Product Description


Multiple Choice

1. __________ are planning and control systems that capture and record all of the company’s data from operations, and perform the routine transactions needed to conduct business on an ongoing day-to-day basis.

a) Operational information systems

b) Strategic information systems

c) Databases

d) Inter-organizational systems

2. Why did the largest Scandinavian food retailer group, Axfood AB, invest 200 million SEK (20.4 million Euros or US$25.6 million) in an IT platform?

a) To develop multi-cultural e-commerce capabilities

b) To fully integrate its diverse IT infrastructure to coordinate and connect its operations

c) To implement advanced technologies, including tags, RFID, and social media

d) To develop order fulfillment and logistics capabilities

3. Why are the three levels of management and decision making often modeled as a pyramid?  .

a) To show the importance of senior management decision making on the organization.

b) To show the importance of the decisions made at each management level.

c) To show the hierarchy of the management levels.

d) All of the above.

4. Each level of management has its own _____.

a) data needs

b) decision making responsibilities

c) time horizons

d) All of the above

5. Strategic level decisions are visionary and future-oriented. What types of data are specifically required for these decisions?

a) Real-time transactional and POS data.

b) Internal data sales about inventory levels, orders, and customer support.

c) External and internal data that has a one to three year time horizon.

d) External data about the economy, competitors, and business trends.

6. What types of data are specifically required for decisions made at the managerial or administrative level?

a) Real-time transactional and POS data.

b) Internal data sales about inventory levels, orders, and customer support.

c) External and internal data that has a one to three year time horizon.

d) External data about the economy, competitors, and business trends.

7. At the __________ level, decisions are made to control the day-to-day activities.

a) operational

b) strategic

c) administrative

d) senior

8. The data requirements of operational-level units are __________ because they depend heavily on standard operating procedures.

a) extensive, unique, and change frequently

b) extensive, routine, and rarely change

c) limited and customized

d) external, unstructured, and constant

9. Data integrity with real-time systems involves __________, which means that if all steps in a transaction are not completed, then the entire transaction is cancelled.

a) atomicity

b) consistency

c) isolation

d) durability

10. Which is not one of the key characteristics of a TPS?

a) Large volumes of data are processed

b) Involves extensive computation complexity

c) Data sources are mostly internal, and the output is intended mainly for internal users and trading partners

d) Involves a high level of detailed raw data

11. Generally speaking, why do organizations automate TPS data entry as much as possible?

a) To reduce labor costs

b) To be able to capture online data

c) For competitive advantage

d) To minimize errors and data entry time

12. A company’s payroll systems prepare and process the payroll data periodically, such as at the end of the work week. This type of processing is known as __________.

a) batch

b) real-time

c) online

d) data warehousing

13. In__________, data can be accessed directly from operational databases and all transactions are processed as soon as they occur.

a) batch processing

b) online analytic processing (OLAP)

c) online transaction processing (OLTP)

d) POS processing

14. First Choice Ski increased the number of Web site sales by 266%.and improved business performance after implementing __________, which enabled them to respond quickly to visitors’ clickstream behavior.


b) order processing

c) POM systems

d) Web analytics

15. __________ deals with ordering, purchasing, receiving, and shipping activities.

a) Order fulfillment management

b) Production management

c) Logistics management

d) Vendor inventory management

16. POM departments may keep __________which is extra inventory in case of unexpected events, such as spikes in demand or delivery delays.

a) buffer stock

b) safety stock

c) shortage stock

d) a and b

17. A company’s inventory control system seeks to minimize each of the following cost categories except:

a) cost of labor

b) cost of holding inventory

c) cost of ordering and shipping

d) cost of inventory shortage

18. Toyota implemented __________ inventory management to minimize holding costs by not taking possession of inventory until it is needed in the production process.

a) economic order quantity (EOQ)

b) just-in-time (JIT)

c) quality control (QC)

d) total quality management (TQM)

19. Characteristics of projects that make them different from operations include each of the following except:

a) are unique undertakings

b) have a high degree of certainty with respect to costs and completion times

c) may compete and conflict with other business activities

d) involve a high risk of delay and failure, but has high profit potential or benefit

20. In the August 2008 benchmark study, “Customer Analytics: Segmentation Beyond Demographics,” respondents stated that their top data-related challenge was__________.

a) poor data quality

b) inability to collect data needed to calculate key performance metrics

c) information overload

d) encrypting data for security

21. A leading sales automation software is __________, which is especially helpful to small businesses, enabling them to rapidly increase sales and growth.


b) SoftwarePlus

c) PriceMaster Plus


22. The Exxon Mobil Speedpass allows customers to fill their tanks by waving a token, embedded with an RFID device, at a gas-pump sensor. This is an example of __________.

a) data-driven marketing

b) a distribution channel

c) inventory control

d) a marketing channel

23. Marketing channel systems consist of each of the following systems except:

a) market intelligence

b) target marketing

c) sales

d) project

24. Marketing ISs consist of __________ to gather, sort, analyze, evaluate, and distribute relevant, timely, complete, and accurate data for use by marketing decision makers to improve planning, implementation, and control.

