ESS_7E_testbank_CH02.doc

Chapter 2E-Business: How Businesses Use Information SystemsTrue-False Questions1.Operational management is responsible for directing the day-to-day operations of the business.Answer: TrueDifficulty:EasyReference:p. 442.Deciding whether to introduce a new product line is the responsibility of an operational manager.Answer: FalseDifficulty:EasyReference:p. 47 3.Operational-level manufacturing systems deal with the firms long-term manufacturing goals, such as where to locate a new plant.Answer: FalseDifficulty:MediumReference:p. 484.Transaction processing systems are most commonly encountered at the management level of an organization.Answer: FalseDifficulty:MediumReference:p. 51-535.A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.Answer: TrueDifficulty:EasyReference:p. 516.A hotel reservation system is a typical example of a management information system.Answer: FalseDifficulty:MediumReference:p. 517.Management-level systems do not support nonroutine decision making.Answer: FalseDifficulty:MediumReference:p. 53-558.The decision to grant credit to a customer is normally made by the middle manager.Answer: FalseDifficulty:MediumReference:p. 539.Transaction processing systems are the basic business systems that serve the operational level of the organization.Answer: TrueDifficulty:MediumReference:p. 5310.Managers need TPSs to monitor the status of internal operations and the firms relations with the external environment.Answer: TrueDifficulty:MediumReference:p. 5311.Most MISs use sophisticated mathematical models or statistical techniques.Answer: FalseDifficulty:MediumReference:p. 5412.Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance. Answer: TrueDifficulty:EasyReference:p.5413.Decision-support systems use internal information as well as information from external sources. Answer: TrueDifficulty:MediumReference:p. 5414.ESSs are designed to serve the middle management of the organization. Answer: FalseDifficulty:MediumReference:p. 5515.ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.Answer: TrueDifficulty:MediumReference:p. 5516.ESSs are designed primarily to solve specific problems. Answer: FalseDifficulty:MediumReference:p. 5517.Information supplied by an enterprise system is structured around cross-functional business processes.Answer: TrueDifficulty:MediumReference:p. 5818.Enterprise systems often include transactions with customers and vendors.Answer: TrueDifficulty:EasyReference:p. 5919.Supply chain management systems are more externally oriented than enterprise systems.Answer: TrueDifficulty:MediumReference:p. 59-6020.Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems.Answer: True Difficulty: Medium Reference:p. 63Multiple-Choice Questions21.AnalysisKias difficulties in getting a complete picture of defects in their cars illustrates:a. the difficulties in creating accurate tracking systems.b. the challenges posed by having multiple information systems that are not linked.c. the difficulties in complying with government regulations.d. the compromises made in drawing accurate reports from poorly planned information systems.Answer: bDifficulty: Easy Reference: p. 40Analysis in terms of differentiating22.(Analysis, Synthesis) How would you best categorize the types of systems Kia implemented in their defect early warning system?a. A TPS to store basic data about vehicles, parts, sales, and warranties, and an MIS to create reports on the data.b. A TPS to store basic data about vehicles, parts, sales, and warranties, and a DSS for high-level analysis and forecasts.c. An MIS to create reports from existing TPSs and a DSS for high-level analysis and forecasts.d. A production and manufacturing system to record basic data about faulty parts and a DSS for high-level analysis and forecasts.Answer: cDifficulty: Hard Reference: p. 39-41Analysis in terms of differentiating, Synthesis in terms of bringing parts of knowledge together.23.The five basic entities that make up any business are suppliers, customers, employees, products and services, and: a. its environment.b. manufacturing and production.c. sales and marketing.d. invoices and payments.Answer: dDifficulty: Medium Reference: p. 4324.Which of the following is a cross-functional business process?a. hiring an employee.b. identifying a customer.c. fulfilling a customer order.d. creating an invoice.Answer: cDifficulty: Easy Reference: p. 4325.Employees that assist with paperwork at all levels of the firm are called:a. data workers.b. knowledge workers.c. operational management.d. service workers.Answer: aDifficulty: Easy Reference: p. 4426.The three principal levels of hierarchies within a business organization are:a. management, knowledge workers, and service workers.b. senior management, middle management, and operational management.c. management, data