Deck 14: Understanding Information and E-Business

Question 1

Pure Training, Inc.
Pure Training, Inc., is a company that helps people start their own businesses.As part of the training it provides, the company covers many different aspects of entrepreneurship.One principle its trainers focus on is the difference between data and information.They also stress the importance and utility of a management information system.The trainers provide their clients with sufficient market research and statistics to understand trends in various areas.Pure Training prides itself on helping entrepreneurs launch and maintain successful businesses.
Refer to Pure Training, Inc.What would Pure Training say is the difference between data and information?

A) Information is data in a form that is useful for a specific purpose.
B) Data is qualitative whereas information is quantitative.
C) Data is information in a form that is useful for a specific purpose.
D) Information has nothing to do with data.
E) Data is in numerical form whereas information is in a verbal form.

Answer 1

A

Question 2

What are the two principal sources of data for a businessperson? From which source would you expect the data to be more accurate? More expensive? More easily obtained?

Answer 2

Answer not provided.

Question 3

Would you expect the information needs of top managers to differ from those of middle- and lower-level managers? Explain your answer.

Answer 3

Answer not provided.

Question 4

Compare information and data.Why might a manager prefer information to data?

Question 5

A number of business software applications were described in this chapter.Choose two of these applications and describe why you feel they would be useful for a manager operating a business.

Question 6

Describe the ways the Internet can reduce the cost associated with recruiting and training employees while at the same time improve the quality of employees that the firm employs.

Question 7

Describe the internal and external forces that affect e-business.

Question 8

What special resources does a business need to do e-business?

Question 9

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process.

Question 10

What is the difference between the World Wide Web and the Internet?

Question 11

Describe the three primary models of e-business.

Question 12

Suppose you must prepare a presentation for the board of directors.Also, assume your report will contain both written material and visual displays.How might a computer change the way you will develop your presentation, compared with what you would do if you didn't have a computer?

Question 13

Pure Training, Inc.
Pure Training, Inc., is a company that helps people start their own businesses.As part of the training it provides, the company covers many different aspects of entrepreneurship.One principle its trainers focus on is the difference between data and information.They also stress the importance and utility of a management information system.The trainers provide their clients with sufficient market research and statistics to understand trends in various areas.Pure Training prides itself on helping entrepreneurs launch and maintain successful businesses.
Refer to Pure Training, Inc.A Pure Training employee indicated that to provide information, MIS must perform the following functions.Based on what you have learned in this class, which of these functions would you say is incorrect?

A) collect data
B) present information to users
C) store the data
D) update the data
E) process information into data

Question 14

How does the Internet help employees communicate and assist a firm's sales force?

Question 15

How can computer technology help executives and employees make smart decisions?

Question 16

How does the use of statistics help turn data into information?

Question 17

What opportunities does e-business provide for today's business managers?

Question 18

Describe each of the five functions of a management information system.

Question 19

How might the information needs of a marketing manager differ from those of an operations manager?

Question 20

Pure Training, Inc.
Pure Training, Inc., is a company that helps people start their own businesses.As part of the training it provides, the company covers many different aspects of entrepreneurship.One principle its trainers focus on is the difference between data and information.They also stress the importance and utility of a management information system.The trainers provide their clients with sufficient market research and statistics to understand trends in various areas.Pure Training prides itself on helping entrepreneurs launch and maintain successful businesses.
Refer to Pure Training, Inc.If clients had questions about present and future sales levels and inventory levels, the trainers should address which of the following areas of management?

A) financial
B) operations
C) marketing
D) human resources
E) administration

Question 21

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Mary Nettles works for a marketing and advertising firm.She must choose one ad piece from a number of potential ad pieces.To ensure that she makes the right decision, she should

A) put a brief description of each ad piece in a hat and draw one.
B) ignore any feedback that she gets from coworkers and consumers and make the decision herself.
C) gather information from coworkers and consumers on their reaction to the different ad pieces.
D) let her supervisor choose the ad piece.
E) discard all ad pieces and develop a new advertising campaign.

Question 22

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

A) a manager awareness program
B) a management information system
C) entrepreneurial information software
D) a computer information program
E) a desktop information system

Question 23

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Which of the following statements is correct?

A) The more information a manager has, the more risk there is when making a decision.
B) The more information a manager has, the less risk there is when making a decision.
C) Risk improves decision making.
D) Most managers make decisions without any information.
E) When the amount of information is low, there is less risk.