a) software and hardware

b) procedures and policies

c) people, equipment, and procedures

d) channels

25. Sales volumes of products and services are largely determined by __________, which is also a major determinant of profit.

a) price

b) advertising

c) customer service

d) e-commerce

26. Effective __________ are critical to an organization’s financial performance because fraud is easy to commit and hard to detect.

a) financial statement systems

b) auditing information systems

c) consolidated systems

d) compliance systems

27. Bernie Madoff committed a record-setting fraud scheme for many years __________ was passed to prevent financial fraud.

a) before the Foreign Corrupt Practices Act

b) before the Sarbanes-Oxley Act

c) after the Sarbanes-Oxley Act

d) after the Patriots Act

28. Inaccurate __________ is the number-one reason why many small businesses go bankrupt.

a) billing

b) credit management

c) cash flow projection

d) demand forecasting

29. __________ tells organizations what funds they need and when, and how they will acquire them.

a) Billing

b) Credit management

c) Cash flow projection

d) Demand forecasting

30. The best-known part of financial planning is the __________, which allocates the financial resources of an organization among participants, activities, and projects.

a) annual budget

b) income statement

c) balance sheet

d) owners equity

31. Which is not one of the benefits of using budgeting software?

a) Reduce the time and effort involved in the budget process.

b) Make planning an ongoing continuous process.

c) Evaluate buy-versus-lease options

d) Automatically monitor exceptions for patterns and trends.

32. __________ is the process of identifying the financing of assets, including software, that need to be acquired or developed; and comparing alternatives.

a) NPV

b) Capital budgeting

c) ROI

d) General ledger

33. __________ is a programming language and an international standard for electronic transmission of business and financial information. It helps generate cleaner data, including written explanations and supporting notes.

a) SEC


c) Excel


34. The major purpose of __________ is to protect and defend the accuracy and condition of the financial health of an organization.

a) auditing

b) budgeting

c) financial planning

d) ratio analysis

35. __________ is a field that deals with policies, procedures, compliance requirements, and acquiring and keeping people in organizations.

a) Accounting

b) Human resources

c) Marketing

d) Management

36. __________ at virtual worlds and social networking sites is very popular. It is done at most major sites, such as LinkedIn, MySpace, Facebook, Craigslist, and Second Life.

a) Risk management

b) Distribution

c) Recruitment

d) Forecasting

37. Hewlett-Packard’s U.S. Field Services Operations (USFO) Group has developed a paperless wage review system. The Web-based system uses __________ to manage quarterly reviews of HP’s 15,000 employees.

a) analytics

b) intelligent agents

c) portals


38. Some of the most innovative HR developments are in the area of live online training (LOT) using __________ or other online meeting software.

a) CIM

b) TUN

c) VIS

d) WebEx

39. Providing flexibility in selecting benefits is viewed as a competitive advantage in large organizations. Employees can self-register for specific benefits using menus from a __________ or __________.

a) corporate portal; voice technology

b) blog; wiki

c) social network; extranet

d) All of the above

40. Improved relationships with employees result in better retention and higher productivity. Therefore, companies invest in __________, which includes self-services such as tracking personal information and online training.

a) benefits management

b) employee relationship management

c) budgeting management

d) intelligent agents

41. Training activities that are part of HRM may involve __________ issues in recruiting and selecting employees and in evaluating performance, in part because these activities make use of private confidential information.

a) strategic

b) operational

c) ethical

d) budget

42. An effective technology for e-training and e-learning is __________, which uses computer graphic displays that the user can adjust during the decision-making process to see the results of an intervention.

a) LOT

b) flash

c) WebEx

d) visual interactive simulation (VIS),

43. Second Life has a special forum on training and learning using __________ that organizations can use for employees, partners, and customers.

a) videoconferencing

b) animations

c) simulations

d) virtual worlds

44. The traveling circus Cirque du Soleil schedules and transports 20,000 performers and stage equipment and costumes, which are changing constantly. To manage HR, finance, logistics, and production scheduling applications, the company implemented __________ software, which enabled data sharing.

a) Cisco

b) IBM WebSphere Business Integration


d) Trovix Intelligent Search

45. Human resources information systems (HRISs), which were implemented on company networks since the late 1990s, have been moved to intranets and __________; and HR apps are leased in __________ arrangements.

a) social networks; vendor

b) proprietary databases; ERM

c) cloud computing; software as a service (SaaS)

d) virtual worlds; intelligent agent


46. Each level of management has its own data needs, decision making responsibilities, and time horizons.

47. At the strategic level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

48. At the operational level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

49. Tracking sales, inventory levels, orders, and customer support are examples of control activities.

50. A standard operating procedure, or SOP, is a loosely defined and suggested procedure for completing a process or function, such as a quality control process or function.

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