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COMM Final

STUDY
PLAY
1) Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.
Answer: TRUE
2) You would use an MIS to help decide whether to introduce a new product line.
Answer: FALSE
3) Online collaboration tools eliminate the need for global firms to have synchronous collaboration.
Answer: TRUE
4) Transaction processing systems are most commonly used by the senior management level of an organization.
Answer: FALSE
5) A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.
Answer: TRUE
6) A hotel reservation system is a typical example of a management information system.
Answer: FALSE
7) Management information systems typically support nonroutine decision making.
Answer: FALSE
8) Enrolling employees in benefits plans is a business process handled by the finance and accounting function.
Answer: FALSE
9) Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favor of cross-functional systems.
Answer: TRUE
10) Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment.
Answer: TRUE
11) Most MISs use sophisticated mathematical models or statistical techniques.
Answer: FALSE
12) Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.
Answer: TRUE
13) Decision-support systems use internal information as well as information from external sources.
Answer: TRUE
14) ESSs are designed to serve the middle management of the organization.
Answer: FALSE
15) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
Answer: TRUE
16) A Skype conference call using VOIP and webcams is an example of a remote, synchronous collaboration tool.
Answer: TRUE
17) ESSs are designed primarily to solve specific problems.
Answer: FALSE
18) Information supplied by an enterprise system is structured around cross-functional business processes.
Answer: TRUE
19) Enterprise systems often include transactions with customers and vendors.
Answer: TRUE
20) Supply chain management systems are more externally oriented than enterprise systems.
Answer: TRUE
1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business.
Answer: TRUE
2) Enterprise systems are typically built around one or two major business workflows.
Answer: FALSE
3) Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers.
Answer: FALSE
4) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
Answer: FALSE
5) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
Answer: TRUE
6) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
Answer: FALSE
7) The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.
Answer: TRUE
8) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
Answer: FALSE
9) To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software.
Answer: TRUE
10) Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes.
Answer: TRUE
11) In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.
Answer: FALSE
13) Wal-mart's strategy of continuous replenishment of inventory based on actual customer purchases is an example a pull-based SCM model.
Answer: TRUE
14) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.
Answer: TRUE
15) You would expect to find PRM and ERM modules in the most comprehensive CRM software packages.
Answer: TRUE
16) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com.
Answer: TRUE
17) Cross-selling markets complementary products to customers.
Answer: TRUE
18) CRM software can help organizations identify high-value customers for preferential treatments.
Answer: TRUE
19) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.
Answer: TRUE
20) Enterprise systems require fundamental changes in the way the business operates.
Answer: TRUE
12) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
Answer: FALSE
21) An example of a collaboration tool that supports colocated, asynchronous collaboration is
A) a team room.
B) e-mail.
C) a MUD.
D) a wall display.
;Answer: A
22) Identifying customers is a responsibility of the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
;Answer: D
23) Producing bills of materials is a business process within the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
;Answer: C
24) Which of the following is an example of a cross-functional business process?
A) identifying customers
B) creating a new product
C) assembling a product
D) paying creditors
;Answer: B
25) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?
A) ESS
B) TPS
C) MIS
D) DSS
;Answer: B
26) To monitor the status of internal operations and the firm's relations with the external environment, managers need ________ systems.
A) decision-support
B) knowledge
C) transaction processing
D) management information
;Answer: C
27) Which systems are typically a major source of data for other systems?
A) transaction processing systems
B) management information systems
C) executive support systems
D) decision-support systems
Answer: A
28) Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: C
29) A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of
A) knowledge management systems.
B) transaction processing systems.
C) executive support systems.
D) management information systems.
Answer: D
30) The term "management information systems" designates a specific category of information systems serving
A) integrated data processing throughout the firm.
B) transaction process reporting.
C) employees with online access to historical records.
D) middle management functions.
Answer: D
31) Non-typical business problems with causes and effects that are rapidly changing are typically handled by which type of information system ?
A) MIS
B) TPS
C) ESS
D) DSS
Answer: D
32) ________ systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance.
A) Management information
B) Transaction processing
C) Decision-support
D) Knowledge management
Answer: C
33) Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: D
34) Which of the following is not one of the four main classifications for collaboration tools identified by the space/time matrix?
