Essentials Of Management Information System Sfsu: Isys 363 - Chapter 2
Multiple choice questions from chapter 2 in Essentials of Management Information System, 9 ed., by Laudon & Laudon.
Questions and Answers
- 1.
A POS system, such as the one selected by Johnny's Lunch in the chapter case study, falls into which category of information system?
- A.
TPS
- B.
KWS
- C.
DSS
- D.
MIS
Correct Answer
A. TPSExplanation
A POS system, or Point of Sale system, is used to process transactions and record sales data in real-time. This system is typically used by businesses to manage their daily operations, such as processing payments, tracking inventory, and generating sales reports. TPS, or Transaction Processing System, is the category of information system that best describes a POS system. TPS is designed to handle the routine transactions of an organization, providing accurate and timely data for operational decision-making.Rate this question:
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- 2.
Executive support systems are information systems that support the:
- A.
Knowledge and data workers in an organization.
- B.
Long-range planning activities of senior management.
- C.
Day-to-day processes of production.
- D.
Decision-making and administrative activities of middle managers.
Correct Answer
B. Long-range planning activities of senior management.Explanation
Executive support systems are specifically designed to provide information and support for the long-range planning activities of senior management. These systems help senior managers analyze data, identify trends, and make strategic decisions for the future of the organization. They provide access to relevant and timely information, such as market research, financial data, and industry trends, which is crucial for effective long-term planning. By focusing on long-range planning, executive support systems enable senior management to set goals, allocate resources, and make informed decisions that align with the organization's overall strategy and vision.Rate this question:
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- 3.
The term "management information systems" designates a specific category of information systems serving:
- A.
Integrated data processing throughout the firm.
- B.
Transaction process reporting.
- C.
Middle management functions.
- D.
Senior management
Correct Answer
C. Middle management functions.Explanation
The term "management information systems" refers to a category of information systems that specifically serve middle management functions. These systems provide middle managers with the necessary information and tools to make informed decisions and carry out their day-to-day responsibilities. They help in areas such as planning, organizing, and controlling operations within the organization. Integrated data processing throughout the firm, transaction process reporting, and senior management are not the main focus of management information systems, making them incorrect options.Rate this question:
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- 4.
A(n) ________ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business.
- A.
Transaction processing system
- B.
Enterprise system
- C.
Management information system
- D.
Automatic reporting system
Correct Answer
B. Enterprise systemExplanation
An enterprise system collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business. It is designed to integrate and streamline different functions within an organization, providing a centralized platform for data management and access. This allows for efficient data sharing and collaboration across departments, improving overall business operations and decision-making processes.Rate this question:
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- 5.
Which of the following is an example of a key force in a firm's broader, less immediate environment?
- A.
Stockholders
- B.
Economic trends
- C.
Shipping firms
- D.
Regulations
Correct Answer
B. Economic trendsExplanation
Economic trends are an example of a key force in a firm's broader, less immediate environment. Economic trends refer to the overall direction in which the economy is moving, such as changes in GDP, inflation rates, or consumer spending habits. These trends can significantly impact a firm's performance and decision-making, as they influence market demand, purchasing power, and overall business conditions. Understanding and adapting to economic trends is crucial for firms to stay competitive and make informed strategic choices.Rate this question:
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- 6.
These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance.
- A.
Management information systems
- B.
Knowledge management systems
- C.
Decision-support systems
- D.
Transaction processing systems
Correct Answer
C. Decision-support systemsExplanation
Decision-support systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance. These systems provide analytical tools and techniques to help managers and decision-makers make informed decisions based on available data and information. They can handle complex and unstructured problems, allowing users to explore different scenarios, analyze data, and generate insights to support decision-making processes. Unlike other systems, decision-support systems are designed to assist in decision-making rather than automate predefined processes.Rate this question:
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- 7.
Checking for product quality is an activity associated with the ________ function.
- A.
Manufacturing and production
- B.
Sales and marketing
- C.
Finance and accounting
- D.
