Management information systems managing the digital firm sixth canadian edition 6th edition laudon test bank

Management Information Systems, Cdn. 6e (Laudon et al.)
Chapter 2 How Businesses Use Information Systems
1) Operational management is responsible for directing the day-to-day operations of the business and
therefore needs transaction-level information.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 36
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
2) Deciding whether to introduce a new product line is the responsibility of an operational manager.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
3) Business processes refer to the manner in which work is organized, coordinated, and focused to
produce a valuable product or service.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 33
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
4) The performance of a business firm depends on how well its business processes are designed and
coordinated.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 33
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
5) Information systems automate many steps in business processes that were already automated.
Answer: FALSE

Diff: 2 Type: TF Page Ref: 35
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
6) Ordering a book online from Chapters.Indigo.ca or downloading a music track from iTunes are
entirely new business processes based on old business models.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 35
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
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7) Functional systems that operate independently of each other are becoming a thing of the future
because they cannot easily share information to support cross-functional business processes.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 35
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
8) Operational management, middle management, and senior management each use a specific type of
system to support the decisions they must make to run the company.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 36
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
9) At the operational level, tasks, resources, and goals are predefined and highly unstructured.

Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
10) Managers need TPS to monitor the status of internal operations and the firm's relations with the
external environment.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 36
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
11) Transaction processing systems are often so central to a business that TPS failure for a few hours
can lead to a firm's demise and perhaps that of other firms linked to it.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 37
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
12) Middle management needs systems to help with monitoring, controlling, decision making, and
administrative activities.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 37
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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13) Sometimes you will hear TPS referred to as business intelligence systems because they focus on
helping users make better business decisions.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 37
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
14) Digital dashboards are becoming an increasingly popular feature of DSS.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 38
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
15) Information that was previously fragmented in different systems can be easily shared across the firm
to help different parts of the business work more closely together.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
16) Enterprise systems integrate the key business processes of an entire firm into a single software
system that enables information to flow seamlessly throughout the organization.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 42
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
17) Supply chain management (SCM) systems help businesses manage relationships with their
customers.

Answer: FALSE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
18) Customer relationship management (CRM) systems help firms manage their relationships with their
customers.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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19) SCM systems consolidate and integrate customer information from multiple communication
channels.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
20) Transaction processing systems (TPS) enable organizations to better manage processes for capturing
and applying knowledge and expertise.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management
21) Knowledge management systems (KMS) also link the firm to external sources of knowledge.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
22) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as
processes for creating new knowledge and integrating it into the organization.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
23) DSS applications create deep-seated changes in the way the firm conducts its business, and they are
often costly to implement.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
24) Intranets and extranets are really more technology platforms than specific applications.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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25) An intranet typically centres on a portal that provides a single point of access to information from
several different systems and to documents using a Web interface.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 43
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
26) End users are representatives of departments outside the information systems group for whom
applications are developed.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 55
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
27) Transaction processing systems are most commonly used by the senior management level of an
organization.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
28) A transaction processing system is a computerized system that performs and records the daily
routine transactions necessary to conduct business.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

29) A hotel reservation system is a typical example of a management information system.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
30) Management information systems typically support non-routine decision making.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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31) Enrolling employees in benefits plans is a business process handled by the finance and accounting
function.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 34
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
32) Functional systems that support business processes within a single functional group, such as human
resources, are being phased out in favour of cross-functional systems.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 35
AACSB: Use of information technology
CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management
33) Managers need TPSs to monitor the status of internal operations and the firm's relations with the
external environment.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
34) Most MISs use sophisticated mathematical models or statistical techniques.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 37
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
35) Decision-support systems help managers make decisions that are unique, rapidly changing, and not
easily specified in advance.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 38
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
36) Decision-support systems use internal information as well as information from external sources.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 38
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

6
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37) ESSs are designed to serve the middle management of the organization.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
38) ESSs are designed to incorporate data about external events, but they also draw summarized
information from internal MIS and DSS.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
39) ESSs are designed primarily to solve specific problems.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
40) Information supplied by an enterprise system is structured around cross-functional business
processes.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 42
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
41) Enterprise systems often include transactions with customers and vendors.
Answer: TRUE

Diff: 2 Type: TF Page Ref: 42
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
42) Supply chain management systems are more externally oriented than enterprise systems.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 42
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management

7
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43) Maintaining online directories of employees with special areas of expertise is one application of
knowledge management systems.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 45
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.3 Systems That Span The Enterprise
44) CN reduced costs and improved customer service significantly because it had learned how to apply
new technology to improve the processes involved in intermodal transfers.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 32
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
45) The sales and marketing function is responsible for selling the product.

