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Introduction to Information Systems

15th Edition OBrien Test Bank


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Student: ___________________________________________________________________________

1. Cross-functional enterprise systems cross the boundaries of traditional business functions in order to
reengineer and improve vital business processes all across the enterprise.
True False

2. Partner relationship management software concentrates on the efficiency of a firm's internal production,
distribution, and financial processes.
True False

3. Knowledge management applications focus on providing a firm's employees with tools that support group
collaboration, decision making, and human resources management.
True False

4. According to the Ogilvy and Mather case, companies should stick to the true blue American business
formula.
True False

5. According to the Ogilvy and Mather case, globalizing your firm's IT adds a whole new set of challenges to
the firm.
True False

6. EAI software enables users to model the business processes and interactions that should occur between
business applications.
True False

7. Enterprise application integration (EAI) software provides legacy systems that perform data conversion and
subordination, and application communication and messaging services.
True False
8. Distribution and manufacturing are considered front office systems; customer service and sales order entry
are back office systems.
True False

9. The integration of enterprise application clusters has little, if any, impact on customer call center
responsiveness.
True False

10. According to the General Motors case, some large firms report as much as 80% savings on certain projects
once EAI is in place.
True False

11. Transaction processing systems play a vital role in supporting the operations of an e-business enterprise.
True False

12. Online transaction processing (OLTP) is generally considered a post-event system because transactions are
entered nightly.
True False

13. Transaction processing systems update the corporate databases of an organization to reflect changes
resulting from day-to-day business transactions.
True False

14. Transaction reports can take the form of a transaction listing, such as a payroll register.
True False

15. Enterprise collaboration systems are cross-functional e-business systems that enhance communication,
coordination, and collaboration among the members of business teams and workgroups.
True False

16. Training in a virtual world is effective, but obstacles include both technology and culture.
True False
17. Training in a virtual world can both lower costs and increase efficiency.
True False

18. Collaborative work management tools help people accomplish or manage individual work activities.
True False

19. The term interactive marketing has been coined to describe a supply chain management process that is based
on using the Internet, intranets, and extranets to establish a two-way transaction between a business and its
customers.
True False

20. According to the Real World case, HR departments are increasingly being called upon to be a strategic
partner in the firm.
True False

21. According to the Real World case, the administrative costs for Novartis AG's 550 classes have been reduced
by about 50% through use of special HR software.
True False

22. Increasingly, sales people are using Web browsers and contact management software to connect to their
company's marketing websites.
True False

23. Many companies view sales force tracking as a way to gain a strategic advantage in sales productivity and
marketing responsiveness.
True False

24. Firms such as transportation companies, wholesalers, retailers, financial institutions, and service companies
must use production/operations information systems to plan and control their operations.
True False
25. The overall goal of computer-integrated manufacturing is to segregate the production and support
processes.
True False

26. Computer aided manufacturing systems are those that automate the production process, such as employing
humanlike robots to complete the step of painting the product being manufactured.
True False

27. A process control computer system uses special sensing devices that measure physical phenomena, such as
temperature or pressure changes.
True False

28. Human resource information systems are designed to support most common human resource functions, such
as recruitment, selection, hiring, job placement, performance appraisals, and training over corporate intranets.
True False

29. Human resource management applications offered over corporate intranets can enable managers and other
employees to perform HRM tasks with little intervention by the HRM department.
True False

30. Accounting information systems are among the newest, yet are the most widely used information systems in
business.
True False

31. Operational accounting systems emphasize legal and historical record-keeping and the production of
accurate financial statements.
True False

32. E-business _______________.


A. is the same as e-commerce
B. is narrower in scope than e-commerce
C. uses the Internet and information technology to support e-commerce
D. is just techno-speak and hype; it is no different than traditional business
33. E-commerce _______________.
A. is the same as e-business
B. is broader in scope than e-business
C. involves the buying, selling, marketing, and servicing of products, services, and information over the Internet
and other networks
D. All of the choices are correct

34. Moving from mainframe-based legacy systems to integrated, cross-functional client/server applications
typically involves installing _______________ software.
A. enterprise resource planning
B. supply chain management
C. customer relationship management
D. All of the choices are correct.

