True/False Questions: Major Business Initiatives

Chapter 2
Major Business Initiatives

True/False Questions

T F 1. The distribution chain is simply the path followed from the distributor of a product or
service to the end consumer.
Answer: False Level: Hard Page: 62

T F 2. An alliance partner is a company you do business with on a regular basis in a cooperative
fashion, usually facilitated by IT systems.
Answer: True Level: Easy Page: 78

T F 3. A supply chain management system automates inventory tracking but still requires that
information be transferred manually.
Answer: False Level: Easy Page: 62

T F 4. Logistics refers to the set of processes that plans for and controls the efficient and effective
transportation and storage of supplies from suppliers to customers.

T F 5. A software provider provides software over the Internet for a company to use.

T F 6. Customer relationship management systems are remarkably successful when compared to
other information systems. Over 90% of installations are considered successful.

T F 7. Business intelligence helps you make effective, important, often strategic decisions about
your business.

T F 8. A business intelligence system supports the illegal gathering of confidential information
from your competitors.

T F 9. Most organizations rarely use teams.

Test Bank, Chapter 2 30

T F 10. Virtual team members are typically located in the same geographic areas.

T F 11. Collaboration systems are designed to support the sharing and flow of information between
companies.

T F 12. Presence awareness software is based on e-mail.
Answer: False Level: Medium Page: 80

T F 13. Transportation logic is the process that plans for and controls the efficient and effective
transportation and storage of supplies from suppliers to customers.

T F 14. Revenue and profit are optimized by a well-designed supply chain management.

T F 15. Supply chain management includes fulfillment.

T F 16. Upper level executives do not need to understand the importance of supply chain
management.

T F 17. Business intelligence is knowledge about your customers, your competitors, your partners,
your competitive environment, and your own internal operations.

T F 18. Business intelligence comes from information.

T F 19. A data mart is a subset of a data warehouse in which only a focused portion of the data
warehouse information is kept.

T F 20. Data warehouses support only OLTP.

Haag/Cummings, Information Systems Essentials 31
T F 21. A data warehouse is a logical collection of information gathered from many different
operational databases used to create business intelligence that supports business analysis
activities and decision-making tasks.
Answer: True Level: Medium Page: 73

T F 22. Customer relationship management is just another software package.

T F 23. Customer relationship management systems often fail because company goals are too
broad.
Answer: True Level: Medium Page: 71

T F 24. Generic strategies often lead to customer relationship management successes.

T F 25. Customer relationship management should be completely based upon softwarethere are
no other components to consider.

T F 26. Back office and front office systems are both part of intraoffice communications and
management systems.
Answer: False Level: Hard Page: 71

Multiple Choice Questions

27. Which term describes a company you do business with on a regular basis in a cooperative fashion,
usually facilitated by IT systems?
A) Alliance partner
B) Information partnership
C) Distribution chain
D) B2B
Answer: A Level: Easy Page: 78

28. Which term describes an approach that produces or delivers a product or service just at the time the
customer wants it?
A) J ust-in-time
B) Supply chain
C) Distribution chain
D) Value chain


29. J ust-in-time is an approach that produces or delivers a product or service just at the time the:
A) Supplier wants it
B) Distributor wants it
C) Customer wants it
D) Seller wants it
Answer: C Level: Easy Page: 63

30. Collaborative planning, forecasting, and replenishment (CPFR) is a concept that encourages and
facilitates collaborative processes between:
A) Members of a value chain
B) Members of a supply chain
C) Members of a distribution chain
D) None of the above
Answer: B Level: Medium Page: 65

31. Which term describes a concept that encourages and facilitates collaborative processes between
members of a supply chain?
A) Collaborative planning, focusing, and reordering (CPFR)
B) Collaborative planning, forecasting, and replenishment (CPFR)
C) Collaborative planning, forecasting, and reordering (CPFR)
D) Collaborative planning, focusing, and replenishment (CPFR)

32. Which system below is used to maximize the amount of revenue that an airline generates on each
flight?
A) Collaborative filtering system
B) Yield management system
C) Disintermediation system
D) CPFR system
Answer: B Level: Easy Page: 84

33. Which of the following tracks inventory and information among business processes and across
companies?
A) supply chain management
B) power supply
C) customer relationship management
D) integrated supply management

34. What does an application service provider do?
A) provides software over the intranet
B) provides hardware over the internet
C) provides computer equipment
D) none of the above
Answer: A Level: Medium Page: 66

35. Which of the following systems can be used to gain insights into the needs, wants, and behaviors of
customers?
A) sales force automation systems
B) customer relationship management systems
C) transaction processing systems
D) collaborative systems

36. Which of the following systems can perform sales lead tracking, contact management, and market
analysis?
A) sales force automation systems
B) customer relationship management systems
C) transaction processing systems
D) collaborative systems

37. Which of the following are reasons that customer relationship management systems may fail?
A) company's goals are too broad
B) strategies are too generic
C) implementations are often too software-centric
D) all of the above
Answer: D Level: Medium Page: 71

38. Which systems are typically used to support customers or sales?
A) back office systems
B) front office systems
C) side office systems
D) information sales systems

