BUS 206 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
There is a growing interdependence between - Answers -Ability to use information technonogy
-Ability to implement corporate strategies and achieve corporate goals
Six Strategic Business Objectives - Answers 1. Operational Excellence
2. New Products, services, and business models
3. Customer and supplier intimacy
4. improved decision making
'5. competitive advantage
Operational Intelligence - Answers business analytics that delivers insight into data, streaming events
and business operations
- improvement of efficiency to attain higher profitability
-important in gaining greater efficiency and productivity
Business Model - Answers describes how a company produces, delivers, and sells a product or service
to create wealth
Customer and supplier intimacy - Answers Serving customers well leads to customers returning, which
raises revenues & profits.
Intimacy with suppliers allows them to provide vital inputs, which lowers costs.
Without Accurate Information - Answers Manager must use forecasts, best guesses, and luck
Results Without Accurate Information - Answers Overproduction, underproduction
Misallocation of resources
Poor response time
With Accurate Information - Answers Track performance
Competitive Advantage - Answers Delivering better performance
Charging less for superior products
Responding to customers and supplier in real time
Information System - Answers -Set of interrelated components
-Collect, process, store, and distribute info
-Support decision making, coordination, and control
Information vs Data - Answers -Data are streams of raw facts
-Information is data shaped into meaningful form
The three activities in an information system that produce the information organizations use to
control operations are: - Answers input
processing
Output
Input - Answers captures or collects raw data from within the organization or from its external
environment
Processing - Answers Converts raw data into meaningful form
Output - Answers transfers the processed information to the people who will use it or to the activities
for which it will be used
Feedback - Answers Output is returned to appropriate members of organization to help evaluate or
correct input stage
Computer/ Computer Program vs. Information System - Answers Computers and software are
technical foundation and tools, similar to the material and tools used to build a house
Hierarchy of Authority, Responsibility - Answers - senior management
- middle management
- operational management- -knowledge workers
- data workers
- production or service workers
Separation of Business Functions - Answers -sales and marketing
-human resources
-finance and accounting
-manufacturing and production
Management - Answers Managers set organizational strategy for responding to Business challenges
Must act creatively to:
create new products/services
, occasionally re-creating the organization
Dimensions of Information Systems: Technology - Answers Computer hardware and software
-Data management technology
-Networking and telecommunications technology
IT infrastructure - Answers provides platform for supporting all information systems in the business
Information system - Answers instrument for creating value
Investments in information technology - Answers -productivity increases
-Revenue increase
-Superior long-term strategic postponing
Relationship influenced by organization's - Answers -structure
-business processes
-politics
-culture
-environment
-Management decisions
Routines (standard operating procedures) - Answers Precise rules, procedures, and practices
developed to cope with virtually all expected situations
Business Processes - Answers Collection of routines
Business Firm - Answers collection of business processes
Organizational Politics - Answers the use of power and influence in organizations
-Divergent viewpoints lead to political struggle, competition, and conflict.
-Political resistance greatly hampers organizational change.
Organizational Culture - Answers -Encompasses set of assumptions that define goal and product
-What products the organization should produce
-How and where it should be produced
-For whom the products should be produced
-May be powerful unifying force as well as restraint on change
Business Processes Example - Answers -Flow of material, information, knowledge
-Sets of Activities, steps
-May be tied to functional area or be cross-functional
Example of Functional Business Processes - Answers -Manufacturing- Assembling the product
-Sales/ Mkt
identifying customers
-HR
Hiring employees
How Information Technology Improves Business Processes - Answers Increasing efficiency of existing
processes
-Automating steps that were manual
-Enabling entirely new processes
-Changing flow of information
-Replacing sequential steps with parallel steps
-Eliminating delays in decision making
-Supporting new business models
Transaction Processing System (TPS) - Answers Basic business system that serves the operational level
and assists in making structured decisions
-Serve predefined, structured goals, and decision making
Systems for business intelligence - Answers Data and software tools for organizing and analyzing dats
-Used to help managers and users make improved decisions
Types of Systems for business intelligence - Answers - management information systems (MIS)
- decision support systems (DSS)
- executive support systems (ESS)
Management Information Systems (MIS) - Answers Serve middle management
Provide reports on firm's current performance, based on data from TPS
Provide answers to routine questions with predefined procedure for answering them
Typically have little analytic capability
Decision Support Systems (DSS) - Answers Serves Middle Management, supports non-routine decision
making, often make use of external information as well TPS/MIS data
There is a growing interdependence between - Answers -Ability to use information technonogy
-Ability to implement corporate strategies and achieve corporate goals
Six Strategic Business Objectives - Answers 1. Operational Excellence
2. New Products, services, and business models
3. Customer and supplier intimacy
4. improved decision making
'5. competitive advantage
Operational Intelligence - Answers business analytics that delivers insight into data, streaming events
and business operations
- improvement of efficiency to attain higher profitability
-important in gaining greater efficiency and productivity
Business Model - Answers describes how a company produces, delivers, and sells a product or service
to create wealth
Customer and supplier intimacy - Answers Serving customers well leads to customers returning, which
raises revenues & profits.
