TESTBANK for Management Information Systems, 13th edition (Laudon/Laudon)

TESTBANK for Management Information Systems, 13th edition (Laudon/Laudon) Management Information Systems, 13e (Laudon/Laudon) Chapter 1 Information Systems in Global Business Today 1) Internet advertising is growing at approximately 10 percent a year. Answer: TRUE Diff: 3 Page Ref: 6 AACSB: Reflective thinking skills CASE: Content Objective: 1.1 2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Answer: TRUE Diff: 1 Page Ref: 11 AACSB: Reflective thinking skills CASE: Content Objective: 1.3 3) A fully digital firm produces only digital goods or services. Answer: FALSE Diff: 2 Page Ref: 11 AACSB: Reflective thinking skills CASE: Content Objective: 1.1 4) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE Diff: 1 Page Ref: 13 AACSB: Reflective thinking skills CASE: Content Objective: 1.3 5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. Answer: FALSE Diff: 2 Page Ref: 15 AACSB: Use of information technology CASE: Content Objective: 1.3 RSI is CTS 6) Computers are only part of an information system. Answer: TRUE Diff: 1 Page Ref: 17 AACSB: Use of information technology CASE: Content Objective: 1.3 7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. Answer: FALSE Diff: 1 Page Ref: 18 AACSB: Use of information technology CASE: Content Objective: 1.3 8) The dimensions of information systems are management, organizations, and information technology. Answer: TRUE Diff: 2 Page Ref: 18 AACSB: Reflective thinking skills CASE: Content Objective: 1.3 9) Knowledge workers assist with paperwork at all levels of the firm. Answer: FALSE Diff: 1 Page Ref: 19 AACSB: Reflective thinking skills CASE: Content Objective: 1.2 10) There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology. Answer: FALSE Diff: 1 Page Ref: 19 AACSB: Reflective thinking skills CASE: Content Objective: 1.2 11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. Answer: TRUE Diff: 2 Page Ref: 19-20 AACSB: Analytic skills CASE: Analysis Objective: 1.3 12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: FALSE Diff: 2 Page Ref: 19 AACSB: Reflective thinking skills CASE: Content Objective: 1.3 13) A substantial part of management responsibility is creative work driven by new knowledge and information. Answer: TRUE Diff: 1 Page Ref: 20 AACSB: Reflective thinking skills CASE: Content Objective: 1.2 14) Intranets allow firms to work easily with third-party suppliers and vendors. Answer: FALSE Diff: 2 Page Ref: 21 AACSB: Use of information technology CASE: Content Objective: 1.2 15) Investment in IT is over 50% of all invested capital. Answer: TRUE Diff: 2 Page Ref: 5 AACSB: Reflective thinking skills CASE: Content Objective: 1.1 16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. Answer: TRUE Diff: 3 Page Ref: 13, 22 AACSB: Analytic skills CASE: Analysis Objective: 1.2 17) Studies have consistently shown that firms that invest greater amounts in information technology receive greater benefits than firms that invest less. Answer: FALSE Diff: 2 Page Ref: 26 AACSB: Use of information technology CASE: Content Objective: 1.4 18) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments. Answer: TRUE Diff: 2 Page Ref: 27 AACSB: Reflective thinking skills CASE: Content Objective: 1.4 19) A firm that invests in efficient business processes is making an investment in organizational complementary assets. Answer: TRUE Diff: 2 Page Ref: 27 AACSB: Reflective thinking skills CASE: Content Objective: 1.4 20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems. Answer: TRUE Diff: 2 Page Ref: 29 AACSB: Reflective thinking skills CASE: Content Objective: 1.3 21) 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 A) improved flexibility. B) improved decision making. C) improved business practices. D) improved efficiency. Answer: B Diff: 1 Page Ref: 12 AACSB: Use of information technology CASE: Content Objective: 1.2