Information Systems: chapter 1 Quiz - Business driven technology
1. Business intelligence is not related to more effective business decisions.
FALSE
2. Which of the following is not one of Thomas Friedman's 10 forces that flattened the world?
Microsoft IPO
3. Three key resources-people, information, and information technology, (in that order of priority)-are inextricably linked. If one fails, they all fail.
TRUE
4. What did Thomas Friedman believe happened to the world because of the unplanned cascade of technological and social shifts?
The world became flat
5. The four common information sharing cultures include information-functional culture, information-sharing culture, information-inquiring culture, and information-discovery culture.
TRUE
6. Why do students need to study information technology?
Information technology is everywhere in business
7. What is a field concerned with the use of technology in managing and processing information?
Information technology
8. Which information culture allows employees across departments to search for information to better understand the future and align themselves with current trends and new directions?
Information-inquiring culture
9. Which of the following information cultures would have the greatest negative impact on Apple's business?
Information- Functional Culture
10. Which of the following represents the relationship between functional areas in a business? Interdependent
11. What are raw facts that describe the characteristics of an event? ------ C. Data
12. What is data that has been converted into meaningful and useful context?
Information
13. Which of the following is considered data? ------ A. Quantity sold
14. Which information culture can cause an organization to have a great degree of difficulty operating?
Information-functional culture
15. Which of the following statements is true?
IT enables business success and innovation
16. Which information culture allows employees across departments to use information (especially about problems and failures) to improve performance?
Information-Sharing culture
17. Functional areas of a business are independent and do not need to reply on each other for information.
FALSE
18. The customer service function has received the greatest benefit from information technology.
TRUE
19. Common departments found in an organization include accounting, management information systems, operations management, and delivery.
FALSE
20. Information is data converted into a meaningful and useful context.
TRUE
21. What is the name of a company's internal IT department?
All of the above
22. Information technology equals business success and innovation.
FALSE
23. Data are raw facts that describe the characteristics of an event.
TRUE
24. What can IT enable an organization to accomplish?
A. Reduce costs B. Improve productivity C. Generate growth
D. All of the above
25. Which of the following is considered information?
Best selling item by month
26. Which of the following represents the order of priority for the three primary organizational key?
People, information, information technologyresources?
27. What is a general name for the business function and academic discipline covering the application of people, technologies, and procedures—collectively called information systems—to solve business problems?
Management Information Systems
28. Which of the following is not a department found in most businesses?
Payroll
29. Which information culture encourages employees across departments to be open to new insights about crisis and radical changes and seek ways to create competitive advantages?
Information-Discovery
30. Almost all organizations today have an internal IT department, often called Information Technology (IT), Information Systems (IS), or Management Information Systems (MIS).
TRUE
31. 1. Information-Functional Culture = Employees use information to exercising influence or power over others.
2. Information-Sharing Culture = Employees use information to improve performance.
3. Information- Discovery culture = Employees use information to better understand current trends and new directions.
4. Information-Inquiry Culture = Employees use information to create radical change and competitive advantage.
IT Cultures
Information-Functional Culture – Employees use information as a means of exercising influence or power over others. For example, a manager in sales refuses to share information with marketing. This causes marketing to need the sales manager’s input each time a new sales strategy is developed.
• Information-Sharing Culture – Employees across departments trust each other to use information (especially about problems and failures) to improve performance.
• Information-Inquiring Culture – Employees across departments search for information to better understand the future and align themselves with current trends and new directions.
• Information-Discovery Culture – Employees across departments are open to new insights about crisis and radical changes and seek ways to create competitive advantages.
Question 1 Which of the following is Hyundai using as its generic strategy?
Broad cost leadership
Question 2 Which of the following is not one of Porter's Five Forces?
Threat of substitute buyers
Question 3 Which of the following forces is commonly reduced through the use of a loyalty program?
Buyer power
Question 4 Michael Porter, a University Professor at Harvard Business School, identified four competitive forces that can hurt potential sales. Which of the following is not one of the forces Porter identified?
