Test Bank Management Information Systems Managing the Digital Firm Global Edition 18th Edition By Ke

Test Bank

l

Want to earn $1,500 extra per year?

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver) Chapter 1 Information Systems in Global Business Today 1) As discussed in the chapter-opening case, ConocoPhillips solved the problem of supply chain challenges by using which technology?

A) 3D printing B) cloud computing C) 5G networks D) Intranet Answer: A Page Ref: 5 Difficulty: Moderate AACSB: Analytical thinking LO: 1.1: Understand how information systems transform business and careers.

2) Approximately how many people in 2024 are expected to purchase something online?

A) About 1 billion B) About 2.9 billion C) About 3.5 billion D) About 4.25 billion Answer: B Page Ref: 10 Difficulty: Moderate AACSB: Information technology LO: 1.1: Understand how information systems transform business and careers.

3) All of the following describe the effects of globalization except .

A) significant decreases in operating costs B) ability to reliably obtain price and quality information worldwide C) increased ability to find low-cost suppliers D) increases in transaction costs Answer: D Page Ref: 17 Difficulty: Difficult AACSB: Analytical thinking LO: 1.2: Describe key challenges and opportunities created by new MIS technologies.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

4) Between 1998 and 2021, the United States lost manufacturing jobs to offshore producers.

A) 3 million B) 4 million C) 5 million D) 6 million Answer: C Page Ref: 19 Difficulty: Difficult AACSB: Application of knowledge LO: 1.2: Describe key challenges and opportunities created by new MIS technologies.

5) Which of the following statements about digital firms is not true?

A) In digital firms, time shifting and space shifting are the norm.

B) Today, most firms are fully digital.

C) Digital firms offer extraordinary opportunities for flexible global organization and management.

D) Digital firms sense and respond to their environments more rapidly than traditional firms.

Answer: B Page Ref: 19 Difficulty: Difficult AACSB: Information technology LO: 1.3: Describe key features of a digital firm.

6) Creating a marketing plan is an example of a business process.

Answer: TRUE Page Ref: 20 Difficulty: Easy AACSB: Application of knowledge LO: 1.3: Describe key features of a digital firm.

7) In order to be considered a digital firm, all of the firm's significant business relationships and core business processes must be digitally enabled.

Answer: FALSE Page Ref: 19 Difficulty: Easy AACSB: Application of knowledge LO: 1.3: Describe key features of a digital firm.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

8) Define business process. What might be a business process used at a hospital?

Answer: A business process is a set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated. Hiring a new employee, customer intake, and filing medical records are examples of business processes at a hospital.

Page Ref: 20 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 1.3: Describe key features of a digital firm.

9) Which of the following is not one of the six strategic business objectives that businesses are seeking to achieve when they invest in information systems?

A) Operational excellence B) Improved decision making C) Improved community relations D) Competitive advantage Answer: C Page Ref: 23 Difficulty: Difficult AACSB: Information technology LO: 1.4: Describe the business objectives of information systems.

10) All of the following are examples of challenges that required companies to create information systems as a necessity of doing business except .

A) Walmart's development of Retail Link B) Citibank's development of an ATM network C) the passage of the Toxic Substances Control Act D) the passage of the Sarbanes-Oxley Act Answer: A Page Ref: 27 Difficulty: Difficult AACSB: Information technology LO: 1.4: Describe the business objectives of information systems.

11) Which of the following companies is given as an example of a business using information systems to improve supplier intimacy?

A) Citibank B) Mandarin Oriental C) Ritz-Carlton D) Apple Answer: C Page Ref: 25 Difficulty: Difficult AACSB: Information technology LO: 1.4: Describe the business objectives of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

12) Walmart exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve which of the following?

A) The development of new products and services B) Operational efficiency C) Survival D) Customer intimacy Answer: B Page Ref: 24 Difficulty: Difficult AACSB: Information technology LO: 1.4: Describe the business objectives of information systems.

13) To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support?

