Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them?
A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management
Which of the following is a core business process?
Whenever an order is placed with online retailers, the retailers put together the order, ship it, and charge the payment to the customer’s credit card. This process of selling a product or service is known as the ________ process.
For most businesses, the ________ process entails several subprocesses including creating a customer record, checking the customer’s creditworthiness, creating an order, checking and allocating stock, and shipping.
Buying a book at Amazon.com illustrates which of the following core business processes?
An online retailer has finished creating a customer record. Identify the retailer’s next step in an order-to-cash process.
A) create order
B) allocate stock
C) pick, pack, and ship
D) prepare and send invoice
E) check customer’s creditworthiness
In the order-to-cash process, checking credit is followed by ________.
A) collecting payment
B) creating an order
C) allocating stock
D) picking, packing, and shipping
E) preparing and sending the invoice
In an order-to-cash process, identify the next step that the online retailer takes after creating an order for a customer.
A) collect payment
B) create customer record
C) check and allocate stock
D) pick, pack, and ship
E) prepare and send invoice
An effective ________ process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications.
Subprocesses of the procure-to-pay process include ________.
A) collecting the payment
B) creating customer records
C) price and terms negotiations
D) creating customer satisfaction
E) speeding up the collection process
The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.
Which of the following is the first step in the procure-to-pay process?
A) negotiate price and terms
B) issue purchase order
C) receive goods
D) receive invoice
E) settle payment
An effective ________ process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders.
In the procure-to-pay process, the negotiation of price and terms is followed by ________.
A) settling the payment
B) creating the customer record
C) issuing the purchase order
D) receiving the goods
E) receiving the invoice
________ immediately after the purchase order is issued in the procure-to-pay process.
A) Payment is settled
B) Price and terms are negotiated
C) Credit is checked
D) Goods are received
E) Invoices are received
Receiving the goods is followed by ________ in the procure-to-pay process.
A) settling the payment
B) negotiating the price and terms
C) issuing the purchase order
D) creating the order
E) receiving the invoice
In the ________ process, goods are produced based on forecasts and are stored in a warehouse, and sales orders are then fulfilled from inventory.
The organization waits for an order, allowing the organization to initiate a ________ sequence to move the order through the production process.
In core business processes, which of the following uses a push-based approach?
In the ________ process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received.
Which of the following uses a pull-based approach?
The make-to-stock process is typically used for ________.
A) customizable goods
C) big-ticket items
D) building aircrafts
E) building highways
Which of the following goods are typically produced under a make-to-order approach?
A) expensive high-volume goods
B) cheap high-volume goods
C) very expensive low-volume goods
D) mass-produced goods
E) goods from external vendors
Which of the following goods are produced using the make-to-order approach?
A) commercial aircrafts
B) air conditioners
C) home appliances
________ activities are performed by the functional areas that process inputs and produce outputs.
Which of the following is a core activity according to the value chain model?
A) human resource activities
B) technology development
C) operations and manufacturing
D) administrative activities
E) infrastructure activities
Inbound logistics involves business activities associated with ________.
A) distributing end products within the order-to-cash business process
B) creating marketing literature
C) communicating with potential and existing customers
D) receiving and stocking raw materials, parts, and products
E) order processing
Assembly processes are ________ activities.
A) outbound logistics
B) marketing and sale
C) customer sales
D) administrative and marketing
E) operations and manufacturing
Outbound logistics activities focus on the ________.
A) processing of orders
B) distribution of end products within the order-to-cash business process
C) pricing of goods and services
D) transformation of raw materials into end products
E) receiving and stocking of raw materials, parts, and products
________ focuses on the distribution of end products within the order-to-cash business process.
A) Procure-and-pay process
B) Sales and marketing activity
C) Make-to-stock process
D) Inbound logistics
E) Outbound logistics
Administrative activities focus on the ________.
A) design and development of applications that support the primary business activities
B) hardware and software that must be implemented to support the applications that the primary activities use
C) business activities associated with employee management
D) processes and decision making to orchestrate the day-to-day operations of an organization
E) purchasing of goods and services that are required as inputs for the primary activities
The hardware and software that must be implemented to support the applications that the primary activities use are a part of the ________ activities.
