Deck 1: Information Systems in Global Business Today

Question 1

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)Operational excellence
B)Improved decision making
C)Competitive advantage
D)Customer intimacy
E)Survival

Answer 1

E

Question 2

A firm that must invest in new information systems capabilities in order to comply with federal legislation is investing to achieve which business objective?

A)Customer intimacy
B)Operational excellence
C)Survival
D)Creation of new products
E)Improved decision making

Answer 2

C

Question 3

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 3

E

Question 4

In 2017,what percent of the U.S.economy resulted from foreign trade?

A)10 percent
B)25 percent
C)30 percent
D)50 percent
E)66 percent

Question 5

The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of which of the following?

A)Improved flexibility
B)Improved decision making
C)Improved efficiency
D)Customer intimacy
E)Operational excellence

Question 6

Which of the following is not one of the current changes taking place in information systems technology?

A)Growing business use of big data
B)Growth in cloud computing
C)Growth in the PC platform
D)Emerging mobile digital platform
E)Increased usage of data generated by the Internet of Things

Question 7

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.

Question 8

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

A)In digital firms,time shifting and space shifting are the norm.
B)Today,most firms are fully digital.
C)Digital firms offer extraordinary opportunities for flexible global organization and management.
D)Digital firms sense and respond to their environments more rapidly than traditional firms.
E)Digital firms have more flexibility to survive in turbulent times.

Question 9

Which of the following is the key business objective behind the technologies implemented by PCL Construction,as discussed in the chapter-opening case?

A)Higher customer satisfaction levels
B)Survival
C)Improved employee morale
D)Reduced delays in document management
E)Reduced cost of supplies

Question 10

Which of the following is not one of the IT innovations changing the world of business today?

A)IoT
B)Big data
C)The mobile digital platform
D)Cloud computing
E)Business intelligence

Question 11

Verizon's use of a web-based digital dashboard to provide managers with precise real-time information enabled it to improve which of the following?

A)Compliance with regulations
B)Managerial decision making
C)Efficiency in creation of new products
D)Employee morale
E)Intimacy with its suppliers

Question 12

Approximately how much revenue was generated by e-commerce in 2017?

A)About $1 trillion
B)About $2 trillion
C)About $229 billion
D)About $700 billion
E)About $180 billion

Question 13

Which of the following 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 and 3
E)1,2,and 3

Question 14

How much did American businesses spend on information systems hardware,software,and telecommunications equipment in 2017?

A)About $100 million
B)About $1 billion
C)About $100 billion
D)About $1 trillion
E)About $10 trillion

Question 15

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)Customer intimacy
B)Survival
C)Operational excellence
D)Improved decision making
E)New products and services

Question 16

Which of the following is not one of the six strategic business objectives of information systems?

A)New products and services
B)Improved decision making
C)Improved community relations
D)Competitive advantage
E)Survival

Question 17

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

A)New products and services
B)Operational efficiency
C)Survival
D)Customer intimacy
E)Competitive advantage

Question 18

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.

Question 19

The Toxic Substances Control Act requires firms to retain records of employee exposure to toxic chemicals:

A)for 10 years.
B)for 5 years.
C)for 30 years.
D)for 1 year.
E)forever.

Question 20

Which of the following is an example of a business using information systems to improve customer and supplier intimacy?

A)Walmart's RetailLink system
B)The Mandarin Oriental's use of computers to keep track of guest preferences
C)Verizon's use of a web-based digital dashboard to provide real-time company information for managers
D)Apple's creation of the iPad
E)PCL Construction's use of cloud computing

Question 21

You are starting a small bike messenger company.Given your type of services (hand-delivering packages within a small geographical area),could your firm be a digital firm? If so,what would make this a digital firm?

Question 22

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)data,information,and analysis.
D)data analysis,processing,and feedback.
E)input,processing,and output.

Question 23

What are the main changes taking place in organizational use of information systems? Which of these do you think is having the greatest impact on businesses?

Question 24

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)business process.
E)mission.