A) synchronous/colocated
B) same time/remote
C) different time/remote
D) remote/colocated
Answer: D
35) All of the following statements regarding Lotus Notes are true except for
A) It began as an e-mail and messaging client.
B) It is the most widely used collaboration tool at Fortune 1000 companies.
C) Firmwide installations at a large company require specialized servers and may cost millions of dollars per year.
D) It provides tools for e-mail, calendars, help desk, CRM, blogs, and wikis.
Answer: A
36) ESS are specifically designed to serve which level of the organization?
A) operational
B) end-user
C) middle management
D) senior management
Answer: D
37) Executive support systems are information systems that support the
A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision-making and administrative activities of middle managers.
D) day-to-day processes of production.
Answer: A
38) Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content?
A) transaction processing systems
B) executive support systems
C) management information systems
D) decision-support systems
Answer: B
39) Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: A
40) What is the most important function of an enterprise application?
A) increasing speed of communicating
B) enabling business functions and departments to share information
C) enabling a company to work collaboratively with customers and suppliers
D) enabling cost-effective e-business processes
Answer: B
41) ________ are designed to support organization-wide process coordination and integration.
A) Decision-support systems
B) Management information systems
C) CRM systems
D) Enterprise applications
Answer: D
42) A(n) ________ system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business.
A) transaction
B) enterprise
C) automatic reporting
D) management information
Answer: B
43) You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide a solution?
A) CRM
B) enterprise system
C) extranet
D) intranet
Answer: C
44) The point-of-sale Pulse system used by Domino's to maintain consistent and efficient management functions in its restaurants is best categorized as which type of system?
A) TPS
B) DSS
C) CRM
D) more than one of the above
Answer: D
45) In Domino's upgraded Pulse Evolution system, it incorporated a Pizza Tracker functionality that shows the progression of individual pizza orders. This is an example of using information systems to achieve which business objective?
A) customer and supplier intimacy
B) survival
C) improved decision making
D) operational excellence
Answer: A
46) The four major enterprise applications are
A) SCMs, CRMs, DSSs, and KMSs.
B) SCMs, CRMs, ESSs, and KMSs.
C) enterprise systems, SCMs, DSSs, and CRMs.
D) enterprise systems, SCMs, CRMs, and KMSs.
Answer: D
47) Enterprise systems are also known as ________ systems.
A) resource planning
B) enterprise resource planning
C) enterprise support
D) management information
Answer: B
48) Enabling management to make better decisions regarding organizing and scheduling sourcing, production, and distribution is a central feature of
A) SCMs
B) TPSs
C) KMSs
D) ERPs
Answer: A
49) ________ systems integrate supplier, manufacturer, distributor, and customer logistics processes.
A) Collaborative distribution
B) Supply-chain management
C) Reverse logistics
D) Enterprise planning
Answer: B
50) ________ systems are designed to help firms manage their relationships with their customers.
A) CRM
B) MIS
C) CLE
D) CLU
Answer: A
51) Which types of systems consolidate the relevant knowledge and experience in the firm to make it available to improve business processes and management decision making?
A) TPS
B) extranets
C) KMS
D) CRM
Answer: C
52) You are planning the launch of your new company, an application service provider that provides an online timesheet and project tracking application. To best communicate with and manage your relationship with your users, you would want to implement a(n)
A) extranet.
B) intranet.
C) KMS.
D) CMS.
Answer: D
53) All of the following are direct business benefits of collaboration, except for
A) improved quality.
B) improved financial performance.
C) improved customer service.
D) improved compliance with government regulations.
Answer: D
54) Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers?
A) intranet
B) extranet
C) KMS
D) TPS
Answer: B
55) Which of the following occupations would NOT be categorized as an "interaction" job?
A) sales representative
B) business manager
C) engineer
D) operations manager
Answer: C
57) Which of the following decisions requires knowledge based on collaboration and interaction?
A) How long will it take to manufacture this product?
B) Should we work with with outside vendors on new products and services?
C) In which geographical locations are our products garnering the most sales?
D) Which product design is the most efficient for the user in terms of energy use?
Answer: B
58) Buying or selling goods over the Internet is called
A) e-commerce.
B) e-business.
C) an intranet.
D) an extranet.
Answer: A
59) The use of digital technology and the Internet to execute the major business processes in the enterprise is called
A) e-commerce.
