STI IUP_241201_100436 Quiz Questions PDF

CH 9 1. From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following business objectives? A) customer and supplier intimacy B) operational excellence C) survival D) improved decision...

CH 9 1. From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following business objectives? A) customer and supplier intimacy B) operational excellence C) survival D) improved decision making E) new products and services Answer: B 2. A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes A) process management software. B) ERP systems. C) groupware. D) application software. E) supply chain management systems. Answer: B 3. Enterprise software is built around thousands of predefined business processes that reflect A) the firm's organization. B) industry goals. C) best practices. D) cutting edge workflow analyses. E) the firm's culture. Answer: C 4. A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain. E) onstream portion of the supply chain. Answer: C 5. If manufacturers had perfect information, they could implement a A) hyper-efficient strategy. B) frictionless strategy. C) streamlined strategy. D) bullwhip strategy. E) just-in-time strategy. Answer: E 6. Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? A) safety stock B) continuous replenishment C) just-in-time strategies D) demand planning E) perfect information Answer: A 7. A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy A) just-in-time B) frictionless C) bullwhip D) safety-stock E) streamlined Answer: A 8. upply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) push; pull B) demand; continual C) upstream; downstream D) planning; execution E) maintenance; development Answer: D 9. The business value of an effective supply chain management system includes all of the following except A) faster time to market. B) cost reduction. C) supply matched to demand. D) improved delivery service. E) increased inventory levels. Answer: D 10. The total time it takes to complete a business process, from start to finish, is called its ________ time A) development B) cycle C) fulfillment D) service E) actualization Answer: B 11. CRM systems help businesses obtain which business objective? A) survival B) operational excellence C) new products and services D) improved decision making E) customer and supplier intimacy Answer: E 12. Selling a customer with a checking account a home improvement loan is an example of A) operational CRM. B) direct marketing. C) sales force automation. D) cross-channel promotions. E) cross-selling. Answer: E 13. Operational CRM applications include tools for A) identifying buying patterns. B) calculating CLTV. C) salesforce automation. D) pinpointing unprofitable customers. E) creating segments for targeted marketing. Answer: C 14. Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company A) churn rate B) customer lifetime value C) cost per lead D) cost per sale E) customer average value Answer: B 15. Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers A) employee relationship management B) cross-selling C) just-in-time strategy D) Web services E) operational CRM Answer: D Ch 10 1. What event marked the beginning of e-commerce? A) The first product sold online B) The first domain name registered C) The first e-mail sent D) The first paid advertisements placed on a website E) The first product advertised online Answer: D 2. A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n): A) exchange. B) marketspace. C) online marketplace. D) e-hub. E) net marketplace. Answer: B 3. All of the following are unique features of e-commerce technology, except: A) personalization/customization. B) interactivity. C) price discrimination. D) richness. E) global reach. Answer: C 4. Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet? A) B2C e-commerce B) B2B e-commerce C) C2C e-commerce D) M-commerce E) P2P e-commerce Answer: A 5. Which of the following Internet business models involves a merchant creating an online digital environment that enables people with like interests to share information? A) Community provider B) Service provider C) Market creator D) Transaction broker E) Portal Answer: A 6. Which of the following best illustrates the sales revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Pandora provides basic services for free, but charges a premium for advanced services.  D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies. Answer: D 7. As described in the chapter case, Uber uses the ________ revenue model. A) service provider B) market creator C) community provider D) portal E) transaction broker Answer: B 8. An environment where consumers can share their shopping experiences with one another by viewing products, chatting, or texting about brands, products, and services is an example of: A) network notification. B) web personal marketing. C) collaborative shopping. D) social search. E) social sign-on. Answer: C 9. Which of the following is an example of a direct good in the automobile industry? A) Computer equipment B) Paper C) Office furniture D) Roofing shingles E) Sheet steel Answer: E 10. Which of the following is a milestone for the website development