Study Guide (Chapter 1-4)
This guide should be used as a reference for capturing main points from the textbook, not
a replacement for your thorough study. When focusing on a particular question, also
cover the whole paragraph/page to get an overall understanding.
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.
b.
c.
d.
improved flexibility.
improved decision making.
improved business practices.
improved efficiency.
2. Verizon’s implementation of a Web-based digital dashboard to provide managers with realtime information such as customer complaints is an example of:
a.
b.
c.
d.
improved flexibility.
improved decision making.
improved efficiency.
customer and supplier intimacy.
3. Order data for baseball tickets and bar code data are examples of:
a.
b.
c.
d.
raw input.
raw output.
customer and product data.
sales information.
4. The average number of tickets sold daily online is an example of:
a.
b.
c.
d.
input.
raw data.
meaningful information.
output.
5. Converting raw data into a more meaningful form is called:
a.
b.
c.
d.
capturing.
processing.
organizing.
feedback.
6. 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.
b.
c.
d.
data management environment.
networked environment.
IT infrastructure.
information system.
7. An example of a business using information systems for customer and supplier intimacy is:
a.
b.
c.
d.
Wal-Mart’s RetailLink system.
the Mandarin Oriental hotel’s customer-preference tracking system.
Verizon’s Web-based digital dashboard.
Apple Inc.’s iPod.
8. Disciplines that contribute to the technical approach to information systems are:
a.
b.
c.
d.
computer science, engineering, and networking.
operations research, management science, and computer science.
engineering, utilization management, and computer science.
management science, computer science, and engineering.
9. Key corporate assets are:
a.
b.
c.
d.
intellectual property, core competencies, and financial and human assets.
production technologies and business processes for sales, marketing, and finance.
knowledge and the firm’s tangible assets, such as goods or services.
time and knowledge.
10. Overproduction or underproduction of goods and services, misallocation of resources, and
poor response times are the results of a firm’s having:
a.
b.
c.
d.
poor relationships with suppliers.
poor relationships with customers.
inadequate information.
surplus of information.
11. Which of the following would not be used as an input for an information system?
a.
b.
c.
d.
Digital dashboard
Handheld computer
Bar-code scanner
Cell phone
12. Engineers, scientists, or architects, who design new products or services for a firm, belong to
which level of a business hierarchy?
a.
b.
c.
d.
Middle management
Production workers
Knowledge workers
Data workers
---------------13. Kia’s difficulties in getting a complete picture of defects in their cars illustrates:
a.
b.
c.
d.
the difficulties in creating accurate tracking systems.
the challenges posed by having multiple information systems that are not linked.
the difficulties in complying with government regulations.
the compromises made in drawing accurate reports from poorly planned information
systems.
14. Which of the following is a cross-functional business process?
a.
b.
c.
d.
Hiring an employee
Identifying a customer
Fulfilling a customer order
Creating an invoice
15. Market research is an activity associated with the:
a.
b.
c.
d.
finance and accounting function.
human resources function.
manufacturing and production function.
sales and marketing function.
16. Equipment scheduling and facilities maintenance are functions of:
a.
b.
c.
d.
finance and accounting systems.
human resources systems.
manufacturing and production systems.
sales and marketing systems.
17. The total elapsed time, from the beginning of a business process to the end of the process, is
called:
a.
b.
c.
d.
completion time.
requisition-to-pay.
fulfillment.
cycle time.
18. To monitor the status of internal operations and the firm’s relations with the external
environment, managers need _________ systems
a.
b.
c.
d.
decision-support
knowledge
transaction processing
management information
19. These systems are typically a major source of data for other systems:
a.
b.
c.
d.
transaction processing systems.
management information systems.
executive support systems.
decision-support systems.
20. These systems are especially suited to situations in which the procedure for arriving at a
solution may not be fully predefined in advance:
a.
b.
c.
d.
management information systems.
transaction processing systems.
decision-support systems.
knowledge management systems.
21. Executive support systems are information systems that support the:
a.
b.
c.
d.
long-range planning activities of senior management.
knowledge and data workers in an organization.
decision-making and administrative activities of middle managers.
day-to-day processes of production.