workers, and operational management.d. senior management, middle management, and service workers.Answer: bDifficulty: Easy Reference: p. 4427.Key actors in a businesss immediate environment include:a. regulations.b. technology.c. economy.d. politics.Answer: aDifficulty: Hard Reference: p. 4528.Promoting the organizations products or services is a responsibility of the:a. finance and accounting function.b. human resources function.c. manufacturing and production function.d. sales and marketing function.Answer: dDifficulty: Easy Reference: p. 4729.Market research is an activity associated with the: a. Finance and accounting functionb. Human resources functionc. Manufacturing and production functiond. Sales and marketing functionAnswer: dDifficulty: Easy Reference: p. 4730.Pricing analysis is an example of:a. a sales and marketing information system serving senior management.b. a sales and marketing information system serving management.c. a finance and accounting information system serving senior management.d. a finance and accounting information system serving management.Answer: bDifficulty: Medium Reference: p. 4731.A sales and marketing information system aids operational management in:a. tracking sales.b. planning new products and services.c. analyzing sales performance.d. preparing sales forecasts.Answer: aDifficulty: Medium Reference: p. 4732.A sales and marketing information system aids middle management employees in:a. tracking sales.b. planning new products and services.c. analyzing sales performance.d. preparing sales forecasts.Answer: cDifficulty: Medium Reference: p. 4733.Equipment scheduling and facilities maintenance are functions of:a. Finance and accounting systems.b. Human resources systems.c. Manufacturing and production systems.d. Sales and marketing systems.Answer: cDifficulty:EasyReference:p. 4834.Senior management uses finance and accounting information systems to:a. plan long-term profits.b. decide where to locate new facilities.c. forecast sales trends.d. control the firms financial resources.Answer: cDifficulty: Medium Reference: p. 4935.Budgeting is typically a feature of an information system serving:a. operational management.b. sales and marketing.c. senior management.d. middle management.Answer: dDifficulty: Easy Reference: p. 4936.A finance and accounting information system aids operational management with:a. establishing long term investment goals.b. profit planning.c. accounts receivable.d. budgeting.Answer: cDifficulty: Medium Reference: p. 4937.Compensation analysis is an example of:a. finance and accounting information systems.b. enterprise application information systems.c. human resources information systems.d. sales and marketing information systems.Answer: cDifficulty: Easy Reference: p. 5038.TPSs are the basic business systems that serve which level of the organization?a. senior management.b. middle management.c. operational. d. knowledge management.Answer: cDifficulty: Easy Reference: p. 5139.A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n): a. executive support system.b. management-level system.c. operational-level system.d. transaction-level system.Answer: dDifficulty: Easy Reference: p. 5140.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: a. knowledge management systems.b. operational-level systems.c. executive-support systems.d. management-level systems.Answer: dDifficulty: Hard Reference: p. 51-5541.The term “management information systems” designates a specific category of information systems serving:a. integrated data processing throughout the firm.b. transaction process reporting.c. employees with online access to historical records.d. middle management functions.Answer: dDifficulty: Easy Reference: p. 5342.The principal purpose of _ is to answer routine questions and to track the flow of transactions through the organization.a. senior management-level systems.b. operational-level systems.c. management-level systems.d. knowledge management systems.Answer: bDifficulty: Easy Reference: p. 5343.Managers need _ to monitor the status of internal operations and the firms relations with the external environment.a. decision support systemsb. knowledge systemsc. transaction processing systemsd. management information systemsAnswer: cDifficulty: Medium Reference: p. 5344.Management-level systems are information systems that support the:a. long-range planning activities of senior management.b. knowledge and data workers in an organization.c. decision-making and administrative activities of middle managers.d. day-to-day processes of production.Answer: cDifficulty: Easy Reference: p. 5345.These systems are designed to summarize and report on the companys basic operations. a. decision-support systemsb. executive information systemsc. transaction processing systemsd. management information systemsAnswer: dDifficulty: Medium Reference: p. 5346.These systems are typically a major source of data for other systems:a. transaction processing systems.b. management information systems.c. executive support systems.d. decision-support systems.Answer: aDifficulty: Medium Reference: p. 5347.Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to this type of system:a. management.b. transaction processingc. executive support d. decision-supportAnswer: dDifficulty: Easy Reference: p. 5448.These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance:a. management information systems.b. transaction processing systems.c. decision-support systems.d. knowledge management systems.Answer: cDifficulty: Medium Reference: p. 5449.These systems allow users to change assumptions, ask new questions, and include new data: a. decision-support systems.b. transaction processing systems.c. management information systems.d. executive support systems.Answer: aDifficulty: Medium Reference: p. 54-5550.Executive support systems are information systems that support the:a. long-range planning activities of senior management.b. knowledge and data workers in an organization.c. decision-making and administrative activities of middle managers.d. day-to-day processes of production.Answer: aDifficulty: Easy Reference: p. 5551.These systems have more analytical power than other types of systems: a. management information systems.b. transaction processing systems.c. decision-support systems.d. executive support systems.Answer: cDifficulty: Medium Reference: p. 5552.Decision-support systems are often referred to as:a. business information systems.b. business intelligence systems.c. business support systems.d. business model systems.Answer: bDifficulty:Medium Reference:p. 5553.ESS are specifically designed to serve this level of the organization:a. operationalb. end-use.c. middle managementd. senior managementAnswer: dDifficulty:Medium Reference:p. 5554.These systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content:a. transaction processing systems.b. executive support systems.c. management information systems.d. decision-support systems.Answer: bDifficulty:Medium Reference:p. 5555.These systems are designed to support organization-wide process coordination and integration.a. Decision-support systemsb. Management information systemsc. CRMd. Enterprise applicationsAnswer: dDifficulty:Easy Reference:p. 5756.A (an) _ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business.a. transaction systemb. enterprise systemc. automatic reporting systemd. management information systemAnswer: bDifficulty:Medium Reference:p. 5857._ is the process that integrates supplier, manufacturer, distributor, and customer logistics processes.a. Collaborative distributionb. Supply-chain managementc. Reverse logisticsd. Enterprise planningAnswer: bDifficulty:Medium Reference:p. 5958._ uses a set of integrated applications to address all aspects of the customer relationship.a. CRMb. MISc. CLEd. CLUAnswer: aDifficulty:Easy Reference:p. 6059.(Analysis)Which type of system would you use to determine what trends in your suppliers industry will affect your firm the most in five years?a. ESSb. TPSc. MISd. DSSAnswer: aDifficulty:Easy Reference:p. 55Analysis in terms of differentiate and appraise60.(Analysis)Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?a. ESSb. TPSc. MISd. DSSAnswer: dDifficulty:Easy Reference:p. 55Analysis in terms of differentiate and appraise61.(Analysis)Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?a. ESSb. TPSc. MISd. DSSAnswer: bDifficulty:Medium Reference:p. 53Analysis in terms of differentiate and appraise62.(Analysis)Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?a. ESSb. TPSc. MISd. DSSAnswer: cDifficulty:Easy Reference: p. 53-54Analysis in terms of differentiate and appraise63.Different firms can work collaboratively on product design, marketing, and production through:a. An intranetb. An extranetc. A KMSd. A CRMAnswer: bDifficulty:Easy Reference:p. 6364.(Synthesis)What type of information system is an intranet most easily adapted to:a. CRMb. MISc. TPSd. KMSAnswer: dDifficulty:Hard Reference:63Synthesize in terms of bringing information together65.Buying or selling goods over the Internet is called:a. e-commerceb. e-businessc. an intranetd. an extranetAnswer: aDifficulty:Easy Reference:p. 6366. (Synthesis)You would recommend that a system interface use a portal when:a. employees need to communicate with clients and vendors.b. employees need to collaborate with suppliers and vendors.c. employees need to reference multiple sources of data.d. employees need to use data from the Internet.Answer: bDifficulty:Easy Reference:p. 63Synthesize in terms of brining information together67The use of digital technology and the Internet to execute the major