35. Cross-functional enterprise systems _______________.


A. are no longer popular among large organizations
B. reengineer and improve vital business processes all across the enterprise
C. involve the buying, selling, marketing, and servicing of products, services, and information over the Internet
and other networks
D. None of the choices are correct

36. _______________ is defined as the use of the Internet and other networks and information technologies to
support electronic commerce, enterprise communication and collaboration, and Web-enabled business
processes, both within a networked enterprise and with customers and business partners.
A. Electronic business
B. Enterprise collaboration
C. Cross-functional system management
D. Supply chain management

37. According to the Real World Case, customer relationship management software is easier to implement when
a company is _______________.
A. large
B. old
C. profitable
D. young
38. Which of the following applications focuses on the efficiency of a firm's internal production, distribution,
and financial processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

39. Which of the following applications focuses on acquiring and retaining profitable customers via marketing,
sales, and service processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

40. Which of the following applications focuses on providing a firm's employees with tools that support group
collaboration and decision support?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

41. Which of the following applications focuses on developing the most efficient and effective sourcing and
procurement processes with suppliers for the products and services needed by a business?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

42. A cross-functional information system for a manufacturing company supports all the following new product
development processes for R&D/Engineering except:
A. Product Testing.
B. Production Start.
C. Market Research.
D. Product Design.
43. A cross-functional information system for a manufacturing company supports all the following new product
development processes for Marketing except:
A. Component Design.
B. Customer Feedback.
C. Market Research.
D. Market Test.

44. A cross-functional information system for a manufacturing company supports all the following new product
development processes for Manufacturing except:
A. Product Design.
B. Production Start.
C. Equipment Design.
D. Product Release.

45. As described in the text, partner relationship management focuses on:


A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

46. As described in the text, supply chain management focuses on:


A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

47. As described in the text, knowledge management focuses on:


A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.
48. As described in the text, customer relationship management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via marketing, sales, and service processes.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

49. As described in the text, enterprise resource planning focuses on:


A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Efficiency of a firm's internal production, distribution, and financial processes.

50. According to the Ogilvy and Mather case, important elements in a global outlook include all the following
except:
A. Culture
B. Language
C. Dietary differences
D. Available bandwidth

51. _______________ are events that occur as part of doing business, such as sales, purchases, deposits,
withdrawals, refunds, and payments.
A. Items
B. Transactions
C. Occurrences
D. Processes

52. The first step of the transaction processing cycle is _______________.


A. inquiry processing
B. document generation
C. transaction processing
D. data entry
53. _______________ systems are cross-functional information systems that enhance communication and
coordination among the members of business teams and workgroups.
A. Enterprise coordination
B. Enterprise integration
C. Enterprise collaboration
D. Transaction processing

54. The capabilities and potential of _______________ are driving the demand for better enterprise
collaboration tools in business.
A. the Internet
B. intranets
C. extranets
D. All of the choices are correct.

55. Which of the following is considered a collaborative work management tool?


A. Calendaring and scheduling
B. Instant messaging
C. Voice conferencing
D. Paging

56. Electronic mail, voice mail, faxing, Web publishing, bulletin board systems, and paging are considered
_______________ tools.
A. electronic communication
B. collaborative work management
C. electronic conferencing
D. All of the choices are correct.

57. Collaborative work management tools include all of the following except:
A. Calendaring and scheduling tools
B. Task and project management
C. Faxing, paging, and bulletin board systems
D. Knowledge management

58. A(n) _______________ business system is a type of information system that supports the business functions
of accounting, finance, marketing, operations management, and human resource management.
A. functional
B. inter-enterprise
C. collaboration
D. enterprise resource
59. Marketing information systems can help marketing managers with:
A. Customer relationship management
B. Product planning and pricing
C. Targeted marketing strategies
D. All of the choices are correct.

60. According to the Real Life Case, utilization of Learning Suite by Saba Software, Inc. has reduced
administrative work for employee training by _______________.
A. 10 percent
B. 15 percent
C. 50 percent
D. 82 percent

61. According to the Real Life Case, organizations are increasingly viewing _______________ as assets, to be
acquired, cultivated, and deployed strategically—not unlike product inventory or IT systems.
A. employees
B. products
C. customers
D. All of the choices are correct.

