Test bank for management information systems managing the digital firm 16th edition by kenneth c Test bank for management information systems managing the digital firm 16th edition by kenneth c
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Management Information Systems: Managing the Digital Firm, 15e (Laudon)
Chapter 1 Information Systems in Global Business Today
1) Which of the following is not one of the six strategic business objectives of information
systems?
A) New products and services
B) Improved decision making
C) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
Difficulty: Challenging
AACSB: Information technology
Test Bank for: Management Information Systems: LO: 1-1: How are information systems transforming business, and why are they so essential for
Managing the Digital Firm, 16th Edition By Kenneth C. running and managing a business today?
Laudon, Jane P. Laudon. 2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
information enabled it to improve which of the following?
A) Compliance with regulations
B) Managerial decision making
C) Efficiency in creation of new products
D) Employee morale
E) Intimacy with its suppliers
Answer: B
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
3) Which of the following may lead to competitive advantage?
1. New products, services, and business models;
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2. Charging less for superior products; E) Operational excellence
3. Responding to customers in real time Answer: D
A) 1 only Difficulty: Moderate
B) 1 and 2 AACSB: Information technology
C) 2 and 3 LO: 1-1: How are information systems transforming business, and why are they so essential for
D) 1 and 3 running and managing a business today?
E) 1, 2, and 3
Answer: E 6) Competitors were seeking which of the following business objectives when they rushed to
Difficulty: Challenging provide ATMs after Citibank introduced the first ATMs in New York?
AACSB: Analytical thinking A) Improved efficiency
LO: 1-1: How are information systems transforming business, and why are they so essential for B) Customer and supplier intimacy
running and managing a business today? C) Survival
D) Competitive advantage
4) A firm that invests in an information system because it is a necessity of doing business does
E) Improved decision making
so because it is seeking to achieve which of the following business objectives?
Answer: C
A) Operational excellence
Difficulty: Moderate
B) Improved decision making
AACSB: Information technology
C) Competitive advantage
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Customer intimacy
running and managing a business today?
E) Survival
Answer: E
7) Which of the following is the key business metric behind the technologies implemented by
Difficulty: Moderate
Kroger, as discussed in the chapter-opening case?
AACSB: Information technology
A) Higher customer satisfaction levels
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) Survival
running and managing a business today?
C) Improved employee morale
D) Improved decision making
5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
E) Reduced cost of supplies
example of which of the following?
Answer: A
A) Improved flexibility
Difficulty: Moderate
B) Improved decision making
AACSB: Analytical thinking
C) Improved efficiency
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Customer intimacy
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running and managing a business today? 10) How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2015?
8) Which of the following is an example of a business using information systems to create a
A) About $100 million
new product?
B) About $1 billion
A) Walmart's RetailLink system
C) About $100 billion
B) The Mandarin Oriental's use of computers to keep track of guest preferences
D) About $1 trillion
C) Verizon's use of a web-based digital dashboard to provide real-time company information
E) About $10 trillion
for managers
Answer: D
D) Apple's creation of the iPod
Difficulty: Moderate
E) Kroger's use of sensors to monitor cold food storage temperatures
AACSB: Information technology
Answer: D
LO: 1-1: How are information systems transforming business, and why are they so essential for
Difficulty: Challenging
running and managing a business today?
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for 11) To make sure they stock clothes that their customers will purchase, a department store
running and managing a business today? implements a new application that analyzes spending levels at their stores and cross-references
this data to popular clothing styles. Which of the following business objectives is this
9) Walmart exemplifies the power of information systems coupled with state-of-the-art information intended to support?
business practices and supportive management to achieve which of the following? A) Customer intimacy
A) New products and services B) Survival
B) Operational efficiency C) Operational excellence
C) Survival D) Improved decision making
D) Customer intimacy E) New products and services
E) Competitive advantage Answer: C
Answer: B Difficulty: Moderate
Difficulty: Challenging AACSB: Analytical thinking
AACSB: Information technology LO: 1-1: How are information systems transforming business, and why are they so essential for
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
running and managing a business today?