Human resources
Correct Answer
A. Manufacturing and productionExplanation
The activity of checking for product quality is closely related to the manufacturing and production function. This function is responsible for ensuring that the products being produced meet the required standards and specifications. By conducting quality checks, the manufacturing and production department can identify any defects or issues with the products before they are released to the market. This helps in maintaining customer satisfaction and ensuring that only high-quality products are delivered to the customers.Rate this question:
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- 8.
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?
- A.
MIS
- B.
TPS
- C.
DSS
- D.
ESS
Correct Answer
D. ESSExplanation
An Executive Support System (ESS) would be the most appropriate type of system to determine what trends in your supplier's industry will affect your firm the most in five years. ESS is designed to provide high-level executives with the necessary information and tools to make strategic decisions. It collects and analyzes data from various sources, including internal and external data, to provide a comprehensive view of the business environment. Therefore, an ESS would enable executives to identify and understand the trends in the supplier's industry and assess their potential impact on the firm's future.Rate this question:
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- 9.
Development and support services for a firm's business systems are provided by:
- A.
IT educational services.
- B.
IT standards services.
- C.
Application software services.
- D.
IT management services.
Correct Answer
C. Application software services.Explanation
Application software services refer to the development and support services provided for a firm's business systems. These services involve designing, developing, and maintaining application software that meets the specific needs of the business. This includes tasks such as analyzing requirements, coding, testing, and providing ongoing support and updates for the software. IT educational services focus on providing training and education related to IT, IT standards services involve establishing and maintaining IT standards and best practices, and IT management services deal with managing the overall IT infrastructure and operations of a firm.Rate this question:
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- 10.
Policies that determine which information technology will be used, when, and how are provided by:
- A.
Application software services.
- B.
IT management services.
- C.
IT standards services.
- D.
IT educational services.
Correct Answer
C. IT standards services.Explanation
IT standards services provide policies that determine which information technology will be used, when, and how. These services establish guidelines and best practices for technology implementation and usage within an organization. They ensure that technology systems and processes are standardized, interoperable, and aligned with industry standards. By following IT standards, organizations can achieve consistency, efficiency, and compatibility in their IT infrastructure and operations.Rate this question:
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- 11.
Decision-support systems are also referred to as:
- A.
Executive support systems.
- B.
Business model systems.
- C.
Business intelligence systems.
- D.
Business information systems.
Correct Answer
C. Business intelligence systems.Explanation
Decision-support systems are a type of information system that provide users with tools and data to support decision-making processes. They are designed to gather, analyze, and present data in a way that helps users make informed decisions. Business intelligence systems, on the other hand, are specifically focused on collecting and analyzing business data to provide insights and support decision-making. Therefore, the term "business intelligence systems" is the most appropriate term to describe decision-support systems.Rate this question:
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- 12.
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 frequently updated branding and style guides to all of their branches. The guides include multiple image files and text documents. What system will best serve these needs?
- A.
A wiki
- B.
An ESS with collaboration capabilities
- C.
An extranet with KMS capabilities
- D.
A TPS with KMS capabilities
Correct Answer
C. An extranet with KMS capabilitiesExplanation
An extranet with KMS capabilities would be the best system to serve the needs of the highly successful advertiser. An extranet is a private network that allows secure communication and collaboration between different branches or external partners. It would provide a centralized platform for storing and disseminating the client's frequently updated branding and style guides. The KMS capabilities would allow for efficient management and organization of the multiple image files and text documents.Rate this question:
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- 13.
Engineers and architects are examples of:
- A.
Knowledge workers.
- B.
Senior management.
- C.
Middle management.
- D.
Production workers.
Correct Answer
A. Knowledge workers.Explanation
Engineers and architects are considered knowledge workers because they primarily rely on their expertise, skills, and knowledge to perform their job tasks. They are involved in designing, planning, and problem-solving, which require a high level of specialized knowledge and critical thinking. Unlike production workers who focus on manual labor and middle/senior management who oversee operations and make strategic decisions, engineers and architects use their intellectual abilities to create and innovate. They contribute to the development and application of knowledge in their respective fields, making them prime examples of knowledge workers.Rate this question:
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- 14.
