process handled by the human resources function.

Answer: FALSE

4) One example of a business process is shipping a product to a customer.

Answer: TRUE

5) Order fulfillment involves all of the following business processes except:

1. A) checking the customers credit.
2. B) assembling the product.
3. C) submitting the order.
4. D) making customers aware of the product.
5. E) shipping the product.
Answer: D

9) The ________ function is responsible for identifying customers.

1. A) finance and accounting
2. B) human resources
3. C) manufacturing and production
4. D) sales and marketing
5. E) distribution and logistics
Answer: D

10) If your main supplier was late in delivering goods, which type of system would you use to update your
production schedule?
1. A) ESS
2. B) TPS
3. C) MIS
4. D) DSS
5. E) BIS
Answer: B
11) You have been hired by a non-profit agency to implement a system to handle their donations. The system
must be able to handle and record telephone, SMS, and Internet donations, provide up-to-the-minute reports,
and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a
donor's information and history. Which of the following systems will best meet these needs?
1. A) TPS
2. B) TPS with DSS capabilities
3. C) TPS with MIS capabilities
4. D) TPS with ESS capabilities
 5. E) DSS with MIS capabilities
Answer: C

12) To monitor the status of internal operations and the firm's relations with the external environment,
managers need which of the following types of system?
1. A) DSS
2. B) KWS
3. C) TPS
4. D) MIS
5. E) BIS
Answer: C

13) A(n) ________ is typically a major source of data for other systems.
1. A) TPS
2. B) MIS
3. C) ESS
4. D) DSS
5. E) KMS
Answer: A

14) The term management information systems refers to a specific category of information systems serving:
1. A) integrated data processing throughout the firm.
2. B) transaction process reporting.
3. C) employees with online access to historical records.
4. D) the information technology function.
5. E) middle management functions.
Answer: E

15) Which of the following would you use in order to determine which of your suppliers has the best and worst
records for keeping to your production schedule?
1. A) MIS
2. B) TPS
3. C) UPS
4. D) DSS
5. E) CRM
Answer: A

16) A relocation control system that reports summaries on the total moving, house hunting, and home financing
costs for employees in all company divisions falls into which of the following categories?
1. A) KMS
2. B) TPS
3. C) ESS
4. D) MIS
5. E) DSS
Answer: D

17) Non-typical business problems with causes and effects that are rapidly changing are typically handled by
which of the following types of information system?
1. A) MIS
2. B) TPS
3. C) ESS
4. D) DSS
5. E) KMS
Answer: D
18) Which of the following types of information system is especially suited to situations in which the procedure
for arriving at a solution may not be fully defined in advance?
1. A) MIS
2. B) TPS
3. C) DSS
4. D) KMS
5. E) RPS
Answer: C

19) Which type of information system would you use to forecast the return on investment if your firm planned to
switch to a new supplier that offered products at a lower cost?
1. A) ESS
2. B) TPS
3. C) MIS
4. D) CRM
5. E) DSS
Answer: E

20) Which level of the organization is an ESS specifically designed to serve?

1. A) Operational
2. B) End-user
3. C) Middle management
4. D) Senior management
5. E) Knowledge workers
Answer: D

21) An ESS supports which of the following?

1. A) Long-range planning activities of senior management
2. B) Knowledge and data workers in an organization
3. C) Decision making and administrative activities of middle managers
4. D) Day-to-day processes of production
5. E) Transactional needs of the organization
Answer: A

22) Which of the following systems would you expect to deliver integrated, personalized business content
through a web-based interface?
1. A) TPS
2. B) ESS
3. C) MIS
4. D) DSS
5. E) SCM
Answer: B

23) Which of the following would you use to forecast trends in your supplier's industry that could affect your
firm over the next five years?
1. A) ESS
2. B) TPS
3. C) MIS
4. D) DSS
5. E) KMS
Answer: A
24) Which of the following is a highly structured decision?
1. A) Creating a new product
2. B) Estimating the effect of changing costs of supply materials
3. C) Calculating the best trucking routes for product delivery
4. D) Granting credit to a customer
5. E) Forecasting new industry trends
Answer: D

25) Using the Internet to buy or sell goods is called:

1. A) e-commerce.
2. B) e-business.
3. C) an intranet.
4. D) an extranet.
5. E) e-government.
Answer: A

26) Transaction-level information is essential for operational management to be able to direct the day-to-day
operations of the business.
Answer: TRUE

