Chapter 2 - Multiple Choice

An example of a collaboration tool that supports colocated, asynchronous collaboration is

A) a team room.
B) e-mail.
C) a MUD.
D) a wall display.

Answer

A) a team room.

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) sales and marketing

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) manufacturing and production

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) creating a new product

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) TPS

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) transaction processing

Which 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

A) transaction processing systems

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) MIS

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) management information systems.

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) middle management functions.

Non-typical business problems with causes and effects that are rapidly changing are typically handled by
which type of information system ?

A) MIS
B) TPS
C) ESS
D) DSS

Answer

D) DSS

________ systems are especially suited to situations in which the procedure for arriving at a solution
may not be fully defined in advance.

A) Management information
B) Transaction processing
C) Decision-support
D) Knowledge management

Answer

C) Decision-support

Which type of system would you use to forecast the return on investment if you used new suppliers
with better delivery track records?

A) ESS
B) TPS
C) MIS
D) DSS

Answer

D) DSS

Which of the following is not one of the four main classifications for collaboration tools identified by the
space/time matrix?

A) synchronous/colocated
B) same time/remote
C) different time/remote
D) remote/collocated

Answer

D) remote/collocated

All of the following statements regarding Lotus Notes are true except for

A) It began as an e-mail and messaging client.

B) It is the most widely used collaboration tool at Fortune 1000 companies.
C) Firmwide installations at a large company require specialized servers and may cost millions of dollars
per year.
D) It provides tools for e-mail, calendars, help desk, CRM, blogs, and wikis.

Answer

A) It began as an e-mail and messaging client.

ESS are specifically designed to serve which level of the organization?

A) operational
B) end-user
C) middle management
D) senior management

Answer

D) senior management

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

A) long-range planning activities of senior management.

Which 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

B) executive support systems

Which type of system would you use to determine what trends in your supplier's industry will affect
your firm the most in five years?

A) ESS
B) TPS
C) MIS
D) DSS

Answer

A) ESS

What is the most important function of an enterprise application?

A) increasing speed of communicating

B) enabling business functions and departments to share information
C) enabling a company to work collaboratively with customers and suppliers
D) enabling cost-effective e-business processes

Answer

B) enabling business functions and departments to share information

________ are designed to support organization-wide process coordination and integration.

A) Decision-support systems
B) Management information systems
C) CRM systems
D) Enterprise applications

Answer

D) Enterprise applications

The point-of-sale Pulse system used by Domino's to maintain consistent and efficient management
functions in its restaurants is best categorized as which type of system?

A) TPS
B) DSS
C) CRM
D) more than one of the above

Answer

D) more than one of the above

You manage the IT department at a small startup Internet advertiser. You need to set up an inexpensive
system that allows customers to see real-time statistics such as views and click-throughs about their
current banner ads. What type of system will most efficiently provide a solution?

A) CRM
B) enterprise system
C) extranet
D) intranet

Answer

C) extranet

In Domino's upgraded Pulse Evolution system, it incorporated a Pizza Tracker functionality that shows
the progression of individual pizza orders. This is an example of using information systems to achieve
which business objective?

A) customer and supplier intimacy

B) survival
C) improved decision making
D) operational excellence

Answer

A) customer and supplier intimacy

The four major enterprise applications are

A) SCMs, CRMs, DSSs, and KMSs.

B) SCMs, CRMs, ESSs, and KMSs.
C) enterprise systems, SCMs, DSSs, and CRMs.
D) enterprise systems, SCMs, CRMs, and KMSs.

Answer

D) enterprise systems, SCMs, CRMs, and KMSs.

Enterprise systems are also known as ________ systems.

A) resource planning
B) enterprise resource planning
C) enterprise support
D) management information

Answer

B) enterprise resource planning

Enabling management to make better decisions regarding organizing and scheduling sourcing,
production, and distribution is a central feature of

A) SCMs
B) TPSs
C) KMSs
D) ERPs

Answer

A) SCMs
________ systems integrate supplier, manufacturer, distributor, and customer logistics processes.

A) Collaborative distribution
B) Supply-chain management
C) Reverse logistics
D) Enterprise planning

Answer

B) Supply-chain management

________ systems are designed to help firms manage their relationships with their customers.

A) CRM
B) MIS
C) CLE
D) CLU

Answer

A) CRM

Which types of systems consolidate the relevant knowledge and experience in the firm to make it
available to improve business processes and management decision making?

A) TPS
B) extranets
C) KMS
D) CRM

Answer

C) KMS

You are planning the launch of your new company, an application service provider that provides an
online timesheet and project tracking application. To best communicate with and manage your
relationship with your users, you would want to implement a(n)

A) extranet.
B) intranet.
C) KMS.
D) CMS.

Answer
D) CMS.

All of the following are direct business benefits of collaboration, except for

A) improved quality.
B) improved financial performance.
C) improved customer service.
D) improved compliance with government regulations.

Answer

D) improved compliance with government regulations

Which of the following types of system helps expedite the flow of information between the firm and its
suppliers and customers?

A) intranet
B) extranet
C) KMS
D) TPS

Answer

B) extranet

Which of the following occupations would NOT be categorized as an "interaction" job?

