1. The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and:


a.†††† improved flexibility.

b.††† improved decision making.

c.†††† improved business practices.

d.††† improved efficiency.


2. Verizonís implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of:


a.         improved flexibility.

b.         improved decision making.

c.         improved efficiency.

d.††† customer and supplier intimacy.


3. An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:


a.†††† decision making and control in an organization.

b.††† communications and data flow.

c.†††† managers analyzing the organizationís raw data.

d.††† the creation of new products and services.


4. A managerial element in the UPS tracking system described in the chapter is

A) taking inventory.

B) providing package status reports to customers.

C) the decision to use automation.

D) in-house package tracking software.


5. Which field of study focuses on both a behavioral and technical understanding of information systems?


a.†††† Sociology

b.†††† Operations research

c.†††† Economics

d.††† Management information systems


6. Which of the following are key corporate assets?

A) intellectual property, core competencies, and financial and human assets

B) production technologies and business processes for sales, marketing, and finance

C) knowledge and the firm's tangible assets, such as goods or services

D) time and knowledge


7. Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to:


a.†††† invest in technology.

b.††† adopt a new business model.

c.†††† invest in complementary assets.

d.††† modernize their information value chain.


8. An example of a business using information systems to attain operational excellence is:


a.†††† Wal-Martís RetailLink system.

b.††† the Mandarin Oriental hotelís customer-preference tracking system.

c.†††† Verizonís Web-based digital dashboard.

d.††† Apple Inc.ís iPod.


9. Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organizationís:


a.†††† data managementenvironment.

b.††† networked environment.

c.†††† IT infrastructure.

d.††† information system.


10. Data management technology consists of:


a.†††† the physical hardware and media used by an organization for storing data.

b.††† the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.

c.†††† the software governing the organization of data on physical storage media.

d.††† the hardware and software used to transfer data.





1.      Answer:b††††††††††††† Difficulty:Easy††††††††††††††††††††† Reference:p. 12

2.      Answer:b †††††††††††† Difficulty:Medium††††††††††††††† Reference:p. 14

3.      Answer: a††††††††††††† Difficulty:Medium††††††††††††††† Reference:p. 16

4.      Answer:c††††††††††††† Difficulty:Medium††††††††††††††† Reference:p. 22

5.      Answer:d††††††††††††† Difficulty:Medium††††††††††††††† Reference:pp. 16Ė17

6.      Answer:a †††††††††††† Difficulty:Hard†††††††††††††††††††† Reference:p. 11

7.      Answer:b †††††††††††† Difficulty:Medium††††††††††††††† Reference: p. 27

8.      Answer:a††††††††††††† Difficulty:Hard†††††††††††††††††††† Reference:p. 13

9.      Answer:c †††††††††††† Difficulty:Medium††††††††††††††† Reference:pp. 22

10.  Answer:c †††††††††††† Difficulty:Medium††††††††††††††† Reference:p. 21