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MIS Exam 2

The five basic entities that make up any business are suppliers, customers, employees, products
and services, and:
invoices and payments.
Promoting the organization?s products or services is a responsibility of the ________ function
sales and marketing
Checking for product quality is an activity associated with the ________ function
manufacturing and production
Which of the following is a cross-functional business process?
Fulfilling a customer order
Employees that assist with paperwork at all levels of the firm are called:
data workers
The three principal levels of hierarchies within a business organization are:
senior management, middle management, and operational management.
Key forces in a business?s immediate environment include:
Engineers and architects are examples of
knowledge workers.
Which of the following is an example of a key force in a firm?s broader, less immediate
economic trends
A computerized system that performs and records the daily dealings necessary to conduct
business is classified as a(n):
transaction-processing system
Which type of system would you use to change a production schedule if a key supplier was late in
delivering goods
A relocation control system that reports summaries on the total moving, house-hunting, and home
financing costs for employees in all company divisions would fall into the category of:
management information systems
The term ?management information systems? designates a specific category of information systems
middle management functions
These systems are designed to summarize and report on the company?s basic operations
Transaction processing systems
________ support making decisions that are unique, rapidly changing, and not easily specified in
Decision-support systems
Which type of system would you use to determine the five suppliers with the worst record in
delivering goods on time?
These systems are especially suited to situations in which the procedure for arriving at a solution
may not be fully predefined in advance.
Decision-support systems
Which type of system would you use to forecast the return on investment if you used new
suppliers with better delivery track records?
Decision-support systems are also referred to as
business intelligence systems
Executive support systems are information systems that support the
long-range planning activities of senior management
ESS are specifically designed to serve the ________ level of the organization
senior management
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?
________ systems often deliver information to senior executives through a portal
Executive support
A POS system, such as the one selected by Johnny?s Lunch in the chapter case study, falls into
which category of information system?
These systems are designed to support organization-wide process coordination and integration
Enterprise applications
A(n) ________ collects data from various key business processes and stores the data in a single
comprehensive data repository, usable by other parts of the business
transaction processing system
What is the most important benefit of an enterprise application?
Enabling business functions and departments to share information
________ systems integrate and share information from suppliers, manufacturers, distributors, and
logistics companies
Supply-chain management
________ systems provide information to coordinate all of the business processes that deal with
customers in sales, marketing, and service to optimize revenue, customer satisfaction, and
customer retention
Which type of information system would an intranet be most easily adapted to?
Which of the following types of system could be used to enable different firms to work
collaboratively on a product?
You manage the Information Systems department at a small startup Internet advertiser. You need
to set up an inexpensive system that allows customers to see real-time statistics such as views and click-throughs about their current banner ads. Which type of system will most efficiently provide
a solution?
Buying or selling goods over the Internet is called:
The use of digital technology and the Internet to execute the major business processes in the
enterprise is called
You work for a highly successful advertiser that is just about to expand nationally. Of utmost
importance will be finding a way to store and disseminate their client?s frequently updated
branding and style guides to all of their branches. The guides include multiple image files and text
documents. What system will best serve these needs?
An extranet with KMS capabilities
Interaction jobs are those jobs which
involve knowledge that can?t be put into an information system.
You have been hired by Inspiration Inc, to help improve their profit margin. Inspiration Inc. is a
business communications consultancy that services many clients in different industries throughout
the U.S. The end products of the company are customized recommendations for the best use of a
client?s existing resources for improving internal communications, typically delivered via
documentation in different media. The company has approximately 100 consultants all of whom
are located in their central headquarters in Chicago. What system do you recommend to improve
the company?s business processes and increase their profit margin?
Extranet, to enable quick collaboration over the Internet, minimize the time spent
communicating with the client, and minimize the amount of paperwork needed
In a business environment, the focus of collaboration is to:
accomplish the task at hand.
Which of the following statements is NOT true about collaboration in a business setting?
Collaboration may be a short-lived activity, lasting just a few minutes
Which of the following tools is NOT one of the most important 15 types of collaboration software
video streaming
A wiki is a type of:
Web site designed for collaborative writing and editing.
Second Life is an example of a:
virtual world
The most widely used collaboration software tool used by very large firms is:
Google Apps.