22. Many hospitals are described in the BioSense case study as being reluctant to implement
BioSense. The organizational challenges that dissuade some hospitals from using the BioSense
program include:
a.
b.
c.
d.
the incompatibility of the hospital’s information systems to the BioSense system.
the costs of standardizing information.
concerns regarding responsibility for managing a pandemic.
all of the above.
23. These systems are designed to support organization-wide process coordination and
integration.
a.
b.
c.
d.
Decision-support systems
Management information systems
CRM
Enterprise applications
24. _______________________ uses a set of integrated applications to address all aspects of the
customer relationship.
a.
b.
c.
d.
CRM
MIS
CLE
CLU
25. ___________________________ is the process that integrates supplier, manufacturer,
distributor, and customer logistics processes.
a.
b.
c.
d.
Collaborative distribution
Supply-chain management
Reverse logistics
Enterprise planning
26. 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.
b.
c.
d.
TPS
Extranets
KMS
CRM
27. Buying or selling goods over the Internet is called:
a.
b.
c.
d.
e-commerce.
e-business.
an intranet.
an extranet.
28. The use of digital technology and the Internet to execute the major business processes in the
enterprise is called:
a.
b.
c.
d.
e-commerce.
e-business.
enterprise applications.
MIS.
29. The principal liaison between the information systems groups and the rest of the organization
is a(n):
a.
b.
c.
d.
programmer.
information systems manager.
systems analyst.
CTO.
30. A __________ is a senior manager who oversees the use of IT in the firm.
a.
b.
c.
d.
CEO
CFO
CIO
CTO
31. 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 client’s constantly updating
branding and style guides, which include multiple image files and text documents, to all of their
branches. What system will best serve these needs?
a.
b.
c.
d.
An intranet with KMS capabilities
An extranet with KMS capabilities
A TPS with KMS capabilities
A sales and marketing information system
----------32. Business processes are collections of:
a.
b.
c.
d.
informal practices and behaviors.
formalized and documented practices.
routines.
rights and privileges.
33. Amazon’s use of the Internet as a platform to sell books illustrates a tactical use of
information services for:
a.
b.
c.
d.
low-cost leadership.
product differentiation.
focusing on market niche.
strengthening customer intimacy.
34. The four major types of competitive strategy are:
a.
b.
c.
d.
low-cost leadership; substitute products and services; customers; and suppliers.
low-cost leadership; product differentiation; focus on market niche; and customer and
supplier intimacy.
new market entrants; substitute products and services; customers; and suppliers.
low-cost leadership; new market entrants; product differentiation; and focus on market
niche.
35. You are consulting for a beverage distributor who is interested in determining the benefits it
could achieve from implementing new information systems. What will you advise as the first
step?
a.
b.
c.
d.
Identify the business ecosystem the distributor is in.
Implement a strategic transition to the new system.
Perform a strategic systems analysis.
Benchmark existing systems.
36. The ______________________ model is used to describe the interaction of external forces
that affect an organization’s strategy and ability to compete.
a.
b.
c.
d.
network economics
competitive forces
competitive advantage
demand control
37. Which of the following is not one of the competitive forces?
a.
b.
c.
d.
Suppliers
Other competitors
External environment
Customers
38. Which of the following industries has a low barrier to entry?
a.
b.
c.
d.
Automotive
Computer chip
Restaurant
Airline
39. Wal-Mart’s continuous replenishment system allows it to:
a.
b.
c.
d.
provide mass customization.
provide an efficient customer response system.
strengthen customer intimacy.
achieve economy of scale.
40. When a firm provides a specialized product or service for a narrow target market better than
competitors, they are using a:
a.
b.
c.
d.
product differentiation strategy.
market niche strategy.
mass customization strategy.
process efficiency strategy.
41. An information system can enable a company to focus on a market niche through:
a.
b.
c.
d.
complex trend forecasting.
tailoring products to the client.
intensive product trend analysis.
intensive customer data analysis.
42. Hilton Hotels’ use of customer information software to identify the most profitable customers
to direct services to is an example of using information systems to:
a.
strengthen customer intimacy.
b.
c.
d.
differentiate their service.
focus on market niche.
increase efficiency.