12) Approximately what percent of U.S. businesses have some form of remote work program?
A) About 15 percent
B) About 25 percent
C) About 35 percent
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D) About 60 percent running and managing a business today?
E) About 75 percent
15) A firm that must invest in new information systems capabilities in order to comply with
Answer: D
federal legislation is investing to achieve which business objective?
Difficulty: Moderate
A) Customer intimacy
AACSB: Information technology
B) Operational excellence
LO: 1-1: How are information systems transforming business, and why are they so essential for
C) Survival
running and managing a business today?
D) Creation of new products
E) Improved decision making
13) All of the following are new technology-related trends in MIS except:
Answer: C
A) cloud computing.
Difficulty: Moderate
B) big data.
AACSB: Information technology
C) IoT.
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) the mobile digital platform.
running and managing a business today?
E) co-creation of business value.
Answer: E
16) The enormous volume of data generated by Internet activity, such as web traffic, email, and
Difficulty: Moderate
social media is referred to as:
AACSB: Analytical thinking
A) IoT.
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) big data.
running and managing a business today?
C) the mobile digital platform.
D) cloud computing.
14) Which of the following statements about digital firms is not true?
E) business intelligence.
A) In digital firms, time shifting and space shifting are the norm.
Answer: B
B) Today, most firms are fully digital.
Difficulty: Easy
C) Digital firms offer extraordinary opportunities for flexible global organization and
AACSB: Reflective thinking
management.
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Digital firms sense and respond to their environments more rapidly than traditional firms.
running and managing a business today?
E) Digital firms have more flexibility to survive in turbulent times.
Answer: B
17) Which of the following is not one of the current changes taking place in information
Difficulty: Challenging
systems technology?
AACSB: Reflective thinking
A) Growing business use of big data
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) Growth in cloud computing
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Management Information Systems: Managing the Digital Firm, 15e (Laudon)
Chapter 1 Information Systems in Global Business Today
1) Which of the following is not one of the six strategic business objectives of information
systems?
A) New products and services
B) Improved decision making
C) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
Difficulty: Challenging
AACSB: Information technology
Test Bank for: Management Information Systems: LO: 1-1: How are information systems transforming business, and why are they so essential for
Managing the Digital Firm, 16th Edition By Kenneth C. running and managing a business today?
Laudon, Jane P. Laudon. 2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
information enabled it to improve which of the following?
A) Compliance with regulations
B) Managerial decision making
C) Efficiency in creation of new products
D) Employee morale
E) Intimacy with its suppliers
Answer: B
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
3) Which of the following may lead to competitive advantage?
1. New products, services, and business models;
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2. Charging less for superior products; E) Operational excellence
3. Responding to customers in real time Answer: D
A) 1 only Difficulty: Moderate
B) 1 and 2 AACSB: Information technology
C) 2 and 3 LO: 1-1: How are information systems transforming business, and why are they so essential for
D) 1 and 3 running and managing a business today?
E) 1, 2, and 3
Answer: E 6) Competitors were seeking which of the following business objectives when they rushed to
Difficulty: Challenging provide ATMs after Citibank introduced the first ATMs in New York?
AACSB: Analytical thinking A) Improved efficiency
LO: 1-1: How are information systems transforming business, and why are they so essential for B) Customer and supplier intimacy
running and managing a business today? C) Survival
D) Competitive advantage
4) A firm that invests in an information system because it is a necessity of doing business does
E) Improved decision making
so because it is seeking to achieve which of the following business objectives?
Answer: C
A) Operational excellence
Difficulty: Moderate
B) Improved decision making
AACSB: Information technology
C) Competitive advantage
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Customer intimacy
running and managing a business today?
E) Survival
Answer: E
7) Which of the following is the key business metric behind the technologies implemented by
Difficulty: Moderate
Kroger, as discussed in the chapter-opening case?
