Skip to content
Exam Guides

Test Bank for Essentials of MIS, 12th Edition

Sharpen your test-taking skills with Test Bank for Essentials of MIS, 12th Edition, designed for maximum learning.

Preview 31 of 342 pages

See the first 31 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    1 Essentials of MIS, 12e (Laudon) Chapter 1 Business Information Systems in Your Career 1) As discussed in the chapter opening case, the San Francisco Giants are taking advantage of wireless technology to do which of the following? A) Improve decision making B) Achieve operational excellence C) Implement dynamic ticket pricing D) Perform data analysis E) Enhance fan experience Answer: E Difficulty: 3: Challenging AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 2) Journalist Thomas Friedman's description of the world as "flat" refers 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. E) the increased use of global currencies. Answer: A Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 3) The six important business objectives of information system investment include all of the following except : A) competitive advantage. B) employee morale. C) improved decision making. D) survival. E) new products. Answer: B Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today?

  2. Page 2
  3. Page 3
    Read page 3 as text

    2 4) A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A) Survival B) Improved decision making C) Competitive advantage D) Operational excellence E) Customer intimacy Answer: A Difficulty: 2: Moderate AACSB: Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 5) Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following? A) New business models B) Operational efficiency C) Customer intimacy D) Competitive advantage E) Survival Answer: B Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.1: Why are information systems so essential for running and managing a business today? 6) 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) competitive advantage. D) supplier intimacy. E) a new product. Answer: B Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 7) Which business objective were competitors seeking when they rushed to provide ATMs as well after Citibank introduced the first ATMs in New York? A) Improved efficiency B) Customer and supplier intimacy C) Survival D) Competitive advantage E) Improved decision making Answer: C Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today?

  4. Page 4
    Read page 4 as text

    3 8) All of the following describe the effects of globalization except : 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. E) replication of business models in multiple countries. Answer: D Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.1: Why are information systems so essential for running and managing a business today? 9) A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives? A) Customer intimacy B) Operational excellence C) New products. D) Improved decision making E) Survival Answer: E Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 10) Which of the following is an example of a business using information systems to create new products and services? A) Apple's creation of the iPad B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced C) The Mandarin Oriental's use of computers to keep track of guests' preferences D) Verizon's web-based digital dashboard providing real-time company information for managers E) Walmart's Retail Link's system Answer: A Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today?

  5. Page 5
    Read page 5 as text

    4 11) An example of a business using information systems for supplier intimacy is: A) Apple's creation of the iPad. B) JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C) Citibank's ATM system. D) Verizon's web-based digital dashboard providing real-time company information for managers. E) the Mandarin Oriental's use of computers to keep track of guests' preferences. Answer: B Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 12) To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A) New products B) Survival C) Customer intimacy D) Improved decision making E) Operational excellence Answer: C Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 13) Telepresence is an example of which of the following? A) Business intelligence B) Social business C) IoT D) Mobile digital platform E) Virtual meeting Answer: E Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today?

  6. Page 6
    Read page 6 as text

    5 14) The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as: A) IoT. B) big data. C) the mobile digital platform. D) cloud computing. E) business intelligence. Answer: B Difficulty: 1: Easy AACSB: Analytical Thinking; Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today? 15) In 2015, what percent of Internet users will access the web through mobile devices? A) Less than 15 percent B) Around 25 percent C) 50 percent D) More than 60 percent E) More than 75 percent Answer: D Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 16) What percent of U.S. businesses have some form of remote work program? A) 15 percent B) 25 percent C) 35 percent D) 55 percent E) 75 percent Answer: D Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 17) All of the following are new technology-related trends in MIS except : A) cloud computing. B) big data. C) IoT. D) the mobile digital platform. E) co-creation of business value. Answer: E Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today?

