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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Companies today are successful when they combine the power of the information age
with traditional business methods.
⊚ true
⊚ false
2) Diagnostic analytics is information collected from multiple sources such as suppliers,

customers, competitors, partners, and industries that analyzes patterns, trends, and relationships
for strategic decision making.
⊚ true
⊚ false
3) Business intelligence is information collected from multiple sources such as suppliers,

customers, competitors, partners, and industries that analyzes patterns, trends, and relationships
for strategic decision making.
⊚ true
⊚ false
4) The information age is a time infinite quantities of facts are widely available to anyone
who can use a computer.
⊚ true
⊚ false
5) Top managers use bits to define the future of the business, analyzing markets, industries
and economies to determine the strategic direction the company must follow to remain
unprofitable.
⊚ true
⊚ false
6) A variable is a business intelligence characteristic that stands for a value that cannot
change over time.
⊚ true
⊚ false
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7) A fact is the confirmation or validation of an event or object. In the past, people primarily
learned facts from books.
⊚ true
⊚ false
8) Zappos primary business focus is to sell books and competitive intelligence.
⊚ true
⊚ false
9) Order date, amount sold, and customer number are all forms of data.
⊚ true
⊚ false
10) Choosing not to fire a sales representative who is underperforming while knowing that
the representative is experiencing family problems is a form of knowledge.
⊚ true
⊚ false
11) Information is data converted into a meaningful and useful context. The truth about
information is that its value is only as good as the people who use it. People using the same
information can make different decisions depending on how they interpret or analyze the
information.
⊚ true
⊚ false
12) The Internet of Things (IoT) is a world where interconnected, Internet-enabled devices or
“things” can collect and share data without human intervention.
⊚ true
⊚ false
13) Machine-to-machine (M2M) refers to devices that connect directly to other devices.
⊚ true
⊚ false
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14) The Internet of Things (IoT) refers to devices that connect directly to other devices.
⊚ true
⊚ false
15) Predictive analytics extracts information from data and uses it to predict future trends and
identify behavioral patterns.
⊚ true
⊚ false
16) Predictive analytics is a world where interconnected, Internet-enabled devices or “things”

can collect and share data without human intervention.
⊚ true
⊚ false
17) Top managers use predictive analytics to define the future of the business, analyzing
markets, industries, and economies to determine the strategic direction the company must follow
to remain profitable. Tony will set the strategic direction for his firm, which might include
introducing new flavors of potato chips or sports drinks as new product lines or schools and
hospitals as new market segments.
⊚ true
⊚ false
18) A data analyst collects, queries, and consumers organizational data to uncover patterns
and provide insights for strategic business decision making.
⊚ true
⊚ false
19) Knowledge workers are individuals valued for their ability to mitigate risk and implement
critical human resource and accounting rules and regulations.
⊚ true
⊚ false
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20) Using only data and information to make decisions and solve problems is the key to
finding success in business. These are also the only core drivers of the information age and the
building blocks of business systems.
⊚ true
⊚ false
21) Big data is a collection of large complex datasets, which cannot be analyzed using
traditional database methods and tools.
⊚ true
⊚ false
22) The four common characteristics of big data include variety, veracity, volume, velocity.
⊚ true
⊚ false
23) Variety in big data includes different forms of structured and unstructured data.
⊚ true
⊚ false
24) Veracity in big data includes the uncertainty of data, including biases, noise, and
abnormalities.
⊚ true
⊚ false
25) Volume in big data includes the scale of data.
⊚ true
⊚ false
26) Velocity in big data includes the analysis of streaming data as it travels around the
Internet.
⊚ true
⊚ false
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27) Velocity in big data includes different forms of structured and unstructured data.
⊚ true
⊚ false
28) Volume in big data includes the uncertainty of data, including biases, noise, and
abnormalities.
⊚ true
⊚ false
29) Big data is a view of data at a moment in time.
⊚ true
⊚ false
30) A snapshot is a view of data at a particular moment in time.
⊚ true
⊚ false
31) A static report can include updating daily stock market prices or the calculation of
available inventory.
⊚ true
⊚ false
32) A dynamic report can include updating daily stock market prices or the calculation of
available inventory.
⊚ true
⊚ false
33) Business analytics is the scientific process of transforming data into insight for making
better decisions.
⊚ true
⊚ false
34) Descriptive analytics describes past performance and history.
⊚ true
⊚ false
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35) Predictive analytics extracts information from data to predict future trends and identify
behavioral patterns.
⊚ true
⊚ false
36) Prescriptive analytics creates models indicating the best decision to make or course of
action to take.
⊚ true
⊚ false
37) Knowledge assets, also called intellectual capital, are the human, structural, and recorded
resources available to the organization.
⊚ true
⊚ false
38) Knowledge assets reside within the minds of members, customers, and colleagues and
include physical structures and recorded media.
⊚ true
⊚ false
39) Knowledge facilitators help harness the wealth of knowledge in the organization.
⊚ true
⊚ false
40) Descriptive analytics is the scientific process of transforming data into insight for making
better decisions.
⊚ true
⊚ false
41) Diagnostic analytics describes past performance and history.
⊚ true
⊚ false
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42) Prescriptive analytics extracts information from data to predict future trends and identify
behavioral patterns.
⊚ true
⊚ false
43) Analytics, also called intellectual capital, are the human, structural, and recorded
resources available to the organization.
⊚ true
⊚ false
44) Knowledge facilitators reside within the minds of members, customers, and colleagues
and include physical structures and recorded media.
⊚ true
⊚ false
45) Structured data extracts information from data and uses it to predict future trends and
⊚ true
⊚ false
46) Unstructured data extracts information from data and uses it to predict future trends and
⊚ true
⊚ false
47) Structured data is data that has a defined length, type, and format and includes numbers,
dates, or strings such as Customer Address.
⊚ true
⊚ false
48) Unstructured data is data that is not defined and does not follow a specified format and is
typically free-form text such as emails, Twitter tweets, and text messages.
⊚ true
⊚ false
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49) Unstructured data is data that has a defined length, type, and format and includes
numbers, dates, or strings such as Customer Address.
⊚ true
⊚ false
50) Structured data is data that is not defined and does not follow a specified format and is
typically free-form text such as emails, Twitter tweets, and text messages.
⊚ true
⊚ false
51) Unstructured data extracts information from data and uses it to predict future trends and
⊚ true
⊚ false
52) A business unit is a segment of a company representing a specific business function.
⊚ true
⊚ false
53) The terms department, functional area, and business unit are used interchangeably.
⊚ true
⊚ false
54) Companies update business strategies continuously as internal and external environments
change.
⊚ true
⊚ false
55) The finance department performs the function of selling goods or services.
⊚ true
⊚ false
56) The marketing department supports sales by planning, pricing, and promoting goods or
services.
⊚ true
⊚ false
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57) The operations management department manages the process of converting or

