Chapter-2-test-bank-
Management Information
Systems (
Management Information Systems: Managing the Digital Firm, 16e (Laudon)
Chapter 2 Global E-business and Collaboration
1) Producing a bill of materials is a business process in which of the following functional
areas?
A) Finance and accounting
B) Human resources
C) Manufacturing and production
D) Research and development
E) Sales and
marketing Answer: C
Difficulty: Moderate
AACSB: Reflective
thinking
LO: 2-1: What are business processes? How are they related to information systems?
2) Which of the following is an example of a cross-functional business process?
A) Identifying customers
B) Shipping a product
C) Fulfilling a customer order
D) Hiring employees
E) Paying creditors
Answer: C
Difficulty:
Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?
3) Order fulfillment involves all of the following business processes except:
A) checking the customer's credit.
B) assembling the product.
C) submitting the order.
,D) making customers aware of the product.
E) shipping the
product. Answer: D
Difficulty: Moderate
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?
4) The function is responsible for making sure customers are aware of the
company's products.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
E) distribution and
logistics Answer: D
Difficulty: Easy
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?
1
,5) According to the chapter case, Sanofi Pasteur is using Microsoft Yammer for all of
the following reasons except:
A) give employees more opportunities to innovate.
B) increase product innovations from lower down in the organization.
C) simplify business processes
D) strengthen management controls over employees
E) set up activist groups for
change Answer: D
Difficulty: Challenging
AACSB: Reflective
thinking
LO: 2-1: What are business processes? How are they related to information systems?
6) Identifying customers is a business process handled by the marketing
function. Answer: TRUE
Difficulty: Moderate
AACSB: Information technology
LO: 2-1: What are business processes? How are they related to information systems?
7) One example of a business process is shipping a product to a
customer. Answer: TRUE
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
8) What is the connection between organizations, information systems, and business
processes? Answer: Business processes refer to the manner in which work activities are
organized, coordinated, and focused to produce a specific business result. They also
represent unique ways in which organizations coordinate work, information, and
knowledge and the ways in which management chooses to coordinate work. Managers need
to pay attention to business processes because they determine how well the organization
can execute, and thus are a potential source for strategic success or failures. Although each
of the major business functions has its own set of business processes, many other business
processes are cross functional. Information systems can help organizations achieve great
efficiencies by automating parts of these processes or by helping organizations rethink and
streamline them. Firms can become more flexible and efficient by coordinating and
integrating their business processes to improve management of resources and customer
service.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
2
, 9) What are cross-functional business processes? Give an example.
Answer: Cross-functional processes are those that require input, cooperation, or
coordination between the major business functions in an organization. For instance, when a
salesman takes an order, the major business functions of planning, production, inventory
control, shipping, accounting, and customer relations will all be involved before the order is
completed.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
10) Your aunt has asked you for your suggestions to make her business, a local sandwich
shop, more efficient. Describe at least three types of business processes that a sandwich shop
has. Can any of these processes be made more efficient through the use of information
systems?
Answer: The business processes of a sandwich shop include: Taking orders, making
sandwiches, selling to the customer, ordering supplies, opening the store, closing the store,
cleaning the store, paying employees, hiring employees, paying creditors and vendors,
creating financial statements, paying taxes, managing cash. Many of these processes could
be helped by better information systems, specifically those that require recorded data, such
as any financial processes (payments, cash management, taxes, payroll) and information
gathered from and distributed to employees.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
11) If sales of your products declined in a specific region of the country, which of the
following types of system would best help you understand why?
A) ESS
B) TPS
C) MIS
D) DSS
E) CRM
Answer: C
Difficulty:
Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do
systems that link the enterprise improve organizational performance?
3
Management Information
Systems (
Management Information Systems: Managing the Digital Firm, 16e (Laudon)
Chapter 2 Global E-business and Collaboration
1) Producing a bill of materials is a business process in which of the following functional
areas?
