Test bank for essentials of management information systems 8th edition laudon

Decision-support systems A sales and marketing information system aids middle management in: 1.. Senior management uses finance and accounting information systems to: 1.. sales and mark

Test Bank for Essentials of Management Information Systems 8th Edition Laudon

Multiple Choice Questions

_ support making decisions that are unique, rapidly changing, and not easily specified in advance:

1 a Management information systems

2 b Transaction processing systems

3 c Executive support systems

4 d Decision-support systems

These systems are typically a major source of data for other systems:

1 a Transaction processing systems

2 b Management information systems

3 c Executive support systems

4 d Decision-support systems

A sales and marketing information system aids middle management in:

1 a tracking sales.

2 b planning new products and services.

3 c analyzing sales performance.

4 d preparing sales forecasts.

The term “management information systems” designates a specific

category of information systems serving:

1 a integrated data processing throughout the firm.

2 b transaction process reporting.

3 c employees with online access to historical records.

4 d middle management functions.

Employees that assist with paperwork at all levels of the firm are called:

1 a data workers.

2 b knowledge workers.

3 c operational management.

4 d service workers.

Equipment scheduling and facilities maintenance are functions of:

1 a finance and accounting systems.

2 b human resources systems.

3 c manufacturing and production systems.

4 d sales and marketing systems.

(Analysis) Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time?

Senior management uses finance and accounting information systems to:

1 a plan long-term profits.

2 b decide where to locate new facilities.

3 c forecast sales trends.

4 d control the firms’ financial resources.

(Synthesis) Which type of information system would an intranet be most easily adapted to?

A wiki is a type of:

1 a social networking site.

2 b blogging.

3 c video conferencing.

4 d Web site designed for collaborative writing and editing.

(Evaluate) You manage the Information Systems department at a small startup Internet advertiser You need to set up an inexpensive system that allows customers to see real-time statistics such as views and click-

throughs about their current banner ads Which type of system will most efficiently provide a solution?

1 a CRM

2 b Enterprise system

3 c Extranet

4 d Intranet

Pricing analysis is an example of a:

1 a sales and marketing information system serving senior management.

2 b sales and marketing information system serving middle management.

3 c finance and accounting information system serving senior management.

4 d finance and accounting information system serving middle management.

Which of the following is a cross-functional business process?

2 b senior management, middle management, and operational management.

3 c management, data workers, and operational management.

4 d senior management, operational management, and workers.

Executive support systems are information systems that support the:

1 a long-range planning activities of senior management.

2 b knowledge and data workers in an organization.

3 c decision-making and administrative activities of middle managers.

4 d day-to-day processes of production.

(Evaluate) What is the most important benefit of an enterprise

application?

1 a Enabling speed of communicating.

2 b Enabling business functions and departments to share information.

3 c Enabling a company to work collaboratively with customers and suppliers.

4 d Enabling cost-effective, e-business processes.

These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance

1 a Management information systems

2 b Transaction processing systems

3 c Decision-support systems

4 d Knowledge management systems

A sales and marketing information system aids operational management in:

1 a tracking sales.

2 b planning new products and services.

3 c analyzing sales performance.

4 d preparing sales forecasts.

(Analysis) Which type of system would you use to determine what trends

in your supplier’s industry will affect your firm the most in five years?

1 a ESS

2 b TPS

3 c MIS

4 d DSS

Compensation analysis is an example of _ information systems

1 a finance and accounting

2 b enterprise application

3 c human resources

4 d sales and marketing

Promoting the organization’s products or services is a responsibility of the _ function

1 a finance and accounting

2 b human resources

3 c manufacturing and production

4 d sales and marketing

(Analysis) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods?

1 a ESS

2 b TPS

3 c MIS

4 d DSS

Key actors in a business’s immediate environment include:

1 a regulations.

2 b technology.

3 c economy.

4 d politics.

Decision-support systems are also referred to as:

1 a business information systems.

2 b business intelligence systems.

3 c executive support systems.

4 d business model systems.

Interaction jobs are those jobs which:

1 a rely primarily on the use of collaborative information systems.

2 b involve knowledge that can't be put into an information system.

3 c are performed typically by operational-level employees.

4 d require intense levels of interaction with clients.

(Synthesis) You work for a highly successful advertiser that is just about

to expand nationally Of utmost importance will be finding a way to store and disseminate their client’s constantly updating branding and style guides, which include multiple image files and text documents, to all of their branches What system will best serve these needs?

1 a An intranet with KMS capabilities

2 b An extranet with KMS capabilities

3 c A TPS with KMS capabilities

4 d A sales and marketing information system

Different firms can work collaboratively on product design, marketing, and production using a(n):

3 c Executive information systems

4 d Transaction processing systems

Policies that determine which information technology will be used, when, and how are provided by:

1 a IT educational services.

2 b IT management services.

3 c Application software services.

4 d IT standards services.

(Analysis) Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?

1 a ESS

2 b TPS

3 c MIS

4 d DSS

Market research is an activity associated with the _ function

1 a finance and accounting

2 b human resources

3 c manufacturing and production

4 d sales and marketing

These systems are designed to support organization-wide process coordination and integration

Management information systems support the:

1 a long-range planning activities of senior management.

2 b knowledge and data workers in an organization.

3 c administrative activities of middle managers.

4 d day-to-day processes of production.

ESS are specifically designed to serve the _ level of the

1 a CRM

2 b MIS

3 c ESS

4 d CPS

(Analysis) A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall into the category of:

1 a knowledge management systems.

2 b transaction support systems.

3 c executive-support systems.

4 d management information systems.