  7. Page 7
    Read page 7 as text

    6 18) Which of the following statements is not true? A) In 2015, American businesses will invest nearly $600 billion in information systems hardware, software, and telecommunications equipment. B) In 2015, American businesses will spend $400 billion on business and management consulting and information technology services, C) In 2015, about 25 percent of all capital investment in the United States will be for information systems hardware, software, and telecommunications equipment. D) Expenditures in the United States for information systems are growing at a faster rate than the U.S. economy as a whole. E) Worldwide expenditures for information were around $1 trillion. Answer: E Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 19) Approximately how many adult Americans are online? A) 118 million B) 170 million C) 205 million D) 220 million E) 227 million Answer: E Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 20) What percent of the Fortune 500 companies uses Twitter to communicate with their customers? A) 20 percent B) 40 percent C) 50 percent D) 60 percent E) 80 percent Answer: E Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 21) Purchase of information systems hardware, software, and telecommunications equipment will constitute more than half of all capital investment in the United States in 2015. Answer: FALSE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.1: Why are information systems so essential for running and managing a business today?

  8. Page 8
    Read page 8 as text

    7 22) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 23) Federal law requires many businesses to keep email messages for five years. Answer: TRUE Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.1: Why are information systems so essential for running and managing a business today? 24) Define operational excellence. How can information systems help achieve it? Answer: Operational excellence is the achievement of higher levels of productivity and efficiency. Information systems can help achieve operational excellence by improving communications to suppliers and optimizing the supply chain. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, and streamline distribution. Difficulty: 2: Moderate AACSB: Information Technology; Written and Oral Communication; Reflective Thinking LO: 1.1: Why are information systems so essential for running and managing a business today? 25) You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy? Answer: You could create a website that allows customers to customize cars, communicate with support personnel and other car owners. You could create an automated email service reminding car owners to take their car in for periodic check-ups. You could have an information system that tracks customer preferences in local areas, so you can provide cars that reflect local customer needs and desires. Difficulty: 2: Moderate AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1.1: Why are information systems so essential for running and managing a business today?

  9. Page 9
    Read page 9 as text

    8 26) Which of the following is the best definition of an information system? A) A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization B) Computers, keyboards, printers, and telecommunications devices C) A set of detailed programmed instructions that transform raw data into information D) Physical devices and software that can be connected to share voice, data, images, sound, and video E) A global network that uses universal standards Answer: A Difficulty: 2: Moderate AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 27) The three activities in an information system that produce the information organizations use to control operations are: A) information, research, and analysis. B) input, output, and feedback. C) input, processing, and output. D) data analysis, processing, and feedback. E) information, data, and processing. Answer: C Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 28) The average number of baseball tickets sold at a particular price is an example of: A) input. B) raw data. C) meaningful information. D) output. E) feedback. Answer: C Difficulty: 1: Easy AACSB: Analytical Thinking LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  10. Page 10
    Read page 10 as text

    9 29) 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 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 it will be used. E) is a stream of raw facts representing events occurring in organizations or the physical environment. Answer: D Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 30) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. E) inputting. Answer: B Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 31) An example of raw data from an automobile manufacturer would be: A) an average of 130 Subarus sold daily in New York in 2015. B) 1,300 Subaru Outbacks sold during the first quarter 2015 in New York. C) 1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000. D) annual sales of Subaru Outbacks increased 4.5 percent. E) an average sale price of $26,000 for all Subaru Outbacks sold during January 2015 in Mount Kisco, New York. Answer: C Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  11. Page 11
    Read page 11 as text

    10 32) Which of the following fields 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) Information systems literacy B) Information systems architecture C) Management information systems D) Information technology infrastructure E) Computer information systems Answer: C Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 33) All of the following are examples of environmental actors in an information system except : A) customers. B) stockholders. C) feedback. D) competitors. E) regulatory agencies. Answer: C Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 34) In a hierarchical organization, the upper levels consist of: A) managerial, professional and knowledge workers. B) managerial, professional, and technical workers. C) professional and operational workers. D) managerial, professional, and operational workers. E) knowledge, technical and operational workers. Answer: B Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  12. Page 12
    Read page 12 as text

    11 35) 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) business process. B) environment. C) atmosphere. D) values. E) culture. Answer: E Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 36) All of the following can be considered managerial responsibilities except : 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. E) setting strategy for responding to business challenges in the environment. Answer: C Difficulty: 2: Moderate AACSB: Analytical Thinking LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 37) 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. E) the universally accepted standards for storing data. Answer: C Difficulty: 2: Moderate AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  13. Page 13
    Read page 13 as text