Answer: TRUE
Diff: 2 Type: TF Page Ref: 34
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
46) The sales and marketing function is responsible for assembling the product.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 34
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
47) System outputs do not include online and hard-copy reports for management and employee
paycheques.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
48) Toronto-based Dundas Data Visualization's digital dashboard delivers comprehensive and accurate
information for decision making.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 40
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

8
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49) A point-of-sale system captures purchase and payment data at a physical location where goods or
services are bought and sold using computers, automated cash registers, scanners, or other digital
devices.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 41
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
50) Enterprise applications automate processes that do not span multiple business functions and
organizational levels and may extend outside the organization.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 42
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
51) Canadian Tire uses an extranet to communicate between the home office and its associate
dealerships to broadcast information, saving the company potentially millions of pieces of paper
formerly used for this type of communication.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 44
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
52) The Internet has become a powerful tool for instantly mobilizing interest groups for political action
and fundraising.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 44
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

53) "Interaction" jobs tend to be professional jobs in the service sector that require close coordination
and collaboration.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 45
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage
54) People working together can complete a complex task faster than the same number of people
working in isolation from one another.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 47
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage
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55) People working collaboratively in groups can come up with less innovative ideas for products,
services, and administration than the same number working in isolation from one another.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 47
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage
56) Identifying customers is a responsibility of the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing

Answer: D
Diff: 1 Type: MC Page Ref: 34
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
57) Producing bills of materials is a business process within the ________ function.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
Answer: C
Diff: 1 Type: MC Page Ref: 34
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.1 Business Processes and Information Systems
58) 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
Diff: 2 Type: MC Page Ref: 35
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.1 Business Processes and Information Systems

10
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59) 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
Diff: 2 Type: MC Page Ref: 36
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
60) 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
Diff: 2 Type: MC Page Ref: 36
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
61) 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
Diff: 2 Type: MC Page Ref: 37

AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
62) 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
Diff: 3 Type: MC Page Ref: 37
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management

11
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63) The term "management information systems" designates a specific category of information systems
serving:
A) integrated data processing throughout the firm.
B) transaction process reporting.
C) employees with online access to historical records.
D) middle management functions.
Answer: D
Diff: 1 Type: MC Page Ref: 37
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

64) Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to
which type of system?
A) MIS
B) TPS
C) ESS
D) DSS
Answer: D
Diff: 2 Type: MC Page Ref: 38
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
65) John has worked in the marketing department of a computer supplier for five years. He obtains
information on marketing decisions from a system that handles only marketing data for the firm. John is
using which kind of system?
A) MIS
B) DSS
C) cross-functional
D) functional
Answer: D
Diff: 2 Type: MC Page Ref: 35
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
66) Mary has some decisions to make in regards to pricing her candy products. She is wondering what
the effect will be on sales if she raises the price by 10 percent and reduces the amount of grams in the
candy bags by 2 percent. Mary should use what kind of information system to help her make this
decision?
A) MIS
B) DSS
C) cross-functional

D) functional
Answer: B
Diff: 2 Type: MC Page Ref: 38
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
12
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67) Richard has started a new food business. He will have about 300 customers per day and receive
supplies from 50 suppliers per month. In order to keep track of all of these various business transactions,
he needs a system. What kind of system should Richard install?
A) MIS
B) DSS
C) cross-functional
D) TPS
Answer: D
Diff: 2 Type: MC Page Ref: 36
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
68) Donna works for a national pizza company in Calgary. They have over 100 stores across Canada.
Every week they receive all the sales and cost data from all their stores. This data is processed and
aggregated on a weekly basis. Then reports are given to Donna so that she can analyze the performance
of the business. What kind of system is Donna using?
A) MIS
B) DSS
C) cross-functional
D) TPS

