MC

A...............................................................................................................................................5
B...............................................................................................................................................9
C.............................................................................................................................................10
D............................................................................................................................................. 11
E............................................................................................................................................. 12
G............................................................................................................................................ 12
H.............................................................................................................................................13
I.............................................................................................................................................. 13
M............................................................................................................................................ 14
N.............................................................................................................................................15
O............................................................................................................................................ 15
P............................................................................................................................................. 16
R.............................................................................................................................................17
S............................................................................................................................................. 17
T............................................................................................................................................. 18
W............................................................................................................................................ 24
Y............................................................................................................................................. 31
TRUE FALSE QUESTIONS

- A data flow diagram offers a logical and graphical model of information flow,
partitioning a system into modules that show manageable levels of detail. (True)
- According to the behavioral definition, an organization is a stable, formal social
structure that takes resources from the environment and processes them to produce
outputs. T
- An example of the service provider business model isNetflix, an online video store
and streaming media outlet. F
- A structured decision can be made by following a well-defined
set of procedures. No "feel" or intuition is necessary. T
- A substantial part of management responsibility is creative work driven by new
knowledge and information. T

- Client/server computing is a widely used form of centralized processing. F

- Customers are one of the competitive forces that affect an organization's ability to
compete. T

- E-commerce refers to the use of any networking technologies to transact business. F

- Enrolling employees in benefits plans is a business process handled by the finance
and accounting function. F
- Enterprise systems are designed primarily to allow communication between an
organization and outside partners and suppliers. F
- Executive support systems are designed to serve the middle management
of the organization. F

- Failure to address properly the organizational changes surrounding the

introduction of a new system can cause the demise of an otherwise good
system. (True)
- From the point of view of economics, information systems technology can be
viewed as a factor of production that can be substituted for traditional capital and
labor. T

- Improving the quality of high-value decision making by an executive will save an

organization far more money than improving the quality of lesser-value decisions
made at a lower level. F
- In a push-based model of SCM systems, actual customer orders or purchases trigger
events in the supply chain. F
- Information asymmetry exists when one party in a transaction has more information
for the transaction than the other party. T
- Information supplied by an enterprise system is structured around
cross-functional business processes. T
- Information technology (IT) consists of all the hardware that a firm needs to use in
order to achieve its business objectives, whereas information systems consist of all
the software and business processes needed. F
- In general, for digital goods, the marginal cost of producing another unit is about zero.
T
- In postindustrial organization authority increasingly relies on formal positions
rather than knowledge and competence. F
- In the strategy of product differentiation, information systems are used to enable
new products and services. T
- IT infrastructure technology is purely a set of physical devices and software
applications that are required to operate the entire enterprise. F

- Middle management face primarily unstructured decisions. F

- Object-oriented development is more incremental than traditional structured

development. (True)
- One advantage of fourth-generation tools is that they can easily handle processing
large numbers of transactions or applications with extensive procedural logic and
updating requirements. (False)
- Operational management is responsible for directing the day-to-day operations of
the business and therefore needs transaction-level information. T

- Scalability refers to the ability of a computer, product, or system to expand to serve a

large number of users without breaking down. T
- Studies have consistently shown that firms who invest greater amounts in
information technology receive greater benefits than firms that invest less. F
- Supply chain inefficiencies can waste as much as 25 percent of a company’s
operating costs. T

- TCO refers to the original cost of purchased technology:both hardware and software.F
- The classical model of management does not address what exactly managers do
when they plan, decide things, and control the work of others. T
- The dimensions of information systems are management, organizations, and
information technology. T
- The goal of behavioral targeting is to increase the sizeof the audience to whom
the advertiser can market a product. F
- The intelligence phase of decision making consists of discovering, identifying,
and understanding the problems occurring in the organization. T
- The oldest method for building information systems is prototyping. (False)
- There are four major business functions: Sales and marketing;
manufacturing and production; finance and accounting; and information
technology. F
- The upstream portion of the supply chain consists of the organizations and processes
for distributing and delivering products to the final customers. F
- To create a computer network, you must have at least two computers. T
- Transaction processing systems are most commonly used by the senior
management level of an organization. F

- You would expect to find PRM and ERM modules in the most comprehensive CRM
software packages. T
 Multiple Choices questions:

A
7) 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
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.

