QuestionAuthors: Kenneth C. Laudon, Jane P. Laudon

Authors:
Kenneth C. Laudon, Jane P. Laudon

SAM 509
Management Information Systems
Text: Management Information Systems: Managing the Digital Firm
Twelfth Edition, 2012
ISBN-lO: 0-13-214285-6
Publisher:
Pearson Prentice Hall

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called:
management information systems.
information systems literacy.
information systems arch itecture.
information technology infrastructure.
Which of the following business objectives best describes the strategy behind the use of technology in the new Yankee Stadium?
New products and services
Survival
Improved decision making
Competitive advantage
3. Thomas Friedman’s declaration that the world was now “flat” meant that:
globalization is starting to offer less advantage to large corporations.
the global economy is increasingly commanded by fewer and larger corporations.
the Internet has reduced the economic advantages of developed countries.
global capitalism is homogenizing culture and business practices throughout the world.
4. Data management technology consists of the:
hardware and software used to transfer data.
detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.
software governing the organization of data on physical storage media.
physical hardware and media used by an organization for storing data.
5. An example of a business using information systems to create new products and services is:
Apple Inc.’s iPod.
Verizon’s Web-based digital dashboard.
Wal-Mart’s RetailLink system.
the Mandari n Oriental hotel’s customer-preference tracki ng system.
Based on the examples in the chapter, if you were asked to formulate a plan for a regional drive-in restaurant chain’s efforts to use information technology to develop a loyal customer base, what would be the best use of information technology from the list below?
Use IT to help survive government reporting requirements.
Use IT to increase supplier loyalty.
Use IT to increase operational efficiency.
Use IT to create new products and business models.
Use IT to achieve customer intimacy.
From a business perspective, raw data is transformed systematically during various stages, transforming it into valuable information, in a process called:
the IT value chain.
information processi ng.
the information value chain.
feedback.
8. An example of a social complementary asset is:
technology and service firms in adjacent markets.
distributed decision-making rights.
training programs.
all of the above.
9. Disciplines that contribute to the technical approach to information systems are:
operations research, management science, and computer science.
engineering, utilization management, and computer science.
computer science, engi neeri ng, and networki ng.
management science, computer science, and engineering.
10. Which of the following are key corporate assets?
Knowledge and the firm’s tangible assets, such as goods or services
Intellectual property, core competencies, and financial and human assets
Time and knowledge
Production technologies and business processes for sales, marketing, and finance
11. The three principal levels within a business organization hierarchy are:
senior management, middle management, and operational management.
senior management, middle management, and service workers.
senior management, operational management, and information systems.
senior management, operational management, and service workers.
12. Which main business function is responsible for maintaining employee records?
Manufacturing and production
Sales and marketing
Human resources
Finance and accounting
13. A managerial element in the UPS tracking system described in the chapter is:
the decision to use automation.
in-house package tracking software.
providing package status reports to customers.
taking inventory.
14. An example of a collaboration tool that supports colocated, asynchronous collaboration is:
e-mail.
a MUD.
a team room.
a wall display.
15. Identifying customers is a responsibility of the function.
hu man resources
manufacturing and production
sales and marketing
finance and accounting
Which type of system wouId you use to forecast the return on investment if you used new suppliers with better delivery track records?
TPS
ESS
DSS
MIS
17. Which systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content?
Transaction processi ng systems
Decision-support systems
Executive support systems
Management information systems

