1

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
B) improved decision making.
2) Dell Computer's use of information systems to improve efficiency and implement "mass
customization" techniques to maintain consistent profitability and an industry lead illustrates which
business objective?
C) competitive advantage
3) 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
C) IT infrastructure.
4) Maintaining the organization's financial records is a central purpose of which main business
function?
B) finance and accounting
5) Which of the following are environmental actors that interact with an organization and its
information systems?
D) all of the above
6) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the
supply chain?
A) safety stock
7) A scheduling system for minimizing inventory by having components arrive exactly at the moment
they are needed and finished goods shipped as soon as they leave the assembly line best describes
a ________ strategy.
A) just-in-time
8) A distortion of information about the demand for a product as it passes from one entity to the next
across the supply chain is called the ________ effect.
B) bullwhip
9) Customer relationship management systems typically provide software and online tools for sales,
customer service, and
A) marketing.
10) Which of the following events signified the beginning of e-commerce?
A) the first online advertisements
11) Selling the same goods to different targeted groups at different prices is called
D) price discrimination.
12) The lowered costs of information storage, processing, and communication, along with the
improvement of data quality, has resulted in which unique quality of e-commerce?
A) information density
13) Digital goods are goods that are
B) sold over digital networks.
14) Which of the following businesses utilizes the content provider Internet business model?
C) CNN.com
15) The type of decision that can made by following a definite procedure is called a(n) ________
decision.
A) structured
16) Which of the following describes how the Simon framework of decision-making works in high-
velocity decision environments?
A) All four steps of the process are handled by software algorithms; humans are eliminated
from the decisions because they are too slow.
17) Which of the following is a disadvantage of high-velocity, automated decision-making systems?
D) inability to control themselves and respond to new environments
18) Business intelligence would be useful for analyzing and decision-making in which of the following
situations?
D) all of the above
19) Which of the following is not one of the five main analytic functionalities of BI systems for helping
decision makers understand information and take action?
B) business case archives
20) The four kinds of structural organizational change enabled by IT, in order from least to most risky,
are
C) automation, rationalization, reengineering, and paradigm shift.
21) Enabling organizations to make continual improvements to many business processes and to use

1
processes as the fundamental building blocks of corporate information systems is the goal of
A) business process management.
22) To understand and define the contents of data flows and data store, system builders use
A) a data dictionary.
23) System testing
D) provides the final certification that the system is ready to be used in a production setting.
24) The ________ consists of systems analysts, specialists from the relevant end-user business
areas, application programmers, and perhaps database specialists.
B) project team
25) You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT
projects. Which types of projects would be best avoided?
C) all high-risk, low benefit projects
26) All of the following are intangible benefits of information systems except
D) reduced workforce.
27) The organizational activities working toward the adoption, management, and routinization of a
new information system are called
C) implementation.
28) As discussed in the chapter, which of the following is not one of the immediate consequences of
inadequate software project management?
B) organizational conflict
29) Changes in hardware, software, documentation, or production to a production system to correct
errors, meet new requirements, or improve processing efficiencies are termed
C) maintenance.
30) 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?
B) survival
31) An example of a social complementary asset is
A) technology and service firms in adjacent markets.
32) Supply chain software can be classified as either supply chain ________ systems or supply chain
________ systems.
D) planning; execution
33) Uncertainties arise in any supply chain because of
D) unforeseeable events.
34) Your company provides online tax preparation software. Users can download forms and read tips
online without paying, but a fee is charged for using the advanced tax form management services.
This is an example of which type of revenue model?
D) free/freemium
35) Which of the following best illustrates the transaction fee revenue model?
D) Apple accepts micropayments for single music track downloads.
36) The role of liaison falls into which of Mintzberg's managerial classifications?
C) interpersonal
37) Which of the following best describes the term business analytics?
B) the tools and techniques used to analyze and understand business data
38) Transferring data from a legacy system to the new system would be defined by which category of
system design specifications?
D) conversion
39) In a parallel conversion strategy, the new system
C) and the old are run together.
40) At the top of the management structure for information systems projects in a large company is
C) the corporate strategic planning group.

