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Chapter 3 EXAM TEST BANK.docx

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Ryerson University
Information Technology Management
ITM 100
Lin Ying Dong

Exam Name MULTIPLE CHOICEChoose the one alternative that best completes the statement or answers the question1 The primary activities of a firm include 1 A inbound logistics operations outbound logistics sales and marketing and serviceB procurement inbound logistics operations technology and outbound logisticsC procurement operations technology sales and marketing and servicesD inbound logistics operations outbound logistics technology and service2 A core competency 2 A is one of Porters competitive forcesB defines mass customizationC is an activity for which a firm is a worldclass leader D is another way to describe benchmarking3 The more any given resource is applied to production the lower the marginal gain in output until a point is reached where the additional inputs produce no additional output This is referred to as 3 A the point of no return B network inelasticityC supply and demand D the law of diminishing returns4 The emergence for Amazoncom of new competitors in the sphere of online shopping illustrates what disadvantage posed by the use of information systems to achieve competitive advantage 4 A The Internet enables the production or sales of substitute products or servicesB Internet technologies are universal and therefore usable by all companiesC Internet shopping produces cost transparencyD Ecommerce is affected by the law of diminishing returns5 All of the following are major features of organizations that impact the use of information systems EXCEPT for5 A agency costs B business processesC goals D environments6is another term for these loosely coupled but interdependent networks of suppliers distributors outsourcing firms transportation service firms and technology manufacturers 6 A Core competencies B SynergyC Value chain D Business ecosystem 7 A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as abureaucracy 7 A divisionalized B multidivisional C machine D professional8 The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as 8 A agency costs B procurementC switching costs D transaction costs9 WalMarts continuous replenishment system allows it to 9 A provide an efficient customer response systemB strengthen customer intimacyC provide mass customizationD achieve economy of scale10 According to thedefinition of organizations an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment 10 A macroeconomic B microeconomic C behavioural D sociotechnical11Marie has developed a unique patented process to manufacture metal picture framesThis unique process allows Marie to use less raw materials and less labour than her competitorsMarie is utilizing which source of competitive advantage 11 A product differentiationB strengthening customer and supplier intimacy C lowcost leadershipD focus on market niche12 The secondary activities of a firm include 12 A organization infrastructure human resources technology and procurementB inbound logistics organization infrastructure outbound logistics technology and procurementC inbound logistics technology outbound logistics sales and marketing and serviceD organization infrastructure human resources sales and marketing and technology13 An information system can enable a company to focus on a market niche through 13 A complex trend forecasting B intensive customer data analysisC intensive product trend analysis D tailoring products to the client14 The research on IT and business performance has found that the more successfully a firm can align information technology with itsthe more profitable it will be 14 A value web B competitive forcesC business goals D value chain15 Business processes are collections of 15 A routines B formalized and documented practicesC rights and privileges D informal practices and behaviours16 To what competitive force did the printed encyclopedia industry succumb 16 A low cost of entryB positioning and rivalry among competitorsC customers bargaining power
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