    12 38) 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. E) provide the platform on which a firm builds its information systems. Answer: D Difficulty: 2: Moderate AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 39) As described in the chapter case, which of the following constitutes an organizational element in the UPS tracking system? 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 E) Routing software that creates the most efficient delivery route for each driver Answer: A Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 40) As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system? A) The web-based Post Sales Order Management System B) The ability to provide package status reports to customers C) The decision to use automation D) The implementation of in-house package tracking software E) The ability to embed UPS functions in external sites Answer: C Difficulty: 3: Challenging AACSB: Analytical Thinking; Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  14. Page 14
    Read page 14 as text

    13 41) Consider an information system in a moving company that analyzes travel patterns and decides which routes are the most efficient for every van. The need for employees to follow procedures to update this system with arrival and departure times would be considered a(n) ________ dimension of the system. A) organizational B) managerial C) people D) technology E) cultural Answer: A Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 42) The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems? A) Culture is one element that can be radically changed, not always for the better, by new information systems. B) Culture affects how information system solutions are implemented and used. C) Culture is a cauldron of employee perspectives and conflicts, which can be used to improve business processes. D) Culture is the driving force behind decision making and innovation. E) Culture is the basis for organizational politics. Answer: B Difficulty: 3: Challenging AACSB: Analytical Thinking; Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 43) 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 E) Verizon Answer: C Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  15. Page 15
    Read page 15 as text

    14 44) ________ consists of detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. A) Software B) Programming C) Enterprise applications D) Business intelligence E) Data management technology Answer: A Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 45) ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format. A) FTP B) Email C) The World Wide Web D) HTML E) An extranet Answer: C Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 46) Information systems consist of all the hardware and software that a firm needs to use in order to achieve its business objectives. Answer: FALSE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 47) An extranet is a private intranet extended to authorized users outside the organization. Answer: TRUE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  16. Page 16
    Read page 16 as text

    15 48) Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach. Answer: FALSE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 49) People, organizations, and information technology are all dimensions of information systems. Answer: TRUE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 50) In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company. Answer: TRUE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 51) Developing a new product, fulfilling an order, and hiring a new employee are all examples of business processes. Answer: TRUE Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 52) Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: FALSE Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 53) Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. Answer: TRUE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  17. Page 17
    Read page 17 as text

    16 54) A network requires at least three computers and a shared resource. Answer: FALSE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 55) A firm's IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 56) According to the chapter case, UPS's use of web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own websites, was an information systems solution used to achieve customer intimacy. Answer: TRUE Difficulty: 3: Challenging AACSB: Analytical Thinking; Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 57) Data is information that has been shaped into a form that is meaningful to human beings. Answer: FALSE Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 58) Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage. Answer: TRUE Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 59) Intranets are private corporate networks extended to authorized users outside the organization. Answer: FALSE Difficulty: 1: Easy AACSB: Information Technology LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  18. Page 18
    Read page 18 as text

    17 60) What important managerial function is impaired by not having access to timely and accurate information? What is the effect of this lack of data? Answer: The managerial function is decision making. Without access to timely and accurate information, business managers rely on forecasts, best guesses, and luck. The result is over- or under-production of goods and services, misallocation of resources, and poor response times. The potential poor outcomes can raise costs, and the company can lose customers. Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 61) Describe the people dimension of information systems and give an example. Is this dimension as vital as the technology dimension when considering a technology-based solution to a business problem? Answer: The people dimension describes all of the factors related to employees, from operational personnel to senior management. Essentially, an organization and its information systems are worthless without skilled employees. For example, a people dimension of implementing a new information system is ensuring users are properly trained to use the system. The people dimension is just as vital as the other dimensions - the success of an information system depends on the people implementing and operating it. In addition, as a resource, employees are expensive to hire, manage, and train, whereas technology and hardware can be relatively inexpensive. Difficulty: 2: Moderate AACSB: Reflective Thinking; Information Technology; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 62) 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 would be: average number of tickets sold to seniors on certain days of the week. Difficulty: 1: Easy AACSB: Application of Knowledge; Information Technology; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  19. Page 19
    Read page 19 as text