62. Which of the following is considered a production/operations business function?


A. Personnel requirements forecasting
B. Process control
C. Investment management
D. Sales force automation

63. Which of the following is supported by the marketing business function?


A. Compensation analysis
B. Process control
C. Credit management
D. Sales force automation

64. All of the following are supported by the accounting business function except:
A. General ledger
B. Inventory control
C. Capital budgeting
D. Payroll
65. Which of the following is considered a finance business function?
A. General ledger
B. Inventory control
C. Capital budgeting
D. Payroll

66. Which of the following is considered a human resource management function?


A. Compensation analysis
B. Customer relationship management
C. Investment management
D. Payroll

67. Providing website visitors with chat rooms, Web forms and questionnaires, and e-mail correspondence
opportunities enables companies to use _______________ to encourage customers to become involved in
product development, delivery, and service issues.
A. order processing
B. interactive marketing
C. sales force automation
D. None of the choices are correct.

68. Targeted marketing includes all of the following components except:


A. Online behavior
B. Content
C. Credit
D. Demographics/psychographics

69. Customizing Web advertising messages and promotion methods to appeal to people in specific communities
is part of which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

70. Which targeted marketing component includes advertising such as electronic billboards or banners placed
on selected Web sites?
A. Context.
B. Content.
C. Community.
D. Online behavior.
71. Advertising targeted only at people who are already looking for information about a subject that is related to
a company's products is an example of which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

72. Advertising strategies based on a variety of tracking techniques, such as Web "cookies" is an example of
which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

73. According to the textbook case, Baker Tanks was drawn to a sales force automation system for all of the
following reasons except:
A. Web-based functionality
B. Quick implementation time
C. Low capital investment
D. Short learning curve

74. _______________ information systems support the production/operations function that includes all
activities concerned with the planning and control of the processes producing goods and services.
A. Finance
B. Management
C. Marketing
D. Manufacturing

75. Computer integrated manufacturing is an overall concept that stresses using computer-based systems in
manufacturing to do all the following except:
A. Simplify production processes
B. Automate production processes
C. Integrate all production and support processes
D. Integrate collaboration and communication throughout the organization
76. Computer-integrated manufacturing systems support all of the following concepts except:
A. Flexible manufacturing systems
B. Inquiry processing
C. Agile manufacturing
D. Total quality management

77. When a manufacturer automates production of a product by installing computer systems to monitor
processes and robots to do some of the assembly tasks, it is an example of ____________________.
A. computer integrated manufacturing
B. computer-aided manufacturing
C. process control
D. task control

78. Which of the following is considered a human resource business function?


A. Compensation analysis
B. Payroll
C. Customer relationship management
D. Sales force automation

79. Which of the six essential accounting business systems mentioned in the text reflects changes in inventory
and provides shipping and reorder information?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing

80. Which of the six essential accounting business systems mentioned in the text records purchases from,
amounts owed to, and payments to suppliers?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing

81. Computer-based _______________ systems support business managers and professionals in decisions
concerning the financing of a business, and the allocation and control of financial resources within a business.
A. accounting information
B. financial management
C. marketing information
D. management information
82. Instead of focusing on the information processing requirements of business functions, enterprise software
focuses on supporting integrated clusters of business _______________ involved in the operations of a
business.
________________________________________

83. An enterprise _______________ architecture illustrates the inter-relationships of the major cross-functional
enterprise applications that many companies have, or are installing, today.
________________________________________

84. EAI software can integrate the front-office and ________________ applications of a business so they work
together in a seamless, integrated way.
________________________________________

85. EAI software can integrate _______________ and ________________ applications so they work together in
a seamless, integrated way.
________________________________________

86. Transaction processing systems (TPS) are _______________ information systems that process data
resulting from the occurrence of business transactions.
________________________________________

87. Syntellect Interactive Services developed _______________ for cable pay-per-view systems.
________________________________________

88. Transaction processing systems process data in two basic ways: batch processing and _______________
processing.
________________________________________

