Test Bank for: Management Information Systems: Managing the Digital Firm, 16th Edition By Kenneth C. Laudon, Jane P. Laudon.

Test Bank for: Management Information Systems:
Managing the Digital Firm, 16th Edition By Kenneth C.
Laudon, Jane P. Laudon.

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
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

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;
2. Charging less for superior products;
3. Responding to customers in real time
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3
Answer: E
Difficulty: Challenging

1

,AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

4) A firm that invests in an information system because it is a necessity of doing business does
so because it is seeking to achieve which of the following business objectives?
A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival
Answer: E
Difficulty: Moderate
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?

5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
example of which of the following?
A) Improved flexibility
B) Improved decision making
C) Improved efficiency
D) Customer intimacy
E) Operational excellence
Answer: D
Difficulty: Moderate
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?

6) Competitors were seeking which of the following business objectives when they rushed to
provide ATMs after Citibank introduced the first ATMs in New York?
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
D) Competitive advantage
E) Improved decision making
Answer: C
Difficulty: Moderate
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?




2

,7) Which’of’the’following’is’the’key’business’metric’behind’the’technologies’implemented’by’
Kroger,’as’discussed’in’the’chapter-opening’case?
A) Higher’customer’satisfaction’levels
B) Survival
C) Improved’employee’morale
D) Improved’decision’making
E) Reduced’cost’of’supplies’
Answer:’ A
Difficulty:’ Moderate’AACSB
:’ Analytical’thinking
LO:’ 1-
1:’How’are’information’systems’transforming’business,’and’why’are’they’so’essential’for’running’a
nd’managing’a’business’today?

8) Which’of’the’following’is’an’example’of’a’business’using’information’systems’to’create’a’
new’product?
A) Walmart's’RetailLink’system
B) The’Mandarin’Oriental's’use’of’computers’to’keep’track’of’guest’preferences
C) Verizon's’use’of’a’web-based’digital’dashboard’to’provide’real-
time’company’information’for’managers
D) Apple's’creation’of’the’iPod
E) Kroger's’use’of’sensors’to’monitor’cold’food’storage’temperatures’
Answer:’ D
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?

9) Walmart’exemplifies’the’power’of’information’systems’coupled’with’state-of-the-
art’business’practices’and’supportive’management’to’achieve’which’of’the’following?
A) New’products’and’services
B) Operational’efficiency
C) Survival
D) Customer’intimacy
E) Competitive’advantage
’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

, 10) How’much’did’American’businesses’spend’on’information’systems’hardware,’software,’and’
telecommunications’equipment’in’2015?
A) About’$100’million
B) About’$1’billion
C) About’$100’billion
D) About’$1’trillion
E) About’$10’trillion’
Answer:’ D’Difficult
y:’ Moderate
AACSB:’ Information’technology
LO:’ 1-
1:’How’are’information’systems’transforming’business,’and’why’are’they’so’essential’for’running’a
nd’managing’a’business’today?

11) To’make’sure’they’stock’clothes’that’their’customers’will’purchase,’a’department’store’impl
ements’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’thi
s’information’intended’to’support?
A) Customer’intimacy
B) Survival
C) Operational’excellence
D) Improved’decision’making
E) New’products’and’services’
Answer:’ C
Difficulty:’ Moderate’AACSB
:’ Analytical’thinking
LO:’ 1-
1:’How’are’information’systems’transforming’business,’and’why’are’they’so’essential’for’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
D) About’60’percent
E) About’75’percent’
Answer:’ D’Difficult
y:’ Moderate
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?




4