Management and Information Systems

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Management Information Systems: Managing the Digital Firm, 11e (Laudon/Laudon) Chapter 1 Information Systems in Global Business Today

1) Internet advertising is growing at a rate of more than 25 percent a year. Answer: TRUE

2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Answer: TRUE

3) A fully digital firm produces only digital goods or services. Answer: FALSE

4) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE

5) 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

6) Computers are only part of an information system.
Answer: TRUE
7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. Answer: FALSE

8) The dimensions of information systems are management, organizations, and information technology. Answer: TRUE

9) Knowledge workers assist with paperwork at all levels of the firm. Answer: FALSE

10) 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

11) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: FALSE

12) There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology. Answer: FALSE
13) A network requires at least two computers and a shared resource, such as a printer. Answer: FALSE

14) A substantial part of management responsibility is creative work driven by new knowledge and information. Answer: TRUE

15) Intranets allow firms to work easily with third-party suppliers and vendors. Answer: FALSE

16) An IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE

17) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. Answer: TRUE

18) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments. Answer: TRUE
19) A firm that invests in efficient business processes is making an investment in organizational complementary assets. Answer: TRUE

20) In the behavioral approach to information systems, technology is ignored in favor of understanding the psychological, social, and economic impacts of systems. Answer: FALSE

21) 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

22) Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective? A) improved flexibility

B) improved business practices
C) competitive advantage
D) survival
Answer: C

23) 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

24) 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,...
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