Knowledgeable customers can force down prices by pitting rivals against each another
Substitute products can steal customers
Influential suppliers can drive down profits by refusing to purchase any products
New market entrants can steal potential investment capital
Question 5 If supplier power is high, how can the supplier directly influence the industry?
Charging higher prices
Limiting quality or services
Shifting costs to industry participants
All of the above
Question 6 Which part of the value chain acquires raw materials and manufactures, delivers, markets, sells, and provides after-sales services?
Primary value activities
Secondary value activities
Support value activities
None of the above
Question 7 A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material.
True
False
Question 8 Switching costs are typically used to decrease Porter's three generic strategies.
True
False
Question 9 What is an entry barrier?
A product or service feature that customers no longer expect from organizations in a particular industry and do not need to be offered by an entering organization to compete and survive
A product feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
A product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
A service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
Question 10 Which company uses environmental scanning to determine everything from how well competing products are selling to the strategic placement of its own products?
FedEx
Frito Lay
Audi
KIA
Question 11 What is the acquisition and analysis of events and trends in the environment external to an organization?
Loyalty program
Environmental scanning
First-mover advantage
Private exchange
Question 12 Which approach views an organization as a series of processes, each of which adds value to the product or service for each customer?
Value chain
Business process
Low cost strategy
First-mover advantage
Question 13 Which of the following can an organization use to evaluate the effectiveness of its business processes?
First-mover advantage strategy
Three generic strategies
Value chain
Porter's Five Forces Model
Question 14 Buyer power, supplier power, threat of substitute products or services, threat of new entrants, and rivalry among existing competitors are all included in Porter's Five Forces Model.
True
False
Question 15 An entry barrier is typically used to influence the rivalry among existing competitors.
True
False
Question 16 What is high when competition is fierce in a market and low when competition is more complacent?
Rivalry among existing competitors
Threat of substitute products or services
Supplier power
Buyer power
Question 17 All of the following are part of Porter's Three Generic Strategies, except:
Broad cost leadership
Focused strategy
Business process strategy
Broad differentiation
Question 18 What are costs that can make customers reluctant to switch to another product or service?
Rivalry among existing competitors
Threat of substitute products or services
Switching costs
Buyer power
Question 19 Which of the following represents buyer power in Porter's Five Forces Model?
Low when buyers have many choices of whom to buy from and high when their choices are few
High when buyers have many customers of whom to buy from and low when their customers are few
Assessed by analyzing the ability of buyers to directly impact the price they are willing to pay for an item
Assessed by analyzing the ability of suppliers to directly impact the amount of products that are developed
Question 20 Which of the following represents supplier power in Porter's Five Forces Model?
Low when buyers have few choices of whom to buy from and high when their choices are many
High when buyers have many choices of whom to buy from and low when their choices are few
Assessed by the suppliers' ability to directly impact the price they are charging for supplies
Assessed by the buyers' ability to directly impact the amount of product the company products
Question 21 Product differentiation occurs when a company develops unique differences in its products with the intent to influence demand. Which of the following is a reason why a company would use product differentiation?
Reduce rivalry
Increase switching costs
Reduce substitute products
All of the above
Question 22 A competitive advantage is typically temporary, unless it is a first-mover advantage.
True
False
Question 23 What is a competitive advantage?
A product or service that an organization's customers value more highly than similar offerings from a supplier
A product that an organization's customers place a lesser value on than similar offerings from a competitor
A product or service that an organization's customers place a greater value on than similar offerings from a competitor offerings from a supplier
A service that an organization's customers place a lesser value on than similar offerings from a supplier
Question 24 What does the Five Forces Model help determine the relative attractiveness of?
A company
An investment
An industry
A product
Question 25 What occurs when an organization can significantly impact its market share by being the first to market with a competitive advantage?
