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Management Information Systems: Managing the Digital Firm, 16th Edition by Kenneth,
Jane Laudon
Chapter 1-15
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These
disciplines not only have
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) Improved community relations
D) Competitive advantage
E) Survival
Answer: C
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?
riting Skills: Business exams may require students to present ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business
principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. St
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
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
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have for business exams involves mastering both conceptual understanding and practical application. St
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) The Toxic Substances Control Act requires firms to retain records of employee exposure to
toxic chemicals:
A) for 10 years.
B) for 5 years.
C) for 30 years.
D) for 1 year.
E) forever.
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?
7) Which of the following is the key business objective behind the technologies implemented by
PCL Construction, as discussed in the chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
C) Improved employee morale
D) Reduced delays in document management
E) Reduced cost of supplies
Answer: D
,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?
8) Which of the following is an example of a business using information systems to improve
customer and supplier intimacy?
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
for business exams involves mastering both conceptual understanding and practical application. St
D) Apple's creation of the iPad
E) PCL Construction's use of cloud computing
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?
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?
10) How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2017?
A) About $100 million
B) About $1 billion
C) About $100 billion
D) About $1 trillion
E) About $10 trillion
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?
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have
11) 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) 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?
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have
2. Law Exams2.1. Overview of Law
12) Approximately how much revenue was generated by e-commerce in 2017?
A) About $1 trillion
B) About $2 trillion
C) About $229 billion
D) About $700 billion
E) About $180 billion
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?
13) All of the following are new technology-related trends in MIS except:
A) cloud computing.
B) big data.
C) IoT.
D) the mobile digital platform.
E) co-creation of business value.
Answer: E
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?
14) Which of the following statements about digital firms is not true?
A) In digital firms, time shifting and space shifting are the norm.
B) Today, most firms are fully digital.
C) Digital firms offer extraordinary opportunities for flexible global organization and
management.
D) Digital firms sense and respond to their environments more rapidly than traditional firms.
E) Digital firms have more flexibility to survive in turbulent times.
Answer: B
Difficulty: Challenging
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
15) A firm that must invest in new information systems capabilities in order to comply with
federal legislation is investing to achieve which business objective?
Management Information Systems: Managing the Digital Firm, 16th Edition by Kenneth,
Jane Laudon
Chapter 1-15
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These
disciplines not only have
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) Improved community relations
D) Competitive advantage
E) Survival
Answer: C
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?
riting Skills: Business exams may require students to present ideas clearly and concisely. Students must convey complex concepts in a way that demonstrates their understanding of business
principles.1.4. Preparing for Business ExamsPreparing for business exams involves mastering both conceptual understanding and practical application. St
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
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
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have for business exams involves mastering both conceptual understanding and practical application. St
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) The Toxic Substances Control Act requires firms to retain records of employee exposure to
toxic chemicals:
A) for 10 years.
B) for 5 years.
C) for 30 years.
D) for 1 year.
E) forever.
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?
7) Which of the following is the key business objective behind the technologies implemented by
PCL Construction, as discussed in the chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
C) Improved employee morale
D) Reduced delays in document management
E) Reduced cost of supplies
Answer: D
,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?
8) Which of the following is an example of a business using information systems to improve
customer and supplier intimacy?
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
for business exams involves mastering both conceptual understanding and practical application. St
D) Apple's creation of the iPad
E) PCL Construction's use of cloud computing
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?
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?
10) How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2017?
A) About $100 million
B) About $1 billion
C) About $100 billion
D) About $1 trillion
E) About $10 trillion
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?
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have
11) 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) 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?
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only
have
2. Law Exams2.1. Overview of Law
12) Approximately how much revenue was generated by e-commerce in 2017?
A) About $1 trillion
B) About $2 trillion
C) About $229 billion
D) About $700 billion
E) About $180 billion
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?
13) All of the following are new technology-related trends in MIS except:
A) cloud computing.
B) big data.
C) IoT.
D) the mobile digital platform.
E) co-creation of business value.
Answer: E
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?
14) Which of the following statements about digital firms is not true?
A) In digital firms, time shifting and space shifting are the norm.
B) Today, most firms are fully digital.
C) Digital firms offer extraordinary opportunities for flexible global organization and
management.
D) Digital firms sense and respond to their environments more rapidly than traditional firms.
E) Digital firms have more flexibility to survive in turbulent times.
Answer: B
Difficulty: Challenging
AACSB: Reflective thinking
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
15) A firm that must invest in new information systems capabilities in order to comply with
federal legislation is investing to achieve which business objective?