B) e-business.
C) enterprise applications.
D) MIS.
Answer: B
60) The principal liaison between the information systems groups and the rest of the organization is a(n)
A) programmer.
B) information systems manager.
C) systems analyst.
D) CTO.
Answer: C
61) A ________ is a senior manager who oversees the use of IT in the firm.
A) CEO
B) CFO
C) CIO
D) CTO
Answer: C
62) The ________ helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes.
A) CTO
B) CSO
C) CKO
D) CPO
Answer: C
63) The CPO is responsible for
A) ensuring that the company complies with existing data privacy laws.
B) making better use of existing knowledge in organizational and management processes.
C) enforcing the firm's information security policy.
D) overseeing the use of information technology in the firm.
Answer: A
64) Which of the following types of collaboration tools allows you to communicate with avatars using text messaging?
A) virtual worlds
B) screen sharing
C) collaborative writing
D) large audience Webinars
Answer: A
65) Which of the following roles falls into the duties of an information systems manager?
A) writing software instructions for computers
B) acting as liaison between the information systems group and the rest of the organization
C) translating business problems into information requirements
D) managing data entry staff
Answer: D
66) Which of the following statements about collaboration is not true?
A) In business, a collaboration can last as little as a few minutes.
B) Business collaboration relies on the formation of teams that are assigned a specific task or goal.
C) Successful collaboration can be achieved through technology regardless of the organization's culture or structure.
D) One business benefit of collaboration is improved innovation.
Answer: C
67) Which of the following is not one of the fifteen categories of collaborative software tools?
A) file sharing
B) event scheduling
C) white boarding
D) extranets
Answer: D
68) You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their clients' continually updated branding guides, which include multiple image files and text documents, to all of the firm's branches. What system will best serve these needs?
A) an intranet with KMS capabilities
B) an extranet with KMS capabilities
C) a TPS with KMS capabilities
D) a CRM
Answer: B
69) You have been hired by a worldwide non-profit agency to implement a system to handle their donations. The system must be able to handle and record telephone, sms, and Internet donations, provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event fundraisers need to be able to quickly access a donor's information and history. Which of the following systems will best meet these needs?
A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities
Answer: C
70) You have been hired by Inspiration Inc. to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the United States. The end products of the company are customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants, all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin?
A) extranet, to enable quick collaboration over the Internet , minimize the time spent communicating with the client, and minimize the amount of paperwork needed
B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client data
C) KMS, for minimizing redundant work on similar clients
D) marketing system, for improving sales levels
Answer: A
1) Internet advertising is growing at approximately 10 percent a year.
;Answer: TRUE
2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.
;;Answer: TRUE
3) A fully digital firm produces only digital goods or services.
;Answer: FALSE
4) A business model describes how a company produces, delivers, and sells a product or service to create wealth.
;Answer: TRUE
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.
;Answer: FALSE
6) Computers are only part of an information system.
;Answer: TRUE
8) The dimensions of information systems are management, organizations, and information technology.
;Answer: TRUE
9) Knowledge workers assist with paperwork at all levels of the firm.
;Answer: FALSE
10) There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.
;Answer: FALSE
11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.
;Answer: TRUE
12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.
;Answer: FALSE
14) Intranets allow firms to work easily with third-party suppliers and vendors.
;Answer: FALSE
15) An IT infrastructure provides the platform on which the firm can build its information systems.
;Answer: TRUE
16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.
;Answer: TRUE
17) Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.
;Answer: FALSE
20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.
;Answer: TRUE
21) The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
;Answer: B
22) Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?
A) improved flexibility
B) improved business practices
C) competitive advantage
D) survival
;Answer: C
24) Which of the following choices 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, 2, and 3
;Answer: D
25) Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of
A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.
;Answer: B
26) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
;Answer: C
28) The three activities in an information system that produce the information organizations use to control operations are
A) information retrieval, research, and analysis.
B) input, output, and feedback.
C) input, processing, and output.
D) data analysis, processing, and feedback.
;Answer: C
30) The average number of tickets sold daily online is an example of
A) input.
B) raw data.
C) meaningful information.
D) feedback.
;Answer: C
32) Converting raw data into a more meaningful form is called
A) capturing.
B) processing.
C) organizing.
D) feedback.