Private exchange
Environmental scanning
First-mover advantage
Loyalty program
Question 26 All of the following are common tools used in industry to analyze and develop competitive advantages, except:
Three Generic Strategies
Value chain analysis
Five Forces Model
Competitive analysis model
Question 27 Product differentiation occurs when a company develops completely different products than its competition is offering.
True
False
Question 28 Environmental scanning is the acquisition and analysis of events and trends in the internal environment of an organization.
True
False
Question 29 Value chain analysis is a highly useful tool in that it provides hard and fast numbers for evaluating the activities that add value to products and services.
True
False
Question 30 Which part of the value chain deals with the firm's infrastructure, human resource management, technology development, and procurement?
Primary value activities
Secondary value activities
Support value activities
None of the above
Question 31 Match the five forces of competitive advantage with the phrase the best describes the force.
1. Buyer Power = Ability to directly influence what someone will pay for something.
2. Supplier Power = Ability to directly influence what someone will be charged for something.
3. Threat of Substitute Products or Services = High when there are many alternatives to a product or service.
4. Threat of New Entrants = High when it is easy for new competitors to enter a market.
5. Rivalry Among Existing Competitors = High when competition is fierce in a market.
Info Systems: Chapter 3 - Quiz SI for Implementing Competitive Advantages
Question 1 What is a business process?
The analysis and redesign of workflow within and between enterprises
A standardized set of activities that accomplish a specific task, such as processing a customer's order
Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations
None of the above
Question 2 Customer relationship management involves managing all aspects of a customer's relationship with an organization.
True
False
Question 3 What is the purpose of business process reengineering?
To make all business processes the best-in-class
To make all employees the best-in-class
To make all business partners the best-in-class
All of the above
Question 4 Which of the following is not a valid way a CRM system can collect information?
Customer's personal computer
Order fulfillment system
Accounting system
Inventory system
Question 5 Supply chain strategy, supply chain partners, supply chain operation, and supply chain logistics are the four basic components of supply chain management.
True
False
Question 6 Supply chain management is a standardized set of activities that accomplish a specific task.
True
False
Question 7 What is CRM?
A strategy
A technology
Both a technology and a strategy
Neither a technology nor a strategy
Question 8 Progressive Insurance used CRM to revamp its insurance claims process.
True
False
Question 9 Effective and efficient supply chain management systems can enable an organization to decrease the power of its buyers.
True
False
Question 10 Which of the following defines supply chain strategy?
The schedule for production activities including testing, packaging, and preparation for delivery
The product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
The strategy for managing all the resources required to meet customer demand for all products and services
The partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
Question 11 What is enterprise resource planning?
Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations
Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability
The analysis and redesign of workflow within and between enterprises
A standardized set of activities that accomplish a specific task, such as processing a customer's order
Question 12 Enterprise resource planning systems integrate all departments and functions throughout an organization into a single IT system.
True
False
Question 13 What is the key word in ERP?
Enterprise
Resource
Planning
All of the above
Question 14 Charles Schwab recouped the cost of a multimillion-dollar system in less than two years. What type of system was it?
Supply chain management
Customer relationship management
Enterprise resource planning
All of the above
Question 15 What is business process reengineering?
The analysis and redesign of workflow within and between enterprises
A standardized set of activities that accomplish as specific task, such as processing a customer's order
Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations
None of the above
Question 16 Which of the following defines supply chain logistics?
The strategy for managing all the resources required to meet customer demand for all products and services
The partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
The schedule for production activities including testing, packaging, and preparation for delivery
The product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
Question 17 Which of the following can a customer use to contact an organization?
Telephone
Email
Web access
All of the above
Question 18 What type of system did Kaiser Permanente implement in order to improve and prolong the lives of diabetics?
Supply chain management
Customer relationship management
Enterprise resource planning
All of the above
Question 19 What does supply chain management involve?
