Management and Medium Reference

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Chapter 2

Global E-Business: How Businesses Use Information Systems
True-False Questions
1.

Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information. Answer: True Difficulty: Easy Reference: p. 52

2.

Deciding whether to introduce a new product line is the responsibility of an operational manager. Answer: False Difficulty: Easy Reference: p. 57

3.

Operational-level manufacturing systems deal with the firm’s long-term manufacturing goals, such as where to locate a new plant. Answer: False Difficulty: Medium Reference: p. 46

4.

Transaction processing systems are most commonly used by the senior management level of an organization. Answer: False Difficulty: Medium Reference: p. 52–53

5.

A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Answer: True Difficulty: Easy Reference: p. 52

6.

A hotel reservation system is a typical example of a management information system. Answer: False Difficulty: Medium Reference: p. 52

7.

Management information systems typically support nonroutine decision making. Answer: False Difficulty: Medium Reference: p. 53–54

8.

The decision to grant credit to a customer is normally made by the middle manager. Answer: False Difficulty: Medium Reference: p. 52

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9.

Transaction processing systems are the basic business systems that serve the operational level of the organization. Answer: True Difficulty: Medium Reference: p. 52

10.

Managers need TPSs to monitor the status of internal operations and the firm’s relations with the external environment. Answer: True Difficulty: Medium Reference: p. 52

11.

Most MISs use sophisticated mathematical models or statistical techniques. Answer: False Difficulty: Medium Reference: p. 53–54

12.

Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance. Answer: True Difficulty: Easy Reference: p. 54

13.

Decision-support systems use internal information as well as information from external sources. Answer: True Difficulty: Medium Reference: p. 54

14.

ESSs are designed to serve the middle management of the organization. Answer: False Difficulty: Medium Reference: p. 57

15.

ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS. Answer: True Difficulty: Medium Reference: p. 57

16.

ESSs are designed primarily to solve specific problems. Answer: False Difficulty: Medium Reference: pp. 57–58

17.

Information supplied by an enterprise system is structured around cross-functional business processes. Answer: True Difficulty: Medium Reference: p. 61

18.

Enterprise systems often include transactions with customers and vendors. Answer: True Difficulty: Easy Reference: p. 61

19.

Supply chain management systems are more externally oriented than enterprise systems. Answer: True Difficulty: Hard Reference: pp. 61–63

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20.

Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems. Answer: True Difficulty: Medium Reference: p. 65

Multiple-Choice Questions
21.

(Analysis) 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. Difficulty: Easy Reference: p. 48

Answer: b

(Analysis in terms of differentiating) 22. (Analysis, Synthesis) How would you best categorize the types of systems Kia implemented in their defect early warning system? a. b. c....
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