Test Bank For Essentials Of Mis, 11th Edition

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1Essentials of Management Information Systems, 11e(Laudon)Chapter 1Business Information Systems in Your Career1) Purchase of information systems and telecommunications equipment constituted more thanhalf of all capital investment in the United States in 2013.Answer: TRUEDiff: 2Page Ref:5AACSB: Information technologyCASE: Comprehension2) A business model describes how a company produces, delivers, and sells a product or serviceto create wealth.Answer: TRUEDiff: 1Page Ref:11AACSB: Application of knowledgeCASE: Comprehension3) Information systems consists of all the hardware and software that a firm needs to use in orderto achieve its business objectives.Answer: FALSEDiff: 2Page Ref:13AACSB: Information technologyCASE: Comprehension4) An extranet is a private intranet extended to authorized users outside the organization.Answer: TRUEDiff: 1Page Ref:17AACSB: Information technologyCASE: Comprehension5) Information systems literacy describes the behavioral approach to information systems, whilecomputer literacy describes the technical approach.Answer: FALSEDiff: 1Page Ref:15AACSB: Information technologyCASE: Comprehension6) The dimensions of information systems are people, organizations, and informationtechnology.Answer: TRUEDiff: 1Page Ref:15AACSB: Information technologyCASE: Comprehension

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27) In order to understand how a specific business firm uses information systems, you need toknow something about the history and culture of the company.Answer: TRUEDiff: 1Page Ref:16AACSB: Information technologyCASE: Comprehension8) Developing a new product, fulfilling an order, or hiring a new employee are all examples ofbusiness processes.Answer: TRUEDiff: 1Page Ref:16AACSB: Application of knowledgeCASE: Comprehension9) Business processes are those logically related tasks for accomplishing tasks that have beenformally encoded by an organization.Answer: FALSEDiff: 2Page Ref:16AACSB: Application of knowledgeCASE: Comprehension10) Employee attitudes about their jobs, employers, or technology can have a powerful effect ontheir abilities to use information systems productively.Answer: TRUEDiff: 1Page Ref:16AACSB: Information technologyCASE: Comprehension11) A network requires at least three computers and a shared resource.Answer: FALSEDiff: 2Page Ref:17AACSB: Information technologyCASE: Comprehension12) An IT infrastructure provides the platformon which the firm can build its informationsystems.Answer: TRUEDiff: 1Page Ref:17AACSB: Information technologyCASE: Comprehension

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313) UPS's use of Web-based tools that allow customers to embed UPS functions, such astracking and cost calculations, into their own Web sites was an information systems solutionused to achieve customer intimacy.Answer: TRUEDiff: 3Page Ref:19AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize14) Identifying a problem includes agreeing that a problem exists.Answer: TRUEDiff: 1Page Ref:21AACSB: Application of knowledgeCASE: Comprehension15) Political conflict is an example of the people dimension of business problems.Answer: FALSEDiff: 3Page Ref:21-22AACSB: Application of knowledgeCASE: Comprehension16) As a result of new public laws, accountants are beginning to perform more technical duties,such as auditing systems and networks.Answer: TRUEDiff: 2Page Ref:25AACSB: Information technologyCASE: Comprehension17) IT managerial jobs are outsourced easily because of the universal standards used by theInternet.Answer: FALSEDiff: 2Page Ref:27AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of examine18) An understanding of enterprise-wide systems for customer relationship management is oneof the skills relevant to careers in marketing.Answer: TRUEDiff: 2Page Ref:26AACSB: Information technologyCASE: Comprehension19) Whereas marketing and financial careers have been transformed by the growth ininformation systems, management has-so far-remained relatively unaffected.Answer: FALSEDiff: 2Page Ref:26AACSB: Information technologyCASE: Comprehension