13) 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.
A) network
B) bullwhip
C) ripple
D) whirlpool

20) All of the following statements about enterprise applications are true except for

A) Enterprise applications are more successfully implemented when an organization has

prepared for organizational change.
B) Once you have purchased and implemented a vendor's enterprise system, it is
much less expensive to switch vendors.

C) The total implementation cost of a large system runs intomillions of dollars.

D) Enterprise applications are based on organization-wide definitions of data.

7) A marketplace extended beyond traditional boundaries and removed from a temporal

and geographic location is called a(n)

A) exchange.

B) marketspace.

C) online marketplace.

D) e-hub.

18) Analytical CRM applications

A) include tools for marketing automation.

B) provide consolidated data for operational CRM applications.

C) are based on data warehouses consolidated from operational CRM applications.

D) provide customer-facing applications.

14) ​are created by combining and customizing components from different online software
applications.

A) Apps

B) Mashups

C)

D) Web services

20) ​are visual tools for presenting performance data in a BI system.

A) Dashboards and scorecards

B) Parameterized reports

C) Reports and the drill-down feature

D) Scenarios and models

9) A SAN is a ​network.

A) server area

B) storage area

C) scalable architecture

D) service-oriented aẩchitecture

16) 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?
A) Develop the prototype; use the prototype; revise and enhance the prototype.
B) Identify user requirements, develop the prototype, use the prototype, revise and
enhance the prototype.
C) Define the requirements, develop solutions, select the best prototype, and implement the
prototype.
D) Define the requirements, develop the prototype, revise and enhance the prototype.

12) 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

B) frictionless

C) bullwhip

D) safety-stock

10) As referred to in the text, legacy systems are

A) traditional mainframe-based business information systems.

B) electronic spreadsheets used on a PC.

C) any pre-1990 Wintel systems.

D) systems found on older ASPs.

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

A) SCM software.

B) ERP systems.

C) ERM software.

D) CRM modules.

1) A ………. is a senior manager who oversees the use of IT in the firm.

A) CEO

B) CFO

C) CIO

D) CTO

1) A collection of independent firms that use information technology to coordinate

their value chains to produce a product or service for a market collectively is called
a(n)
A) industry value chain.

B) business ecosystem.
C) value web.

D) Consortia.

2) A firm can exercise greater control over its suppliers by having

A) more suppliers.

B) fewer suppliers.

C) global suppliers.

D) local suppliers.

2) All of the following are direct business benefits of collaboration, except for
A) improved quality.

B) improved financial performance.

C) improved customer service.

D) improved compliance with government regulations.

3) All of the following are major features of organizations that impact the use of
information systems EXCEPT for
A) business processes.

B) environments.

C) goals.
D) agency costs.

3) An example of a collaboration tool that supports colocated, asynchronous collaboration is

A) a team room.

B) e-mail.

C) a MUD.

D) a wall display.

4) ____________are designed to support organization-wide process

coordination and integration.
A) Decision-support systems
B) Management information systems

C) CRM systems

D) Enterprise applications

4) An information system can enable a company to focus on a market niche through

A) complex trend forecasting.

B) tailoring products to the client.

C) intensive product trend analysis.

D) intensive customer data analysis.

20) 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
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.

B
10) Behavioral models of managers find that, from observation,managers

A) perform often fewer than 100 activities a day.

B) operate best with standardized, predictable, printed information.

C) create a formalized, hierarchic structure of contacts to provide filtered information.

D) typically work in a fragmented manner, with only 10% of activities exceeding an

hour in duration.
6) Bluetooth can be used to link up to ​devices within a 10-meter area using low- power,
radio-based communication.

A) four

B) six

C) eight
 D) ten

14) Business intelligence would be useful for analyzing and decision-making in which of
the following situations?

A) deciding what marketing techniques are most successful with high-value customers

B) identifying the most efficient methods for packing and delivering finished products
to destinations
C) forecasting the effect on sales given projected future variations in weather and
other environmental variables

D) all of the above

1) Buying or selling goods over the Internet is called

A) e-commerce.

B) e-business.

C) an intranet.

D) an extranet.

C
10) Changes in hardware, software, documentation, or production to a production system to
correct errors, meet new requirements, or improve processing efficiencies are termed
A) compliance.
B) production.
C) maintenance.
D) acceptance.

0) Compared to digital markets, traditional markets have

A) lower search costs.

B) stronger network effects.

C) higher delayed gratification effects.

D) higher transaction costs.