The management of production material flows between and among stages in a supply chain to maximize total supply chain efficiency
The management of information flows between and among stages in a supply chain to maximize total supply chain costs
The management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
None of the above
Question 20 Eddie Bauer has successfully used CRM to collect information through customer's transactions and analyze the information to determine the best way to market to each individual customer.
True
False
Question 21 Which of the following defines supply chain operation?
The product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
The partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
The strategy for managing all the resources required to meet customer demand for all products and services
The schedule for production activities including testing, packaging, and preparation for delivery
Question 22 Business process reengineering is the analysis and redesign of workflow and between enterprises.
True
False
Question 23 Supply chain operaton is an approach for managing all the resources required to meet customer demand for all products and services.
True
False
Question 24 Which of the following is an organizational result from an effective and efficient supply chain management system?
Decrease the power of its buyers
Create entry barriers thereby reducing the threat of new entrants
Increase efficiencies while seeking a competitive advantage through cost leadership
All of the above
Question 25 Which company used BPR to change its industry by implementing a mobile claims process?
Saab
Charles Schwab
Progressive Insurance
Trek
Question 26 Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
True
False
Question 27 All of the following are part of the four basic components of supply chain management, except:
Supply chain partners
Supply chain logistics
Supply chain strategy
Supply chain customers
Question 28 Wal-Mart and Procter & Gamble (P&G) implemented a tremendously successful SCM system. The system linked Wal-Mart's _____________ centers directly to P&G's _____________ centers.
Manufacturing, distribution
Distribution, retail
Stores, distribution
Distribution, manufacturing
Question 29 Which of the following defines supply chain partners?
The schedule for production activities including testing, packaging, and preparation for delivery
The partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
The product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
The strategy for managing all the resources required to meet customer demand for all products and services
Question 30 A business process is the analysis and redesign of workflow within and between enterprises.
True
False
Question 31 Match the following strategic initiatives with their definition.
1. Supply Chain Management = Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
2. Customer Relationship Management = Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.
3. Business Process Reengineering = Involves the analysis and redesign of workflow within and between enterprises.
4. Enterprise Resource Planning = Involves the integration of all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.
Information Systems: Chapter 4 - Measuring the Success of Strategic Initiatives
Question 1 Efficiency focuses on the extent to which an organization is using its resources in an optimal way.
True
False
Question 2 What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?
Financial
Customer satisfaction
Conversion rates
Usability
Question 3 What are the measures called that are tied to business drivers?
IT efficiency
IT effectiveness
Key performance indicators
None of the above
Question 4 Which of the following is not a type of efficiency IT metric?
System availability
System usability
Transaction speed
Information accuracy
Question 5 According to Peter Drucker, what are managers who do things right addressing?
Efficiency
Effectiveness
Both efficiency and effectiveness
Customer metrics
Question 6 What types of metrics measure customer satisfaction?
Efficiency IT metrics
Effectiveness IT metrics
Both efficiency and effectiveness IT metrics
None of the above
Question 7 Canada is ranked first in terms of egovernment efficiency IT metrics.
True
False
Question 8 Out of the hundreds of possible CRM metrics there is a rule for how many metrics should be tracked and analyzed at any given management level. What is the rule?
Best practice is to track and analyze no more than two (plus or minus two) metrics
Best practice is to track and analyze no more than five (plus or minus two) metrics
Best practice is to track and analyze no more than seven (plus or minus two) metrics
None of the above as it depends on the type of industry
Question 9 Which term is used to describe the ease with which people perform transactions and/or find information?
Usability
Financial
Customer satisfaction
Conversion rates
Question 10 Benchmarks are baseline values the system seeks to attain.
True
False
Question 11 What type of metrics include number back order, customer order promised cycle time, and customer order actual cycle time?
ERP metrics
BPR metrics
CRM metrics
SCM metrics
Question 12 What type of metrics include number of marketing campaigns, new customer retention rates, and number of responses by marketing campaign?
CRM metrics
BPR metrics
ERP metrics
SCM metrics
Question 13 What types of security must an organization offer its customers when it provides them with the ability to purchase products over the Internet?