A computerized system that performs and records the daily dealings necessary to conduct business is classified as a(n):
- A.
Decision support system.
- B.
Management-level system.
- C.
Transaction-processing system.
- D.
Executive support system.
Correct Answer
C. Transaction-processing system.Explanation
A computerized system that performs and records the daily dealings necessary to conduct business is classified as a transaction-processing system. This system is responsible for processing and recording routine transactions such as sales, purchases, and payments. It is designed to handle large volumes of transactions efficiently and accurately. Unlike other systems mentioned, such as decision support system or executive support system, a transaction-processing system focuses on the operational aspects of a business rather than providing managerial or strategic support. Therefore, the correct answer is transaction-processing system.Rate this question:
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- 15.
________ systems often deliver information to senior executives through a portal.
- A.
Transaction processing
- B.
Decision-support
- C.
Management information
- D.
Executive support
Correct Answer
D. Executive supportExplanation
Executive support systems are specifically designed to provide information and support to senior executives. These systems often deliver information through a portal, which serves as a centralized platform for executives to access relevant data and make informed decisions. Unlike transaction processing systems, which focus on processing day-to-day transactions, executive support systems are geared towards strategic decision-making. They provide high-level insights and analysis, enabling executives to monitor performance, identify trends, and make critical business decisions. Therefore, executive support is the most suitable option for systems that deliver information to senior executives through a portal.Rate this question:
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- 16.
A wiki is a type of:
- A.
Video conferencing.
- B.
Web site designed for collaborative writing and editing.
- C.
Social networking site.
- D.
Blogging.
Correct Answer
B. Web site designed for collaborative writing and editing.Explanation
A wiki is a type of web site designed for collaborative writing and editing. It allows multiple users to contribute and modify content, making it a valuable tool for collaborative projects and knowledge sharing. Unlike video conferencing, social networking sites, or blogging platforms, a wiki specifically focuses on enabling users to create and edit content together in a collaborative manner.Rate this question:
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- 17.
ESS are specifically designed to serve the ________ level of the organization.
- A.
Senior management
- B.
End-user
- C.
Operational
- D.
Middle management
Correct Answer
A. Senior managementExplanation
ESS, or Executive Support Systems, are specifically designed to serve the senior management level of the organization. These systems provide high-level information and analysis to support strategic decision-making and planning by senior executives. They typically focus on providing summarized and consolidated data from various sources, allowing executives to monitor performance, identify trends, and make informed decisions. ESS are not designed for end-users or operational staff, but rather for the top-level management who require access to strategic information. Middle management may use other types of systems, such as management information systems, to support their decision-making needs.Rate this question:
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- 18.
Key forces in a business's immediate environment include:
- A.
Technology.
- B.
Politics.
- C.
Economy.
- D.
Regulations.
Correct Answer
D. Regulations.Explanation
The key forces in a business's immediate environment refer to the external factors that directly impact its operations. These forces include technology, politics, economy, and regulations. While technology, politics, and the economy all play significant roles in shaping a business's environment, regulations have a particularly strong influence. Regulations refer to the rules and laws set by governments or regulatory bodies that businesses must comply with. These regulations can cover various aspects such as product safety, labor practices, environmental standards, and more. Failure to comply with regulations can result in legal consequences, fines, or reputational damage, making it crucial for businesses to navigate and adhere to the regulatory landscape.Rate this question:
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- 19.
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:
- A.
Executive-support systems.
- B.
Transaction support systems.
- C.
Knowledge management systems.
- D.
Management information systems.
Correct Answer
D. Management information systems.Explanation
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 management information systems. This is because it provides information to managers that helps them make decisions and manage the relocation process efficiently. The system collects and analyzes data on costs, allowing managers to monitor and control expenses related to employee relocations. It provides valuable information for planning, budgeting, and evaluating the effectiveness of the relocation program, making it a management information system.Rate this question:
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- 20.
The most widely used collaboration software tool used by very large firms is:
- A.
Google Apps
- B.
Onehub
- C.
Lotus Notes
- D.
