Test Bank for Essentials of MIS, 12th Edition

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1Essentials of MIS, 12e(Laudon)Chapter 1Business Information Systems in Your Career1) As discussed in the chapter opening case, the San Francisco Giants are taking advantage ofwireless technology to do which of the following?A) Improve decision makingB) Achieve operational excellenceC) Implement dynamic ticket pricingD) Perform data analysisE) Enhance fan experienceAnswer: EDifficulty: 3: ChallengingAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?2) Journalist Thomas Friedman's description of the world as "flat" refers to:A) the flattening of economic and cultural advantages of developed countries.B) the use of the Internet and technology for instantaneous communication.C) the reduction in travel times and the ubiquity of global exchange and travel.D) the growth of globalization.E) the increased use of global currencies.Answer: ADifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?3) The six important business objectives of information system investment include all of thefollowingexcept:A) competitive advantage.B) employee morale.C) improved decision making.D) survival.E) new products.Answer: BDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?

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24) A firm that invests in an information system because it is a necessity of doing business does sobecause it is seeking to achieve which of the following business objectives?A) SurvivalB) Improved decision makingC) Competitive advantageD) Operational excellenceE) Customer intimacyAnswer: ADifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?5) Walmart exemplifies the power of information systems coupled with excellent businesspractices and supportive management to achieve which of the following?A) New business modelsB) Operational efficiencyC) Customer intimacyD) Competitive advantageE) SurvivalAnswer: BDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.1: Why are information systems so essential for running and managing a business today?6) 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) competitive advantage.D) supplier intimacy.E) a new product.Answer: BDifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?7) Which business objective were competitors seeking when they rushed to provide ATMs aswell after Citibank introduced the first ATMs in New York?A) Improved efficiencyB) Customer and supplier intimacyC) SurvivalD) Competitive advantageE) Improved decision makingAnswer: CDifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?

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38) All of the following describe the effects of globalizationexcept:A) significant decreases in operating costs.B) reduction of labor costs through outsourcing.C) ability to find low-cost suppliers.D) increases in transaction costs.E) replication of business models in multiple countries.Answer: DDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.1: Why are information systems so essential for running and managing a business today?9) A firm that must invest in a new information system in order to comply with federallegislation is investing to achieve which of the following business objectives?A) Customer intimacyB) Operational excellenceC) New products.D) Improved decision makingE) SurvivalAnswer: EDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?10) Which of the following is an example of a business using information systems to create newproducts and services?A) Apple's creation of the iPadB) JC Penney's information system that allows its contract manufacturers to see what garmentshave been sold and need to be replacedC) The Mandarin Oriental's use of computers to keep track of guests' preferencesD) Verizon's web-based digital dashboard providing real-time company information formanagersE) Walmart's Retail Link's systemAnswer: ADifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?

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411) An example of a business using information systems for supplier intimacy is:A) Apple's creation of the iPad.B) JCPenney's information system that allows its contract manufacturers to see what garmentshave been sold and need to be replaced.C) Citibank's ATM system.D) Verizon's web-based digital dashboard providing real-time company information formanagers.E) the Mandarin Oriental's use of computers to keep track of guests' preferences.Answer: BDifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?12) To make sure they stock clothes that their customers will purchase, a department storeimplements a new application that analyzes spending levels at their stores and cross-referencesthis data to popular clothing styles. Which of the following business objectives is thisinformation intended to support?A) New productsB) SurvivalC) Customer intimacyD) Improved decision makingE) Operational excellenceAnswer: CDifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?13) Telepresence is an example of which of the following?A) Business intelligenceB) Social businessC) IoTD) Mobile digital platformE) Virtual meetingAnswer: EDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?

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514) The enormous volume of data generated by Internet activity, such as web traffic, email, andsocial media is referred to as:A) IoT.B) big data.C) the mobile digital platform.D) cloud computing.E) business intelligence.Answer: BDifficulty: 1: EasyAACSB: Analytical Thinking; Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?15) In 2015, what percent of Internet users will access the web through mobile devices?A) Less than 15 percentB) Around 25 percentC) 50 percentD) More than 60 percentE) More than 75 percentAnswer: DDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?16) What percent of U.S. businesses have some form of remote work program?A) 15 percentB) 25 percentC) 35 percentD) 55 percentE) 75 percentAnswer: DDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?17) All of the following are new technology-related trends in MISexcept:A) cloud computing.B) big data.C) IoT.D) the mobile digital platform.E) co-creation of business value.Answer: EDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?