Encryption and SSL
SSL and HTTP
Encryption and HTTP
All of the above
Question 14 The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives. Which of the following is not one of the four perspectives in the balanced scorecard?
The customer perspective
The financial perspective
The leading perspective
The internal business process perspective
Question 15 What is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser?
Click-through
Banner ad
Interactivity
Cookie
Question 16 The balanced scorecard was developed by Drs. Robert Kaplan of the Harvard Business School and David Norton. Which systems does the balanced scorecard measure?
CRM and ERP
BPR and ERP
SCM and ERP
SCM and CRM
Question 17 Effectiveness IT metrics include throughput, speed, and availability.
True
False
Question 18 What percentage of total capital expenditures on IT are some organizations spending?
5 percent
25 percent
50 percent
75 percent
Question 19 According to Peter Drucker, what are managers who do the right things addressing?
Customer Metrics
Efficiency
Both efficiency and effectiveness
Effectiveness
Question 20 Which of the following is a type of SCM metric?
Customer order promised cycle time
Customer order actual cycle time
Inventory replenishment cycle time
All of the above
Question 21 What type of metrics include number of prospective customers, number of new customers, and number of retained customers?
CRM metrics
BPR metrics
ERP metrics
SCM metrics
Question 22 Which country ranked first in terms of egovernment efficiency?
Australia
Canada
Denmark
United States
Question 23 Which country is ranked first in terms of egovernment effectiveness?
Denmark
Canada
Australia
United States
Question 24 When considering the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate?
Lower left-hand corner
Upper left-hand corner
Upper right-hand corner
Lower right-hand corner
Question 25 What is eBay constantly benchmarking?
IT efficiency and IT effectiveness
Usability
IT efficiency
IT effectiveness
Question 26 What type of metrics measure throughput, speed, and availability?
Efficiency IT metrics
Effectiveness IT metrics
All of the above
None of the above
Question 27 Which of the following is not a typical CRM metric?
Inventory metrics
Sales metrics
Service metrics
Marketing metrics
Question 28 Break-even analysis determines the number of years to recoup the cost of an initiative based on the projected annual net cash flow.
True
False
Question 29 What is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action?
Porter's Five Forces
The balanced cycle time
Porter's Three Generic Strategies
The balanced scorecard
Question 30 Which of the following is not a type of effectiveness IT metric?
Conversion rates
Web traffic
Customer satisfaction
Financial
Question 31 Match the following website metrics with their definition.
1. Click-through = Number of people who visit a site and click on an ad
2. Conversion rate = Percentage of people who visit a site and actually buy something
3. Cost-per-thousand = Sales dollars generated per dollar of advertising
4. Page exposures = Average number of page exposures to an individual visitor
5. Total hits = Number of visits to website, even if by the same visitor
Chapter 5 Organizational Structure that support SI
Question 1 It is the responsibility of the CIO to ensure effective communications between business and IT personnel.
Question 1 It is the responsibility of the CIO to ensure effective communications between business and IT personnel.
True
False
Question 2 Which industry spends the least per employee on computer security?
Medical
Financial
Telecom
Education
Question 3 The chief technology officer is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization's information technology.
True
False
Question 4 Which issue concerns CIOs the most?
Building new applications
Technology evaluation
Enhancing customer satisfaction
Outsourcing hosting
Question 5 Broad functions of a CIO include all of the following, except:
Ensuring that the strategic vision of IT is in line with the strategic vision of the organization
Building and maintaining strong executive relationships
Building and maintaining strong customer processes
Ensuring the delivery of all IT projects, on time and within budget
Question 6 Which of the following activities does a CIO perform?
Oversees all uses of information technology
Ensures the strategic alignment of IT with business goals
Ensures the strategic alignment of IT with business objectives
All of the above
Question 7 The majority of organizations spend over 10% of their IT budget on information security.
