Question 1

According to agency theory, the firm is viewed as a(n)

Accepted Answer

A)   unified, profit-maximizing entity.
B)   task force organization that must respond to rapidly changing environments.
C)   entrepreneurial endeavor.
D)   "nexus of contracts" among self-interested individuals.
E)   entrepreneurial structure.

Question 2

An example of synergy in business is

Accepted Answer

A)   Amazon's use of the Internet to sell books.
B)   Bank of America acquiring Countrywide Financial to reach a large pool of new customers.
C)   Blockbuster combining traditional video rental with online video rental.
D)   Walmart's order entry and inventory management system to coordinate with suppliers.
E)   Nike's use of technology to improve its product offerings.

Question 3

The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ________ activities.

Accepted Answer

A)   primary
B)   auxiliary
C)   secondary
D)   service
E)   support

Question 4

Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy.

Accepted Answer

A)   machine
B)   professional
C)   divisionalized
D)   multidivisional
E)   ad hoc

Question 5

You are consulting with the owner of Better Bodies, a national chain of gyms. What strategies might Better Bodies use in applying information services to achieve a competitive advantage?

Accepted Answer

Better Bodies could use computers to mon...

Question 6

The value chain model classifies all company activities as primary activities.

Accepted Answer

A) True 
 B)False

Question 7

An efficient customer response system directly links consumer behavior to distribution and production and supply chains.

Accepted Answer

A) True 
 B)False

Question 8

A(n)  ________ is an activity at which a firm excels as a world-class leader.

Accepted Answer

A)   expertise area
B)   competitive advantage
C)   growth driver
D)   efficiency
E)   core competency

Question 9

What are the most successful solutions or methods for achieving a business objective?

Accepted Answer

A)   value activities
B)   best processes
C)   core competencies
D)   best practices
E)   benchmarks

Question 10

How do information systems enhance core competencies?

Accepted Answer

A)   by providing better reporting facilities
B)   by creating educational opportunities for management
C)   by allowing operational employees to interact with management
D)   by encouraging the sharing of knowledge across business units
E)   by fostering synergies among departments D

Question 11

The interaction between information systems and organizations is influenced

Accepted Answer

A)   primarily by the decision making of middle and senior managers.
B)   by the development of new information technologies.
C)   by many factors, including structure, politics, culture, and environment.
D)   by two main microeconomic forces: capital and labor.
E)   by management decisions. B

Question 12

Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of

Accepted Answer

A)   entrepreneurial structures.
B)   divisionalized bureaucracies.
C)   professional bureaucracies.
D)   adhocracies.
E)   machine bureaucracies.

Question 13

Information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor from the point of view of economics.

Accepted Answer

A) True 
 B)False

Question 14

The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Accepted Answer

A) True 
 B)False

Question 15

The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.

Accepted Answer

A) True 
 B)False

Question 16

The text describes Michael Porter's view of the Internet as somewhat negative. What negative influences does Porter see?
 Describe several positive influences the Internet has on business. Do these outweigh the negative influences?

Accepted Answer

Answers will vary. An example of a possi...

Question 17

'Synergies' occur when the output of some units in a firm can be used as inputs to other units, lowering cost and generating profits.

Accepted Answer

A) True 
 B)False  True

Question 18

The value chain model

Accepted Answer

A)   categorizes five related advantages for adding value to a firm's products or services.
B)   sees the supply chain as the primary activity for adding value.
C)   categorizes four basic strategies a firm can use to enhance its value chain.
D)   highlights specific activities in the business where competitive strategies can best be applied.
E)   enables more effective product differentiation.

Question 19

Routines are also called standard operating procedures.

Accepted Answer

A) True 
 B)False

Question 20

The Internet raises the bargaining power of customers by

Accepted Answer

A)   creating new opportunities for building loyal customer bases.
B)   making more products available.
C)   making information available to everyone.
D)   lowering transaction costs.
E)   enabling the development of new services.

Exam 3: Information Systems, Organizations, and Strategy

According to agency theory, the firm is viewed as a(n)

Correct AnswerverifiedShow Answer

An example of synergy in business is

Correct AnswerverifiedShow Answer

The parts of an organization's infrastructure, human resources, technology, and procurement that make the delivery of the firm's products or services possible are known as ________ activities.

Correct AnswerverifiedShow Answer

Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy.

Correct AnswerverifiedShow Answer

You are consulting with the owner of Better Bodies, a national chain of gyms. What strategies might Better Bodies use in applying information services to achieve a competitive advantage?

Correct AnswerverifiedBetter Bodies could use computers to mon...View AnswerShow Answer

The value chain model classifies all company activities as primary activities.

Correct AnswerverifiedShow Answer

An efficient customer response system directly links consumer behavior to distribution and production and supply chains.

Correct AnswerverifiedShow Answer

A(n) ________ is an activity at which a firm excels as a world-class leader.

Correct AnswerverifiedShow Answer

What are the most successful solutions or methods for achieving a business objective?

Correct AnswerverifiedShow Answer

How do information systems enhance core competencies?

Correct AnswerverifiedD

The interaction between information systems and organizations is influenced

Correct AnswerverifiedB

Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of

Correct AnswerverifiedShow Answer

Information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor from the point of view of economics.

Correct AnswerverifiedShow Answer

The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Correct AnswerverifiedShow Answer

The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.

Correct AnswerverifiedShow Answer

The text describes Michael Porter's view of the Internet as somewhat negative. What negative influences does Porter see? Describe several positive influences the Internet has on business. Do these outweigh the negative influences?

Correct AnswerverifiedAnswers will vary. An example of a possi...View AnswerShow Answer

'Synergies' occur when the output of some units in a firm can be used as inputs to other units, lowering cost and generating profits.

Correct AnswerverifiedTrue

The value chain model

Correct AnswerverifiedShow Answer

Routines are also called standard operating procedures.

Correct AnswerverifiedShow Answer

The Internet raises the bargaining power of customers by

Correct AnswerverifiedShow Answer

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Better Bodies could use computers to mon...
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D

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B

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Answers will vary. An example of a possi...
View Answer

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True

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