A) Finance and accounting
B) Human resources
C) Manufacturing and production
D) Research and development
E) Sales and
marketing Answer: C
Difficulty: Moderate
AACSB: Reflective
thinking
LO: 2-1: What are business processes? How are they related to information systems?
2) Which of the following is an example of a cross-functional business process?
A) Identifying customers
B) Shipping a product
C) Fulfilling a customer order
D) Hiring employees
E) Paying creditors
Answer: C
Difficulty:
Moderate
AACSB: Analytical thinking
LO: 2-1: What are business processes? How are they related to information systems?
3) Order fulfillment involves all of the following business processes except:
A) checking the customer's credit.
B) assembling the product.
C) submitting the order.
,D) making customers aware of the product.
E) shipping the
product. Answer: D
Difficulty: Moderate
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?
4) The function is responsible for making sure customers are aware of the
company's products.
A) finance and accounting
B) human resources
C) manufacturing and production
D) sales and marketing
E) distribution and
logistics Answer: D
Difficulty: Easy
AACSB: Reflective thinking
LO: 2-1: What are business processes? How are they related to information systems?
1
,5) According to the chapter case, Sanofi Pasteur is using Microsoft Yammer for all of
the following reasons except:
A) give employees more opportunities to innovate.
B) increase product innovations from lower down in the organization.
C) simplify business processes
D) strengthen management controls over employees
E) set up activist groups for
change Answer: D
Difficulty: Challenging
AACSB: Reflective
thinking
LO: 2-1: What are business processes? How are they related to information systems?
6) Identifying customers is a business process handled by the marketing
function. Answer: TRUE
Difficulty: Moderate
AACSB: Information technology
LO: 2-1: What are business processes? How are they related to information systems?
7) One example of a business process is shipping a product to a
customer. Answer: TRUE
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
8) What is the connection between organizations, information systems, and business
processes? Answer: Business processes refer to the manner in which work activities are
organized, coordinated, and focused to produce a specific business result. They also
represent unique ways in which organizations coordinate work, information, and
knowledge and the ways in which management chooses to coordinate work. Managers need
to pay attention to business processes because they determine how well the organization
can execute, and thus are a potential source for strategic success or failures. Although each
of the major business functions has its own set of business processes, many other business
processes are cross functional. Information systems can help organizations achieve great
efficiencies by automating parts of these processes or by helping organizations rethink and
streamline them. Firms can become more flexible and efficient by coordinating and
integrating their business processes to improve management of resources and customer
service.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
2
, 9) What are cross-functional business processes? Give an example.
Answer: Cross-functional processes are those that require input, cooperation, or
coordination between the major business functions in an organization. For instance, when a
salesman takes an order, the major business functions of planning, production, inventory
control, shipping, accounting, and customer relations will all be involved before the order is
completed.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
10) Your aunt has asked you for your suggestions to make her business, a local sandwich
shop, more efficient. Describe at least three types of business processes that a sandwich shop
has. Can any of these processes be made more efficient through the use of information
systems?
Answer: The business processes of a sandwich shop include: Taking orders, making
sandwiches, selling to the customer, ordering supplies, opening the store, closing the store,
cleaning the store, paying employees, hiring employees, paying creditors and vendors,
creating financial statements, paying taxes, managing cash. Many of these processes could
be helped by better information systems, specifically those that require recorded data, such
as any financial processes (payments, cash management, taxes, payroll) and information
gathered from and distributed to employees.
Difficulty: Moderate
AACSB: Analytical
thinking
LO: 2-1: What are business processes? How are they related to information systems?
11) If sales of your products declined in a specific region of the country, which of the
following types of system would best help you understand why?
A) ESS
B) TPS
C) MIS
D) DSS
E) CRM
Answer: C
Difficulty:
Moderate
AACSB: Analytical thinking
LO: 2-2: How do systems serve the different management groups in a business and how do
systems that link the enterprise improve organizational performance?
3