True
False
Question 8 Who is responsible for ensuring the ethical and legal use of information within an organization?
CTO
CKO
CSO
CPO
Question 9 Which of the following is the least important skill for an IT executive to possess?
Technical
Negotiation
Communication
Strategic thinking
Question 10 The most important skills for an IT executives are technical knowledge and proficiency.
True
False
Question 11 Job titles, roles, and responsibilities do not differ from organization to organization.
True
False
Question 12 Who is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of an organization's information technology?
CTO
CIO
CPO
CSO
Question 13 Who is responsible for ensuring the security of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses?
CTO
CIO
CPO
CSO
Question 14 Counterfeit software is manufactured to look like the real thing and sold as such.
True
False
Question 15 Ethics are the laws that guide our behavior toward other people.
True
False
Question 16 What first ever national appointment was made by President Barack Obama?
National Chief Security Officer
National Chief Privacy Officer
National Chief Technology Officer
All of the above
Question 17 What gives, in certain situations, a person the legal right to use copyrighted material?
Pirated software
Intellectual property
Fair use doctrine
Copyright
Question 18 The old business axiom "time is money" needs to be updated to more accurately reflect the crucial interdependence between IT and business processes. What is the recommended new phrase?
Uptime is money
Downtime is impossible
Downtime is a bad business process
Uptime is a good business process
Question 19 Which of the following is one of the four categories of costs associated with downtime?
Financial performance
Revenue
Damaged reputation
All of the above
Question 20 Downtime usually only has a short-term cost.
True
False
Question 21 What is intangible creative work that is embodied in physical form?
Fair use doctrine
Copyright
Intellectual property
Pirated software
Question 22 The chief security officer is responsible for ensuring the ethical and legal use of information within an organization.
True
False
Question 23 According to Infonetics research, what is the leading cause of downtime?
Stack overflow
Power outage
Tornadoes
Software failure followed by human error
Question 24 What is the legal protection afforded an expression of an idea?
Fair use doctrine
Intellectual property
Pirated software
Copyright
Question 25 Communication between Business and IT personnel is generally considered to be good.
True
False
Question 26 One of the main ingredients in trust is privacy.
True
False
Question 27 What is a broad term encompassing the protection of information from accidental or intentional misuse by persons inside or outside an organization?
Copyright
Privacy
Information security
Ethics
Question 28 Privacy is the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent.
True
False
Question 29 What are the principles and standards that guide our behavior toward other people?
Intellectual property
Ethics
Copyright
Pirated software
Question 30 Who is responsible for collecting, maintaining, and distributing the organizational knowledge?
CTO
CSO
CKO
CPO
Question 31 Match the following IT excutive positions with their definition.
1. Chief Information Officer (CIO) = Responsible for overssing all IT and ensuring the strategic alignment of IT with business
2. Chief Technology Officer (CTO) = Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT
3. Chief Security Officer (CSO) = Responsible for ensuring the security of IT systems
4. Chief Privacy Officer (CPO) = Responsible for ensuring the ethical and legal use of information
5. Chief Knowledge Officer (CKO) = Responsible for collecting, maintaining, and distributing the organization's knowledge
Business Plug-In- Business Bacis1
Question 1 What is an asset?
Anything owned that has value or earning power
A distribution of earnings to shareholders
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
Refers to the costs incurred in operating and maintaining a business
Question 2 What occurs when businesses sell products or services for more than they cost to produce?
Expense
Loss
Revenue
Profit
Question 3 What is the function of the marketing department?
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
Includes the policies, plans, and procedures for the effective management of employees
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
Question 4 What involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP?
Financial accounting
Managerial accounting
Bookkeeping
Accounting
Question 5 What reports operating results (revenues minus expenses) for a given time period ending at a specified date?
Income statement
Balance sheet
Statement of cash flows
Statement of owner's equity
Question 6 What is the function of the sales department?