transforming resources into goods or services.
⊚ true
⊚ false
58) The accounting and finance departments primarily use monetary data.
⊚ true
⊚ false
59) The sales and marketing departments primarily use monetary data.
⊚ true
⊚ false
60) A data silo occurs when one business unit is able to freely communicate with other
business units from silo to silo.
⊚ true
⊚ false
61) A data silo occurs when one business unit is unable to freely communicate with other
business units, making it difficult or impossible for organizations to work cross-functionally.
⊚ true
⊚ false
62) A data silo is beneficial because it helps keep all the data for a company organized in one
place.
⊚ true
⊚ false
63) For an organization to succeed, every department or functional area must work
independently to be most effective.
⊚ true
⊚ false
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64) Successful companies today operate cross-functionally, integrating the operations of all
departments.
⊚ true
⊚ false
65) MIS is a tool that is most valuable when it leverages the talents of people who know how
to use and manage it effectively.
⊚ true
⊚ false
66) The chief technology officer is responsible for ensuring the security of business systems
and developing strategies and safeguards against attacks from hackers and viruses.
⊚ true
⊚ false
67) The chief security officer is responsible for ensuring the security of business systems and
developing strategies and safeguards against attacks from hackers and viruses.
⊚ true
⊚ false
68) The chief data officer is responsible for ensuring the speed, accuracy, availability, and
reliability for MIS.
⊚ true
⊚ false
69) The chief privacy officer is responsible for ensuring the ethical and legal use of
information within a company.
⊚ true
⊚ false
70) The business decisions made by the marketing department include promotional data,
sales data, and advertising data.
⊚ true
⊚ false
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71) The business decisions made by the human resources department include employee data,
promotion data, and vacation data.
⊚ true
⊚ false
72) The business decisions made by the finance department include investment data,
monetary data, and reporting data.
⊚ true
⊚ false
73) The business decisions made by the accounting department include transactional data,
purchasing data, payroll data and tax data.
⊚ true
⊚ false
74) The business decisions made by the sales department include potential customer data,
sales report data, commission data, and customer support data.
⊚ true
⊚ false
75) The business decisions made by the operations management department include
manufacturing data, distribution data, and production data.
⊚ true
⊚ false
76) The business decisions made by the finance department include promotion data, sales
data, and advertising data.
⊚ true
⊚ false
77) The business decisions made by the accounting department include employee data,
promotion data, and vacation data.
⊚ true
⊚ false
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78) The business decisions made by the human resources department include investment
data, monetary data, and reporting data.
⊚ true
⊚ false
79) The business decisions made by the marketing department include transactional data,
purchasing data, payroll data and tax data.
⊚ true
⊚ false
80) The business decisions made by the human resources department include potential
customer data, sales report data, commission data, and customer support data.
⊚ true
⊚ false
81) The business decisions made by the accounting department include manufacturing data,
distribution data, and production data.
⊚ true
⊚ false
82) The chief data officer is responsible for overseeing all uses of MIS and ensuring that MIS
strategically aligns with business goals and objectives.
⊚ true
⊚ false
83) The chief knowledge officer is responsible for collecting, maintaining, and distributing
company knowledge.
⊚ true
⊚ false
84) Most organizations maintain positions such as chief executive officer (CEO), chief
financial officer (CFO), and chief operations officer (COO) at the strategic level.
⊚ true
⊚ false
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85) The chief knowledge officer is responsible for overseeing all uses of MIS and ensuring
that MIS strategically aligns with business goals and objectives.
⊚ true
⊚ false
86) The chief knowledge officer is responsible for collecting, maintaining, and distributing
company knowledge.
⊚ true
⊚ false
87) The chief data officer (CDO) is responsible for determining the types of information the
enterprise will capture, retain, analyze, and share.
⊚ true
⊚ false
88) The chief data officer (CDO) is responsible for ensuring the throughput, speed, accuracy,
availability, and reliability of an organization’s information technology.
⊚ true
⊚ false
89) The chief technology officer (CTO) is responsible for ensuring the security of MIS
systems and developing strategies and MIS safeguards against attacks from hackers and viruses.
⊚ true
⊚ false
90) The chief privacy officer (CPO) is responsible for ensuring the ethical and legal use of
information within an organization.
⊚ true
⊚ false
91) The chief intellectual property officer (CIPO) is responsible for collecting, maintaining,
and distributing the organization’s knowledge.
⊚ true
⊚ false
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92) The chief security officer (CSO) is responsible for ensuring the security of MIS systems
and developing strategies and MIS safeguards against attacks from hackers and viruses.
⊚ true
⊚ false
93) According to Fast Company magazine, a few executive levels you might see created over
the next decade include chief intellectual property officer, chief automation officer, and chief
user experience officer.
⊚ true
⊚ false
94) The difference between existing MIS workplace knowledge and the knowledge required
to fulfill the business goals and strategies is called a data analyst certification.
⊚ true
⊚ false
95) Most chief technology officers do not possess a well-rounded knowledge of all aspects of
MIS, such as hardware, software, and telecommunications.
⊚ true
⊚ false
96) Many chief privacy officers (CPOs) are lawyers by training, enabling them to understand
the often-complex legal issues surrounding the use of information.
⊚ true
⊚ false
97) MIS skills gap is the difference between existing MIS workplace knowledge and the
knowledge required to fulfill the business goals and strategies.
⊚ true
⊚ false
98) In many instances, an MIS job will remain unfilled for an extended period when an
employer needs to hire someone who has a very specific set of skills. In recruiting lingo, such
candidates are referred to as purple turtles.
⊚ true
⊚ false
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99) Goods are material items or products that customers will buy to satisfy a want or need.
⊚ true
⊚ false
100) Waiting tables, teaching, and cutting hair are all examples of services that people pay for
to fulfill their needs.
⊚ true
⊚ false
101) An overview of systems thinking includes input, process, output, and finances.
⊚ true
⊚ false
102) A stakeholder is a person or group that has an interest or concern in an organization.

