Management Information Systems Managing
the Digital Firm 15th Edition – Test Bank A+
Sample Questions
Management Information Systems: Managing the Digital Firm,
15e (Laudon)
Chapter 1 Information Systems in Global Business Today
,1) Which of the following is not one of the six strategic business objectives of
information systems?
1. A) New products and services
2. B) Improved decision making
3. C) Competitive advantage
4. D) Improved employee morale
5. E) Survival
Answer: D
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
2) 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?
1. A) Compliance with regulations
2. B) Managerial decision making
3. C) Efficiency in creation of new products
4. D) Employee morale
5. E) Intimacy with its suppliers
Answer: B
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
3) 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
4. A) 1 only
5. B) 1 and 2
, 6. C) 2 and 3
7. D) 1 and 3
8. E) 1, 2, and 3
Answer: E
Difficulty: Challenging
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are
they 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?
1. A) Operational excellence
2. B) Improved decision making
3. C) Competitive advantage
4. D) Customer intimacy
5. E) Survival
Answer: E
Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
5) The Mandarin Oriental’s use of computer systems to keep track of guests’
preferences is an example of which of the following?
1. A) Improved flexibility
2. B) Improved decision making
3. C) Improved efficiency
4. D) Customer intimacy
5. E) Operational excellence
Answer: D
, Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
6) Competitors were seeking which of the following business objectives when
they rushed to provide ATMs after Citibank introduced the first ATMs in New
York?
1. A) Improved efficiency
2. B) Customer and supplier intimacy
3. C) Survival
4. D) Competitive advantage
5. E) Improved decision making
Answer: C
Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
7) Which of the following is the key business metric behind the technologies
implemented by Kroger, as discussed in the chapter-opening case?
1. A) Higher customer satisfaction levels
2. B) Survival
3. C) Improved employee morale
4. D) Improved decision making
5. E) Reduced cost of supplies
Answer: A
Difficulty: Moderate
AACSB: Analytical thinking
the Digital Firm 15th Edition – Test Bank A+
Sample Questions
Management Information Systems: Managing the Digital Firm,
15e (Laudon)
Chapter 1 Information Systems in Global Business Today
,1) Which of the following is not one of the six strategic business objectives of
information systems?
1. A) New products and services
2. B) Improved decision making
3. C) Competitive advantage
4. D) Improved employee morale
5. E) Survival
Answer: D
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
2) 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?
1. A) Compliance with regulations
2. B) Managerial decision making
3. C) Efficiency in creation of new products
4. D) Employee morale
5. E) Intimacy with its suppliers
Answer: B
Difficulty: Challenging
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
3) 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
4. A) 1 only
5. B) 1 and 2
, 6. C) 2 and 3
7. D) 1 and 3
8. E) 1, 2, and 3
Answer: E
Difficulty: Challenging
AACSB: Analytical thinking
LO: 1-1: How are information systems transforming business, and why are
they 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?
1. A) Operational excellence
2. B) Improved decision making
3. C) Competitive advantage
4. D) Customer intimacy
5. E) Survival
Answer: E
Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
5) The Mandarin Oriental’s use of computer systems to keep track of guests’
preferences is an example of which of the following?
1. A) Improved flexibility
2. B) Improved decision making
3. C) Improved efficiency
4. D) Customer intimacy
5. E) Operational excellence
Answer: D
, Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
6) Competitors were seeking which of the following business objectives when
they rushed to provide ATMs after Citibank introduced the first ATMs in New
York?
1. A) Improved efficiency
2. B) Customer and supplier intimacy
3. C) Survival
4. D) Competitive advantage
5. E) Improved decision making
Answer: C
Difficulty: Moderate
AACSB: Information technology
LO: 1-1: How are information systems transforming business, and why are
they so essential for running and managing a business today?
7) Which of the following is the key business metric behind the technologies
implemented by Kroger, as discussed in the chapter-opening case?
1. A) Higher customer satisfaction levels
2. B) Survival
3. C) Improved employee morale
4. D) Improved decision making
5. E) Reduced cost of supplies
Answer: A
Difficulty: Moderate
AACSB: Analytical thinking