89. Many online systems depend on the capabilities of _______________ tolerant computer systems that can
continue to operate if parts of the system fail.
________________________________________
90. Electronic conferencing options include electronic meeting systems and other group support systems where
team members can meet at the same time and place in a _______________ room setting.
________________________________________

91. The goal of interactive marketing is to enable a company to profitably use networks to attract and
___________ customers who will become partners with the business.
________________________________________

92. Advertising and promotion efforts can be tailored to each visit to a site by an individual. This strategy is
based on a variety of tracking techniques, such as Web "__________" files recorded on the visitor's disk drive
from previous visits.
________________________________________

93. According to the text case, each sales person working for Baker Tanks has a PDA equipped with a wireless
_______________ that allows him/her to connect to Salesforce.com for customer contact information.
________________________________________

94. The production/operations function is concerned with the management of the operational processes and
__________ of all business firms.
________________________________________

95. _______________ is an overall concept that stresses that the objectives of computer-based systems in
manufacturing must be to simplify, automate, and integrate all production and support processes.
________________________________________

96. Manufacturing information systems help companies plan the types of material needed in the production
process. This is called ____________________ planning (MRP).
________________________________________

97. Manufacturing execution systems monitor, track, and control the five essential components in a production
process: materials, equipment, _______________, instructions and specifications, and production facilities.
________________________________________
98. _______________ control is the use of computers to control an ongoing physical process.
________________________________________

99. Machine control is the use of computers to control the actions of machines. This is also popularly known as
_______________ control.
________________________________________

100. _______________ information systems are designed to support planning to meet the personnel needs of
the business, development of employees to their full potential, and control all personnel policies and programs.
________________________________________

101. Human resource information systems support the strategic, tactical, and _______________ use of the
human resources of an organization.
________________________________________

102. Management accounting systems focus on the planning and __________ of business operations.
________________________________________

103. The __________ budgeting process involves evaluating the profitability and financial impact of proposed
capital expenditures.
________________________________________

104. _______________ planning software can help determine the financing needs of a business and analyze
alternative methods of financing.
________________________________________
c7 Key

1. (p. 260) Cross-functional enterprise systems cross the boundaries of traditional business functions in order to
reengineer and improve vital business processes all across the enterprise.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #1

2. (p. 263) Partner relationship management software concentrates on the efficiency of a firm's internal production,
distribution, and financial processes.
FALSE

Enterprise resource planning software concentrates on the efficiency of a firm's internal production, distribution,
and financial processes.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #2

3. (p. 263) Knowledge management applications focus on providing a firm's employees with tools that support
group collaboration, decision making, and human resources management.
FALSE

Knowledge management applications provide a firm's employees with tools that support group collaboration
and decision making, but not human resources management.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #3
4. (p. 264) According to the Ogilvy and Mather case, companies should stick to the true blue American business
formula.
FALSE

Globalization is becoming critical, with challenges such as language, culture, time zones, and physical
infrastructure.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #4

5. (p. 264) According to the Ogilvy and Mather case, globalizing your firm's IT adds a whole new set of challenges
to the firm.
TRUE

Globalization is becoming critical, with challenges such as language, culture, time zones, and physical
infrastructure.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #5

6. (p. 282) EAI software enables users to model the business processes and interactions that should occur between
business applications.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #6

7. (p. 282) Enterprise application integration (EAI) software provides legacy systems that perform data conversion
and subordination, and application communication and messaging services.
FALSE

Enterprise application integration (EAI) software provides middleware that performs data conversion and
subordination, and application communication and messaging services.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #7
8. (p. 282) Distribution and manufacturing are considered front office systems; customer service and sales order
entry are back office systems.
FALSE

Distribution and manufacturing are back office systems; customer service and sales order entry are front office
system.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #8

9. (p. 282) The integration of enterprise application clusters has little, if any, impact on customer call center
responsiveness.
FALSE

The integration of enterprise application clusters has been shown to dramatically improve customer call center
responsiveness and effectiveness.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #9

10. (p. 283) According to the General Motors case, some large firms report as much as 80% savings on certain
projects once EAI is in place.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #10

11. (p. 284) Transaction processing systems play a vital role in supporting the operations of an e-business
enterprise.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #11
12. (p. 284) Online transaction processing (OLTP) is generally considered a post-event system because
transactions are entered nightly.
FALSE

