Business Information Systems in Your Career

Essentials of Management Information Systems

Business
90
Questions
20
True/False
50
Choices
20
Essay
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Questions

Q1
Free

Internet advertising is growing at a rate of more than 30 percent a year.

True/False
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A) True.
B) False.
Answer:
False
Q2
Free

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

True/False
expand_more
A) True.
B) False.
Answer:
True
Q3
Free

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 hardware and software needed.

True/False
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A) True.
B) False.
Answer:
False
Q4

Computers are only part of an information system.

True/False
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A) True.
B) False.
Answer:

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Q5

Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.

True/False
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A) True.
B) False.
Answer:

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Q6

The dimensions of information systems are people, organizations, and information technology.

True/False
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A) True.
B) False.
Answer:

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Q7

In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.

True/False
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A) True.
B) False.
Answer:

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Q8

Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.

True/False
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A) True.
B) False.
Answer:

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Q9

Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.

True/False
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A) True.
B) False.
Answer:

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Q10

Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.

True/False
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A) True.
B) False.
Answer:

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Q11

A network requires at least three computers and a shared resource.

True/False
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A) True.
B) False.
Answer:

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Q12

An IT infrastructure provides the platform on which the firm can build its information systems.

True/False
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A) True.
B) False.
Answer:

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Q13

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.

True/False
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A) True.
B) False.
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Q14

Identifying a problem includes agreeing that a problem exists.

True/False
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A) True.
B) False.
Answer:

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Q15

Political conflict is an example of the people dimension of business problems.

True/False
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A) True.
B) False.
Answer:

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Q16

As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.

True/False
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A) True.
B) False.
Answer:

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Q17

Forensic accounting is used to investigate bankruptcies and contract disputes.

True/False
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A) True.
B) False.
Answer:

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Q18

An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.

True/False
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A) True.
B) False.
Answer:

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Q19

Whereas marketing and financial careers have been transformed by the growth in information systems, management has–so far–remained relatively unaffected.

True/False
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A) True.
B) False.
Answer:

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Q20

There are two types of outsourcing: offshore outsourcing and foreign outsourcing.

True/False
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A) True.
B) False.
Answer:

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Q21

As discussed in the chapter opening case, the Yankees' use of information systems in their new stadium can be seen as an effort to achieve which of the primary business objectives?

Multiple Choice
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A) Operational excellence
B) Survival
C) Customer and supplier intimacy
D) Improved decision making
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Q22

Journalist Thomas Friedman's description of the world as "flat" referred to:

Multiple Choice
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A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
Answer:

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Q23

The six important business objectives of information technology are: new products, services, and business models; customer and supplier intimacy; improved decision-making; competitive advantage; operational excellence, and:

Multiple Choice
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A) flexibility.
B) survival.
C) improved business practices.
D) improved efficiency.
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Q24

The use of information systems because of necessity describes the business objective of:

Multiple Choice
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A) survival.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
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Q25

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?

Multiple Choice
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A) 1 only
B) 1 and 2
C) 2 and 3
D) 1, 2, and 3
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Q26

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of:

Multiple Choice
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A) improved flexibility.
B) improved decision-making.
C) improved efficiency.
D) customer and supplier intimacy.
Answer:

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Q27

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:

Multiple Choice
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A) improved efficiency.
B) customer and supplier intimacy.
C) survival.
D) competitive advantage.
Answer:

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Q28

An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:

Multiple Choice
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A) decision making and control in an organization.
B) communications and data flow.
C) managers analyzing the organization's raw data.
D) the creation of new products and services.
Answer:

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Q29

The three activities in an information system that produce the information organizations use to control operations are:

Multiple Choice
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A) information retrieval, research, and analysis.
B) input, output, and feedback.
C) input, processing, and output.
D) data analysis, processing, and feedback.
Answer:

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Q30

Order data for baseball tickets and bar code data are examples of:

Multiple Choice
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A) raw input.
B) raw output.
C) customer and product data.
D) sales information.
Answer:

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Q31

The average number of tickets sold daily online is an example of:

Multiple Choice
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A) input.
B) raw data.
C) meaningful information.
D) output.
Answer:

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Q32

Output:

Multiple Choice
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A) is feedback that has been processed to create meaningful information.
B) is information that is returned to appropriate members of the organization to help them evaluate the input stage.
C) transfers raw data to the people who will use it or to the activities for which it will be used.
D) transfers processed information to the people who will use it or to the activities for which it will be used.
Answer:

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Q33

Converting raw data into a more meaningful form is called:

Multiple Choice
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A) capturing.
B) processing.
C) organizing.
D) feedback.
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Q34

An example of raw data from a national chain of automobile stores would be:

