Midterm for Information System

MIS EXAM – QUESTIONS 1) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Answer: True False 2) A fully digital firm produces only digital goods or services. Answer: True False 3) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: True False 4) 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: True False 5) Computers are only part of an information system. Answer: True False 6) The dimensions of information systems are management, organizations, and information technology. Answer: True False 7) 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 False 8) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: True False ) A substantial part of management responsibility is creative work driven by new knowledge and information. Answer: True False 10) Intranets allow firms to work easily with third-party suppliers and vendors. Answer: True False 11) An IT infrastructure provides the platform on which the firm can build its information systems. Answer: True False 12) 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 13) 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 tim e? A) 1 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3 Answer: D 14) 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 advantageAnswer: C 15) 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 16) 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 activiti es for which it will be used. Answer: D 17) Converting raw data into a more meaningful form is called A) capturing. B) processing. C) organizing. D) feedback. Answer: B 18) 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 19) 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 20) 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 21) From a business perspective, raw data is transform ed 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 22) 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 23) 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 knowledgeAnswer: A 25) 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 25) 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 6) Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information. Answer: True False 27) You would use an MIS to help decide whether to introduce a new product line. Answer: True False 28) Transaction processing systems are most commonly used by the senior management level of an organization. Answer: True False 29) A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Answer: True False 0) Management information systems typically support nonroutine decision making. Answer: True False 31) Functional systems tha t support business processes within a single functional group, such as human resources, are being phased out in favor of cross-functional systems. Answer: True False 32) Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment. Answer: True False 33) Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.Answer: True False 34) Decision-support systems use internal information as well as information from external sources. Answer: True False 35) ESSs are designed to serve the middle management of the organization. Answer: True False 36) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS. Answer: True False 37) Enterprise systems often include transactions with customers and vendors. Answer: True False 38) Supply chain management systems are more externally oriented than enterpri se systems.Answer: True False 39) 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 40) 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 41) 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 2) 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 43) 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 44) 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 45) The term â€Å"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 46) 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) ESSD) DSS Answer: D 47)________ 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-su pport D) Knowledge management Answer: C 48) 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 49) ESS are specifically designed to serve which level of the organization? A) operational B) end-user C) middle managementD) senior management Answer: D 50) 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 51) 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 52) 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 53) ________ 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 54) Enterprise systems are also known as ________ systems. A) resource planning B) enterprise resource planning C) enterprise supportD)management information Answer: B 55) ________ systems are designed to help firms manage their relationships with their customers. A) CRM B) MIS C) CLE D) CLU Answer: A 56) 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 57) 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 8) 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 59) 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 capabilitiesC) a TPS with KMS capabilities D) a CRM Answer: B 60) 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 nee d 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 1) The interaction between information systems and organizations is influenced A) primarily by the decision making of middle- and senior-managers. B) by many factors, including structure, politics, culture, and environment. C) by two main microeconomic forces: capital and labor. D) primarily by the organization's business processes and culture. Answer: B 62) An organization is a A) stable, formal social structure that takes resources from the environment and processes them to produce outputs. B) formal, legal entity with internal rules and procedures that must abide by laws. C) collection of social elements.D) B and C E) A, B, and C Answer: E 63) How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It sees the inputs and outputs, labor and capital, as being infinitely malleable. D) It sees the organization as a social structure similar to a machine. Answer: C 64) All of the following are major features of organizations that impact the use of information systems EXCEPT for A) business processesB) environments C) goals D) agency costs Answer: D 65) Business processes are collections of A) informal practices and behaviors. B) formalized and documented practices. C) routines. D) rights and privileges. Answer: C 66) The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as A) switching costs. B) transaction costs. C) procurement. D) agency costs. Answer: B 67) Which of the following statements is NOT true about information technology's impacts on business firms? A) It hel ps firms expand in size.B) It helps firms lower the cost of market participation. C) It helps reduce internal management costs. D) It helps reduce transaction costs. Answer: A 68) According to agency theory, the firm is viewed as a(n) A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) â€Å"nexus of contracts† among self-interested individuals. Answer: D 69) The ________ model is used to describe the interaction of external forces that affect an organization's strategy and ability to compete.A) network economics B) competitive forces C) competitive advantage D) demand control Answer: B 70) Which of the following industries has a low barrier to entry? A) automotive B) computer chip C) restaurant D) airline Answer: C 71) Which of the following is NOT one of the competitive forces? A) suppliers B) other competitors C) external environment D) customers Answer: C 72) A manufacturer of deep-sea oil rigs may be least concerned about this marketplace force. A) product