27) Cross-functional systems are being phased out in favor of systems that support business processes within
a single functional group, such as human resources.
Answer: FALSE

28) A DSS is most commonly used by the operations management level of an organization.
Answer: FALSE

29) You would use an MIS to help determine if your business should introduce a new product line.
Answer: FALSE

30) For nonroutine decision making, senior managers rely on management information systems.
Answer: FALSE

31) Most transaction processing systems use sophisticated mathematical models or statistical techniques.
Answer: FALSE

32) Managers can use DSS to make decisions about problems that are unusual and not easily specified in
advance.
Answer: TRUE

33) A DSS uses internal information as well as information from external sources.
Answer: TRUE

34) An organization's MIS and DSS supply an ESS with summarized information.
Answer: TRUE

35) Operational managers use ESS primarily to solve specific problems.

Answer: FALSE

36) All of the following are examples of business intelligence systems except a system that:
1. A) summarizes and reports on a companys basic operations.
2. B) tracks the flows of materials in a factory.
3. C) focuses on problems that are unique and rapidly changing.
4. D) compares total annual sales figures for specific products to planned targets.
5. E) addresses nonroutine decisions.
Answer: B

37) Which of the following types of system typically uses a digital dashboard to display an array of charts and
graphs of a business's key performance indicators?
1. A) MIS
2. B) TPS
3. C) ESS
4. D) CRM
5. E) SCM
Answer: C

38) A web interface used to present integrated personalized business content to users is called a portal.
Answer: TRUE

39) Enterprise applications integrate information from multiple functions and business processes to enhance
the performance of the organization as a whole.
Answer: TRUE

40) An SCM is considered to be an intraorganizational system because it manages information that flows
between different companies.
Answer: FALSE

45) What is the most important function of an enterprise application?

1. A) Increasing speed of communicating
2. B) Enabling business functions and departments to share information
3. C) Enabling a company to work collaboratively with customers and suppliers
4. D) Enabling cost-effective e-business processes
5. E) Enabling inventory and supply chain management
Answer: B

46) Which of the following systems is designed to support organization-wide process coordination and
integration?
1. A) DSS
2. B) MIS
3. C) CRM
4. D) Enterprise applications
5. E) SCM
Answer: D

47) A(n) ________ system collects data from various key business processes and stores the data in a single,
comprehensive data repository, usable by other parts of the business.
1. A) transaction processing
2. B) enterprise
3. C) automatic reporting
4. D) management information
5. E) knowledge management
Answer: B

48) The four major types of enterprise applications are:

1. A) SCM, CRM, DSS, and KMS.
2. B) SCM, CRM, ESS, and KMSs.
3. C) ERP, SCM, DSS, and CRM.
4. D) ERP, SCM, CRM, and KMS.
5. E) TPS, MIS, DSS, and ESS.
Answer: D
49) ________ systems are also known as enterprise systems.
1. A) Resource planning
2. B) Enterprise resource planning
3. C) Enterprise support
4. D) Management information
5. E) Decision-support
Answer: B

50) SVF uses which of the following collaboration tools?

1. A) EMC Documentum eRoom
2. B) IBM Notes
3. C) Microsoft SharePoint Online
4. D) Microsoft Yammer
5. E) Salesforce Chatter
Answer: C

51) Which of the following types of system enables management to make better decisions regarding organizing
and scheduling sourcing, production, and distribution?
1. A) SCM
2. B) TPS
3. C) KMS
4. D) ERP
5. E) MIS
Answer: A

52) Which type of system integrates supplier, manufacturer, distributor, and customer logistics processes?
1. A) Collaborative distribution system
2. B) Supply-chain management system
3. C) Reverse logistics system
4. D) Enterprise planning system
5. E) Transaction processing system
Answer: B
53) Which of the following types of system would you use to manage relationships with your customers?
1. A) CRM
2. B) MIS
3. C) CLE
4. D) CLU
5. E) KMS
Answer: A

54) Which of the following is the greatest obstacle in enabling collaboration between employees at different,
distant corporate locations?
1. A) Privacy
2. B) Permissions
3. C) Time zones
4. D) Language
5. E) Corporate culture
Answer: C
55) Which of the following would you use to consolidate the relevant knowledge and experience in the firm
and make it available to improve business processes and management decision making?
1. A) TPS
2. B) An extranet
3. C) KMS
4. D) CRM
5. E) MIS
Answer: C