18. are designed to support organization-wide process coordination and integration.
CRM systems
Enterprise appl ications
Decision-support systems
Management information systems
19. The CPO is responsible for:
enforci ng the firm’s information security pol icy.
overseeing the use of information technology in the firm.
making better use of existing knowledge in organizational and management processes.
ensuring that the company complies with existing data privacy laws.
20. Which of the following roles falls into the duties of an information systems manager?
Writing software instructions for computers
Translating business problems into information requirements
Managing data entry staff
Acting as liaison between the information systems group and the rest of the organization
21. An example of a professional bureaucracy is a:
school system.
consulting firm.
mid-size manufacturing firm.
small startup firm.
The model is used to describe the interaction of external forces that affect an organization’s strategy and ability to compete.
competitive advantage
competitive forces
network economics
demand control
23. Which of the following industries has a low barrier to entry?
Automotive
Airline
Computer chip
Restaurant
24. Internet technology:
makes it easy to sustai n operational advantages.
imposes a significant cost of entry, due to infrastructure requirements.
makes it easy for rivals to compete on price alone.
increases the difference between competitors because of the wide availability of information.
25. The most successful solutions or methods for achieving a business objective are called:
best practices.
core competencies.
value activities.
best processes.

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called:
accountability.
the judicial system.
the courts of appeal.
due process.
2. According to the I you should take the action that produces the least harm.
Categorical Imperative
Golden Rule
Uti I itarian Pri nciple
Risk Aversion Principle
A(n) model of informed consent permits the collection of personal information until the consumer specifically requests that the data not be collected.
opt-out
P3P
opt-in
PGP
4. The Online Privacy Alliance:
has established technical guidelines for ensuring privacy.
is a government agency regulating the use of customer information.
protects user privacy during interactions with Web sites.
encourages self-regulation to develop a set of privacy guidelines for its members.
5. Intellectual property can best be described as:
tangible or intangible property created from a unique idea.
unique creative work or ideas.
intangible property created by individuals or corporations.
the expression of an intangible idea.
6. One of the difficulties of patent protection is:
that only the underlying ideas are protected.
digital media cannot be patented.
the years of waiting to receive it.
preventing the ideas from falling into public domain.
In general, it is very difficult to hold software producers liable for their software products when those products are considered to be:
services.
artistic expressions.
part of a machine.
similar to books.
8. Two of the three principal sources of poor system performance are:
hardware or facility failures and malware.
hardware or facility failures and poor input data quality.
poor input data quality and insufficient integration with legacy systems.
software bugs and errors and outdated standards.
9. can be induced by tens of thousands of repetitions under low-impact loads.
CTS
RSI
CVS
Technostress
10. In a multi-tiered network:
processing is handled by multiple, geographically remote clients.
processing is split between clients and servers.
the work of the entire network is centralized.
the work of the entire network is balanced over several levels of servers.
11. Software that manages the resources of the computer is called:
application software.
data management software.
operating system software.
network software.
An industry-wide effort to develop systems that can configure, optimize, tune, and heal themselves when broken, and protect themselves from outside intruders and self-destruction is called:
autonomic computing.
utility computing.
virtualization.
grid computing.
Sets of loosely coupled software components that exchange information with each other using standard Web communication standards and languages are referred to as:
SOA.
Web services.
SOAP.
EAI software.
14. are created by combining and customizing components from different online software appl ications.
Apps
Web services
SaaS
Mashups
15. Hardware and software acquisition costs account for about percent of TeO.
60
80
40
20
The confusion created by makes it difficult for companies to create customer relationship management, supply chain management. or enterprise systems that integrate data from different sources.
data redundancy
online processing
batch processi ng
data independence
17. In a relational database, the three basic operations used to develop useful sets of data are:
select, project, and where.
select, from, and join.
select, project, and join.
select, join, and where.

18. The select operation:
creates a subset consisting of all records in the file that meet stated criteria.
combines relational tables to provide the user with more information than is otherwise avai lable.
identifies the table from which the columns will be selected.
creates a subset consisting of columns in a table.
19. The join operation:
combines relational tables to provide the user with more information than is otherwise available.
organizes elements into segments.
creates a subset consisting of columns in a table.
identifies the table from which the columns will be selected.
The process of streamlining data to minimize redundancy and awkward many-to-many relationships is called:
data cleansi ng.
data scrubbing.
normalization.
data defining.
21. The special organ izational function whose responsi biIities include the tech nical and operational aspects of managing data, including physical database design and maintenance, is called:
data aud iti ng.
data administration.
information policy administration.
database administration.
22. A VPN:
is an Internet-based service for delivering voice communications.
is an encrypted private network configured within a public network.
is more expensive than a dedicated network.
provides secure, encrypted communications using Telnet.
What technology allows people to have content pulled from Web sites and fed automatically to their computers?
FTP
HTTP
RSS
Bluetooth
24. Which of the following statements is true?
COMA’s strength is in its international roaming capabilities.
GSM is the primary U.S. digital cellular standard.
GSM was developed by the military during World War II.
COMA randomly assigns users to a range of frequencies over time.
25. Which of the following would you be most likely to use RFIO technology for?
Lowering network costs
Enabling CRM systems
Enabling client communication
Tracking inventory