Online transaction processing is considered a real-time system because it captures and processes transactions
immediately.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #12

13. (p. 284-285) Transaction processing systems update the corporate databases of an organization to reflect changes
resulting from day-to-day business transactions.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #13

14. (p. 285) Transaction reports can take the form of a transaction listing, such as a payroll register.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #14

15. (p. 286) Enterprise collaboration systems are cross-functional e-business systems that enhance communication,
coordination, and collaboration among the members of business teams and workgroups.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #15
16. (p. 288) Training in a virtual world is effective, but obstacles include both technology and culture.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #16

17. (p. 288) Training in a virtual world can both lower costs and increase efficiency.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #17

18. (p. 288) Collaborative work management tools help people accomplish or manage individual work activities.
FALSE

Collaborative work management tools help people accomplish or manage group work activities.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #18

19. (p. 289) The term interactive marketing has been coined to describe a supply chain management process that is
based on using the Internet, intranets, and extranets to establish a two-way transaction between a business and
its customers.
FALSE

The term interactive marketing has been coined to describe a customer-focused management process.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #19
20. (p. 290) According to the Real World case, HR departments are increasingly being called upon to be a strategic
partner in the firm.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #20

21. (p. 291) According to the Real World case, the administrative costs for Novartis AG's 550 classes have been
reduced by about 50% through use of special HR software.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #21

22. (p. 294) Increasingly, sales people are using Web browsers and contact management software to connect to
their company's marketing websites.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #22

23. (p. 294) Many companies view sales force tracking as a way to gain a strategic advantage in sales productivity
and marketing responsiveness.
FALSE

Many companies view sales force automation as a way to gain a strategic advantage.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #23
24. (p. 295) Firms such as transportation companies, wholesalers, retailers, financial institutions, and service
companies must use production/operations information systems to plan and control their operations.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #24

25. (p. 296) The overall goal of computer-integrated manufacturing is to segregate the production and support
processes.
FALSE

The overall goal of computer-integrated manufacturing is to integrate the production and support processes.

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 2
OBrien - Chapter 07 #25

26. (p. 297) Computer aided manufacturing systems are those that automate the production process, such as
employing humanlike robots to complete the step of painting the product being manufactured.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #26

27. (p. 297) A process control computer system uses special sensing devices that measure physical phenomena,
such as temperature or pressure changes.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #27
28. (p. 297) Human resource information systems are designed to support most common human resource
functions, such as recruitment, selection, hiring, job placement, performance appraisals, and training over
corporate intranets.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #28

29. (p. 298) Human resource management applications offered over corporate intranets can enable managers and
other employees to perform HRM tasks with little intervention by the HRM department.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #29

30. (p. 300) Accounting information systems are among the newest, yet are the most widely used information
systems in business.
FALSE

Accounting information systems are among the oldest systems.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #30

31. (p. 300) Operational accounting systems emphasize legal and historical record-keeping and the production of
accurate financial statements.
TRUE

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #31
32. (p. 260) E-business _______________.
A. is the same as e-commerce
B. is narrower in scope than e-commerce
C. uses the Internet and information technology to support e-commerce
D. is just techno-speak and hype; it is no different than traditional business

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #32

33. (p. 260) E-commerce _______________.


A. is the same as e-business
B. is broader in scope than e-business
C. involves the buying, selling, marketing, and servicing of products, services, and information over the Internet
and other networks
D. All of the choices are correct

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #33

34. (p. 260) Moving from mainframe-based legacy systems to integrated, cross-functional client/server
applications typically involves installing _______________ software.
A. enterprise resource planning
B. supply chain management
C. customer relationship management
D. All of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #34
35. (p. 260) Cross-functional enterprise systems _______________.
A. are no longer popular among large organizations
B. reengineer and improve vital business processes all across the enterprise
C. involve the buying, selling, marketing, and servicing of products, services, and information over the Internet
and other networks
D. None of the choices are correct

