CITM 102 - Chapter 1 Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of the following is not one of the six strategic business objectives of information systems?
A) New products and services
B) Improved decision making
C) Competitive advantage
D) Improved employee morale
E) Survival - CORRECT ANSWER D
Verizon's use of a web-based digital dashboard to provide managers with precise real-time
information enabled it to improve which of the following?
A) Compliance with regulations
B) Managerial decision making
C) Efficiency in creation of new products
D) Employee morale
E) Intimacy with its suppliers - CORRECT ANSWER B
Which of the following may lead to competitive advantage?
1. New products, services, and business models;
2. Charging less for superior products;
3. Responding to customers in real time
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3 - CORRECT ANSWER E
,A firm that invests in an information system because it is a necessity of doing business does so
because it is seeking to achieve which of the following business objectives?
A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival - CORRECT ANSWER E
The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of
which of the following?
A) Improved flexibility
B) Improved decision making
C) Improved efficiency
D) Customer intimacy
E) Operational excellence - CORRECT ANSWER D
Competitors were seeking which of the following business objectives when they rushed to provide
ATMs after Citibank introduced the first ATMs in New York?
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
D) Competitive advantage
E) Improved decision making - CORRECT ANSWER C
Which of the following is the key business metric behind the technologies implemented by Kroger, as
discussed in the chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
, C) Improved employee morale
D) Improved decision making
E) Reduced cost of supplies - CORRECT ANSWER A
Which of the following is an example of a business using information systems to create a new
product?
A) Walmart's RetailLink system
B) The Mandarin Oriental's use of computers to keep track of guest preferences
C) Verizon's use of a web-based digital dashboard to provide real-time company information for
managers
D) Apple's creation of the iPod
E) Kroger's use of sensors to monitor cold food storage temperatures - CORRECT ANSWER D
Walmart exemplifies the power of information systems coupled with state-of-the-art business
practices and supportive management to achieve which of the following?
A) New products and services
B) Operational efficiency
C) Survival
D) Customer intimacy
E) Competitive advantage - CORRECT ANSWER B
How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2015?
A) About $100 million
B) About $1 billion
C) About $100 billion
D) About $1 trillion
E) About $10 trillion - CORRECT ANSWER D
QUESTIONS AND CORRECT ANSWERS
Which of the following is not one of the six strategic business objectives of information systems?
A) New products and services
B) Improved decision making
C) Competitive advantage
D) Improved employee morale
E) Survival - CORRECT ANSWER D
Verizon's use of a web-based digital dashboard to provide managers with precise real-time
information enabled it to improve which of the following?
A) Compliance with regulations
B) Managerial decision making
C) Efficiency in creation of new products
D) Employee morale
E) Intimacy with its suppliers - CORRECT ANSWER B
Which of the following may lead to competitive advantage?
1. New products, services, and business models;
2. Charging less for superior products;
3. Responding to customers in real time
A) 1 only
B) 1 and 2
C) 2 and 3
D) 1 and 3
E) 1, 2, and 3 - CORRECT ANSWER E
,A firm that invests in an information system because it is a necessity of doing business does so
because it is seeking to achieve which of the following business objectives?
A) Operational excellence
B) Improved decision making
C) Competitive advantage
D) Customer intimacy
E) Survival - CORRECT ANSWER E
The Mandarin Oriental's use of computer systems to keep track of guests' preferences is an example of
which of the following?
A) Improved flexibility
B) Improved decision making
C) Improved efficiency
D) Customer intimacy
E) Operational excellence - CORRECT ANSWER D
Competitors were seeking which of the following business objectives when they rushed to provide
ATMs after Citibank introduced the first ATMs in New York?
A) Improved efficiency
B) Customer and supplier intimacy
C) Survival
D) Competitive advantage
E) Improved decision making - CORRECT ANSWER C
Which of the following is the key business metric behind the technologies implemented by Kroger, as
discussed in the chapter-opening case?
A) Higher customer satisfaction levels
B) Survival
, C) Improved employee morale
D) Improved decision making
E) Reduced cost of supplies - CORRECT ANSWER A
Which of the following is an example of a business using information systems to create a new
product?
A) Walmart's RetailLink system
B) The Mandarin Oriental's use of computers to keep track of guest preferences
C) Verizon's use of a web-based digital dashboard to provide real-time company information for
managers
D) Apple's creation of the iPod
E) Kroger's use of sensors to monitor cold food storage temperatures - CORRECT ANSWER D
Walmart exemplifies the power of information systems coupled with state-of-the-art business
practices and supportive management to achieve which of the following?
A) New products and services
B) Operational efficiency
C) Survival
D) Customer intimacy
E) Competitive advantage - CORRECT ANSWER B
How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2015?
A) About $100 million
B) About $1 billion
C) About $100 billion
D) About $1 trillion
E) About $10 trillion - CORRECT ANSWER D