Stakeholder’s drive business strategies, and depending on the stakeholder’s perspective, the
business strategy can change. It is not uncommon to find stakeholder’s business strategies have
conflicting interests such as investors looking to increase profits by eliminating employee jobs.
⊚ true
⊚ false
103) Cars, groceries, and clothing are all examples of goods.
⊚ true
⊚ false
104) Production is the process by which a business takes raw materials and processes them or
converts them into a finished product for its goods or services.
⊚ true
⊚ false
105) Productivity is the rate at which goods and services are produced based upon total output
given total inputs.
⊚ true
⊚ false
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106) Lettuce, tomatoes, patty, bun, and ketchup are included in the output of making a
hamburger.
⊚ true
⊚ false
107) Cooking a patty and putting the ingredients together are included in the process of
making a hamburger.
⊚ true
⊚ false
108) Bread, cheese, and butter are included in the process of making a grilled cheese
sandwich.
⊚ true
⊚ false
109) A grilled cheese sandwich is considered the final output of a making-a-sandwich process.
⊚ true
⊚ false
110) If a business could produce the same hamburger with less expensive inputs, it would
probably see a decrease in profits.
⊚ true
⊚ false
111) If a business could produce more hamburgers with the same inputs, it would see a rise in
productivity and possibly an increase in profits.
⊚ true
⊚ false
112) A leadership plan that achieves a specific set of goals or objectives is a business strategy.
⊚ true
⊚ false
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113) To combat business challenges, leaders communicate and execute business strategies; the
word strategy comes from the Greek stratus for army and ago for leading.
⊚ true
⊚ false
114) Businesses rarely need to update business strategies as the business environment remains
relatively stable.
⊚ true
⊚ false
115) Attracting new customers, decreasing costs, and entering new markets are all examples of
successful business strategies.
⊚ true
⊚ false
116) Decreasing customer loyalty, increasing costs, and decreasing sales are all examples of
business strategies.
⊚ true
⊚ false
117) A first-mover advantage is the process of gathering information about the competitive
environment, including competitors’ plans, activities, and products, to improve a company’s
ability to succeed.
⊚ true
⊚ false
118) FedEx created a first-mover advantage by developing its customer self-service software,
which allows people to request parcel pickups, print mailing slips, and track parcels online.
⊚ true
⊚ false
119) A SWOT analysis will evaluate potential internal strengths, internal weaknesses, and
external opportunities.
⊚ true
⊚ false
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120) A SWOT analysis evaluates an organization’s strengths, weaknesses, opportunities, and