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618) Which of the following statements isnottrue?A) In 2015, American businesses will invest nearly $600 billion in information systemshardware, software, and telecommunications equipment.B) In 2015, American businesses will spend $400 billion on business and managementconsulting and information technology services,C) In 2015, about 25 percent of all capital investment in the United States will be for informationsystems hardware, software, and telecommunications equipment.D) Expenditures in the United States for information systems are growing at a faster rate than theU.S. economy as a whole.E) Worldwide expenditures for information were around $1 trillion.Answer: EDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?19) Approximately how many adult Americans are online?A) 118 millionB) 170 millionC) 205 millionD) 220 millionE) 227 millionAnswer: EDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?20) What percent of theFortune 500companies uses Twitter to communicate with theircustomers?A) 20 percentB) 40 percentC) 50 percentD) 60 percentE) 80 percentAnswer: EDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?21) Purchase of information systems hardware, software, and telecommunications equipmentwill constitute more than half of all capital investment in the United States in 2015.Answer: FALSEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.1: Why are information systems so essential for running and managing a business today?

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722) A business model describes how a company produces, delivers, and sells a product or serviceto create wealth.Answer: TRUEDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?23) Federal law requires many businesses to keep email messages for five years.Answer: TRUEDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.1: Why are information systems so essential for running and managing a business today?24) Define operational excellence. How can information systems help achieve it?Answer: Operational excellence is the achievement of higher levels of productivity andefficiency. Information systems can help achieve operational excellence by improvingcommunications to suppliers and optimizing the supply chain. Information systems could helpmanagers communicate with workers more efficiently, enable technological innovation inproducts, minimize warehouse overhead, and streamline distribution.Difficulty: 2: ModerateAACSB: Information Technology; Written and Oral Communication; Reflective ThinkingLO: 1.1: Why are information systems so essential for running and managing a business today?25) You work for an auto manufacturer and distributor. How could you use information systemsto achieve greater customer intimacy?Answer: You could create a website that allows customers to customize cars, communicate withsupport personnel and other car owners. You could create an automated email service remindingcar owners to take their car in for periodic check-ups. You could have an information system thattracks customer preferences in local areas, so you can provide cars that reflect local customerneeds and desires.Difficulty: 2: ModerateAACSB: Application of Knowledge; Information Technology; Written and OralCommunicationLO: 1.1: Why are information systems so essential for running and managing a business today?