Answer: A
Diff: 2 Type: MC Page Ref: 37
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
69) Helen is the head of a cosmetic distributor. They have over 300 accounts across Canada. Helen is
tasked with scanning both the internal and external environment of the business. Helen then helps to
determine overall strategies the company will pursue. What type of information system will Helen use to
help her with her task?
A) MIS
B) DSS
C) ESS
D) TPS
Answer: C
Diff: 2 Type: MC Page Ref: 39
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management

13
© 2013 Pearson Canada Inc.


70) Bill works for a firm that manufactures doors for commercial businesses. He is the accountant for
the firm. To do his job he must collect data about raw inventory levels, goods in production, finished
goods, and all the costs of the inputs of those processes. Bill would most likely benefit by using what
kind of system to perform his job at a high level?
A) CRM
B) SCM
C) ERP

D) TPS
Answer: C
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
71) Eddy is feeling a lot stress in his work life right now. He is a purchasing manager for a large retail
store and the holiday season is fast approaching. He needs to make sure that the store is well stocked so
that they have enough inventory from all their suppliers to cover this busy time of year. Eddy would
most likely benefit by using what kind of system to perform his job at a high level?
A) CRM
B) SCM
C) ERP
D) TPS
Answer: B
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
72) Susan is employed by a new car dealership. The dealership knows that it is less expensive to retain
current customers than it is to get new customers. Her dealership likes to follow up with current
customers every four months for up to two years to make sure that they are satisfied with their purchase.
Susan would be well served to use what kind of system in her duties?
A) CRM
B) SCM
C) ERP
D) TPS
Answer: A
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills

CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management

14
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73) Bill works for Nike in Edmonton. Nike gives Bill access to internal company data such as inventory
levels, pricing, product availability as well as training on new products. Nike is most likely using which
system to help motivate and train their own employees?
A) CRM
B) SCM
C) intranet
D) extranet
Answer: C
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
74) Glen manufactures shoes for Nike in Hong Kong. His firm receives the plans for the shoes from
Nike eight month before Nike needs the shoes. Glen needs a constant flow of information with Nike in
Canada. Glen needs to know colour, sizes, and number of models needed. Glen also gives Nike reports
through the system as to the status and cost of production of Nike's order. Nike is most likely using
which system to keep in contact and manage their shoe production?
A) CRM
B) SCM
C) intranet
D) extranet
Answer: D
Diff: 3 Type: MC Page Ref: 44

AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
75) ________ are a type of Web site that makes it easy for users to contribute and edit text content and
graphics without any knowledge of Web page development or programming techniques.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: A
Diff: 1 Type: MC Page Ref: 48
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.3 Systems That Span The Enterprise

15
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76) ________ are computer-based simulated environment intended for its users to inhabit and interact
via graphical representations called avatars.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: B
Diff: 1 Type: MC Page Ref: 49
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.3 Systems That Span The Enterprise

77) ________ are online communities for expanding users' business or social contacts by making
connections through their mutual business or personal connections.
A) Wikis
B) Virtual worlds
C) Social networking
D) E-mail
Answer: C
Diff: 1 Type: MC Page Ref: 48
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.3 Systems That Span The Enterprise
78) ________ are the computer-to-computer exchange of messages.
A) Wikis
B) Virtual worlds
C) Social Networking
D) E-mail
Answer: D
Diff: 1 Type: MC Page Ref: 48
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.3 Systems That Span The Enterprise
79) Systems analysts are
A) highly trained technical specialists who write computer software instructions.
B) specialists who translate business problems and requirements into information requirements and
systems
C) employees who heads the formal security function for an organization
D) senior managers in charge of the information systems function in a firm.
Answer: B
Diff: 2 Type: MC Page Ref: 55
AACSB: Reflective thinking skills

CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business

16
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80) ________ systems are especially suited to situations in which the procedure for arriving at a solution
may not be fully defined in advance.
A) Management information
B) Transaction processing
C) Decision-support
D) Knowledge management
Answer: C
Diff: 2 Type: MC Page Ref: 38
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
81) 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
Diff: 2 Type: MC Page Ref: 38
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
82) Decision-support systems are often referred to as business ________ systems.

