Test Bank for: Management Information
Systems: Managing the Digital Firm, 17th
Edition
By Kenneth C. Laudon, Jane P. Laudon
Chapter 1: Information Systems in Global Business
Today
MULTIPLE CHOICE
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) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
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?
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
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
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
business objective?
A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival
Answer: E
Difficulty: Moderate
AACSB: Information Technology
LO: 1-1
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
6. Competitors were seeking which of the following business objectives
when they rushed to provide ATMs 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: Moderate
AACSB: Information Technology
LO: 1-1
7. Which of the following is the key business metric behind the
technologies implemented by Kroger, as discussed in the
chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
C) Improved employee morale
D) Improved decision making
E) Reduced cost of supplies
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
LO: 1-1
8. Which of the following is an example of a business using information
systems to create a new product?
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
D) Apple's creation of the iPod
E) Kroger's use of sensors to monitor cold food storage temperatures
Answer: D
Difficulty: Challenging
AACSB: Information Technology
LO: 1-1
, 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
10. How much did American businesses spend on information systems
hardware, software, and telecommunications equipment in 2015?
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
11. To make sure they stock clothes that their customers will purchase, a
department store implements a new application that analyzes spending
levels and cross-references this data to popular clothing styles. Which
business objective is this 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
12. Approximately what percent of U.S. businesses have some form of
remote work program?
Systems: Managing the Digital Firm, 17th
Edition
By Kenneth C. Laudon, Jane P. Laudon
Chapter 1: Information Systems in Global Business
Today
MULTIPLE CHOICE
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) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
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?
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
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
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
business objective?
A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival
Answer: E
Difficulty: Moderate
AACSB: Information Technology
LO: 1-1
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
6. Competitors were seeking which of the following business objectives
when they rushed to provide ATMs 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: Moderate
AACSB: Information Technology
LO: 1-1
7. Which of the following is the key business metric behind the
technologies implemented by Kroger, as discussed in the
chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
C) Improved employee morale
D) Improved decision making
E) Reduced cost of supplies
Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
LO: 1-1
8. Which of the following is an example of a business using information
systems to create a new product?
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
D) Apple's creation of the iPod
E) Kroger's use of sensors to monitor cold food storage temperatures
Answer: D
Difficulty: Challenging
AACSB: Information Technology
LO: 1-1
, 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
10. How much did American businesses spend on information systems
hardware, software, and telecommunications equipment in 2015?
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
11. To make sure they stock clothes that their customers will purchase, a
department store implements a new application that analyzes spending
levels and cross-references this data to popular clothing styles. Which
business objective is this 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
12. Approximately what percent of U.S. businesses have some form of
remote work program?
