Test Bank for: Management Information Systems: Managing
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the Digital Firm, 16th Edition By Kenneth C. Laudon, Jane P.
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Laudon. f
Management Information Systems: Managing the Digital Firm, 15e (Laudon) f f f f f f f f
Chapter 1 Information Systems in Global Business Today
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1) Which of the following is not one of the six strategic business objectives of information systems?
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A) New products and services
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B) Improved decision making
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C) Competitive advantage
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D) Improved employee morale
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E) Survival f
Answer: D ff
Difficulty: Challenging ff
AACSB: Information technology ff f
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
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B) Managerial decision making
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C) Efficiency in creation of new products
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D) Employee morale
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E) Intimacy with its suppliers
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Answer: B ff
Difficulty: Challenging ff
AACSB: Information technology ff f
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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2. Charging less for superior products;
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3. Responding to customers in real time
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A) 1 only f f
B) 1 and 2 f f f
C) 2 and 3 f f f
D) 1 and 3 f f f
E) 1, 2, and 3
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Answer: E ff
Difficulty: Challenging ff
AACSB: Analytical thinking ff f
1
,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 so
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because it is seeking to achieve which of the following business objectives?
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A) Operational excellence
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B) Improved decision making
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C) Competitive advantage
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D) Customer intimacy
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E) Survival
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Answer: E ff
Difficulty: Moderate ff
AACSB: Information technology ff f
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
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B) Improved decision making
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C) Improved efficiency
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D) Customer intimacy
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E) Operational excellence
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Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
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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6) Competitors were seeking which of the following business objectives when they rushed to
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provide ATMs after Citibank introduced the first ATMs in New York?
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A) Improved efficiency
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B) Customer and supplier intimacy
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C) Survival
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D) Competitive advantage
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E) Improved decision making
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Answer: C ff
Difficulty: Moderate ff
AACSB: Information technology ff f
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
,7) Which of the following is the key business metric behind the technologies implemented by
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Kroger, as discussed in the chapter-opening case?
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A) Higher customer satisfaction levels
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B) Survival
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C) Improved employee morale
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D) Improved decision making
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E) Reduced cost of supplies
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Answer: A ff
Difficulty: Moderate ff
AACSB: Analytical thinking ff f
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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8) Which of the following is an example of a business using information systems to create a new
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product?
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A) Walmart's RetailLink system
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B) The Mandarin Oriental's use of computers to keep track of guest preferences
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C) Verizon's use of a web-based digital dashboard to provide real-time company information for
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managers
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D) Apple's creation of the iPod
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E) Kroger's use of sensors to monitor cold food storage temperatures
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Answer: D ff
Difficulty: Challenging ff
AACSB: Information technology ff f
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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9) Walmart exemplifies the power of information systems coupled with state-of-the-art business
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practices and supportive management to achieve which of the following?
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A) New products and services
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B) Operational efficiency
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C) Survival
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D) Customer intimacy
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E) Competitive advantage
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Answer: B ff
Difficulty: Challenging ff
AACSB: Information technology ff f
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
, 10) How much did American businesses spend on information systems hardware, software, and
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telecommunications equipment in 2015?
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A) About $100 million
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B) About $1 billion
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C) About $100 billion
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D) About $1 trillion
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E) About $10 trillion
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Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
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11) To make sure they stock clothes that their customers will purchase, a department store
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implements a new application that analyzes spending levels at their stores and cross-references this
f f f f f f f f f f f f f f
data to popular clothing styles. Which of the following business objectives is this information
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intended to support?
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A) Customer intimacy
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B) Survival
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C) Operational excellence
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D) Improved decision making
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E) New products and services
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Answer: C ff
Difficulty: Moderate ff
AACSB: Analytical thinking ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
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12) Approximately what percent of U.S. businesses have some form of remote work program?
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A) About 15 percent
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B) About 25 percent
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C) About 35 percent
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D) About 60 percent
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E) About 75 percent
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Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
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4
f f f f f f
the Digital Firm, 16th Edition By Kenneth C. Laudon, Jane P.
f f f f f f f f f f f
Laudon. f
Management Information Systems: Managing the Digital Firm, 15e (Laudon) f f f f f f f f
Chapter 1 Information Systems in Global Business Today
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1) Which of the following is not one of the six strategic business objectives of information systems?