16) Customer relationship management systems typically provide software and online tools
for sales, customer service, and

A) marketing.
B) account management.

C) advertising.

D) public relations.

17) Customer service modules in CRM systems provide tools for

A) assigning and managing customer service requests.

B) capturing prospect and customer data.

C) identifying profitable and unprofitable customers.

D) managing sales prospect and contact information.

1) Converting raw data into a more meaningful form is called

A) capturing.

B) processing.

C) organizing.

D) Feedback.

D
19) Digital goods are goods that are

A) produced digitally.

B) sold over digital networks.

C) delivered digitally.

D) used with digital equipment.

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?
A) improved flexibility

B) improved business practices

C) competitive advantage
D) Survival

E
11) EBay is an example of

A) C2C e-commerce.

B) B2B e-commerce.

C) B2C e-commerce.

D) M-commerce.

8) 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.
B) business process redesign.
C) workflow engineering.
D) workflow management.

9) Enterprise software is built around thousands of predefined business processes that reflect

A) the firm's organization.

B) industry goals.

C) best practices.

D) cutting edge workflow analysis.

G
7) GDSS

A) are designed to allow meeting attendees to share their thoughts in real-time

with their peers.

B) support decisions that require knowledge about the geographic distribution of resources.

C) are typically used with geographically dispersed attendees.

 D) implement structured methods for organizing and evaluating ideas.

H
20) Hardware and software acquisition costs account for about ​percent of TCO.

A) 20

B) 40

C) 60

D) 80

I
12) In an object-oriented development framework for a university, how would the classes
Degree, Mathematics, and Physics be related?
A) Degree would be a sister class to Mathematics and Physics.
B) Degree is a superclass to Mathematics and Physics.
C) Mathematics and Physics would be ancestors to Degree.
D) Degree would be a subclass to Mathematics and Physics.

9) 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
B) (1) analyzing existing processes, (2) identifying processes for change, (3) designing the
new process
C) (1) identifying processes for change, (2) designing the new process, (3) implementing the
new process
D) (1) analyzing processes to change (2) designing the new process, (3) measuring the
optimized process

8) Interpretations of Moore's law assert that

A) computing power doubles every 18 months.

B) transistors decrease in size 50% every two years.

C) data storage costs decrease by 50% every 18 months.

D) none of the above.

13) In the traditional systems development lifecycle, end users

A) are important and ongoing members of the team from the original analysis phase through
maintenance.
B) are important only in the testing phases.
C) have no input.
D) are limited to providing information requirements and reviewing the technical
staff's work.

11) IPv6 is being developed in order to

A) update the packet transmission protocols for higher bandwidth.

B) create more IP addresses.

C) allow for different levels of service.

D) support Internet2.

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

B) service provider

C) market creator

D) transaction broker

1) In Domino's upgraded Pulse Evolution system, it incorporated a Pizza Tracker

functionality that shows the progression of individual pizza orders. This is an example
of using information systems to achieve which business objective?
A) customer and supplier intimacy

B) survival

C) improved decision making

D) operational excellence

M
11) Mintzberg's classification of managerial roles outlines which three main categories?

A) interpersonal, informational, and decisional

B) symbolic, decisional, and interpersonal

C) symbolic, interpersonal, and technical

 D) technical, interpersonal, and informational

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

main business function?
A) manufacturing and accounting
B) finance and accounting

C) sales and manufacturing

D) finance and sales

N
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
A) data management environment.

B) networked environment.

C) IT infrastructure.

D) Information system

O
15) Object-oriented development could potentially reduce the time and cost of writing
software because
A) object-oriented programming requires less training.
B) iterative prototyping is not required.
C) objects are reusable.
D) a single user interface object can be used for the entire application.
1) Order data for football tickets and bar code data are examples of

A) raw input.

B) raw output.

C) customer and product data.

D) sales information.

2) Output

A) is feedback that has been processed to create meaningful information.

B) Information returned to appropriate organization members to help them evaluate
the input stage.
C) transfers data to the people who will use it or to the activities for which it will be used.

D)

transfers processed information to the people who will use it or to the activities for
which

3) Overproduction or underproduction of goods and services, misallocation of

resources, and poor response times are the results of a firm's having
A) poor relationships with suppliers.

B) poor relationships with customers.

C) inadequate information.

D) a surplus of information.

P
15) Prewritten, commercially available sets of software programs that eliminate the need
for a firm to write its own software programs for certain functions, are referred to as

A) software packages.