A) Customer intimacy B) Survival C) New business models D) Supplier intimacy Answer: A Page Ref: 25 Difficulty: Moderate AACSB: Analytical thinking LO: 1.4: Describe the business objectives of information systems.

14) A business model describes how a company produces, delivers, and sells a product or service to generate revenue.

Answer: TRUE Page Ref: 24 Difficulty: Easy AACSB: Application of knowledge LO: 1.4: Describe the business objectives of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

15) You work for an auto dealer. How could you use information systems to achieve greater customer intimacy?

Answer: When a business really knows its customers and serves them well (customer intimacy), the customers generally respond by returning and purchasing more. This raises revenues and profits. To use information systems to achieve greater customer intimacy for an auto dealer, you could create a website and/or mobile app that allows customers to order customized cars and communicate with support personnel and other car owners. You could create an automated email service reminding car owners to take their cars in for periodic checkups. You could have an information system that tracks customer preferences in your local area, so you can offer cars that reflect local customer needs and desires.

Page Ref: 24 Difficulty: Difficult AACSB: Application of knowledge; Information technology; Written and oral communication LO: 1.4: Describe the business objectives of information systems.

16) Define operational excellence. How have information systems helped Walmart achieve it?

Answer: Operational excellence involves the achievement of higher levels of efficiency and productivity. Walmart, the largest retailer on earth, exemplifies the power of information systems coupled with state-of-the-art business practices and supportive management to achieve operational excellence. Information systems such as Walmart's Retail Link system, which digitally links its suppliers to every one of Walmart's stores, have helped Walmart achieve operational excellence by improving communications with suppliers and optimizing its supply chain. As soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement to the shelf.

Page Ref: 23 Difficulty: Moderate AACSB: Application of knowledge; Information technology; Written and oral communication LO: 1.4: Describe the business objectives of information systems.

17) The three activities in an information system that produce the information organizations use to make decisions, control operations, analyze problems, and create new products are .

A) input, processing, and output B) input, output, and feedback C) data, information, and analysis D) data analysis, processing, and feedback Answer: A Page Ref: 32 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

18) Raw data collected at checkout counters in a grocery store is an example of A) output B) processing C) feedback D) input Answer: D Page Ref: 32 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

.

19) The total number of bottles of dish detergent sold at a particular store is an example of which of the following?

A) Input B) Raw data C) Meaningful information D) Feedback Answer: C Page Ref: 31 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

20) Output .

A) is feedback that has been processed to create meaningful information B) is information that is returned to appropriate members of the organization to help them evaluate the input stage C) transforms raw data into processed information D) transfers processed information to the people who will use it or to the activities for which it will be used Answer: D Page Ref: 32 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

21) Converting raw data into a more meaningful form is called A) capturing B) processing C) organizing D) feedback Answer: B Page Ref: 32 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

22) Which of the following is an example of raw data from an automobile manufacturer?

A) An average of 120 Subarus sold daily in New York in 2020.

B) 1,200 Subaru Outbacks sold during the first quarter of 2020 in New York.

C) One Subaru Outback sold July 27, 2020 in Mohegan Lake, New York for $24,000.

D) Annual sales of Subaru Outbacks increased 5.3%.

Answer: C Page Ref: 32 Difficulty: Difficult AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

23) All of the following are examples of environmental actors in an information system except .

A) competitors B) regulatory agencies C) employees D) suppliers Answer: C Page Ref: 33 Difficulty: Moderate AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

24) Which of the following would be used as an input for an information system?

A) Sales by region report B) Sales for stores in a region C) Product ID and price D) Year-to date-sales of products Answer: C Page Ref: 32 Difficulty: Moderate AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

25) Which of the following deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm?

A) Computer literacy B) Management information systems C) Business processes D) Information technology infrastructure Answer: B Page Ref: 35 Difficulty: Moderate AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

26) Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives.

Answer: TRUE Page Ref: 30 Difficulty: Moderate AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

27) Information systems literacy focuses primarily on knowledge of information technology.

