FPT University

Course TitIe- ITA 301

1) The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and

1. improved flexibility.
2. improved decision making.
3. improved business practices.
4. improved efficiency.

2. Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?

2. 1. improved flexibility
   2. improved business practices
   3. competitive advantage
   4. survival
3. The use of information systems because of necessity describes the business objective of
   1. survival.
   2. improved business practices.
   3. competitive advantage.
   4. improved flexibility.

4. Which of the following choices 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. 1 only
   2. 1 and 2
   3. 2 and 3
   4. 1, 2, and 3
5. Verizon's implementation of a Web-based digital dashboard to provide managers with real- time information such as customer complaints is an example of

1. 1. improved flexibility.
   2. improved decision making.
   3. improved efficiency.

1. 4. customer and supplier intimacy.

6. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
   1. improved efficiency
   2. customer and supplier intimacy
   3. survival
   4. competitive advantage

7. An information system can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support
   1. decision making and control in an organization.
   2. communications and data flow.
   3. managers analyzing the organization's raw data.
   4. the creation of new products and services.

8. The three activities in an information system that produce the information organizations use to control operations are
   1. information retrieval, research, and analysis.
   2. input, output, and feedback.
   3. input, processing, and output.
   4. data analysis, processing, and feedback.

9. Order data for baseball tickets and bar code data are examples of
   1. raw input.
   2. raw output.
   3. customer and product data.
   4. sales information.

10. The average number of tickets sold daily online is an example of
    1. input.
    2. raw data.
    3. meaningful information.
    4. feedback.

11. Output
    1. is feedback that has been processed to create meaningful information.
    2. is information that is returned to appropriate members of the organization to help them evaluate the input stage.
    3. transfers data to the people who will use it or to the activities for which it will be used.
    4. transfers processed information to the people who will use it or to the activities for which it will be used.

12. Converting raw data into a more meaningful form is called
    1. capturing.
    2. processing.
    3. organizing.
    4. feedback.

13. An example of raw data from a national chain of automobile stores would be
    1. an average of 13 Toyotas are sold daily in Kentucky.
    2. 30 percent increase in Toyota RAV 4 sales during September in Kentucky.
    3. 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
    4. all of the above.

14. The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called
    1. information systems literacy.
    2. information systems architecture.
    3. management information systems.
    4. information technology infrastructure.

15. In a hierarchical organization, the upper levels consist of
    1. managerial and professional employees.
    2. managerial, professional, and technical employees.
    3. professional and operational employees.
    4. managerial, professional, and operational employees.

16. Which of the six strategic business objectives did the NBA's use of Synergy Sports

Technology help to achieve?

16. 1. customer and supplier intimacy
    2. improved decision making
    3. new products and services
    4. operational excellence
17. The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its
    1. culture.
    2. environment.
    3. atmosphere.
    4. values.

18. Thomas Friedman's declaration that the world was now "flat" meant that
    1. the Internet has reduced the economic advantages of developed countries.
    2. globalization is starting to offer less advantage to large corporations.
    3. the global economy is increasingly commanded by fewer and larger corporations.
    4. global capitalism is homogenizing culture and business practices throughout the world.

19. Data management technology consists of the
    1. physical hardware and media used by an organization for storing data.
    2. detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
    3. software governing the organization of data on physical storage media.
    4. hardware and software used to transfer data.

20. The hardware and software used to transfer data in an organization is called
    1. data management technology.
    2. networking and data management technology.
    3. data and telecommunications technology.
    4. networking and telecommunications technology.

21. Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's
    1. data management environment.
    2. networked environment.
    3. IT infrastructure.
    4. information system.

22. An example of a business using information systems to create new products and services is
    1. Wal-Mart's RetailLink system.
    2. the Mandarin Oriental hotel's customer-preference tracking system.
    3. Verizon's Web-based digital dashboard.
    4. Apple Inc.'s iPod.

23. An example of a business using information systems to attain operational excellence is
    1. Wal-Mart's RetailLink system.
    2. the Mandarin Oriental hotel's customer-preference tracking system.
    3. Verizon's Web-based digital dashboard.
    4. Apple Inc.'s iPod.

24. An example of a business using information systems for customer and supplier intimacy is
    1. Wal-Mart's RetailLink system.
    2. the Mandarin Oriental hotel's customer-preference tracking system.
    3. Verizon's Web-based digital dashboard.
    4. Apple Inc.'s iPod.