A) human resources
B) technology development
D) inbound logistics
Human resource activities ________.
A) are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them
B) include the design and development of applications that support the primary business activities
C) include the purchasing of goods and services that are required as inputs to the primary activities
D) integrate the internal applications with suppliers, business partners, and customers
E) streamline the organization’s internal value chain
________ activities encompass all business activities associated with employee management, such as hiring, interview scheduling, payroll, and benefits management.
A) Human resource
B) Technology development
________ is a support activity.
A) Outbound logistics
B) Operations and manufacturing
C) Technology development
D) Customer service
E) Marketing and sales
Designing and developing applications that support the primary business activities are a part of the ________ activities.
A) operations and manufacturing
B) outbound logistics
C) technology development
E) inbound logistics
A(n) ________ information flow consists of information that is received from another organization.
A ________ information flow relates to the information that is produced by a company and sent along to another organization.
One of the traditional functional areas that companies are organized around is information systems management.
The core business processes common to most business organizations are order-to-cash, procure-to-pay, and make-to-stock.
The order-to-cash process entails subprocesses such as price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice.
The processes associated with buying goods from external vendors are together referred to as the procure-to-pay process.
In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received.
The make-to-order process uses the pull-based approach.
Systems that focus on the specific needs of individual departments and are not designed to communicate with other systems in the organization are referred to as ________.
A) internally focused applications
B) externally focused systems
C) stand-alone applications
D) enterprise-wide systems
E) enterprise-information systems
Legacy systems can prove problematic when information from multiple departmental systems is required to support business processes and decision making. Which of the following scenarios is most similar to the above-mentioned statement?
A) Chuck’s is a retail chain that has an inventory management system that is tied to an RFID system. This system notifies Chuck’s managers when the inventory in its stores falls below a certain level.
B) Quick Software Solutions has an automated system to track employee absence. It also uses a non-automated system like attendance registers that employees sign every day. This information is updated to Quick’s database management system on a weekly basis.
C) Nuok Tires supplies its products to Fresto, an automobile manufacturer. Nuok Tires’ factories are located close to Fresto’s factories to minimize transportation costs.
D) Fender, a guitar manufacturer, allows customers to design their guitars online. Potential buyers need to send the design with the order to receive their customized guitars.
E) Jsutmi successfully pursues a just-in-time inventory system. Recently, however, it has not been able to meet demand due to labor problems.
A(n) ________ is an integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using one large database.
A) legacy system
B) management information system
C) decision support system
D) distributed system software
E) enterprise system
An internally focused system helps an organization coordinate with its ________.
B) business partners
A(n) ________ system coordinates business processes with customers, suppliers, and business partners of an organization.
A) internally focused
E) externally focused
A system that communicates across organizational boundaries is also referred to as a(n) ________ system.
D) internally focused
________ software are applications written by third-party vendors that are used by many different users and organizations.
Applications that are designed and developed exclusively for a specific organization are known as ________ software.
D) ready-made application
ustomers can purchase ________ software off the shelf to help them with their personal documents and communications.
________ software is written by third-party vendors to support standardized and repetitive tasks.
Identify the software that is cost effective, since the vendor that builds the application spreads out the development costs by selling copies to a large number of users?
A) packaged software
B) bespoke software
C) adapted software
D) corrected software
E) custom software
Which of the following types of software is best suited for tasks that are unique to a particular business?
E) ready-made application
Which of the following statements is true of packaged and custom software?
A) Packaged software are applications that are designed and developed exclusively for a specific organization.
B) The development costs of custom software are much higher than for packaged software because of the time, money, and resources that are required to design and develop them.
C) Packaged software is well suited for tasks that are unique to a particular business.
D) Custom software is cost effective since the vendor that builds the application can spread out development costs through selling to a large number of users.
E) Custom software is highly useful for standardized, repetitive tasks, such as writing a report or preparing a presentation.
The features and modules that an enterprise system comes with out of the box are referred to as the ________ version.
If the ________ version does not support a certain business process, the company may require a customized version.
________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost.
A) Business process
B) Business activity
C) Business service
D) Application performance
E) Application service
) In the 1990s, business process management was known as ________.
A) business systems management
B) business process reengineering
C) business service reengineering
D) application performance management
E) application service management
According to business process management, identify the management’s next step after developing a vision for the organization.