Answer: FALSE Page Ref: 35 Difficulty: Easy AACSB: Information technology LO: 1.5: Explain what an information system is and how it works.

28) What is the difference between information technology and information systems? Describe some of the functions of information systems.

Answer: Information technology (IT) consists of all the hardware and software that a firm needs to use to achieve its business objectives. Information systems are more complex. 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. An information system has managerial and organizational components as well as technology.

An information system: • supports decision making, coordination, and control.

• helps employees analyze problems.

• helps employees visualize complex subjects.

• helps create new products.

Page Ref: 30 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 1.5: Explain what an information system is and how it works.

29) You are a marketing manager for a national movie theater chain. Give an example of data that your department could use for creating meaningful information. What type of information could that data produce?

Answer: Movie ticket sales from individual theaters would be an example of raw data.

Meaningful information from this data would be the average number of tickets sold to seniors on certain days of the week.

Page Ref: 31 Difficulty: Difficult AACSB: Analytical thinking; Written and oral communication LO: 1.5: Explain what an information system is and how it works.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

30) Why is the building of a house an appropriate analogy for the building of an information system?

Answer: Houses are built with hammers, nails, and wood, but these do not make a house. The architecture, design, setting, landscaping, and all of the decisions that lead to the creation of these features are part of the house and are crucial for solving the problem of putting a roof over one's head. Computers and programs are the hammer, nails, and lumber of computer-based information systems, but alone they cannot produce the information a particular organization needs. To understand information systems, you must understand the problems they are designed to solve, their architectural and design elements, and the organizational processes that lead to these solutions.

Page Ref: 34 Difficulty: Difficult AACSB: Analytical thinking; Written and oral communication LO: 1.5: Explain what an information system is and how it works.

31) In a hierarchical business organization, the upper level consists of .

A) scientists B) senior management C) service workers D) data workers Answer: B Page Ref: 37 Difficulty: Moderate AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

32) The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of an organization's members is called its .

A) culture B) environment C) atmosphere D) business process Answer: A Page Ref: 39 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

33) Data management technology consists of which of the following?

A) Physical hardware and media used by an organization to store data B) Software governing the organization of data on physical storage media C) Two or more computers linked together to share data or resources D) Hardware and software used to transfer data Answer: B Page Ref: 41 Difficulty: Easy AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

34) Which of the following statements best describes organizational culture?

A) It encompasses the sum of beliefs and assumptions by all members.

B) It enables the organization to transcend the different levels and specialties of its employees.

C) It reflects the senior management's perspective on the organization and its goals.

D) It is a fundamental set of assumptions, values, and ways of doing things that has been accepted by most members of the organization.

Answer: D Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

35) 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) information technology (IT) infrastructure D) information system Answer: C Page Ref: 43 Difficulty: Easy AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

36) 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 Answer: B Page Ref: 38 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

37) In a business hierarchy, which of the following levels is responsible for monitoring the daily activities of the business?

A) Middle management B) Service workers C) Production management D) Operational management Answer: D Page Ref: 37 Difficulty: Moderate AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

38) Which of the following makes long-range strategic decisions about products and services as well as ensures financial performance of the firm?

A) Senior management B) Middle management C) Production workers D) Operational management Answer: A Page Ref: 37 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

39) The three principal levels within a business organization hierarchy are .

A) senior management, operational management, and service workers B) senior management, middle management, and operational management C) senior management, operational management, and information systems D) senior management, middle management, and service workers Answer: B Page Ref: 37 Difficulty: Difficult AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

40) Who of the following work at the same level as middle management?

A) Operational managers B) Production workers C) Knowledge workers D) Data workers Answer: C Page Ref: 37 Difficulty: Moderate AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

41) Which of the following business functions is responsible for maintaining employee records?

A) Sales and marketing B) Human resources C) Finance and accounting D) Manufacturing and production Answer: B Page Ref: 38 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

42) Which of the following constitutes an organizational element in the UPS package tracking system described in the chapter?

A) Anchoring the system in UPS's sales and production functions.