39. Which systems are typically used to fulfill and support customer orders?
A) back office systems
B) front office systems
C) side office systems
D) information sales systems

40. Business intelligence includes knowledge about all but which of the following?
A) customers
B) competitors
C) business partners
D) all of the above
Answer: D Level: Easy Page: 72


41. What is the objective of a business intelligence system?
A) gathering confidential information from competitors
B) improving the timeliness and quality of decisions
C) improving the timeliness and quality of input for decision making
D) all of the above
Answer: C Level: Medium Page: 72

42. Business intelligence focused on external competition is:
A) smart
B) external business intelligence
C) competitive intelligence
D) illegal

43. Which of the following is a logical collection of data gathered from many databases and used to
create business intelligence?
A) competitive intelligence system
B) artificial intelligence
C) external intelligence gathering 'bots
D) data warehouse

44. A ____________ is a subset of a data warehouse.
A) database
B) data storeroom
C) data set
D) data mart

45. Data warehouses are queried using?
A) data-mining tools
B) picks and shovels
C) database management systems
D) data marts

46. What displays key information gathered from several sources on a screen in a format tailored to the
needs and wants of an individual?
A) display format
B) web page
C) digital display
D) digital dashboard

47. What is the environment in which virtual teams work?
A) virtual world
B) virtual reality
C) integrated virtual teamwork environment
D) integrated collaboration environment

48. A virtual team is made up of people:
A) located in different geographic locations
B) whose work is supported by an artificial intelligence superstructure
C) an imaginary team used for specific tasks only
D) a short-term team or task force normally used to develop virtual reality environments

49. Software designed to improve the performance of teams by supporting the sharing and flow of
information is called a:
A) social network system
B) group decision support system
C) team system
D) collaboration system

50. All of the steps required for a business process put together are called;
A) business process
B) steps
C) document management system
D) workflow

51. Which system automates and manages the steps in a business process?
A) business process management system
B) document management system
C) workflow system
D) automatic workflow system

52. Which system manages a document through all stages of its life cycle?
B) document management system
C) workflow system


53. Which of the following is an IT system that supports the capture, organization, and dissemination
of knowledge?
B) knowledge management system
C) workflow system

54. Which of the following is an IT system that links you to people you know, and from there, to people
your contacts know/
A) social network system
B) knowledge management system
C) workflow system

55. Which of the following indicates whether someone is available?
A) e-mail
B) workflow system
C) automatic personnel system
D) presence awareness

56. Which of the following permits users to communicate in real time and share files without a central
server?
A) presence awareness
B) peer-to-peer collaboration software
C) yield management system

57. The process that plans for and controls the efficient and effective transportation and storage of
supplies from suppliers to customers is called:
A) transportation
B) logic
C) logistics
D) transportation logic

58. Which of the following are optimized by a well-designed supply chain management?
A) production
B) logistics
C) revenue and profit
D) all of the above

59. Supply chain management includes all but which of the following?
A) fulfillment
B) revenue and profit
C) spend
D) all of the above

60. Which of the following is not a challenge to supply chain management?
A) upper level executives must understand the importance
B) the need to work closely with customers and suppliers
C) innovative integration of internal and external IT systems
D) all of the above are challenges for supply chain management

61. What is the goal of a customer relationship management system?
A) to gain customers
B) to eliminate negative interactions with customers
C) to eliminate the need for customers

62. Where does business intelligence come from?
A) Information technology
B) Information
C) Customer knowledge
D) Competitor knowledge

63. What is business intelligence knowledge about?
A) Customers
B) Competitors
C) Partners
D) All of the above

64. Which of the following tools is used to help an organization build and use business intelligence?
A) Data warehouse
B) Data-mining tools
C) Database management systems
D) All of the above


65. What is a subset of a data warehouse in which only a focused portion of the data warehouse
information is kept?
A) Data mining tool
B) Data mart
C) Data warehouse
D) None of the above

66. Which of the following describes a data warehouse?
A) Collection of information
B) Information gathered from many different knowledge workers
C) Used to support transactional processing
D) All of the above

67. Customer relationship management systems often include functions such as:
A) sales force automation
B) customer service and support
C) Marketing campaign management and analysis
D) all of the above

68. Sales force automation systems perform the following tasks, except:
A) contact management
B) sales lead tracking
C) demand forecasting
D) order management
Answer: C Level: Hard Page: 69

69. Which of the following are parts of IT support for customer relationship management?
A) front office systems
B) back office systems
C) all of the above
Answer: C Level: Hard Page: 71

70. Business intelligence helps knowledge workers understand:
A) capabilities of the firm
B) state of the art, trends, and future directions in the markets
C) applicable technological, demographic, economic, political, social, and regulatory
environments
D) all of the above
Answer: D Level: Hard Page: 72

71. What is the name of the organization for people that specialize in competitive intelligence?
A) Society for Competitive Intelligence Professionals
B) Competitive Intelligence Quarterly
C) Society of Business Intelligence
D) Competitive Intelligence Association
Answer: A Level: Hard Page: 72

72. Business intelligence systems provide managers with which of the following?
A) information and knowledge
B) at the right time
C) in the right place
D) all of the above

