Essentials of MIS, 12e (Laudon)
Chapter 1 Business Information Systems in Your Career
1) As discussed in the chapter opening case, the San Francisco Giants are taking advantage of
wireless technology to do which of the following?
A) Improve decision making
B) Achieve operational excellence
C) Implement dynamic ticket pricing
D) Perform data analysis
E) Enhance fan experience
Answer: E
Difficulty: 3: Challenging
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
2) Journalist Thomas Friedman's description of the world as "flat" refers to:
A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
E) the increased use of global currencies.
Answer: A
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
3) The six important business objectives of information system investment include all of the
following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
E) new products.
Answer: B
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
1
Copyright © 2017 Pearson Education, Inc.
,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) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy
Answer: A
Difficulty: 2: Moderate
AACSB: Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
5) Walmart exemplifies the power of information systems coupled with excellent business
practices and supportive management to achieve which of the following?
A) New business models
B) Operational efficiency
C) Customer intimacy
D) Competitive advantage
E) Survival
Answer: B
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1.1: Why are information systems so essential for running and managing a business today?
6) Verizon's implementation of a web-based digital dashboard to provide managers with real-
time information, such as customer complaints, is an example of:
A) improved flexibility.
B) improved decision making.
C) competitive advantage.
D) supplier intimacy.
E) a new product.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
7) Which business objective were competitors seeking when they rushed to provide ATMs as
well 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: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
2
Copyright © 2017 Pearson Education, Inc.
,8) All of the following describe the effects of globalization except:
A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) ability to find low-cost suppliers.
D) increases in transaction costs.
E) replication of business models in multiple countries.
Answer: D
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1.1: Why are information systems so essential for running and managing a business today?
9) A firm that must invest in a new information system in order to comply with federal
legislation is investing to achieve which of the following business objectives?
A) Customer intimacy
B) Operational excellence
C) New products.
D) Improved decision making
E) Survival
Answer: E
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
10) Which of the following is an example of a business using information systems to create new
products and services?
A) Apple's creation of the iPad
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced
C) The Mandarin Oriental's use of computers to keep track of guests' preferences
D) Verizon's web-based digital dashboard providing real-time company information for
managers
E) Walmart's Retail Link's system
Answer: A
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
3
Copyright © 2017 Pearson Education, Inc.
, 11) An example of a business using information systems for supplier intimacy is:
A) Apple's creation of the iPad.
B) JCPenney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
C) Citibank's ATM system.
D) Verizon's web-based digital dashboard providing real-time company information for
managers.
E) the Mandarin Oriental's use of computers to keep track of guests' preferences.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
12) To make sure they stock clothes that their customers will purchase, a department store
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
information intended to support?
A) New products
B) Survival
C) Customer intimacy
D) Improved decision making
E) Operational excellence
Answer: C
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
13) Telepresence is an example of which of the following?
A) Business intelligence
B) Social business
C) IoT
D) Mobile digital platform
E) Virtual meeting
Answer: E
Difficulty: 1: Easy
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
4
Copyright © 2017 Pearson Education, Inc.
Chapter 1 Business Information Systems in Your Career
1) As discussed in the chapter opening case, the San Francisco Giants are taking advantage of
wireless technology to do which of the following?
A) Improve decision making
B) Achieve operational excellence
C) Implement dynamic ticket pricing
D) Perform data analysis
E) Enhance fan experience
Answer: E
Difficulty: 3: Challenging
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
2) Journalist Thomas Friedman's description of the world as "flat" refers to:
A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
E) the increased use of global currencies.
Answer: A
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
3) The six important business objectives of information system investment include all of the
following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
E) new products.
Answer: B
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
1
Copyright © 2017 Pearson Education, Inc.
,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) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy
Answer: A
Difficulty: 2: Moderate
AACSB: Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
5) Walmart exemplifies the power of information systems coupled with excellent business
practices and supportive management to achieve which of the following?
A) New business models
B) Operational efficiency
C) Customer intimacy
D) Competitive advantage
E) Survival
Answer: B
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1.1: Why are information systems so essential for running and managing a business today?
6) Verizon's implementation of a web-based digital dashboard to provide managers with real-
time information, such as customer complaints, is an example of:
A) improved flexibility.
B) improved decision making.
C) competitive advantage.
D) supplier intimacy.
E) a new product.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
7) Which business objective were competitors seeking when they rushed to provide ATMs as
well 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: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
2
Copyright © 2017 Pearson Education, Inc.
,8) All of the following describe the effects of globalization except:
A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) ability to find low-cost suppliers.
D) increases in transaction costs.
E) replication of business models in multiple countries.
Answer: D
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1.1: Why are information systems so essential for running and managing a business today?
9) A firm that must invest in a new information system in order to comply with federal
legislation is investing to achieve which of the following business objectives?
A) Customer intimacy
B) Operational excellence
C) New products.
D) Improved decision making
E) Survival
Answer: E
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
10) Which of the following is an example of a business using information systems to create new
products and services?
A) Apple's creation of the iPad
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced
C) The Mandarin Oriental's use of computers to keep track of guests' preferences
D) Verizon's web-based digital dashboard providing real-time company information for
managers
E) Walmart's Retail Link's system
Answer: A
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
3
Copyright © 2017 Pearson Education, Inc.
, 11) An example of a business using information systems for supplier intimacy is:
A) Apple's creation of the iPad.
B) JCPenney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
C) Citibank's ATM system.
D) Verizon's web-based digital dashboard providing real-time company information for
managers.
E) the Mandarin Oriental's use of computers to keep track of guests' preferences.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
12) To make sure they stock clothes that their customers will purchase, a department store
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
information intended to support?
A) New products
B) Survival
C) Customer intimacy
D) Improved decision making
E) Operational excellence
Answer: C
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1.1: Why are information systems so essential for running and managing a business today?
13) Telepresence is an example of which of the following?
A) Business intelligence
B) Social business
C) IoT
D) Mobile digital platform
E) Virtual meeting
Answer: E
Difficulty: 1: Easy
AACSB: Application of Knowledge
LO: 1.1: Why are information systems so essential for running and managing a business today?
4
Copyright © 2017 Pearson Education, Inc.