B) Monitoring service levels C) Promoting the company strategy of low-cost, superior service D) The use of handheld computers and networks for managing package delivery Answer: A Page Ref: 48 Difficulty: Difficult AACSB: Analytical thinking LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

43) Which of the following constitutes a managerial element in the UPS tracking system described in the chapter?

A) The specifications for required procedures for identifying packages B) The decision to use computer systems to increase the ease of sending a package using UPS C) Training provided to UPS drivers D) In-house package tracking software Answer: B Page Ref: 49 Difficulty: Moderate AACSB: Analytical thinking LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

44) Which of the following is a global network that uses universal standards to connect millions of different networks around the world?

A) An extranet B) The World Wide Web C) The Internet D) An intranet Answer: C Page Ref: 42 Difficulty: Easy AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

45) Which of the following is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format on the Internet?

A) HTML B) The World Wide Web C) Email D) An extranet Answer: B Page Ref: 42 Difficulty: Easy AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

46) Which of the following is a private corporate network extended to authorized users outside the organization?

A) An intranet B) The World Wide Web C) The Internet D) An extranet Answer: D Page Ref: 42 Difficulty: Easy AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

47) The three main dimensions of information systems are management, organizations, and information technology.

Answer: TRUE Page Ref: 36 Difficulty: Moderate AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

48) Knowledge workers make long-range strategic decisions about products and services.

Answer: FALSE Page Ref: 37 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

49) There are four major business functions: human resources; manufacturing and production; finance and accounting; and information technology.

Answer: FALSE Page Ref: 38 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

50) Parts of an organization's culture can usually be found embedded in its information systems.

Answer: TRUE Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

51) All business processes are formally documented by an organization.

Answer: FALSE Page Ref: 39 Difficulty: Moderate AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

52) Creative work driven by new knowledge and information is a significant part of management responsibility.

Answer: TRUE Page Ref: 40 Difficulty: Easy AACSB: Application of knowledge LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

53) Intranets are used by organizations to coordinate their activities with other firms for making purchases, collaborating on design, and other interorganizational work.

Answer: FALSE Page Ref: 42 Difficulty: Moderate AACSB: Information technology LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

54) Describe the role that management plays in an organization. What role can information technology play in helping managers?

Answer: Management's job is to make sense of the many situations faced by organizations, make decisions, and formulate action plans to solve organizational problems. Managers perceive business challenges in the environment, they set the organizational strategy for responding to those challenges, and they allocate the human and financial resources to coordinate the work and achieve success. Throughout, they must exercise responsible leadership. But managers must do more than manage what already exists. They must also create new products and services and even re-create the organization from time to time. A substantial part of management responsibility is creative work driven by new knowledge and information. Information technology can play a powerful role in helping managers design and deliver new products and services and redirecting and redesigning their organizations. Information technology is also one of many tools managers can use to cope with change and innovation in products, minimize warehouse overhead, and streamline distribution.

Page Ref: 40 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

55) This chapter discusses how each organization has its own culture and sets of values shared by most of its members. What kind of shared values might you find at a law firm?

Answer: Shared values at a law firm might be: The legal system works, the legal system is fair, lawyers help people, and people need help with the legal system because it is complicated.

Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 1.6: Describe organizational, management, and technology dimensions of information systems.

56) The Internet of Everything (IoE) describes a network of physical objects that are embedded with sensors, software, and other technologies enabling them to connect and exchange data with other devices and systems via the Internet.

Answer: FALSE Page Ref: 50 Difficulty: Moderate AACSB: Information technology LO: 1.7: Understand the importance of IoT, big data, cloud computing, and AI. 57) Connected devices, as well as data from websites and other sources, generate big data.

Answer: TRUE Page Ref: 51 Difficulty: Moderate AACSB: Information technology LO: 1.7: Understand the importance of IoT, big data, cloud computing, and AI.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

58) Which of the following is not a key organizational complementary asset?

