Chapter 1 Business Information Systems in Your Career
1) 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
Answer: A
Difficulty: 3: Challenging
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business
today?
2) Journalist Thomas Friedman's description of the world as "flat" refers to the:
A) flattening of economic and cultural advantages of developed countries.
B) use of the Internet and technology for instantaneous communication.
C) reduction in travel times and the ubiquity of global exchange and travel.
D) growth of globalization.
E) increased use of global currencies.
Answer: A
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business
today?
2 1
,3) The six important business objectives of information system investment include all of
the following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
E) new products.
Answer: B
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business
today?
4) 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) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy
Answer: A
Difficulty: 2: Moderate
AACSB: Information Technology
2 1
,LO: 1-1: Why are information systems so essential for running and managing a business
today?
5) Walmart exemplifies the power of information systems coupled with excellent business
practices and supportive management to achieve which of the following?
A) New business models
B) Operational efficiency
C) Customer intimacy
D) Competitive advantage
E) Survival
Answer: B
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1-1: Why are information systems so essential for running and managing a business
today?
6) Verizon's 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) competitive advantage.
D) supplier intimacy.
E) a new product.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
2 1
, LO: 1-1: Why are information systems so essential for running and managing a business
today?
7) Which business objective were competitors seeking 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
Answer: C
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business
today?
8) All of the following describe the effects of globalization except:
A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) ability to find low-cost suppliers.
D) increases in transaction costs.
E) replication of business models in multiple countries.
Answer: D
Difficulty: 3: Challenging
AACSB: Analytical Thinking
2 1
1) 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
Answer: A
Difficulty: 3: Challenging
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business
today?
2) Journalist Thomas Friedman's description of the world as "flat" refers to the:
A) flattening of economic and cultural advantages of developed countries.
B) use of the Internet and technology for instantaneous communication.
C) reduction in travel times and the ubiquity of global exchange and travel.
D) growth of globalization.
E) increased use of global currencies.
Answer: A
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business
today?
2 1
,3) The six important business objectives of information system investment include all of
the following except:
A) competitive advantage.
B) employee morale.
C) improved decision making.
D) survival.
E) new products.
Answer: B
Difficulty: 2: Moderate
AACSB: Application of Knowledge
LO: 1-1: Why are information systems so essential for running and managing a business
today?
4) 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) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy
Answer: A
Difficulty: 2: Moderate
AACSB: Information Technology
2 1
,LO: 1-1: Why are information systems so essential for running and managing a business
today?
5) Walmart exemplifies the power of information systems coupled with excellent business
practices and supportive management to achieve which of the following?
A) New business models
B) Operational efficiency
C) Customer intimacy
D) Competitive advantage
E) Survival
Answer: B
Difficulty: 3: Challenging
AACSB: Analytical Thinking
LO: 1-1: Why are information systems so essential for running and managing a business
today?
6) Verizon's 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) competitive advantage.
D) supplier intimacy.
E) a new product.
Answer: B
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
2 1
, LO: 1-1: Why are information systems so essential for running and managing a business
today?
7) Which business objective were competitors seeking 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
Answer: C
Difficulty: 2: Moderate
AACSB: Analytical Thinking; Information Technology
LO: 1-1: Why are information systems so essential for running and managing a business
today?
8) All of the following describe the effects of globalization except:
A) significant decreases in operating costs.
B) reduction of labor costs through outsourcing.
C) ability to find low-cost suppliers.
D) increases in transaction costs.
E) replication of business models in multiple countries.
Answer: D
Difficulty: 3: Challenging
AACSB: Analytical Thinking
2 1