;Answer: B
33) An example of raw data from a national chain of automobile stores would be
A) an average of 13 Toyotas are sold daily in Kentucky.
B) 30 percent increase in Toyota RAV 4 sales during September in Kentucky.
C) 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
D) all of the above.
;Answer: C
34) The field that 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 is called
A) information systems literacy.
B) information systems architecture.
C) management information systems.
D) information technology infrastructure.
;Answer: C
36) Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?
A) competitive advantage
B) improved decision making
C) new products and services
D) survival
;Answer: C
37) 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) values.
;Answer: A
38) Thomas Friedman's declaration that the world was now "flat" meant that
A) the Internet has reduced the economic advantages of developed countries.
B) globalization is starting to offer less advantage to large corporations.
C) the global economy is increasingly commanded by fewer and larger corporations.
D) global capitalism is homogenizing culture and business practices throughout the world.
;Answer: A
40) The hardware and software used to transfer data in an organization is called
A) data management technology.
B) networking and data management technology.
C) data and telecommunications technology.
D) networking and telecommunications technology.
;Answer: D
41) 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) IT infrastructure.
D) information system.
;Answer: C
42) An example of a business using information systems to create new products and services is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
;Answer: D
44) An example of a business using information systems for customer and supplier intimacy is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
;Answer: B
45) 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
;Answer: B
46) Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below?
A) Use IT to increase supplier loyalty.
B) Use IT to increase operational efficiency.
C) Use IT to create new products and business models.
D) Use IT to help survive government reporting requirements.
E) Use IT to achieve customer intimacy.
;Answer: E
48) The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) improved decision-making
;Answer: B
49) In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
A) middle management.
B) service workers.
C) production management.
D) operational management.
;Answer: D
50) Which of the following are environmental actors that interact with an organization and its information systems?
A) customers
B) suppliers
C) regulatory agencies
D) all of the above
;Answer: D
52) A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?
A) managerial
B) governmental
C) social
D) organizational
;Answer: C
53) Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
A) invest in technology.
B) adopt a new business model.
C) invest in complementary assets.
D) modernize their information value chain.
;Answer: B
54) An example of an organizational complementary asset is
A) using the appropriate business model.
B) a collaborative work environment.
C) laws and regulations.
D) all of the above.
;Answer: A
56) Disciplines that contribute to the technical approach to information systems are
A) computer science, engineering, and networking.
B) operations research, management science, and computer science.
C) engineering, utilization management, and computer science.
D) management science, computer science, and engineering.
;Answer: B
57) The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is
A) management science.
B) MIS.
C) operations research.
D) utilization management.
;Answer: C
58) Sociologists study information systems with an eye to understanding
A) how systems affect individuals, groups, and organizations.
B) how human decision makers perceive and use formal information.
C) how new information systems change the control and cost structures within the firm.
D) the production of digital goods.
;Answer: A
60) The costs for firms operating on a global scale have been drastically reduced by
A) networking technology.
B) investments in organizational complementary assets.
C) the Internet.
D) the rise of digital content.
;Answer: C
61) Which of the following are key corporate assets?
A) intellectual property, core competencies, and financial and human assets
B) production technologies and business processes for sales, marketing, and finance
C) knowledge and the firm's tangible assets, such as goods or services
D) time and knowledge
;Answer: A
62) Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having
A) poor relationships with suppliers.
B) poor relationships with customers.
C) inadequate information.
D) a surplus of information.
;Answer: C
64) Which of the following would NOT be used as an input for an information system?
A) digital dashboard
B) handheld computer
C) bar-code scanner
D) cell phone
;Answer: A
65) Which field of study focuses on both a behavioral and technical understanding of information systems?
A) sociology
B) operations research
C) economics
D) management information systems
;Answer: D
66) 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.
;Answer: B
68) 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
;Answer: B
69) 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
;Answer: A
56) E-government refers to the application of ________ to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government.
A) the Internet and networking technologies
B) e-commerce
C) e-business
D) any computerized technology
;Answer: A
51) From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called
A) the information value chain.
B) the IT value chain.
C) information processing.
D) feedback.
;;Answer: A
67) Engineers, scientists, or architects, 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
;;Answer: C
63) A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
A) customer intimacy
B) operational excellence
C) survival
D) improved reporting
;;Answer: C
59) Psychologists study information systems with an eye to understanding
A) how systems affect individuals, groups, and organizations.