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826) Which of the following is the best definition of an information system?A) A set of interrelated components that collect (or retrieve), process, store, and distributeinformation to support decision making and control in an organizationB) Computers, keyboards, printers, and telecommunications devicesC) A set of detailed programmed instructions that transform raw data into informationD) Physical devices and software that can be connected to share voice, data, images, sound, andvideoE) A global network that uses universal standardsAnswer: ADifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?27) The three activities in an information system that produce the information organizations useto control operations are:A) information, research, and analysis.B) input, output, and feedback.C) input, processing, and output.D) data analysis, processing, and feedback.E) information, data, and processing.Answer: CDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?28) The average number of baseball tickets sold at a particular price is an example of:A) input.B) raw data.C) meaningful information.D) output.E) feedback.Answer: CDifficulty: 1: EasyAACSB: Analytical ThinkingLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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929) 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 themevaluate 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 itwill be used.E) is a stream of raw facts representing events occurring in organizations or the physicalenvironment.Answer: DDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?30) Converting raw data into a more meaningful form is called:A) capturing.B) processing.C) organizing.D) feedback.E) inputting.Answer: BDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?31) An example of raw data from an automobile manufacturer would be:A) an average of 130 Subarus sold daily in New York in 2015.B) 1,300 Subaru Outbacks sold during the first quarter 2015 in New York.C) 1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000.D) annual sales of Subaru Outbacks increased 4.5 percent.E) an average sale price of $26,000 for all Subaru Outbacks sold during January 2015 in MountKisco, New York.Answer: CDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1032) Which of the following fields deals with behavioral issues, as well as technical issuessurrounding the development, use, and impact of information systems used by managers andemployees in the firm?A) Information systems literacyB) Information systems architectureC) Management information systemsD) Information technology infrastructureE) Computer information systemsAnswer: CDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?33) All of the following are examples of environmental actors in an information systemexcept:A) customers.B) stockholders.C) feedback.D) competitors.E) regulatory agencies.Answer: CDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?34) In a hierarchical organization, the upper levels consist of:A) managerial, professional and knowledge workers.B) managerial, professional, and technical workers.C) professional and operational workers.D) managerial, professional, and operational workers.E) knowledge, technical and operational workers.Answer: BDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1135) The fundamental set of assumptions, values, and ways of doing things that has been acceptedby most of a company's members is called its:A) business process.B) environment.C) atmosphere.D) values.E) culture.Answer: EDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?36) All of the following can be considered managerial responsibilitiesexcept:A) making action plans to solve organizational problems.B) creating new products and services.C) designing new information systems.D) allocating human resources to coordinate the work to be done.E) setting strategy for responding to business challenges in the environment.Answer: CDifficulty: 2: ModerateAACSB: Analytical ThinkingLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?37) Data management technology consists of:A) the physical hardware and media used by an organization for storing data.B) the detailed, preprogrammed instructions that control and coordinate the computer hardwarecomponents 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.E) the universally accepted standards for storing data.Answer: CDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1238) Intranets:A) are based on mainframe technology.B) are multiple networks joined together.C) are typically used to communicate with the business's trusted vendors.D) use Internet technology for a private company network.E) provide the platform on which a firm builds its information systems.Answer: DDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?39) As described in the chapter case, which of the following constitutes an organizationalelement in the UPS tracking system?A) The specification of procedures for identifying packages with sender and recipientinformationB) Monitoring service levelsC) Promoting the company strategy of low-cost, superior serviceD) The use of handheld computers and networks for managing package deliveryE) Routing software that creates the most efficient delivery route for each driverAnswer: ADifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?40) As described in the chapter case, which of the following constitutes a managerial element ofthe UPS tracking system?A) The web-based Post Sales Order Management SystemB) The ability to provide package status reports to customersC) The decision to use automationD) The implementation of in-house package tracking softwareE) The ability to embed UPS functions in external sitesAnswer: CDifficulty: 3: ChallengingAACSB: Analytical Thinking; Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1341) Consider an information system in a moving company that analyzes travel patterns anddecides which routes are the most efficient for every van. The need for employees to followprocedures to update this system with arrival and departure times would be considered a(n)________ dimension of the system.A) organizationalB) managerialC) peopleD) technologyE) culturalAnswer: ADifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?42) The culture of UPS places service to the customer among the company's highest businessobjectives, which is reflected in their use of information systems to enable customer tracking oftheir packages. Based on your reading of Chapter 1, why is "culture" an important factor toconsider when building information system solutions to business problems?A) Culture is one element that can be radically changed, not always for the better, by newinformation systems.B) Culture affects how information system solutions are implemented and used.C) Culture is a cauldron of employee perspectives and conflicts, which can be used to improvebusiness processes.D) Culture is the driving force behind decision making and innovation.E) Culture is the basis for organizational politics.Answer: BDifficulty: 3: ChallengingAACSB: Analytical Thinking; Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?43) Which of the following is a global network that uses universal standards to connect millionsof different networks around the world?A) An extranetB) The World Wide WebC) The InternetD) An intranetE) VerizonAnswer: CDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1444) ________ consists of detailed, preprogrammed instructions that control and coordinate thecomputer hardware components in an information system.A) SoftwareB) ProgrammingC) Enterprise applicationsD) Business intelligenceE) Data management