2
2

1) At the top of the management structure for information systems projects in a large company is
C) the corporate strategic planning group.
2) The three activities in an information system that produce the information organizations use to
control operations are
C) input, processing, and output.
3) Output
D) transfers processed information to the people who will use it or to the activities for which it
will be used.
4) Converting raw data into a more meaningful form is called
B) processing.
5) 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) culture.
6) You have been asked to implement enterprise software for a manufacturer of kitchen appliances.
What is the first step you should take?
A) Select the functions of the system you wish to use.
7) Enterprise software is built around thousands of predefined business processes that reflect
C) best practices.
8) Why is overstocking warehouses not an effective solution for a problem of low availability?
D) It increases inventory costs.
9) The measurement of the number of customers who stop using or purchasing products or services
from a company is called
B) churn rate.
10) All of the following statements about enterprise applications are true except for
B) Once you have purchased and implemented a vendor's enterprise system, it is much less
expensive to switch vendors.
11) EBay is an example of
A) C2C e-commerce.
12) Which of the following best illustrates the sales revenue model?
D) Apple accepts micropayments for single music track downloads.
13) The integration of video, audio, and text marketing messages into a single marketing message
and consumer experience describes which dimension of e-commerce technology?
C) richness
14) The effort required to locate a suitable product is called
B) search costs.
15) Reducing the business process layers in a distribution channel is called
A) disintermediation.
16) Which type of decision is deciding whether to introduce a new product line?
B) unstructured
17) Simon's description of decision making consists of which four stages?
C) intelligence, design, choice, and implementation
18) Which of the following is not one of the six main elements in the business intelligence environment
discussed in this chapter?
B) organizational environment
19) GDSS
D) implement structured methods for organizing and evaluating ideas.
20) ________ are visual tools for presenting performance data in a BI system.
A) Dashboards and scorecards
21) In order, what are the first three steps in BPM?
A) (1) identifying processes for change, (2) analyzing existing processes, (3) designing the
new process
22) The primary tool for representing a system's component processes and the flow of data between
them is the
D) data flow diagram.
23) As a technical project manager you have decided to propose implementing a prototyping
methodology for a small Web-based design project. What is the order of steps you will follow in this
project?
B) Identify user requirements, develop the prototype, use the prototype, revise and enhance
the prototype.
24) When systems are created rapidly, without a formal development methodology
A) end users can take over the work of IT specialists.

3
D) testing and documentation may be inadequate.
25) A road map indicating the direction of systems development, the rationale, the current systems,
new developments to consider, the management strategy, the implementation plan, and the budget is
called a(n)
C) information systems plan.
26) The principal method used in CFS analysis is to
D) interview a small number of top managers to identify their goals and criteria for achieving
success.
27) The central method used in a portfolio analysis is to
A) inventory all of the organization's information systems projects and assets.
28) Transferring data from a legacy system to the new system would be defined by which category of
system design specifications?
D) conversion
29) Which of the following is not a responsibility of effective change management?
A) integrating legacy systems
30) 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?
B) survival
31) In a business hierarchy, the level that is responsible for monitoring the daily activities of the
business is
D) operational management.
32) Supply chain software can be classified as either supply chain ________ systems or supply chain
________ systems.
D) planning; execution
33) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing
and manufacturing plans for that product best describes supply chain ________ systems.
C) planning
34) Your company provides online tax preparation software. Users can download forms and read tips
online without paying, but a fee is charged for using the advanced tax form management services.
This is an example of which type of revenue model?
D) free/freemium
35) Which of the following best illustrates the transaction fee revenue model?
A) EBay receives a small fee from a seller if a seller is successful in selling an item.
36) The role of liaison falls into which of Mintzberg's managerial classifications?
C) interpersonal
37) Which of the following best describes the term business analytics?
A) the infrastructure for collecting and managing business data
38) To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly
established in advance, you would use
B) the real option pricing model.
39) The use of information systems because of necessity describes the business objective of
A) survival.
40) In a parallel conversion strategy, the new system
C) and the old are run together.