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities
Includes the policies, plans, and procedures for the effective management of employees
The process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company's products
Question 7 What describes the basic transaction data such as its date, purpose, and amount and includes cash receipts, canceled checks, invoices, customer refunds, employee time sheet, etc?
Source document
Financial statement
Balance sheet
Transaction
Question 8 Partnership agreements typically include all of the following, except:
Expectations for sharing profits and losses
Partner's salary requirements
Shareholder's expectations for a successful business
Methods for conflict resolution
Question 9 What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership?
Limited liability Corporation
Limited partnership
Limited proprietorship
Limited shareholder
Question 10 What is the rate at which the net present value of an investment equals zero?
Break-even analysis
Return on investment (ROI)
Cash flow analysis
Internal rate of return (IRR)
Question 11 Break-even analysis is the point at which revenues equal costs.
True
False
Question 12 What refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service?
Profit
Expense
Revenue
Loss
Question 13 What is calculated by dividing the firm's sales by the total market sales for the entire industry?
Break-even point
Market share
Income statement
IRR
Question 14 A net gain occurs when businesses sell products or services for less then they cost to produce.
True
False
Question 15 Which of the following represents geographic segmentation?
Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty
Based on variables such as age, gender, ethnicity, education, occupation, income, and family status
Based on variables such as values, attitudes, and lifestyles
Based on regional variables such as region, climate, population density, and population growth rate
Question 16 Which of the following is not one of the four phases in the product life cycle?
Decline
Growth
Introduction
Place
Question 17 What involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities?
Managerial accounting
Bookkeeping
Accounting
Financial accounting
Question 18 What is a dividend?
Anything owned that has value or earning power
Refers to the amount earned resulting from the delivery or manufacture of a product or from the rendering of a service
A distribution of earnings to shareholders
Refer to the costs incurred in operating and maintaining a business
Question 19 What analyzes the transactional information of the business so the owners and investors can make sound economic decisions?
Financial Accounting
Managerial Accounting
Bookkeeping
Accounting
Question 20 For profit corporations primarily focus on making money and all profits and losses are shared by the business owners.
True
False
Question 21 Which of the following financial statements gives an accounting picture of property owned by a company and of claims against the property on a specific date?
Balance sheet
Income statement
Statement of cash flows
Statement of owner's equity
Question 22 What is a means to conduct a periodic check on the company's financial health?
Return on investment (ROI)
Break-even analysis
Internal rate of return (IRR)
Cash flow analysis
Question 23 Which of the following represents psychographic segmentation?
Based on variables such as age, gender, ethnicity, education, occupation, income, and family status
Based on variables such as values, attitudes, and lifestyles
Based on regional variables such as region, climate, population density, and population growth rate
Based on variables such as usage rate, usage patterns, price sensitivity, and brand loyalty
Question 24 What is the division of a market into similar groups of customers?
Market communications
Market mix
Market management
Market segmentation
Question 25 Human resources management includes the policies, plans, and procedures for the effective management of employees ('human resources').
True
False
Question 26 Which of the following is not a reason to increase market share?
Increased bargaining power
Nearing production capacity
Reputation
Economies of scale
Question 27 A loss occurs when businesses sell products or services for less then they cost to produce.
True
False
Question 28 Introduction, growth, maturity, and decline represent the product life cycle.
True
False
Question 29 What tracks and communicates changes in the shareholder's earnings?
Income statement
Balance sheet
Statement of owner's equity
Statement of cash flows
Question 30 What is operations management?
The management of systems or processes that convert or transforms resources into goods and services
The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization
A field concerned with the use of technology in managing and processing information
The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
Question 31 Match the following organizational forms with their definition.
1. Sole Proprietorship = A business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business
2. Partnership = A legal structure that allows for more than one owner but each owner is personally responsible for all the profits and losses of the business
3. Limited Partnership = An owner's legal liability in the business is limited to the amount of his or her investment
4. Corporation = An artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations
5. Limited Liability Corporation = A hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership.