73. According to this text, which of the following is not required for business intelligence systems to
have an impact on business?
A) focus on using information to deal with an important issue
B) provide the ability to customize BI information for each knowledge worker
C) build discipline and precision into the decision-making process
D) provide excellent data

74. Which of the following displays data for individual knowledge workers?
A) computer monitor
B) collaboration system
C) digital dashboard
D) PDA
Answer: C Level: Medium Page: 76

75. Which type of team works in different locations?
A) collaboration teams
B) virtual teams
C) unrelated teams
D) distributed teams

76. Which system would be used to locate a contact person from another company?
A) knowledge management system
B) collaboration system
C) workflow system
D) social network system


77. Which of the following is not a challenge to success with integrated collaboration environments?
A) People don't understand how important their knowledge is and so do not contribute it
B) People believe that knowledge is power, so they are reluctant to share their knowledge
C) People do not have time to submit knowledge
D) Many people are unable to quantify their knowledge.

78. Which of the following integrated collaboration environment providers does not include presence
awareness?
A) IBM/Lotus
B) Netware
C) Microsoft
D) Novel
Answer: B Level: Hard Page: 80

Fill in the Blank Questions

79. ________ is an approach that produces or delivers a product or service just at the time the customer
wants it.
Answer: J ust-in-time Level: Easy Page: 63

80. ___________ is a concept that encourages and facilitates collaborative processes between
members of a supply chain.
Answer: Collaborative planning, forecasting, and replenishment (CPFR) Level: Easy Page: 65

81. ____________ tracks inventory and information among business processes and across companies.
Answer: Supply chain management Level: Easy Page: 62

82. A supply chain management system automates the tracking of ____________ and information
among business processes and across companies.
Answer: Inventory Level: Easy Page: 62

83. Coordinating ____________ to insure that supplies reach the correct destination at lowest possible
cost is critical to supply chain management.
Answer: Logistics Level: Hard Page: 64

84. A(n) ____________ helps companies understand customer needs so that they can serve them
better.
Answer: customer relationship management system Level: Medium Page: 68

85. A(n) ____________ tracks all steps in the sales process.
Answer: Sales force automation system Level: Easy Page: 68

86. A(n) ____________ is used to fulfill and support customer orders.
Answer: Back office system Level: Easy Page: 71

87. A(n) ____________ serves as the primary interface for customers and the sales process.
Answer: Front office system Level: Easy Page: 71

88. ____________ is knowledge about your customers, competitors, business partners, competitive
environment, and your own internal operations.
Answer: Business intelligence Level: Easy Page: 72

89. Competitive intelligence is business intelligence focused on ____________ competition.
Answer: External Level: Easy Page: 72

90. A(n) ____________ is a logical collection of information used to create business intelligence.
Answer: Data warehouse Level: Medium Page: 73

91. A(n) ____________ is a subset of a data ____________.
Answer: Data mart, Warehouse Level: Medium Page: 73

92. A(n) ____________ is used to query information from a data warehouse.
Answer: Data-mining tool Level: Medium Page: 74

93. A(n) ____________ displays data extracted from a business intelligence system on a computer
screen in a format customized to an individual knowledge worker.
Answer: Digital dashboard Level: Hard Page: 76

94. A company must complete all steps in the ____________ to complete a business process.
Answer: Workflow Level: Easy Page: 78

95. A(n) ____________ facilitates the automation and management of business processes.
Answer: Workflow system Level: Medium Page: 78

96. Many companies, such as banks, maintain copies of your documents for many years. A(n)
____________ system could be used to track these.
Answer: Document management Level: Medium Page: 79


97. A(n) ____________ supports the capture, organization, and dissemination of knowledge.
Answer: Knowledge management system Level: Easy Page: 78

98. A(n) ____________ links you to people you know, and from there, to people your contacts know.
Answer: Social network system Level: Hard Page: 78

99. ____________ permits users to communicate in real time and share files without a central server.
Answer: Peer-to-peer collaboration software Level: Easy Page: 80

100. A(n) ____________ is a special kind of DSS to help maximize the amount of revenue an airline
generates on each flight.
Answer: Yield management system Level: Medium Page: 84

101. ____________ refers to ensuring the right quantity of parts for production or products for sale
arrive at the right time.
Answer: Fulfillment Level: Easy Page: 64

102. ____________ refers to keeping the costs of transportation as low as possible consistent with safe
and reliable delivery.
Answer: Logistics Level: Easy Page: 64

103. ____________ refers to ensuring that production lines function smoothly because high quality
parts are available as needed.
Answer: Production Level: Easy Page: 64

104. ____________ refers to ensuring that no sales are lost because sales are empty.
Answer: Revenue and profit Level: Easy Page: 64

105. ____________ refers to keeping the cost of purchased parts and products at acceptable levels.
Answer: Spend Level: Easy Page: 64

106. ____________ is a total business objective which encompasses many different aspects of a
business including software, hardware, services, support, and strategic business goals.
Answer: Customer relationship management Level: Medium Page: 68

True/False Questions: Major Business Initiatives

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Chapter 2

Major Business Initiatives

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