technologyAnswer: ADifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?45) ________ is a service provided by the Internet that uses universally accepted standards forstoring, retrieving, formatting, and displaying information in a page format.A) FTPB) EmailC) The World Wide WebD) HTMLE) An extranetAnswer: CDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?46) Information systems consist of all the hardware and software that a firm needs to use in orderto achieve its business objectives.Answer: FALSEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?47) An extranet is a private intranet extended to authorized users outside the organization.Answer: TRUEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1548) Information systems literacy describes the behavioral approach to information systems, whilecomputer literacy describes the technical approach.Answer: FALSEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?49) People, organizations, and information technology are all dimensions of informationsystems.Answer: TRUEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?50) In order to understand how a specific business firm uses information systems, you need toknow something about the history and culture of the company.Answer: TRUEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?51) Developing a new product, fulfilling an order, and hiring a new employee are all examples ofbusiness processes.Answer: TRUEDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?52) Business processes are those logically related tasks for accomplishing tasks that have beenformally encoded by an organization.Answer: FALSEDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?53) Employee attitudes about their jobs, employers, or technology can have a powerful effect ontheir abilities to use information systems productively.Answer: TRUEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1654) A network requires at least three computers and a shared resource.Answer: FALSEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?55) A firm's IT infrastructure provides the platformon which the firm can build its informationsystems.Answer: TRUEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?56) According to the chapter case, UPS's use of web-based tools that allow customers to embedUPS functions, such as tracking and cost calculations, into their own websites, was aninformation systems solution used to achieve customer intimacy.Answer: TRUEDifficulty: 3: ChallengingAACSB: Analytical Thinking; Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?57) Data is information that has been shaped into a form that is meaningful to human beings.Answer: FALSEDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?58) Feedback is output returned to appropriate members of the organization to help themevaluate or correct the input stage.Answer: TRUEDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?59) Intranets are private corporate networks extended to authorized users outside theorganization.Answer: FALSEDifficulty: 1: EasyAACSB: Information TechnologyLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1760) What important managerial function is impaired by not having access to timely and accurateinformation? What is the effect of this lack of data?Answer: The managerial function is decision making. Without access to timely and accurateinformation, business managers rely on forecasts, best guesses, and luck. The result is over- orunder-production of goods and services, misallocation of resources, and poor response times.The potential poor outcomes can raise costs, and the company can lose customers.Difficulty: 2: ModerateAACSB: Analytical Thinking; Information Technology; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?61) Describe the people dimension of information systems and give an example. Is thisdimension as vital as the technology dimension when considering a technology-based solution toa business problem?Answer: The people dimension describes all of the factors related to employees, fromoperational personnel to senior management. Essentially, an organization and its informationsystems are worthless without skilled employees. For example, a people dimension ofimplementing a new information system is ensuring users are properly trained to use the system.The people dimension is just as vital as the other dimensions - the success of an informationsystem depends on the people implementing and operating it. In addition, as a resource,employees are expensive to hire, manage, and train, whereas technology and hardware can berelatively inexpensive.Difficulty: 2: ModerateAACSB: Reflective Thinking; Information Technology; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?62) You are a marketing manager for a national movie theater chain. Give an example of datathat your department could use for creating meaningful information. What type of informationcould that data produce?Answer: Movie ticket sales from individual theaters would be an example of raw data.Meaningful information from this would be: average number of tickets sold to seniors on certaindays of the week.Difficulty: 1: EasyAACSB: Application of Knowledge; Information Technology; Written and OralCommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1863) Define business process. What might be a business process used at a hospital?Answer: A business process is a set of logically related tasks and behaviors for accomplishingwork. Hiring a new employee, customer intake, and filing medical records are examples ofbusiness processes at a hospital.Difficulty: 2: ModerateAACSB: Reflective Thinking; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?64) What is the difference between information technology and information systems?Answer: Information technology (IT) consists of all the hardware and software that a firm needsto use to achieve its business objectives. Information systems are more complex. An informationsystem can be defined technically as a set of interrelated components that collect (or retrieve),process, store, and distribute information to support decision making and control in anorganization.Difficulty: 2: ModerateAACSB: Application of Knowledge; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?65) This chapter discusses how each organization has its own culture and sets of values sharedby most of its members. What kind of shared values might you find at a law firm?Answer: Shared values at a law firm might be: The legal system works, the legal system is fair,lawyers help people, and people need help with the legal system because it is complicated.Difficulty: 2: ModerateAACSB: Analytical Thinking; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?66) Why is the building of a house an appropriate analogy for the building of an informationsystem?Answer: Houses are built with hammers, nails, and wood, but these alone do not make a house.The architecture, design, setting, landscaping, and all of the decisions that lead to the creation ofthese features are part of the house and are crucial for solving the problem of putting a roof overone's head. Computers and programs are the hammer, nails, and lumber of computer-basedinformation systems, but alone they cannot produce the information a particular organizationneeds. To understand information systems, you must understand the problems they are designedto solve, their architectural and design elements, and the organizational processes that lead tothese solutions.Difficulty: 3: ChallengingAACSB: Analytical Thinking; Written and Oral CommunicationLO: 1.2: What exactly is an information system? How does it work? What are its people,organizational, and technology components?

