BESTLEC
Test Bank
Management Information Systems: Managing the Digital Firm. 17th Edition
By Kenneth C. Laudon, Jane P. Laudon.
C
LE
ST
BE
1
, BESTLEC
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) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
C
Difficulty: Challenging
AACSB: Information technology LE
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
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
BE
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?
2
, BESTLEC
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
C
Difficulty: Challenging
AACSB: Analytical thinking
LE
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
ST
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
BE
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival
Answer: E
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?
3
, BESTLEC
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
C
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
LE
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?
ST
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
BE
D) Competitive advantage
E) Improved decision making
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 metric behind the technologies implemented by
Kroger, as discussed in the chapter-opening case?
4
Test Bank
Management Information Systems: Managing the Digital Firm. 17th Edition
By Kenneth C. Laudon, Jane P. Laudon.
C
LE
ST
BE
1
, BESTLEC
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) Competitive advantage
D) Improved employee morale
E) Survival
Answer: D
C
Difficulty: Challenging
AACSB: Information technology LE
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
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
BE
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?
2
, BESTLEC
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
C
Difficulty: Challenging
AACSB: Analytical thinking
LE
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
ST
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
BE
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival
Answer: E
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?
3
, BESTLEC
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
C
LO: 1-1: How are information systems transforming business, and why are they so essential for
running and managing a business today?
LE
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?
ST
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
BE
D) Competitive advantage
E) Improved decision making
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 metric behind the technologies implemented by
Kroger, as discussed in the chapter-opening case?
4