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
Electronic data are more susceptible to destruction, fraud, error, and misuse because information systems concentrate data in computer files that:
have the potential to be accessed by large numbers of people and by groups outside of the organization.
are frequently available on the Internet.
are usually bound up in legacy systems that are difficult to access and difficult to correct incase of error.
are not secure because the technology to secure them did not exist at the time the files were created.
Inputting data into a poorly programmed Web form in order to disrupt a company’s systems and networks is called:
an SQL injection attack.
a Trojan horse.
a DDoS attack.
key logging.
3. Hackers create a bot net by:
by infecting corporate servers with “zombie” Trojan horses that allow undetected access through a back door.
infecting Web search bots with malware.
by causing other people’s computers to become “zombie” pes following a master computer.
by using Web search bots to infect other computers.
4. Which of the following is not an example of a computer used as a target of crime?
Illegally accessing stored electronic communication
Threatening to cause damage to a protected computer
Accessing a computer system without authority
Knowingly accessing a protected computer to commit fraud
5. Evil twins are:
Trojan horses that appears to the user to be a legitimate commercial software appl ication.
fraudulent Web sites that mimic a legitimate business’s Web site.
e-mail messages that mimic the e-mail messages of a legitimate business.
bogus wireless network access points that look legitimate to users.

6. How do software vendors correct flaws in their software after it has been distributed?
Re-release software
Issue bug fixes
Issue patches
Issue updated versions
7. The Gramm-Leach-Bliley Act:
outlines medical security and privacy rules.
imposes responsibility on companies and management to safeguard the accuracy of financial information.
requires financial institutions to ensure the security of customer data.
specifies best practices in information systems security and control.
8. Currently, the protocols used for secure information transfer over the I nternet are:
SSL, TLS, and S-HTTP.
TCP/IP and SSL.
HTTP and TCP/I P.
S-HTTP and CA.
9. Most antivirus software is effective against:
any virus.
only those viruses already known when the software is written.
any virus except those in wireless communications applications.
only those viruses active on the Internet and through e-mail.
10. A digital certificate system:
uses tokens to validate a user’s identity.
is used primarily by individuals for personal correspondence.
uses third-party CAs to validate a user’s identity.
uses digital signatures to validate a user’s identity.
11. Smaller firms may outsource some or many security functions to:
MSSPs.
MISs.
CAs.
ISPs.

A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes:
ERM software.
SCM software.
CRM modules.
ERP systems.
13. Why is overstocking warehouses not an effective solution for a problem of low availability?
It increases sales costs.
It increases inventory costs.
It does not speed product time to market.
It is an inefficient use of raw materials.
A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a:
distribution channel.
supply chain.
marketing channel.
value chain.
A company’s organizations and processes for distributing and delivering products to the final customers is the:
external supply chain.
downstream portion of the supply chain.
supplier’s internal supply chain.
upstream portion of the supply chain.
16. Uncertainties arise in any supply chain because of:
inaccurate or untimely information.
unforeseeable events.
inefficient or inaccurate MIS.
poor integration between systems of suppliers, manufacturers, and distributors.
17. SFA modules in CRM systems would provide tools for:
capturing prospect and customer data.
managing sales prospect and contact information.
identifying profitable and unprofitable customers.
assigning and managing customer service requests.

18. management is an important capability for service

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