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Business Information Technology > Quiz #1 > Flashcards

Quiz #1 Flashcards

1
Q

Information Systems help Business Processes by helping to…

A

capture process data

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2
Q

True or False: E-commerce is a broader concept than e-business

A

False

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3
Q

Starbuck’s Barista is a virtual order taker, which allows you to order drinks using your Smartphone rather than talking to a human being. This is what type of digital transformation?

A

Process Transformation

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4
Q

Uber introduced a pay-for ride service that uses cars owned by individuals, rather than by a cab company. This is what type of digital transformation?

A

Business Model Transformation

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5
Q

You took all house sales in Westchester for the last 3 months and determined that median home price is $1.5 million. This is an example of ________

A

Knowledge

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6
Q

True or False: Effectiveness focuses on doing the things that matter.

A

True

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7
Q

_______ is an example of effectiveness.

A

increasing customer satisfaction

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8
Q

Output of a Business Process can be a ______ or a _____

A

product; service

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9
Q

In a business process, resources can be ____ or ____

A

people; equipment

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10
Q

True or False: An organization’s business processes can be a competitive advantage or disadvantage.

A

True

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11
Q

_________ is an example of efficiency.

A

Automating order entry

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12
Q

In a Process Flow Diagram (PFD) decision stages are denoted by what type of symbol ?

A

diamond

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13
Q

True or False: A Process level issue is easier to troubleshoot than an instance level issue

A

True

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14
Q

_________ are materials, services, and information that flow through and are transformed as a result of Business process activities

A

inputs

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15
Q

True or False: Customers of a business process can be either internal or external to the organization

A

True

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16
Q

Which of the following is not a computer based information system?
Transaction Processing System
Electronic Commerce System
Functional Area Information System
Correct Answer
Product Flow system
Office Automation Systems

A

Product Flow Systems

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17
Q

A Business Process consists of which of the following three
component?
Input, Data, Output
Data, People, Outcome
Data, Processing, Result
Input, Resource, Output

A

Input, resource, output

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18
Q

True or False: Efficiency focuses on high quality products.

A

False

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19
Q

What is a Swim Lane Diagram in a PFD ?

A

describes who was doing what in a process

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20
Q

Your company provides NesPresso coffee pods for employees. Every month, a different set of flavors are provided. Is this a business process?

A

False; business process must add value to the product or company

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21
Q

True or False: An instance level issue has widespread effect on Business Process performance.

A

False

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22
Q

True or False: The two fundamental metrics that organizations employ in assessing their processes are efficiency and effectiveness.

A

True

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23
Q

_________ are people and equipment that perform business process activities

A

Resources

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24
Q

Business Process Evaluations occur in two levels: ________level and ________level

A

process; instance

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25
Q

_________ are the product or service created by the business process

A

outputs

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26
Q

Yes or No: Your company is moving Headquarters from LAX to Houston. A lot of logistics is involved. Is this a business process ?

A

False

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27
Q

Any type of Information System must contain these components (check all that apply).
IT infrastructure
ERP system
Business Intelligence (BI) System
Transaction Processing System (TPS)

A

IT infrastructure; Transaction Processing System

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28
Q

The internet makes customers _________ powerful; this is a _________ pressure.

A

more; market

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29
Q

The threat of new competitors will enter your market is _________ when entry is easy and _________ when there are significant barriers to entry.

A

high; low

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30
Q

The threat of new competitors will enter your market is high when entry is _________ and low when there are _________ barriers to entry

A

easy; significant

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31
Q

Buyer power is _________ when buyers have many choices from whom to buy and _________ when buyers have few choices

A

high; low

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32
Q

If there are many alternatives to an organization’s products or services, then the threat of substitutes is _________; if there are few alternatives, then the threat is ______.

A

high; low

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33
Q

The threat from rivalry is _________ when there is intense competition among many firms in an industry and _________ when competition is not as intense.

A

high; low

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34
Q

_________ industries experience the greatest threat from substitutes.

A

Information-based

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35
Q

You live in a small town with only one large retailer. This means there is low ______.

A

buyer power

36
Q

Your business manufactures motors. Based on prices and shipping, you only have one business as an option to buy bearings. This means there is high _________.

A

supplier power

37
Q

The music and newspaper industries were hurt primarily by _________.

A

threat of substitutes

38
Q

Car and technology companies are currently competing over who can offer the first self-driving car. This is an example of a(n) _________ strategy.

A

innovation

39
Q

True or False: If there are only two competitors, rivalry will be low.

A

False

40
Q

Supplier power is high when buyers have _________ choices from whom to buy and low when buyers have _________ choices.

A

few; many

41
Q

If there are _________ alternatives to an organization’s products or services, then the threat of substitutes is high; if there are _________ alternatives, then the threat is low.

A

many; few

42
Q

Which of the following reduces buyer power?

A

loyalty programs

43
Q

_________ are the costs, in money and time, imposed by a decision to buy elsewhere.

A

switching costs

44
Q

Online advertising has caused newspapers to _________ subscription prices and _________ advertising rates.

A

increase; decrease

45
Q

Today, if you want to operate a bank, you have to offer online banking - because most banks offer it. This is a(n) ________.

A

entry barrier

46
Q

Primary activities _________ add value directly to the firm’s products or services; support activities _________ add value directly to the firm’s products or services.

A

do; do not

47
Q

What are the two factors considered in Porter’s matrix of generic strategies?