25. Maintaining the organization's financial records is a central purpose of which main business function?
    1. manufacturing and accounting
    2. finance and accounting
    3. sales and manufacturing
    4. finance and sales
26. Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain's efforts to use information technology to develop a loyal

customer base, what would be the best use of information technology from the list below?

1. 1. Use IT to increase supplier loyalty.
   2. Use IT to increase operational efficiency.
   3. Use IT to create new products and business models.
   4. Use IT to help survive government reporting requirements.
   5. Use IT to achieve customer intimacy.

27. The fact that online advertising revenues are growing at 25 percent a year, while offline traditional advertising revenues are growing at about 5 percent a year, suggests that
    1. Internet advertising is very inexpensive.
    2. offline traditional advertising is not very effective.
    3. the Internet is transforming the traditional advertising business model.
    4. new technologies are more efficient at selling to customers.

28. Toyota Motor Company's vehicle orders management system allows it to improve efficiency by basing vehicle production on
    1. superior forecasts of regional demand.
    2. actual customer orders.
    3. improved decision making.
    4. customer preferences.

29. In a business hierarchy, the level that is responsible for monitoring the daily activities of the business is
    1. middle management.
    2. service workers.
    3. production management.
    4. operational management.

30. Which of the following are environmental actors that interact with an organization and its information systems?
    1. customers
    2. suppliers
    3. regulatory agencies
    4. all of the above

31. From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called
    1. the information value chain.
    2. the IT value chain.
    3. information processing.
    4. feedback.

32. A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets?
    1. managerial
    2. governmental
    3. social
    4. organizational
33. Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
    1. invest in technology.
    2. adopt a new business model.
    3. invest in complementary assets.
    4. modernize their information value chain.

34. An example of an organizational complementary asset is
    1. using the appropriate business model.
    2. a collaborative work environment.
    3. laws and regulations.
    4. all of the above.

35. An example of a social complementary asset is
    1. technology and service firms in adjacent markets.
    2. training programs.
    3. distributed decision-making rights.
    4. all of the above.

36. Disciplines that contribute to the technical approach to information systems are:
    1. computer science, engineering, and networking.

1. 2. operations research, management science, and computer science.
   3. engineering, utilization management, and computer science.
   4. management science, computer science, and engineering.

37. The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is
    1. management science.
    2. MIS.
    3. operations research.
    4. utilization management.

38. Sociologists study information systems with an eye to understanding
    1. how systems affect individuals, groups, and organizations.
    2. how human decision makers perceive and use formal information.
    3. how new information systems change the control and cost structures within the firm.
    4. the production of digital goods.

39. Psychologists study information systems with an eye to understanding
    1. how systems affect individuals, groups, and organizations.
    2. how human decision makers perceive and use formal information.
    3. how new information systems change the control and cost structures within the firm.
    4. the production of digital goods.

40. The costs for firms operating on a global scale have been drastically reduced by
    1. networking technology.
    2. investments in organizational complementary assets.
    3. the Internet.
    4. the rise of digital content.

41. Which of the following are key corporate assets?
    1. intellectual property, core competencies, and financial and human assets
    2. production technologies and business processes for sales, marketing, and finance
    3. knowledge and the firm's tangible assets, such as goods or services
    4. time and knowledge

42. Overproduction or underproduction of goods and services, misallocation of resources, and poor response times are the results of a firm's having
    1. poor relationships with suppliers.
    2. poor relationships with customers.
    3. inadequate information.
    4. a surplus of information.

43. A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?
    1. customer intimacy
    2. operational excellence
    3. survival
    4. improved reporting
44. Which of the following would NOT be used as an input for an information system?
    1. digital dashboard
    2. handheld computer
    3. bar-code scanner
    4. cell phone
45. Which field of study focuses on both a behavioral and technical understanding of information systems?
    1. sociology
    2. operations research
    3. economics
    4. management information systems
46. The three principle levels within a business organization hierarchy are
    1. senior management, operational management, and service workers.
    2. senior management, middle management, and operational management.
    3. senior management, operational management, and information systems.
    4. senior management, middle management, and service workers.