A) Supportive business culture that values efficiency and effectiveness B) Efficient business processes C) Incentive systems that monitor and reward individual innovation D) A strong information systems development team Answer: C Page Ref: 58 Difficulty: Difficult AACSB: Analytical thinking LO: 1.8: Understand why complementary assets are essential.

59) A corporation that funds an employee training program to enhance the development of decision-making skills could be seen as investing in which main category of complementary assets?

A) Managerial B) Governmental C) Social D) Organizational Answer: A Page Ref: 58 Difficulty: Moderate AACSB: Analytical thinking LO: 1.8: Understand why complementary assets are essential.

60) Which of the following is an example of an organizational complementary asset?

A) Efficient business processes B) A collaborative work environment C) Laws and regulations D) The Internet and telecommunications infrastructure Answer: A Page Ref: 58 Difficulty: Moderate AACSB: Application of knowledge LO: 1.8: Understand why complementary assets are essential.

61) Which of the following is an example of a social complementary asset?

A) Technology and service firms in adjacent markets to assist implementation B) Teamwork and collaborative work environments C) Distributed decision-making rights D) Incentives for management innovation Answer: A Page Ref: 58 Difficulty: Moderate AACSB: Application of knowledge LO: 1.8: Understand why complementary assets are essential.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

62) Which of the following is not an expression of a superior return on the investment in an information system?

A) Increase in productivity B) Increase in revenue C) Increase in the firm's stock market value D) Increase in firm transaction costs Answer: D Page Ref: 55 Difficulty: Difficult AACSB: Information technology LO: 1.8: Understand why complementary assets are essential.

63) Which of the following is not true about Cloud computing?

A) It makes it possible for organizations to acquire much more analytical and processing power to expand the reach of their systems.

B) It provides a more robust IT infrastructure than what is typically available on-site for artificial intelligence applications.

C) Organizations and individuals can access these resources at any time and at any place using an Internet-connected device.

D) It is a model of computing in which only storage is offloaded to the Internet.

Answer: D Page Ref: 51 Difficulty: Difficult AACSB: Information technology LO: 1.8: Understand why complementary assets are essential.

64) Which of the following is not a skill connected with artificial intelligence (AI)?

A) It works with small amounts of data.

B) It is a type of artificial intelligence.

C) It is focused on building computer systems that can learn and improve on their own.

D) It uses mathematical models (algorithms) to identify patterns.

Answer: C Page Ref: 51 Difficulty: Easy AACSB: Information technology LO: 1.8: Understand why complementary assets are essential.

65) Which of the following is not true about machine learning (ML)?

A) Speech recognition B) Visual perception C) Ignoring past experiences D) Recognizing patterns Answer: A Page Ref: 52 Difficulty: Difficult AACSB: Information technology LO: 1.8: Understand why complementary assets are essential.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

66) Which of the following is not a Generative AI tool?

A) ChatGPT B) Google's Gemini C) Microsoft's Copilot D) Adobe's GAI Answer: D Page Ref: 52 Difficulty: Moderate AACSB: Information technology LO: 1.8: Understand why complementary assets are essential.

67) Social complementary assets are investments made by a firm to optimize its return on information technology assets.

Answer: FALSE Page Ref: 58 Difficulty: Difficult AACSB: Application of knowledge LO: 1.8: Understand why complementary assets are essential.

68) What are complementary assets and how does investment in them impact returns on technology investments?

Answer: Complementary assets are those assets required to derive value from a primary investment. Research indicates that firms that support their technology investments with investments in complementary assets, such as new business models, new business processes, management behavior, organizational culture, or training, receive superior returns, whereas those firms failing to make these complementary investments receive less or no returns on their information technology investments.

Page Ref: 56 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 1.8: Understand why complementary assets are essential.

69) Which of the following is not one of the technical approaches to Information Systems?

A) Computer Science B) Economics C) Management Science D) Operations Research Answer: B Page Ref: 60 Difficulty: Moderate AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

70) Which of the following is not one of the behavioral approaches to Information Systems?