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1967) A database into which employees manually input customer names and addresses is riddledwith errors and you have been charged with rectifying the situation. In considering theorganizational dimensions of this problem, you should consider:A) the skill levels of the employees inputting the data.B) the training given to the employees inputting the data.C) the business processes in place governing the manual input of the data.D) the types of automatic error checking provided by the input software.E) the storage capacity of the database.Answer: CDifficulty: 2: ModerateAACSB: Application of Knowledge; Information TechnologyLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?68) The first step in the model of business problem solving discussed in the chapter is:A) interviewing the people involved in the problem.B) identifying the problem.C) outlining the problem's causes.D) assigning the problem to a problem solver.E) evaluating possible solutions to the problem.Answer: BDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?69) Inadequate database capacity is an example of the ________ dimension of businessproblems.A) technologyB) organizationalC) peopleD) managementE) culturalAnswer: ADifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2070) Legal compliance is an example of the ________ dimension of business problems.A) managementB) organizationalC) peopleD) technologyE) culturalAnswer: CDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?71) You are a new manager at a plumbing supply manufacturer where there are an unusuallyhigh number of returns for a new aerator used in the production of high-end faucets. Inexamining the problem you determine that the primary cause is the improperly designed die castfor the aerator. Which dimension of a business problem does this reflect?A) PeopleB) TechnologyC) ManagementD) OrganizationalE) CulturalAnswer: ADifficulty: 3: ChallengingAACSB: Application of Knowledge; Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?72) Poor business processes are an example of the ________ dimension of business problems.A) managementB) organizationalC) peopleD) infrastructureE) culturalAnswer: BDifficulty: 2: ModerateAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2173) The owners of Speed-EZ, a new bike messenger service, are concerned about how they willmanage their messengers once the messengers have left the office. This is a business problemthat falls into the:A) management dimension.B) people dimension.C) organizational dimension.D) technology dimension.E) cultural dimension.Answer: BDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?74) Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is abusiness problem that falls into the:A) management dimension.B) people dimension.C) organizational dimension.D) technical dimension.E) cultural dimension.Answer: CDifficulty: 3: ChallengingAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?75) In choosing the best solution for a business problem, all of the following are importantconsiderationsexcept:A) the cost of the solution.B) the feasibility of the solution given existing resources and skills.C) the length of time to implement the solution.D) the attitudes of employees.E) the ability to forget about the problem once it has been solved.Answer: EDifficulty: 3: ChallengingAACSB: Reflective ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2276) The final step in the four-step model of business problem solving is:A) outcome.B) implementation.C) change management.D) feedback.E) employee re-training.Answer: BDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?77) Which of the following wouldnotbe considered part of the implementation phase ofproblem solving?A) Change managementB) Purchasing hardware for an information systems solutionC) Training an employee on new systems softwareD) Evaluating a selection of software packages for implementing a new business processE) Determining the attitude of employees about the solution.Answer: DDifficulty: 2: ModerateAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?78) The failure of NASA's initial solution to preventing the space shuttle shedding foamillustrates: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.E) the importance of organizational change in problem solving.Answer: CDifficulty: 2: ModerateAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2379) Perhaps the most frequent error in problem solving is:A) rushing to judgment about the nature of a problem.B) not being aware of personal limitations.C) being too doubtful.D) following a rote pattern of decision making.E) failing to consider all dimensions of a problem.Answer: ADifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?80) Assume you work for a package delivery service in a major metropolitan area and that thebusiness has been losing customers for several years. You have been asked to find a solution tothis problem. What is the correct way to proceed?A) Look for solutions, evaluate the solutions, identify the problem more clearly, and thenimplement the solution.B) Think about what solutions can be implemented, look for solution designs, evaluate thedesigns, and then implement the solution.C) Identify the problem, design alternative solutions, choose the best solution, and thenimplement the solution.D) Design solutions, evaluate and identify the problems, choose the best solution, and thenimplement the solution.E) Identify relevant information technologies, interview employees, choose a technology, andimplement the technology.Answer: CDifficulty: 2: ModerateAACSB: Analytical Thinking; Application of Knowledge; Information TechnologyLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?81) Which are the three major dimensions of business problem solving?A) Organizational dimensions, people dimensions, and technology dimensionB) Organizational dimensions, people dimensions, and environmental dimensionsC) People dimensions, technology dimensions, and environmental dimensionsD) Technology dimensions, organizational dimensions, and environmental dimensionsE) Organizational dimensions, technology dimensions, and cultural dimensionsAnswer: ADifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2482) Identifying a problem includes agreeing that a problem exists.Answer: TRUEDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?83) Political conflict is an example of the people dimension of business problems.Answer: FALSEDifficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?84) Encouraging employees to adapt to new business processes is an important factor in changemanagement.Answer: TRUEDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?85) Describe the four steps taken in solving a business problem.Answer: The four steps are problem identification, solution design, choice of a solution, andimplementation. In the problem identification step, relevant people in an organization must agreethat a problem exists, what the problem is, what its causes are, and what can be done about theproblem given the organization's resources. In the solution design step, as many solutions aspossible should be determined. In the choicestep, you choose the best solution from the list ofoptions determined in the previous step. It is important to match a choice to existing resources,skills, and feasibility. In the last step, implementation, the solution is put in place. In informationsystems solutions, this may include purchasing hardware or software and testing it.Implementation also includes employee training, change management, and using a method tomeasure the outcome.Difficulty: 2: ModerateAACSB: Analytical Thinking; Written and Oral CommunicationLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2586) What are the three dimensions of business problems? Give an example of each.Answer: The three dimensions to business problems are:(1) Organizational: This may include outdated business processes, unsupportive culture andattitudes, political conflict, turbulent business environment and change, complexity of task,inadequate resources.(2) Technology: This may include insufficient or aging hardware, outdated software, inadequatedata management, insufficient telecommunications capacity, incompatibility of old systems withnew technology, and rapid technological change.(3) People: This may include lack of employee training, difficulties in evaluation performance,legal and regulatory compliance, work environment, lack of employee support and participation,indecisive management, or poor management.Difficulty: 2: ModerateAACSB: Analytical ThinkingLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?87) The department chain you work for has had numerous complaints about slow customerservice. Your colleague, a sales manager, informs you that this happened at a previous store sheworked for, and it was cleared up by hiring more sales representatives. Should you take heradvice? Why or why not? What techniques can you use in evaluating the problem?Answer: The advice should not be taken, as it is a rush to judgment, which could mean that thewrong solution is used, wasting time and resources. You should ask the colleague to employcritical thinking. Critical thinking is sustained suspension of judgment with an awareness ofmultiple perspectives and alternatives. It involves at least four elements:•Maintaining doubt and suspending judgment•Being aware of different perspectives•Testing alternatives and letting experience guide•Being aware of organizational and personal limitationsDifficulty: 3: ChallengingAACSB: Interpersonal Relations and TeamworkLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?