47. Engineers, scientists, or architects, who design new products or services for a firm, belong to which level of a business hierarchy?
    1. middle management
    2. production workers
    3. knowledge workers
    4. data workers
48. Which main business function is responsible for maintaining employee records?
    1. sales and marketing
    2. human resources
    3. finance and accounting
    4. manufacturing and production
49. Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?
    1. the specification of procedures for identifying packages with sender and recipient information
    2. monitoring service levels
    3. promoting the company strategy of low-cost, superior service
    4. the use of handheld computers and networks for managing package delivery
50. A managerial element in the UPS tracking system described in the chapter is
    1. taking inventory.
    2. providing package status reports to customers.
    3. the decision to use automation.
    4. in-house package tracking software.

51. Tata Motor's new information system, enabling it to automate processes in product design and production engineering planning, is best categorized as a(n)
    1. KMS
    2. TPS
    3. DSS
    4. ESS
52. Identifying customers is a responsibility of the                                    function.
    1. finance and accounting
    2. human resources

52. 3. manufacturing and production
    4. sales and marketing
53. Producing bills of materials is a business process within the                                        function.
    1. finance and accounting
    2. human resources
    3. manufacturing and production
    4. sales and marketing
54. Which of the following is an example of a cross-functional business process?
    1. identifying customers
    2. creating a new product
    3. assembling a product
    4. paying creditors
55. Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?
    1. ESS
    2. TPS
    3. MIS
    4. DSS
56. To monitor the status of internal operations and the firm's relations with the external environment, managers need                                                          systems.
    1. decision-support
    2. knowledge
    3. transaction processing
    4. management information
57. Which systems are typically a major source of data for other systems?
    1. transaction processing systems
    2. management information systems
    3. executive support systems
    4. decision-support systems

58. Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?
    1. ESS
    2. TPS
    3. MIS
    4. DSS
59. 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
    1. knowledge management systems.
    2. transaction processing systems.
    3. executive-support systems.
    4. management information systems.

60. The term "management information systems" designates a specific category of information systems serving:
    1. integrated data processing throughout the firm.
    2. transaction process reporting.
    3. employees with online access to historical records.
    4. middle management functions.

61. Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to which type of system?
    1. MIS
    2. TPS
    3. ESS
    4. DSS
62.                        systems are especially suited to situations in which the procedure for arriving at a solution may not be fully defined in advance.
    1. Management information
    2. Transaction processing
    3. Decision-support
    4. Knowledge management

63. Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?
    1. ESS
    2. TPS
    3. MIS
    4. DSS
64. Decision-support systems are often referred to as business                                   systems.
    1. information
    2. intelligence
    3. analysis
    4. modeling

65. Which benefits of AirCanada's new Maintenix software best illustrate the DSS capabilities of their new information system?
    1. enhanced visibility of fleetwide data
    2. support of existing business model and enterprise resource planning and financial software
    3. increased operational efficiencies
    4. ability to match work requirements against changing locations and flight schedules
66. ESS are specifically designed to serve which level of the organization?
    1. operational
    2. end-user
    3. middle management
    4. senior management
67. Executive support systems are information systems that support the
    1. long-range planning activities of senior management.
    2. knowledge and data workers in an organization.
    3. decision-making and administrative activities of middle managers.
    4. day-to-day processes of production.

68. Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content?
    1. transaction processing systems
    2. executive support systems

68. 3. management information systems
    4. decision-support systems
69. 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?
    1. ESS
    2. TPS
    3. MIS
    4. DSS
70. What is the most important function of an enterprise application?
    1. increasing speed of communicating
    2. enabling business functions and departments to share information
    3. enabling a company to work collaboratively with customers and suppliers
    4. enabling cost-effective e-business processes
71.                        are designed to support organization-wide process coordination and integration.
    1. Decision-support systems
    2. Management information systems
    3. CRM systems
    4. Enterprise applications
72. A(n)                         system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business.
    1. transaction
    2. enterprise
    3. automatic reporting
    4. management information
73. 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. Which type of system will most efficiently provide a solution?
    1. CRM
    2. enterprise system

73. 3. extranet
    4. intranet
74. The Smart Site Solution system used by Johnny's Lunch to help identify the best locations to open new franchises is best categorized as a
    1. POS system
    2. DSS
    3. CRM
    4. KMS

75. The MICROS system used by Johnny's Lunch to captures sales transaction data and help monitor inventory, control waste, and adhere to government regulations is best categorized as a(n)
    1. TPS
    2. ESS
    3. CRM
    4. KMS
76. The four major enterprise applications are
    1. SCMs, CRMs, DSSs, and KMSs.
    2. SCMs, CRMs, ESSs, and KMSs.
    3. enterprise systems, SCMs, DSSs, and CRMs.
    4. enterprise systems, SCMs, CRMs, and KMSs.