B) how human decision makers perceive and use formal information.
C) how new information systems change the control and cost structures within the firm.
D) the production of digital goods.
;;Answer: B
55) An example of a social complementary asset is
A) technology and service firms in adjacent markets.
B) training programs.
C) distributed decision-making rights.
D) all of the above.
;;Answer: A
7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.
;;Answer: FALSE
47) 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
;;Answer: C
43) An example of a business using information systems to attain operational excellence is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
;;Answer: A
35) In a hierarchical organization, the upper levels consist of
A) managerial and professional employees.
B) managerial, professional, and technical employees.
C) professional and operational employees.
D) managerial, professional, and operational employees.
;;Answer: B
27) Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?
A) operational excellence
B) new products and services
C) competitive advantage
D) customer support
;;Answer: A
39) Data management technology consists of the
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) software governing the organization of data on physical storage media.
D) hardware and software used to transfer data.
;;Answer: C
29) Order data for baseball tickets and bar code data are examples of
A) raw input.
B) raw output.
C) customer and product data.
D) sales information.
;;Answer: A
31) 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 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.
;;Answer: D
21) From your reading of the Cannondale case study, the firm implemented new information systems in order to achieve which of the main six business objectives?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) operational excellence
Answer: D
22) Which of the following is not an example of next-generation enterprise applications?
A) open-source solutions
B) on-demand solutions
C) solutions incorporating SCM
D) solutions incorporating SOA
Answer: C
23) A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes
A) SCM software.
B) ERP systems.
C) ERM software.
D) CRM modules.
Answer: B
24) Enterprise software is built around thousands of predefined business processes that reflect
A) the firm's organization.
B) industry goals.
C) best practices.
D) cutting edge workflow analyses.
Answer: C
25) Which of the following is not true about enterprise systems?
A) Enterprise systems help firms respond rapidly to customer requests for information or products.
B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
C) Enterprise software is expressly built to allow companies to mimic their unique business practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.
Answer: C;
26) You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?
A) Select the functions of the system you wish to use.
B) Select the business processes you wish to automate.
C) Map the company's business processes to the software's business processes.
D) Map the software's business processes to the company's business processes.
Answer: A;
27) When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with
A) configuration tables.
B) Web services.
C) data dictionaries.
D) middleware.
Answer: A;
28) In order to achieve maximum benefit from an enterprise software package, a business
A) customizes the software to match all of its business processes.
B) uses only the processes in the software that match its own processes.
C) changes the way it works to match the software's business processes.
D) selects only the software that best matches its existing business processes.
Answer: C
29) Supply chain complexity and scale increases when firms
A) move to globalization.
B) manage the procurement, manufacturing, and distribution functions themselves.
C) produce products and services that coordinate with hundreds or more firms and suppliers.
D) modify their existing workflows to comply with supply-chain management systems.
Answer: C
30) Why is overstocking warehouses not an effective solution for a problem of low availability?
A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.
Answer: D
31) A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a
A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
Answer: B
32) Components or parts of finished products are referred to as
A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.
Answer: D
33) A company's suppliers and the processes for managing relationships with them is the
A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
Answer: C
34) A company's organizations and processes for distributing and delivering products to the final customers is the
A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
Answer: D
35) Uncertainties arise in any supply chain because of
A) inaccurate or untimely information.
B) poor integration between systems of suppliers, manufacturers, and distributors.
C) inefficient or inaccurate MIS.
D) unforeseeable events.
Answer: D
36) Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?
A) safety stock
B) continuous replenishment
C) just-in-time strategies
D) demand planning
Answer: A
37) A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.
A) just-in-time
B) frictionless
C) bullwhip
D) safety-stock
Answer: A
38) A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.
A) network
B) bullwhip
C) ripple
D) whirlpool
Answer: B
39) Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.
A) push; pull
B) demand; continual
C) upstream; downstream
D) planning; execution
Answer: D
40) Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems.
A) demand
B) delivery
C) planning
D) execution
Answer: C
41) Supply chain planning systems
A) track the physical status of goods.
B) identify the transportation mode to use for product delivery.
C) track the financial information involving all parties.
D) track the status of orders.
Answer: B
42) Which supply chain planning function determines how much product is needed to satisfy all customer demands?
