Beekman 7e
Chapter 12: Information Systems In Business
Chapter 12:
Information Systems in Business
Multiple Choice:
1. What company did Andy Grove co-found?
A. IBM
B. Intel
C. Microsoft
D. Hewlett-Packard
Answer: BReference: Andy Grove, the Paranoid Chip
MerchantDifficulty: Moderate
2. A computer system performs all of the following functions
EXCEPT:
A. output.
B. input.
C. storage.
D. processing.
Answer: CReference: Anatomy of a SystemDifficulty: Moderate
3. An example of a subsystem of a local area network (LAN) could
be:
A. the Internet.
B. a PC.
C. a file to upload.
D. a mainframe computer.
Answer: BReference: Anatomy of a SystemDifficulty: Moderate
4. A LAN could be a subsystem of:
A. the Internet.
B. a PC.
C. a printer.
D. a server on the LAN.
Answer: AReference: Anatomy of a SystemDifficulty: Moderate
5. The output of one subsystem is often the ____________ to
another subsystem.
A. input
B. information system
C. storage
D. memory
Answer: AReference: Anatomy of a SystemDifficulty: Moderate
6. ___________ activities support a businesss primary
activities.A. OutsourcedB. EfficiencyC. CoreD. SecondaryAnswer:
DReference: The Value Chain ModelDifficulty: Moderate
7. The ___________ of a business collects data and processes it
into necessary information.A. materials processorsB. managementC.
production staffD. information systemAnswer: DReference: Business
Organizations as SystemsDifficulty: Easy
8. A companys environment consists of all EXCEPT:A.
competitors.
B. employees.
C. customers.
D. stockholders.
Answer: BReference: Business Organizations as SystemsDifficulty:
Moderate9. A subsystem that supports the information needs of other
business processes within an organization is known as a(n):
A. information system.
B. expert system.
C. technology management system.
D. technology information department.
Answer: AReference: Information SystemsDifficulty: Moderate
10. An example of input of an information system would be a:
A. printer.
B. report.
C. customer name for data entry.
D. plotter.
Answer: CReference: Information SystemsDifficulty: Easy
11. An example of output of an information system would be
a:
A. printer.
B. report.
C. PC tablet.
D. plotter.
Answer: BReference: Information SystemsDifficulty: Easy
12. An accounting and record-keeping system that keeps track of
daily transactions necessary to operate a business is known as
a(n):
A. information system.
B. subset of sound business practices.
C. transaction processing system.
D. technology information department.
Answer: CReference: Information Systems for Business
TransactionsDifficulty: Moderate
13. The first step in the transaction processing cycle is:
A. data processing.
B. document and report preparation.
C. data entry.
D. user inquiry.
Answer: CReference: Information Systems for Business
TransactionsDifficulty: Moderate
14. EDI stands for:
A. electronic data interchange.
B. electrical data interchange.
C. electronic data on the Internet.
D. electron data interchangeably.
Answer: AReference: Information Systems for Business
TransactionsDifficulty: Moderate15. What is the process of
gathering data and then processing it at a later time?A. Real-time
processing
B. Later entry data processing
C. Batch processingD. Entry specific processingAnswer:
CReference: Information Systems for Business
TransactionsDifficulty: Moderate
16. Scanning and identifying library books with a scanning
device upon checkout is an example of:
A. processing.
B. acquisition.
C. storage and retrieval.
D. transmission.
Answer: CReference: Information Technology in Information
SystemsDifficulty: Challenging17. What type of information
technology function is the creation of a monthly sales report shown
in an understandable chart and an easy-to-read spreadsheet format
developed for a sales manager?A. processingB. presentationC.
