Management Information Systems, Cdn. 6e (Laudon et al.)

Chapter 2 How Businesses Use Information Systems

1) Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information.

Answer: TRUE

Diff: 1 Type: TF Page Ref: 36

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

2) Deciding whether to introduce a new product line is the responsibility of an operational manager.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.2 How Information Systems Serve Management

3) Business processes refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 33

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

4) The performance of a business firm depends on how well its business processes are designed and coordinated.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 33

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

5) Information systems automate many steps in business processes that were already automated.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 35

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

6) Ordering a book online from Chapters.Indigo.ca or downloading a music track from iTunes are entirely new business processes based on old business models.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 35

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

7) Functional systems that operate independently of each other are becoming a thing of the future because they cannot easily share information to support cross-functional business processes.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 35

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

8) Operational management, middle management, and senior management each use a specific type of system to support the decisions they must make to run the company.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 36

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

9) At the operational level, tasks, resources, and goals are predefined and highly unstructured.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

10) Managers need TPS to monitor the status of internal operations and the firm's relations with the external environment.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 36

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

11) Transaction processing systems are often so central to a business that TPS failure for a few hours can lead to a firm's demise and perhaps that of other firms linked to it.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 37

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

12) Middle management needs systems to help with monitoring, controlling, decision making, and administrative activities.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 37

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

13) Sometimes you will hear TPS referred to as business intelligence systems because they focus on helping users make better business decisions.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 37

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

14) Digital dashboards are becoming an increasingly popular feature of DSS.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 38

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

15) Information that was previously fragmented in different systems can be easily shared across the firm to help different parts of the business work more closely together.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

16) Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 42

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

17) Supply chain management (SCM) systems help businesses manage relationships with their customers.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

18) Customer relationship management (CRM) systems help firms manage their relationships with their customers.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

19) SCM systems consolidate and integrate customer information from multiple communication channels.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

20) Transaction processing systems (TPS) enable organizations to better manage processes for capturing and applying knowledge and expertise.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

21) Knowledge management systems (KMS) also link the firm to external sources of knowledge.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

22) KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating new knowledge and integrating it into the organization.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

23) DSS applications create deep-seated changes in the way the firm conducts its business, and they are often costly to implement.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

24) Intranets and extranets are really more technology platforms than specific applications.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

25) An intranet typically centres on a portal that provides a single point of access to information from several different systems and to documents using a Web interface.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 43

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

26) End users are representatives of departments outside the information systems group for whom applications are developed.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 55

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.4 The Information Systems Function in Business

27) Transaction processing systems are most commonly used by the senior management level of an organization.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

28) A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business.

Answer: TRUE

Diff: 1 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

29) A hotel reservation system is a typical example of a management information system.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

30) Management information systems typically support non-routine decision making.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

31) Enrolling employees in benefits plans is a business process handled by the finance and accounting function.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 34

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

32) Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favour of cross-functional systems.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 35

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

33) Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

34) Most MISs use sophisticated mathematical models or statistical techniques.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 37

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

35) Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance.

Answer: TRUE

Diff: 1 Type: TF Page Ref: 38

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

36) Decision-support systems use internal information as well as information from external sources.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 38

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

37) ESSs are designed to serve the middle management of the organization.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 39

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

38) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 39

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

39) ESSs are designed primarily to solve specific problems.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 39

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

40) Information supplied by an enterprise system is structured around cross-functional business processes.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 42

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

41) Enterprise systems often include transactions with customers and vendors.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 42

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

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

Answer: TRUE

Diff: 3 Type: TF Page Ref: 42

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.2 How Information Systems Serve Management

43) Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 45

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.3 Systems That Span The Enterprise

44) CN reduced costs and improved customer service significantly because it had learned how to apply new technology to improve the processes involved in intermodal transfers.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 32

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

45) The sales and marketing function is responsible for selling the product.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 34

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

46) The sales and marketing function is responsible for assembling the product.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 34

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

47) System outputs do not include online and hard-copy reports for management and employee paycheques.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

48) Toronto-based Dundas Data Visualization's digital dashboard delivers comprehensive and accurate information for decision making.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 40

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

49) A point-of-sale system captures purchase and payment data at a physical location where goods or services are bought and sold using computers, automated cash registers, scanners, or other digital devices.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 41

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

50) Enterprise applications automate processes that do not span multiple business functions and organizational levels and may extend outside the organization.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 42

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

51) Canadian Tire uses an extranet to communicate between the home office and its associate dealerships to broadcast information, saving the company potentially millions of pieces of paper formerly used for this type of communication.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 44

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

52) The Internet has become a powerful tool for instantly mobilizing interest groups for political action and fundraising.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 44

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

53) "Interaction" jobs tend to be professional jobs in the service sector that require close coordination and collaboration.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 45

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage

54) People working together can complete a complex task faster than the same number of people working in isolation from one another.

Answer: TRUE

Diff: 2 Type: TF Page Ref: 47

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage

55) People working collaboratively in groups can come up with less innovative ideas for products, services, and administration than the same number working in isolation from one another.

Answer: FALSE

Diff: 2 Type: TF Page Ref: 47

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 3.3 Using Information Systems to Achieve Competitive Advantage

56) Identifying customers is a responsibility of the ______function.

A) finance and accounting

B) human resources

C) manufacturing and production

D) sales and marketing

Answer: D

Diff: 1 Type: MC Page Ref: 34

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

57) Producing bills of materials is a business process within the ______function.

A) finance and accounting

B) human resources

C) manufacturing and production

D) sales and marketing

Answer: C

Diff: 1 Type: MC Page Ref: 34

AACSB: Reflective thinking skills

CASE: Content

A-level Heading: 2.1 Business Processes and Information Systems

58) Which of the following is an example of a cross-functional business process?

A) identifying customers

B) creating a new product

C) assembling a product

D) paying creditors

Answer: B

Diff: 2 Type: MC Page Ref: 35

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.1 Business Processes and Information Systems

59) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?

A) ESS

B) TPS

C) MIS

D) DSS

Answer: B

Diff: 2 Type: MC Page Ref: 36

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.2 How Information Systems Serve Management

60) To monitor the status of internal operations and the firm's relations with the external environment, managers need ______systems.

A) decision-support

B) knowledge

C) transaction processing

D) management information

Answer: C

Diff: 2 Type: MC Page Ref: 36

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

61) Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?

A) ESS

B) TPS

C) MIS

D) DSS

Answer: C

Diff: 2 Type: MC Page Ref: 37

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.2 How Information Systems Serve Management

62) 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) transaction processing systems.

C) executive-support systems.

D) management information systems.

Answer: D

Diff: 3 Type: MC Page Ref: 37

AACSB: Analytic skills

CASE: Analysis

A-level Heading: 2.2 How Information Systems Serve Management

63) 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: D

Diff: 1 Type: MC Page Ref: 37

AACSB: Use of information technology

CASE: Content

A-level Heading: 2.2 How Information Systems Serve Management

64) Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to which type of system?

A) MIS