Question 24

The managers of Tappan Company have asked you how to make sense of the large list of people employed by the firm and the accompanying list of their current and past wages.You review the listings on the computer and instruct the computer to compute and graph the average wages for each occupational group, from clerical to sales to managerial.The graph is _____.

A) data
B) commendable
C) futuristic
D) information
E) datum

Question 25

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Refer to Academic Standard, Inc.Academic Standard can be classified as a(n) _____.

A) service business
B) e-business
C) i-business
D) textbook business
E) nonbusiness entity

Question 26

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Managers at Dillard's department stores know that if they price all of the merchandise at 25 percent off, they will sell more; therefore Dillard's frequently runs sales.Dillard's used a(n) ____ to make this decision.

A) information rule
B) cost-benefit analysis
C) decision rule
D) data analysis
E) supply and demand rule

Question 27

Tom was described as a "tall, sturdily built male with short dark hair." These descriptors qualify as _____.

A) information
B) data
C) ideas
D) comments
E) opinions

Question 28

The headquarters building for Longaberger, a company that produces and sells hand-woven baskets, can be described as several stories tall, light brown, and shaped like a basket.These descriptors of this building are ____.

A) information
B) opinions
C) ideas
D) statistics
E) data

Question 29

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Information rules

A) emerge when research confirms the same results each time a problem is studied.
B) are of no use to most managers because situations are constantly changing.
C) are often called the great confusers.
D) cost too much to implement.
E) are valid only when they can be used to aid the decision-making process over a large number of years.

Question 30

Operations managers need management information in all except which of the following areas?

A) the cost of production
B) current inventory levels
C) availability of resources
D) future capitalization needs
E) present and future sales levels

Question 31

Numerical or verbal descriptions that usually result from measurements of some sort are known as _____.

A) information
B) statistics
C) software
D) frequency distributions
E) data

Question 32

A manager at the executive level responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions is often called a(n) _____.

A) information expert
B) technology expert
C) MIS officer
D) information technology officer
E) database manager

Question 33

Marty is a financial manager at Wheeler Corporation.He must be concerned about all except which of the following areas?

A) costs of products competitors are developing
B) debts and receivables of the company
C) the present state of the economy and interest rates
D) future capitalization needs
E) financial statements and other accounting information

Question 34

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Refer to Academic Standard, Inc.Jonathan suggested that the company ____ part of production.

A) import
B) export
C) outsource
D) supply-chain
E) barter

Question 35

Academic Standard, Inc.(ASI)
Academic Standard, Inc., sells its products through the Internet.Amanda is one of the biggest buyers of the company's products for her business.Susan, who is Amanda's sales representative, recently suggested that ASI classify Amanda as a preferred customer.
Although ASI has been successful in the past, the company recently encountered the problem of high production costs.Jonathan, a veteran employee of the company, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies.Jonathan also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits.He explained many disadvantages of operating solely through the Internet.
Refer to Academic Standard, Inc.Amanda's interaction with ASI is an a example of _____.

A) B2B
B) B2C
C) business to supplier
D) business to customer
E) business to client

Question 36

Information rules do all except which of the following?

A) shorten the time spent analyzing choices
B) correctly guide marketing decision makers
C) help both managers and consumers make decisions
D) remain valid forever once they are established
E) emerge when research confirms the same results in repeated trials

Question 37

The specific types of information that managers need depend on their area of management and on their

A) level within the firm.
B) understanding of data.
C) background in computer science.
D) willingness to learn COBOL.
E) use of the information.

Question 38

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____.Managers can access and use this to make decisions about suppliers.

A) information
B) a database
C) a management information system
D) a marketing information system
E) data

Question 39

____ is a firm's procedures for generating, using, and sharing the data and information contained in the firm's database.

A) Database procedures (DP)
B) Knowledge management (KM)
C) Artificial intelligence process (AIP)
D) Management information process (MIP)
E) Knowledge protocol (KP)

Question 40

A(n) ____ is a single collection of data stored in one place and used by employees throughout an organization to make decisions.

A) data collection
B) database
C) data center
D) information center
E) management data center

Question 41

In his position as administrative manager of Crumble Plastics Company, Kevin Crumble's primary concern is

A) the cost of producing each of the firm's goods.
B) current legislation and court decisions that affect employment practices.
C) new and projected promotional campaigns.
D) financial ratios.
E) the overall management of the organization.