acquisitionD. storage and retrievalAnswer: BReference: Information
Technology in Information SystemsDifficulty: Moderate
18. Manipulating and organizing information in a way that makes
it useful for a user is the information technology function of:
A. presentation.
B. storage and retrieval.
C. processing.
D. acquisition.
Answer: CReference: Information Technology in Information
SystemsDifficulty: Moderate
19. An instructor distributes accumulated and processed data
about a group of students to another instructor; this is an example
of the information technology function of:
A. transmission.
B. storage and retrieval.
C. processing.
D. acquisition.
Answer: AReference: Information Technology in Information
SystemsDifficulty: Moderate20. An enterprise resource planning
(ERP) system increases the:
A. quality of the data of a transaction subsystem.
B. degree of error discovery of a transaction subsystem.
C. speed of a companys entire transaction processing cycle.
D. amount of paperwork generated by a business.
Answer: CReference: Enterprise Resource PlanningDifficulty:
Challenging21. Which of the following does NOT typically describe
the attributes of an ERP system?A. SimplisticB. ComplexC. LargeD.
ExpensiveAnswer: AReference: Enterprise Resource
PlanningDifficulty: Challenging22. The sale of a dress in a womens
boutique and the result that one less item is now in stock would be
recorded in a(n) ____________ processing system.
A. accounts receivable transaction
B. information
C. accounts payable transaction
D. inventory control transaction
Answer: DReference: How it Works: 12.1 The Information Flow
Through a Transaction Processing SystemDifficulty: Moderate
23. A business income and expenses are organized in reports so
that the health of the company can be determined; this information
is recorded in a(n):
A. general ledger transaction processing system.
B. accounts payable transaction processing system.
C. inventory control transaction processing system.
D. payroll transaction processing system.
Answer: AReference: How it Works: 12.1 The Information Flow
Through a Transaction Processing SystemDifficulty: Moderate
24. When two different businesses coordinate and form an
agreement to work together, it is known as a:
A. strategic plan.
B. business alliance.
C. business cooperative.
D. corporation.
Answer: BReference: Supply Chain Management and
OutsourcingDifficulty: Moderate25. An information system that
supports international business activities is called a(n):
A. international information system.
B. global business system.
C. globally-linked business system.
D. Internet supplier system.
Answer: AReference: Supply Chain Management and
OutsourcingDifficulty: Moderate
26. When an instructor creates a new computer course to be added
to the other computer courses offered by the department and must
determine the number of textbooks to order, she is making a(n):
A. structured decision.
B. unstructured decision.
C. semistructured decision.
D. management level decision.
Answer: CReference: Information Technology and
ManagementDifficulty: Challenging27. Middle managers primarily
manage at the __________ level.A. tactical B. operational C. top
management D. strategic Answer: AReference: Information Technology
and ManagementDifficulty: Challenging28. Individuals that are part
of a board of directors of a company act at the __________ level.A.
tactical B. operational C. middle management D. strategic Answer:
DReference: Information Technology and ManagementDifficulty:
Moderate
29. MIS stands for:
A. management Internet system.
B. marketing Internet system.
C. marketing and implementation software.
D. management information system.
Answer: DReference: Management Information SystemsDifficulty:
Moderate
30. If you were in the forest searching for your way back to a
road, you might take advantage of a(n):
A. GIS.
B. MIS.
C. EDI.
D. DSS.
Answer: AReference: Decision Support SystemsDifficulty: Easy
31. Top managers may use a(n) ____________, a combination of a
MIS and a DSS, to support their decision making.
A. GIS.
B. EIS.
C. EDI.
D. CAM.
Answer: BReference: Expert SystemsDifficulty: Moderate
32. When a system is designed based on the knowledge of a
recognized professional in a particular field, it is known as
a(n):
A. executive information system (EIS).
B. knowledge system (KS).
C. expert system (ES).
D. management information system (MIS).
Answer: CReference: Expert SystemsDifficulty: Moderate
33. When a company develops a new product that competitors find
extremely difficult to match or improve upon, the original company
has created a:
A. competitive advantage.
B. switching cost mechanism.
C. barrier to entry.
D. high efficiency quota.
Answer: CReference: Strategic Information SystemsDifficulty:
Moderate
34. Too many reports! Too many printouts! Too many particular
details! This is known as:
A. Internet information system.
B. system overload.
C. information overload.
D. information surplus.
Answer: CReference: Information Systems in
PerspectiveDifficulty: Moderate
35. To economically determine if an information system project
is worthwhile for a company to undertake, managers may use:
A. Gantt charts.
B. program evaluation and review technique (PERT) charts.
C. cost-benefit analysis.
D. expert systems.
Answer: CReference: Allocating ResourcesDifficulty: Moderate
36. The first step of IT planning is called:
A. MIS planning.
B. infrastructure planning.
C. organizational information requirements planning.
D. strategic planning.
Answer: DReference: Strategic PlanningDifficulty: Moderate
37. Types of charts or diagrams that are used by managers to
identify problems in a project include all of the following
EXCEPT:
A. Gantt.
B. program evaluation and review technique (PERT).
C. critical path method (CPM).
D. electronic data interchange (EDI).
Answer: DReference: Project PlanningDifficulty: Moderate
38. Social responsibility applies to:
A. individuals and companies.
B. companies
C. the community.
D. customers.
Answer: AReference: Social Responsibility in the Information
AgeDifficulty: Moderate
39. To guide behavior of employees in a socially responsible
manner, many companies have created:
A. codes of ethics.
B. management rules.
C. insider trading restrictions.
D. code of conduct.
Answer: AReference: Social Responsibility in the Information
AgeDifficulty: Moderate
Fill in the Blank:
40. A system performs three basic functions: input, processing,
and ____________.
Answer: outputReference: Anatomy of a SystemDifficulty: Easy
41. Two additional functions of a system are ____________ and
control.
Answer: feedbackReference: Anatomy of a SystemDifficulty:
Challenging42. The external environment that a business operates in
includes customers, stockholders, competitors, suppliers, banks,
and ____________ agencies (which often regulate the business).
Answer: governmentReference: Business Organizations as
SystemsDifficulty: Moderate
43. A business ____________ department recruits, hires, trains,
and develops the individuals within the firm.
Answer: Human ResourcesReference: Business Organizations as
SystemsDifficulty: Easy
44. A(n) ____________ system in a business is intended to help
individuals gather and use information, communicate with others
inside and outside the organization, and make effective
decisions.
Answer: informationReference: Information Systems for Business
TransactionsDifficulty: Moderate
45. In the context of business information systems, information
technology performs five functions: acquisition, ____________,
storage, presentation, and transmission.
Answer: processingReference: Information Technology in
Information SystemsDifficulty: Challenging46. The information
technology process that accumulates information for later use and
then accesses it when needed is known as ____________.
Answer: storage and retrievalReference: Information Technology
in Information Systems
Difficulty: Challenging47. Processing transactions as they occur
is known as ____________.
Answer: real-time processingReference: Information Technology
for Business TransactionsDifficulty: Challenging48. An example of a
typical ____________ activity is the process of running the monthly
payroll for employees.
Answer: batch processingReference: Information Technology for
Business Transactions
Difficulty: Moderate
49. ERP stands for ____________.
Answer: enterprise resource planning Reference: Enterprise
Resource PlanningDifficulty: Moderate50. A(n) ____________
transaction processing system involves keeping records of amounts
owed by customers.
Answer: accounts receivableReference: How it Works: 12.1 The
Information Flow Through a Transaction Processing System
Difficulty: Challenging51. A(n) ____________ transaction
processing system involves keeping track of employee work hours and
producing paychecks.
Answer: payrollReference: How it Works: 12.1 The Information
Flow Through a Transaction Processing System
Difficulty: Challenging52. ____________ is the direct,
computer-to-computer exchange of standard business transaction
documents; it is based on international standards.
Answer: EDI or Electronic data interchange Reference: Supply
Chain Management and Outsourcing Difficulty: Moderate
53. A bookstore working closely with FedEx to handle the stores
delivery logistics is an example of a(n) ____________.
Answer: business allianceReference: Supply Chain Management and
OutsourcingDifficulty: Challenging54. When a bookstore needs to
reorder textbooks for a class that is taught every semester by the
same professor, the manager will most likely make a(n) ____________
decision.