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420) There are two types of outsourcing: offshore outsourcing and foreign outsourcing.Answer: FALSEDiff: 2Page Ref:27AACSB: Application of knowledgeCASE: Comprehension21) As discussed in the chapter opening case, the Giants' new ticketing information systems is aneffort to achieve which of the primary business objectives?A) Customer and supplier intimacyB) Improved decision makingC) Operational excellenceD) New products and servicesAnswer: BDiff: 3Page Ref:4AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of compare22) Journalist Thomas Friedman's description of the world as "flat" referred to:A) the flattening of economic and cultural advantages of developed countries.B) the use of the Internet and technology for instantaneous communication.C) the reduction in travel times and the ubiquity of global exchange and travel.D) the growth of globalization.Answer: ADiff: 2Page Ref:10AACSB: Application of knowledgeCASE: Comprehension23) The six important business objectives of information system investment include all of thefollowingexcept:A) competitive advantage.B) employee morale.C) improved decision making.D) survival.Answer: BDiff: 2Page Ref:11AACSB: Application of knowledgeCASE: Comprehension

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524) 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.Answer: ADiff: 2Page Ref:12AACSB: Information technologyCASE: Comprehension25) All of the following choices describe ways for a company to achieve a competitiveadvantage,except:A) producing a superior product and charging less than competitors.B) implementing information systems to support better management decision making.C) garnering more sales and profits than your competitors.D) using information systems to create new and popular products that your competitors cannotduplicate.Answer: BDiff: 3Page Ref:12AACSB: Analytical thinkingCASE: Analysis in terms of compare26) 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: BDiff: 2Page Ref:12AACSB: Information technology; Analytical thinkingCASE: Analysis in terms of categorize27) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates theinformation system business objective of:A) improved efficiency.B) customer and supplier intimacy.C) survival.D) competitive advantage.Answer: CDiff: 2Page Ref:12AACSB: Information technology; Analytical thinkingCASE: Analysis in terms of categorize

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628) An information system can be defined technically as a set of interrelated components thatcollect (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: ADiff: 2Page Ref:13AACSB: Information technologyCASE: Comprehension29) The three activities in an information system that produce the information organizations useto 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: CDiff: 1Page Ref:13AACSB: Information technologyCASE: Comprehension30) All of the following describe the effects of globalizationexcept:A) significant decreases in operating costs.B) reduction of labor costs through outsourcing.C) ability to find low-cost suppliers.D) increases in transaction costs.Answer: DDiff: 3Page Ref:10-11AACSB: Analytical thinkingCASE: Analysis in terms of appraise; differentiate31) The average number of tickets sold daily online is an example of:A) input.B) raw data.C) meaningful information.D) output.Answer: CDiff: 1Page Ref:13AACSB: Analytical thinkingCASE: Analysis in terms of categorize

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732) 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 themevaluate the input stage.C) transfers raw 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 itwill be used.Answer: DDiff: 1Page Ref:13AACSB: Information technologyCASE: Comprehension33) Converting raw data into a more meaningful form is called:A) capturing.B) processing.C) organizing.D) feedback.Answer: BDiff: 1Page Ref:13AACSB: Information technologyCASE: Comprehension34) An example of raw data from a national chain of automobile stores would be:A) average of 13 Toyotas sold daily in Kentucky in 2007.B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky.C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky-$28000.D) annual sales of Toyota RAV4s increased 2.4 percent.Answer: CDiff: 3Page Ref:13AACSB: Analytical thinkingCASE: Analysis in terms of categorize35) Electronic computers and related software programs are the technical foundation, the toolsand materials, of:A) all business procedures.B) information accumulation.C) modern information systems.D) all industrialized countries.Answer: CDiff: 2Page Ref:14-15AACSB: Information technologyCASE: Comprehension

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836) The field that deals with behavioral issues, as well as technical issues surrounding thedevelopment, use, and impact of information systems used by managers and employees in thefirm, is called:A) information systems literacy.B) information systems architecture.C) management information systems.D) information technology infrastructure.Answer: CDiff: 2Page Ref:15AACSB: Application of knowledgeCASE: Comprehension37) A hierarchy:A) results in 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) is used primarily in large organizations to define job roles.Answer: CDiff: 1Page Ref:16AACSB: Application of knowledgeCASE: Comprehension38) In a hierarchical organization, the upper levels consist of:A) managerial and professional workers.B) managerial, professional, and technical workers.C) professional and operational workers.D) managerial, professional, and operational workers.Answer: BDiff: 2Page Ref:16AACSB: Application of knowledgeCASE: Comprehension39) The fundamental set of assumptions, values, and ways of doing things that has been acceptedby most of a company's members is called its:A) culture.B) environment.C) atmosphere.D) values.Answer: ADiff: 1Page Ref:16AACSB: Application of knowledgeCASE: Comprehension