Multiple Choice
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A) average of 13 Toyotas sold daily in Kentucky in 2007.
B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky.
C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky - $28000.
D) annual sales of Toyota RAV4s increased 2.4 percent.
Answer:

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Q35

Electronic computers and related software programs are the technical foundation, the tools and materials, of:

Multiple Choice
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A) all business procedures.
B) information accumulation.
C) modern information systems.
D) all industrialized countries.
Answer:

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Q36

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:

Multiple Choice
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A) information systems literacy.
B) information systems architecture.
C) management information systems.
D) information technology infrastructure.
Answer:

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Q37

A hierarchy:

Multiple Choice
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A) results in a clear-cut division of labor.
B) is composed primarily of experts trained for different functions.
C) is a pyramid structure of rising authority and responsibility.
D) is used primarily in large organizations to define job roles.
Answer:

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Q38

In a hierarchical organization, the upper levels consist of:

Multiple Choice
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A) managerial and professional workers.
B) managerial, professional, and technical workers.
C) professional and operational workers.
D) managerial, professional, and operational workers.
Answer:

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Q39

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:

Multiple Choice
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A) culture.
B) environment.
C) atmosphere.
D) values.
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Q40

Business processes:

Multiple Choice
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A) include informal work practices.
B) are used primarily for sales and accounting functions.
C) are governed by information technology.
D) are logically related tasks used primarily by operational personnel.
Answer:

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Q41

Data management technology consists of:

Multiple Choice
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A) the physical hardware and media used by an organization for storing data.
B) the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
C) the software governing the organization of data on physical storage media.
D) the hardware and software used to transfer data.
Answer:

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Q42

The hardware and software used to transfer data in an organization is called:

Multiple Choice
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A) data management technology.
B) networking and data management technology.
C) data and telecommunications technology.
D) networking and telecommunications technology.
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Q43

An intranet uses:

Multiple Choice
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A) mainframe technology.
B) infrared telecommunications systems.
C) the telecommunications capacities of fiber optic networks.
D) Internet technology within the boundaries of the firm.
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Q44

The first step in the four-step model of business problem solving is:

Multiple Choice
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A) agreeing that a problem exists.
B) identifying the problem.
C) outlining the problem's causes.
D) assigning the problem to a problem solver.
Answer:

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Q45

Inadequate database capacity is an example of the ________ dimension of business problems.

Multiple Choice
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A) technology
B) organizational
C) people
D) management
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Q46

Legal and regulatory compliance is an example of the ________ dimension of business problems.

Multiple Choice
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A) management
B) organizational
C) people
D) technology
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Q47

Aging hardware and outdated software are examples of the ________ dimension of business problems.

Multiple Choice
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A) technology
B) management
C) information systems
D) organizational
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Q48

Poor business processes and unsupportive culture are examples of the ________ dimension of business problems.

Multiple Choice
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A) management
B) organizational
C) people
D) infrastructure
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Q49

The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they have left the office. This is a business problem that falls into the:

Multiple Choice
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A) management dimension.
B) people dimension.
C) organizational dimension.
D) technology dimension.
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Q50

Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the:

Multiple Choice
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A) management dimension.
B) people dimension.
C) organizational dimension.
D) technical dimension.
Answer:

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Q51

In choosing the best solution for a business problem, one of the most important considerations is:

Multiple Choice
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A) change management.
B) existing resources and skills.
C) employee training.
D) outcome measurement.
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Q52

The final step in the four-step model of business problem solving is:

Multiple Choice
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A) outcome.
B) implementation.
C) change management.
D) feedback.
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Q53

Which of the following would not be considered part of the implementation phase of problem solving?

Multiple Choice
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A) change management
B) purchasing hardware for an information systems solution
C) training an employee on new systems software
D) evaluating a selection of software packages for implementing a new business process
Answer:

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Q54

The failure of NASA's initial solution to preventing the space shuttle shedding foam illustrates:

Multiple Choice
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A) the importance of training employees on new business processes.
B) the need to prepare for measuring outcomes of a business solution.
C) the continuous nature of problem solving.
D) the need to quickly adapt to new technological innovations.
Answer:

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Q55

One of the most frequent errors in problem solving is:

Multiple Choice
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A) rushing to judgment.
B) not being aware of personal limitations.
C) being too doubtful.
D) following a rote pattern of decision making.
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Q56

A major criterion in deciding the most important perspectives of a business problem is:

Multiple Choice
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A) implementation.
B) change management.
C) usefulness.
D) organizational needs.
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Q57

Which of the following is an example of a business using information systems to create new products and services?