4
1) A bank has reworked its mortgage application process so that several steps are handled by
computer software, and some steps are combined to reduce bottlenecks in processing. The goal is to
gradually improve its efficiency over time. This is an example of
B) rationalization of procedures.
2) The average number of tickets sold daily online is an example of
C) meaningful information.
3) Overproduction or underproduction of goods and services, misallocation of resources, and poor
response times are the results of a firm's having
C) inadequate information.
4) Which field of study focuses on both a behavioral and technical understanding of information
systems?
D) management information systems
5) 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?
D) 1, 2, and 3
6) A suite of integrated software modules for finance and accounting, human resources,
manufacturing and production, and sales and marketing that allows data to be used by multiple
functions and business processes best describes
C) ERM software.
7) Which of the following is not true about enterprise systems?
C) Enterprise software is expressly built to allow companies to mimic their unique business
practices.
8) Which supply chain planning function determines how much product is needed to satisfy all
customer demands?
B) replenishment planning
C) demand planning
9) The business value of an effective supply chain management system includes all of the following
except
D) increased inventory levels.
10) Analytical CRM applications
A) include tools for marketing automation.
11) Which of the following is not one of the unique features of e-commerce technology?
A) information density
12) Compared to digital markets, traditional markets have
D) higher transaction costs.
13) Which of the following describes long-tail marketing?
B) The yearly sales of one or two copies each of thousands of obscure films.
14) In which of the following Internet business models does a merchant create an online digital
environment that enables people with like interests to share information or buy and sell goods?
A) community provider
15) A marketplace extended beyond traditional boundaries and removed from a temporal and
geographic location is called a(n)
B) marketspace.
16) Which of the following statements best describes the business value of improved decision
making?
B) Improved decision making results in a large monetary value for the firm as numerous small
daily decisions affecting efficiency, production, costs, and more add up to large annual values.
17) Behavioral models of managers find that, from observation, managers
D) typically work in a fragmented manner, with only 10% of activities exceeding an hour in
duration.

18) Mintzberg's classification of managerial roles outlines which three main categories?
A) interpersonal, informational, and decisional
19) Which of the following types of systems would be used to present senior marketing executives
with in-depth information about customer retention, satisfaction, and quality performance.
D) ESS
20) The leading methodology for understanding the really important information needed by a firm's
executives is called the ________ method.
B) balanced scorecard
21) Order data for football tickets and bar code data are examples of
A) raw input.
22) In the traditional systems development lifecycle, end users
D) are limited to providing information requirements and reviewing the technical staff's work.

5
23) Which type of fourth-generation language tool contains preprogrammed modules that can be used
to create entire applications?
A) PC software tools
B) report generators
C) application generators
D) application software packages
24) An upscale organic foods grocery chain is implementing an information system that will enable it
to add same-day home delivery of groceries to its customers. This is an example of
C) paradigm shift.
25) The major variables in project management are
C) time, cost, quality, performance, and risk.
26) The role of entrepreneur falls into which of Mintzberg's managerial classifications?
C) interpersonal
27) The level of a project's risk is influenced primarily by
A) project size, project structure, and the level of technical expertise.
28) Which of the following types of projects is most likely to fail?
C) a business process redesign project that restructures workflow and responsibilities
29) Users prefer systems that
A) are oriented to facilitating organizational tasks and solving business problems.
30) In a business hierarchy, the level that is responsible for monitoring the daily activities of the
business is
D) operational management.
31) 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?
C) social
32) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing
and manufacturing plans for that product best describes supply chain ________ systems.
C) planning
33) Analyzing customer buying patterns is an example of
B) analytical CRM.
34) Selling products and services directly to individual consumers via the Internet best describes
D) B2C e-commerce.
35) You are planning the requirements for a site tracking and reporting system for your company Web
site. Which of the following information requirements would not be essential for this function?
D) secure credit card clearing
36) You are using a capital budgeting method to assess the worth of your company's new information
system. Which of the following costs would you include in measuring the cash outflow?
A) increased sales of products
B) hardware and software expenditures
C) labor expenditures
D) reduced costs in production and operation
37) Which of the following statements best describes the term business intelligence?
A) the infrastructure for collecting and managing business data
38) Unit testing
C) tests each program separately.
39) In the direct cutover conversion strategy, the new system
B) replaces the old one at an appointed time.
40) Which of the following is not a tangible benefit of information systems?
A) reduced rate of growth in expenses
B) lower computer expenses
C) improved resource control
D) increased productivity

