Test Bank for: Management Information Systems: Managing the Digital
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t Firm, 16th Edition By Kenneth C. Laudon, Jane P. Laudon.
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Management Information Systems: Managing the Digital Firm, 15e (Laudon) Chapter 1
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t Information Systems in Global Business Today t t t t t
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 t t
C) Competitive advantage t
D) Improved employee morale t t
E) Survival
Answer: D
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Difficulty: Challenging t
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 t t
B) Managerial decision making t t
C) Efficiency in creation of new products t t t t t
D) Employee morale t
E) Intimacy with its suppliers t t t
Answer: B
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Difficulty: Challenging t
AACSB: Information technology
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Test Bank t Page 1t
,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
t Page 2t
,2. Charging less for superior products; t t t t
3. Responding to customers in real time t t t t t
A) 1 only t
B) 1 and 2 t t
C) 2 and 3 t t
D) 1 and 3 t t
E) 1, 2, and 3 t t t
Answer: E
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Difficulty: Challenging t
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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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 t
B) Improved decision making t t
C) Competitive advantage t
D) Customer intimacy t
E) Survival
Answer: E
t t
Difficulty: Moderate t
AACSB: Information technology t t
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 t
B) Improved decision making t t
C) Improved efficiency t
Test Bank t Page 3 t
, D) Customer intimacy
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Test Bank
t Page 4
t
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t Firm, 16th Edition By Kenneth C. Laudon, Jane P. Laudon.
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Management Information Systems: Managing the Digital Firm, 15e (Laudon) Chapter 1
t t t t t t t t t t
t Information Systems in Global Business Today t t t t t
1) Which of the following is not one of the six strategic business objectives of information
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systems?
t
A) New products and services
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B) Improved decision making t t
C) Competitive advantage t
D) Improved employee morale t t
E) Survival
Answer: D
t t
Difficulty: Challenging t
AACSB: Information technology
t t
LO: 1-1: How are information systems transforming business, and why are they so essential for
t t t t t t t t t t t t t t
running and managing a business today?
t t t t t t
2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
t t t t t t t t t t t t
information enabled it to improve which of the following?
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A) Compliance with regulations t t
B) Managerial decision making t t
C) Efficiency in creation of new products t t t t t
D) Employee morale t
E) Intimacy with its suppliers t t t
Answer: B
t t
Difficulty: Challenging t
AACSB: Information technology
t t
Test Bank t Page 1t
,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
t Page 2t
,2. Charging less for superior products; t t t t
3. Responding to customers in real time t t t t t
A) 1 only t
B) 1 and 2 t t
C) 2 and 3 t t
D) 1 and 3 t t
E) 1, 2, and 3 t t t
Answer: E
t t
Difficulty: Challenging t
AACSB: Analytical thinking
t t t
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?
t t t t t t
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?
t t t t t t t t t t t t t
A) Operational excellence t
B) Improved decision making t t
C) Competitive advantage t
D) Customer intimacy t
E) Survival
Answer: E
t t
Difficulty: Moderate t
AACSB: Information technology t t
LO: 1-1: How are information systems transforming business, and why are they so essential for
t t t t t t t t t t t t t t
running and managing a business today?
t t t t t t
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 t
B) Improved decision making t t
C) Improved efficiency t
Test Bank t Page 3 t
, D) Customer intimacy
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Test Bank
t Page 4
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