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #35

36. (p. 260) _______________ is defined as the use of the Internet and other networks and information
technologies to support electronic commerce, enterprise communication and collaboration, and Web-enabled
business processes, both within a networked enterprise and with customers and business partners.
A. Electronic business
B. Enterprise collaboration
C. Cross-functional system management
D. Supply chain management

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #36

37. (p. 261) According to the Real World Case, customer relationship management software is easier to implement
when a company is _______________.
A. large
B. old
C. profitable
D. young

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #37
38. (p. 263) Which of the following applications focuses on the efficiency of a firm's internal production,
distribution, and financial processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #38

39. (p. 263) Which of the following applications focuses on acquiring and retaining profitable customers via
marketing, sales, and service processes?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #39

40. (p. 263) Which of the following applications focuses on providing a firm's employees with tools that support
group collaboration and decision support?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #40
41. (p. 263) Which of the following applications focuses on developing the most efficient and effective sourcing
and procurement processes with suppliers for the products and services needed by a business?
A. Customer relationship management
B. Enterprise resource planning
C. Knowledge management
D. Supply chain management

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #41

42. (p. 263) A cross-functional information system for a manufacturing company supports all the following new
product development processes for R&D/Engineering except:
A. Product Testing.
B. Production Start.
C. Market Research.
D. Product Design.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #42

43. (p. 263) A cross-functional information system for a manufacturing company supports all the following new
product development processes for Marketing except:
A. Component Design.
B. Customer Feedback.
C. Market Research.
D. Market Test.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #43
44. (p. 263) A cross-functional information system for a manufacturing company supports all the following new
product development processes for Manufacturing except:
A. Product Design.
B. Production Start.
C. Equipment Design.
D. Product Release.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #44

45. (p. 263) As described in the text, partner relationship management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #45

46. (p. 263) As described in the text, supply chain management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #46
47. (p. 263) As described in the text, knowledge management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #47

48. (p. 263) As described in the text, customer relationship management focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via marketing, sales, and service processes.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Providing a firm's employees with tools that support group collaboration and decision support.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #48

49. (p. 263) As described in the text, enterprise resource planning focuses on:
A. Developing the most efficient and effective sourcing and procurement processes.
B. Acquiring and retaining profitable customers via delivery of timely products.
C. Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and
services.
D. Efficiency of a firm's internal production, distribution, and financial processes.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #49
50. (p. 264) According to the Ogilvy and Mather case, important elements in a global outlook include all the
following except:
A. Culture
B. Language
C. Dietary differences
D. Available bandwidth

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #50

51. (p. 283) _______________ are events that occur as part of doing business, such as sales, purchases, deposits,
withdrawals, refunds, and payments.
A. Items
B. Transactions
C. Occurrences
D. Processes

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #51

52. (p. 285) The first step of the transaction processing cycle is _______________.
A. inquiry processing
B. document generation
C. transaction processing
D. data entry

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #52
53. (p. 286) _______________ systems are cross-functional information systems that enhance communication and
coordination among the members of business teams and workgroups.
A. Enterprise coordination
B. Enterprise integration
C. Enterprise collaboration
D. Transaction processing

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #53

54. (p. 286) The capabilities and potential of _______________ are driving the demand for better enterprise
collaboration tools in business.
A. the Internet
B. intranets
C. extranets
D. All of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #54

55. (p. 287) Which of the following is considered a collaborative work management tool?
A. Calendaring and scheduling
B. Instant messaging
C. Voice conferencing
D. Paging

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #55
56. (p. 287) Electronic mail, voice mail, faxing, Web publishing, bulletin board systems, and paging are considered
_______________ tools.
A. electronic communication
B. collaborative work management
C. electronic conferencing
D. All of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #56

57. (p. 287) Collaborative work management tools include all of the following except:
A. Calendaring and scheduling tools
B. Task and project management
C. Faxing, paging, and bulletin board systems
D. Knowledge management

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #57

58. (p. 289) A(n) _______________ business system is a type of information system that supports the business
functions of accounting, finance, marketing, operations management, and human resource management.
A. functional
B. inter-enterprise
C. collaboration
D. enterprise resource