threats to identify significant influences that work for or against business strategies.
⊚ true
⊚ false
121) A SWOT analysis evaluates an organization’s strengths, weaknesses, objectives, and

threats.
⊚ true
⊚ false
122) A SWOT analysis evaluates an organization’s strengths, worries, opportunities, and

technologies to identify significant influences that work for or against business strategies.
⊚ true
⊚ false
123) In a SWOT analysis, strengths and weaknesses originate inside an organization, or

internally. Opportunities and threats originate outside an organization, or externally, and cannot
always be anticipated or controlled.
⊚ true
⊚ false
124) In a SWOT analysis, potential internal strengths are helpful when they identify all key
strengths associated with the competitive advantage, including cost advantages, new and/or
innovative services, special expertise and/or experience, proven market leader, improved
marketing campaigns, and so on.
⊚ true
⊚ false
125) In a SWOT analysis, potential internal weaknesses are harmful when they identify all key
areas that require improvement. Weaknesses focus on the absence of certain strengths, including
absence of an Internet marketing plan, damaged reputation, problem areas for service, outdated
technology, employee issues, and so on.
⊚ true
⊚ false
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126) In a SWOT analysis, potential external opportunities are helpful when they identify all
significant trends along with how the organization can benefit from each, including new markets,
additional customer groups, legal changes, innovative technologies, population changes,
competitor issues, and so on.
⊚ true
⊚ false
127) In a SWOT analysis, potential external threats are harmful when they identify all threats
or risks detrimental to your organization, including new market entrants, substitute products,
employee turnover, differentiating products, shrinking markets, adverse changes in regulations,
economic shifts, and so on.
⊚ true
⊚ false
128) Competitive advantages provide the same product or service either at a lower price or
with additional value that can fetch premium prices.
⊚ true
⊚ false
129) Mark Peterson identified Porter’s Five Forces Model, which analyzes the competitive
forces within a business environment.
⊚ true
⊚ false
130) Porter’s Five Forces Model outlines the process for a sales strategy.
⊚ true
⊚ false
131) With the Five Forces Model, companies should watch the forces in the market. If the
forces are strong, competition generally increases, and if the forces are weak, competition
typically decreases.
⊚ true
⊚ false
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132) There are many challenges to changing doctors, including transferring medical records
and losing the doctor-patient relationship along with the doctor’s knowledge of the patient’s
history. Changing doctors provides a great example of switching costs.
⊚ true
⊚ false
133) Supplier power is one of Porter’s five forces, and it measures the suppliers’ ability to
influence the prices they charge for supplies (including materials, labor, and services).
⊚ true
⊚ false
134) Polaroid had a unique competitive advantage for many years until it forgot to observe
competitive intelligence. The firm went bankrupt when people began taking digital pictures.
Polaroid provides a great example of Porter’s supplier power.
⊚ true
⊚ false
135) Product differentiation occurs when a company develops unique differences in its
products or services with the intent to influence demand.
⊚ true
⊚ false
136) Buyer power is the ability of buyers to affect the price they must pay for an item.
⊚ true
⊚ false
137) Rivalry among existing competitors refers to the ability of buyers to affect the price they
must pay for an item.
⊚ true
⊚ false
138) The threat of substitute products or services refers to the power of customers to purchase
alternatives.
⊚ true
⊚ false
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139) The threat of substitute products or services refers to the power of competitors to enter a
new market.
⊚ true
⊚ false
140) Tiffany & Company competes in the marketplace by offering high-cost, custom jewelry.
Tiffany & Company is following a broad market and cost leadership strategy.
⊚ true
⊚ false
141) Porter has identified three generic business strategies, including focused, broad cost
leadership, and switching strategy.
⊚ true
⊚ false
142) According to Porter’s three generic strategies, Walmart is following a business strategy
that focuses on broad market and low cost.
⊚ true
⊚ false
143) According to Porter, it is recommended to adopt only one of the three generic strategies.
⊚ true
⊚ false
144) Buyer power is included as one of Porter’s three generic strategies.
⊚ true
⊚ false
145) Value chain analysis views a firm as a series of business processes that each adds value to
the product or service.
⊚ true
⊚ false
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146) A standardized set of activities that accomplish a specific task is called a supply chain
component.
⊚ true
⊚ false
147) The value chain will group a company’s activities into two categories: primary value
activities and support value activities.
⊚ true
⊚ false
148) A digital value chain digitizes work across primary and supporting activities. It allows
primary activities to connect digitally to help speed up the transition from sales to manufacturing
in an organization.
⊚ true
⊚ false
149) A digital data silo digitizes work across primary and supporting activities.
⊚ true
⊚ false
150) A business process is a standardized set of activities that accomplish a specific task, such
as processing a customer’s order.
⊚ true
⊚ false
151) A primary value activity is a standardized set of activities that accomplish a specific task,
such as processing a customer’s order.
⊚ true
⊚ false
152) Inbound logistics and operations are part of the primary value activities.
⊚ true
⊚ false
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153) Inbound logistics and operations are part of the support value activities.
⊚ true
⊚ false
154) Firm infrastructure and human resource management are part of the primary value
activities.
⊚ true
⊚ false
155) Firm infrastructure and human resource management are part of the support value
activities.
⊚ true
⊚ false
MULTIPLE CHOICE
156) Which of the following is NOT considered a core driver of the information age?
A) information
B) business intelligence
C) competitive facts
D) data
157) Which of the following is NOT considered a core driver of the information age?
A) information
B) business intelligence
C) knowledge
D) variables
158) Which of the following is considered a core driver of the information age?
A) fact
B) goods
C) competitive intelligence
D) data
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159) Which of the following is considered a core driver of the information age?
A) business analytics
B) unstructured data
C) analytics
D) knowledge
160) Why do students need to study management information systems?
A) Management information systems are everywhere in business.