phase of building an ecommerce presence? A) Web mission statement B) Social media plan C) Website plan D) Web presence m ap E) Functional website Answer: C 11. In planning a robust e-commerce presence, you will want to consider the blog platform as part of your ________ presence A) social media B) e-mail C) community D) website E) offline media Answer: A 12. Which of the following is one of four types of presence to be considered when building not an e-commerce presence? A) Offline media B) Websites  C) Social media D) Corporate E) E-mail Answer: D 13. Compared to traditional goods, digital goods have: B) higher delivery costs. C) lower initial production costs. D) higher inventory costs. E) higher marginal costs. Answer: A 14. Compared to digital goods, traditional goods have: A) lower inventory costs. B) lower marginal costs per unit. C) lower copying costs. D) more variable pricing. E) higher costs of distribution. Answer: E 15. What is the primary benefit to consumers of disintermediation? A) Faster service B) Lower costs C) Higher quality D) Greater choices E) None, because disintermediation primarily benefits manufacturers. Answer: B Ch 11 Managing Knowledge and Artificial Intelligence 1. Which of the following is the first step in the knowledge management value chain? A) Feedback B) Acquire C) Disseminate D) Store E) Apply Answer: B 2. The text defines ________ as expertise of organizational members that has not been formally documented A) wisdom B) information C) data D) experience E) tacit knowledge Answer: E 3. Which of the following techniques is used for knowledge acquisition? A) Decision support systems B) Transaction processing systems C) CAD D) Data mining E) Content management system Answer: D 4. Virtually all expert systems deal with problems: A) of policy development. B) that are highly structured. C) of logic and control. D) of high complexity. E) with imprecise rules. Answer: B 5. Which of the following seeks to enhance human perception by combining a live direct view of the physical world with computer-generated images? A) Augmented reality B) Expert system C) Comput -Aided Design er D) Knowledge Work System E) Machine Learning System Answer: A 6. All of the following are considered to be knowledge workers : A) designers. B) engineers. C) architects. D) executives. E) researchers. Answer: D 7. CAD workstations:  A) provide engineers, designers, and factory managers with precise control over industrial design and manufacturing. B) provide an important source of expertise for organizations. C) allow groups to work together on documents. D) are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management. E) facilitate employee learning. Answer: A 8. In content management, once a taxonomy is developed, documents must then be ________ with the proper classification. A) tagged B) inventoried C) tupled D) retrieved E) archived Answer: A 9. ________ knowledge exists in formal documents, as well as in formal rules that organizations derive by observing experts and their decision-making behaviors. A) Unstructured B) Tacit C) Management D) Explicit E) Structured Answer: E 10. A(n) ________ is a type of intelligent technique that finds patterns and relationships in massive data sets too large for a human to analyze. A) inference engine B) CAD C) expert system D) genetic algorithm E) neural network Answer: E 11. Intelligent agents rely on: A) agent-based modeling. B) MOOC. C) augmented reality. D) virtual reality systems. E) machine learning. Answer: E 12. What type of intelligent technique helps Netflix develop a personalized selection of videos for customers? A) Machine learning B) Intelligent agents C) Genetic algorithms D) Neural networks E) Deep learning neural networks  Answer: A 13. Informal social networks of professionals and employees within and outside the firm who have similar work-related activities and interests are called communities of: A) practic e. B) professionals. C) interest. D) knowledge. E) expertise. Answer: A 14. Which of the following is one of the main four dimensions of knowledge described in the not chapter? A) Knowledge is a firm asset. B) Knowledge has different forms. C) Knowledge has a location. D) Knowledge is situational. E) Knowledge is timeless. Answer: E 15. What is the last value-adding step in the knowledge business value chain? A) Acquire B) Data and information acquisition C) Store D) Disseminate E) Apply Answer: E Ch 12 Enhancing Decision Making 1. Which of the following statements best describes the business value of improved decision making? A) Improved decision making creates better products. B) Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency, production, costs, and more add up to large annual values. C) Improved decision making enables senior executives to more accurately foresee future financial trends. D) Improved decision making strengthens customer and supplier intimacy, which reduces costs. E) Improved decision making creates a better organizational culture. Answer: B 2. When there is no well-understood or agreed-on procedure for making a decision, it is said to be: A) undocumented. B) unstructured. C) documented. D) se -structured. mi E) random. Answer: B 3. If you can follow a definite procedure to make a business decision, you are making a(n) ________ decision. A) ad-hoc B) procedural C) unstructured D) semi-structured E) structured Answer: E 4. Which type of decision is calculating gross pay for hourly workers? A) Semi-structured B) Procedural C) Structured D) Unstructured E) Ad hoc Answer: C 5. The decision to approve a capital budget is an example of a(n) ________ decision. A) structured B) analytic C) semi-structured D) undocumented E) unstructured Answer: E 6. Checking store inventory is an example of a(n) ________ decision. A) procedural B) structured  C) ad hoc D) unstructured E) semi-structured Answer: B 7. The ________ phase of decision making involves identifying and exploring various solutions to a problem. A) choice B) design C) implementation D) analysis E) intelligence Answer: B 8. Which of the following is one of the five observed ways in which managerial behavior not differs from the classical description of managers? A) Managers perform a great deal of work at an unrelenting pace. B) Managers prefer using formal information systems. C) Managers prefer current, specific, ad-hoc information. D) Managers prefer oral forms of communication. E) Managers give high priority to maintaining a diverse web of contacts. Answer: B 9. The role of spokesperson falls into which of Mintzberg's managerial classifications? A) Decisional B) Informational C) Interpersonal D) Symbolic E) Leading Answer: B 10. As discussed in the chapter text, the three main reasons that investments in information technology do always produce positive results are: A) management support, technical logistics, and user compliance. B) organization, environment, culture. C) information quality, information integrity, and information accuracy. D) information quality, organizational culture, and management filters. E) organization, culture, and technology. Answer: D 11. Which quality dimension of information is concerned that all the necessary data needed to make a decision is present? A) Timeliness B) Consistency C) Completeness D) Accessibility E) Validity Answer: C 12. Google's search engine is an example of which of the following types of decision? A) Semi-structured B) Financial  C) Analytic D) High velocity E) Highly structured Answer: D 13. Which of the following BI tools or abilities has been driving the movement toward "smart cities"? A) OLAP B) Chi-square analysis C) Predictive analytics D) Data mining E) Big data analytics Answer: E 14. Which of the following statements best describes the term ? A) Software developed exclusively for business management B) The tools and techniques used to analyze and understand business data C) The infrastructure for collecting, integrating, and analyzing business data D) Information systems involved in business decision making E) Enterprise systems used to make business decisions Answer: C 15. ________ are visual tools for presenting performance data in a BI system A) Dashboards and scorecards B) Parameterized reports C) Reports and the drill-down feature D) Scenarios and models E) Ad hoc report creation Answer: A 16. GDSS capabilities have improved along with all of the following except: A) improved power of desktop PCs. B) explosion of mobile computing. C) growth of cellular networks. D) increase in dedicated conference rooms. E) expansion of Wi-Fi bandwidth. Answer: D 17. Group Decision Support Systems (GDSS): A) are designed to allow meeting attendees to share their thoughts in real-time with their peers. B) support decisions that require knowledge about the geographic distribution of resources. C) are only used with geographically dispersed attendees. D) facilitate the solution of unstructured problems. E) provide tools that allow managers to visualize data. Answer: D 18. The management methodology of using a firm's strategy to generate operational targets for the business and measuring progress towards them using the firm's enterprise systems is called: A) benchmarks.  B) Key Performance Indicators (KPIs). C) the balanced scorecard method. D) Business Performance Measurement (BPM). E) business intelligence. Answer: D 19. An information system that combines data from internal TPS with information from financial systems and external sources to deliver reports such as profit-loss statements and impact analyses, is an example of A) DSS. B) ESS. C) CDSS. D) MIS. E) GIS. Answer: B 20. Predictive analytics is used for all of the following except: A) anticipating customer response to price changes. B) identifying the most profitable customers. C) determining the best routes for product delivery. D) establishing consumer credit scores. E) forecasting driver safety. Answer: C Ch 13. Building Information Systems 1. The four kinds of structural organizational change enabled by IT, in order from least to most risky, are: A) rationalization, automation, reengineering, and redesigning. B) rationalization, automation, reengineering, and paradigm shift. C) automation, rationalization, redesigning, and paradigm shift. D) automation, redesigning, restructuring, and paradigm shift. E) paradigm