A

target market size and type of advantage

48
Q

Porter’s generic strategies are:

A

Cost leadership, differentiation, cost focus, focus differentiation

49
Q

In Porter’s Generic Strategies model, a focus strategy involves:

A

Selling to a narrow customer segment

50
Q

True or False: Google offers its employees choice of a wide variety of foods, in-office Gym, shower, and even a place to take a quick nap. While these make employees happy, Google does not get any competitive advantage by providing these facilities

A

Falsel

51
Q

Walmart enjoys what type of strategic advantages ? Check all that apply
Differentiation Leadership
Cost Focus
Customer Focus
Operational Effectiveness
Innovation
Cost Leadership

A

customer focus, operational effectiveness, cost leadership

52
Q

Tesla’s electric car division enjoys what type of strategic advantages ? Check all that apply
Cost Focus
Cost Leadership
Differentiation Leadership
Differentiation Focus
Operational Effectiveness
Innovation

A

new products, operational effectiveness, innovation

53
Q

The NBA is using virtual reality to ________.

A

help remote fans feel the court-side experience

54
Q

The NBA’s use of virtual reality indicates they are using Porter’s __________ strategy for competitive advantage.

A

innovation

55
Q

_________ is an example of a support activity for most firms.

A

Product and technology development

56
Q

_________ is an example of a primary activity for most firms.

A

operations

57
Q

Which of the following has the strategy “I can sell at a lower price than you can”?
a) Cost leader

b) Customer oriented

c) Differentiation

d) Innovation

e) Operational effectiveness

A

cost leader

58
Q

Which of the following has the strategy “I can do the same thing more efficiently than you can”?
cost leader
customer oriented
operational effectiveness
differentiation
innovation

A

operational effectiveness

59
Q

You decide to integrate your supply chain to cut down production time. This is an example of a(n) _________ strategy

A

operational effectiveness

60
Q

True or False: When you create a competitive strategy, you must plan your own moves and anticipate and counter your competitors’ moves.

A

True

61
Q

Both Primary and Support activities create value for which customers are willing to pay.

A

False

62
Q

Ikea sales household items at an affordable cost. This Swedish company has 474 stores all over the world including 70 in North America and 273 in Europe. What generic strategy does Ikea use ?

A

Cost leadership

63
Q

El Torito is a California based Mexican restaurant chain owned by Xperience Restaurant Group. Their website uses the tagline:
“We know Mexican”
El Torito also has very attractive Happy hour prices for drinks and bar food.
What generic strategy does El Torito use ?

A

Differentiation Focus

64
Q

ERP stands for

A

Enterprise Resource Planning

65
Q

QuickBooks is a popular accounting tool that allows you to register sales, expenses, purchase orders, invoices, etc. It also allows you to produce Profit & Loss statement, Balance Sheet, Product-wise Sales report, and so on.
Using only the above description, categorize what type of Information System QuickBooks offers. (Check all that apply)
Transaction Processing System
Management Information System
Decision Support System
Executive Support System

A

Transaction processing system; management information system

66
Q

Reconciling Bank Accounts fall under which Functional Area of Information Systems (FAIS) ?

A

accounting

67
Q

Updating website falls under which Functional Area of Information Systems (FAIS) ?

A

marketing

68
Q

Installing anti-virus software for the organization falls under which Functional Area of Information Systems (FAIS) ?

A

MIS

69
Q

Purchasing raw material for production falls under which Functional Area of Information Systems (FAIS) ?

A

Operations

70
Q

Determining how much dividend should be offered to shareholders falls under which Functional Area of Information Systems (FAIS) ?

A

Financial

71
Q

Inventory Control falls under what type of Information System ? (check all that apply)
Transaction Processing System
Manufacturing and Operations System
Marketing System
Operational Level System
Management Level System
Management Information System
Decision Support System
Strategic Level System

A

Manufacturing and operations system; management level system; management information system

72
Q

Contract cost analysis falls under what type of Information System ? (check all that apply)
Transaction Processing System
Human Resources Information System
Marketing Information System
Operational Level System
Management Level System
Management Information System
Accounting Information System
Financial Information System
Decision Support System

A

Human resources information system; management level system; management information system

73
Q

Personnel Planning falls under what type of Information System ? (check all that apply)
Transaction Processing System
Human Resources Information System
Strategic Level System
Operational Level System
Management Level System
Management Information System
Accounting Information System
Financial Information System
Decision Support System
Executive Support System

A

Human resources information system; strategic level system; executive support system

74
Q

Organizing cybersecurity training for new employees falls under which Functional Area of Information Systems (FAIS) ?

A

Human resources

75
Q

Order processing is an example of ________________

A

Transaction Processing System

76
Q

Order processing falls under which Functional Area of IS ?

A

Sales and marketing

77
Q

Inventory Control is an example of ________________

A

Management Information System

78
Q

Inventory Control falls under which Functional Area of IS ?

A

Management and Production

79
Q

5 year sales trend forecast is handled by _____________

A

Executive Support System

80
Q

True or False: Management Information Systems are primarily used by Mid-level managers

A

True

81
Q

True or False: Decision Support Systems are primarily used by Mid-level managers

A

False

82
Q

True or False: Executive Support System is a Management Level System

A

False

83
Q

True or False: Annual Budgeting is process is part of Strategic Level System

A

False

84
Q

Quality Assurance falls under which Functional Area of Information Systems (FAIS) ?

A

Operations

85
Q

Vendor selection falls under which Functional Area of Information Systems (FAIS) ?

A

operations

86
Q

Procurement processes does NOT involve _________.

A

sales

87
Q

__________ is not involved in Fulfillment processes

A

purchasing

Business Information Technology (1 decks)

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