Management Information Systems Final Exam

Which of the following is not one of the six strategic business objectives of information systems?

improved employee morale

In ________, raw data is systematically acquired and transformed during various stages that add value to that information.

information value chain

The three activities in an information system that produce the information organizations use to control operations are:

input, processing, and output

The three main dimensions of information systems are management, organizations, and information technology.

true

In relationship to total capital investments for organization, for the past 15 years Information technology capital investments have:

been steadily increasing

Which of the following statements about digital firms is not true?

Today, most firms are fully digital.

Current information technology innovations are creating new products and services while having no impact on existing businesses or industries.

False

Which of the following is a private corporate network extended to authorized users outside the organization?

an extranet

Thomas Friedman's description of the world as "flat" refers to:

the flattening of economic and cultural advantages of developed countries.

Converting raw data into a more meaningful form is called:

processing

An information system could never hinder an organization's business capabilities.

False

A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives?`

Survival

The enormous volume of data generated by Internet activity, such as web traffic, email, and social media is referred to as:

big data

Competitors were seeking which of the following business objectives when they rushed to provide ATMs after Citibank introduced the first ATMs in New York?

survival

Which main business function is responsible for maintaining employee records?

human resources

Which of the following 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

1, 2, and 3

Computers and programs are the only things required to produce the information an organization needs.

False

Middle managers make long-range strategic decisions about the firm's products and services.

False

Information systems enable globalization.

true

In digital firms, both _____________ and _____________ are the norm.

time shifting and space shifting

Data is information that has been shaped into a form that is meaningful to human beings.

False

Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives

true

All of the following describe the effects of globalization except:

increases in transaction costs

A business model describes how a company produces, delivers, and sells a product or service to create wealth.

True

All of the following are new technology-related trends in MIS except:

co-creation of business value.

A TPS is an information system that keeps track of all of the daily routine transactions of a business.

true

Operational managers use ESS primarily to solve specific problems.

False

An information systems manager:

manages data entry staff

An ESS supports which of the following?

Long-range planning activities of senior management

Global firms can collaborate from different locations at the same time using synchronous collaboration tools.

true

A web interface used to present integrated personalized business content to users is called a portal.

true

Which level of the organization is an ESS specifically designed to serve?

senior management

The four major types of enterprise applications are:

ERP, SCM, CRM, and KMS.

The principal liaison between the information systems groups and the rest of the organization is a(n):

systems analyst

IT governance refers to the overall decision-making that guides the IT strategy of a firm.

True

If your main supplier was late in delivering goods, which type of system would you use to update your production schedule?

TPS

Identifying customers is a business process handled by the human resources function.

False

Most transaction processing systems use sophisticated mathematical models or statistical techniques.

False

The ________ function is responsible for identifying customers.

sales and marketing

A DSS is most commonly used by the operations management level of an organization.

False

Enterprise applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole.

True

Using the Internet to buy or sell goods is called:

e-commerce

A ________ is a senior manager who oversees the use of IT in the firm.

CIO

What is the most important function of an enterprise application?

Enabling business functions and departments to share information

One example of a business process is shipping a product to a customer.

True

Order fulfillment involves all of the following business processes except:

making customers aware of the product

A(n) ________ is typically a major source of data for other systems.

TPS

Supply chain management systems are more externally oriented than enterprise systems.

True

A key word in social business is "conversations."

True

For nonroutine decision making, senior managers rely on management information systems.

False

A firm can be said to have competitive advantage when it has access to resources that others do not.

True

All of the following statements are true about information technology's impact on business firms except:

it helps firms expand in size

A(n) ________ is an activity for which a firm is a world-class leader.

core competency

Which of the following substitute products would be of most concern for a cable TV distributor?

Satellite TV

Which of the following statements about organizations is not true?

An informal group can be considered to be an organization.

The Internet increases the bargaining power of customers by:

making information available to everyone.

Which of the following statements about business processes is not true?

Business processes are typically unaffected by changes in information systems.

Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry?

Benchmarking

Which of the following best illustrates the use of information systems to focus on market niche?

A department store creating specialized products for preferred customers.

Walmart's attempt to increase its online presence is an example of a firm using information systems to:

achieve low-cost leadership

A firm can exercise greater control over its suppliers by having:

more suppliers

A virtual company:

uses networks to link people, assets, and ideas.

Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors.

market niche

All of the following are competitive forces in Porter's model except:

external environment

All of the following are IT-enabled products and services providing competitive advantage except:

Nike's use of celebrities to market their products

According to research on organizational resistance, the four components that must be changed in an organization in order to successfully implement a new information system are:

tasks, technology, people, and structure.

You are consulting for a natural food products distributor who is interested in determining the benefits it could achieve from implementing new information systems. What will you advise as the first step?

Perform a strategic systems analysis

The law of diminishing returns only applies to digital products.

False

Research has shown that a majority of firms are able to align their information technology with their business goals.

False

Information systems enhance core competencies by:

encouraging the sharing of knowledge across business units.

The four major competitive strategies are:

low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.

Which of the following industries has the lowest barrier to entry?

small retailer

Why does Amazon need to worry about competitors in online shopping?

Internet technologies are universal, and therefore usable by all companies.

Walmart's continuous replenishment system allows it to do all of the following except:

provide mass customization.

The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly.

False

Malicious software that is installed secretly on your computer by other applications and that tracks your online movements is called spyware.

True

All of the following are technical solutions to protecting user privacy except:

data use policies

________ grants the owner exclusive ownership of the ideas behind an invention for 20 years.

patent law

Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed?

HIPAA

Spam is legally defined as any e-mail that is unsolicited.

False

Which of the five moral dimensions of the information age do the central business activities of DoubleClick involve?

information rights and obligations

Which of the following restricts the information that the U.S. federal government can collect about an individual and regulates what it can do with the information?

The Privacy Act

Ethics describes the principles of right and wrong that can be used by individuals to make choices to guide their behavior.

True

According to ________, you should take the action that produces the least harm.

the risk aversion principle

TRUSTe is an example of which of the following?

online seal program

The use of computers to assemble data from different sources to create digital dossiers of detailed information about individuals is known as which of the following?

Profiling

Gaining unapproved access to a computer is not a federal crime.

False

"Look and feel" copyright infringement lawsuits are concerned with:

the distinction between an idea and its expression.

Computer abuse refers to acts involving a computer that may not be illegal but are considered unethical.

True

Some forms of illegal sharing of music files have declined as legitimate online music stores have expanded.

True

A man steals from a grocery store in order to feed his starving family. Which of the following best expresses the utilitarian principle in evaluating this situation?

His action is acceptable, because the higher social value is the survival of the family.

Which of the following is not protected by copyright law?

Machines

________ prohibits an organization from collecting any personal information unless the individual specifically takes action to approve information collection and use.

the opt-in model

Copyright is a legal protection given to creators of certain types of intellectual property.

True

When a cookie is created during a website visit, it is stored:

on the hard drive of the visitor's computer

Advertisers use ________ in order to display more relevant ads based on a user's search and browsing history.

behavioral targeting

All of the following are steps in the process for analyzing an ethical issue except:

assigning responsibility

The U.S. Department of Commerce developed a ________ framework in order to enable U.S. businesses to legally use personal data from EU countries.

safe harbor

Any intellectual work product that isn't based on public knowledge can be classed as a trade secret.

True

Which of the following is not a U.S. federal law affecting private institutions?

Computer Matching and Privacy Protection Act