B) mashups.

C) outsourced software.

D) open source software.

1) Producing bills of materials is a business process within the function.

A) finance and accounting

B) human resources

C) manufacturing and production

D) sales and marketing

R
18) Reducing the business process layers in a distribution channel is called

A) disintermediation.

B) BPR.

C) market segmentation.

D) network effects.

S
17) SaaS refers to
A) supplying online access over networks to storage devices and storage area network
technology.
B) managing combinations of applications, networks,systems, storage, and security as well
as providing Web site and systems performance monitoring to subscribers over the Internet.
C) hosting and managing access to software applications delivered over the Internet
to clients on a subscription basis.

D) none of the above.

7) Selling the same goods to different targeted groups at different prices is called

A) cost customization.

B) cost optimization.

C) price gouging.

D) price discrimination.

9) Simon's description of decision making consists of which four stages?

A) planning, financing, implementation, and maintenance

B) planning, design, implementation, and maintenance

C) intelligence, design, choice, and implementation

D) intelligence, design, financing, and implementation

1) __________ systems integrate supplier, manufacturer, distributor, and customer

logistics processes.
A) Collaborative distribution

B) Supply-chain management

C) Reverse logistics

D) Enterprise planning

19) System testing

A) includes all the preparations for the series of tests to be performed on the system.
B) tests the functioning of the system as a whole in order to determine if discrete
modules will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.

T
15) The business value of an effective supply chain management system includes all of the
following except

A) faster time to market.

B) cost reduction.

C) supply matched to demand.

D) increased inventory levels.

16) The effort required to locate a suitable product is called

A) price discrimination.

B) search costs.

C) menu costs.

D) shopping costs.

6) The four kinds of structural organizational change enabled by IT, in order from least to
most risky, are
A) rationalization, automation, reengineering, and redesigning.
B) rationalization, automation, reengineering, and paradigm shift.
C) automation, rationalization, reengineering, and paradigm shift.
D) automation, redesigning, restructuring, and paradigm shift.

15) The integration of video, audio, and text marketing messages into a single marketing
message and consumer experience describes which dimension of e-commerce
technology?

A) ubiquity

B) personalization/customization

C) richness

D) interactivity

18) The leading methodology for understanding the really important information needed by
a firm's executives is called the ​method.

A) digital dashboard

B) balanced scorecard

C) KPI

D) data visualization

8) 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

B) richness

C) customization

D) interactivity

19) The measurement of the number of customers who stop using or purchasing products or
services from a company is called

A) switching costs.

B) churn rate.

C) CLTV.

D) switch rate.

11) The primary tool for representing a system's component processes and the flow of data
between them is the
A) data dictionary.
B) process specifications diagram.
C) user documentation.
D) data flow diagram.

13) The process of presenting a set of computing resources (such as computing power or
data storage) so that they can all be accessed in ways that are not restricted by physical
configuration or geographic location is called

A) cloud computing.

B) autonomic computing.

C) virtualization.

D) multicore processing.

7) The type of decision that can made by following a definite procedure is called a(n)

​decision.

A) structured

B) unstructured

C) semistructured

D) procedural

2) The average number of tickets sold daily online is an example of

A) input.

B) raw data.

C) meaningful information.

D) Feedback.

5) The four major enterprise applications are

A) SCMs, CRMs, DSSs, and KMSs.

B) SCMs, CRMs, ESSs, and KMSs.

C) enterprise systems, SCMs, DSSs, and CRMs.

D) enterprise systems, SCMs, CRMs, and KMSs.

6) The four major enterprise applications are

A) SCMs, CRMs, DSSs, and KMSs.

B) SCMs, CRMs, ESSs, and KMSs.

C) enterprise systems, SCMs, DSSs, and CRMs.

D) enterprise systems, SCMs, CRMs, and KMSs.

5) The four major types of competitive strategy are

A) low-cost leadership; substitute products and services; customers; and suppliers.

B) low-cost leadership; product differentiation; focus on market niche; and

customer and supplier intimacy.
C) new market entrants; substitute products and services; customers; and suppliers.
D) low-cost leadership; new market entrants; product differentiation; and focus on
market niche.

3) 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.

B) environment.

C) atmosphere.

D) Values.

1) The interaction between information systems and organizations is influenced

E) primarily by the decision making of middle- and senior-managers.

F) by many factors, including structure, politics, culture, and environment.