A) Computer Science B) Economics C) Sociology D) Psychology Answer: A Page Ref: 60 Difficulty: Moderate AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

71) MIS combines the work of computer science, science, and operations research with a practical orientation toward developing system solutions to real-world problems.

A) management B) behavioral C) economic D) human resource Answer: A Page Ref: 60 Difficulty: Difficult AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

72) The behavioral approach to information systems emphasizes mathematically-based models to study information systems.

Answer: FALSE Page Ref: 61 Difficulty: Moderate AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

73) Computer science is concerned with establishing theories of computability, methods of computation, and methods of efficient data storage and access.

Answer: TRUE Page Ref: 61 Difficulty: Moderate AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

74) In the sociotechnical view of systems, optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production.

Answer: TRUE Page Ref: 63 Difficulty: Moderate AACSB: Information technology LO: 1.9: Describe different approaches used to study information systems.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

75) Which of the following is not one of the ways this book prepares you for the future?

A) It will give you a complete description of how to describe and analyze information systems.

B) It will help you understand the business applications of technology.

C) It will give you a framework for describing and analyzing information systems.

D) It will give you a model for problem solving.

Answer: A Page Ref: 65 Difficulty: Moderate AACSB: Information technology LO: 1.10: Understand how this book prepares you for the future.

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver)

Management Information Systems: Managing the Digital Firm, 18e, Global Edition (Laudon, Laudon, & Traver) Chapter 2 Global E-Business and Collaboration 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 Answer: C Page Ref: 39 Difficulty: Moderate AACSB: Application of knowledge LO: 2.1: Understand how business processes relate to information systems.

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

A) Identifying customers B) Shipping a product C) Fulfilling a customer order D) Hiring employees Answer: C Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking LO: 2.1: Understand how business processes relate to information systems.

3) Order fulfillment involves all of the following business processes except A) checking the customer's credit B) assembling the product C) submitting the order D) making customers aware of the product Answer: D Page Ref: 39 Difficulty: Moderate AACSB: Application of knowledge LO: 2.1: Understand how business processes relate to information systems.

.

4) The function is responsible for making sure customers are aware of the company's products.

A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing Answer: D Page Ref: 39 Difficulty: Easy AACSB: Application of knowledge

LO: 2.1: Understand how business processes relate to information systems.

5) Which of the following is not a true statement with respect to business processes?

A) Every business can be seen as a collection of business processes.

B) Analyzing business processes can enable you to achieve a clear understanding of how a business actually works.

C) The performance of a business firm typically is not related to its business processes.

D) Business processes can be either a source of competitive strength or a liability.

Answer: C Page Ref: 38 Difficulty: Difficult AACSB: Analytical thinking LO: 2.1: Understand how business processes relate to information systems.

6) Checking for quality is a business process handled by the marketing function.

Answer: FALSE Page Ref: 39 Difficulty: Moderate AACSB: Information technology LO: 2.1: Understand how business processes relate to information systems.

7) A business process must be tied to just one specific functional area.

Answer: FALSE Page Ref: 38 Difficulty: Moderate AACSB: Analytical thinking LO: 2.1: Understand how business processes relate to information systems.

8) How can information systems and information technology be used to improve business processes?

Answer: Information systems can be used to automate many steps in business processes that were formerly performed manually, such as checking a client's credit or generating an invoice and shipping order. New information technology can actually change the flow of information, making it possible for many more people to access and share information, replacing sequential steps with tasks that can be performed simultaneously, and eliminating delays in decision making. New information technology also frequently changes the way a business works and supports entirely new business models. For example, downloading a Kindle e-book from Amazon, buying a computer online at Best Buy, and downloading a music track from iTunes are entirely new business processes based on new business models that would be inconceivable without today's information technology.

Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 2.1: Understand how business processes relate to information systems.

9) What are cross-functional business processes? Give an example.

Answer: Cross-functional processes are those that require input, cooperation, or coordination between the major business functions in an organization. For instance, when a sales department receives an order, the major business functions of planning, production, inventory control, shipping, accounting, and customer relations will all be involved before the order is completed.