Microsoft SharePoint
Correct Answer
C. Lotus NotesExplanation
Lotus Notes is the correct answer because it is known for being one of the most widely used collaboration software tools among large firms. It offers a range of features such as email, instant messaging, document sharing, and workflow management, making it a comprehensive solution for team collaboration. Additionally, Lotus Notes has been in the market for a long time and has established itself as a trusted and reliable tool for large organizations.Rate this question:
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- 21.
The ________ is responsible for ensuring that the company complies with existing data privacy laws.
- A.
CIO
- B.
CKO
- C.
CIP
- D.
CPO
Correct Answer
D. CPOExplanation
The Chief Privacy Officer (CPO) is responsible for ensuring that the company complies with existing data privacy laws. The CPO's role involves developing and implementing privacy policies and procedures, conducting privacy assessments and audits, and providing guidance to the organization on privacy-related matters. They work closely with legal and compliance teams to ensure that the company handles personal data in a lawful and ethical manner, protecting the privacy rights of individuals. The CPO also stays updated on changes in privacy laws and regulations, ensuring that the company adapts its practices accordingly.Rate this question:
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- 22.
Which type of information system would an intranet be most easily adapted to?
- A.
CRM
- B.
TPS
- C.
MIS
- D.
KMS
Correct Answer
D. KMSExplanation
An intranet, which is a private network accessible only to an organization's employees, would be most easily adapted to a Knowledge Management System (KMS). A KMS is designed to capture, store, and distribute an organization's knowledge, making it easily accessible to employees. An intranet can serve as a platform for hosting a KMS, allowing employees to access and contribute to the organization's knowledge resources. This can include documents, databases, forums, wikis, and other collaborative tools that facilitate knowledge sharing and collaboration within the organization.Rate this question:
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- 23.
Interaction jobs are those jobs which:
- A.
Are performed typically by operational-level employees.
- B.
Involve knowledge that can't be put into an information system.
- C.
Are in the service sector and require close coordination, and collaboration.
- D.
Require intense levels of interaction with clients.
Correct Answer
C. Are in the service sector and require close coordination, and collaboration.Explanation
Interaction jobs are a specific type of job that is found in the service sector and involves close coordination and collaboration. These jobs require employees to interact extensively with clients or customers, often in face-to-face or direct communication. They may involve tasks such as customer service, sales, or client management. These jobs typically require employees to have strong interpersonal skills and the ability to effectively communicate and work with others.Rate this question:
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- 24.
In a business environment, the focus of collaboration is to:
- A.
Foster better communication.
- B.
Provide a sense of community.
- C.
Prevent miscommunication.
- D.
Accomplish the task at hand.
Correct Answer
D. Accomplish the task at hand.Explanation
In a business environment, collaboration is aimed at accomplishing the task at hand. This means that the primary goal of collaboration is to work together effectively and efficiently to achieve the objectives and goals of the business. While fostering better communication, providing a sense of community, and preventing miscommunication are important aspects of collaboration, they are ultimately means to the end of successfully completing the tasks and projects required for the business's success.Rate this question:
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- 25.
The principal liaison between the information systems groups and the rest of the organization is a(n):
- A.
Programmer.
- B.
Information systems manager.
- C.
CIO.
- D.
Systems analyst.
Correct Answer
D. Systems analyst.Explanation
A systems analyst is the principal liaison between the information systems groups and the rest of the organization. They act as a bridge between the technical teams and the business users, understanding the needs and requirements of the organization and translating them into technical solutions. They analyze and evaluate existing systems, identify areas for improvement, and recommend new systems or modifications. They also communicate and coordinate with stakeholders to ensure that the systems meet the organization's objectives. A programmer focuses on coding and developing software, an information systems manager oversees the overall management of the information systems function, and a CIO is the highest-ranking executive responsible for the organization's information technology and systems.Rate this question:
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- 26.
A ________ is a senior manager who oversees the use of IT in the firm.
- A.
CIO
- B.
CEO
- C.
CIT
- D.