B) Management information systems are rarely discussed in business.
C) Management information systems are rarely used in organizations.
D) Management information systems are found in only a few businesses.
161) What is the confirmation or validation of an event or object?
A) fact
B) data
C) data scientist
162) The age we live in has infinite quantities of facts that are widely available to anyone who
can use a computer. What is this age called?
A) data age
B) information age
C) business intelligence age
163) Which of the following companies used technology to revamp the business process of
selling books?
A) Netflix
B) Dell
C) Zappos
D) Amazon
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renting videos?
A) Netflix
B) Dell
C) Zappos
D) Amazon
selling shoes?
A) Netflix
B) Dell
C) Zappos
D) Amazon
166) What is data?
A) raw facts that describe the characteristics of an event or object

B) data converted into a meaningful and useful context
C) information collected from multiple sources that analyzes patterns, trends, and
relationships for strategic decision making
D) skills, experience, and expertise, coupled with information and intelligence, which
create a person’s intellectual resources
167) What is information?

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168) What is business intelligence?

169) What is knowledge?

170) Which of the following is considered information?
A) quantity sold
B) date sold
C) best-selling item by month
D) product sold
171) Which of the following is considered data?
A) quantity sold
B) best customer by month
C) best-selling item by month
D) worst-selling item by month
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172) Cheryl Steffan is the operations manager for Nature’s Bread Company, which specializes
in providing natural products for health-conscious individuals. Cheryl is responsible for
compiling, analyzing, and evaluating daily sales numbers to determine the company’s
profitability and forecast production for the next day. Which of the following is an example of a
piece of data Cheryl would be using to successfully perform her job?
A) Craig Newmark is customer number 15467.

B) compare the costs of supplies, including energy, over the last five years to determine
the best-selling product by month
C) best-selling product by day
D) best-selling product changes when Tony the best baker is working
profitability and forecast production for the next day. Which of the following is an example of
the type of information Cheryl would be using to successfully perform her job?

B) Flour Power is supplier number 8745643.
profitability and forecast production for the next day. Which of the following is an example of
knowledge that Cheryl would be using to successfully perform her job?

B) Flour Power is supplier number 8745643.
D) best-selling product changes when Tony the best baker is working
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175) Data is useful for understanding individual sales, but to gain deeper insight into a
business, data needs to be turned into information. Which of the following offers an example of
turning data into information?
A) Who are my best customers?

B) What is my best-selling product?
C) What is my worst-selling product?
D) All answers provide an example of turning data into information.
176) Which of the following provides an example of information?
A) Who is customer number 12345XX?

B) What is product number 12345XX?
C) What customer number is Bob Smith?
D) What is my worst-selling product?
177) Which of the following provides an example of data?
A) Who are my best customers?

