Principles of IS for Mgmt Exam 1

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  1. Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.
    TRUE
  2. A business model describes how a company produces, delivers, and sells a product or service to create wealth.
    TRUE
  3. Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.
    FALSE
  4. An extranet is a private intranet extended to authorized users outside the organization.
    TRUE
  5. Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.
    FALSE
  6. The dimensions of information systems are people, organizations, and information technology.
    TRUE
  7. In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.
    TRUE
  8. Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.
    TRUE
  9. Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.
    FALSE
  10. Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.
    TRUE
  11. A network requires at least three computers and a shared resource.
    FALSE
  12. An IT infrastructure provides the platform on which the firm can build its information systems.
    TRUE
  13. UPS's use of Web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own Web sites was an information systems solution used to achieve customer intimacy
    TRUE
  14. Identifying a problem includes agreeing that a problem exists.
    TRUE
  15. Political conflict is an example of the people dimension of business problems.
    FALSE
  16. As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.
    TRUE
  17. IT managerial jobs are outsourced easily because of the universal standards used by the Internet.
    FALSE
  18. An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.
    TRUE
  19. Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
    FALSE
  20. There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
    FALSE
  21. As discussed in the chapter opening case, the Giants' new ticketing information systems is an effort to achieve which of the primary business objectives?
    Improved decision making
  22. Journalist Thomas Friedman's description of the world as "flat" referred to:
    the flattening of economic and cultural advantages of developed countries.
  23. The six important business objectives of information system investment include all of the following except:
    employee morale.
  24. The use of information systems because of necessity describes the business objective of:
    survival.
  25. All of the following choices describe ways for a company to achieve a competitive advantage, except:
    implementing information systems to support better management decision making.
  26. Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of:
    improved decision making.
  27. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:
    survival.
  28. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:
    decision making and control in an organization.
  29. The three activities in an information system that produce the information organizations use to control operations are:
    input, processing, and output.
  30. All of the following describe the effects of globalization except:
    increases in transaction costs.
  31. The average number of tickets sold daily online is an example of:
    meaningful information.
  32. Output:
    transfers processed information to the people who will use it or to the activities for which it will be used.
  33. Senior management is responsible for directing the day-to-day activities of the business.
    FALSE
  34. Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.
    FALSE
  35. Transaction processing systems are most commonly encountered at the senior management level of an organization.
    FALSE
  36. TPS help managers monitor the firm's relations with the external environment.
    TRUE
  37. A hotel reservation system is a typical example of a management information system.
    FALSE
  38. The decision to grant credit to a customer is normally made by a senior manager.
    FALSE
  39. Transaction processing systems are the basic business systems that serve the operational level of the organization
    TRUE
  40. Management information systems primarily support nonroutine decision making.
    FALSE
  41. Most MISs use sophisticated mathematical models or statistical techniques.
    FALSE
  42. Deciding whether to introduce a new product line is the responsibility of an operational manager.
    FALSE
  43. Decision-support systems often use information from external sources.
    TRUE
  44. ESSs are designed to serve the middle management of the organization.
    FALSE
  45. ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
    TRUE
  46. ESSs are designed primarily to solve specific problems.
    FALSE
  47. Information supplied by an enterprise system is structured around cross-functional business processes.
    TRUE
  48. Supply chain management systems are more externally oriented than enterprise systems.
    TRUE
  49. A business is a formal or informal organization created to sell services or products.
    FALSE
  50. Enterprise systems do not utilize order transaction data.
    FALSE
  51. Teams are formal business groups that are created to accomplish a specific task.
    TRUE
  52. A business process is a single step taken in a set of logically related activities that accomplish a specific business task.
    FALSE
  53. The five basic entities that make up any business are suppliers, customers, employees, products and services, and:
    invoices and payments.
  54. Promoting the organization's products or services is a responsibility of the ________ function
    sales and marketing
  55. Checking for product quality is an activity associated with the ________ function.
    manufacturing and production
  56. Which of the following is a cross-functional business process?
    Fulfilling a customer order
  57. Employees that assist with paperwork at all levels of the firm are called:
    data workers.
  58. The three principal levels of hierarchies within a business organization are:
    senior management, middle management, and operational management.
  59. Key forces in a business's immediate environment include:
    regulations.
  60. Engineers and architects are examples of:
    knowledge workers
  61. Which of the following is an example of a key force in a firm's broader, less immediate environment?
    Economic trends
  62. A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n):
    transaction-processing system.
  63. Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?
    TPS
  64. A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of:
    management information systems.
  65. The term "management information systems" designates a specific category of information systems serving:
    middle management functions.
  66. These systems are designed to summarize and report on the company's basic operations.
    Management information systems
  67. ________ support making decisions that are unique, rapidly changing, and not easily specified in advance.
    Decision support systems
  68. Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?
    MIS
  69. These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance.
    Decision support systems
  70. Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?
    DSS
  71. DSS and MIS are also referred to as ________ systems.
    business intelligence
  72. Executive support systems are information systems that support the:
    long-range planning activities of senior management.
  73. A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
    TRUE
  74. A primary challenge in BPM is employee resistance.
    TRUE
  75. Customers are one of the competitive forces that affect an organization's ability to compete.
    TRUE
  76. A transparent marketplace means that there is high product differentiation.
    FALSE
  77. Studies show that about half of a business firm's profits can be explained by alignment of IT with business.
    TRUE
  78. The greatest barrier to changing business processes is, ironically, management itself.
    FALSE
  79. In the strategy of product differentiation, information systems are used to enable new products and services
    TRUE
  80. BPM is considered concluded when the new processes are both implemented and accepted.
    FALSE
  81. Strong linkages to customers and suppliers increase switching costs.
    TRUE
  82. The effect of the Internet has been to raise bargaining power over suppliers.
    TRUE
  83. In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
    TRUE
  84. In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.
    TRUE
  85. The value chain model classifies all company activities as either primary or support.
    TRUE
  86. The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.
    TRUE
  87. The law of diminishing returns always applies to digital, as well as traditional products.
    FALSE
  88. The more people that use Microsoft Office software and related products, the lower its value.
    FALSE
  89. The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
    FALSE
  90. Probably the best single way to reduce quality problems is to reduce cycle time.
    TRUE
  91. Business process reengineering is the radical redesign of business processes.
    TRUE
  92. Benchmarks are specific standards for business processes set by industry leaders.
    FALSE
  93. Which of the following is not one of the competitive forces of Porter's model?
    External environment
  94. A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces?
    New market entrants
  95. Which of the following industries has the lowest barrier to entry?
    Restaurant
  96. A substitute product of most concern for a cable TV distributor is:
    satellite TV.
  97. Which of the following can force a business and its competitors to compete on price alone?
    Transparent marketplace
  98. A firm can exercise greater control over its suppliers by having:
    more suppliers.
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Principles of IS for Mgmt Exam 1
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2016-02-02 16:37:41
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Principles of IS for Mgmt Exam 1
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