Question 25

Creating a marketing plan is not an example of a business process.

Question 26

Which of the following statements is not true?

A)Many Fortune 500 U.S.firms derive more than half their revenues from foreign operations.
B)Most PCs manufactured in China use microprocessor chips manufactured in Korea.
C)Eighty percent of the toys sold in the United States are manufactured in China.
D)In 2017,60 percent of Apple's revenue was generated outside of the United States.
E)Technology companies are particularly dependent on offshore revenue.

Question 27

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

Question 28

A business model describes how a company produces,delivers,and sells a product or service to create wealth.

Question 29

Approximately how many Americans access the Internet using a smartphone or tablet?

A)118 million
B)172 million
C)194 million
D)230 million
E)258 million

Question 30

Which of the following statements is not true?

A)In 2017,American businesses invested about $1 trillion in information systems hardware,software,and telecommunications equipment.
B)In 2017,American businesses spent $500 billion on business and management consulting and information technology services.
C)Private business investment in information technology has grown from 21 percent of total invested capital in 1999 to 33 percent of all invested capital in 2017.
D)Most of the business value of IT investment derives from organizational,management,and cultural changes inside firms.
E)Much of the money spent by American businesses on business and management consulting involves redesigning firms' business operations to take advantage of new technologies.

Question 31

Data collected at checkout counters in a grocery store is an example of:

A)output.
B)processing.
C)feedback.
D)input.
E)information systems.

Question 32

Converting raw data into a more meaningful form is called:

A)capturing.
B)processing.
C)organizing.
D)feedback.
E)analysis.

Question 33

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

A)An average of 120 Subarus sold daily in New York in 2017
B)1,200 Subaru Outbacks sold during the first quarter 2017 in New York
C)One Subaru Outback sold July 27,20176 in Mohegan Lake,New York for $24,000
D)Annual sales of Subaru Outbacks increased 5.3 percent
E)An average sale price of $25,500 for all Subaru Outbacks sold during July 2017 in Mohegan Lake,New York

Question 34

The total number of food items with storage temperature problems is an example of which of the following?

A)Input
B)Raw data
C)Meaningful information
D)Feedback
E)Processing

Question 35

Private business investment in information technology constituted 55 percent of all invested capital in 2017.

Question 36

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

Question 37

In a hierarchical organization,the upper level consists of:

A)scientists.
B)senior management.
C)professional employees.
D)data workers.
E)knowledge workers.

Question 38

Output:

A)is feedback that has been processed to create meaningful information that can be used by others.
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)is the result of processing raw input data into meaningful information.
E)converts raw input into a meaningful form.

Question 39

Internet advertising is growing at approximately 5 percent a year.

Question 40

How many service jobs move offshore to lower-wage countries in a typical year?

A)3,000
B)30,000
C)300,000
D)3 million
E)30 million

Question 41

A corporation that funds an employee training program to build computer skills could be seen as investing in which main category of complementary assets?

A)Managerial
B)Governmental
C)Social
D)Organizational
E)Auxiliary

Question 42

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

A)Middle management
B)Service workers
C)Production management
D)Operational management
E)Knowledge workers

Question 43

Which of the following best describes the primary reason for implementing a new information system,from a business perspective?

A)The system enables the firm to create new products and services.
B)The system will create new value for the firm,beyond its costs.
C)The system will automate key business processes.
D)The system is in use by our primary competitors.
E)The system integrates well with the Web.

Question 44

Which of the following statements best describes organizational culture?

A)It encompasses the sum of beliefs and assumptions by all members.
B)It enables the organization to transcend the different levels and specialties of its employees.
C)It reflects the senior management's perspective on the organization and goals.
D)It allows a company to achieve greater operational efficiency.
E)It is a fundamental set of assumptions,values,and ways of doing things that has been accepted by most members of the organization.

Question 45

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

Question 46

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

A)Technology and service firms in adjacent markets
B)Training programs
C)Distributed decision-making rights
D)Incentives for management innovation
E)A strong IS development team

Question 47

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
E)Middle management

Question 48

Which of the following would not be a complementary asset for a solar panel manufacturer?