Answer: structuredReference: Information Technology and
ManagementDifficulty: Challenging55. When a unique situation arises
that a manager must deal with, she is faced with a(n) ____________
decision.
Answer: unstructuredReference: Information Technology and
ManagementDifficulty: Moderate
56. Three typical management levels exist: operational,
tactical, and ____________.
Answer: strategicReference: Information Technology and
ManagementDifficulty: Challenging57. A manager at the ____________
level deals with supervising the day-in-day-out activities of a
business.
Answer: operationalReference: Information Technology and
ManagementDifficulty: Moderate
58. DSS stands for ____________.
Answer: decision support system Reference: Decision Support
SystemsDifficulty: Moderate
59. GDSS stands for ____________.
Answer: group decision support system Reference: Decision
Support SystemsDifficulty: Moderate
60. GIS stands for ____________.
Answer: geographic information system Reference: Decision
Support SystemsDifficulty: Moderate
61. Managers can use a(n) ____________ information system to
monitor crucial economic and social trends affecting their
organization.
Answer: executiveReference: Expert SystemsDifficulty:
Challenging62. Creating a system that replicates the knowledge of a
professional in the automotive industry and using the system to
train new members of an organization is an example of a(n)
____________.
Answer: ES or expert systemReference: Information Systems in
PerspectiveDifficulty: Moderate
63. When an organization defines its mission; clearly identifies
its environment, strengths, and weaknesses; and defines its
competitive strategy, it is implementing the first phase of IT
planning, called ____________.
Answer: strategic planning Reference: Strategic
PlanningDifficulty: Moderate
64. A companys information systems hardware, software, and
telecommunications equipment; its staff and personnel; and its
organizational structure are known as the IT ____________.
Answer: infrastructureReference: Describing the Information
Technology InfrastructureDifficulty: Challenging65. The third phase
of information technology planning, ____________, is the process of
selecting the information system projects in which to invest time
and money.
Answer: resource allocationReference: Allocating
ResourcesDifficulty: Challenging66. A(n) ____________ visually
represents a project schedule.
Answer: Gantt chartReference: Project PlanningDifficulty:
Challenging67. CPM, or ____________, keeps track of a projects
schedule.
Answer: critical path methodReference: Project
PlanningDifficulty: Challenging68. Three time estimatesoptimistic,
pessimistic, and most likelyare incorporated into a(n) ____________
diagram.
Answer: PERTReference: Project PlanningDifficulty:
Challenging69. The traditional stakeholders of any business include
the employees, suppliers, customers, local community, and
____________.
Answer: stockholdersReference: Social Responsibility in the
Information Age
Difficulty: ChallengingMatching:
70. Match the following transaction processing systems to their
definitions:
I.sales transactionA.print a check for a vendor
II.inventory controlB.employee hours and paycheck printing
III.accounts receivableC.how many of an item are in stock
IV.accounts payableD.overall income and expenses
V.purchasingE.what customers owe
VI.general ledgerF.new stock from vendors
VII. payrollG.record of items or services sold
Answers: G, C, E, A, F, D, B Reference: How it WorksDifficulty:
Moderate71. Put the following transaction processing steps in
order:
I.storing and updating dataA.first
II.processing the dataB.second
III.user inquiryC.third
IV.data entryD.fourth
V.document preparationE.fifth
Answers: C, B, E, A, D Reference: IS for Business
TransactionsDifficulty: Moderate72. Match the decisions and
management levels to their definitions and responsibilities:
I.structured decisionA.short-term plans for the next year or
so
II.semistructured decisionB.unique, unknown circumstances
III.unstructured decisionC.day-to-day activities
IV.operational levelD.some uncertainty, some clarity
V.tactical levelE.clearly understandable, established
procedures
VI.strategic levelF.long-range, major impact decisions
Answers: E, D, B, C, A, F Reference: IT and
ManagementDifficulty: Moderate
1Copyright 2006 Prentice-Hall. All rights reserved.
PAGE 15Copyright 2006 Prentice-Hall. All rights reserved.