Question 42

A measure that summarizes a particular characteristic of a group of numbers is called a(n) _____.

A) array
B) statistic
C) frequency distribution
D) arithmetic mean
E) data bank

Question 43

In gathering the data for its management information system, Clark Stores, Inc., used company records, reports from managers' meetings, and suppliers.How many of its sources were external data sources?

A) all
B) none
C) three
D) two
E) one

Question 44

Which of the following statements is incorrect?

A) An MIS must be tailored to the needs of the organization it serves.
B) When some firms install an MIS, they tend to save on initial costs and choose a system that is too small.
C) Because of improvements in MIS systems, most experts recommend the same basic system for both small and large firms.
D) When it comes to a management information system, unused capacity and complexity do nothing but increase the cost of owning and operating the system.
E) Today, most business organizations expect much from their management information systems.

Question 45

Holly is often assigned the task of extracting information from her company's MIS and putting it into a particular format that is useful to the management.Holly is performing _____.

A) statistics
B) automatic updating
C) data processing
D) manual updating
E) data collection

Question 46

Allen, a manager at a financial services company, uses information from The Wall Street Journal to guide his actions as a manager.In this scenario, The Wall Street Journal serves as a(n) _____.

A) internal source of data
B) periodical reference
C) external source of data
D) management information system
E) data bank

Question 47

Problems in collecting data include

A) costs, mistakes, and accuracy.
B) costs, forecasts, and predictions.
C) storage, personnel, and completeness.
D) judgments, mistakes, and accuracy.
E) forecasts, judgments, and completeness.

Question 48

Human resources managers need management information in all except which of the following areas?

A) wage levels and benefits packages
B) financial ratios
C) employment practices legislation
D) union activities
E) the firm's growth plans

Question 49

All past and current data that may be useful in managing the firm is included in the _____.

A) computer system
B) company network
C) statistics collection
D) marketing information system
E) data bank

Question 50

All of the following except which are functions of a management information system?

A) collecting data
B) printing data
C) processing stored data into information
D) storing and updating data
E) presenting information to users

Question 51

The part of a business report that describes the problem to be studied is the _____.

A) statistical section
B) introduction
C) body of the report
D) recommendations
E) conclusions

Question 52

Most data gathered for an MIS come from _____.

A) customers
B) bankers
C) external sources
D) internal sources
E) information obtained from data firms

Question 53

All of the following would be examples of internal information sources except company _____.

A) records
B) managers
C) competitors
D) reports
E) meetings

Question 54

Karen has been assigned to find data about the effectiveness of past promotional campaigns for the company.Within what source of the company's MIS is she likely to find the information she needs?

A) human resources records
B) financial publications
C) industry reports
D) sales reports
E) past production forecasts

Question 55

At every Wal-Mart store, when a customer purchases a product, the system immediately reflects that purchase in a central computer and calculates the new inventory level.This system is

A) manually updated.
B) updated at the end of each month.
C) performing statistical analysis.
D) a data bank.
E) automatically updated.

Question 56

Which of the following is not one of the sections included in a typical business report?

A) recommendations
B) body of the report
C) introduction
D) analysis
E) conclusions

Question 57

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."

A) body of the report
B) conclusion
C) analysis
D) recommendations
E) introduction

Question 58

Marketing managers need information in all except which of the following areas?

A) the product mix
B) competitors' product offerings
C) coordination of financial resources
D) new and projected promotional campaigns
E) new and pending product legislation

Question 59

Most business data is in the form of _____.

A) numbers
B) statistics
C) verbal information
D) qualitative descriptors
E) modes

Question 60

Collection of the data needed to establish an MIS results in _____.

A) statistics
B) a software program
C) a computer system
D) qualitative research
E) a data bank

Question 61

A collaborative learning system

A) is a work environment that allows problem-solving participation by all team members.
B) is a part of a database management program.
C) is too expensive for all firms except extremely large corporations.
D) has failed to demonstrate practical results.
E) is more like a chat site for people located in offices in the United States.

Question 62

A computer-based system that facilitates and supports the decision-making needs of top managers and senior executives is referred to as a(n) ____ system.

A) executive information
B) knowledge-centered
C) LAN
D) data inquiry
E) groupware

Question 63

In order to present verbal or numerical information in columns and rows, Sandra Waters must use a _____.