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #58

59. (p. 289) Marketing information systems can help marketing managers with:
A. Customer relationship management
B. Product planning and pricing
C. Targeted marketing strategies
D. All of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #59
60. (p. 291) According to the Real Life Case, utilization of Learning Suite by Saba Software, Inc. has reduced
administrative work for employee training by _______________.
A. 10 percent
B. 15 percent
C. 50 percent
D. 82 percent

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #60

61. (p. 291) According to the Real Life Case, organizations are increasingly viewing _______________ as assets,
to be acquired, cultivated, and deployed strategically—not unlike product inventory or IT systems.
A. employees
B. products
C. customers
D. All of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #61

62. (p. 292) Which of the following is considered a production/operations business function?
A. Personnel requirements forecasting
B. Process control
C. Investment management
D. Sales force automation

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #62

63. (p. 292) Which of the following is supported by the marketing business function?
A. Compensation analysis
B. Process control
C. Credit management
D. Sales force automation

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #63
64. (p. 292) All of the following are supported by the accounting business function except:
A. General ledger
B. Inventory control
C. Capital budgeting
D. Payroll

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #64

65. (p. 292) Which of the following is considered a finance business function?
A. General ledger
B. Inventory control
C. Capital budgeting
D. Payroll

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #65

66. (p. 292) Which of the following is considered a human resource management function?
A. Compensation analysis
B. Customer relationship management
C. Investment management
D. Payroll

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #66

67. (p. 292) Providing website visitors with chat rooms, Web forms and questionnaires, and e-mail correspondence
opportunities enables companies to use _______________ to encourage customers to become involved in
product development, delivery, and service issues.
A. order processing
B. interactive marketing
C. sales force automation
D. None of the choices are correct.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #67
68. (p. 293) Targeted marketing includes all of the following components except:
A. Online behavior
B. Content
C. Credit
D. Demographics/psychographics

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #68

69. (p. 293) Customizing Web advertising messages and promotion methods to appeal to people in specific
communities is part of which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #69

70. (p. 293) Which targeted marketing component includes advertising such as electronic billboards or banners
placed on selected Web sites?
A. Context.
B. Content.
C. Community.
D. Online behavior.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #70
71. (p. 293) Advertising targeted only at people who are already looking for information about a subject that is
related to a company's products is an example of which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #71

72. (p. 293) Advertising strategies based on a variety of tracking techniques, such as Web "cookies" is an example
of which targeted marketing component?
A. Context.
B. Content.
C. Community.
D. Online behavior.

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
OBrien - Chapter 07 #72

73. (p. 295) According to the textbook case, Baker Tanks was drawn to a sales force automation system for all of
the following reasons except:
A. Web-based functionality
B. Quick implementation time
C. Low capital investment
D. Short learning curve

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #73
74. (p. 295) _______________ information systems support the production/operations function that includes all
activities concerned with the planning and control of the processes producing goods and services.
A. Finance
B. Management
C. Marketing
D. Manufacturing

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #74

75. (p. 296) Computer integrated manufacturing is an overall concept that stresses using computer-based systems
in manufacturing to do all the following except:
A. Simplify production processes
B. Automate production processes
C. Integrate all production and support processes
D. Integrate collaboration and communication throughout the organization

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #75

76. (p. 296) Computer-integrated manufacturing systems support all of the following concepts except:
A. Flexible manufacturing systems
B. Inquiry processing
C. Agile manufacturing
D. Total quality management

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #76
77. (p. 297) When a manufacturer automates production of a product by installing computer systems to monitor
processes and robots to do some of the assembly tasks, it is an example of ____________________.
A. computer integrated manufacturing
B. computer-aided manufacturing
C. process control
D. task control

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #77

78. (p. 297) Which of the following is considered a human resource business function?
A. Compensation analysis
B. Payroll
C. Customer relationship management
D. Sales force automation

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #78

79. (p. 301) Which of the six essential accounting business systems mentioned in the text reflects changes in
inventory and provides shipping and reorder information?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing

AACSB: Technology
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
OBrien - Chapter 07 #79
80. (p. 301) Which of the six essential accounting business systems mentioned in the text records purchases from,
amounts owed to, and payments to suppliers?
A. Accounts payable
B. Accounts receivable
C. Inventory control
D. Order processing

