QUESTION 1

A payroll system would need to do which of the following to correctly fit the definition of a system?

		Capture data to be processed
		Apply calculations to captured data through appropriate calculations for gross pay, deductions and net pay
		Prepare output documents for dissemination
		All of the choices are correct

2 points

QUESTION 2

A serious problem of competitive advantage is that:

		It normally doesn't last very long and it isn't sustainable over the long term
		Competitors figure out how it was done and do the same thing
		A competitive advantages can become a competitive necessity
		All of the choices are correct.

2 points

QUESTION 3

An information system that supports the business functions of accounting, finance, human resource management, marketing, or operations would be classified as a(n) _______________ system.

		functional business
		executive information
		management information
		decision support

2 points

QUESTION 4

By buying stock in bulk, Wal-Mart is able to sell to their customers at a more competitive price. This is an example of which strategy?

		Cost leadership strategy
		Differentiation strategy
		Innovation strategy
		Growth strategy

2 points

QUESTION 5

Integrated packages:

		Are much more powerful that software suites.
		Are usually considered bloatware.
		Usually contain features that have been left out of software suites.
		Combine some of the functions of several programs into one software package.

2 points

QUESTION 6

The term competitive advantage suggests a single condition where:

		The firm is the leader in its industry.
		The firm is making more profits than it did one year previously.
		A firm sustains profits that exceed the average for its industry.
		None of the choices is correct.

2 points

QUESTION 7

Wal-Mart demanding lower prices from their vendors is an example of:

		Customer bargaining power.
		Supplier bargaining power.
		Threat of substitutes.
		None of the choices is correct.

2 points

QUESTION 8

Which of the following is not an example of the threat of substitutes?

		When airline prices get too high, people drive their cars for their vacations.
		When the price of steak gets too high, people purchase hamburger of chicken.
		When hotel prices get too high, people stop taking vacations
		All of the choices are correct.

2 points

QUESTION 9

A grocery store checkout cash register with a connection to a network is an example of a(n) ________.

		intelligent system
		decision support system
		transaction processing system
		electronic commerce system
		functional area information system

2 points

QUESTION 10

All of the following are competitive forces from Porter's Competitive Forces model EXCEPT:

		substitute products.
		potential new entrants into the market.
		online sellers.
		bargaining power of suppliers.

2 points

QUESTION 11

The value chain model

		sees the supply chain as the primary activity for adding value.
		helps a firm identify points at which information technology can most effectively enhance its competitive position.
		categorizes four basic strategies a firm can use to enhance its value chain.
		categorizes five related advantages for adding value to a firm's products or services.

2 points

QUESTION 12

Which of the following industries has a low barrier to entry?

		automotive
		restaurant
		computer chip
		airline

2 points

QUESTION 13

Creating value means "make the customer unsatisfy with what they pay"

True

False