56) A(n) ________ social networking tool creates business value by connecting the members of an
organization through profiles, updates, and notifications that are tailored to internal
corporate uses.
1. A) cloud-based
2. B) social-commerce
3. C) collaborative
4. D) remote, asynchronous
5. E) enterprise
Answer: E

57) You have been hired by BizCom, a business communications consultancy that services many clients in
different industries throughout the United States, to help it improve its profit margin. BizCom provides
customized recommendations for the best use of a client's existing resources for improving internal
communications, typically delivered via documentation in different media. The company has approximately 50
consultants, all of whom are located in its central headquarters in Alexandria, Virgina. What type of system do
you recommend that BizCom install to improve its business processes and increase its profit margin?
1. A) An extranet, to enable quick collaboration over the Internet, minimize the time spent communicating
with the client, and minimize the amount of paperwork needed
2. B) A CRM, to maintain easily accessible customer records to minimize the time spent looking for client
data
3. C) A KMS, for minimizing redundant work on similar clients
4. D) A marketing system, for improving sales levels
5. E) A TPS, to help manage all daily activities and transactions
Answer: A

58) You manage the IT 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
banner ads. Which type of system will most efficiently provide a solution?
1. A) CRM
2. B) Enterprise system
3. C) Extranet
4. D) Intranet
5. E) MIS
Answer: C

59) Which of the following types of system helps coordinate the flow of information between the firm and its
suppliers and customers?
1. A) Intranet
2. B) Extranet
3. C) KMS
4. D) TPS
5. E) DSS
Answer: B

60) Using ________ to enable government relationships with citizens, businesses, and other arms of
government is called e-government.
1. A) the Internet and networking technologies
2. B) e-commerce
3. C) e-business
4. D) any computerized technology
5. E) telecommunications
Answer: A
61) In ________, digital technology and the Internet are used to execute the major business processes in the
enterprise.
1. A) e-commerce
2. B) e-business
3. C) enterprise applications
4. D) MIS
5. E) SCM
Answer: B

62) Which of the following statements about collaboration is not true?

1. A) In business, a collaboration can last as little as a few minutes.
2. B) Business collaboration relies on the formation of teams that are assigned a specific task or goal.
3. C) Successful collaboration can be achieved through technology regardless of the organization's
culture or structure.
4. D) One business benefit of collaboration is improved innovation.
5. E) Businesses need special systems for collaboration.
Answer: C

63) Which of the following tools would you use to evaluate and choose a collaboration tool for your
organization?
1. A) Virtual meeting system
2. B) Cloud collaboration
3. C) IBM Notes
4. D) The collaboration matrix
5. E) The time/space collaboration and social tool matrix
Answer: E

64) Which of the following decisions requires knowledge based on collaboration and interaction?
1. A) How long will it take to manufacture this product?
2. B) Should we work with outside vendors on new products and services?
3. C) In which geographical locations are our products garnering the most sales?
4. D) Which product design is the most efficient for the user in terms of energy use?
5. E) How can we produce this product more cheaply?
Answer: B

65) Which of the following is not a business benefit of collaboration?

1. A) Improved quality
2. B) Improved financial performance
3. C) Improved customer service
4. D) Improved innovation
5. E) Improved compliance with government regulations
Answer: E

66) ________ allows you to communicate with avatars using text messaging.
1. A) A virtual world
2. B) Screen sharing
3. C) Collaborative writing
4. D) A large audience Webinar
5. E) Telepresence
Answer: A
67) All of the following are reasons for the increased business focus on collaboration and teamwork, except for:
1. A) the need for creating innovative products and services.
2. B) growth of "interaction" jobs.
3. C) greater global presence.
4. D) the need for more efficient work hierarchies.
5. E) the need to reduce communication costs.
Answer: D

68) Which of the following statements regarding IBM Notes is not true?
1. A) It began as an e-mail and messaging client.
2. B) It is a widely used collaboration tool at larger firms.
3. C) It provides capabilities for wikis and microblogging.
4. D) It provides tools for full version control of all company documentation.
5. E) It is designed to provide security for sensitive corporate information.
Answer: A

69) Which of the following is not one of the four main classifications for collaboration tools identified by the
space/time matrix?
1. A) Synchronous/colocated
2. B) Same time/remote
3. C) Different time/remote
4. D) Remote/colocated
5. E) Same time/same place
Answer: D

70) ________ is a collaboration tool that supports remote (different place), synchronous (same time)
collaboration.
1. A) Video conferencing
2. B) E-mail
3. C) A MUD
4. D) A wall display
5. E) A virtual world
Answer: A

71) Production tasks are coordinated through the use of social networks in social business.
Answer: FALSE

72) A key word in social business is "conversations."