CFO
Correct Answer
A. CIOExplanation
A CIO, or Chief Information Officer, is a senior manager who is responsible for overseeing the use of information technology (IT) within a firm. They are in charge of developing and implementing IT strategies that align with the company's goals and objectives. The CIO ensures that the firm's IT systems and infrastructure are efficient, secure, and meet the needs of the organization. They also play a crucial role in decision-making processes related to technology investments and innovations.Rate this question:
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- 27.
Which type of system would you use to forecast the return on investment if you used new suppliers with better delivery track records?
- A.
DSS
- B.
ESS
- C.
MIS
- D.
TPS
Correct Answer
A. DSSExplanation
A Decision Support System (DSS) would be the appropriate system to use in order to forecast the return on investment when considering new suppliers with better delivery track records. DSS is designed to provide analytical tools and models to support decision-making processes. In this case, the DSS can analyze the historical data of the new suppliers' delivery track records and provide insights on the potential impact on the return on investment. By using a DSS, decision-makers can make informed decisions based on data-driven forecasts.Rate this question:
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- 28.
These systems are designed to support organization-wide process coordination and integration.
- A.
Decision-support systems
- B.
CRM
- C.
Management information systems
- D.
Enterprise applications
Correct Answer
D. Enterprise applicationsExplanation
Enterprise applications are designed to support organization-wide process coordination and integration. These applications provide a comprehensive solution for managing various aspects of an organization, including customer relationship management (CRM), decision support systems, and management information systems. By integrating different processes and functions within an organization, enterprise applications help streamline operations and improve overall efficiency. These systems often include modules for finance, human resources, supply chain management, and other key business functions, allowing for seamless coordination and communication across departments.Rate this question:
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- 29.
You have been hired by Inspiration Inc, to help improve their profit margin. Inspiration Inc. is a business communications consultancy that services many clients in different industries throughout the U.S. The end products of the company are customized recommendations for the best use of a client's existing resources for improving internal communications, typically delivered via documentation in different media. The company has approximately 100 consultants all of whom are located in their central headquarters in Chicago. What system do you recommend to improve the company's business processes and increase their profit margin?
- A.
Video conferencing system, for improving collaboration
- B.
KMS, for minimizing redundant work on similar clients
- C.
Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed
- D.
CRM, to maintain easily accessible customer records to minimize the time spent looking for client data
Correct Answer
C. Extranet, to enable quick collaboration over the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork neededExplanation
Implementing an extranet system would enable quick collaboration over the internet, allowing consultants to communicate with clients efficiently. This would reduce the time spent on communication and minimize the amount of paperwork needed, ultimately improving the company's business processes. Additionally, the extranet would facilitate easy access to client data, helping consultants to quickly retrieve necessary information and thus saving time. Overall, the use of an extranet system would streamline operations, increase productivity, and contribute to improving the company's profit margin.Rate this question:
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- 30.
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?
- A.
MIS
- B.
ESS
- C.
TPS
- D.
DSS
Correct Answer
B. ESSExplanation
ESS stands for Executive Support System, which is a type of system that provides top-level executives with information and analysis to support strategic decision-making. In this case, using an ESS would be the most appropriate choice because it is designed to help executives identify and analyze trends and make long-term strategic decisions. MIS (Management Information System) focuses on providing operational information to middle-level managers, TPS (Transaction Processing System) focuses on processing and recording day-to-day transactions, and DSS (Decision Support System) focuses on providing analytical tools and models to support decision-making at all levels of the organization.Rate this question:
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- 31.
________ systems provide information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
- A.
CPS
- B.
CRM
- C.
ESS
- D.
MIS
Correct Answer
B. CRMExplanation
CRM stands for Customer Relationship Management. It is a system that provides information to coordinate all of the business processes that deal with customers in sales, marketing, and service. The purpose of CRM is to optimize revenue, customer satisfaction, and customer retention. It helps businesses manage and analyze customer interactions and data throughout the customer lifecycle, enabling them to build stronger relationships with their customers and improve overall business performance.Rate this question:
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- 32.
Buying or selling goods over the Internet is called:
- A.
E-business.
- B.
E-commerce.
- C.
An intranet.
- D.
An extranet.