The order passes first to accounting to ensure the customer can pay for the order either by a credit verification or request for immediate payment prior to shipping. Once the customer credit is established, the production department pulls the product from inventory or produces the product. Then the product is shipped (and this may require working with a logistics firm, such as UPS or FedEx). A bill or invoice is generated by the accounting department, and a notice is sent to the customer indicating that the product has shipped. The sales department is notified of the shipment and prepares to support the customer by answering calls or fulfilling warranty claims.

What at first appears to be a simple process, fulfilling an order, turns out to be a very complicated series of business processes that require the close coordination of major functional groups in a firm.

Page Ref: 39 Difficulty: Moderate AACSB: Analytical thinking; Written and oral communication LO: 2.1: Understand how business processes relate to information systems.

10) Which of the following systems would an organization use to compare total annual sales for a specific product to a planned target?

A) ESS B) TPS C) MIS D) DSS Answer: C Page Ref: 42 Difficulty: Moderate AACSB: Analytical thinking LO: 2.2: Explain how information systems serve different management groups.

11) Which of the following statements about a TPS is not true?

A) A TPS failure for even a few hours can lead to a firm's demise.

B) A TPS supports operational management.

C) TPS typically supply data to a firm's ESS. D) Tracking the flow of transactions within an organization is one of the principal purposes of a TPS. Answer: C Page Ref: 40 Difficulty: Difficult AACSB: Analytical thinking LO: 2.2: Explain how information systems serve different management groups.

12) Managers use which of the following systems to monitor the status of internal operations and the firm's relations with the external environment?

A) DSS B) KWS C) TPS D) MIS Answer: C Page Ref: 40 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

13) A(n) is typically a major source of data for other systems.

A) TPS B) MIS C) ESS D) DSS Answer: A Page Ref: 41 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

14) The term management information systems refers to a specific category of information systems serving .

A) integrated data processing throughout the firm B) transaction process reporting C) employees with online access to historical records D) middle management functions Answer: D Page Ref: 41 Difficulty: Easy AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

15) Which of the following would a manager use to determine the impact on production schedule if sales doubled in the next quarter?

A) MIS B) TPS C) ESS D) DSS Answer: D Page Ref: 43 Difficulty: Moderate AACSB: Analytical thinking LO: 2.2: Explain how information systems serve different management groups.

16) A system that reports summaries on the total moving, house hunting, and home financing costs for employees in all company divisions is an example of which of the following?

A) KMS B) TPS C) ESS D) MIS Answer: D Page Ref: 41 Difficulty: Difficult AACSB: Analytical thinking LO: 2.2: Explain how information systems serve different management groups.

17) Which of the following systems is used to focus on non-routine business problems that are unique and rapidly changing?

A) MIS B) TPS C) ESS D) DSS Answer: D Page Ref: 43 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

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

A) Operational management B) End-users C) Middle management D) Senior management Answer: D Page Ref: 44 Difficulty: Easy AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

19) Which of the following systems incorporates data from external events as well as summarized information from internal business intelligence systems?

A) TPS B) ESS C) MIS D) DSS Answer: B Page Ref: 44 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

20) All of the following are examples of business intelligence systems except a system that .

A) summarizes and reports on a company's basic operations B) tracks the flow of materials in a factory C) focuses on problems that are unique and rapidly changing D) compares total annual sales figures for specific products to planned targets Answer: B Page Ref: 41 Difficulty: Difficult AACSB: Application of knowledge LO: 2.2: Explain how information systems serve different management groups.

21) Which of the following systems typically uses a BI dashboard to display an array of charts and graphs of a business's key performance indicators?

A) MIS B) TPS C) ESS D) CRM Answer: C Page Ref: 44 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

22) 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 Page Ref: 40 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

23) A DSS enables business analysts to use sophisticated analytics and models to analyze data.

Answer: TRUE Page Ref: 43 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

24) You would use a TPS to help determine if your business should introduce a new product line.