Multiple Choice
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A) Apple's creation of the iPod
B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker
D) Verizon's Web-based digital dashboard providing real-time company information for managers
Answer:

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Q58

An example of a business using information systems to attain competitive advantage is:

Multiple Choice
expand_more
A) Apple's creation of the iPod.
B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker.
D) Verizon's Web-based digital dashboard providing real-time company information for managers.
Answer:

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Q59

An example of a business using information systems for customer and supplier intimacy is:

Multiple Choice
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A) Apple's creation of the iPod.
B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.
C) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to become the world's largest auto maker.
D) Verizon's Web-based digital dashboard providing real-time company information for managers.
Answer:

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Q60

An information skill important for an accounting major would be:

Multiple Choice
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A) an understanding of system and network security issues.
B) an understanding of product management enterprise systems.
C) an understanding of supplier management enterprise systems.
D) an understanding of enterprise systems that enhance leadership.
Answer:

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Q61

An information skill important for a marketing major would be:

Multiple Choice
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A) an understanding of system and network security issues.
B) an understanding of product management enterprise systems.
C) an understanding of supplier management enterprise systems.
D) an understanding of enterprise systems that enhance leadership.
Answer:

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Q62

Maintaining the organization's financial records is a business function of:

Multiple Choice
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A) accounting.
B) finance
C) sales
D) marketing.
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Q63

Branding products is a business function of:

Multiple Choice
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A) manufacturing and production.
B) finance and accounting.
C) human resources.
D) marketing.
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Q64

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. This is an example of using information systems to support a business strategy of:

Multiple Choice
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A) new products, services, and business models.
B) survival.
C) customer and supplier intimacy.
D) improved decision making.
Answer:

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Q65

Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals.

Multiple Choice
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A) operations managers
B) senior managers
C) marketing managers
D) accounting managers
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Q66

Operations management as a discipline is directly relevant to three occupational categories:

Multiple Choice
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A) industrial production managers, operations analysts, and administrative service managers.
B) project managers, production managers, and administrative service managers.
C) project managers, production managers, and industrial production managers.
D) finance, accounting, and management.
Answer:

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Q67

Assume you work for a package delivery service in a major metropolitan area, and that the business has been losing customers for several years. You have been asked to find a solution to this problem, perhaps one which uses modern information technologies. What is the correct way to proceed?

Multiple Choice
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A) Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution.
B) Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution.
C) Identify the problem, design alternative solutions, choose the best solution, and then implement the solution.
D) Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution.
Answer:

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Q68

Which of the following statements is not true?

Multiple Choice
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A) The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work.
B) Inflation in Indian wages for technology work is leading to a counter movement of jobs back to the United States.
C) The fear that offshore outsourcing will reduce demand for new information system hires in the U.S. is mitigated by the fact that reduced IT expenditures results in increased IT investments and the creation of domestic jobs.
D) The impact of domestic IT outsourcing has been very disruptive to some regional areas of the U.S.
Answer:

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Q69

The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages. Based on your reading of Chapter 1, why is "culture" an important factor to consider when building information system solutions to business problems?

Multiple Choice
expand_more
A) Business culture has to be synchronized with new technology.
B) The business culture provides the vision and inspiration for information system solutions.
C) People are a company's most important asset.
D) Businesses without culture do not understand new technology.
Answer:

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Q70

Based on your reading of the case discussing mobile handhelds, Doylestown Hospital's use of iPhones is an example of using information systems to enhance which of the following generic business objectives?

Multiple Choice
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A) Survival
B) New products, services, and business models
C) Improved decision making
D) Customer and supplier intimacy
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Q71

________ is data that has been shaped into a form that is meaningful to human beings.

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Q72

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

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Q73

The world's largest and most widely used network is ________.

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Q74

________ consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.

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Q75

The ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format.

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Q76

________ are private corporate networks extended to authorized users outside the organization.

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Q77

In business problem solving, the three major categories of factors are organization, technology, and ________.

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Q78

Having inadequate resources is a business problem that falls into the ________ dimension.

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Q79

Encouraging employees to adapt to new business processes is one factor of ________.

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Q80

Being aware of organizational and personal limitations is one of the four elements of ________.

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Q81

Define operational excellence. How can information systems help achieve it?

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Q82

You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy?

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Q83

What important managerial function is impaired by not having access to timely and accurate information? What is the effect of this lack of data?

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Q84

What is the difference between information technology and information systems? Describe some of the functions of information systems.

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Q85

You are a marketing manager for a national movie theater chain. Give an example of data that your department could use for creating meaningful information. What type of information could that data produce?

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Q86

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

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Q87

Describe the four steps taken in solving a business problem.

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Q88

What are the three dimensions to business problems? Give an example of each.

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Q89

The department chain you work for has had numerous complaints about slow customer service. Your colleague, a sales manager, informs you that this happened at a previous store she worked for, and it was cleared up by hiring more sales representatives. Should you take her advice? Why not? What techniques can you use in evaluating the problem?

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Q90

Describe at least three of the general information skills essential for all business careers.

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