A) pie diagram
B) bar chart
C) tabular display
D) chart program
E) presentation matrix

Question 64

A type of computer program that provides relevant data and information to help a firm's employees make decisions and choose different courses of action is referred to as a(n) _____.

A) integrated information system (IIS)
B) statistical process control (SPC)
C) decision-support system (DSS)
D) computer-aided decision system (CADS)
E) computer-integrated information system (CIIS)

Question 65

If a firm posts employee openings along with the required skills needed on its website, it is using the Internet to

A) recruit employees.
B) reform employees.
C) conduct financial activities.
D) train employees.
E) assist the sales force.

Question 66

The following quotation would most likely be found in the ____ of a business report: "This information demonstrates the company's lack of providing critical training and safety equipment to its employees, leading to OSHA violations and fines."

A) introduction
B) conclusion
C) body
D) recommendations
E) suggestions

Question 67

A software program that facilitates the management of large projects among geographically dispersed employees is a ____ program.

A) desktop management
B) spreadsheet
C) database management
D) graphical design
E) groupware

Question 68

The part of a business report that describes the facts that were discovered in the process of completing the report is the _____.

A) statistical section
B) introduction
C) body of the report
D) recommendations
E) primary section

Question 69

Before deciding to train its employees in website design, Hartman Co.conducts a careful analysis of how this training will help the company.This is a _____.

A) cost/benefit analysis
B) statistical analysis
C) web analysis
D) training/cost review
E) technology promotion review

Question 70

To determine if it makes sense for managers and employees to use the Internet to solve problems, firms use _____.

A) cost/benefit analysis
B) economic analysis
C) profit determinants
D) accounting ratios
E) financial analysis

Question 71

Which of the following statements is false?

A) Sales force automation programs focus on the special needs of a firm's sales force.
B) Sales force automation programs provide sales representatives with an organized database.
C) Vendors guarantee that a firm's sales will increase by 10 to 15 percent if they use sales force automation programs.
D) With a good sales force automation program, information about potential customers can be shared with other employees within a firm.
E) A good sales force automation program can provide information about how clients were approached, what the results were of the last contact, and who else in the firm has interacted with the client.

Question 72

A diagram that represents several items of information in a manner that facilitates comparison is called _____.

A) media
B) a promotional piece
C) a design
D) a visual display
E) None of these answers are correct

Question 73

The part of a business report that presents suggestions on how a problem might be solved is the _____.

A) statistical section
B) introduction
C) body of report
D) recommendations
E) conclusions

Question 74

The following quotation would most likely be found in the ____ of a business report: "Based on these findings, the company should begin phasing out the production of its Super-Bolt and have it completely eliminated within six months in order to prevent further financial losses."

A) body
B) conclusions
C) recommendations
D) introduction
E) suggestions

Question 75

Micromagic Labs uses a(n) ____ system to utilize artificial intelligence when conducting experiments in its laboratories.

A) synthetic
B) groupware
C) collaborative technology
D) expert
E) analytic

Question 76

Keyser Corporation uses technology to automatically transfer files and notes to appropriate personnel so information about new sales opportunities can be distributed.This application of technology is best described as _____.

A) a moving database
B) customer recruiting software
C) a sales force automation program
D) a management information system
E) hypertext transfer protocol

Question 77

A software package that allows users to electronically store large amounts of data and to transform the data into information is a(n) ____ program.

A) desktop publishing
B) accounting
C) database management
D) computer-aided design
E) spreadsheet

Question 78

When employees use e-mail, they

A) must use computers and software.
B) can communicate twenty-four hours a day, seven days a week.
C) can communicate with people inside the firm.
D) can communicate with people outside the firm.
E) All of the above are correct.

Question 79

During a call on a perspective client, Kate discovers that this client is very interested in another product Kate's company sells, but it is from a different division that Kate knows little about.Her sales call ends up unsuccessful.What could have helped Kate's company benefit in this situation?

A) a collaborative learning system
B) a sales force automation system
C) more financial resources
D) larger sales force
E) spending less time on selling

Question 80

Barbara is reading through a business report and is stumped when she reads the conclusions and recommendations of the report.These sections do not seem to agree with the rest of the report or the results of the research.Barbara knows that in a well-written business report the ____ will provide a foundation for the conclusions and recommendations.

A) purpose of the report
B) introduction
C) tables and graphs
D) body of the report
E) author of the report