Ch7 Review
1. Traditionally, companies are organized around four distinct functional areas. Which of the following
is one of those areas?
A) communication management
B) risk management
C) technology management
D) supply chain management
E) systems management
Page Ref: 270
2. According to the order-to-cash process, what would the next step be for an online retailer after
creating an order for a customer?
A) create customer record
B) collect payment
C) prepare and send invoice
D) pick, pack, and ship
E) allocate stock
Page Ref: 271
3. In the procure-to-pay process, the negotiation of price and terms is followed by ________.
A) receiving the goods
B) receiving the invoice
C) settling the payment
D) issuing the purchase order
E) creating the customer record
Page Ref: 272
4. In the ________ process, raw materials, subcomponents, and accessories are procured based on
forecasts, but actual manufacturing does not start until sales orders are received.
A) make-to-stock
B) make-to-order
C) procure-to-pay
D) order-to-cash
E) acquire-to-dispose
Page Ref: 272
5. Which of the following goods are produced using the make-to-order approach?
A) commercial aircraft
B) televisions
C) refrigerators
D) shampoos
E) lipsticks
Page Ref: 273
6. Which of the following is a core activity?
A) administrative activities
B) operations and manufacturing
C) human resource activities
D) infrastructure activities
E) technology development
Page Ref: 274
7. Human resource activities ________.
A) streamline the organization's internal value chain
B) include the design and development of applications that support the primary business activities
C) are classified as a support activity since the primary activities cannot be accomplished without the
employees to perform them
D) include the purchasing of goods and services that are required as inputs to the primary activities
E) integrate the internal applications with suppliers, business partners, and customers
Page Ref: 276
8. A(n) ________ information flow consists of information that is received from another organization.
A) legacy
B) stand-alone
C) packaged
D) downstream
E) upstream
Page Ref: 278
9. A system that communicates across organizational boundaries is sometimes referred to as a(n)
________.
A) stand-alone system
B) intraorganizational system
C) internally focused system
D) legacy system
E) interorganizational system
Page Ref: 282
10. Applications that integrate business activities across departmental boundaries are often referred to
as ________ systems.
A) enterprise resource planning
B) computer-integrated manufacturing
C) manufacturing resource planning
D) capacity requirement planning
E) materials requirement planning
Page Ref: 287
Key Terms:
business process management, core activities, custom software, enterprise resource planning,
enterprise system, ERP core components, externally focused system, internally focused system, legacy
system, make-to-order, make-to-stock, off-the-shelf software, order-to-cash process, packaged
software, procure-to-pay process, stand-alone application, value system
Answers
1D
2E
3D
4B
5A
6B
7C
8E
9E
10A