Chapter 1 - Multiple Choice

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

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

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.

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

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of A) improved flexibility. B) improved decision making. C) improved efficiency. D) customer and supplier intimacy.

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? A) improved efficiency B) customer and supplier intimacy C) survival D) competitive advantage

Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case? A) operational excellence B) new products and services C) competitive advantage D) customer support

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.

Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output. C) customer and product data. D) sales information.

The average number of tickets sold daily online is an example of A) input. B) raw data. C) meaningful information. D) feedback.

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) 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 it will be used.

Converting raw data into a more meaningful form is called A) capturing. B) processing. C) organizing. D) feedback.

An example of raw data from a national chain of automobile stores would be A) an average of 13 Toyotas are sold daily in Kentucky. B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky. C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky. D) all of the above.

The field that 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 is called A) information systems literacy. B) information systems architecture. C) management information systems. D) information technology infrastructure.

In a hierarchical organization, the upper levels consist of A) managerial and professional employees. B) managerial, professional, and technical employees. C) professional and operational employees. D) managerial, professional, and operational employees.

Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium? A) competitive advantage B) improved decision making C) new products and services D) survival

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.

Thomas Friedman's declaration that the world was now "flat" meant that A) the Internet has reduced the economic advantages of developed countries. B) globalization is starting to offer less advantage to large corporations. C) the global economy is increasingly commanded by fewer and larger corporations. D) global capitalism is homogenizing culture and business practices throughout the world.

Data management technology consists of the A) physical hardware and media used by an organization for storing data. B) detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) software governing the organization of data on physical storage media. D) hardware and software used to transfer data.

The hardware and software used to transfer data in an organization is called A) data management technology. B) networking and data management technology. C) data and telecommunications technology. D) networking and telecommunications technology.

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.

An example of a business using information systems to create new products and services is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

An example of a business using information systems to attain operational excellence is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

An example of a business using information systems for customer and supplier intimacy is A) Wal-Mart's RetailLink system. B) the Mandarin Oriental hotel's customer-preference tracking system. C) Verizon's Web-based digital dashboard. D) Apple Inc.'s iPod.

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

Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below? A) Use IT to increase supplier loyalty. B) Use IT to increase operational efficiency. C) Use IT to create new products and business models. D) Use IT to help survive government reporting requirements. E) Use IT to achieve customer intimacy.

Which of the following would not be a complementary asset for a solar panel manufacturer? A) international solar equipment certification standards B) government funding for green technology C) centralized hierarchical decision making D) innovation-driven management team

The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? A) customer and supplier intimacy B) survival C) competitive advantage D) improved decision-making

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is A) middle management. B) service workers. C) production management. D) operational management.

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

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called A) the information value chain. B) the IT value chain. C) information processing. D) feedback.

A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? A) managerial B) governmental C) social D) organizational

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to A) invest in technology. B) adopt a new business model. C) invest in complementary assets. D) modernize their information value chain.

An example of an organizational complementary asset is A) using the appropriate business model. B) a collaborative work environment. C) laws and regulations. D) all of the above.

An example of a social complementary asset is A) technology and service firms in adjacent markets. B) training programs. C) distributed decision-making rights. D) all of the above.

Disciplines that contribute to the technical approach to information systems are A) computer science, engineering, and networking. B) operations research, management science, and computer science. C) engineering, utilization management, and computer science. D) management science, computer science, and engineering.

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is A) management science. B) MIS. C) operations research. D) utilization management.

Sociologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

Psychologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations. B) how human decision makers perceive and use formal information. C) how new information systems change the control and cost structures within the firm. D) the production of digital goods.

The costs for firms operating on a global scale have been drastically reduced by A) networking technology. B) investments in organizational complementary assets. C) the Internet. D) the rise of digital content.

Which of the following are key corporate assets? A) intellectual property, core competencies, and financial and human assets B) production technologies and business processes for sales, marketing, and finance C) knowledge and the firm's tangible assets, such as goods or services D) time and knowledge

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.

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective? A) customer intimacy B) operational excellence C) survival D) improved reporting

Which of the following would NOT be used as an input for an information system? A) digital dashboard B) handheld computer C) bar-code scanner D) cell phone

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

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.

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy? A) middle management B) production workers C) knowledge workers D) data workers

Which main business function is responsible for maintaining employee records? A) sales and marketing B) human resources C) finance and accounting D) manufacturing and production

Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? A) the specification of procedures for identifying packages with sender and recipient information 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

A managerial element in the UPS tracking system described in the chapter is A) taking inventory. B) providing package status reports to customers. C) the decision to use automation. D) in-house package tracking software.