G) by two main microeconomic forces: capital and labor.

H) primarily by the organization's business processes and culture.

6) The primary activities of a firm include

A) inbound logistics, operations, outbound logistics, sales and marketing, and service.

B) inbound logistics, operations, outbound logistics, technology, and service.

C) procurement, inbound logistics, operations, technology, and outbound logistics.

D) procurement, operations, technology, sales and marketing, and services.

4) 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
A) improved flexibility.

B) improved decision making.

C) improved business practices.

D) improved efficiency.

5) The three activities in an information system that produce the information

organizations use to control operations are

A) information retrieval, research, and analysis.

B) input, output, and feedback.

C) input, processing, and output.

D) data analysis, processing, and feedback.

7) The use of digital technology and the Internet to execute the major business
processes in the enterprise is called
A) e-commerce.
B) e-business.

C) enterprise applications.

D) MIS.

6) The use of information systems because of necessity describes the business objective
of

A) survival.

B) improved business practices.

C) competitive advantage.

D) improved flexibility.

7) The value chain model

A) categorizes five related advantages for adding value to a firm's products or services.

B) sees the supply chain as the primary activity for adding value.

C) categorizes four basic strategies a firm can use to enhance its value chain.

D) helps a firm identify points at which information technology can most effectively
enhance its competitive position.

18) To understand and define the contents of data flows and data store, system builders use
A) a data dictionary.
B) process specifications diagrams.
C) user documentation.
D) data flow diagrams.

8) To what competitive force did the printed newspaper industry succumb?

A) positioning and rivalry among competitors

B) low cost of entry

C) substitute products or services

 D) customer's bargaining power

W
17) When systems are created rapidly, without a formal development methodology
A) end users can take over the work of IT specialists.
B) the organization quickly outgrows the new system.
C) hardware, software, and quality standards are less important.
D) testing and documentation may be inadequate.

9) Which of the following is not one of the unique features of e-commerce technology?

A) information density

B) transparency

C) richness

D) social technology

20) Which of the following businesses utilizes the content provider Internet business model?

A) Amazon.com

B) eBay.com

C) CNN.com

D) Motocross.com

7) Which of the following is not true about enterprise systems?

A) Enterprise systems help firms respond rapidly to customer requests for information or
products.
B) Enterprise system data have standardized definitions and formats that are accepted by
the entire organization.
C) Enterprise software is expressly built to allow companies to mimic their unique
business practices.

D) Enterprise software includes analytical tools to evaluate organizational performance.

12) 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.
B) The first three steps of the process are handled by software algorithms and the final step
is handled by experienced managers.
C) The first two steps of Simon's framework are eliminated and the final two steps are
handled by software algorithms.
D) All fours steps are performed by humans with the support of high-speed,
high-volume DSS and ESS.
13) Which of the following is a disadvantage of high-velocity, automated
decision-making systems?

A) inability to handle high volumes of decisions

B) inability to handle structured decisions

C) inability to handled semi-structured decisions

D) inability to control themselves and respond to new environments

7) Which of the following is not one of the four defining features of Web 2.0?

A) interactivity

B) real-time user control

C) cloud computing

D) social participation

18) Which of the following is NOT one of the main six factors to consider when evaluating
how much your firm should spend on IT infrastructure?

A) your firm's business strategy

B) the IT investments made by competitor firms

C) market demand for your firm's services

D) your firm's organizational culture

19) Which model can be used to analyze the direct and indirect costs to help firms
determine the actual cost of specific technology implementations?

A) total cost of ownership

B) return on investment

C) breakeven point
D) cost benefit analysis

6) Which of the following events signified the beginning of e-commerce?

A) the first online advertisements

B) the first telephone sales

C) the first online retail store

D) the first web site

12) Which of the following best illustrates the sales revenue model?

A) EBay receives a small fee from a seller if a seller is successful in selling an item.

B) Epinions receives a fee after steering a customer to a participating Web site where he
or she makes a purchase.

C) Flickr provides basic services for free, but charges a premium for advanced services.

D) Apple accepts micropayments for single music track downloads.

13) Which of the following describes long-tail marketing?

A) The unexpected growth of sales of a product long after its initial release.

B) The yearly sales of one or two copies each of thousands of obscure films.

C) The dwindling sales of a once-popular book.

D) The continued successful sales of a product over years.