differentiation B) traditional competitors C) low number of suppliers D) new market entrants Answer: D 3) A firm can exercise greater control over its suppliers by having A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers. Answer: A 74) The four major types of competitive strategy are A) low-cost leadership; substitute products and services; customers; and suppliers. B) low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. C) new market entrants; substitute products and services; customers; and suppliers. D) low-cost leadership; new market entrants; product differentiation; and focus on market niche.Answer: B 75) When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. A) product differentiation B) market niche C) mass customization D) proc ess efficiency Answer: B 76) ________ is the ability to offer individually tailored products or services using the same production resources as bulk production. A) Mass customization B) Size customization C) Magnitude customization D) Dimension customization Answer: A 77) Hilton Hotels' use of customer information software to identify the most rofitable customers to direct services to is an example of using information systems to A) strengthen customer intimacy. B) differentiate their service. C) focus on market niche. D) increase efficiency. Answer: C 78) An information system can enable a company to focus on a market niche through A) complex trend forecasting. B) tailoring products to the client. C) intensive product trend analysis. D) intensive customer data analysis. Answer: D 79) Upon which of the following industries has the Internet as a whole been a disruptive technology? A) bill payments B) air travelC) books D) real estate Answer: B 80) Internet technology A) makes it easy for rivals to compete on price alone. B) imposes a significant cost of entry, due to infrastructure requirements. C) increases the difference between competitors because of the wide availability of information. D) makes it easy to sustain operational advantages. Answer: A 81) The Internet raises the bargaining power of customers by A) creating new opportunities for building loyal customer bases. B) making more products available. C) making information available to everyone. D) lowering transaction costs.Answer: C 82) A virtual company A) uses the capabilities of other companies without being physically tied to those companies. B) uses Internet technology to maintain a virtual storefront. C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services, or virtual products. Answer: A 83) The four key technical trends responsible for current ethical stresses related to information technology are (1) doubling of computer power every 18 months, (2) data analysis advances, (3) declining data storage costs, and (4) ________.A) advances in wireless networking B) international standards for data protection C) networking advances and the Internet D) increased ease in file sharing and copying Answer: C 84) The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called A) profiling. B) phishing. C) spamming. D) targeting. Answer: A 85) Accepting the potential costs, duties, and obligations for the decisions you make is referred to as A) responsibility. B) accountability. C) liability. D) due process. Answer: A 6) The feature of political systems in which a body of laws is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations is referred to as A) accountability. B) responsibility. C) due process. D) liability. Answer: D 87) The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called A) due process. B) accountability. C) the courts of appeal. D) the judicial system. Answer: B 88) Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue?A) Assign responsibility. B) Identify the stakeholders. C) Identify the options you can reasonably take. D) Identify and clearly describe the facts. Answer: A 89) The ethical â€Å"no free lunch† rule states that A) if an action cannot be taken repeatedly, then it is not right to be taken at any time. B) one should take the action that produces the least harm or incurs the least cost. C) one can put values in rank order and understand the consequences of various courses of action. D) everything is owned by someone else, and that the creator wants compensation for this work. Answer: D 0) European privacy protection is ________ than in the United States. A) less far-reaching B) less liable to laws C) much less stringent D) much more stringent Answer: D 91) The Internet has made the protection of intellectual property A) more difficult, because of the lack of enforcable regulations. B) easier, because of the proliferation of creative and professional software. C) more difficult, because of the ease of copying and transmitting digitized media. D) easier, because of the ability to track user behavior and visits to Web sites and file-sharing services.Answer: C 92) When a cookie is created during a Web site visit, it is stored A) on the Web site computer. B) on the visitor's computer. C) on the ISP's computer. D) in a Web directory. Answer: B 93) The Online Privacy Alliance A) encourages self-regulation to develop a set of privacy guidelines for its members. B) protects user privacy during interactions with Web sites. C) has established technical guidelines for ensuring privacy. D) is a government agency regulating the use of customer information. Answer: A 4) Intellectual property can b est be described as A) intangible property created by individuals or corporations. B) the expression of an intangible idea. C) unique creative work or ideas. D) tangible or intangible property created from a unique idea. Answer: A 95) A limitation of trade secret protection for software is that A) it does not protect against copying the underlying ideas behind the software. B) it is difficult to compare one piece of software to another. C) it is difficult to prevent the ideas in the work from falling into the public domain.D) few software programs contain truly unique elements. Answer: C 96) The strength of patent protection is that it A) puts the strength of law behind copyright. B) allows protection from Internet theft of ideas put forth publicly. C) is easy to define. D) grants a monopoly on underlying concepts and ideas. Answer: D 97) One of the difficulties of patent protection is A) that only the underlying ideas are protected. B) digital media cannot be patented. C) preventin g the ideas from falling into public domain. D) the years of waiting to receive it. Answer: D 8) In general, it is very difficult to hold software producers liable for their software products when those products are considered to be A) part of a machine. B) similar to books. C) services. D) artistic expressions. Answer: B 99) The most common source of business system failure is A) software bugs. B) software errors. C) hardware or facilities failures. D) data quality. Answer: D 100) Two of the three principal sources of poor system performance are A) software bugs and errors and outdated standards. B) hardware or facility failures and malware.C) hardware or facility failures and poor input data quality. D) poor input data quality and insufficient integration with legacy systems. Answer: C 101) The practice of spamming has been growing because A) telephone solicitation is no longer legal. B) it is good advertising practice and brings in many new customers. C) it helps pay for the Inte rnet. D) it is so inexpensive and can reach so many people. Answer: D 102) Which of the five moral dimensions of the information age does spamming raise? A) quality of life B) system quality C) accountability and control D) information rights and obligations Answer: A