Test Bank for: Management Information Systems:
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Managing the Digital Firm, 17th Edition By Kenneth C.
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Laudon, Jane P. Laudon.
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Test Bank
v Page 1
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,Management Information Systems: Managing the Digital Firm, 17e (Laudon)
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Chapter 1 Information Systems in Global Business Today
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1) Which of the following is not one of the six strategic business objectives of information
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systems?
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A) New products and services
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B) Improved decision making
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C) Competitive advantage
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D) Improved employee morale
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E) Survival
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Answer: D vv
Difficulty: Challenging vv
AACSB: Information technology
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LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
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information enabled it to improve which of the following?
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A) Compliance with regulations
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B) Managerial decision making
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C) Efficiency in creation of new products
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D) Employee morale
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E) Intimacy with its suppliers
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Answer: B vv
Difficulty: Challenging vv
AACSB: Information technology
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LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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3) Which of the following may lead to competitive advantage?
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1. New products, services, and business models;
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Test Bank v Page 2
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,2. Charging less for superior products;
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3. Responding to customers in real time
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A) 1 only
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B) 1 and 2
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C) 2 and 3
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D) 1 and 3
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E) 1, 2, and 3
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Answer: E vv
Difficulty: Challenging vv
AACSB: Analytical thinking vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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4) A firm that invests in an information system because it is a necessity of doing business does
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so because it is seeking to achieve which of the following business objectives?
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A) Operational excellence
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B) Improved decision making
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C) Competitive advantage
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D) Customer intimacy
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E) Survival
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Answer: E vv
Difficulty: Moderate vv
AACSB: Information technology vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
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example of which of the following?
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A) Improved flexibility
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B) Improved decision making
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C) Improved efficiency
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D) Customer intimacy
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Test Bank v Page 3 v
, E) Operational excellence
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Answer: D vv
Difficulty: Moderate vv
AACSB: Information technology
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LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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6) Competitors were seeking which of the following business objectives when they rushed to
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provide ATMs after Citibank introduced the first ATMs in New York?
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A) Improved efficiency
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B) Customer and supplier intimacy
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C) Survival
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D) Competitive advantage
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E) Improved decision making
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Answer: C vv
Difficulty: Moderate vv
AACSB: Information technology
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
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running and managing a business today?
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7) Which of the following is the key business metric behind the technologies implemented by
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Kroger, as discussed in the chapter-opening case?
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A) Higher customer satisfaction levels
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B) Survival
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C) Improved employee morale
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D) Improved decision making
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E) Reduced cost of supplies
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Answer: A vv
Difficulty: Moderate vv
AACSB: Analytical thinking
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LO: 1-1: How are information systems transforming business, and why are they so essential for
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Test Bank v Page 4 v
v v v v v
Managing the Digital Firm, 17th Edition By Kenneth C.
v v v v v v v v v
Laudon, Jane P. Laudon.
v v v v
Test Bank
v Page 1
v
,Management Information Systems: Managing the Digital Firm, 17e (Laudon)
v v v v v v v v
Chapter 1 Information Systems in Global Business Today
v vvv v v v v v
1) Which of the following is not one of the six strategic business objectives of information
v v v v v v v v v v v v v v v
systems?
v
A) New products and services
v v v v
B) Improved decision making
v v v
C) Competitive advantage
v v
D) Improved employee morale
v v v
E) Survival
v
Answer: D vv
Difficulty: Challenging vv
AACSB: Information technology
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
v v v v v v
2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
v v v v v v v v v v v v v
information enabled it to improve which of the following?
v v v v v v v v v
A) Compliance with regulations
v v v
B) Managerial decision making
v v v
C) Efficiency in creation of new products
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D) Employee morale
v v
E) Intimacy with its suppliers
v v v v
Answer: B vv
Difficulty: Challenging vv
AACSB: Information technology
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
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3) Which of the following may lead to competitive advantage?
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1. New products, services, and business models;
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Test Bank v Page 2
v
,2. Charging less for superior products;
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3. Responding to customers in real time
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A) 1 only
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B) 1 and 2
v v v
C) 2 and 3
v v v
D) 1 and 3
v v v
E) 1, 2, and 3
v v v v
Answer: E vv
Difficulty: Challenging vv
AACSB: Analytical thinking vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
v v v v v v
4) A firm that invests in an information system because it is a necessity of doing business does
v v v v v v v v v v v v v v v v v
so because it is seeking to achieve which of the following business objectives?
v v v v v v v v v v v v v
A) Operational excellence
v v
B) Improved decision making
v v v
C) Competitive advantage
v v
D) Customer intimacy
v v
E) Survival
v
Answer: E vv
Difficulty: Moderate vv
AACSB: Information technology vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
v v v v v v
5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
v v v v v v v v v v v v v v v
example of which of the following?
v v v v v v
A) Improved flexibility
v v
B) Improved decision making
v v v
C) Improved efficiency
v v
D) Customer intimacy
v v
Test Bank v Page 3 v
, E) Operational excellence
v v
Answer: D vv
Difficulty: Moderate vv
AACSB: Information technology
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
v v v v v v
6) Competitors were seeking which of the following business objectives when they rushed to
v v v v v v v v v v v v v
provide ATMs after Citibank introduced the first ATMs in New York?
v v v v v v v v v v v
A) Improved efficiency
v v
B) Customer and supplier intimacy
v v v v
C) Survival
v
D) Competitive advantage
v v
E) Improved decision making
v v v
Answer: C vv
Difficulty: Moderate vv
AACSB: Information technology
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
running and managing a business today?
v v v v v v
7) Which of the following is the key business metric behind the technologies implemented by
v v v v v v v v v v v v v v
Kroger, as discussed in the chapter-opening case?
v v v v v v v
A) Higher customer satisfaction levels
v v v v
B) Survival
v
C) Improved employee morale
v v v
D) Improved decision making
v v v
E) Reduced cost of supplies
v v v v
Answer: A vv
Difficulty: Moderate vv
AACSB: Analytical thinking
vv v
LO: 1-1: How are information systems transforming business, and why are they so essential for
vv v v v v v v v v v v v v v
Test Bank v Page 4 v