Correct Answer
B. E-commerce.Explanation
The correct answer is e-commerce. E-commerce refers to the buying and selling of goods over the Internet. It involves online transactions, electronic funds transfer, and online shopping platforms. E-commerce has revolutionized the way businesses operate, allowing them to reach a global audience and conduct transactions electronically. It has become an essential part of the modern economy, providing convenience and accessibility to both businesses and consumers.Rate this question:
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- 33.
What analytical framework discussed in the chapter helps understand and evaluate the benefits and uses of collaboration tools?
- A.
Cost/use matrix
- B.
Time/space matrix
- C.
Space/cost matrix
- D.
Task/time matrixs
Correct Answer
B. Time/space matrixExplanation
The time/space matrix is an analytical framework discussed in the chapter that helps understand and evaluate the benefits and uses of collaboration tools. This matrix considers the trade-off between time and space in collaboration, where time refers to the speed of communication and decision-making, and space refers to the physical distance between collaborators. By analyzing this matrix, one can assess how collaboration tools can reduce time delays and overcome geographical barriers, leading to improved efficiency and effectiveness in collaborative work.Rate this question:
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- 34.
A finance and accounting information system aids operational management with:
- A.
Establishing long term investment goals.
- B.
Profit planning.
- C.
Accounts receivable.
- D.
Budgeting.
Correct Answer
C. Accounts receivable.Explanation
A finance and accounting information system aids operational management by providing tools and processes to effectively manage and track accounts receivable. This includes monitoring and analyzing customer payments, managing outstanding invoices, and generating reports on cash flow and credit management. By having a reliable system in place, operational management can improve cash flow, reduce bad debt, and make informed decisions regarding credit policies and collections.Rate this question:
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- 35.
A sales and marketing information system aids middle management in:
- A.
Tracking sales.
- B.
Preparing sales forecasts.
- C.
Analyzing sales performance.
- D.
Planning new products and services.
Correct Answer
C. Analyzing sales performance.Explanation
A sales and marketing information system helps middle management by providing them with the necessary tools and data to analyze sales performance. This includes tracking sales, preparing sales forecasts, and evaluating the effectiveness of marketing strategies. By analyzing sales performance, middle management can identify areas of improvement, make informed decisions, and develop strategies to increase sales and profitability. Planning new products and services is not directly related to analyzing sales performance and falls more under the domain of product development and marketing strategy.Rate this question:
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- 36.
A sales and marketing information system aids operational management in:
- A.
Tracking sales.
- B.
Planning new products and services.
- C.
Analyzing sales performance.
- D.
Preparing sales forecasts.
Correct Answer
A. Tracking sales.Explanation
A sales and marketing information system aids operational management by tracking sales. This means that the system helps in monitoring and recording the sales activities of the company. By keeping track of sales, the system provides valuable information that can be used for various purposes such as evaluating the effectiveness of marketing strategies, identifying trends, and making informed decisions about sales performance. This information is crucial for operational management to assess the success of sales efforts and make necessary adjustments or improvements.Rate this question:
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- 37.
Budgeting is typically a feature of an information system serving:
- A.
Operational management.
- B.
Sales and marketing.
- C.
Senior management.
- D.
Middle management.
Correct Answer
D. Middle management.Explanation
Budgeting is typically a feature of an information system serving middle management. Middle management is responsible for planning and controlling the day-to-day operations of a company. Budgeting helps middle managers allocate resources, set goals, and monitor performance. It allows them to make informed decisions and ensure that the organization's financial resources are used effectively. Budgeting is less relevant for operational management, as their focus is on executing tasks, and for sales and marketing, as their main concern is generating revenue. Senior management, on the other hand, is more concerned with strategic planning and overall direction of the company.Rate this question:
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- 38.
Compensation analysis is an example of ________ information systems.
- A.
Finance and accounting
- B.
Enterprise application
- C.
Sales and marketing
- D.
Human resources
Correct Answer
D. Human resourcesExplanation
Compensation analysis is a process that involves evaluating and determining the appropriate compensation for employees within an organization. This includes analyzing factors such as salary, bonuses, benefits, and incentives. Since compensation analysis is directly related to managing and administering employee compensation, it falls under the purview of human resources. Therefore, the correct answer is human resources.Rate this question:
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- 39.
