Question 1

Michelle is the owner of a large chain of successful department stores.One reason for her success comes from the supply chain system.When a customer purchases an item from a store,the supplier is able to know immediately if the safe stock level has been reached.If it has,a shipment of product is sent immediately and directly to the store.This allows Michelle to dedicate more space to retail and less space to storage.What technology enables Michelle to have such a supply chain system?
A) electronic data interchange
B) corporate portal
C) firewall
D) intranet

Accepted Answer

Electronic data interchange (EDI) allows for the exchange of business documents, such as purchase orders and invoices, between different organizations in a standardized electronic format. This allows for efficient communication and processing of transactions in a supply chain system.

Question 2

What have companies that use electronic data interchange,extranets,and the Internet to gain a competitive advantage experienced?
A) decreased costs
B) lower productivity
C) worsening customer service
D) faster authentication

Accepted Answer

Companies that use electronic data interchange, extranets, and the internet to gain a competitive advantage have experienced decreased costs. Electronic data interchange allows for the automation of business transactions between companies, leading to increased efficiency and lowered costs. Extranets allow for improved collaboration and communication with partners and suppliers. The internet provides access to a global market and allows for online sales and marketing, both of which can lead to decreased costs.

Question 3

Eckerd has automated its purchasing transactions and other e-commerce activities with its small- to mid-size suppliers.Thousands of Eckerd's suppliers have secure access to critical trading partner information and facilitated trading partner automation.Which term best describes what Eckerd built?
A) extranet
B) virtual portal
C) Web service
D) corporate portal

Accepted Answer

An extranet allows companies to exchange information and conduct transactions by purposely providing outsiders with direct,Web browser-based access to authorized parts of a company's intranet.

Question 4

Which of the following allows companies to exchange information and conduct transactions by purposely providing outsiders with direct,Web browser-based access to authorized parts of a company's intranet?
A) extranet
B) virtual portal
C) Web service
D) corporate portal

Accepted Answer

An extranet is a private network that allows companies to securely share information and conduct transactions with authorized external parties, such as customers, suppliers, or partners, using web-based tools or interfaces. An extranet extends a company's intranet by providing controlled access to specific parts of the internal network and applications to external users. This allows companies to collaborate more efficiently, streamline operations, reduce costs, and improve customer service. A virtual portal is a type of website that aggregates content and services from different sources or applications and presents them in a unified interface. A web service is a software system designed to support interoperable machine-to-machine interaction over a network. A corporate portal is a website that provides employees with centralized access to relevant information, tools, and applications within an organization.

Question 5

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.Kibu.com collected survey information for itself and its sponsors,and then looked for behaviour patterns that could provide useful market information for its advertisers.What was Kibu engaged in?
A) environmental scanning
B) prospect collecting
C) electronic scanning
D) data mining

Accepted Answer

Data mining is the process of discovering unknown patterns and relationships in large amounts of data.

Question 6

What benefit do companies receive from using a decision support system (DSS)?
A) It is broad in scope.
B) It speeds up and simplifies the acquisition of information.
C) It permits managers to retrieve all kinds of information.
D) It allows managers to better understand a problem and its potential solutions.

Accepted Answer

The answer of What benefit do companies receive from using...

Question 7

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.Where would the information Kibu.com collected be stored?
A) large mainframes
B) data warehouses
C) information mines
D) knowledge adjacencies

Accepted Answer

The information collected by Kibu.com would most likely be stored in data warehouses, where it could be organized and analyzed to provide insights into user behavior and preferences.

Question 8

What is the term for the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system?
A) automated processing
B) electronic data interchange
C) transaction channelling
D) data manipulation

Accepted Answer

The term for the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system is electronic data interchange (EDI).

Question 9

Why is knowledge important?
A) Knowledge guarantees success.
B) Knowledge resides in information.
C) Knowledge is the understanding that one gains from information.
D) Knowledge is easier to acquire than data and information.

Accepted Answer

Knowledge is the understanding that one gains from information, which is essential for making informed decisions, solving problems, and ultimately achieving success. Data and information are meaningless without the context and understanding provided by knowledge. Additionally, knowledge is not necessarily easier to acquire than data and information as it requires the interpretation and integration of various sources.