A)International solar equipment certification standards
B)Government funding for green technology
C)Centralized hierarchical decision making
D)Innovation-driven management team
E)Subsidies for adoption of solar energy

Question 49

All of the following are examples of environmental actors in an information system except:

A)competitors.
B)regulatory agencies.
C)customers.
D)suppliers.
E)sales force.

Question 50

Which of the following roles in a firm would be least affected by using mobile devices to access firm information systems?

A)Senior executives
B)Sales executives
C)Production workers
D)Operational managers
E)Knowledge workers

Question 51

Maintaining the organization's financial records is a central purpose of which main business function?

A)Manufacturing and accounting
B)Finance and accounting
C)Sales and manufacturing
D)Finance and sales
E)Human resources

Question 52

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

A)Taking inventory
B)Providing package status reports to customers
C)Using information to creating plans to deal with competitors
D)In-house package tracking software
E)Ability to embed UPS functions in external sites

Question 53

The three principal levels within a business organization hierarchy are:

A)senior management,operational management,and service workers.
B)senior management,middle management,and operational management.
C)senior management,operational management,and information systems.
D)senior management,middle management,and service workers.
E)senior management,data workers,and service workers.

Question 54

Networking and telecommunications technologies,along with computer hardware,software,data management technology,and the people required to run and manage them,constitute an organization's:

A)data management environment.
B)networked environment.
C)information technology (IT)infrastructure.
D)information system.
E)culture.

Question 55

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

A)Sales by region report
B)Sales for stores in a region
C)Product ID,and price
D)Year to date sales of products
E)Marketing costs report for each product

Question 56

In ________,raw data is systematically acquired and transformed during various stages that add value to that information.

A)an information value chain
B)the firm value chain
C)information processing
D)the feedback process
E)the dissemination process

Question 57

Data management technology consists of which of the following?

A)Physical hardware and media used by an organization for storing data
B)Detailed,preprogrammed instructions that control and coordinate the computer hardware components in an information system
C)Two or more computers to share data or resources
D)Hardware and software used to transfer data
E)Software governing the organization of data on physical storage media

Question 58

Personnel 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
E)Service workers

Question 59

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

A)The specification of procedures for identifying packages with sender and recipient information
B)Monitoring service levels
C)Promoting the company strategy of low-cost,superior service
D)The use of handheld computers and networks for managing package delivery
E)A web-based Post Sales Order Management System

Question 60

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

A)Choosing the appropriate business model
B)A collaborative work environment
C)Laws and regulations
D)The Internet and telecommunications infrastructure
E)Strong senior management

Question 61

You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems.

Question 62

Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.

Question 63

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

Question 64

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

A)HTML
B)The World Wide Web
C)E-mail
D)An extranet
E)FTP

Question 65

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

Question 66

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

A)An intranet
B)The World Wide Web
C)The Internet
D)An extranet
E)FTP

Question 67

Information systems literacy focuses primarily on knowledge of information technology.

Question 68

UPS's use of web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own website is an information systems solution used to achieve customer intimacy.

Question 69

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

Question 70

A firm that invests in a strong IS development team is making an investment in organizational complementary assets.

Question 71

All business processes are formally documented by an organization.

Question 72

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

A)Information systems literacy
B)Information systems architecture
C)Business processes
D)Information technology infrastructure
E)Management information systems

Question 73

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

Question 74

Intranets link different systems and networks within a firm.

Question 75

There is little variation in returns on IT investment across firms.

Question 76

Data is information that has been shaped into a form that is meaningful to human beings.

Question 77

Laws and regulations creating fair,stable market environments are examples of complementary social assets required to optimize returns from IT investments.

Question 78

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

A)Sociology
B)Operations research
C)Economics
D)Computer science
E)Management information systems

Question 79

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

Question 80

Computers and programs are the only things required to produce the information an organization needs.