    18 63) 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 for accomplishing work. Hiring a new employee, customer intake, and filing medical records are examples of business processes at a hospital. Difficulty: 2: Moderate AACSB: Reflective Thinking; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 64) What is the difference between information technology and 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. Difficulty: 2: Moderate AACSB: Application of Knowledge; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 65) 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. Difficulty: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components? 66) 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 alone 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. Difficulty: 3: Challenging AACSB: Analytical Thinking; Written and Oral Communication LO: 1.2: What exactly is an information system? How does it work? What are its people, organizational, and technology components?

  20. Page 20
    Read page 20 as text

    19 67) A database into which employees manually input customer names and addresses is riddled with errors and you have been charged with rectifying the situation. In considering the organizational dimensions of this problem, you should consider: A) the skill levels of the employees inputting the data. B) the training given to the employees inputting the data. C) the business processes in place governing the manual input of the data. D) the types of automatic error checking provided by the input software. E) the storage capacity of the database. Answer: C Difficulty: 2: Moderate AACSB: Application of Knowledge; Information Technology LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 68) The first step in the model of business problem solving discussed in the chapter is: A) interviewing the people involved in the problem. B) identifying the problem. C) outlining the problem's causes. D) assigning the problem to a problem solver. E) evaluating possible solutions to the problem. Answer: B Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 69) Inadequate database capacity is an example of the ________ dimension of business problems. A) technology B) organizational C) people D) management E) cultural Answer: A Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  21. Page 21
    Read page 21 as text

    20 70) Legal compliance is an example of the ________ dimension of business problems. A) management B) organizational C) people D) technology E) cultural Answer: C Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 71) You are a new manager at a plumbing supply manufacturer where there are an unusually high number of returns for a new aerator used in the production of high-end faucets. In examining the problem you determine that the primary cause is the improperly designed die cast for the aerator. Which dimension of a business problem does this reflect? A) People B) Technology C) Management D) Organizational E) Cultural Answer: A Difficulty: 3: Challenging AACSB: Application of Knowledge; Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 72) Poor business processes are an example of the ________ dimension of business problems. A) management B) organizational C) people D) infrastructure E) cultural Answer: B Difficulty: 2: Moderate AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  22. Page 22
    Read page 22 as text

    21 73) The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once the messengers have left the office. This is a business problem that falls into the: A) management dimension. B) people dimension. C) organizational dimension. D) technology dimension. E) cultural dimension. Answer: B Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 74) Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the: A) management dimension. B) people dimension. C) organizational dimension. D) technical dimension. E) cultural dimension. Answer: C Difficulty: 3: Challenging AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 75) In choosing the best solution for a business problem, all of the following are important considerations except : A) the cost of the solution. B) the feasibility of the solution given existing resources and skills. C) the length of time to implement the solution. D) the attitudes of employees. E) the ability to forget about the problem once it has been solved. Answer: E Difficulty: 3: Challenging AACSB: Reflective Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  23. Page 23
    Read page 23 as text

    22 76) The final step in the four-step model of business problem solving is: A) outcome. B) implementation. C) change management. D) feedback. E) employee re-training. Answer: B Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 77) Which of the following would not be considered part of the implementation phase of problem solving? A) Change management B) Purchasing hardware for an information systems solution C) Training an employee on new systems software D) Evaluating a selection of software packages for implementing a new business process E) Determining the attitude of employees about the solution. Answer: D Difficulty: 2: Moderate AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 78) The failure of NASA's initial solution to preventing the space shuttle shedding foam illustrates: 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. E) the importance of organizational change in problem solving. Answer: C Difficulty: 2: Moderate AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  24. Page 24
    Read page 24 as text

