Management Information Systems: Managing the Digital Firm
BAM 509 –Management Information Systems
Twelfth Edition, 2012
Kenneth C. Laudon, Jane P. Laudon
Pearson Prentice Hall
Multiple Choice Questions (Enter your answers on the closed answer sheet)
The three activities in an information system that produce the information organizations use to control operations are:
input, output, and feedback.
input, processing, and output.
data analysis, processi ng, and feed back.
information retrieval, research, and analysis.
2. Converting raw data into a more meaningful form is called:
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:
4. The hardware and software used to transfer data in an organization is called:
networking and telecommunications technology.
data management technology.
networking and data management technology.
data and telecommunications technology.
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:
data management environment.
6. An example of a business using information systems for customer and supplier intimacy is:
Wal-Mart’s RetailLink system.
the Mandarin Oriental hotel’s customer-preference tracking system.
Apple Inc.’s iPod.
Verizon’s Web-based digital dashboard.
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?
Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to:
modernize their information value chain.
adopt a new business model.
invest in technology.
invest in complementary assets.
9. Disciplines that contribute to the technical approach to information systems are:
engineering, utilization management, and computer science.
management science, computer science, and engineering.
computer science, engineering, and networking.
operations research, management science, and computer science.
Which field of study focuses on both a behavioral and technical understanding of information systems?
Management information systems
11. Identifying customers is a responsibility of the function.
finance and accounting
sales and marketing
manufacturing and production
12. All of the following statements regarding Lotus Notes are true except for:
It began as an e-mail and messaging client.
It is the most widely used collaboration tool at Fortune 1000 companies.
It provides tools for e-mail, calendars, help desk, CRM, blogs, and wikis.
Firmwide installations at a large company require specialized servers and may cost millions of dollars per year.
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?
14. What is the most important function of an enterprise application?
Enabling a company to work collaboratively with customers and suppliers
Enabl i ng cost-effective e-busi ness processes
Increasing speed of communicating
Enabling business functions and departments to share information
The point-of-sale Pulse system used by Domino’s to maintain consistent and efficient management functions in its restaurants is best categorized as which type of system?
more than one of the above
In Domino’s upgraded Pulse Evol ution system, it incorporated a Pizza Tracker functional ity that shows the progression of individual pizza orders. This is an example of using information systems to achieve which business objective?
Improved decision making
Customer and supplier intimacy
17. The four major enterprise appl ications are:
SCMs, CRMs, DSSs, and KMSs.
enterprise systems, SCMs, CRMs, and KMSs.
enterprise systems, SCMs, DSSs, and CRMs.
SCMs, CRMs, ESSs, and KMSs.
You are planning the launch of your new company, an application service provider that provides an online timesheet and project tracking application. To best communicate with and manage your relationship with your users, you would want to implement atn).
extra n et.
Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers?
The use of digital technology and the Internet to execute the major business processes in the enterprise is called:
21. The CPO is responsi ble for:
overseeing the use of information technology in the firm.
making better use of existing knowledge in organizational and management processes.
enforcing the firm’s information security policy.
ensuring that the company complies with existing data privacy laws.
22. Which of the followi ng is not one of the fifteen categories of collaborative software tools?
As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T?
Customer and supplier intimacy
Focus on market niche
How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?
It sees the organization as a social structure similar to a machine.
It sees information systems as a way to rearrange the inputs and outputs of the organ ization.
It sees the inputs and outputs, labor and capital, as being infinitely malleable.
It sees capital and labor as primary production factors.
According to the definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment.
All of the following are major features of organizations that impact the use of information systems EXCEPT for:
busi ness processes.
27. Business processes are collections of:
formalized and documented practices.
informal practices and behaviors.
rights and privi leges.
According to Leavitt’s model of organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are:
tasks, technology, people, and structure.
technology, people, culture, and structure.
organization, culture, management, and environment
environment, organization, structure, tasks.
Amazon’s use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which type of competitive strategy:
marketi ng effectiveness.
strengthening supplier intimacy.
focusi ng on market niche.
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:
strengthen customer intimacy.
differentiate their service.
focus on market niche.
31. An example of synergy in business is:
Blockbuster combining traditional video rental with online video rental.
Wal-Mart’s order entry and inventory management system to coordinate with suppliers.
Amazon’s use of the Internet to sell books.
JP Morgan Chase’s mergers with other banks that provided JP Morgan with a network of retail branches in new regions.
32. A virtual company:
uses Internet technology to maintain a networked community of users.
uses Internet technology to maintain a virtual storefront.
provides entirely Internet-driven services, or virtual products.
uses the capabilities of other companies without being physically tied to those companies.