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #80

81. (p. 302) Computer-based _______________ systems support business managers and professionals in decisions
concerning the financing of a business, and the allocation and control of financial resources within a business.
A. accounting information
B. financial management
C. marketing information
D. management information

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #81

82. (p. 260) Instead of focusing on the information processing requirements of business functions, enterprise
software focuses on supporting integrated clusters of business _______________ involved in the operations of a
business.
processes

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #82

83. (p. 260) An enterprise _______________ architecture illustrates the inter-relationships of the major
cross-functional enterprise applications that many companies have, or are installing, today.
application

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #83
84. (p. 282) EAI software can integrate the front-office and ________________ applications of a business so they
work together in a seamless, integrated way.
back-office

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #84

85. (p. 282) EAI software can integrate _______________ and ________________ applications so they work
together in a seamless, integrated way.
front office; back office

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #85

86. (p. 283) Transaction processing systems (TPS) are _______________ information systems that process data
resulting from the occurrence of business transactions.
cross-functional

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #86

87. (p. 284) Syntellect Interactive Services developed _______________ for cable pay-per-view systems.
online transaction processing system

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 2
OBrien - Chapter 07 #87

88. (p. 285) Transaction processing systems process data in two basic ways: batch processing and
_______________ processing.
real-time or online

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #88
89. (p. 285) Many online systems depend on the capabilities of _______________ tolerant computer systems that
can continue to operate if parts of the system fail.
fault

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #89

90. (p. 287) Electronic conferencing options include electronic meeting systems and other group support systems
where team members can meet at the same time and place in a _______________ room setting.
decision

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #90

91. (p. 288-292) The goal of interactive marketing is to enable a company to profitably use networks to attract and
___________ customers who will become partners with the business.
keep or retain

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #91

92. (p. 293) Advertising and promotion efforts can be tailored to each visit to a site by an individual. This strategy
is based on a variety of tracking techniques, such as Web "__________" files recorded on the visitor's disk drive
from previous visits.
cookie

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #92
93. (p. 295) According to the text case, each sales person working for Baker Tanks has a PDA equipped with a
wireless _______________ that allows him/her to connect to Salesforce.com for customer contact information.
modem

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #93

94. (p. 295) The production/operations function is concerned with the management of the operational processes
and __________ of all business firms.
systems

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #94

95. (p. 296) _______________ is an overall concept that stresses that the objectives of computer-based systems in
manufacturing must be to simplify, automate, and integrate all production and support processes.
Computer-integrated manufacturing (CIM)

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #95

96. (p. 296-297) Manufacturing information systems help companies plan the types of material needed in the
production process. This is called ____________________ planning (MRP).
material requirements

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #96
97. (p. 297) Manufacturing execution systems monitor, track, and control the five essential components in a
production process: materials, equipment, _______________, instructions and specifications, and production
facilities.
personnel

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 2
OBrien - Chapter 07 #97

98. (p. 297) _______________ control is the use of computers to control an ongoing physical process.
Process

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #98

99. (p. 297) Machine control is the use of computers to control the actions of machines. This is also popularly
known as _______________ control.
numerical

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #99

100. (p. 297) _______________ information systems are designed to support planning to meet the personnel needs
of the business, development of employees to their full potential, and control all personnel policies and
programs.
Human resource

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
OBrien - Chapter 07 #100
101. (p. 298) Human resource information systems support the strategic, tactical, and _______________ use of the
human resources of an organization.
operational

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #101

102. (p. 300) Management accounting systems focus on the planning and __________ of business operations.
control

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #102

103. (p. 302) The __________ budgeting process involves evaluating the profitability and financial impact of
proposed capital expenditures.
capital

AACSB: Technology
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
OBrien - Chapter 07 #103

104. (p. 302) _______________ planning software can help determine the financing needs of a business and
analyze alternative methods of financing.
Financial

AACSB: Technology
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
OBrien - Chapter 07 #104
c7 Summary

Category # of Questions
AACSB: Technology 104
Bloom: Knowledge 104
Difficulty: Easy 27
Difficulty: Hard 15
Difficulty: Medium 62
Learning Objective: 1 67
Learning Objective: 2 37
OBrien - Chapter 07 104

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