14) Which type of med modules that can be used to create entire applications?
A) PC software tools
B) report generators
C) application generators
D) application software packages

0) Why is overstocking warehouses not an effective solution for a problem of low

availability?

A) It does not speed product time to market.

B) It is an inefficient use of raw materials.

C) It increases sales costs.

D) It increases inventory costs.

11) Which of the following traditional solutions enables manufacturers to deal with
uncertainties in the supply chain?

A) safety stock

B) continuous replenishment

C) just-in-time strategies

D) demand planning

14) Which supply chain planning function determines how much product is needed to
satisfy all customer demands?

A) distribution management

B) replenishment planning

C) demand planning

D) order planning

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?

A) production reports

B) business case archives

C) parameterized reports

D) forecasts, scenarios, and models

15) 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.

A) CDSS

B) MIS

C) DSS

D) ESS

16) Which of the following is not one of the six main elements in the business
intelligence environment discussed in this chapter?
A) managerial users and methods

B) organizational environment

C) user interface

D) data from the business environment

6) Which of the following statements best describes the business value of improved
decision making?

A) Improved decision making creates better products.

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.
C) Improved decision making enables senior executives to more accurately foresee
future financial trends.
D) Improved decision making strengthens customer and supplier intimacy, which
reduces costs.

8) Which type of decision is deciding whether to introduce a new product line?

A) structured

B) unstructured

C) recurring

D) nonrecurring

10) When a firm provides a specialized product or service for a narrow target market
better than competitors, they are using a strategy.
A) product differentiation

B) market niche

C) mass customization

D) process efficiency

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

A) creating a new product

B) identifying customers
C) assembling a product

D) paying creditors

12) Which of the following is not one of the four main classifications for
collaboration tools identified by the space/time matrix?

A) synchronous/colocated

B) same time/remote

C) different time/remote

D) remote/colocated

11) Which of the following is not one of the fifteen categories of collaborative
software tools?
A) file sharing

B) event scheduling

C) whiteboarding

D) Extranets

1) Which of the following is one of the support activities in a firm's value chain?

A) inbound logistics

B) operations

C) sales and marketing

D) Technology

12) Which of the following is NOT one of the competitive forces?

A) suppliers

B) other competitors

C) external environment

D) customers

13) Which of the following can force a business and its competitors to compete on
price alone?
A) transparent marketplace

B) high product differentiation

C) poor process efficiency

D) demand control

2) Which of the following activities would you perform to measure and compare
your business processes to similar processes of other companies within your
industry?
A) benchmarking

B) best practices

C) value chain analysis

D) strategic systems analysis

3) Which of the following industries has a low barrier to entry?

A) automotive

B) computer chip

C) restaurant

D) Airline

4) Which of the following are environmental actors that interact with an organization
and its information systems?

A) customers
B) suppliers

C) regulatory agencies

D) all of the above

1)
5) Which field of study focuses on both a behavioral and technical
understanding of information systems?
A) sociology
B) operations research

C) economics

D) management information systems

1)
6) 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?
A) 1 only
B) 1 and 2

C) 2 and 3

D) 1, 2, and 3

14) Which systems are typically a major source of data for other systems?

A) transaction processing systems

B) management information systems

C) executive support systems

D) decision-support systems

Y
8) You have been asked to implement enterprise software for manufacturer of kitchen
appliances. What is the first step you should take?

A) Select the functions of the system you wish to use.

B) Select the business processes you wish to automate.

C) Map the company’s business processes to the software business processes.

D) Map the software’s business processes to the company's business processes.

16) Your firm needs to implement electronic timesheet software and needs to keep within a
small budget. Which of the following would be the most costly method of implementing
this new software?

A) purchasing a software package

B) programming the new software in-house

C) leasing the software over the Internet

D) outsourcing the software programming to an overseas vendor

14) You have been hired by Inspiration Inc. to help improve their profit margin.
Inspiration Inc. is a business communications consultancy that services many clients in
different industries throughout the United States. The end products of the company are
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 100 consultants, all of whom are located in their
central headquarters in Chicago. What system do you recommend to improve the
company's business processes and increase their profit margin?
A) extranet, to enable quick collaboration over the Internet , minimize the
time spent communicating with the client, and minimize the amount of
paperwork needed
B) CRM, to maintain easily accessible customer records to minimize the time spent
looking for client data
C) KMS, for minimizing redundant work on similar clients
D) marketing system, for improving sales levels