Management Information Systems, 13e (Laudon/Laudon)
Chapter 1 Information Systems in Global Business Today
1) Internet advertising is growing at approximately 10 percent a year.
Answer: TRUE
Diff: 3 Page Ref: 6
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business
processes.
Answer: TRUE
Diff: 1 Page Ref: 11
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
3) A fully digital firm produces only digital goods or services.
Answer: FALSE
Diff: 2 Page Ref: 11
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
4) A business model describes how a company produces, delivers, and sells a product or service to create
wealth.
Answer: TRUE
Diff: 1 Page Ref: 13
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its
business objectives, whereas information systems consist of all the software and business processes needed.
Answer: FALSE
Diff: 2 Page Ref: 15
AACSB: Use of information technology
CASE: Content
Objective: 1.3
RSI is CTS
,6) Computers are only part of an information system.
Answer: TRUE
Diff: 1 Page Ref: 17
AACSB: Use of information technology
CASE: Content
Objective: 1.3
7) Information systems literacy describes the behavioral approach to information systems, whereas computer
literacy describes the technical approach.
Answer: FALSE
Diff: 1 Page Ref: 18
AACSB: Use of information technology
CASE: Content
Objective: 1.3
8) The dimensions of information systems are management, organizations, and information technology.
Answer: TRUE
Diff: 2 Page Ref: 18
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
9) Knowledge workers assist with paperwork at all levels of the firm.
Answer: FALSE
Diff: 1 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
10) There are four major business functions: sales and marketing; manufacturing and production; finance and
accounting; and information technology.
Answer: FALSE
Diff: 1 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
11) In order to understand how a specific business firm uses information systems, you need to know something
about the hierarchy and culture of the company.
Answer: TRUE
Diff: 2 Page Ref: 19-20
AACSB: Analytic skills
CASE: Analysis
Objective: 1.3
,12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by
an organization.
Answer: FALSE
Diff: 2 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
13) A substantial part of management responsibility is creative work driven by new knowledge and information.
Answer: TRUE
Diff: 1 Page Ref: 20
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
14) Intranets allow firms to work easily with third-party suppliers and vendors.
Answer: FALSE
Diff: 2 Page Ref: 21
AACSB: Use of information technology
CASE: Content
Objective: 1.2
15) Investment in IT is over 50% of all invested capital.
Answer: TRUE
Diff: 2 Page Ref: 5
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost
calculations into their own Web sites was an information systems solution used to achieve customer intimacy.
Answer: TRUE
Diff: 3 Page Ref: 13, 22
AACSB: Analytic skills
CASE: Analysis
Objective: 1.2
17) Studies have consistently shown that firms that invest greater amounts in information technology receive
greater benefits than firms that invest less.
Answer: FALSE
Diff: 2 Page Ref: 26
AACSB: Use of information technology
CASE: Content
Objective: 1.4
18) Government and private sector standards are examples of complementary social assets required to optimize
returns from IT investments.
Answer: TRUE
Diff: 2 Page Ref: 27
AACSB: Reflective thinking skills
CASE: Content
, Objective: 1.4
19) A firm that invests in efficient business processes is making an investment in organizational complementary
assets.
Answer: TRUE
Diff: 2 Page Ref: 27
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.4
20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the
psychological, social, and economic impacts of systems.
Answer: TRUE
Diff: 2 Page Ref: 29
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
21) The six important business objectives of information technology are new products, services, and business
models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
Answer: B
Diff: 1 Page Ref: 12
AACSB: Use of information technology
CASE: Content
Objective: 1.2
Chapter 1 Information Systems in Global Business Today
1) Internet advertising is growing at approximately 10 percent a year.
Answer: TRUE
Diff: 3 Page Ref: 6
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business
processes.
Answer: TRUE
Diff: 1 Page Ref: 11
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
3) A fully digital firm produces only digital goods or services.
Answer: FALSE
Diff: 2 Page Ref: 11
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
4) A business model describes how a company produces, delivers, and sells a product or service to create
wealth.
Answer: TRUE
Diff: 1 Page Ref: 13
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its
business objectives, whereas information systems consist of all the software and business processes needed.
Answer: FALSE
Diff: 2 Page Ref: 15
AACSB: Use of information technology
CASE: Content
Objective: 1.3
RSI is CTS
,6) Computers are only part of an information system.
Answer: TRUE
Diff: 1 Page Ref: 17
AACSB: Use of information technology
CASE: Content
Objective: 1.3
7) Information systems literacy describes the behavioral approach to information systems, whereas computer
literacy describes the technical approach.
Answer: FALSE
Diff: 1 Page Ref: 18
AACSB: Use of information technology
CASE: Content
Objective: 1.3
8) The dimensions of information systems are management, organizations, and information technology.
Answer: TRUE
Diff: 2 Page Ref: 18
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
9) Knowledge workers assist with paperwork at all levels of the firm.
Answer: FALSE
Diff: 1 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
10) There are four major business functions: sales and marketing; manufacturing and production; finance and
accounting; and information technology.
Answer: FALSE
Diff: 1 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
11) In order to understand how a specific business firm uses information systems, you need to know something
about the hierarchy and culture of the company.
Answer: TRUE
Diff: 2 Page Ref: 19-20
AACSB: Analytic skills
CASE: Analysis
Objective: 1.3
,12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by
an organization.
Answer: FALSE
Diff: 2 Page Ref: 19
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
13) A substantial part of management responsibility is creative work driven by new knowledge and information.
Answer: TRUE
Diff: 1 Page Ref: 20
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.2
14) Intranets allow firms to work easily with third-party suppliers and vendors.
Answer: FALSE
Diff: 2 Page Ref: 21
AACSB: Use of information technology
CASE: Content
Objective: 1.2
15) Investment in IT is over 50% of all invested capital.
Answer: TRUE
Diff: 2 Page Ref: 5
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.1
16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost
calculations into their own Web sites was an information systems solution used to achieve customer intimacy.
Answer: TRUE
Diff: 3 Page Ref: 13, 22
AACSB: Analytic skills
CASE: Analysis
Objective: 1.2
17) Studies have consistently shown that firms that invest greater amounts in information technology receive
greater benefits than firms that invest less.
Answer: FALSE
Diff: 2 Page Ref: 26
AACSB: Use of information technology
CASE: Content
Objective: 1.4
18) Government and private sector standards are examples of complementary social assets required to optimize
returns from IT investments.
Answer: TRUE
Diff: 2 Page Ref: 27
AACSB: Reflective thinking skills
CASE: Content
, Objective: 1.4
19) A firm that invests in efficient business processes is making an investment in organizational complementary
assets.
Answer: TRUE
Diff: 2 Page Ref: 27
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.4
20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the
psychological, social, and economic impacts of systems.
Answer: TRUE
Diff: 2 Page Ref: 29
AACSB: Reflective thinking skills
CASE: Content
Objective: 1.3
21) The six important business objectives of information technology are new products, services, and business
models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
Answer: B
Diff: 1 Page Ref: 12
AACSB: Use of information technology
CASE: Content
Objective: 1.2