Which of the following types of system could be used to enable different firms to work collaboratively on a product?
- A.
Intranet
- B.
Extranet
- C.
KMS
- D.
CRM
Correct Answer
B. ExtranetExplanation
An extranet is a type of system that allows different firms to work collaboratively on a product. Unlike an intranet, which is limited to internal use within a single organization, an extranet extends access to external parties such as suppliers, partners, or customers. This enables secure communication, data sharing, and collaboration between multiple organizations, making it an ideal solution for collaborative work on a product. KMS (Knowledge Management System) and CRM (Customer Relationship Management) systems, on the other hand, are not specifically designed for collaborative work between different firms.Rate this question:
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- 40.
Employees that assist with paperwork at all levels of the firm are called:
- A.
Data workers.
- B.
Knowledge workers.
- C.
Operational management.
- D.
Service workers.
Correct Answer
A. Data workers.Explanation
The correct answer is data workers. Data workers are employees who assist with paperwork at all levels of the firm. They are responsible for handling and processing large amounts of data and information, ensuring its accuracy and organization. They play a crucial role in maintaining and managing the company's data, which is essential for decision-making and efficient operations.Rate this question:
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- 41.
Equipment scheduling and facilities maintenance are functions of:
- A.
Finance and accounting systems.
- B.
Human resources systems.
- C.
Manufacturing and production systems.
- D.
Sales and marketing systems.
Correct Answer
C. Manufacturing and production systems.Explanation
Equipment scheduling and facilities maintenance are functions that are directly related to the manufacturing and production processes of a company. These activities involve managing the usage and maintenance of equipment and facilities to ensure smooth operations and minimize downtime. Finance and accounting systems primarily deal with financial transactions and record-keeping, while human resources systems focus on managing personnel and employee-related processes. Sales and marketing systems are responsible for activities related to generating sales and promoting products or services. Therefore, the correct answer is manufacturing and production systems.Rate this question:
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- 42.
Management information systems support the:
- A.
Long-range planning activities of senior management.
- B.
Knowledge and data workers in an organization.
- C.
Administrative activities of middle managers.
- D.
Day-to-day processes of production.
Correct Answer
C. Administrative activities of middle managers.Explanation
Management information systems support the administrative activities of middle managers. These systems provide middle managers with the necessary information to make decisions and carry out their day-to-day tasks effectively. They help in tasks such as monitoring and controlling operations, allocating resources, coordinating activities, and communicating with both higher-level management and lower-level employees. By providing timely and accurate information, management information systems enable middle managers to streamline administrative processes, improve efficiency, and achieve organizational goals.Rate this question:
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- 43.
Pricing analysis is an example of a:
- A.
Sales and marketing information system serving senior management.
- B.
Sales and marketing information system serving middle management.
- C.
Finance and accounting information system serving senior management.
- D.
Finance and accounting information system serving management.
Correct Answer
B. Sales and marketing information system serving middle management.Explanation
Pricing analysis involves evaluating the pricing strategies and determining the optimal price for a product or service. This information is crucial for the sales and marketing team to effectively position and promote the product in the market. Middle management, who are responsible for implementing sales and marketing strategies, would use this information to make informed decisions and develop effective pricing strategies. Therefore, pricing analysis is an example of a sales and marketing information system serving middle management.Rate this question:
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- 44.
____support making decisions that are unique, rapidly changing, and not easily specified in advance:
- A.
Decision-support systems
- B.
Management information systems
- C.
Executive support systems
- D.
Transaction processing systems
Correct Answer
A. Decision-support systemsExplanation
Decision-support systems are designed to assist in making decisions that are unique, rapidly changing, and not easily specified in advance. These systems provide analytical tools and models that help users analyze complex data, evaluate different scenarios, and generate insights to support decision-making processes. Unlike other systems like management information systems, executive support systems, and transaction processing systems, decision-support systems are specifically tailored to handle complex and unstructured decision-making tasks. They provide the necessary tools and information to facilitate informed and effective decision-making in dynamic and unpredictable situations.Rate this question:
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- 45.