33. Which of the following best describes how new information systems result in legal gray areas?
They work with networked, electronic data, which are more difficult to control than information stored man ually.
They are implemented by technicians rather than managers.
They result in new situations that are not covered by old laws.
They are created from sets of logical and technological rules rather than social or organ izational mores.
Which of the five moral dimensions of the information age do the central business activities of ChoicePoint raise?
Property rights and obi igations
I nformation rights and obi igations
Accountability and control
35. The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called:
the judicial system.
the courts of appeal.
Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue?
Identify the stakeholders.
Identify and clearly describe the facts.
Identify the options you can reasonably take.
37. The Federal Trade Commission FIP principle of Notice/Awareness states that:
data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use.
customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction.
Web sites must disclose their information practices before collecting data.
there is a mechanism in place to enforce FIP principles.
38. European privacy protection is than in the United States.
much more stringent
less liable to laws
much less stringent
What legal mechanism protects the owners of intellectual property from having their work copied by others?
Fair use doctrine
Intellectual property law
40. Two of the three principal sources of poor system performance are:
hardware or facility failures and malware.
software bugs and errors and outdated standards.
hardware or facility failures and poor input data quality.
poor input data quality and insufficient integration with legacy systems.
41. CVS refers to:
eyestrain related to computer display screen use.
wrist injuries brought about by incorrect hand position when using a keyboard.
carpal vision syndrome.
stress induced by technology.
42. Which of the following is NOT an IT infrastructure service component?
Physical facility management to manage the facilities housing physical components
Computing platforms to provide a coherent digital environment
IT management services to plan and develop the infrastructure and provide project management
Operating system software
43. In a multi-tiered network:
processing is split between clients and servers.
processing is handled by multiple, geographically remote clients.
the work of the entire network is centralized.
the work of the entire network is balanced over several levels of servers.
44. unleash powerful economies of scale and result in declines in manufactured computer products.
CI ientlserver tech nologies
I nternet and web technologies
Linux and open-source software
45. A SAN is a network.
service-oriented arch itecture
46. The leading networking hardware providers include:
Dell, HP/Compaq, and IBM.
IBM, Oracle, and Sun.
Cisco, Alcatel-Lucent, and Nortel.
Seagate, Maxtor, and Western Digital.
47. Which of the following is NOT an example of the emerging mobile computing platforms?
48. Linux is:
an example of open-source software.
especially useful for processing numeric data.
designed for specific machines and specific microprocessors.
primarily concerned with the tasks of end users.
49. What is the foundation technology for Web services?
Which of the following is NOT one of the main six factors to consider when evaluating how much your firm should spend on IT infrastructure?
Your firm’s organizational culture
Your firm’s business strategy
Market demand for your firm’s services
The IT investments made by competitor firms
51. Which of the following non-digital data storage items is most similar to a database?
Cash register receipt
Library card catalog
List of sales totals on a spreadsheet
Doctor’s office invoice
52. DBMS for midrange computers include all of the following EXCEPT:
Microsoft SQL Server.
An automated or manual file that stores information about data elements and data characteristics such as usage, physical representation, ownership, authorization, and security is the:
data definition diagram.
54. The most prominent data manipulation language today is:
55. OBMSs typically include report-generating tools in order to:
retrieve and display data.
display data in an easier-to-read format.
perform predictive analysis.
display data in graphs.
56. Which of the following is not one of the techniques used in Web mining?
57. A data warehouse is composed of:
historic and current internal data.
historical data from legacy systems.
internal and external data sources.
58. tools are used to analyze large unstructured data sets, such as e-mail, memos, survey responses, etc., to discover patterns and relationships.
a. Text mining
Web content mining
The special organizational function whose responsibilities include the technical and operational aspects of managing data, including physical database design and maintenance, is called:
information policy administration.
60. In TCP/IP, IP is responsible for:
disassembling and reassembling of packets during transmission.
moving packets over the network.
establishing an Internet connection between two computers.
sequencing the transfer of packets.
61. Which signal types are represented by a continuous waveform?
62. All network components connect to a single hub in a topology.
63. A network that covers broad geographical regions is most commonly referred to as atn).
local area network.
wide area network.
64. Passive RFID tags:
are used in automated toll-collection systems.
enable data to be rewritten and modified.
have their own power source.
have a range of several feet.
Inputting data into a poorly programmed Web form in order to disrupt a company’s systems and networks is called:
a Trojan horse.
a DDoS attack.
an SQL injection attack.
66. The I nternet poses specific security problems because:
Internet data is not run over secure lines.
it changes so rapidly.
Internet standards are universal.
it was designed to be easily accessible.
An independent computer program that copies itself from one computer to another over a network is called a:
Using numerous computers to inundate and overwhelm the network from numerous launch points is called a attack.