    23 79) Perhaps the most frequent error in problem solving is: A) rushing to judgment about the nature of a problem. B) not being aware of personal limitations. C) being too doubtful. D) following a rote pattern of decision making. E) failing to consider all dimensions of a problem. Answer: A Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 80) Assume you work for a package delivery service in a major metropolitan area and that the business has been losing customers for several years. You have been asked to find a solution to this problem. What is the correct way to proceed? A) Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. B) Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution. C) Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. D) Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. E) Identify relevant information technologies, interview employees, choose a technology, and implement the technology. Answer: C Difficulty: 2: Moderate AACSB: Analytical Thinking; Application of Knowledge; Information Technology LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 81) Which are the three major dimensions of business problem solving? A) Organizational dimensions, people dimensions, and technology dimension B) Organizational dimensions, people dimensions, and environmental dimensions C) People dimensions, technology dimensions, and environmental dimensions D) Technology dimensions, organizational dimensions, and environmental dimensions E) Organizational dimensions, technology dimensions, and cultural dimensions Answer: A Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  25. Page 25
    Read page 25 as text

    24 82) Identifying a problem includes agreeing that a problem exists. Answer: TRUE Difficulty: 1: Easy AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 83) Political conflict is an example of the people dimension of business problems. Answer: FALSE Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 84) Encouraging employees to adapt to new business processes is an important factor in change management. Answer: TRUE Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 85) Describe the four steps taken in solving a business problem. Answer: The four steps are problem identification, solution design, choice of a solution, and implementation. In the problem identification step, relevant people in an organization must agree that a problem exists, what the problem is, what its causes are, and what can be done about the problem given the organization's resources. In the solution design step, as many solutions as possible should be determined. In the choice step, you choose the best solution from the list of options determined in the previous step. It is important to match a choice to existing resources, skills, and feasibility. In the last step, implementation, the solution is put in place. In information systems solutions, this may include purchasing hardware or software and testing it. Implementation also includes employee training, change management, and using a method to measure the outcome. Difficulty: 2: Moderate AACSB: Analytical Thinking; Written and Oral Communication LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  26. Page 26
    Read page 26 as text

    25 86) What are the three dimensions of business problems? Give an example of each. Answer: The three dimensions to business problems are: (1) Organizational: This may include outdated business processes, unsupportive culture and attitudes, political conflict, turbulent business environment and change, complexity of task, inadequate resources. (2) Technology: This may include insufficient or aging hardware, outdated software, inadequate data management, insufficient telecommunications capacity, incompatibility of old systems with new technology, and rapid technological change. (3) People: This may include lack of employee training, difficulties in evaluation performance, legal and regulatory compliance, work environment, lack of employee support and participation, indecisive management, or poor management. Difficulty: 2: Moderate AACSB: Analytical Thinking LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 87) The department chain you work for has had numerous complaints about slow customer service. Your colleague, a sales manager, informs you that this happened at a previous store she worked for, and it was cleared up by hiring more sales representatives. Should you take her advice? Why or why not? What techniques can you use in evaluating the problem? Answer: The advice should not be taken, as it is a rush to judgment, which could mean that the wrong solution is used, wasting time and resources. You should ask the colleague to employ critical thinking. Critical thinking is sustained suspension of judgment with an awareness of multiple perspectives and alternatives. It involves at least four elements: • Maintaining doubt and suspending judgment • Being aware of different perspectives • Testing alternatives and letting experience guide • Being aware of organizational and personal limitations Difficulty: 3: Challenging AACSB: Interpersonal Relations and Teamwork LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems?

  27. Page 27
    Read page 27 as text

    26 88) How does critical thinking relate to the problem-solving process? Answer: Simply following a rote pattern of decision making, or a model, does not guarantee a correct solution. The best protection against incorrect results is to engage in critical thinking throughout the problem-solving process. Perhaps the most frequent error in problem solving is to arrive prematurely at a judgment about the nature of the problem. By doubting all solutions at first and refusing to rush to a judgment, you create the necessary mental conditions to take a fresh, creative look at problems and you keep open the chance to make a creative contribution. Second, it is important to recognize that all interesting business problems have many dimensions and that the same problem can be viewed from different perspectives such as the technology perspective, the organization perspective, and the people perspective. The third element of critical thinking involves testing alternatives, or modeling solutions to problems, and letting experience be the guide. Not all contingencies can be known in advance and much can be learned through experience. Therefore, it is important to experiment, gather data and reassess the problem periodically. Difficulty: 3: Challenging AACSB: Application of Knowledge LO: 1.3: How will a four-step method for business problem solving help you solve information system-related problems? 89) Which of the following is an important skill for an accounting major? 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 E) An understanding of enterprise systems for customer relationship management Answer: A Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 90) Which of the following is an important skill for a marketing major? 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 E) An understanding of financial reporting systems Answer: B Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential?