A) distribution management
B) replenishment planning
C) demand planning
D) order planning
Answer: C
43) Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.
A) demand
B) delivery
C) planning
D) execution
Answer: D
44) Capabilities of supply chain execution systems would not include
A) identifying the optimal transportation mode.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
Answer: A
45) From your reading of the Southwest Airlines case study, the company implemented a new inventory management system to achieve which of the following six business objectives?
A) customer and supplier intimacy
B) new products, services, and business models
C) survival
D) operational excellence
Answer: D
46) A supply chain driven by actual customer orders or purchases follows a ________ model.
A) pull-based model
B) build-to-stock
C) push-based
D) replenishment-driven
Answer: A
47) A build-to-order supply-chain model is also called a ________ model.
A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
Answer: B
48) Concurrent supply chains are made possible by which technology?
A) ERP systems
B) the Internet
C) supply chain management systems
D) just-in-time supply-chain technologies
Answer: B
49) The business value of an effective supply chain management system includes all of the following except
A) faster time to market.
B) cost reduction.
C) supply matched to demand.
D) increased inventory levels.
Answer: D
50) A ________ is a method of interaction with a customer, such as telephone or customer service desk.
A) point of presence
B) touch point
C) sales point
D) client channel
Answer: B
51) Which of the following would not be considered a contact point?
A) e-mail
B) Web site
C) intranet
D) retail store
Answer: C
52) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.
A) SCM
B) SFA
C) ERM
D) PRM
Answer: D
53) ________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.
A) SCM
B) SFA
C) ERM
D) PRM
Answer: C
54) Customer relationship management systems typically provide software and online tools for sales, customer service, and
A) marketing.
B) account management.
C) advertising.
D) public relations.
Answer: A
55) SFA modules in CRM systems would provide tools for
A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
Answer: D
56) Customer service modules in CRM systems provide tools for
A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
Answer: A
57) Marketing modules in CRM systems would provide tools for
A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
Answer: C
58) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.
A) Enterprise
B) ERM
C) PRM
D) ERP
Answer: B
13) A substantial part of management responsibility is creative work driven by new knowledge and information.
;;Answer: TRUE
23) The use of information systems because of necessity describes the business objective of
A) survival.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
;;Answer: A
58) ________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.
A) Enterprise
B) ERM
C) PRM
D) ERP
Answer: B
59) Selling a customer with a checking account a home improvement loan is an example of
A) operational CRM.
B) direct marketing.
C) cross-selling.
D) cross-channel promotions.
Answer: C
60) ________ management is an important capability for service processes that is found in most major CRM software products.
A) Returns
B) Lead
C) Account
D) Events
Answer: A
61) Which of the following is an important capability for sales processes that is found in most major CRM software products?
A) returns management
B) lead management
C) channel promotions management
D) events management
Answer: B
62) Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.
A) operational CRM
B) analytical CRM
C) operational SCM
D) analytical SFA
Answer: B
63) Analytical CRM applications
A) include tools for marketing automation.
B) provide consolidated data for operational CRM applications.
C) are based on data warehouses consolidated from operational CRM applications.
D) provide customer-facing applications.
Answer: C
64) Operational CRM applications include tools for
A) identifying buying patterns.
B) calculating CLTV.
C) salesforce automation.
D) pinpointing unprofitable customers.
Answer: C
65) Analyzing customer buying patterns is an example of
A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.
Answer: B
66) Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?
A) churn rate
B) CLTV
C) cost per lead
D) cost per sale
Answer: B
67) The measurement of the number of customers who stop using or purchasing products or services from a company is called
A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.
Answer: B
68) All of the following statements about enterprise applications are true except for
A) Enterprise applications are more successfully implemented when an organization has prepared for organizational change.
B) Once you have purchased and implemented a vendor's enterprise system, it is much less expensive to switch vendors.
C) The total implementation cost of a large system runs into millions of dollars.
D) Enterprise applications are based on organization-wide definitions of data.
Answer: B
70) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.
A) e-business suites
B) ERP systems
C) middleware
D) legacy systems
Answer: A
69) ________ integrate(s) multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner and provide a greater degree of cross-functional integration than the traditional enterprise applications.
A) PRM software
B) SFA software
C) ERP suites
D) Service platforms
;Answer: D