43. Which of the four generic strategies to combat competitive forces did 7-Eleven implement?
a.
b.
c.
d.
Low cost leadership
Focus on market niche
Customer and supplier intimacy
Product differentiation
44. To what competitive force did the printed encyclopedia industry succumb?
a.
b.
c.
d.
Positioning and rivalry among competitors
Low cost of entry
Substitute products or services
Customer’s bargaining power
45. Internet technology:
a.
b.
c.
d.
makes it easy for rivals to compete on price alone.
imposes a significant cost of entry, due to infrastructure requirements.
increases the difference between competitors because of the wide availability of information.
makes it easy to sustain operational advantages.
46. The Internet raises the bargaining power of customers by:
a.
b.
c.
d.
creating new opportunities for building loyal customer bases.
making more products available.
making information available to everyone.
lowering transaction costs.
47. The most successful solutions or methods for achieving a business objective are called:
a.
b.
c.
d.
value activities.
best processes.
core competencies.
best practices.
48. An example of synergy in business is:
a.
b.
c.
d.
Amazon’s use of the Internet to sell books.
JP Morgan Chase’s merger with Bank One Corporation, which provided JP Morgan with a
network of retail branches in new regions.
Blockbuster combining traditional video rental with online video rental.
Wal-Mart’s order entry and inventory management system to coordinate with suppliers.
49. The more any given resource is applied to production, the lower the marginal gain in output,
until a point is reached where the additional inputs produce no additional output. This is referred
to as:
a.
b.
c.
d.
the point of no return.
the law of diminishing returns.
supply and demand.
network inelasticity.
50. Which competitive force best categorizes the threat Netflix posed to Blockbuster?
a.
b.
c.
d.
Rivalry among traditional competitors
Threat of new market entrants
Substitute products and services
Bargaining power of customers
51. Blockbuster’s implementation of online movie rental is an example of using information
technology to enhance which part of the value chain?
a.
b.
c.
d.
Inbound logistics
Operations
Sales and marketing
Procurement
52. The emergence, for Amazon.com, of new competitors in the sphere of online shopping
illustrates what disadvantage posed by the use of information systems to achieve competitive
advantage?
a.
b.
c.
d.
Law of diminishing returns
Internet technologies are universal, and therefore usable by all companies.
Internet shopping produces cost transparency.
The Internet enables the production or sales of substitute products or services.
-------------53. Which ethical issues will be most central if your career is in finance and accounting?
a.
b.
c.
d.
Protecting information systems from fraud and abuse
Enforcing corporate ethics policies
Responsibility regarding data accuracy and quality
Privacy issues concerning customer data
54. The four key technical trends responsible for current ethical stresses related to information
technology are:
a.
b.
c.
d.
doubling of computer power every 18 months, data analysis advances, networking advances,
the Internet.
doubling of computer power every 18 months, declining data storage costs, data analysis
advances, lack of international standards for data protection.
doubling of computer power every 18 months, declining data storage costs, data analysis
advances, networking advances and the Internet.
doubling of computer power every 18 months, declining data storage costs, data analysis
advances, ease in file sharing and copying.
55. In the information age, the obligations that individuals and organizations have concerning
rights to intellectual property fall within the moral dimension of:
a.
b.
c.
d.
property rights and obligations.
system quality.
accountability and control.
information rights and obligations.
56. The use of computers to combine data from multiple sources and create electronic dossiers of
detailed information on individuals is called:
a.
b.
c.
d.
profiling.
spyware.
spamming.
targeting.
57. The feature of social institutions that means mechanisms are in place to determine
responsibility for an action is called:
a.
b.
c.
d.
due process.
accountability.
courts of appeal.
judicial system.
58. Accepting the potential costs, duties, and obligations for the decisions you make is referred to
as:
a.
b.
c.
d.
responsibility.
accountability.
liability.
due process.