  28. Page 28
    Read page 28 as text

    27 91) What is the estimated growth rate for information systems managers' jobs through 2020? A) -10% B) -1% C) 15% D) 5% E) 45% Answer: C Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 92) Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals. A) operations managers B) senior managers C) marketing managers D) accounting managers E) knowledge workers Answer: B Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 93) Which of the following statements is not true? A) The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work. B) Inflation in Indian wages for technology work is leading to a counter movement of some IT jobs back to the United States. C) The fear that offshore outsourcing will reduce demand for new information system hires in the United States is mitigated by the fact that reduced IT expenditures results in increased IT investments and the creation of domestic jobs. D) The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States. E) Management and organizational tasks required in systems development usually are not outsourced. Answer: D Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential?

  29. Page 29
    Read page 29 as text

    28 94) As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks. Answer: TRUE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 95) IT managerial jobs are outsourced easily because of the universal standards used by the Internet. Answer: FALSE Difficulty: 2: Moderate AACSB: Analytical Thinking; Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 96) An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing. Answer: TRUE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 97) Whereas marketing and financial careers have been transformed by the growth in information systems, thus far the job of management has remained relatively unaffected. Answer: FALSE Difficulty: 2: Moderate AACSB: Information Technology LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 98) There are two types of outsourcing: offshore outsourcing and foreign outsourcing. Answer: FALSE Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential?

  30. Page 30
    Read page 30 as text

    29 99) Describe at least three of the general information skills essential for all business careers. Answer: General information skills essential for all business careers include (1) understanding how information systems and technologies can help firms achieve business objectives such as operational efficiency, developing new products and services, and maintaining customer intimacy. Also essential is (2) understanding the central role of databases in a modern firm as well as (3) developing skills in the analysis of information in order to help firms understand and make sense out of their environments. (4) All business majors need to be able to work with specialists and system designers who build and implement information systems. This is necessary to ensure that the systems that are built actually service business purposes and provide the information and understanding required by managers and employees. In addition, students need to (5) understand how information systems work in relation to social and community issues, including ethical issues and how systems must meet requirements for reporting to government regulators and the public. Difficulty: 3: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential? 100) What kinds of jobs are not likely to be outsourced and why? Answer: Jobs involved with the creation of innovative new products, services, and systems are rarely outsourced either domestically or globally. The advantage of low-wage countries is their low wages, not their keen sense of new products, services, and technologies for the United States market. Software design and new programming efforts are also rarely outsourced because of their strategic importance to firms and because domestic software designers are much closer to the American marketplace and customer base. Difficulty: 3: Challenging AACSB: Application of Knowledge; Written and Oral Communication LO: 1.4: How will information systems affect business careers, and what information systems skills and knowledge are essential?

  31. Page 31
    Read page 31 as text

    1 Essentials of MIS, 12e (Laudon) Chapter 2 Global E-Business and Collaboration 1) Suppliers, customers, employees, products and services, and ________ are the five basic components with which businesses must deal. A) the environment B) manufacturing and production C) sales and marketing D) invoices and payments E) technology Answer: D Difficulty: 2: Moderate AACSB: Application of Knowledge LO: 2.1: What major features of a business are important for understanding the role of information systems? 2) Producing a bill of materials is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing E) technology Answer: C Difficulty: 1: Easy AACSB: Application of Knowledge LO: 2.1: What major features of a business are important for understanding the role of information systems? 3) Identifying potential customers for the businesses' products or services is an activity associated with the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) technology E) sales and marketing Answer: E Difficulty: 1: Easy AACSB: Application of Knowledge LO: 2.1: What major features of a business are important for understanding the role of information systems?

311 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Information Technology study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.