Intimacy with suppliers allows them to provide vital inputs, which lowers costs.
Without Accurate Information - Answers Manager must use forecasts, best guesses, and luck
Results Without Accurate Information - Answers Overproduction, underproduction
Misallocation of resources
Poor response time
With Accurate Information - Answers Track performance
Competitive Advantage - Answers Delivering better performance
Charging less for superior products
Responding to customers and supplier in real time
Information System - Answers -Set of interrelated components
-Collect, process, store, and distribute info
-Support decision making, coordination, and control
Information vs Data - Answers -Data are streams of raw facts
-Information is data shaped into meaningful form
The three activities in an information system that produce the information organizations use to
control operations are: - Answers input
processing
Output
Input - Answers captures or collects raw data from within the organization or from its external
environment
Processing - Answers Converts raw data into meaningful form
Output - Answers transfers the processed information to the people who will use it or to the activities
for which it will be used
Feedback - Answers Output is returned to appropriate members of organization to help evaluate or
correct input stage
Computer/ Computer Program vs. Information System - Answers Computers and software are
technical foundation and tools, similar to the material and tools used to build a house
Hierarchy of Authority, Responsibility - Answers - senior management
- middle management
- operational management- -knowledge workers
- data workers
- production or service workers
Separation of Business Functions - Answers -sales and marketing
-human resources
-finance and accounting
-manufacturing and production
Management - Answers Managers set organizational strategy for responding to Business challenges
Must act creatively to:
create new products/services
, occasionally re-creating the organization
Dimensions of Information Systems: Technology - Answers Computer hardware and software
-Data management technology
-Networking and telecommunications technology
IT infrastructure - Answers provides platform for supporting all information systems in the business
Information system - Answers instrument for creating value
Investments in information technology - Answers -productivity increases
-Revenue increase
-Superior long-term strategic postponing
Relationship influenced by organization's - Answers -structure
-business processes
-politics
-culture
-environment
-Management decisions
Routines (standard operating procedures) - Answers Precise rules, procedures, and practices
developed to cope with virtually all expected situations
Business Processes - Answers Collection of routines
Business Firm - Answers collection of business processes
Organizational Politics - Answers the use of power and influence in organizations
-Divergent viewpoints lead to political struggle, competition, and conflict.
-Political resistance greatly hampers organizational change.
Organizational Culture - Answers -Encompasses set of assumptions that define goal and product
-What products the organization should produce
-How and where it should be produced
-For whom the products should be produced
-May be powerful unifying force as well as restraint on change
Business Processes Example - Answers -Flow of material, information, knowledge
-Sets of Activities, steps
-May be tied to functional area or be cross-functional
Example of Functional Business Processes - Answers -Manufacturing- Assembling the product
-Sales/ Mkt
identifying customers
-HR
Hiring employees
How Information Technology Improves Business Processes - Answers Increasing efficiency of existing
processes
-Automating steps that were manual
-Enabling entirely new processes
-Changing flow of information
-Replacing sequential steps with parallel steps
-Eliminating delays in decision making
-Supporting new business models
Transaction Processing System (TPS) - Answers Basic business system that serves the operational level
and assists in making structured decisions
-Serve predefined, structured goals, and decision making
Systems for business intelligence - Answers Data and software tools for organizing and analyzing dats
-Used to help managers and users make improved decisions
Types of Systems for business intelligence - Answers - management information systems (MIS)
- decision support systems (DSS)
- executive support systems (ESS)
Management Information Systems (MIS) - Answers Serve middle management
Provide reports on firm's current performance, based on data from TPS
Provide answers to routine questions with predefined procedure for answering them
Typically have little analytic capability
Decision Support Systems (DSS) - Answers Serves Middle Management, supports non-routine decision
making, often make use of external information as well TPS/MIS data