____ systems integrate and share information from supplier, manufacturer, distributor, and customer logistics processes.
- A.
Supply-chain management
- B.
Collaborative distribution
- C.
Reverse logistics
- D.
Enterprise planning
Correct Answer
A. Supply-chain managementExplanation
Supply-chain management refers to the coordination and integration of various activities involved in the flow of goods, services, and information from suppliers to customers. It involves managing the entire supply chain, including suppliers, manufacturers, distributors, and customers. By integrating and sharing information from all these stakeholders, supply-chain management systems ensure smooth and efficient logistics processes. These systems enable better coordination, visibility, and decision-making, leading to improved customer satisfaction, reduced costs, and enhanced overall performance.Rate this question:
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- 46.
These systems are typically a major source of data for other systems:
- A.
Transaction processing systems.
- B.
Management information systems.
- C.
Executive support systems.
- D.
Decision-support systems.
Correct Answer
A. Transaction processing systems.Explanation
Transaction processing systems are typically a major source of data for other systems because they capture and store detailed information about the day-to-day transactions and operations of an organization. This data can then be used by other systems, such as management information systems, executive support systems, and decision-support systems, to generate reports, provide insights, and support decision-making processes. Transaction processing systems ensure the accuracy and reliability of data, making them essential for feeding information into other systems within an organization.Rate this question:
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- 47.
The three principal levels of hierarchies within a business organization are:
- A.
Management, knowledge workers, and service workers.
- B.
Senior management, middle management, and operational management.
- C.
Management, data workers, and operational management.
- D.
Senior management, middle management, and service workers.
Correct Answer
B. Senior management, middle management, and operational management.Explanation
The correct answer is senior management, middle management, and operational management. This answer accurately identifies the three principal levels of hierarchies within a business organization. Senior management refers to the top-level executives who make strategic decisions and set goals for the organization. Middle management is responsible for implementing the strategies and overseeing the work of lower-level employees. Operational management focuses on day-to-day operations and supervises the frontline workers who directly deliver products or services. This hierarchy structure allows for efficient decision-making, coordination, and execution at different levels of the organization.Rate this question:
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- 48.
The use of digital technology and the Internet to execute the major business processes in the enterprise is called
- A.
E-commerce
- B.
E-business
- C.
Enterprise applications
- D.
MIS
Correct Answer
B. E-businessExplanation
E-business refers to the use of digital technology and the Internet to carry out various business processes within an enterprise. It encompasses a wide range of activities including online marketing, online sales, online customer service, and online collaboration with business partners. Unlike e-commerce, which specifically focuses on online buying and selling of goods and services, e-business encompasses a broader scope of digital operations in the business environment. Enterprise applications and MIS (Management Information Systems) are related terms but do not specifically refer to the use of digital technology and the Internet for business processes like e-business does.Rate this question:
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- 49.
What is the most important benefit of an enterprise application?
- A.
Enabling business functions and departments to share information.
- B.
Enabling cost-effective, e-business processes.
- C.
Enabling speed of communicating.
- D.
Enabling a company to work collaboratively with customers and suppliers.
Correct Answer
A. Enabling business functions and departments to share information.Explanation
The most important benefit of an enterprise application is enabling business functions and departments to share information. This allows for better collaboration and coordination within the organization, leading to improved efficiency and decision-making. By facilitating the exchange of data and knowledge across different teams and departments, an enterprise application promotes a more integrated and streamlined workflow, ultimately driving productivity and success.Rate this question:
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- 50.
Which of the following is a cross-functional business process?
- A.
Hiring an employee.
- B.
Identifying a customer.
- C.
Fulfilling a customer order.
- D.
Creating an invoice.
Correct Answer
C. Fulfilling a customer order.Explanation
A cross-functional business process involves multiple departments or functions working together to achieve a common goal. Hiring an employee, identifying a customer, and creating an invoice are all tasks that can be completed by a single department or function within a business. However, fulfilling a customer order typically requires coordination and collaboration between various departments such as sales, operations, and logistics, making it a cross-functional business process.Rate this question:
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