AACSB: Information technology
A) Higher customer satisfaction levels
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) Survival
running and managing a business today?
C) Improved employee morale
D) Improved decision making
5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
E) Reduced cost of supplies
example of which of the following?
Answer: A
A) Improved flexibility
Difficulty: Moderate
B) Improved decision making
AACSB: Analytical thinking
C) Improved efficiency
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Customer intimacy
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running and managing a business today? 10) How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2015?
8) Which of the following is an example of a business using information systems to create a
A) About $100 million
new product?
B) About $1 billion
A) Walmart's RetailLink system
C) About $100 billion
B) The Mandarin Oriental's use of computers to keep track of guest preferences
D) About $1 trillion
C) Verizon's use of a web-based digital dashboard to provide real-time company information
E) About $10 trillion
for managers
Answer: D
D) Apple's creation of the iPod
Difficulty: Moderate
E) Kroger's use of sensors to monitor cold food storage temperatures
AACSB: Information technology
Answer: D
LO: 1-1: How are information systems transforming business, and why are they so essential for
Difficulty: Challenging
running and managing a business today?
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are they so essential for 11) To make sure they stock clothes that their customers will purchase, a department store
running and managing a business today? implements a new application that analyzes spending levels at their stores and cross-references
this data to popular clothing styles. Which of the following business objectives is this
9) Walmart exemplifies the power of information systems coupled with state-of-the-art information intended to support?
business practices and supportive management to achieve which of the following? A) Customer intimacy
A) New products and services B) Survival
B) Operational efficiency C) Operational excellence
C) Survival D) Improved decision making
D) Customer intimacy E) New products and services
E) Competitive advantage Answer: C
Answer: B Difficulty: Moderate
Difficulty: Challenging AACSB: Analytical thinking
AACSB: Information technology LO: 1-1: How are information systems transforming business, and why are they so essential for
LO: 1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?
running and managing a business today?
12) Approximately what percent of U.S. businesses have some form of remote work program?
A) About 15 percent
B) About 25 percent
C) About 35 percent
Test Bank Page 5 Test Bank Page 6
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D) About 60 percent running and managing a business today?
E) About 75 percent
15) A firm that must invest in new information systems capabilities in order to comply with
Answer: D
federal legislation is investing to achieve which business objective?
Difficulty: Moderate
A) Customer intimacy
AACSB: Information technology
B) Operational excellence
LO: 1-1: How are information systems transforming business, and why are they so essential for
C) Survival
running and managing a business today?
D) Creation of new products
E) Improved decision making
13) All of the following are new technology-related trends in MIS except:
Answer: C
A) cloud computing.
Difficulty: Moderate
B) big data.
AACSB: Information technology
C) IoT.
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) the mobile digital platform.
running and managing a business today?
E) co-creation of business value.
Answer: E
16) The enormous volume of data generated by Internet activity, such as web traffic, email, and
Difficulty: Moderate
social media is referred to as:
AACSB: Analytical thinking
A) IoT.
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) big data.
running and managing a business today?
C) the mobile digital platform.
D) cloud computing.
14) Which of the following statements about digital firms is not true?
E) business intelligence.
A) In digital firms, time shifting and space shifting are the norm.
Answer: B
B) Today, most firms are fully digital.
Difficulty: Easy
C) Digital firms offer extraordinary opportunities for flexible global organization and
AACSB: Reflective thinking
management.
LO: 1-1: How are information systems transforming business, and why are they so essential for
D) Digital firms sense and respond to their environments more rapidly than traditional firms.
running and managing a business today?
E) Digital firms have more flexibility to survive in turbulent times.
Answer: B
17) Which of the following is not one of the current changes taking place in information
Difficulty: Challenging
systems technology?
AACSB: Reflective thinking
A) Growing business use of big data
LO: 1-1: How are information systems transforming business, and why are they so essential for
B) Growth in cloud computing
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