shift, reengineering, rationalization, and automation. Answer: C 2. In automation: A) more manual steps are required. B) business processes are reorganized to cut waste and eliminate repetitive, paper- intensive tasks. C) new products are explored first. D) employees are enabled to perform their tasks more efficiently. E) business processes are added. Answer: D 3. Which of the following is more powerful than rationalization of procedures? A) Business process redesign B) TQM C) Automation D) Six sigma E) Systems analysis and design Answer: A 4. A bank has reworked its mortgage application process so that several steps are handled by computer software, and some steps are combined to reduce bottlenecks in processing. The goal is to gradually improve its efficiency over time. This is an example of: A) automation. B) rationalization of procedures. C) paradigm shift. D) TQM. E) six sigma. Answer: B 5. An upscale organic foods grocery store chain is implementing an information system that will enable it to add same-day home delivery of groceries to its customers. This is an example of: A) automation. B) rationalization of procedures. C) paradigm shift. D) business process redesign. E) organizational change. Answer: C 6. In order, what are the first three steps in BPM? A) 1. identifying processes for change, 2. analyzing existing processes, 3. designing the new process.  B) 1. analyzing existing processes, 2. identifying processes for change, 3. designing the new process. C) 1. identifying processes for change, 2. designing the new process, 3. implementing the new process. D) 1. analyzing processes to change, 2. designing the new process, 3. measuring the optimized process. E) 1. designing new processes, 2. analyzing existing processes, 3. identifying processes for change. Answer: A 7. What is the most significant barrier to successful business process change? A) Ineffective project management B) Usability of implemented solution C) Selecting the correct process to change D) Organizational culture E) Poor choice of technology Answer: D 8. BPM software provides tools that help business do all of the following : A) identify and document processes requiring improvement. B) create models of improved processes. C) capture and enforce business rules for performing processes. D) capture and identify information system requirements for a new system. E) integrate existing systems to support new or redesigned processes. Answer: D 9. Which process develops a detailed description of the functions that a new information system must perform? A) Feasibility study B) Requirements analysis C) Systems design D) Test plan development E) Management plan Answer: B 10. Transferring data from a legacy system to the new system would be defined by which category of system design specifications? A) Input B) Database C) Manual procedures D) Conversion E) Implementation Answer: D 11. In a parallel conversion strategy, the new system: A) is tested by an outsourced company. B) replaces the old one on an appointed day. C) and the old are run together for a time. D) is introduced only to a limited area first. E) is slowly converted from the old system. Answer: C 12. During the ________ stage of system development, systems tests are evaluated by users and reviewed by management A) programming B) systems analysis and design C) implementation D) conversion E) acceptance testing Answer: E 13. The entire system-building effort is driven by: A) six sigma. B) feasibility studies. C) documentation. D) user information requirements. E) available information technology. Answer: D 14. An entire information system can be broken down into its subsystems by using a: A) high-level structure chart. B) low-level data flow diagram. C) process specification. D) high-level data flow diagram E) logical design diagram. Answer: A 15. To understand and define the contents of data flows and data stores, system builders use: A) a data dictionary. B) process specifications diagrams. C) user documentation. D) data flow diagrams. E) systems analysis. Answer: A 16. In an object-oriented development framework for a university, how would the classes Degree, Mathematics, and Physics be related? A) Degree would be a sister class to Mathematics and Physics. B) Degree is a superclass to Mathematics and Physics. C) Mathematics and Physics would be ancestors to Degree. D) Degree would be a subclass to Mathematics and Physic s. E) Math, Physics and Degree are sister classes. Answer: B 17. Which of the following statements about CASE is not true? A) CASE tools provide automated graphics facilities for producing charts. B) CASE tools reduce the need for end user participation in systems development. C) CASE tools have capabilities for validating design diagrams and specifications. D) CASE tools support collaboration among team members. E) CASE tools facilitate the creation of clear documentation. Answer: B 18. In which type of systems building are the development stages organized so that tasks in one stage are completed before the tasks in the next stage begin? A) Traditional B) Prototyping C) RAD D) JAD E) Object-oriented development Answer: A 19. Which of