A) They should identify the ways in which information systems can be used to improve the various business processes.
B) They should design and implement a prototype of the new processes.
C) They should manage the information technology to be used from a business transaction perspective.
D) They should identify the critical processes that are to be redesigned.
E) They should understand and measure the existing processes as a baseline for future improvements.
According to business process management, identify the next step taken by management after identifying the ways in which the information systems can be used.
A) identifying the critical processes that are to be redesigned
B) understanding and measuring the existing processes as a baseline for future improvements
C) reducing costs and shortening the time it takes to get products to market
D) designing and implementing a prototype of the new process
E) developing a vision for the organization that specifies the business objectives
How is business process management similar to quality improvement approach such as total quality management?
A) They are intended to be cross-functional approaches to improve an organization.
B) They focus on radical redesign and drastic improvement of processes.
C) They focus on incremental change of processes.
D) They focus on the activities typically occurring at the operational level of the organization.
E) They focus on providing capabilities for discovering “hidden” predictive relationships while conducting a forecast.
Systems that focus on the specific needs of individual departments are typically not designed to communicate with other systems in the organization and are therefore referred to as stand-alone applications.
A legacy system is an integrated suite of business applications for virtually every department, process, and industry that allows companies to integrate information across operations on a company-wide basis using one large database.
Rather than storing information in separate places throughout the organization, enterprise systems provide a central repository common to all corporate users.
Internally focused systems coordinate business processes with customers, suppliers, and business partners.
A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS).
Customer relationship management applications concentrate on the activities involved in promoting and selling products to the customers as well as providing customer service and nourishing long-term relationships.
Applications that integrate business activities across departmental boundaries are often referred to as ________ planning systems.
A) manufacturing resource
C) capacity requirement
D) enterprise resource
E) materials requirement
Which of the following is true regarding enterprise resource planning (ERP)?
A) It stores data in different locations.
B) It is an older version of materials requirement planning.
C) It helped in developing the manufacturing resource planning package.
D) Stand-alone applications are a developed version of ERP.
E) It makes the process of sharing information between business activities easier.
Components which support employee recruitment, assignment tracking, performance reviews, payroll, and regulatory requirements are called ________ management.
A) human resource
Components to simplify, standardize, and automate business processes related to inbound and outbound logistics, product development, manufacturing, and sales and service are called ________ management.
A) human resource
Components to support accounting, performance management, and corporate governance are called ________management.
A) human resource
Enterprise resource planning (ERP) extended components focus primarily on ________.
A) customer relationship management and product lifecycle management
B) product lifecycle management and supply chain management
C) customer relationship management and human capital management
D) human capital management and supply chain management
E) customer relationship management and supply chain management
Enterprise resource planning replaces stand-alone applications by providing various modules based on a common database and similar application interfaces that service the entire enterprise rather than portions of it.
Enterprise resource planning control refers to the locus of control over the computing systems and data contained in these systems, as well as decision making authority.
There are two major categories of enterprise resource planning (ERP) components-ERP core components and ERP extended components.
Enterprise resource planning (ERP) core components support the primary external activities of the organization that deals with suppliers and customers.
Enterprise resource planning extended components support internal operations such as financial management, operations management, and human resource management.
Which of the following is true regarding the formula for success of an enterprise system?
A) Enterprise systems implementations should include personnel from different departments.
B) The success of an enterprise system depends directly on the support received from middle-management.
C) Enterprise systems are simple to understand and implement when compared to stand-alone systems.
D) Using outside consultants tends to complicate the implementation of an enterprise system.
E) Once enterprise systems go live, employees experience an immediate growth in productivity.
Companies implementing ________ enterprise resource planning (ERP) can benefit from scalability and agility.
C) hard drive
Two-tier ERP strategy can support operations at the corporate level, while providing the needed ________ at the subsidiary level.
A) interoperability and reliability
B) reliability and componentization
C) flexibility and agility
D) interoperability and accessibility
E) scalability and manageability
The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company.
Industry surveys have shown that 50 percent of companies that undertake enterprise system implementations did not realize any benefits.
Companies that have successfully installed enterprise systems are found to follow a basic set of recommendations related to enterprise system implementations.
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