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2688) How does critical thinking relate to the problem-solving process?Answer: Simply following a rote pattern of decision making, or a model, does not guarantee acorrect solution. The best protection against incorrect results is to engage in critical thinkingthroughout the problem-solving process.Perhaps the most frequent error in problem solving is to arrive prematurely at a judgment aboutthe nature of the problem. By doubting all solutions at first and refusing to rush to a judgment,you create the necessary mental conditions to take a fresh, creative look at problems and youkeep open the chance to make a creative contribution.Second, it is important to recognize that all interesting business problems have many dimensionsand that the same problem can be viewed from different perspectives such as the technologyperspective, the organization perspective, and the people perspective.The third element of critical thinking involves testing alternatives, or modeling solutions toproblems, and letting experience be the guide. Not all contingencies can be known in advanceand much can be learned through experience. Therefore, it is important to experiment, gatherdata and reassess the problem periodically.Difficulty: 3: ChallengingAACSB: Application of KnowledgeLO: 1.3: How will a four-step method for business problem solving help you solve informationsystem-related problems?89) Which of the following is an important skill for an accounting major?A) An understanding of online transaction and reporting systemsB) An understanding of product management enterprise systemsC) An understanding of supplier management enterprise systemsD) An understanding of enterprise systems that enhance leadershipE) An understanding of enterprise systems for customer relationship managementAnswer: ADifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?90) Which of the following is an important skill for a marketing major?A) An understanding of online transaction and reporting systemsB) An understanding of product management enterprise systemsC) An understanding of supplier management enterprise systemsD) An understanding of enterprise systems that enhance leadershipE) An understanding of financial reporting systemsAnswer: BDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?