the following may occur when systems are created rapidly, without a formal development methodology? A) End users can take over the work of IT specialists. B) The organization quickly outgrows the new system. C) Hardware, software, and quality standards are less important. D) Testing and documentation may be inadequate. E) IT specialists dominate the design of the system. Answer: D 20. Groups of objects are assembled into software components for common functions, which can be combined into large-scale business applications, in which type of software development? A) Object-oriented development B) Component-based development C) Structured methodologies D) RAD E) Agile development Answer: B 21. Compared to the use of proprietary components, web services promise to be less expensive and less difficult to implement because of: A) their ability to integrate seamlessly with legacy systems. B) their ability to enable communication among different systems using universal standards. C) the ubiquity of the Internet. D) the ability to reuse web services components. E) their use of custom programming. Answer: B CH 14. Managing Projects 1. On average, private sector IT projects underestimated budget and delivery time of systems by more than ________ percent. A) 30 B) 40 C) 50 D) 70 E) 80 Answer: C 2. All of the following are indications of a failed information systems project except: A) employees are refusing to switch to the new system. B) employees have created a spreadsheet solution to manipulate the data generated by the system. C) a redesigned website has fewer visits to the customer support pages. D) employees require training to properly use the system. E) the system is not being used by anyone. Answer: D 3. A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called a(n): A) project plan. B) portfolio analysis. C) information systems plan. D) enterprise analysis. E) strategic planning document. Answer: C 4. Which of the following best describes the central method used in a portfolio analysis? A) Performing an inventory of all of the organization's information systems projects and assets B) Performing a weighted comparison of the criteria used to evaluate a system C) Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information D) Interviewing a small number of top managers to identify their goals and criteria for achieving success E) Scoring proposed systems on a number of dimensions, and selecting the one with the highest score Answer: A 5. A firm in the finance industry should do which of the following to ensure that it stays current with technology? A) Select only low-cost, low risk projects B) Limit work to those projects with great rewards C) Select only low-risk, high-reward projects D) Have a few high-risk, high-benefit projects E) Avoid projects that are very costly Answer: D 6. Which method would you use to develop risk profiles for a firm's information system projects and assets? A) Information systems plan B) Scoring model C) Portfolio analysis D) TCO E) Real options model Answer: C 7. You have been hired by a firm in a non-information-intensive industry to evaluate its inventory of systems and IT projects. Which types of projects should the firm focus on? A) High-risk projects B) Low cost, low-benefit projects C) High-benefit, low-risk projects D) Any project that might be beneficial E) Low cost, high benefit projects Answer: C 8. Which method is used to assign weights to various features of a system? A) Information systems plan B) Scoring model C) Portfolio analysis D) TCO E) Real options model Answer: B 9. Which of the following statements about scoring models is not true? A) There are many qualitative judgments involved in using a scoring model. B) A scoring model is useful for selecting projects where many criteria must be considered. C) The most important outcome of a scoring model is the score. D) A scoring model requires experts who understand the issues and the technology. E) It is appropriate to cycle through a scoring model several times. Answer: C 10. Which of the following would be not covered in the Strategic Business Plan Rationale not section of an information systems plan? A) Current situation B) Current business organization C) Firm's strategic plan D) Changing environments E) Current infrastructure capabilities Answer: E 11. Which of the following strategies represents the proper approach to a low risk, high reward project? A) Identify and develop B) Avoid C) Treat as a routine project D) Pursue after all other projects are complete  E) Cautiously examine Answer: A 12. You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow? A) Increased sales of products B) Hardware and software expenditures C) Labor expenditures D) Reduced costs in production and operation E) Hardware, software, and labor expenditures Answer: E 13. The value of systems from a financial perspective essentially revolves around the issue of: A) total cost of ownership. B) adherence to information requirements. C) asset utilization. D) return on invested capital. E) the cost of computing equipment. Answer: D 14. The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment (ROI), the net present