B) What is my best-selling product?
C) What is my worst-selling product?
D) Who is customer number 12345XX?
178) Business intelligence is information collected from multiple sources. Which of the
following provides an example of a source that would be included in business intelligence?
A) supplier source systems

B) customer source systems
C) competitor source systems
D) All of the answers are correct.
179) Which of the following represents the core drives of the information age?
A) data, information, business intelligence, knowledge

B) fact, data, intelligence, experience
C) fact, intelligence, business skills, knowledge
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180) Which of the following represents the definition of a variable?
A) a data characteristic that is collected through competitive intelligence and cannot

change over time
B) a data characteristic that stands for a value that changes or varies over time
C) a data characteristic that stands for a value that does not change or vary over time
181) Today’s workers are referred to as________, and they use BI along with personal
experience to make decisions based on both information and intuition, a valuable resource for
any company.
A) knowledge workers
B) knowledge thinkers
C) knowledge resources
182) What is information collected from multiple sources such as suppliers, customers,
competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic
decision making?
A) supplier’s intelligence
B) social intelligence
C) employee intelligence
D) business intelligence
183) Information is data converted into useful, meaningful context. What are data
characteristics that change or vary over time?
A) facts
B) variables
C) supplies
184) What is data converted into a meaningful and useful context?
A) competitive intelligence
B) information
C) buyer power
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185) What is a world where interconnected, Internet-enabled devices or “things” can collect
and share data without human intervention?
A) Internet of Things
B) predictive analytics
C) machine-to-machine
D) fourth industrial revolution
186) What refers to devices that connect directly to other devices?
A) information age
D) descriptive analytics
187) What extracts information from data and uses it to predict future trends and identify
behavioral patterns?
A) Internet of Things
D) fourth industrial revolution
188) What is the Internet of Things?
A) a world where interconnected, Internet-enabled devices or “things” can collect and

share data without human intervention
B) extracts information from data and uses it to predict future trends and identify
behavioral patterns
C) refers to devices that connect directly to other devices
D) opportunities to change the way people purchase books
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189) Which of the following definitions describes machine-to-machine?

B) extracts information from data and uses it to predict future trends and identify
behavioral patterns
190) What is predictive analytics?

B) techniques that extract information from data and use it to predict future trends and
identify behavioral patterns
191) Who collects, queries, and consumes organizational data to uncover patterns and provide
insights for strategic business decisions?
A) business intelligence manager

B) data scientist
C) data worker
D) data analyst
192) What role does a data analyst perform?
A) collects, queries, and consumes organizational data to uncover patterns and provide
insights for strategic business decisions
B) extracts knowledge from data by performing statistical analysis, data mining, and
advanced analytics on big data to identify trends, market changes, and other relevant information
C) records, measures, and reports monetary transactions
D) supports sales by planning, pricing, and promoting goods or services
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193) What are the three key skills required for a data analyst?
A) understanding of math and statistics

B) coding skills to work with data
C) business area subject matter expertise
194) What is the science of fact-based decision making?
A) business intelligence
B) information
C) knowledge
D) analytics
195) What is the scientific process of transforming data into insight for making better
decisions?
B) descriptive analytics
C) prescriptive analytics
D) predictive analytics
196) What describes past performance and history?
A) diagnostic analytics
197) What extracts information from data and use it to predict future trends and identify
behavioral patterns?
A) diagnostic analytics
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198) What creates models indicating the best decision to make or course of action to take?
A) diagnostics analytics
199) What are business analytics?
A) the scientific process of transforming data into insight for making better decisions
B) describe past performance and history
C) extracts information from data and use it to predict future trends and identify
behavioral patterns
200) What are descriptive analytics?
A) examines data or content to answer the question, “Why did it happen?”

behavioral patterns
201) What are diagnostic analytics?

behavioral patterns
202) What are predictive analytics?

behavioral patterns
D) creates models indicating the best decision to make or course of action to take
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203) What are prescriptive analytics?

behavioral patterns
D) creates models indicating the best decision to make or course of action to take
204) What are the four primary areas of analytics?
A) descriptive analytics, diagnostics analytics, predictive analytics, prescriptive analytics

B) descriptive analytics, primary analytics, secondary analytics, response analytics
C) descriptive analytics, diagnostics analytics, future analytics, past analytics
205) What are the human, structural, and recorded resources available to the organization?
A) knowledge assets
B) knowledge facilitators
C) predictive analytics
206) What resides within the minds of members, customers, and colleagues and include
physical structures and recorded media?
A) knowledge assets
D) business analytics
207) What helps harness the wealth of knowledge in the organization?
A) knowledge assets
C) data analysts
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208) What helps acquire and catalog the knowledge assets in an organization?
A) knowledge assets
209) What data is created by a machine without human intervention?
A) human-generated
B) machine-generated
C) structured data
D) facts
210) What data is generated by humans in interaction with computers?
A) human-generated
211) What type of structured data includes sensor data, point-of-sale data, and web log data?
A) human-generated
C) collective intelligence
212) What type of structured data includes input data, click-stream data, or gaming data?
A) human-generated
C) machine-to-machine (M2M)
D) systems thinking
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213) Which of the following describes structured data?
A) data that has a defined length, type, and format