6
4

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
B) improved decision making.
2) 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
3) Which of the following are environmental actors that interact with an organization and its
information systems?
D) all of the above
4) A scheduling system for minimizing inventory by having components arrive exactly at the moment
they are needed and finished goods shipped as soon as they leave the assembly line best describes
a ________ strategy.
A) just-in-time
5) Customer relationship management systems typically provide software and online tools for sales,
customer service, and
A) marketing.
6 Selling the same goods to different targeted groups at different prices is called
D) price discrimination.
7) Digital goods are goods that are
C) delivered digitally.
8) The type of decision that can made by following a definite procedure is called a(n) ________
decision.
A) structured
9) Which of the following is a disadvantage of high-velocity, automated decision-making systems?
B) inability to handle structured decisions
10) Which of the following is not one of the five main analytic functionalities of BI systems for helping
decision makers understand information and take action?
B) business case archives
11) Enabling organizations to make continual improvements to many business processes and to use
processes as the fundamental building blocks of corporate information systems is the goal of
A) business process management.
12) System testing
D) provides the final certification that the system is ready to be used in a production setting.
13) You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT
projects. Which types of projects would be best avoided?
C) all high-risk, low benefit projects
14) The organizational activities working toward the adoption, management, and routinization of a
new information system are called
C) implementation.
15) All of the following statements about enterprise applications are true except for
B) Once you have purchased and implemented a vendor's enterprise system, it is much less
expensive to switch vendors.
16) Which type of decision is deciding whether to introduce a new product line?
B) unstructured
17) Changes in hardware, software, documentation, or production to a production system to correct
errors, meet new requirements, or improve processing efficiencies are termed
C) maintenance.
18) The three activities in an information system that produce the information organizations use to
control operations are
B) input, output, and feedback.
19) Which of the following is not one of the six main elements in the business intelligence environment
discussed in this chapter?
B) organizational environment
20) Converting raw data into a more meaningful form is called
B) processing.
21) You have been asked to implement enterprise software for a manufacturer of kitchen appliances.
What is the first step you should take?
A) Select the functions of the system you wish to use.
22) Which of the following best illustrates the sales revenue model?
D) Apple accepts micropayments for single music track downloads

7
23) Why is overstocking warehouses not an effective solution for a problem of low availability?
D) It increases inventory costs.
24) The effort required to locate a suitable product is called
A) price discrimination.
25) ________ are visual tools for presenting performance data in a BI system.
A) Dashboards and scorecards
26) An example of an organizational complementary asset is
A) using the appropriate business model.
27) The primary tool for representing a system's component processes and the flow of data between
them is the
D) data flow diagram.
28) When systems are created rapidly, without a formal development methodology
D) testing and documentation may be inadequate.
29) Netflix's public announcement of a reward for a technology solution to its movie recommendation
system is an example of
D) crowdsourcing.
30) To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly
established in advance, you would use
B) the real option pricing model.
31) The principal method used in CFS analysis is to
D) interview a small number of top managers to identify their goals and criteria for achieving
success.
32) According to Mintzberg, managers in their informational role act as
C) nerve centers of the organization.
33) In working with ROPMs and options valuation, a call option is a(n)
D) right to purchase or sell an asset a later date at a fixed price.
34) Apple Computer dominates the online legal music sales industry primarily because of a failure of
recording label companies to
B) adopt a new business model.
35) The oldest method for building information systems is
D) the systems development lifecycle.
36) Supply chain planning systems
B) identify the transportation mode to use for product delivery.
37) Categories of tools for Business process management include all of the following except
D) tools to test the security of business processes.
38) Capabilities of supply chain execution systems would not include
A) identifying the optimal transportation mode.
39) In which of the following revenue models does a Web site charge a fee for access to some or all
of its offerings on a continual, regular basis?
A) subscription
40) Measures defined by management and used to internally evaluate the success of a firm's
financial, business process, customer, and learning and growth are called
B) KPIs.

8
5
1) Which of the following best illustrates the transaction fee revenue model?
A) EBay receives a small fee from a seller if a seller is successful in selling an item.
2) The central method used in a portfolio analysis is to
A) inventory all of the organization's information systems projects and assets.
3) Output
A) is feedback that has been processed to create meaningful information.
4) Enterprise software is built around thousands of predefined business processes that reflect
C) best practices.
5) Which of the following statements best describes the business value of improved decision making?
B) Improved decision making results in a large monetary value for the firm as numerous small
daily decisions affecting efficiency, production, costs, and more add up to large annual values.
6) The measurement of the number of customers who stop using or purchasing products or services
from a company is called
B) churn rate.
7) The use of information systems because of necessity describes the business objective of
A) survival.
8) EBay is an example of
C) B2C e-commerce.
9) The integration of video, audio, and text marketing messages into a single marketing message and
consumer experience describes which dimension of e-commerce technology?
C) richness
10) An example of a social complementary asset is
A) technology and service firms in adjacent markets.
11) Simon's description of decision making consists of which four stages?
C) intelligence, design, choice, and implementation
12) GDSS
A) are designed to allow meeting attendees to share their thoughts in real-time with their
peers.
13) In a parallel conversion strategy, the new system
C) and the old are run together.
14) In order, what are the first three steps in BPM?
A) (1) identifying processes for change, (2) analyzing existing processes, (3) designing the
new process
15) As a technical project manager you have decided to propose implementing a prototyping
methodology for a small Web-based design project. What is the order of steps you will follow in this
project?
B) Identify user requirements, develop the prototype, use the prototype, revise and enhance
the prototype.
16) A road map indicating the direction of systems development, the rationale, the current systems,
new developments to consider, the management strategy, the implementation plan, and the budget is
called a(n)
C) information systems plan.
17) Which of the following is not a responsibility of effective change management?
A) integrating legacy systems
18) The average number of tickets sold daily online is an example of
C) meaningful information.
19) A suite of integrated software modules for finance and accounting, human resources,
manufacturing and production, and sales and marketing that allows data to be used by multiple
functions and business processes best describes
B) ERP systems.
20) Which supply chain planning function determines how much product is needed to satisfy all
customer demands?
C) demand planning
21) Analytical CRM applications
A) include tools for marketing automation.
22) Compared to digital markets, traditional markets have
D) higher transaction costs.
23) 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) culture.
24) In which of the following Internet business models does a merchant create an online digital