value, and the: A) future present valu e. B) internal rate of return. C) external rate of return. D) ROPM (real options pricing model). E) present value of future cash flows. Answer: B 15. Which of the following is a limitation of using a financial approach to evaluate information systems? A) Inability to measure ROI B) Inability to control vendor costs C) Inability to assess risk D) Inability to assess costs from organizational disruption E) Inability to assess the cost of technology Answer: D 16. ________ methods rely on measures of cash flows into and out of the firm. A) Scoring model B) Portfolio analysis C) Real options pricing D) Capital budgeting E) Cost effectiveness Answer: D 17. Counterimplementation is best defined as: A) multiple implementations that are run in parallel. B) deliberate attempts to thwart the implementation of a system.  C) critiquing the implementation of a system constructively. D) all of the organizational challenges involved in implementing a system. E) strategies used to overcome user resistance to change. Answer: B 18. All of the following are directly correlated with increased risk except: A) a large amount of technical expertise from project team and information team staff. B) a large amount of dollars spent. C) a large amount of implementation staff. D) a large amount of time allocated for implementation. E) a large amount of organizational units affected. Answer: A 19. Which of the following refers to all organizational activities working toward the adoption, management, and routinization of a new information system? A) Production B) Maintenance C) Implementation D) Acceptance E) Final acceptance Answer: C 20. Which of the following is one of the activities of the systems analyst? A) Acting as a change agent B) Communicating with users C) Mediating between competing interest groups D) Formulating of capital budgeting models E) Deciding which systems to develop Answer: D 21. Which of the following is a factor in the high failure rate of reengineering systems not projects? A) Employees' concerns about change B) Resistance by key managers C) Changes in career paths signaled by the new system D) Changes in job descriptions signaled by the new system E) Failures of the new technologies to perform according to plan Answer: E 22. Which of the following is you would use to control risk factors in an not something information systems project? A) Internal integration tools B) External integration tools C) Formal planning tools and formal control tools D) Capital budgeting models E) Gantt charts Answer: D 23. Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it? A) PERT chart B) Gantt chart  C) Both a PERT chart and a Gannt chart D) Scoring model E) Portfolio analysis Answer: B 24. Which of the following is an example of using an external integration tool? A) Creating a Gantt chart B) Including user representatives as active members of the project team C) Creating a PERT chart D) Using portfolio analysis E) Developing a scoring model Answer: B 25. Which of the following best describes the relationship between system implementation and user involvement and management support? A) System implementation rarely benefits from user involvement. B) System implementation benefits from user support, but does not require management support. C) System implementation generally benefits from high levels of user involvement and management support. D) System implementation benefits from management support, but does not require user support. E) System implementation rarely benefits from management support. Answer: C 26. According to the Project Management Institute, what is the leading factor in project success? A) Upper management that financially backs the project B) Executive sponsors who are actively engaged C) Carefully monitored changes in work habits and procedures D) Communication between technicians and end users E) End users who communicate their needs for the project Answer: B Ch 15. Managing Global Systems 1. The major dimensions of international systems architecture include each of the following except: A) the global environment. B) corporate global rategy. st C) technology platform. D) transborder data flows. E) management and business processes. Answer: D 2. Which of e following is a general cultural factor driving global business? A) Global communication and transportation technologies B) Political stability C) Global knowledge base D) Rise of shared values E) Global social norms Answer: D 3. New levels of global coordination of all of the major business functions permit the location of business activity according to: A) comparative advantage. B) social norms and values. C) competitive threat. D) knowledge base. E) labor costs. Answer: A 4. Transborder data flow refers to: A) the flow of information in international systems. B) the ways in which a country's laws change the flow of data from one country to another. C) the business of moving information from one country to another. D) the movement of information across international boundaries. E) the business process of coordinating information from many different countries. Answer: D 5. Consumers who only want to purchase products made in their own country are an example of: A) cultural particularism. B) political culture. C) universal global attitudes. D) different laws in different countries. E) different business standards. Answer: A 6. In terms of global business strategy and structure, a domestic exporter strategy: A) centralizes production, accounting, human resources, and strategic management, and uses a mixed model of sales and marketing. B) concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. C) centralizes production, accounting, marketing, and human resources.  