59. Immanuel Kant’s Categorical Imperative states that:
a.
b.
c.
d.
if an action cannot be taken repeatedly, then it is not right to be taken at any time.
one should take the action that produces the least harm or incurs the least cost.
one can put values in rank order and understand the consequences of various courses of
action.
if an action is not right for everyone to take, it is not right for anyone to take.
60. A colleague of yours frequently takes small amounts of office supplies, noting that the loss to
the company is minimal. You counter that if everyone were to take the office supplies, the loss
would no longer be minimal. Your rationale expresses which historical ethical principle?
a.
b.
c.
d.
Kant’s Categorical Imperative
The Golden Rule
Descartes’ Rule of Change
The “No free lunch” rule
61. The ethical “no free lunch” rule states that:
a.
b.
c.
d.
if an action cannot be taken repeatedly, then it is not right to be taken at any time.
one should take the action that produces the least harm or incurs the least cost.
one can put values in rank order and understand the consequences of various courses of
action.
everything is owned by someone else, and that the creator wants compensation for this work.
62 The Federal Trade Commission Fair Information Practice principle of Notice/Awareness states
that:
a.
b.
c.
d.
customers must be allowed to choose how their information will be used for secondary
purposes other than the supporting transaction.
data collectors must take responsible steps to assure that consumer information is accurate
and secure from unauthorized use.
there is a mechanism in place to enforce FIP principles.
Web sites must disclose their information practices before collecting data.
63 European privacy protection is _________________ than in the United States.
a.
b.
c.
d.
less far-reaching
less liable to laws
much less stringent
much more stringent
64 When a cookie is created during a Web site visit, it is stored:
a.
b.
c.
d.
on the Web site computer.
on the visitor’s computer.
on the ISP’s computer.
in a Web directory.
65 The P3P standard is concerned with protecting privacy by:
a.
b.
c.
d.
controlling pop-up ads based on user profiles and preventing ads from collecting or sending
information.
allowing users to surf the Web anonymously.
scrambling data so that it can’t be read.
blocking or limiting cookies.
66.Intellectual property can best be described as:
a.
b.
c.
d.
intangible property created by individuals or corporations.
unique creative work or ideas.
tangible property created from a unique idea.
the manifestation of an intangible idea.
67 The limitation of trade secret protection is that although virtually all software programs of any
complexity contain unique elements of some sort, it is difficult to prevent the ideas in the work
from falling into the public domain when:
a.
b.
c.
d.
the software is released.
the software is open source.
the software is widely distributed.
a new version of the software is released.
68 What legal mechanism protects the owners of intellectual property from having their work
copied by others?
a.
b.
c.
d.
Patent protection
Intellectual property law
Copyright
Fair Use Doctrine
69.“Look and feel” copyright infringement lawsuits are concerned with:
a.
b.
c.
d.
the distinction between tangible and intangible ideas.
the distinction between an idea and its expression.
copying graphical elements of a product.
copying creative elements of a product.
70.One of the difficulties of patent protection is:
a.
b.
c.
d.
that only the underlying ideas are protected.
digital media cannot be patented.
assuring protection against theft.
the years of waiting to receive it.
71.The “do anything anywhere” computing environment can:
a.
b.
c.
d.
make work environments much more pleasant.
create economies of efficiency.
centralize power at corporate headquarters.
blur the traditional boundaries between work and family time.
72.The practice of spamming has been growing because:
a.
b.
c.
d.
it is unregulated.
it is good advertising practice and brings in many new customers.
it helps pay for the Internet.
it is so inexpensive and can reach so many people.
73. The chapter’s case study on the effect of Internet use on school-age children associates a
higher use of the Internet with:
a.
b.
c.
d.
lower socialization and interpersonal communications.
increased meaningful relationships.
increased exposure to advertising.
development of a wider variety of meaningful relationships.
74. CVS refers to:
a.
b.
c.
d.
eyestrain related to computer display screen use.
computer virus syndrome.
wrist injuries brought about by incorrect hand position when using a keyboard.
cardiovascular stress induced by technology.
75. Which of the following is stress induced by computer use, and its symptoms include
aggravation, hostility toward humans, impatience, and enervation?
a.
b.
c.
d.
Computer stress
CVS
Carpal tunnel syndrome
Technostress