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Test Bank For Essentials of MIS, 14th Edition by Kenneth C. Laudon, Jane P. Laudon
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Test Bank For Essentials of MIS, 14th Edition by Kenneth C. Laudon, Jane P. Laudon
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,TEST BANK FOREssentials of MIS, 14th edition Kenneth C. Laudon, Jane P. Laudon
Chapter 1-12
Chapter 1 Business Information Systems in Your Career
1) Which of the following is the key business objective behind the technologies implemented by
PCL Construction, as discussed in the chapter-opening case?
A) Operational excellence
B) Survival
C) Improved employee morale
D) Increased supplier intimacy
E) Creation of a new business model
Answer: A
Difficulty: Challenging
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business today?
2) Journalist Thomas Friedman's description of the world as "flat" refers to the:
A) reduction of economic and cultural advantages of developed countries.
B) use of the Internet for instantaneous communication.
C) reduction in travel times and the ubiquity of global exchange and travel.
D) growth of globalization.
E) increased use of global currencies.
Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business today?
3) The six important business objectives of information system investment include all of the
following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
E) new products.
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business today?
1
,4) 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?
A) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy
Answer: A
Difficulty: Moderate
AACSB: Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business today?
5) Walmart exemplifies the power of information systems coupled with excellent business
practices and supportive management to achieve which of the following?
A) New business models
B) Operational efficiency
C) Customer intimacy
D) Competitive advantage
E) Survival
Answer: B
Difficulty: Challenging
AACSB: Analytical Thinking
LO: 1-1: Why are information systems so essential for running and managing a business today?
6) Verizon uses a web-based digital dashboard to provide managers with real-time information,
in order to:
A) improve flexibility.
B) improve decision making.
C) gain competitive advantage.
D) create supplier intimacy.
E) create a new business model.
Answer: B
Difficulty: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business today?
7) Which business objective were competitors seeking when they rushed to provide ATMs after
Citibank introduced the first ATMs in New York?
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
D) Competitive advantage
E) Improved decision making
Answer: C
Difficulty: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business today?
2
, 8) All of the following describe the effects of globalization except:
A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) increased ability to find low-cost suppliers.
D) increases in transaction costs.
E) ability to reliably obtain price and quality information worldwide.
Answer: D
Difficulty: Challenging
AACSB: Analytical Thinking
LO: 1-1: Why are information systems so essential for running and managing a business today?
9) A firm that must invest in a new information system in order to comply with federal
legislation is investing to achieve which of the following business objectives?
A) Customer intimacy
B) Operational excellence
C) New products.
D) Improved decision making
E) Survival
Answer: E
Difficulty: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business today?
10) Which of the following is an example of a business using information systems to create new
products and services?
A) Apple's creation of the iPad
B) JCPenney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced
C) The Mandarin Oriental's use of computers to keep track of guests' preferences
D) Verizon's web-based digital dashboard providing real-time company information for
managers
E) Walmart's Retail Link system
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business today?
11) An example of a business using information systems for supplier intimacy is:
A) Apple's creation of the iPad.
B) JCPenney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
C) Citibank's ATM system.
D) Verizon's web-based digital dashboard providing real-time company information for
managers.
E) the Mandarin Oriental's use of computers to keep track of guests' preferences.
Answer: B
3
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