Management Information Systems
Managing
Digital Firm, 18th Edition By Kenneth C. Laudon Jane P. Laudon
💻 MIS Practice Test (Laudon 18e Style)
Chapters 1–2: Digital Firms & Information Systems Foundations
1. What is an information system?
A. Hardware only
B. Software only
,C. A set of interrelated components that collect, process, and distribute information
D. A database only
Answer: C
Rationale: An IS includes hardware, software, data, people, and processes.
2. The main purpose of information systems in organizations is to:
A. Replace employees
B. Support decision-making and operations
C. Eliminate management
D. Increase paperwork
Answer: B
Rationale: IS improves efficiency, decision-making, and coordination.
3. A digital firm is one that:
A. Uses only computers
B. Has all business processes digitally enabled
C. Does not use paper
D. Operates only online stores
Answer: B
Rationale: Digital firms integrate digital technologies into core processes.
4. Which component is NOT part of an information system?
A. Data
B. People
C. Hardware
D. Weather
Answer: D
Rationale: Weather is external environmental data, not a system component.
5. TPS stands for:
,A. Technical Processing System
B. Transaction Processing System
C. Total Processing Software
D. Terminal Performance System
Answer: B
Rationale: TPS handles daily business transactions.
6. Which system supports middle management?
A. ESS only
B. MIS
C. TPS
D. Hardware systems
Answer: B
Rationale: MIS provides reports for middle management.
7. ESS is mainly used by:
A. Operational staff
B. Middle managers
C. Senior executives
D. Customers
Answer: C
Rationale: Executive Support Systems support top-level decision-making.
8. Data becomes information when it is:
A. Stored
B. Processed and meaningful
C. Deleted
D. Encrypted
Answer: B
Rationale: Information is processed, meaningful data.
, 9. Which of the following is an example of structured data?
A. Email text
B. Video file
C. Database table
D. Social media post
Answer: C
Rationale: Structured data is organized in rows and columns.
10. Competitive advantage means:
A. Lower salaries
B. Being better than competitors in performance or cost
C. Hiring more staff
D. Reducing technology use
Answer: B
Rationale: IS can help firms outperform competitors.
11. Cloud computing refers to:
A. Local storage only
B. Internet-based computing resources
C. Offline systems
D. Manual processing
Answer: B
Rationale: Cloud provides on-demand computing over the internet.
12. Which is an example of a business process?
A. Typing documents
B. Order fulfillment
C. Installing software
D. Browsing websites
Answer: B
Rationale: Order fulfillment is a structured business workflow.
Managing
Digital Firm, 18th Edition By Kenneth C. Laudon Jane P. Laudon
💻 MIS Practice Test (Laudon 18e Style)
Chapters 1–2: Digital Firms & Information Systems Foundations
1. What is an information system?
A. Hardware only
B. Software only
,C. A set of interrelated components that collect, process, and distribute information
D. A database only
Answer: C
Rationale: An IS includes hardware, software, data, people, and processes.
2. The main purpose of information systems in organizations is to:
A. Replace employees
B. Support decision-making and operations
C. Eliminate management
D. Increase paperwork
Answer: B
Rationale: IS improves efficiency, decision-making, and coordination.
3. A digital firm is one that:
A. Uses only computers
B. Has all business processes digitally enabled
C. Does not use paper
D. Operates only online stores
Answer: B
Rationale: Digital firms integrate digital technologies into core processes.
4. Which component is NOT part of an information system?
A. Data
B. People
C. Hardware
D. Weather
Answer: D
Rationale: Weather is external environmental data, not a system component.
5. TPS stands for:
,A. Technical Processing System
B. Transaction Processing System
C. Total Processing Software
D. Terminal Performance System
Answer: B
Rationale: TPS handles daily business transactions.
6. Which system supports middle management?
A. ESS only
B. MIS
C. TPS
D. Hardware systems
Answer: B
Rationale: MIS provides reports for middle management.
7. ESS is mainly used by:
A. Operational staff
B. Middle managers
C. Senior executives
D. Customers
Answer: C
Rationale: Executive Support Systems support top-level decision-making.
8. Data becomes information when it is:
A. Stored
B. Processed and meaningful
C. Deleted
D. Encrypted
Answer: B
Rationale: Information is processed, meaningful data.
, 9. Which of the following is an example of structured data?
A. Email text
B. Video file
C. Database table
D. Social media post
Answer: C
Rationale: Structured data is organized in rows and columns.
10. Competitive advantage means:
A. Lower salaries
B. Being better than competitors in performance or cost
C. Hiring more staff
D. Reducing technology use
Answer: B
Rationale: IS can help firms outperform competitors.
11. Cloud computing refers to:
A. Local storage only
B. Internet-based computing resources
C. Offline systems
D. Manual processing
Answer: B
Rationale: Cloud provides on-demand computing over the internet.
12. Which is an example of a business process?
A. Typing documents
B. Order fulfillment
C. Installing software
D. Browsing websites
Answer: B
Rationale: Order fulfillment is a structured business workflow.
