MIS Test Bank Global Business Today

Test Bank For
Management Information Systems, 14e, Global Edition (Laudon)

Chapter 1 Information Systems in Global Business Today

1) The six important business objectives of information technology are new products, services,
and business models; customer and supplier intimacy; survival; competitive advantage;
operational excellence; and
A) improved flexibility.
B) improved decision making.
C) improved business practices.
D) improved efficiency.
E) improved business value.
Answer: B
Page Ref: 45
Difficulty: Easy
AACSB: Information technology
CASE: Concept
LO: 1.1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

2) Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise
real-time information illustrates which business objective?
A) improved flexibility
B) improved decision making
C) competitive advantage
D) survival
E) customer and supplier intimacy
Answer: B
Page Ref: 47
Difficulty: Difficult
AACSB: Information technology
CASE: Synthesis
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 choices 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
Answer: D
Page Ref: 47
Difficulty: Difficult
AACSB: Analytical thinking
CASE: Application
LO: 1.1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

4) The use of information systems because of necessity describes the business objective of
A) operational excellence.
B) improved business practices.
C) competitive advantage.
D) improved flexibility.
E) survival.
Answer: E
Page Ref: 47
Difficulty: Moderate
AACSB: Information technology
CASE: Concept
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 hotel's use of computer systems to keep track of guests' preferences is
an example of
A) improved flexibility.
B) improved decision making.
C) improved efficiency.
D) customer and supplier intimacy.
E) operational excellence.
Answer: D
Page Ref: 46
Difficulty: Moderate
AACSB: Information technology
CASE: Application
LO: 1.1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

, 6) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
use of information systems to achieve which business objective?
A) improved efficiency
B) customer and supplier intimacy
C) survival
D) competitive advantage
E) improved decision making
Answer: C
Page Ref: 47
Difficulty: Moderate
AACSB: Information technology
CASE: Application
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 objectives best describes the business strategy behind the technologies
implemented by the San Francisco Giants, as discussed in the chapter case?
A) customer and supplier intimacy
B) survival
C) competitive advantage
D) customer support
E) operational excellence
Answer: C
Page Ref: 35-36
Difficulty: Moderate
AACSB: Analytical thinking
CASE: Application
LO: 1.1: How are information systems transforming business, and why are they so essential for
running and managing a business today?

8) An example of a business using information systems to create new products and services is
A) Wal-Mart's RetailLink system.
B) the Mandarin Oriental hotel's customer-preference tracking system.
C) Verizon's Web-based digital dashboard.
D) Apple Inc.'s iPod.
E) the San Francisco Giants play tracking system.
Answer: D
Page Ref: 46
Difficulty: Difficult
AACSB: Information technology
CASE: Application
LO: 1.1: How are information systems transforming business, and why are they so essential for
running and managing a business today?