A managerial element in the UPS tracking system described in the chapter is:

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.

Answer: C

An organizational element in the UPS tracking system described in the chapter is:

An organizational element in the UPS tracking system described in the chapter is:

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.

Answer: A

Which main business function is responsible for maintaining employee records?

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

Answer: B

Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?

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

Answer: C

The three principle levels within a business organization hierarchy are:

The three principle 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

Which field of study focuses on both a behavioral and technical understanding of information systems?

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

Answer: D

Which of the following would not be used as an input for an information system?

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

Answer: A

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 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

Answer: C

Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having:

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. surplus of information.

Answer: C

Key corporate assets are:

Key corporate assets are:

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.

Answer: A

The costs for firms operating on a global scale have been drastically reduced by:The costs for firms operating on a global scale have been drastically reduced by:

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.

Answer: C

Psychologists study information systems with an eye to understanding:

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.

Answer: B

Sociologists study information systems with an eye to understanding:

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.

Answer: A

The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control is:

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.

Answer: C

Disciplines that contribute to the technical approach to information systems are:

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.

Answer: B

An example of a social complementary asset is:

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.

Answer: A

An example of an organizational complementary asset is:

An example of an organizational complementary asset is:

a. using the appropriate business model.
b. as collaborative work environment.
c. laws and regulations.
d. all of the above.

Answer: A

Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to:

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.

Answer: B

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 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

Answer: C

From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called:

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.

Answer: A

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

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

Answer: D

In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is:

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.

Answer: D

Toyota Motor Europe's vehicle orders management system allows it to improve efficiency by basing vehicle production on:

Toyota Motor Europe's vehicle orders management system allows it to improve efficiency by basing vehicle production on:

a. superior forecasts of regional demand.
b. actual customer orders.
c. improved decision making.
d. customer preferences.

Answer: C

The fact that online advertising revenues are growing at 30% a year, while offline traditional advertising is growing at about 5% a year, suggests that:

The fact that online advertising revenues are growing at 30% a year, while offline traditional advertising is growing at about 5% a year, suggests that:

a. Internet advertising is very inexpensive.
b. offline traditional advertising is not very effective.
c. the Internet is transforming the traditional advertising business model.
d. new technologies are more efficient at selling to customers.

Answer: C

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 attract customers, what would be the best use of information technology from the list below:

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 attract customers, 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

Answer: E

Maintaining the organization's financial records is a business function of:

Maintaining the organization's financial records is a business function of:

a. accounting.
b. finance.
c. sales.
d. marketing.

Answer: A

An example of a business using information systems for customer and supplier intimacy is:

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.

Answer: B

An example of a business using information systems to attain operational excellence is:

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.

Answer: A

An example of a business using information systems to create new products and services is:

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.

Answer: D

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:

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.

Answer: C

The hardware and software used to transfer data in an organization is called:

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.

Answer: D

Data management technology consists of:

Data management technology consists of:

a. the physical hardware and media used by an organization for storing data.
b. the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
c. the software governing the organization of data on physical storage media.
d. the hardware and software used to transfer data.

Answer: C

Business processes:

Business processes:

a. include informal work practices.
b. are used primarily for sales and accounting functions.
c. are governed by information technology.
d. are logically related tasks used primarily by operational personnel.

Answer: A

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:

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.

Answer: A

A hierarchy:

A hierarchy:

a. is based on a clear-cut division of labor.
b. is composed primarily of experts trained for different functions.
c. is a pyramid structure of rising authority and responsibility.
d. all of the above.

Answer: B

In a hierarchical organization, the upper levels consist of:

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

Answer: B

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:

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.

Answer: C

An example of raw data from a national chain of automobile stores would be:

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, 2005 in Louisville, Kentucky.
d. all of the above.

Answer: C

Converting raw data into a more meaningful form is called:

Converting raw data into a more meaningful form is called:

a. capturing.
b. processing.
c. organizing.
d. feedback.

Answer: B

Output:

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.

Answer: D

The average number of tickets sold daily online is an example of:

The average number of tickets sold daily online is an example of:

a. input.
b. raw data.
c. meaningful information.
d. output.

Answer: C

Order data for baseball tickets and bar code data are examples of:

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.

Answer: A

The three activities in an information system that produce the information organizations use to control operations are:

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

Answer: C

An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:

An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:

a. decision making and control in an organization.
b. communications and data flow.
c. managers analyzing the organization's raw data.
d. the creation of new products and services

Answer: A

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:

a. improved efficiency.
b. customer and supplier intimacy.
c. survival.
d. competitive advantage.

Answer: C

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of:

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.

Answer: B

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?

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

Answer: D

The use of information systems because of necessity is:

The use of information systems because of necessity is:

a. survival.
b. improved business practices.
c. competitive advantage.
d. improved flexibility.

Answer: A

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?

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

Answer: C

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:

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.

Answer: B