Question 10

Which of the following works by using a collection of "if-then" rules to sort through information and recommend a course of action?
A) an expert system
B) a decision support system
C) an executive information system
D) a RAID system

Accepted Answer

Expert systems rely on a knowledge base of "if-then" rules to mimic the decision-making capabilities of a human expert in a given field. They are designed to analyze data and recommend a course of action based on that analysis. Decision support systems (B) and executive information systems (C) may incorporate rule-based reasoning, but they are not solely based on "if-then" rules. A RAID system (D) is a type of data storage technology and has no relation to rule-based reasoning.

Question 11

Just a teaspoon too much or too little of a single ingredient can turn a great cake into a mediocre cake.The ability to know just how much to add,how long to stir,and how the cake should smell when cooked is a skill that a long-time baker would have.Which of the following can help others capture this specialized knowledge?
A) electronic data interchanges
B) pragmatic portals
C) data mining
D) expert systems

Accepted Answer

Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.

Question 12

The National Peanut Research Laboratory (NPRL)manages peanut irrigation and pest management decisions.Irrigation recommendations are based on more than 20 years of scientific research data and information.Growers input field data,including planting date,variety planted,previous crop,soil type,and irrigation capacity; then the software advises them if and how much to irrigate or when to check soil temperatures again.What did NPRL create to do this?
A) electronic data interchange
B) pragmatic portal
C) data mining
D) expert system

Accepted Answer

Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.

Question 13

Which of the following uses a standardized format to describe data from one company in such a way that those data can automatically be read,understood,and processed by different computer systems in another company?
A) extranets
B) intranets
C) electronic data interchange
D) corporate portals

Accepted Answer

Electronic data interchange (EDI) uses a standardized format to describe data from one company, making it possible for those data to be automatically read, understood, and processed by different computer systems in another company. This facilitates the exchange of business documents such as purchase orders, invoices, and bills of lading between companies. Extranets, intranets, and corporate portals are not necessarily standardized formats for data exchange.

Question 14

What is the term for an information system that helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools?
A) intranet
B) executive information system
C) expert system
D) decision support system

Accepted Answer

The term for an information system that helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools is a decision support system. A decision support system provides interactive tools for decision-making and supports unstructured and semi-structured decision-making activities. In contrast, an intranet is a network used within an organization that provides access to information within the organization. An executive information system is a type of decision support system specifically designed for top-level managers, providing summarized information from a variety of sources. An expert system is a type of artificial intelligence that emulates the decision-making ability of a human expert in a particular domain.

Question 15

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.For which of the following would Kibu.com use firewalls?
A) to identify data patterns
B) to protect its internal organizational network from hackers
C) to offer security as one of its differential advantages
D) to prevent anyone except girls between the ages of 13 and 18 from visiting the site

Accepted Answer

Kibu.com would use firewalls to protect its internal organizational network from hackers, as it was an online fashion magazine for teens and had sponsors who may have sensitive data on the site. Firewalls help to prevent unauthorized access to a network and protect against cyber attacks.