77. Enterprise systems are also known as                                 systems.
    1. resource planning
    2. enterprise resource planning
    3. enterprise support
    4. management information
78. Enabling management to make better decisions regarding organizing and scheduling sourcing, production, and distribution is a central feature of
    1. SCMs
    2. TPSs
    3. KMSs
    4. ERPs

79.                        systems integrate supplier, manufacturer, distributor, and customer logistics processes.
    1. Collaborative distribution
    2. Supply-chain management
    3. Reverse logistics
    4. Enterprise planning
80.                        uses a set of integrated applications to address all aspects of the customer relationship.
    1. CRM
    2. MIS
    3. CLE
    4. CLU
81. 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?
    1. TPS
    2. Extranets
    3. KMS
    4. CRM
82. An information system for                               would NOT be categorized as a KMS.
    1. distributing documents
    2. documenting the expertise of company specialists
    3. enabling the discovery of new product applications
    4. discovering new sales channels for a product
83. Which type of information system is an intranet most easily adapted to?
    1. CRM
    2. MIS
    3. TPS
    4. KMS
84. Which of the following types of system helps expedite the flow of information between the firm and its suppliers and customers?

84. 1. intranet
    2. extranet
    3. KMS
    4. TPS
85. Which of the following occupations would NOT be categorized as an "interaction" job?
    1. sales representative
    2. business manager
    3. engineer
    4. operations manager
86. Which of the following decisions requires knowledge based on collaboration and interaction?
    1. How long will it take to manufacture this product?
    2. Should we collaborate with outside vendors on new products and services?
    3. In which geographical locations are our products garnering the most sales?
    4. Which product design is the most efficient for the user in terms of energy use?

87. E-government refers to the application of                                 to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government.
    1. the Internet and networking technologies
    2. e-commerce
    3. e-business
    4. any computerized technology
88. Buying or selling goods over the Internet is called
    1. e-commerce.
    2. e-business.
    3. an intranet.
    4. an extranet.

89. The use of digital technology and the Internet to execute the major business processes in the enterprise is called
    1. e-commerce.
    2. e-business.

89. 3. enterprise applications.
    4. MIS.
90. The principal liaison between the information systems groups and the rest of the organization is a(n)
    1. programmer.
    2. information systems manager.
    3. systems analyst.
    4. CTO.
91. A                         is a senior manager who oversees the use of IT in the firm.
    1. CEO
    2. CFO
    3. CIO
    4. CTO
92. 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.
    1. CTO
    2. CSO
    3. CKO
    4. CPO
93. The CPO is responsible for
    1. ensuring that the company complies with existing data privacy laws.
    2. making better use of existing knowledge in organizational and management processes.
    3. enforcing the firm's information security policy.
    4. overseeing the use of information technology in the firm.

94. The advantage of a having a centralized information services department that operates as a separate department similar to other departments is that
    1. this is more likely to produce more compatible systems and more coherent long-term systems development plans.
    2. this lowers costs of technology purchases.
    3. systems are built that directly address that function's business needs.
    4. systems are built that can function independently and more efficiently.

95. Which of the following roles falls into the duties of an information systems manager?
    1. writing software instructions for computers
    2. acting as liaison between the information systems group and the rest of the organization
    3. translating business problems into information requirements
    4. managing data entry staff
96. Which of the following types of organizing the information systems function would you be most likely to find in a small company with 20 employees?
    1. as departments within each functional area
    2. as a separate, centralized department
    3. represented within each major division of the company
    4. none of the above
97. Which of the following types of organizing the information systems function would you be most likely to find in a very large, multinational corporation?
    1. as departments within each functional area
    2. as a separate, centralized department
    3. represented within each major division of the company
    4. none of the above
98. 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?
    1. an intranet with KMS capabilities
    2. an extranet with KMS capabilities
    3. a TPS with KMS capabilities
    4. a CRM
99. You have been hired by a non-profit agency to implement a system to handle their donations. Event fundraisers need to be able to quickly access a donor's information and history. The marketing department needs to be able to create customized mailing lists, in order to send different messages to different types of donors. What system will best meet these needs?
    1. TPS
    2. TPS with DSS capabilities
    3. TPS with MIS capabilities