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A) New products and services
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B) Improved decision making
f f f
C) Competitive advantage
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D) Improved employee morale
f f f
E) Survival f
Answer: D ff
Difficulty: Challenging ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
2) Verizon's use of a web-based digital dashboard to provide managers with precise real-time
f f f f f f f f f f f f f
information enabled it to improve which of the following?
f f f f f f f f f
A) Compliance with regulations
f f f
B) Managerial decision making
f f f
C) Efficiency in creation of new products
f f f f f f
D) Employee morale
f f
E) Intimacy with its suppliers
f f f f
Answer: B ff
Difficulty: Challenging ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
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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2. Charging less for superior products;
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3. Responding to customers in real time
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A) 1 only f f
B) 1 and 2 f f f
C) 2 and 3 f f f
D) 1 and 3 f f f
E) 1, 2, and 3
f f f f
Answer: E ff
Difficulty: Challenging ff
AACSB: Analytical thinking ff f
1
,LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
4) A firm that invests in an information system because it is a necessity of doing business does so
f f f f f f f f f f f f f f f f f f
because it is seeking to achieve which of the following business objectives?
f f f f f f f f f f f f
A) Operational excellence
f f
B) Improved decision making
f f f
C) Competitive advantage
f f
D) Customer intimacy
f f
E) Survival
f
Answer: E ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
5) The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an
f f f f f f f f f f f f f f f
example of which of the following?
f f f f f f
A) Improved flexibility
f f
B) Improved decision making
f f f
C) Improved efficiency
f f
D) Customer intimacy
f f
E) Operational excellence
f f
Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
6) Competitors were seeking which of the following business objectives when they rushed to
f f f f f f f f f f f f f
provide ATMs after Citibank introduced the first ATMs in New York?
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A) Improved efficiency
f f
B) Customer and supplier intimacy
f f f f
C) Survival
f
D) Competitive advantage
f f
E) Improved decision making
f f f
Answer: C ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
2
,7) Which of the following is the key business metric behind the technologies implemented by
f f f f f f f f f f f f f f
Kroger, as discussed in the chapter-opening case?
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A) Higher customer satisfaction levels
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B) Survival
f
C) Improved employee morale
f f f
D) Improved decision making
f f f
E) Reduced cost of supplies
f f f f
Answer: A ff
Difficulty: Moderate ff
AACSB: Analytical thinking ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
8) Which of the following is an example of a business using information systems to create a new
f f f f f f f f f f f f f f f f f
product?
f
A) Walmart's RetailLink system
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B) The Mandarin Oriental's use of computers to keep track of guest preferences
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C) Verizon's use of a web-based digital dashboard to provide real-time company information for
f f f f f f f f f f f f f
managers
f
D) Apple's creation of the iPod
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E) Kroger's use of sensors to monitor cold food storage temperatures
f f f f f f f f f f
Answer: D ff
Difficulty: Challenging ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
9) Walmart exemplifies the power of information systems coupled with state-of-the-art business
f f f f f f f f f f f
practices and supportive management to achieve which of the following?
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A) New products and services
f f f f
B) Operational efficiency
f f
C) Survival
f
D) Customer intimacy
f f
E) Competitive advantage
f f
Answer: B ff
Difficulty: Challenging ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
3
, 10) How much did American businesses spend on information systems hardware, software, and
f f f f f f f f f f f f
telecommunications equipment in 2015?
f f f f
A) About $100 million
f f f
B) About $1 billion
f f f
C) About $100 billion
f f f
D) About $1 trillion
f f f
E) About $10 trillion
f f f
Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
11) To make sure they stock clothes that their customers will purchase, a department store
f f f f f f f f f f f f f f
implements a new application that analyzes spending levels at their stores and cross-references this
f f f f f f f f f f f f f f
data to popular clothing styles. Which of the following business objectives is this information
f f f f f f f f f f f f f f
intended to support?
f f f
A) Customer intimacy
f f
B) Survival
f
C) Operational excellence
f f
D) Improved decision making
f f f
E) New products and services
f f f f
Answer: C ff
Difficulty: Moderate ff
AACSB: Analytical thinking ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
12) Approximately what percent of U.S. businesses have some form of remote work program?
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A) About 15 percent
f f f
B) About 25 percent
f f f
C) About 35 percent
f f f
D) About 60 percent
f f f
E) About 75 percent
f f f
Answer: D ff
Difficulty: Moderate ff
AACSB: Information technology ff f
LO: 1-1: How are information systems transforming business, and why are they so essential for
ff f f f f f f f f f f f f f
running and managing a business today?
f f f f f f
4
