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TEST BANK for Management Information Systems Managing the Digital Firm, 17th Edition By Laudon Kenneth & Laudon Jane. (Complete Chapters 1-15) WITH RATIONALES GUARANTEED A+€17,57
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TEST BANK for Management Information Systems Managing the Digital Firm, 17th Edition By Laudon Kenneth & Laudon Jane. (Complete Chapters 1-15) WITH RATIONALES GUARANTEED A+
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the Digital Firm, 17th Edition By Laudon Kenneth & Laudon
Jane. (Complete Chapters 1-15) WITH RATIONALES
GUARANTEED A+
Managing the Digital Firm
1. Which of the following best defines a Management Information System (MIS)?
o A) A system...
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,TEST BANK for Management Information Systems Managing
the Digital Firm, 17th Edition By Laudon Kenneth & Laudon
Jane. (Complete Chapters 1-15) WITH RATIONALES
GUARANTEED A+
Managing the Digital Firm
1. Which of the following best defines a Management Information System (MIS)?
o A) A system that focuses only on data storage
o B) A system that provides information needed to manage organizations
effectively
o C) A system designed exclusively for marketing purposes
o D) A collection of unorganized data
Answer: B) A system that provides information needed to manage organizations
effectively
Rationale: MIS is designed to support decision-making and improve
organizational performance by providing timely and relevant information.
2. What is the primary purpose of a transaction processing system (TPS)?
o A) To support management decision-making
o B) To collect and store transaction data
o C) To provide real-time information to executives
o D) To analyze market trends
Answer: B) To collect and store transaction data
Rationale: TPS is used to process routine transactions and maintain data integrity
by capturing transaction data accurately.
3. In the context of MIS, what does the term "data warehousing" refer to?
o A) A location for physical storage of data
o B) The process of collecting and managing data from various sources for analysis
o C) A system that processes transactions in real-time
o D) The practice of deleting old data
Answer: B) The process of collecting and managing data from various sources
for analysis
Rationale: Data warehousing involves consolidating data from different sources
to provide a comprehensive view for analysis and reporting.
4. What role does business intelligence (BI) play in organizations?
o A) It solely focuses on data entry
o B) It helps organizations make informed decisions by analyzing data
o C) It is unrelated to MIS
o D) It is only used for financial analysis
Answer: B) It helps organizations make informed decisions by analyzing data
Rationale: BI tools enable organizations to transform data into actionable
insights, enhancing decision-making processes.
,5. Which of the following is a key component of an information system?
o A) People
o B) Hardware
o C) Software
o D) All of the above
Answer: D) All of the above
Rationale: An information system comprises people, hardware, software, data,
and procedures, all working together to process information.
6. What is the primary function of an Enterprise Resource Planning (ERP) system?
o A) To manage customer relationships
o B) To integrate all facets of an organization’s operations
o C) To handle only financial transactions
o D) To perform market analysis
Answer: B) To integrate all facets of an organization’s operations
Rationale: ERP systems unify business processes and data across departments,
improving coordination and efficiency.
7. Which type of information system is specifically designed to support decision-
making at the managerial level?
o A) Transaction Processing System
o B) Executive Information System
o C) Supply Chain Management System
o D) Customer Relationship Management System
Answer: B) Executive Information System
Rationale: Executive Information Systems provide top management with easy
access to internal and external information relevant to their strategic goals.
8. What does the term "cloud computing" refer to?
o A) Storing data on physical servers
o B) Using the internet to access and store data and applications
o C) A type of software application
o D) A form of hardware
Answer: B) Using the internet to access and store data and applications
Rationale: Cloud computing allows users to store and access data and
applications over the internet instead of on local servers.
9. Which of the following is NOT a benefit of using information systems in businesses?
o A) Improved efficiency
o B) Increased decision-making speed
o C) Guaranteed profit
o D) Enhanced communication
Answer: C) Guaranteed profit
Rationale: While information systems can improve efficiency and decision-
making, they do not guarantee profitability.
10. What is the main focus of customer relationship management (CRM) systems?
o A) Inventory management
o B) Enhancing customer satisfaction and loyalty
o C) Financial reporting
, o D) Supply chain efficiency
Answer: B) Enhancing customer satisfaction and loyalty
Rationale: CRM systems are designed to manage a company’s interactions with
current and potential customers to improve relationships and drive sales.
11. What type of system would a company use to track the progress of its
manufacturing processes?
o A) Transaction Processing System
o B) Supply Chain Management System
o C) Executive Information System
o D) Decision Support System
Answer: B) Supply Chain Management System
Rationale: Supply Chain Management Systems help manage and optimize the
flow of goods, information, and finances related to a product.
12. Which of the following is a characteristic of a digital firm?
o A) Limited use of technology
o B) Reliance on traditional communication methods
o C) Integration of digital technology into all aspects of business operations
o D) A focus solely on physical goods
Answer: C) Integration of digital technology into all aspects of business
operations
Rationale: Digital firms leverage technology to enhance processes, customer
interactions, and overall business performance.
13. What is the primary purpose of an information system audit?
o A) To analyze market trends
o B) To assess the effectiveness and security of information systems
o C) To track employee productivity
o D) To evaluate customer satisfaction
Answer: B) To assess the effectiveness and security of information systems
Rationale: Information system audits evaluate whether the systems are secure,
efficient, and aligned with organizational goals.
14. In a relational database, what does the term "foreign key" refer to?
o A) A primary key in the same table
o B) A field that links to the primary key of another table
o C) A unique identifier for a record
o D) A field that stores sensitive information
Answer: B) A field that links to the primary key of another table
Rationale: A foreign key establishes a relationship between two tables in a
relational database.
15. Which of the following is an advantage of using mobile information systems?
o A) Limited accessibility
o B) Decreased employee productivity
o C) Enhanced flexibility and real-time access to information
o D) Higher operational costs
Answer: C) Enhanced flexibility and real-time access to information
Rationale: Mobile information systems provide users with the ability to access
data and perform tasks from anywhere, improving responsiveness.
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