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940) All of the following can be considered managerial responsibilitiesexcept:A) making action plans to solve organizational problems.B) creating new products and services.C) designing new information systems.D) allocating human resources to coordinate the work to be done.Answer: CDiff: 2Page Ref:17AACSB: Analytical thinkingCASE: Analysis in terms of compare41) 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 hardwarecomponents 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: CDiff: 2Page Ref:17AACSB: Information technologyCASE: Comprehension42) A database that receives employee manual input of customer names and addresses is riddledwith errors and you have been charged with rectifying the situation. In taking an organizationalperspective of this problem, you would be considering:A) the skill levels of the employees inputting the data.B) the training given to the employees inputting the data.C) the types of reviews in place for selecting data input personnel.D) the types of automatic error checking provided by the input software.Answer: CDiff: 2Page Ref:18-23AACSB: Application of knowledge; Information technologyCASE: Analysis in terms of categorize43) Intranets:A) are based on mainframe technology.B) are multiple networks joined together.C) are typically used to communicate with the business's trusted vendors.D) use Internet technology for a private company network.Answer: DDiff: 2Page Ref:17AACSB: Information technologyCASE: Comprehension

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1044) The first step in the four-step model of business problem solving is:A) agreeing that a problem exists.B) identifying the problem.C) outlining the problem's causes.D) assigning the problem to a problem solver.Answer: BDiff: 1Page Ref:21AACSB: Application of knowledgeCASE: Comprehension45) Inadequate database capacity is an example of the ________ dimension of businessproblems.A) technologyB) organizationalC) peopleD) managementAnswer: ADiff: 2Page Ref:22AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize46) Legal and regulatory compliance is an example of the ________ dimension of businessproblems.A) managementB) organizationalC) peopleD) technologyAnswer: CDiff: 3Page Ref:22AACSB: Analytical thinkingCASE: Analysis in terms of categorize47) You are a new manager at a plumbing supply manufacturer where there is an unusually highnumber of returns for a new aerator for a high-end faucet in production. In viewing the problemyou determine that the primary cause is the improperly designed die cast for the aerator. Whichdimension of a business problem does this reflect?A) PeopleB) TechnologyC) ManagementD) OrganizationalAnswer: ADiff: 3Page Ref:22AACSB: Application of knowledge; Analytical thinkingCASE: Analysis in terms of assess; compare

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1148) Poor business processes is an example of the ________ dimension of business problems.A) managementB) organizationalC) peopleD) infrastructureAnswer: BDiff: 2Page Ref:22AACSB: Analytical thinkingCASE: Analysis in terms of categorize49) The owners of Speed-EZ, a new bike messenger service, are concerned about how they willmanage their messengers once they have left the office. This is a business problem that falls intothe:A) management dimension.B) people dimension.C) organizational dimension.D) technology dimension.Answer: BDiff: 3Page Ref:22AACSB: Analytical thinkingCASE: Analysis in terms of categorize50) Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is abusiness problem that falls into the:A) management dimension.B) people dimension.C) organizational dimension.D) technical dimension.Answer: CDiff: 3Page Ref:22AACSB: Analytical thinkingCASE: Analysis in terms of categorize51) In choosing the best solution for a business problem, one of the most importantconsiderations is:A) change management.B) existing resources and skills.C) employee training.D) outcome measurement.Answer: BDiff: 3Page Ref:22AACSB: Reflective thinkingCASE: Analysis in terms of assess