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2791) What is the estimated growth rate for information systems managers' jobs through 2020?A) -10%B) -1%C) 15%D) 5%E) 45%Answer: CDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?92) Financial managers work directly with ________ to ensure investments in informationsystems help achieve corporate goals.A) operations managersB) senior managersC) marketing managersD) accounting managersE) knowledge workersAnswer: BDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?93) Which of the following statements isnottrue?A) The most common and successful offshore outsourcing projects involve productionprogramming 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 some ITjobs back to the United States.C) The fear that offshore outsourcing will reduce demand for new information system hires inthe United States is mitigated by the fact that reduced IT expenditures results in increased ITinvestments and the creation of domestic jobs.D) The impact of domestic IT outsourcing has been very disruptive to some regional areas of theUnited States.E) Management and organizational tasks required in systems development usually are notoutsourced.Answer: DDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?

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2894) As a result of new public laws, accountants are beginning to perform more technical duties,such as auditing systems and networks.Answer: TRUEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?95) IT managerial jobs are outsourced easily because of the universal standards used by theInternet.Answer: FALSEDifficulty: 2: ModerateAACSB: Analytical Thinking; Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?96) An understanding of enterprise-wide systems for customer relationship management is oneof the skills relevant to careers in marketing.Answer: TRUEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?97) Whereas marketing and financial careers have been transformed by the growth ininformation systems, thus far the job of management has remained relatively unaffected.Answer: FALSEDifficulty: 2: ModerateAACSB: Information TechnologyLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?98) There are two types of outsourcing: offshore outsourcing and foreign outsourcing.Answer: FALSEDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?

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2999) Describe at least three of the general information skills essential for all business careers.Answer: General information skills essential for all business careers include (1) understandinghow information systems and technologies can help firms achieve business objectives such asoperational efficiency, developing new products and services, and maintaining customerintimacy. Also essential is (2) understanding the central role of databases in a modern firm aswell as (3) developing skills in the analysis of information in order to help firms understand andmake sense out of their environments. (4) All business majors need to be able to work withspecialists and system designers who build and implement information systems. This isnecessary to ensure that the systems that are built actually service business purposes and providethe information and understanding required by managers and employees. In addition, studentsneed to (5) understand how information systems work in relation to social and community issues,including ethical issues and how systems must meet requirements for reporting to governmentregulators and the public.Difficulty: 3: ChallengingAACSB: Application of Knowledge; Written and Oral CommunicationLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?100) What kinds of jobs are not likely to be outsourced and why?Answer: Jobs involved with the creation of innovative new products, services, and systems arerarely outsourced either domestically or globally. The advantage of low-wage countries is theirlow wages, not their keen sense of new products, services, and technologies for the United Statesmarket. Software design and new programming efforts are also rarely outsourced because oftheir strategic importance to firms and because domestic software designers are much closer tothe American marketplace and customer base.Difficulty: 3: ChallengingAACSB: Application of Knowledge; Written and Oral CommunicationLO: 1.4: How will information systems affect business careers, and what information systemsskills and knowledge are essential?

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1Essentials of MIS, 12e(Laudon)Chapter 2Global E-Business and Collaboration1) Suppliers, customers, employees, products and services, and ________ are the five basiccomponents with which businesses must deal.A) the environmentB) manufacturing and productionC) sales and marketingD) invoices and paymentsE) technologyAnswer: DDifficulty: 2: ModerateAACSB: Application of KnowledgeLO: 2.1: What major features of a business are important for understanding the role ofinformation systems?2) Producing a bill of materials is a responsibility of the ________ function.A) finance and accountingB) human resourcesC) manufacturing and productionD) sales and marketingE) technologyAnswer: CDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 2.1: What major features of a business are important for understanding the role ofinformation systems?3) Identifying potential customers for the businesses' products or services is an activityassociated with the ________ function.A) finance and accountingB) human resourcesC) manufacturing and productionD) technologyE) sales and marketingAnswer: EDifficulty: 1: EasyAACSB: Application of KnowledgeLO: 2.1: What major features of a business are important for understanding the role ofinformation systems?

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