Question 1

Which of the following is a function of operations management?

Accepted Answer

Operations management involves improving the systems and processes used by an organization to deliver its goods and services. Building and maintaining customer relationships (A) and formulating a strategy for business diversification (C) fall under the purview of marketing and strategic management, respectively. Introducing a new product (D) is a function of product development or research and development.

Question 2

Which of the following is a function of accounting information systems?

Accepted Answer

The function of accounting information systems is to record financial transactions, generate financial statements, and provide financial information to aid in decision-making. Procuring goods and services is a financial transaction that would be recorded and tracked by the accounting information system. Choices B, C, and D are not related to the function of accounting information systems.

Question 3

Which of the following reasons led to the popularity of social networking sites?

Accepted Answer

Social networking sites gained popularity because they enabled users to easily share various types of content, such as news, photos, videos, and other tidbits. Options A, B, and C are incorrect because social networking sites do require an internet connection and often support both asynchronous and synchronous communication, as well as various security measures.

Question 4

Cadmia University is planning to start an online course called "Cultural diversities." The university wants to develop an information system to support virtual, collaborative education. Which of the following factors should be taken into account when developing the new system?

Accepted Answer

The way students interact in an actual classroom setting is an important factor to consider when developing an online course, as it can help to create a more engaging and collaborative learning experience.

Question 5

Which of the following statements is true of information systems (IS)?

Accepted Answer

Information systems have become a critical component of a company's strategic vision and can provide them with a competitive edge. This is because IS can enhance efficiency and streamline business processes, helping organizations operate more effectively. Social networking is just one aspect of IS and has actually improved virtual collaboration. IS can also be valuable to government agencies and voluntary organizations as it enables them to improve their communication and data management capabilities. Therefore, option B is the correct choice. Option A is incorrect because as mentioned above, IS has indeed supported virtual collaboration. Option C is incorrect as IS can be beneficial for government agencies and voluntary organizations. Option D is also incorrect because IS is a vital component of a company's strategic vision.

Question 6

Which of the following statements is true of information systems?

Accepted Answer

Information systems are commonly used to track employee payroll, taxes, benefits, and timesheets. This is a traditional function of information systems in businesses and organizations. B, C, and D are incorrect as they are inconsistent with the role and use of information systems in organizations.

Question 7

Navi-devices Inc., a manufacturer of portable navigation devices, provides free traffic updates and identifies the nearest parking spaces available with its latest device. It accomplishes this by using GPS coordinates of subscribers and traffic data from radio stations. Which of the following is the most likely impact of this strategy?

Accepted Answer

By providing free traffic updates and identifying the nearest parking spaces available, Navi-devices Inc. is providing added value to its customers, which can attract more consumers and maintain existing customers, thus providing a competitive advantage in the market.

Question 8

The success of web-based shopping hinges on ________.

Accepted Answer

The success of web-based shopping relies on building stronger customer relationships and identifying the unique needs of each customer. This can be achieved through personalized marketing, excellent customer service, and targeted advertising. Customers are more likely to return to a website or recommend it to others if they feel valued and understood.

Question 9

________ refers to the information that managers draw from the company's own information systems and external sources to make decisions.

Accepted Answer

Business intelligence refers to the process of gathering, analyzing, and presenting information that can be used by managers to make informed business decisions. This information can be drawn from internal sources such as the company's own databases or external sources such as market research reports, industry trends, and competitor analysis. Business intelligence tools and techniques can help managers to identify patterns, trends, and insights that can be used to improve performance, optimize operations, and gain a competitive advantage.

Question 10

Which of the following statements is true of web-based shopping and online self-service applications?

Accepted Answer

The answer of Which of the following statements is true...

Question 11

Which of the following is a concern regarding information systems that support virtual teamwork?

Accepted Answer

The relative stage of infancy of virtual teamwork systems is a concern as it means that these systems may still be prone to bugs, glitches, and limitations that have not yet been addressed or resolved. This can impact the effectiveness and efficiency of virtual teamwork.

Question 12

Play-e-ball, a company that creates games for gaming consoles, gathers data from the information systems of its partners, suppliers, and distributors. It uses this data along with internal data to develop different games for different consumer demographics, and it targets the most profitable segments. Which of the following is illustrated in this scenario?

Accepted Answer

The scenario describes the company using data from various sources to develop games targeting profitable segments. This process involves gathering, analyzing, and utilizing data for decision-making, which falls under the category of business intelligence. Customer relationship management, inventory management, and virtual collaboration are not emphasized in the scenario.

Question 13

How do web-based online self-service applications transform an organization's relationships with its customers?

Accepted Answer

Web-based online self-service applications provide customers with the ability to complete routine tasks themselves without the need for direct contact with customer service representatives. This frees up the organization's resources and time, allowing them to focus on more complex tasks and improving the overall efficiency and effectiveness of customer service. Additionally, it allows customers to access support at their convenience, increasing satisfaction levels and potentially leading to greater customer loyalty.

Question 14

Decision making that draws on billions of pieces of aggregated information to reveal important trends and patterns is called ________.

Accepted Answer

Data-driven decision making involves drawing on large amounts of data to uncover trends and patterns in order to inform decision making. The other options - intuitive decision making, uninformed decision making, and unstructured decision making - do not involve the systematic analysis of vast amounts of data.

Question 15

Walking Together, an NGO, uses historical trends to determine in which month the amount given as donations is the highest, and then it sets the dates for its donation drives based on the trends. This is an example of ________.

Accepted Answer

The NGO, Walking Together, is using historical data to make a decision on when to hold donation drives, which is an example of data-driven decision making.

Question 16

Which of the following events led to tighter standards for accounting practices and a demand for more transparency in reporting?

Accepted Answer

The global financial crisis of 2009 exposed major flaws in accounting practices and reporting, leading to a demand for stricter standards and increased transparency. This resulted in the passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States and the implementation of International Financial Reporting Standards (IFRS) globally. The other options listed do not have a direct correlation with tighter accounting standards and transparency in reporting.

Question 17

Which of the following statements is true of information systems that support collaborative human activities?

Accepted Answer

Information systems that support collaborative human activities are in their early stages of development and offer a framework for more improvements and features to be included. They do have tools such as document management, project updates, issue tracking, and shared calendars. While these systems may not be as mature or complex as decision support systems, they serve a different purpose and are not meant to replace them. The returns on investment for these systems can vary depending on the organization and how well the system is implemented and used.

Question 18

Anything that gives a firm a lead over its rivals is called ________.

Accepted Answer

A competitive advantage refers to any factor that allows a firm to outperform its rivals such as having a superior product or offering lower prices. Economies of scale and business growth are factors that can contribute to a competitive advantage, but they are not the definition of a competitive advantage. Break-even is a term used to describe when a company's revenue equals its expenses.

Question 19

The use of information systems in achieving excellence in operations can result in ________.

Accepted Answer

The use of information systems can help streamline operations and improve efficiency, resulting in cost savings for the organization. B, C, and D are not necessarily direct results of using information systems in operations.

Question 20

The use of an information system in a grocery store would improve customer satisfaction by ________.

Accepted Answer

Self-service checkouts can reduce wait times and improve the shopping experience, leading to higher customer satisfaction.

Quiz 1: Information Systems and People