B) data that includes numbers, dates, or strings such as Customer Address
C) data that is typically stored in a relational database or spreadsheet
214) What refers to devices that connect directly to other devices?
A) human-generated
D) systems thinking
215) What is the characteristic of unstructured data?
A) does not follow a specified format

B) free-form text
C) emails, Twitter tweets, and text messages
216) Which of the following does not describe unstructured data?
A) does not follow a specified format

B) a defined length, type, and format
C) free-form text
217) Which of the following does not describe structured data?
A) data with a defined length

B) emails, Twitter tweets, and text messages
C) typically stored in a relational database or spreadsheet
D) data with a defined format
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218) Which of the following represent machine-generated unstructured data?
A) satellite images
B) scientific atmosphere data
C) radar data
219) Which of the following represent human-generated unstructured data?
A) text messages
B) social media data
C) emails
220) Which of the following does not represent machine-generated unstructured data?
A) satellite images
B) radar data
C) social media data
221) Which of the following does not represent human-generated unstructured data?
A) text messages
B) social media data
C) scientific atmosphere data
222) What is a snapshot?

B) a view of data at a particular moment in time
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223) What is a view of data at a particular moment in time?
A) knowledge
B) big data
C) snapshot
D) unstructured data
224) What is a report?
A) a document containing data organized in a table, matrix, or graphical format allowing

users to easily comprehend and understand information
B) a collection of large complex datasets, including structured and unstructured, which
cannot be analyzed using traditional database methods and tools
C) a view of data at a particular moment in time
D) a world where interconnected, Internet-enabled devices or “things” can collect and
225) What type of report is created based on data that does not change?
A) static report
B) dynamic report
C) variable report
D) structured report
226) What type of report changes automatically during creation?
A) static report
B) dynamic report
C) variable report
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227) What type of report can include a sales report from last year or salary report from five
years ago?
A) static report
B) dynamic report
C) variable report
D) unstructured report
228) What type of report can include updating daily stock market prices or the calculation of
available inventory?
A) static report
B) dynamic report
C) variable report
229) Who extracts knowledge from data by performing statistical analysis, data mining, and
advanced analytics on big data to identify trends?
A) data scientist
B) knowledge worker
C) data analyst
D) chief sustainability officer
230) What area does a data scientist extract knowledge from to identify trends?
A) statistical analysis
B) data mining
C) advanced analytics on big data
231) Which of the following terms is synonymous with analytics?
A) data analyst
B) business analytics
C) structured data
D) data scientist
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232) What is the scientific process of transforming data into insight for making better
decisions?
B) Internet of Things
D) big data
233) Which of the following definitions represents a data scientist?
A) extracts knowledge from data by performing statistical analysis, data mining, and
B) collects, queries, and consumes organizational data to uncover patterns and provide
insights for strategic business decisions
C) individuals valued for their ability to interpret and analyze information
234) Who extracts knowledge from data by performing statistical analysis, data mining, and
advanced analytics on big data to identify trends, market changes, and other relevant
information?
A) data scientist
B) data analyst
C) data worker
D) knowledge facilitator
235) In terms of big data, what is variety?
A) includes different forms of structured and unstructured data

B) includes the uncertainty of data, including biases, noise, and abnormalities
C) includes the scale of data
D) includes the analysis of streaming data as it travels around the Internet
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236) In terms of big data, what is veracity?

237) In terms of big data, what is volume?

238) In terms of big data, what is velocity?

239) In terms of big data, what includes different forms of structured and unstructured data?
A) variety
B) veracity
C) volume
D) velocity
240) In terms of big data, what includes the uncertainty of data, including biases, noise, and
abnormalities?
A) variety
B) veracity
C) volume
D) velocity
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241) In terms of big data, what includes the scale of data?
A) variety
B) veracity
C) volume
D) velocity
242) In terms of big data, what includes the analysis of streaming data as it travels around the
Internet?
A) variety
B) veracity
C) volume
D) velocity
243) What is a collection of large, complex datasets, including structured and unstructured
data, which cannot be analyzed using traditional database methods and tools?
A) big data
B) data scientist
C) data analyst
D) descriptive analytics
244) What is big data?
A) a collection of large, complex datasets, including structured and unstructured data,

which cannot be analyzed using traditional database methods and tools
B) processes and manages algorithms across many machines in a computing environment
C) focuses on forecasting future trends and producing insights using sophisticated
quantitative methods, including statistics, descriptive and predictive data mining, simulation, and
optimization
D) extracts knowledge from data by performing statistical analysis, data mining, and
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245) In Lou’s Pizza Planet Inc., each department works independently. The sales and
marketing department focuses on providing goods and services to customers and maintains
transactional data, the finance and accounting department focuses on managing the
organization’s resources and maintains monetary data, and the human resources department
focuses on hiring and training people and maintains employee data. In the context of how Lou’s
functions, which of the following best describes the situation?
A) data silos
B) data democratization
C) data digitization
D) data science
246) What of the following terms describes a situation at a company when one business unit is
unable to freely communicate with other business units?
A) data silos
B) data democratization
C) competitive advantage
D) productivity
247) How are most companies today typically organized?
A) by departments or functional areas