Answer: FALSE Page Ref: 40 Difficulty: Moderate AACSB: Analytical thinking LO: 2.2: Explain how information systems serve different management groups.

25) Managers rely on TPS for nonroutine decision making.

Answer: FALSE Page Ref: 40 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

26) Most TPS use sophisticated mathematical models or statistical techniques.

Answer: FALSE Page Ref: 40 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

27) A DSS only uses information from external sources.

Answer: FALSE Page Ref: 43 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

28) An organization's MIS and DSS supply an ESS with summarized information.

Answer: TRUE Page Ref: 44 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

29) Operational managers use ESS to keep track of the elementary activities and transactions of the organization.

Answer: FALSE Page Ref: 44 Difficulty: Moderate AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

30) A web interface used to present integrated personalized business content to users is called a portal.

Answer: TRUE Page Ref: 44 Difficulty: Easy AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

31) An SCM is considered to be an intraorganizational system because it automates the flow of information across organizational boundaries.

Answer: FALSE Page Ref: 46 Difficulty: Difficult AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

32) A TPS is an information system that keeps track of all of the daily routine transactions of a business.

Answer: TRUE Page Ref: 40 Difficulty: Easy AACSB: Information technology LO: 2.2: Explain how information systems serve different management groups.

33) Identify and discuss the major types of information systems used by different levels of management within a business. What are the relationships among these systems?

Answer: The four major categories of information systems are: 1. Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business. They are used by operational managers to manage day-to-day operations.

2. Management information systems (MIS) summarize and report on the company's basic operations using data supplied by TPS. They provide middle managers with reports on the organization's current performance and are not highly analytical.

3. Decision-support systems (DSS) also support middle management decisions when these decisions are unique, rapidly changing, and not specified easily in advance. They provide more advanced analytical models and data analysis capabilities than MIS and often draw on information from external as well as internal sources such as TPS and MIS reports.

4. Executive support systems (ESS) support senior management. ESSs filter, compress, and track critical data, and then display the data of greatest importance to senior management decision makers for their use in making nonroutine decisions requiring judgment, evaluation, and insight. ESSs present graphs and data from many sources, both external and internal, through an interface, often a portal, that is easy for senior managers to use.

The various types of systems in the organization exchange data with one another. TPSs are a major source of data for other systems, especially MIS and DSS. ESSs primarily receive data from external systems, but also draw summarized information from internal MIS and DSS. Page Ref: 40 Difficulty: Moderate AACSB: Analytical thinking; Information technology; Written and oral communication LO: 2.2: Explain how information systems serve different management groups.

34) What is a BI dashboard, and why are they becoming an increasingly popular tool?

Answer: A BI dashboard displays graphical information and charts of key performance indicators on a single screen. They are becoming increasingly popular because they provide comprehensive and accurate information for decision making that helps managers quickly spot areas that need attention.

Page Ref: 45 Difficulty: Difficult AACSB: Application of knowledge; Information technology; Written and oral communication LO: 2.2: Explain how information systems serve different management groups.

35) What is an important benefit of an enterprise application?

A) Enabling the creation of business intelligence B) Helping businesses become more flexible and productive by enabling business functions and departments to share information and coordinate their business processes more closely C) Providing answers to nonroutine questions D) Enabling cost-effective e-business processes Answer: B Page Ref: 29 Difficulty: Difficult AACSB: Analytical thinking LO: 2.3: Explain how enterprise applications improve firm performance.

36) Which of the following systems is designed to coordinate business processes across the firm, spanning functional areas and organizational levels?

A) DSS B) MIS C) CRM D) Enterprise applications Answer: D Page Ref: 45 Difficulty: Easy AACSB: Information technology LO: 2.3: Explain how enterprise applications improve firm performance.

37) 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.

A) transaction processing B) enterprise C) automatic reporting D) management information Answer: B Page Ref: 45 Difficulty: Moderate AACSB: Information technology LO: 2.3: Explain how enterprise applications improve firm performance.