What analytical framework discussed in the chapter helps understand and evaluate the benefits
and uses of collaboration tools?
time/space matrix
Which of the following collaboration tools would be appropriate for participants in separate
locations who need to collaborate synchronously?
electronic meeting software
The ________ is responsible for ensuring that the company complies with existing data privacy
The principal liaison between the information systems groups and the rest of the organization is
systems analyst.
A ________ is a senior manager who oversees the use of IT in the firm.
Development and support services for a firm?s business systems are provided by:
Application software services.
Policies that determine which information technology will be used, when, and how are provided
IT standards services
A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace
New market entrants
Which of the following industries has the lowest barrier to entry?
A substitute product of most concern for a cable TV distributor is:
satellite TV.
Which of the following can force a business and its competitors to compete on price alone?
Transparent marketplace
A firm can exercise greater control over its suppliers by having:
more suppliers
The four basic strategies a company can employ to deal with competitive forces are:
(1) strengthen customer and supplier intimacy, (2) focus on market niche, (3) product
differentiation, and (4) low-cost leadership.
Wal-Mart?s continuous replenishment system allows it to:
provide an efficient customer response system
Which of the following illustrates the use of information systems to achieve product
A PC manufacturer?s use of information systems in selling build-to-order PCs directly to
Which of the following illustrates the use of information systems to strengthen customer and
supplier intimacy?
AutoNation?s use of information systems to determine which models and options they are
most likely to buy
Which of the following illustrates the use of information systems to focus on market niche?
AutoNation?s use of information systems to determine which models and options they are
most likely to buy
When a firm provides a specialized product or service for a narrow target market better than
competitors, they are using a:
market niche strategy
________ is the ability to offer individually tailored products or services using the same production
resources as bulk production.
Mass customization
An information system can enable a company to focus on a market niche through:
intensive customer data analysis
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:
focus on market niche
Which industries did the first wave of e-commerce transform?
Air travel, books, music
To what competitive force did the printed encyclopedia industry succumb?
Substitute products or services
Internet technology
makes it easy for rivals to compete on price alone
The Internet raises the bargaining power of customers by:
making information available to everyone.
The value chain model
helps a firm identify points at which information technology can most effectively to enhance
its competitive position
The primary activities of a firm include
inbound logistics, operations, outbound logistics, technology, and service
The support activities of a firm include
inbound logistics, technology, outbound logistics, sales and marketing, and service.
compares the efficiency and effectiveness of your business processes against strict standards
The most successful solutions or methods for achieving a business objective are called
best processes
A firm?s value chain is linked to the
value chains of its suppliers, distributors, and customers
A ________ is a collection of independent firms that use information technology to coordinate their
value chains to produce a product or service for a market collectively
value web
How are information systems used at the industry level to achieve strategic advantage?
By building industry-wide, IT-supported consortia and symposia
When the output of some units can be used as inputs to other units, or if two organizations pool
markets and expertise that result in lower costs and generate profits it is often referred to as
An information system can enhance core competencies by:
encouraging the sharing of knowledge across business units
The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output is referred to as
the law of diminishing returns
Network economics
applies the law of diminishing returns to communities of users
In network economics, the value of a commercial software vendor?s software products
increases as more people use them.
A virtual company
uses the capabilities of other companies without being physically tied to those companies
The emergence of the World Wide Web acted as a disruptive technology for
print publishing
Globalization allows
businesses to sell their products on a global scale.
The greatest impact the Internet has had on globalization is in lowering the costs of:
entry to global-scale operations
The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.
The ________ strategy is characterized by heavy centralization of corporate activities in the home
country of origin
domestic exporter
________ systems are those in which each foreign unit designs its own unique information system
________ systems are those in which development occurs at the home base but operations are
handed over to autonomous units in foreign locations
________ systems are those in which systems development and operation occur totally at the
domestic home base.
________ typically develop a single information system, usually at the home base, and then
replicate it around the world
Psychological aspects play a significant role in the definition of quality for:
customers only.
Seeing quality as the responsibility of all people and functions in an organization is central to the
concept of:
The reduction of errors to 3.4 defects per million opportunities is central to the concept of:
Six sigma
Which of the following is not a benefit of implementing CAD systems?