The use of digital technology and the Internet to execute the major

business processes in the enterprise is called:

1 a e-commerce.

2 b e-business.

3 c enterprise applications.

4 d MIS.

The five basic entities that make up any business are suppliers,

customers, employees, products and services, and:

1 a its environment.

2 b manufacturing and production.

3 c sales and marketing.

4 d invoices and payments.

(Synthesis) You have been hired by a non-profit agency to implement a system to handle their donations Event fund-raisers need to be able to quickly access a donor’s information and history The marketing

department needs to be able to create customized mailing lists, in order to send different messages to different types of donors What system(s) will best meet these needs?

1 a transaction processing system

2 b enterprise system

3 c automatic reporting system

4 d management information system

The principal liaison between the information systems groups and the rest

of the organization is a(n):

2 b Supply-chain management

3 c Reverse logistics

4 d Enterprise planning

True - False Questions

Deciding whether to introduce a new product line is the responsibility of

(Analysis) Supply chain management systems are more externally

oriented than enterprise systems

Transaction processing systems are most commonly encountered at the senior management level of an organization

Transaction processing systems are the basic business systems that serve the operational level of the organization

Maintaining online directories of employees with special areas of

expertise is one application of knowledge management systems

1 True

2 False

(Analysis) A hotel reservation system is a typical example of a

management information system

1 True

2 False

ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS

are highly trained technical specialists who write the software instructions for computers.

Answer Given

Programmers

A firm depends heavily on its _ to supply capital, labor, customers, new technology, services and products, stable markets and legal systems, and general educational resources.

Answer Given

environment

A(n) is used by middle management to combine data and sophisticated analytical models or data analysis tools to support

semistructured and unstructured decision making.

Cross-functional processes are those that require input, cooperation, or

coordination between the major business functions in an organization For

instance, when a salesman takes an order, the major business functions of

planning, production, inventory control, shipping, accounting, and customer

relations will all be involved before the order is completed What at first appears to

be a simple process, fulfilling an order, turns out to be a very complicated series ofbusiness processes that require the close coordination of major functional groups

in a firm Second, to efficiently perform all the steps in the order fulfillment processrequires a great deal of information and, in order to be efficient, the rapid flow of information both within the firm (with business partners, such as delivery firms) and with the customer

How can a good CRM system increase profits for a company?

Answer Given

Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm’s interactions with its customers The systems consolidate customer information from multiple sources — telephone, e-mail, wireless devices, traditional sales and marketing systems, and the Web —

so that the firm can obtain a unified view of a customer Understanding the

customer allows a firm to increase the effectiveness of their marketing campaigns

The _ formula calculates the least expensive quantity to reorder for restocking inventory.

Answer Given

“economic order quantity”

are representatives of departments outside of the information systems group for whom applications are developed.

The finance function is responsible for managing the firm’s financial assets, such

as cash, stocks, bonds, and other investments, to maximize the return on these financial assets The finance function is also in charge of managing the

capitalization of the firm To determine whether the firm is getting the best return

on its investments, the finance function must obtain a considerable amount of information from sources external to the firm The accounting function is

responsible for maintaining and managing the firm’s financial records – receipts, disbursements, depreciation, and payroll – to account for the flow of funds in a firm The accounting function obtains information from sources internal to the firm

Identify and discuss the major types of systems in a business from a constituency perspective What is the relationship between these

systems?

Answer Given

There are four major types of information systems in contemporary organizations: Transaction processing systems, such as payroll or order processing, track the flow of the daily routine transactions that are necessary to conduct business; 2) Management information systems (MIS) provide the management control level with reports and access to the organization’s current performance and historical records Most MIS reports condense information from TPS and are not highly analytical; 3) Decision-support systems (DSS) support management decisions when these decisions are unique, rapidly changing, and not specified easily in advance They use advanced analytical models and data analysis capabilities and

often draw on information from external as well as internal sources; 4) Executive support systems (ESS) support senior management by providing data of greatest importance to senior management decision makers ESS provide a generalized computing and communications capacity that can be applied to a changing array

of problems ESS present graphs and data from many sources through an

interface that is easy for senior managers to use, often a portal The various types

of systems in the organization exchange data with one another TPS are a major source of data for other systems MIS summarize and report on the company’s basic operations using data supplied by transaction processing systems AlthoughDSS use internal information from TPS and MIS, they often bring in information from external sources, such as current stock prices or product prices of

competitors ESS are designed to incorporate data about external events, such asnew tax laws or competitors, but they also draw summarized information from internal MIS and DSS

(Evaluation) In your opinion, what are at least three factors that contribute

to the difficulty of integrating systems for different organizational levels and functions within an organization? Support your answer.

Answer Given

An example answer is: Three factors that can contribute include different

computing environments; different data kept; and employee resistance Different computing environments can make it difficult in terms of programming to connect the systems together If the systems have kept different types of data and differentrecords, this may also be a hindrance For example, if some elements in a

database are recorded differently, such as a customer ID not being the same in one area as another, this would make consistency a problem and may contribute

to redundant information There may also be resistance to adopting new,

integrative systems that are more efficient because these may change business processes and the functions of employees People working in an organization maynot want to lose the responsibilities they have and the functions they understand a

Describe the information systems supporting the major business

functions: sales and marketing, manufacturing and production, finance and accounting, and human resources.

Answer Given

• Sales and marketing help the firm identify customers for the firm’s products or services, develop products and services to meet customers’ needs, promote the products and services, sell the products and services, and provide ongoing

customer support; • Manufacturing and production systems deal with the planning,development, and production of products and services, and controlling the flow of