9
environment that enables people with like interests to share information or buy and sell goods?
A) community provider
25) Mintzberg's classification of managerial roles outlines which three main categories?
A) interpersonal, informational, and decisional
26) In the traditional systems development lifecycle, end users
D) are limited to providing information requirements and reviewing the technical staff's work.
27) Which field of study focuses on both a behavioral and technical understanding of information
systems?
D) management information systems
28) An upscale organic foods grocery chain is implementing an information system that will enable it
to add same-day home delivery of groceries to its customers. This is an example of
C) paradigm shift.
29) At the top of the management structure for information systems projects in a large company is
C) the corporate strategic planning group.
30) Which of the following types of projects is most likely to fail?
C) a business process redesign project that restructures workflow and responsibilities
31) 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?
B) survival
32) Supply chain software can be classified as either supply chain ________ systems or supply chain
________ systems.
D) planning; execution
33) Uncertainties arise in any supply chain because of
D) unforeseeable events.
34) Reducing the business process layers in a distribution channel is called
A) disintermediation.
35) Your company provides online tax preparation software. Users can download forms and read tips
online without paying, but a fee is charged for using the advanced tax form management services.
This is an example of which type of revenue model?
D) free/freemium
36) The role of liaison falls into which of Mintzberg's managerial classifications?
C) interpersonal
37) The leading methodology for understanding the really important information needed by a firm's
executives is called the ________ method.
B) balanced scorecard
38) Which of the following best describes the term business analytics?
B) the tools and techniques used to analyze and understand business data
39) You are using a capital budgeting method to assess the worth of your company's new information
system. Which of the following costs would you include in measuring the cash outflow?
B) hardware and software expenditures
40) Transferring data from a legacy system to the new system would be defined by which category of
system design specifications?
D) conversion

10
6
1) Dell Computer's use of information systems to improve efficiency and implement "mass
customization" techniques to maintain consistent profitability and an industry lead illustrates which
business objective?
C) competitive advantage
2) Which of the following is not one of the unique features of e-commerce technology?
B) transparency
3) A distortion of information about the demand for a product as it passes from one entity to the next
across the supply chain is called the ________ effect.
B) bullwhip
4) The lowered costs of information storage, processing, and communication, along with the
improvement of data quality, has resulted in which unique quality of e-commerce?
A) information density
5) Which of the following describes how the Simon framework of decision-making works in high-
velocity decision environments?
A) All four steps of the process are handled by software algorithms; humans are eliminated from the
decisions because they are too slow.
6) Business intelligence would be useful for analyzing and decision-making in which of the following
situations?
D) all of the above
7) The four kinds of structural organizational change enabled by IT, in order from least to most risky,
are
C) automation, rationalization, reengineering, and paradigm shift.
8) Unit testing
B) tests the functioning of the system as a whole in order to determine if discrete modules will function
together as planned.
9) To understand and define the contents of data flows and data store, system builders use
A) a data dictionary.
10) Which of the following events signified the beginning of e-commerce?
A) the first online advertisements
11) The ________ consists of systems analysts, specialists from the relevant end-user business
areas, application programmers, and perhaps database specialists.
B) project team
12) All of the following are intangible benefits of information systems except
D) reduced workforce.
13) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the
supply chain?
A) safety stock
14) As discussed in the chapter, which of the following is not one of the immediate consequences of
inadequate software project management?
B) organizational conflict
15) Order data for football tickets and bar code data are examples of
A) raw input.
16) Overproduction or underproduction of goods and services, misallocation of resources, and poor
response times are the results of a firm's having
C) inadequate information.
17) 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?
D) 1, 2, and 3
18) Which of the following is not true about enterprise systems?
C) Enterprise software is expressly built to allow companies to mimic their unique business practices.
19) Which of the following is not a tangible benefit of information systems?
C) improved resource control
20) The business value of an effective supply chain management system includes all of the following
except
D) increased inventory levels.
21) Which of the following businesses utilizes the content provider Internet business model?
C) CNN.com
22) Which of the following describes long-tail marketing?
B) The yearly sales of one or two copies each of thousands of obscure films.