Answer: TRUE

73) Supply chain management systems are more externally oriented than enterprise systems.
Answer: TRUE

74) An example of a remote, synchronous collaboration tool is a Skype conference call using VOIP and
webcams.
Answer: TRUE

75) Global firms can collaborate from different locations at the same time using synchronous collaboration
tools.
Answer: TRUE

76) A website that allows citizens to file taxes online is a form of ________.
Answer: e-government
79) The principal liaison between the information systems groups and the rest of the organization is a(n):
1. A) programmer.
2. B) information systems manager.
3. C) systems analyst.
4. D) CTO.
5. E) CIO.
Answer: C

80) A ________ is a senior manager who oversees the use of IT in the firm.
1. A) CEO
2. B) CFO
3. C) CIO
4. D) CTO
5. E) CKO
Answer: C

81) An information systems manager:

1. A) writes software instructions for computers.
2. B) acts as liaison between the information systems group and the rest of the organization.
3. C) translates business problems into information requirements.
4. D) manages data entry staff.
5. E) oversees the company's security policy.
Answer: D

82) The ________ helps design programs and systems to find new sources of knowledge or to make better
use of existing knowledge in organizational and management processes.
1. A) CTO
2. B) CSO
3. C) CKO
4. D) CPO
5. E) CEO
Answer: C

83) Which of the following is a firm's CPO responsible for?

1. A) Ensuring that the company complies with existing data privacy laws
2. B) Making better use of existing knowledge in organizational and management processes
3. C) Enforcing the firm's information security policy
4. D) Overseeing the use of information technology in the firm
5. E) Acting as liaison between the information systems group and the rest of the company
Answer: A

84) A TPS is an information system that keeps track of all of the daily routine transactions of a business.
Answer: TRUE

85) An inventory control system is an example of an MIS.

Answer: FALSE

86) The number of IS/MIS jobs is projected to grow 50% faster than the average job growth for the economy as
a whole in the next eight years.
Answer: TRUE

87) In 2016, the median wage for IT/MIS jobs is about twice the level for all occupations.
Answer: TRUE
88) Which of the following statements about Plan Internationals new human resources system, as described in
the chapter case, is not true?
1. A) It took six months to implement a working system at Plan Internationals international headquarters.
2. B) The new system helps manage grants and donations received by Plan International.
3. C) The new system is cloud-based and delivers information on a secure mobile platform.
4. D) The new system enables employees to update their own personal information.
5. E) The new system provides a birds-eye view of the entire Plan workforce.
Answer: A

89) IT governance refers to the overall decision-making that guides the IT strategy of a firm.
Answer: TRUE

96) All of the following job categories are expected to grow over the next eight years except:
1. A) computer support specialists.
2. B) software engineers.
3. C) systems analysts.
4. D) computer programmers.
5. E) database administrators.
Answer: D

97) Which of the following job categories is expected to experience the most growth over the next eight years?
1. A) Computer support specialists
2. B) Software engineers
3. C) Systems analysts
4. D) Computer programmers
5. E) Database administrators
Answer: C

98) Which of the following statements is not true?

1. A) In 2016, the median wage for IT/MIS jobs is about $80,000.
2. B) In the next eight years to 2024, IS/MIS will add about 500,000 jobs.
3. C) Out of 114 occupations, MIS is ranked 15th in terms of salaries.
4. D) In general, the technical occupations in IT are showing faster expansion than occupations involved
with the management of IT.
5. E) The growth of online software services and cloud computing is impacting the job prospects for
computer programmers.
Answer: D

99) According to the chapter case, ABB decided to switch from its existing corporate intranet for all of the
following reasons except:
1. A) the intranet was too expensive to maintain.
2. B) the intranet was too static and outmoded to meet its current needs.
3. C) the intranet had poor capabilities for searching for information.
4. D) the intranet lacked collaboration tools.
5. E) the intranet was confusing and inefficient.
Answer: A

100) According to the chapter case, which of the following statements about Ciscos IX5000 telepresence
system is nottrue?
1. A) No special changes to a room are required to install the IX5000 system.
2. B) A six-seat IX500 system costs about $500,000.
3. C) The IX5000 system is able to capture an entire room in fine detail.
4. D) The IX5000 system needs only half the power, installation time, and data transmission capacity
(bandwidth) as Ciscos previous telepresence systems.
5. E) Produban was the first company to deploy the IX5000 system.