Question 16

Narrative 17-2
For more than a century, the city of London, England, has had the worst traffic in Europe. Half the time is spent at a standstill, and the average speed is 9 mph, down from 12 mph in 1903 when traffic consisted of horses and carriages. To improve traffic, London's mayor has imposed a "Congestion Zone" fee of £5 per day for any vehicle that enters the eight square miles of central London between 7 a.m. and 6:30 p.m. on weekdays. Drivers who enter the zone but don't pay are fined from £50 to £125.
First, 688 cameras were used in 203 locations to take accurate pictures of vehicles entering the zone. In general, the cameras are only 90 percent accurate in reading the licence plate numbers on the cars. But with 688 cameras in total, multiple pictures are taken of each car, and partial pictures of licence plates are matched with complete pictures, with the former discarded and the latter retained.
Next, the pictures from the cameras are sent via a dedicated fibre-optic cable to an "image management store." An "image management store" is basically a huge farm of networked, redundant servers. If one server goes down, multiple backup servers run live with the same data. Doing this was needed because the city anticipated processing one million pictures a day.
Once the pictures are snapped, transported via fibre-optic cable, and placed in the "image management store," the next step is "reading" the licence plate in the picture, converting it to readable text, and matching licence plate records stored in government databases. Transport of London uses software that scans digitized documents into ASCII text and then matches and compares multiple pictures of the same licence plate. For example, imagine that a licence plate is 12345678 and that the congestion cameras get three partial pictures-12345, 34567, and 5678-and one complete picture, 12345678. The software has to interpret that all four pictures were of the same vehicle; then, it has to select the last picture, 12345678, not the partial pictures, when converting the picture to text. Finally, once the licence plate is converted to text, its number is then matched with an existing licence plate in a government database. At that point, "Congestion Zone" charges are linked with whoever owns the vehicle.
-Refer to the Narrative 17-2.The City of London located 688 cameras in 203 locations to take accurate pictures of vehicles entering its "Congestion Zone." Multiple pictures are taken of each car,and partial pictures of licence plates are matched with complete pictures,with the former thrown out,and the latter retained.What would the cumulative store of all the photographs be classified as?
A) as information
B) as biometrics
C) as perceived knowledge
D) as raw data

Accepted Answer

The cumulative store of all the photographs would be classified as raw data, as it is unprocessed and unorganized information. It needs to be processed and analyzed further to be turned into meaningful information.

Question 17

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.The developer of Kibu and his investors created the first company to offer both content and chat rooms aimed at girls between the ages of 13 and 18.Which of the following were they most likely hoping to gain?
A) first-mover advantage
B) market aggregation
C) comparative promotional point
D) differential benefit

Accepted Answer

The first company to use new information technology to substantially lower costs or differentiate products or services often gains first-mover advantage.

Question 18

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.Which term can be used to describe an individual's unprocessed response to a Kibu survey?
A) information
B) knowledge
C) raw data
D) mining statistics

Accepted Answer

An individual's unprocessed response to a Kibu survey can be described as raw data. This refers to data that has not yet been analyzed or processed in any way.

Question 19

A cosmetics manufacturer could learn from analyzing data that teenage girls who buy more than six bottles of nail polish monthly also like to dress up their pets to match their outfits.(The manufacturer might want to use this information to develop a line of pet nail polish.)Which kind of pattern would be identified by these survey results?
A) a sequence pattern
B) a cluster pattern
C) a stratified pattern
D) an association pattern

Accepted Answer

This situation demonstrates an association pattern between two seemingly unrelated behaviors or preferences. The fact that teenage girls who buy a lot of nail polish also enjoy dressing their pets in matching outfits suggests that there is a correlation between these two behaviors. Identifying this pattern could help the cosmetics manufacturer develop new products or marketing strategies that appeal to this group of customers.

Question 20

Why would a company use a decision support system (DSS)?
A) It speeds up and simplifies the acquisition of information.
B) It only processes security data.
C) It helps managers understand problems and potential solutions with sophisticated models.
D) It can be used to replace all managerial decision making.

Accepted Answer

The answer of Why would a company use a decision...

Quiz 17: Managing Information in a Global World

What have companies that use electronic data interchange,extranets,and the Internet to gain a competitive advantage experienced?

Eckerd has automated its purchasing transactions and other e-commerce activities with its small- to mid-size suppliers.Thousands of Eckerd's suppliers have secure access to critical trading partner information and facilitated trading partner automation.Which term best describes what Eckerd built?

Which of the following allows companies to exchange information and conduct transactions by purposely providing outsiders with direct,Web browser-based access to authorized parts of a company's intranet?

What benefit do companies receive from using a decision support system (DSS) ?

What is the term for the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system?

Why is knowledge important?

Which of the following works by using a collection of "if-then" rules to sort through information and recommend a course of action?

Which of the following uses a standardized format to describe data from one company in such a way that those data can automatically be read,understood,and processed by different computer systems in another company?

What is the term for an information system that helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools?

Why would a company use a decision support system (DSS) ?