69. The Gramm-Leach-Bliley Act:
specifies best practices in information systems security and control.
outlines medical security and privacy rules.
requires financial institutions to ensure the security of customer data.
imposes responsibility on companies and management to safeguard the accuracy of
70. The most common type of electronic evidence is:
7l. Rigorous password systems:
are one of the most effective security tools.
may hinder employee productivity.
are often disregarded by employees.
are costly to implement.
72. Why is overstocking warehouses not an effective solution for a problem of low availability?
It increases inventory costs.
It increases sales costs.
It does not speed product time to market.
It is an inefficient use of raw materials.
Customer relationship management systems typically provide software and online tools for sales, customer service, and:
74. Customer service modules in CRM systems provide tools for:
managing sales prospect and contact information.
capturing prospect and customer data.
identifying profitable and unprofitable customers.
assigning and managing customer service requests.
Which of the following is an important capability for sales processes that is found in most major CRM software products?
Channel promotions management
76. Analytical CRM applications:
provide consolidated data for operational CRM applications.
provide customer-facing applications.
are based on data warehouses consol idated from operational CR M appl ications.
include tools for marketing automation.
How are the Internet and e-commerce causing severe disruption to the existing advertising business model?
New methods of advertising, such as blog advertising, are emerging.
Ties between customer and businesses are being rethought.
Technology players such as Yahoo! seek to dominate online advertising and expand into ofline ad brokerage.
The market entry costs for online advertising services are extremely low.
78. Information density refers to the:
total amount and quality of information available to all market participants.
total amount and quantity of information delivered to consumers by merchants.
richness, complexity and content of a message.
amount of information available to reduce price transparency.
79. Digital goods are goods that are:
sold over digital networks.
used with digital equipment.
In a phenomenon called , some argue that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts.
the wisdom of crowds
social networki ng
Netflix’s public announcement of a reward for a technology solution to its movie recommendation system is an example of:
82. In the United States, m-commerce:
now represents a major fraction of total e-commerce transactions.
is still in its infancy.
is growing slowly.
has become widely adopted.
What type of knowledge management system did Canadian Tire implement in order to improve the communications with dealers?
Knowledge network system
Digital asset management system
Learning management system
Content management system
Changing organizational behavior by sensing and responding to new experience and knowledge is called:
organ izational learn ing.
the knowledge value chain.
85. Fuzzy logic is a type of:
Once a knowledge taxonomy is developed, documents are all with the proper classification.
87. An inference engine is:
a strategy for searching the rule base in case-based reasoning.
a strategy used to search through the rule base in an expert system by forward chaining or backward chaining.
a method of organizing expert system knowledge into chunks.
the programming environment of an expert system.
The type of decision that can made by following a definite procedure is called atn) _ decision.
As discussed in the chapter text, the three main reasons that investments in information technology do not always produce positive results are:
information qual ity, information integrity, and information accuracy.
management support, technical logistics, and user compliance.
organization, environment, culture.
information quality, organizational culture, and management filters.
Which of the following is a disadvantage of high-velocity, automated decision-making systems?
Inability to handle structured decisions
I nabi I ity to hand led semi-structured decisions
Inability to handle high volumes of decisions
Inability to control themselves and respond to new environments
The information system used by Caesar’s Entertai nment, which combi nes data from internal TPS with information from financial systems and external sources to deliver reports such as profit-loss statements, impact analyses, is an example of:
92. are visual tools for presenting performance data in a BI system.
Scenarios and models
Reports and the drill-down feature
Dashboards and scorecards
The four kinds of structural organizational change enabled by IT, in order from least to most risky, are:
rationalization, automation, reengineering, and paradigm shift.
automation, redesigning, restructuring, and paradigm shift.
automation, rationalization, reengineering, and paradigm shift.
rationalization, automation, reengineering, and redesigning.
94. What is the greatest barrier to successful business process change?
usability of implemented solution
selecting the correct process to change
ineffective project management
Compared to the use of proprietary components, Web services promise to be less expensive and less difficult to implement because of:
their ability to integrate seamlessly with legacy systems.
the ability to reuse Web services components.
the ubiquity of the Internet.
the use of universal standards.
96. development focuses on rapid delivery of working software by breaking a large project into a series of small sub-projects that are completed in short periods of time using iteration and continuous feedback.
On average, private sector IT projects underestimated budget and delivery time of systems by ___ percent.
At the top of the management structure for information systems projects in a large company is:
the corporate strategic planning group.
the IS steering committee.
A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called atn):
information systems plan.
100. Which method would you use is used to develop risk profiles for a firm’s information system projects and assets?
information systems plan