A) information
B) intelligence
C) analysis
D) modeling
Answer: B
Diff: 2 Type: MC Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
83) ESS are specifically designed to serve which level of the organization?
A) operational
B) end-user
C) middle management
D) senior management
Answer: D
Diff: 1 Type: MC Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

17
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84) 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

Diff: 1 Type: MC Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
85) Which systems often deliver information to senior executives through a portal, which uses a Web
interface to present integrated personalized business content?
A) transaction processing systems
B) executive support systems
C) management information systems
D) decision-support systems
Answer: B
Diff: 2 Type: MC Page Ref: 39
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
86) 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
Diff: 1 Type: MC Page Ref: 39
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
87) 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
Diff: 3 Type: MC Page Ref: 42
AACSB: Analytic skills
CASE: Evaluation
A-level Heading: 2.2 How Information Systems Serve Management

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88) ________ 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
Diff: 1 Type: MC Page Ref: 42
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
89) A(n) ________ system collects data from various key business processes and stores the data in a
single, comprehensive data repository, usable by other parts of the business.
A) transaction
B) enterprise
C) automatic reporting
D) management information
Answer: B
Diff: 2 Type: MC Page Ref: 43
AACSB: Use of information technology

CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
90) You manage the IT department at a small startup Internet advertiser. You need to set up an
inexpensive system that allows customers to see real-time statistics such as views and click-throughs
about their current banner ads. Which type of system will most efficiently provide a solution?
A) CRM
B) enterprise system
C) extranet
D) intranet
Answer: C
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Evaluation
A-level Heading: 2.2 How Information Systems Serve Management
91) The four major enterprise applications are
A) SCMs, CRMs, DSSs, and KMSs.
B) SCMs, CRMs, ESSs, and KMSs.
C) enterprise systems, SCMs, DSSs, and CRMs.
D) enterprise systems, SCMs, CRMs, and KMSs.
Answer: D
Diff: 1 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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92) Enterprise systems are also known as ________ systems.

A) resource planning
B) enterprise resource planning
C) enterprise support
D) management information
Answer: B
Diff: 1 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
93) Enabling management to make better decisions regarding organizing and scheduling sourcing,
production, and distribution is a central feature of
A) SCMs
B) TPSs
C) KMSs
D) ERPs
Answer: A
Diff: 2 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
94) ________ systems integrate supplier, manufacturer, distributor, and customer logistics processes.
A) Collaborative distribution
B) Supply-chain management
C) Reverse logistics
D) Enterprise planning
Answer: B
Diff: 2 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

95) ________ uses a set of integrated applications to address all aspects of the customer relationship.
A) CRM
B) MIS
C) CLE
D) CLU
Answer: A
Diff: 1 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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96) 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
Diff: 2 Type: MC Page Ref: 43
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
97) An information system for ________ would NOT be categorized as a KMS.
A) distributing documents
B) documenting the expertise of company specialists
C) enabling the discovery of new product applications

D) discovering new sales channels for a product
Answer: D
Diff: 1 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.2 How Information Systems Serve Management
98) Which type of information system is an intranet most easily adapted to?
A) CRM
B) MIS
C) TPS
D) KMS
Answer: D
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Synthesis
A-level Heading: 2.2 How Information Systems Serve Management
99) 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
Diff: 1 Type: MC Page Ref: 44
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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100) Which of the following occupations would NOT be categorized as an "interaction" job?
A) sales representative
B) business manager
C) engineer
D) operations manager
Answer: C
Diff: 1 Type: MC Page Ref: 48
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.3 Systems That Span The Enterprise
101) Which of the following decisions requires knowledge based on collaboration and interaction?
A) How long will it take to manufacture this product?
B) Should we collaborate with outside vendors on new products and services?
C) In which geographical locations are our products garnering the most sales?
D) Which product design is the most efficient for the user in terms of energy use?
Answer: B
Diff: 2 Type: MC Page Ref: 45
AACSB: Analytic skills
CASE: Analysis
A-level Heading: 2.3 Systems That Span The Enterprise
102) E-government refers to the application of ________ to digitally enable government and publicsector agencies relationships with citizens, businesses, and other arms of government.
A) the Internet and networking technologies
B) e-commerce
C) e-business
D) any computerized technology
Answer: A
Diff: 1 Type: MC Page Ref: 44
AACSB: Use of information technology

CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
103) Buying or selling goods over the Internet is called
A) e-commerce.
B) e-business.
C) an intranet.
D) an extranet.
Answer: A
Diff: 1 Type: MC Page Ref: 44
AACSB: Reflective thinking skills
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management

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104) The use of digital technology and the Internet to execute the major business processes in the
enterprise is called
A) e-commerce.
B) e-business.
C) enterprise applications.
D) MIS.
Answer: B
Diff: 1 Type: MC Page Ref: 44
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.2 How Information Systems Serve Management
105) The principal liaison between the information systems groups and the rest of the organization is
a(n)

A) programmer.
B) information systems manager.
C) systems analyst.
D) CTO.
Answer: C
Diff: 1 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
106) A ________ is a senior manager who oversees the use of IT in the firm.
A) CEO
B) CFO
C) CIO
D) CTO
Answer: C
Diff: 1 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
107) The ________ helps design programs and systems to find new sources of knowledge or to make
better use of existing knowledge in organizational and management processes.
A) CTO
B) CSO
C) CKO
D) CPO
Answer: C
Diff: 1 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business

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108) The CPO is responsible for
A) ensuring that the company complies with existing data privacy laws.
B) making better use of existing knowledge in organizational and management processes.
C) enforcing the firm's information security policy.
D) overseeing the use of information technology in the firm.
Answer: A
Diff: 1 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
109) The advantage of a having a centralized information services department that operates as a separate
department similar to other departments is that
A) this is more likely to produce more compatible systems and more coherent long-term systems
development plans.
B) this lowers costs of technology purchases.
C) systems are built that directly address that function's business needs.
D) systems are built that can function independently and more efficiently.
Answer: A
Diff: 3 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
110) Which of the following roles falls into the duties of an information systems manager?
A) writing software instructions for computers
B) acting as liaison between the information systems group and the rest of the organization

C) translating business problems into information requirements
D) managing data entry staff
Answer: D
Diff: 3 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
111) Which of the following types of organizing the information systems function would you be most
likely to find in a small company with 20 employees?
A) as departments within each functional area
B) as a separate, centralized department
C) represented within each major division of the company
D) none of the above
Answer: D
Diff: 2 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business

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112) Which of the following types of organizing the information systems function would you be most
likely to find in a very large, multinational corporation?
A) as departments within each functional area
B) as a separate, centralized department
C) represented within each major division of the company
D) none of the above
Answer: C

Diff: 2 Type: MC Page Ref: 55
AACSB: Use of information technology
CASE: Content
A-level Heading: 2.4 The Information Systems Function in Business
113) You work for a highly successful advertiser that is just about to expand nationally. Of utmost
importance will be finding a way to store and disseminate their clients continually updated branding
guides, which include multiple image files and text documents, to all of the firm's branches. What
system will best serve these needs?
A) an intranet with KMS capabilities
B) an extranet with KMS capabilities
C) a TPS with KMS capabilities
D) a CRM
Answer: B
Diff: 3 Type: MC Page Ref: 43
AACSB: Analytic skills
CASE: Synthesis
A-level Heading: 2.2 How Information Systems Serve Management
114) You have been hired by a non-profit agency to implement a system to handle their donations. Event
fundraisers need to be able to quickly access a donor's information and history. The marketing
department needs to be able to create customized mailing lists, in order to send different messages to
different types of donors. What system will best meet these needs?
A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities
Answer: C
Diff: 3 Type: MC Page Ref: 36-38
AACSB: Analytic skills
CASE: Synthesis
A-level Heading: 2.2 How Information Systems Serve Management

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