Reducing the time spent on benchmarking
Streamlining the steps taken to complete a business task more efficiently is called
workflow management
Many reengineering projects do not achieve breakthrough gains in performance because
organizational change is difficult to manage
Blockbuster?s move to include online movie rental as a part of its services illustrates the use of
information systems for:
new products and services
Which competitive force best categorizes the threat Netflix posed to Blockbuster?
Substitute products and services
Which of the following is not one of the competitive forces of Porter?s model
External environment
Software that organizes, manages, and processes business data, such as data concerned with
inventory, customers, and vendors, is called
data management software
Software that manages the resources of the computer is called
system software.
Software used to apply the computer to a specific task for an end user is called:
application software.
Legacy systems are still in use today because:
they are too expensive to redesign.
In co-location, a firm:
purchases and owns their Web server but locates the server in the physical facility of a
hosting service.
What would be a reason for using a workstation rather than a personal computer?
When you need more powerful computational abilities
Which of the following types of computer is used for weather forecasting?
Connecting geographically remote computers in a single network to create a ?virtual
supercomputer? is called:
grid computing
The use of multiple computers linked by a communications network for processing is called
distributed processing
The business case for using grid computing involves all of the following except
centralized maintenance.
In a multitiered network
the work of the entire network is balanced over several levels of servers
A client computer networked to a server computer, with processing split between the two types of
machines, is called a(n):
two-tiered client/server architecture
The primary storage technologies are
storage networks, magnetic disks, hard disks, and optical disks
Which of the following is a type of optical disk storage?
Which of the following storage technology stores data sequentially?
Magnetic disks
A high-speed network dedicated to storage that connects different kinds of storage devices, such
as tape libraries and disk arrays so they can be shared by multiple servers best describes:
Which of the following is a device used to collect data directly from the environment for input into
a computer system?
What type of device gathers data and converts them into electronic form for use by the computer?
Input device
Which of the following is not a type of output device?
The main challenge coming to Microsoft?s Office software suite will be:
Web-based productivity software such as Google Apps
A widget is a(n):
small software program that can be added to Web pages or placed on the desktop
Microsoft Word is an example of
word-processing software
An example of autonomic computing is
virus protection software that runs and updates itself automatically
An industry-wide effort to develop systems that can configure, optimize, tune, and heal
themselves when broken, and protect themselves from outside intruders and self-destruction is
autonomic computing
Linux plays a major role in back office operations, with about ________ of the U.S. server market
25 percent
Microsoft Excel is an example of:
spreadsheet software
Which of the following types of computer would you use to support a computer network?
The interactive, multiuser operating system developed by Bell Laboratories in 1969 to be highly
supportive of communications and networking is:
Which is the most recent Windows operating system?
Windows 7
In client/server computing, the client is:
the computer that acts as the user point of entry.
Which of the following is not one of the most important four programming languages for
Linux is
an example of open-source software.
Languages that enable a user to make requests using conversational commands resembling human
speech are called:
natural languages
A report generator is a type of:
fourth-generation language
Two categories of fourth-generation languages are
graphics language and application software package
Which type of software provides more control over text and graphic placement in the layout of a
page than word processing software?
Desktop publishing software
A software suite
includes full-featured versions of application software bundled as a unit
Running a Java program on a computer requires
a Java Virtual Machine to be installed on the computer
Which technology allows a client and server to exchange small pieces of data behind the scene so
that an entire Web page does not have to be reloaded each time the user requests a change?
What is the foundation technology for Web services?
A set of self-contained services that communicate with each other to create a working software
application is called
ChicagoCrime.org, which combines Google Maps with crime data for the city of Chicago, is an
example of:
a mashup
Software applications that combine different online software applications are referred to as
To analyze the direct and indirect costs and determine the actual cost of specific technology
implementations, you would use a:
total cost of ownership model
All of the following place strain on system capacity, except for:
minimized response time for transaction processing.
Which of the following refers to the ability of a computer, product, or system to expand to serve a
larger number of users without breaking down?
The contracting of custom software development to outside firms is commonly referred to as
In order to manage their relationship with an outsourcer or technology service provider, firms
need a contract that includes a(n):
Which of the following statements is not true about cloud computing?
It removes the concern about data and systems security for businesses.
Purchasing computing power from a central computing service and paying only for the amount of
computing power used is commonly referred to as:
utility computing

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