11
23) A marketplace extended beyond traditional boundaries and removed from a temporal and
geographic location is called a(n)
B) marketspace.
24) Behavioral models of managers find that, from observation, managers
D) typically work in a fragmented manner, with only 10% of activities exceeding an hour in duration.

25) Maintaining the organization's financial records is a central purpose of which main business
function?
B) finance and accounting
26) Which of the following types of systems would be used to present senior marketing executives
with in-depth information about customer retention, satisfaction, and quality performance.
D) ESS
27) Selling products and services directly to individual consumers via the Internet best describes
D) B2C e-commerce.
28) A bank has reworked its mortgage application process so that several steps are handled by
computer software, and some steps are combined to reduce bottlenecks in processing. The goal is to
gradually improve its efficiency over time. This is an example of
B) rationalization of procedures.
29) Which type of fourth-generation language tool contains preprogrammed modules that can be used
to create entire applications?
C) application generators
30) The major variables in project management are
B) scope, time, cost, quality, and risk.
31) The level of a project's risk is influenced primarily by
A) project size, project structure, and the level of technical expertise.
32) In a business hierarchy, the level that is responsible for monitoring the daily activities of the
business is
D) operational management.
33) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing
and manufacturing plans for that product best describes supply chain ________ systems.
C) planning
34) Analyzing customer buying patterns is an example of
B) analytical CRM.
35) You are planning the requirements for a site tracking and reporting system for your company Web
site. Which of the following information requirements would not be essential for this function?
D) secure credit card clearing
36) The role of entrepreneur falls into which of Mintzberg's managerial classifications?
A) decisional
37) 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?
C) social
38) Which of the following statements best describes the term business intelligence?
C) software developed exclusively for business management

39) In the direct cutover conversion strategy, the new system

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ESSAY.
1. How could information systems be used to support the order fulfillment process illustrated in
the Figure below? And what are the most important pieces of information these systems should
capture for each department? Explain your answer.

2. You are consulting for Oga a chain of convenient stores. What types of e-commerce
opportunities, if any, are relevant to Oga? Could Oga make use of any Internet business models
for this opportunity?

In terms of B2G (also called B2A), for businesses whose sole clients are governments or type of public
administration. There is almost no e-commerce opportunity for OGA, but Oga can still go through IB to
attract investment for his subclasses. This is almost the only goal of Oga when participating in IB.

3. You have been hired as a marketing consultant by a food stores chain that mainly serves
teenagers and young adults. What ways can you use the Internet as a marketing tool and to
advertise the firm's services?
For marketing research, you could advertise on search engines. You could pay for marketing research at
relevant portals. You could also collect customer information from the company's Web site. You can join
food review groups on social networks to write ads for the store chain

4. List and describe at least five different Internet business models. Which of these models do you
think would be the most risky for a startup business today? Support your answer.

Internet business models include: e-tailer, transaction broker, market creator, content provider, community
provider, portal and service provider. Today the riskiest model would be a content-provider, because most
if not all of the major offline entertainment and content producers such as television networks and
newspapers are online. They would be your competitors, and already have the means for content creation
and distribution in place. All of the other business models do not have the risk of creating brand new
content.
5. You are the owner of Jolly Coffee & Bar, it is a new coffee shop without official processes. Your
store open from 7 a.m to 12 a.m. Your staff have three shifts, first shift is 7 a.m – 12 p.m, second
shift is 12 p.m – 5 p.m and the last shift is 5 p.m – 12 a.m. After three month since the opening,
your business is still in loss due to excessive inventory costs. When checking the inventories,
you found out that the actual inventories is less than the recorded inventories. In addition, all the
orders were handwritten and the store receives a lot complaints of slow services. Find the
solutions to reduce the amount of loss inventories and improve services. Explain your answers.

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