Copyright 2021 Pearson Education, Inc.

1 Copyright © 2021 Pearson Education, Inc.Essentials of MIS, 14e (Laudon/Laudon) Chapter 1 Business Information Systems in Your Career 1) Which of the following is the key business objective behind the technologies implemented by PCL Construction, as discussed in the chapter-opening case?

• Operational excellence
• Survival
• Improved employee morale
• Increased supplier intimacy
• Creation of a new business model

Answer: A

Difficulty: Challenging

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today?2) Journalist Thomas Friedman's description of the world as "flat" refers to the:

• reduction of economic and cultural advantages of developed countries.
• use of the Internet for instantaneous communication.
• reduction in travel times and the ubiquity of global exchange and travel.
• growth of globalization.
• increased use of global currencies.

Answer: A

Difficulty: Moderate

AACSB: Application of Knowledge

LO: 1-1: Why are information systems so essential for running and managing a business today?3) The six important business objectives of information system investment include all of the

following except:

• competitive advantage.
• employee morale.
• improved decision making.
• survival.
• new products.

Answer: B

Difficulty: Moderate

AACSB: Application of Knowledge

LO: 1-1: Why are information systems so essential for running and managing a business today?Essentials of MIS 14e Kenneth Laudon, Jane Laudon (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2021 Pearson Education, Inc.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?

• Survival
• Improved decision making
• Competitive advantage
• Operational excellence
• Customer intimacy

Answer: A

Difficulty: Moderate

AACSB: Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today?5) Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following?

• New business models
• Operational efficiency
• Customer intimacy
• Competitive advantage

E)Survival

Answer: B

Difficulty: Challenging

AACSB: Analytical Thinking

LO: 1-1: Why are information systems so essential for running and managing a business today?6) Verizon uses a web-based digital dashboard to provide managers with real-time information,

in order to:

• improve flexibility.
• improve decision making.
• gain competitive advantage.
• create supplier intimacy.
• create a new business model.

Answer: B

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today?7) Which business objective were competitors seeking when they rushed to provide ATMs after Citibank introduced the first ATMs in New York?

• Improved efficiency
• Customer and supplier intimacy
• Survival
• Competitive advantage
• Improved decision making

Answer: C

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today? 2 / 4

3 Copyright © 2021 Pearson Education, Inc.

8) All of the following describe the effects of globalization except:

• significant decreases in operating costs.
• reduction of labor costs through outsourcing.
• increased ability to find low-cost suppliers.
• increases in transaction costs.
• ability to reliably obtain price and quality information worldwide.

Answer: D

Difficulty: Challenging

AACSB: Analytical Thinking

LO: 1-1: Why are information systems so essential for running and managing a business today?9) A firm that must invest in a new information system in order to comply with federal legislation is investing to achieve which of the following business objectives?

• Customer intimacy
• Operational excellence
• New products.
• Improved decision making
• Survival

Answer: E

Difficulty: Moderate

AACSB: Application of Knowledge

LO: 1-1: Why are information systems so essential for running and managing a business today?10) Which of the following is an example of a business using information systems to create new products and services?

• Apple's creation of the iPad
• JCPenney's information system that allows its contract manufacturers to see what garments

have been sold and need to be replaced

• The Mandarin Oriental's use of computers to keep track of guests' preferences
• Verizon's web-based digital dashboard providing real-time company information for

managers

• Walmart's Retail Link system

Answer: A

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today? 3 / 4

4 Copyright © 2021 Pearson Education, Inc.11) An example of a business using information systems for supplier intimacy is:

• Apple's creation of the iPad.
• JCPenney's information system that allows its contract manufacturers to see what garments

have been sold and need to be replaced.

• Citibank's ATM system.
• Verizon's web-based digital dashboard providing real-time company information for

managers.

• the Mandarin Oriental's use of computers to keep track of guests' preferences.

Answer: B

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today?

12) To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support?

• New products
• Survival
• Customer intimacy
• Supplier intimacy
• New services

Answer: C

Difficulty: Moderate

AACSB: Analytical Thinking; Information Technology

LO: 1-1: Why are information systems so essential for running and managing a business today?

13) Software as a Service (SaaS) is an example of which of the following?

• Business intelligence
• Social business
• IoT
• Big Data
• Cloud computing

Answer: E

Difficulty: Easy

AACSB: Application of Knowledge

LO: 1-1: Why are information systems so essential for running and managing a business today?

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