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1252) The final step in the four-step model of business problem solving is:A) outcome.B) implementation.C) change management.D) feedback.Answer: BDiff: 1Page Ref:23AACSB: Application of knowledgeCASE: Comprehension53) Which of the following wouldnotbe considered part of the implementation phase ofproblem solving?A) Change managementB) Purchasing hardware for an information systems solutionC) Training an employee on new systems softwareD) Evaluating a selection of software packages for implementing a new business processAnswer: DDiff: 2Page Ref:23AACSB: Analytical thinkingCASE: Analysis in terms of categorize54) The failure of NASA's initial solution to preventing the space shuttle shedding foamillustrates:A) the importance of training employees on new business processes.B) the need to prepare for measuring outcomes of a business solution.C) the continuous nature of problem solving.D) the need to quickly adapt to new technological innovations.Answer: CDiff: 2Page Ref:23AACSB: Analytical thinkingCASE: Analysis in terms of compare55) One of the most frequent errors in problem solving is:A) rushing to judgment.B) not being aware of personal limitations.C) being too doubtful.D) following a rote pattern of decision making.Answer: ADiff: 2Page Ref:24AACSB: Application of knowledgeCASE: Comprehension

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1356) A major criterion in deciding the most important perspectives of a business problem is:A) implementation.B) change management.C) usefulness.D) organizational needs.Answer: CDiff: 3Page Ref:24AACSB: Application of knowledgeCASE: Comprehension57) Which of the following is an example of a business using information systems to create newproducts and services?A) Apple's creation of the iPodB) JC Penney's information system that allows its contract manufacturers to see what garmentshave been sold and need to be replacedC) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota tobecome the world's largest auto makerD) Verizon's Web-based digital dashboard providing real-time company information formanagersAnswer: ADiff: 2Page Ref:11AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize58) An example of a business using information systems to attain competitive advantage is:A) Apple's creation of the iPod.B) JC Penney's information system that allows its contract manufacturers to see what garmentshave been sold and need to be replaced.C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota tobecome the world's largest auto maker.D) Verizon's Web-based digital dashboard providing real-time company information formanagers.Answer: CDiff: 3Page Ref:12AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize

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1459) An example of a business using information systems for customer and supplier intimacy is:A) Apple's creation of the iPod.B) JC Penney's information system that allows its contract manufacturers to see what garmentshave been sold and need to be replaced.C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota tobecome the world's largest auto maker.D) Verizon's Web-based digital dashboard providing real-time company information formanagers.Answer: BDiff: 2Page Ref:12AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize60) An information skill important for an accounting major would be:A) an understanding of online transaction and reporting systems.B) an understanding of product management enterprise systems.C) an understanding of supplier management enterprise systems.D) an understanding of enterprise systems that enhance leadership.Answer: ADiff: 3Page Ref:25AACSB: Information technologyCASE: Comprehension61) An information skill important for a marketing major would be:A) an understanding of online transaction and reporting systems.B) an understanding of product management enterprise systems.C) an understanding of supplier management enterprise systems.D) an understanding of enterprise systems that enhance leadership.Answer: BDiff: 2Page Ref:26AACSB: Information technologyCASE: Comprehension62) Consider an information system in a moving company that analyzes travel patterns anddecides which routes are the most efficient for every van. The need for employees to followprocedures to update this system with arrival and departure times would be considered a(n)________ element of the system.A) organizationalB) managerialC) peopleD) technologyAnswer: ADiff: 2Page Ref:16AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize

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1563) What is the estimated growth rate for information systems managers' jobs through 2020?A) 15%B)-1%C) 45%D) 5%Answer: DDiff: 2Page Ref:26AACSB: Information technologyCASE: Comprehension64) To make sure they stock clothes that their customers will purchase, a department storeimplements a new application that analyzes spending levels at their stores and cross referencesthis data to popular clothing styles. This is an example of using information systems to support abusiness strategy of:A) new products, services, and business models.B) survival.C) customer and supplier intimacy.D) improved decision making.Answer: CDiff: 2Page Ref:11-12AACSB: Analytical thinking; Information technologyCASE: Analysis in terms of categorize65) Financial managers work directly with ________ to ensure investments in informationsystems help achieve corporate goals.A) operations managersB) senior managersC) marketing managersD) accounting managersAnswer: BDiff: 2Page Ref:25AACSB: Information technologyCASE: Comprehension66) Operations management, as a discipline, is directly relevant to all of the followingoccupational categoriesexcept:A) industrial production managers.B) operations analysts.C) administrative service managers.D) financial managers.Answer: DDiff: 2Page Ref:26AACSB: Application of knowledgeCASE: Comprehension

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