A) sales representative
B) business manager
C) engineer
D) operations manager

Answer

C) engineer

E-government refers to the application of ________ to digitally enable government and public sector
agencies' relationships with citizens, businesses, and other arms of government.

A) the Internet and networking technologies

B) e-commerce
C) e-business
D) any computerized technology

Answer
A) the Internet and networking technologies

Which of the following decisions requires knowledge based on collaboration and interaction?

A) How long will it take to manufacture this product?

B) Should we work with with outside vendors on new products and services?
C) In which geographical locations are our products garnering the most sales?
D) Which product design is the most efficient for the user in terms of energy use?

Answer

B) Should we work with with outside vendors on new products and services?

Buying or selling goods over the Internet is called

A) e-commerce.
B) e-business.
C) an intranet.
D) an extranet.

Answer

A) e-commerce.

The use of digital technology and the Internet to execute the major business processes in the enterprise
is called

A) e-commerce.
B) e-business.
C) enterprise applications.
D) MIS.

Answer

B) e-business.

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

A) programmer.
B) information systems manager.
C) systems analyst.
D) CTO.

Answer

C) systems analyst.
A ________ is a senior manager who oversees the use of IT in the firm.

A) CEO
B) CFO
C) CIO
D) CTO

Answer

C) CIO (Chief information officer)

The ________ helps design programs and systems to find new sources of knowledge or to make better
use of existing knowledge in organizational and management processes.

A) CTO
B) CSO
C) CKO
D) CPO

Answer

C) CKO (Chief knowledge officer)

The CPO is responsible for

A) ensuring that the company complies with existing data privacy laws.
B) making better use of existing knowledge in organizational and management processes.
C) enforcing the firm's information security policy.
D) overseeing the use of information technology in the firm.

Answer

A) ensuring that the company complies with existing data privacy laws.

Which of the following types of collaboration tools allows you to communicate with avatars using text
messaging?

A) virtual worlds
B) screen sharing
C) collaborative writing
D) large audience Webinars

Answer

A) virtual worlds
Which of the following roles falls into the duties of an information systems manager?

A) writing software instructions for computers

B) acting as liaison between the information systems group and the rest of the organization
C) translating business problems into information requirements
D) managing data entry staff

Answer

D) managing data entry staff

Which of the following statements about collaboration is not true?

A) In business, a collaboration can last as little as a few minutes.

B) Business collaboration relies on the formation of teams that are assigned a specific task or goal.
C) Successful collaboration can be achieved through technology regardless of the organization's culture
or structure.
D) One business benefit of collaboration is improved innovation.

Answer

C) Successful collaboration can be achieved through technology regardless of the organization's culture
or structure.

Which of the following is not one of the fifteen categories of collaborative software tools?

A) file sharing
B) event scheduling
C) white boarding
D) extranets

Answer

D) extranets

You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance
will be finding a way to store and disseminate their clients' continually updated branding guides, which
include multiple image files and text documents, to all of the firm's branches. What system will best
serve these needs?

A) an intranet with KMS capabilities

B) an extranet with KMS capabilities
C) a TPS with KMS capabilities
D) a CRM
Answer

B) an extranet with KMS capabilities

You have been hired by a worldwide non-profit agency to implement a system to handle their
donations. The system must be able to handle and record telephone, sms, and Internet donations,
provide up-to-the-minute reports, and create highly customizable mailing lists. In addition, event
fundraisers need to be able to quickly access a donor's information and history. Which of the following
systems will best meet these needs?

A) TPS
B) TPS with DSS capabilities
C) TPS with MIS capabilities
D) TPS with ESS capabilities

Answer

C) TPS with MIS capabilities

You have been hired by Inspiration Inc. to help improve their profit margin. Inspiration Inc. is a business
communications consultancy that services many clients in different industries throughout the United
States. The end products of the company are customized recommendations for the best use of a client's
existing resources for improving internal communications, typically delivered via documentation in
different media. The company has approximately 100 consultants, all of whom are located in their
central headquarters in Chicago. What system do you recommend to improve the company's business
processes and increase their profit margin?

A) extranet, to enable quick collaboration over the Internet , minimize the time spent communicating
with the client, and minimize the amount of paperwork needed
B) CRM, to maintain easily accessible customer records to minimize the time spent looking for client
data
C) KMS, for minimizing redundant work on similar clients
D) marketing system, for improving sales levels

Answer

A) extranet, to enable quick collaboration over the Internet , minimize the time spent communicating
with the client, and minimize the amount of paperwork needed

Chapter 2 - True/False
Operational management is responsible for directing the day-to-day operations of the business and
therefore needs transaction-level information.( True)

You would use an MIS to help decide whether to introduce a new product line.( False)

Online collaboration tools eliminate the need for global firms to have synchronous collaboration.( True)

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

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

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

Management information systems typically support nonroutine decision making.( False)

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

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

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

Most MISs use sophisticated mathematical models or statistical techniques.( False)

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

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

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

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

A Skype conference call using VOIP and webcams is an example of a remote, synchronous collaboration
tool.( True)

ESSs are designed primarily to solve specific problems.( False)

Information supplied by an enterprise system is structured around cross-functional business

processes.(True)

Enterprise systems often include transactions with customers and vendors.( True)
Supply chain management systems are more externally oriented than enterprise systems.( True)