D) disperses production and marketing, with centralized accounting, human resources and strategic management. E) concentrates production and marketing in each country, and decentralizes accounting and human resources. Answer: A 7. A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy. A) domestic exporter B) franchising C) transnational D) multinational E) conglomerate Answer: D 8. Which of the following statements about transnational firms is not true? A) Transnational firms have many regional headquarters and perhaps a world headquarters. B) Transnational firms are stateless. C) Transnational firms view the entire globe as their management frame of reference. D) Transnational firms have no single headquarters. E) Many firms have attained transnational status. Answer: E 9. In centralized systems: A) development occurs at the home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems. C) systems development and operations occur in an integrated and coordinated fashion across all units. D) systems development and operations occur totally at the domestic home base. E) systems development is a combined effort of domestic and international units. Answer: D 10. In duplicated systems: A) development occurs at the home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems. C) systems development and operations occur in an integrated and coordinated fashion across all units. D) foreign units design the solutions and systems used at the domestic home base. E) systems development is a combined effort of domestic and international units which are then duplicated across the world. Answer: A 11. In decentralized systems: A) development occurs at the home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems. C) systems development and operations occur in an integrated and coordinated fashion across all units.  D) foreign units design the solutions and systems used at the domestic home base. E) all systems are designed in domestic headquarters and then distributed to foreign units. Answer: B 12. In networked systems: A) development occurs at the home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems. C) systems development and operations occur in an integrated and coordinated fashion across all units. D) foreign units design the solutions and systems used at the domestic home base. E) development occurs at the home base but operations are handed over to autonomous units in foreign locations. Answer: C 13. Domestic exporters typically have highly ________ systems. A) duplicated B) centralized C) networked D) decentralized E) autonomous Answer: B 14. Multinational companies tend to dominantly have ________ systems. A) duplicated B) centralized C) networked D) decentraliz ed E) autonomous Answer: D 15. Franchise companies have typically had ________ systems. A) duplicated B) centralized C) networked D) decentralized E) autonomous Answer: A 16. Which of the following is an emerging pattern of system configuration for multinational companies? A) Duplicated B) Centralized C) Networked D) Decentralized E) Autonomous Answer: C 17. Which of the following is one of the principal management challenges in developing not global systems? A) Encouraging local users to support global systems  B) Coordinating applications development C) Defining an acceptable test plan D) Agreeing on common user requirements E) Introducing changes in business processes Answer: C 18. Which of the following occurs as a firm moves from local option systems to regional and global systems? A) Agency costs increase. B) Coordination costs decrease. C) Transaction costs increase. D) Both transaction and agency costs increase. E) All costs increase. Answer: A 19. Transnational centers of excellence do all of the following : except A) perform initial identification and specification of business processes. B) define information requirements. C) perform business and systems analysis. D) accomplish all design and testing. E) implement the system. Answer: E 20. Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view? A) Only some core systems that support functions that are absolutely critical to the organization B) Core systems and worthwhile provincial systems C) Core systems and any financial systems that can be easily integrated with each other D) Financial and accounting systems E) Systems that support decentralized units Answer: A 21. Which of the following is one of the principal problems of international networks? A) Network capacity B) Poor quality of international service C) Network standards D) Regulatory constraints E) Installation delays Answer: C