TestBank_Ch01
Management Information Systems Test Bank
Chapter 1 Information Systems in Global Business Today
1 True-False Questions
1) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.
Answer: TRUE
2) A fully digital firm produces only digital goods or services.
Answer: FALSE
3) A business model describes how a company produces, delivers, and sells a product or service to create wealth.
Answer: TRUE
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: FALSE
5) Computers are only part of an information system.
Answer: TRUE
6) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.
Answer: FALSE
7) The dimensions of information systems are management, organizations, and information technology.
Answer: TRUE
8) 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
9) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.
Answer: FALSE
10) There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.
Answer: FALSE
11) A substantial part of management responsibility is creative work driven by new knowledge and information.
Answer: TRUE
12) An IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE
13) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments.
Answer: TRUE
14) A firm that invests in efficient business processes is making an investment in organizational complementary assets.
Answer: TRUE
15) The behavioral approach to information systems focuses on changes in attitudes, management and organizational policy, and behavior.
Answer: TRUE
2 Multiple-Choice Questions
1) 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
2) The use of information systems because of necessity describes the business objective of
A) survival. B) improved business practices.
C) competitive advantage. D) improved flexibility.
Answer: A
3) Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time?
A) 1 only B) 1 and 2
C) 2 and 3 D) 1, 2, and 3
Answer: D
4) An information system can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support
A) decision making and control in an organization.
B) communications and data flow.
C) managers analyzing the organization's raw data.
D) the creation of new products and services.
Answer: A
5) 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
6) Order data for baseball tickets and bar code data are examples of
A) raw input. B) raw output.
C) customer and product data. D) sales information.
Answer: A
7) The average number of tickets sold daily online is an example of
A) input. B) raw data.
C) meaningful information. D) feedback.
Answer: C
8) Output
A) is feedback that has been processed to create meaningful information.
B) is information that is returned to appropriate members of the organization to help them evaluate the input stage.
C) transfers data to the people who will use it or to the activities for which it will be used.
D) transfers processed information to the people who will use it or to the activities for which it will be used.
Answer: D
9) Converting raw data into a more meaningful form is called
A) capturing. B) processing.
C) organizing. D) feedback.
Answer: B
10) The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called
A) information systems literacy.
B) information systems architecture.
C) management information systems.
D) information technology infrastructure.
Answer: C
11) 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
12) 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
13) Maintaining the organization's financial records is a central purpose of which main business function?
A) manufacturing and accounting B) finance and accounting
C) sales and manufacturing D) finance and sales
Answer: B
14) In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
A) middle management. B) service workers.
C) production management. D) operational management.
Answer: D
15) Which of the following are environmental actors that interact with an organization and its information systems?
A) customers B) suppliers
C) regulatory agencies D) all of the above
Answer: D
16) A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?
A) managerial B) governmental
C) social D) organizational
Answer: C
17) An example of an organizational complementary asset is
A) using the appropriate business model.
B) a collaborative work environment.
C) laws and regulations.
D) all of the above.
Answer: A
18) An example of a social complementary asset is
A) technology and service firms in adjacent markets.
B) training programs.
C) distributed decision-making rights.
D) all of the above.
Answer: A
19) Disciplines that contribute to the technical approach to information systems are:
A) computer science, engineering, and networking.
B) operations research, management science, and computer science.
C) engineering, utilization management, and computer science.
D) management science, computer science, and engineering.
Answer: B
20) Sociologists study information systems with an eye to understanding
A) how systems affect individuals, groups, and organizations.
B) how human decision makers perceive and use formal information.
C) how new information systems change the control and cost structures within the firm.
D) the production of digital goods.
Answer: A
21) Psychologists study information systems with an eye to understanding
A) how systems affect individuals, groups, and organizations.
B) how human decision makers perceive and use formal information.
C) how new information systems change the control and cost structures within the firm.
D) the production of digital goods.
Answer: B
22) Which of the following are key corporate assets?
A) intellectual property, core competencies, and financial and human assets
B) production technologies and business processes for sales, marketing, and finance
C) knowledge and the firm's tangible assets, such as goods or services
D) time and knowledge
Answer: A
23) 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
24) Which field of study focuses on both a behavioral and technical understanding of information systems?
A) sociology B) operations research
C) economics D) management information systems
Answer: D
25) The three principle levels within a business organization hierarchy are
A) senior management, operational management, and service workers.
B) senior management, middle management, and operational management.
C) senior management, operational management, and information systems.
D) senior management, middle management, and service workers.
Answer: B
26 ) Which main business function is responsible for maintaining employee records?
A) sales and marketing B) human resources
C) finance and accounting D) manufacturing and production
Answer: B
27) The shared information technology resources for the organization are called its:
A) MIS plan. B) operational network
C) IT infrastructure D) business infrastructure
Answer: C
28) Promoting the organ ization’s products and services is a business function of:
A) manufacturing and production B) finance and accounting
C) human resources D) sales and marketing
Answer:D
29) A broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems as well as technical knowledge about computers is called:
A) computer literacy B) technology literacy.
C) management literacy D) information systems literacy.
Answer: D
30) Converting raw data into a more meaningful form is called:
A) capturing B) processing.
C) controlling D) feedback.
Answer: B
3 Fill in the Blanks
1) A(n) ________ is one where nearly all significant business processes and relationships are managed through digital means.
Answer: digital firm
2) ________ refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized.
Answer: Business processes
3) A ________ describes how a company produces, delivers and sells a product or service to create wealth.
Answer: business model
4) A(n) ________ is composed of interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.
Answer: information system
5) ________ is data that has been shaped into a form that is meaningful to human beings.
Answer: Information
6) To fully understand information systems, you must understand the broader , management and technology dimensions of system.
Answer: Feedback
7) A(n) ________ refer to broader understanding of information systems, which encompasses an understanding of the management and organizational dimensions as well as the technical dimensions of systems.
Answer: information systems literacy
8) In a(n) ________ perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained. Answer: sociotechnical
9) ________ makes long-range strategic decisions about the firm's products and services. Answer: Senior management
10) ________ refer to those assets required to derive value from a primary investment. Answer: Complementary assets
4 Essay Questions
1) Why are information systems so essential for running and managing a business today? Answer: Information systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity.
Six reasons why information systems are so important for business today include:
(1) Operational excellence
(2) New products, services, and business models
(3) Customer and supplier intimacy
(4) Improved decision making
(5) Competitive advantage
(6) Survival
2) What exactly is an information system?
Answer: We can define information systems from both a technology and a business perspective. Technology perspective: An information system is a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.
Business Perspective: An information system represents an organizational and management solution based on information technology, to a challenge or problem posed by the environment.
3) List and describe the organizational, management, and technology dimensions of information systems.
Answer:
?Organization: The organization dimension of information systems involves issues such as the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups.
?Management: The management dimension of information systems involves setting organizational strategies, allocating human and financial resources, creating new products and services and re-creating the organization if necessary.
?Technology: The technology dimension consists of computer hardware, software, data management technology, and networking/telecommunications technology.
4) Describe the sociotechnical perspective on information systems.
Answer: A sociotechnical perspective combines the technical approach and behavior approach to achieve optimal organizational performance. Technology must be changed and designed to fit organizational and individual needs and not the other way around. Organizations and individuals much also change through training, learning, and allowing technology to operate and prosper.