B) by departments or financial areas
C) by degree or financial areas
D) by manager or knowledge area
248) How does a company operate if it wants to be successful in the information age?
A) functionally independent between departments

B) interdependently between departments
C) together as one department with little or no independence
D) each department acting as its own individual business unit
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249) Most companies are typically organized by departments or functional areas. Which of the
following is not a common department found in a company?
A) accounting
B) payroll
C) marketing
250) The sales department needs to rely on information from operations to understand
A) inventory.
B) customer orders.
C) demand forecasts.
251) Which of the following is the department that maintains policies, plans, and procedures
for the effective management of employees?
A) human resources
B) sales resources
C) employee resources
252) Greg works for Geneva Steel Corporation. Greg’s duties include managing the overall
processes for the company and transforming the steel resources into goods. Which department
would Greg most likely work in?
A) accounting
B) operations management
C) marketing
253) The department within a company that records, measures, and reports monetary
transactions is called
A) accounting.
B) marketing.
C) human resources.
D) operations management.
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254) The department within a company that performs the function of selling goods or services
is called
A) marketing.
B) sales.
C) finance.
255) The department within a company that supports the sales by planning, pricing, and
promoting goods or services is called
A) sales.
B) operations management.
C) accounting.
D) marketing.
256) Which department tracks strategic financial issues, including money, banking, credit,
investments, and assets?
A) sales
C) accounting
D) finance
257) Which department manages the process of converting or transforming resources into
goods or services?
A) sales
C) accounting
258) Which department records, measures, and reports monetary transactions?
A) sales
C) accounting
D) finance
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259) Which department maintains policies, plans, and procedures for the effective
management of employees?
A) sales
C) accounting
D) human resources
260) Which activities belong in the accounting department?
A) records, measures, and reports monetary transactions

B) tracks strategic financial issues, including money, banking, credit, investments, and
assets
C) supports the sales by planning, pricing, and promoting goods or services
D) relies on information from operations to understand inventory, place orders, and
forecast consumer demand
261) Which activities belong in the finance department?

assets
262) Which activities belong in the marketing department?

assets
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263) Which activities belong in the sales department?

assets
264) Which activities belong in the human resources department?

assets
D) maintains policies, plans, and procedures for the effective management of employees
265) Which activities belong in the operations management department?

B) manages the process of converting or transforming resources into goods or services
D) maintains policies, plans, and procedures for the effective management of employees
266) Which data types are typically found in the marketing department?
A) promotion data, sales data, advertising data

B) employee data, promotion data, vacation data
C) investment data, monetary data, reporting data
267) Which data types are typically found in the human resources department?

D) transactional data, purchasing data, payroll data, tax data
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268) Which data types are typically found in the finance department?

269) Which data types are typically found in the accounting department?

270) Which data types are typically found in the sales department?
A) sales data, customer data, commission data, customer support data

271) Which data types are typically found in the operations management department?
A) manufacturing data, distribution data, production data

B) sales data, customer data, commission data, customer support data
C) employee data, promotion data, vacation data
D) investment data, monetary data, reporting data
272) Which of the following describes the relationship between functional areas in a business?
A) independent
B) autonomous
C) interdependent
D) self-sufficient
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273) Which of the following represents the types of data commonly found in the accounting
department?
A) tax data
B) payroll data
C) transactional data
274) Which of the following represents the types of data commonly found in the finance
department?
A) monetary data
B) technology data
C) production data
275) Which of the following represents the types of data commonly found in the human
resource department?
A) financial data
B) technology data
C) production data
D) employee data
276) Which of the following represents the types of data commonly found in the sales
department?
A) customer data
B) sales report data
C) commission data
277) Which of the following represents the types of data commonly found in the marketing
department?
A) promotional data
B) payroll data
C) tax data
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278) Which of the following represents the types of data commonly found in the operations
management department?
A) monetary data
B) payroll data
C) production data
D) employee data
279) Who is responsible for collecting, maintaining, and distributing company knowledge?
A) chief knowledge officer (CKO)

B) chief privacy officer (CPO)
C) chief technology officer (CTO)
D) chief information officer (CIO)
280) Who is responsible for ensuring the ethical and legal use of information within a
company?

281) Who is responsible for ensuring the speed, accuracy, availability, and reliability of the
management information systems?

282) Who is responsible for overseeing all uses of MIS and ensuring that MIS strategically
aligns with business goals and objectives?

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283) Who is responsible for ensuring the security of business systems and developing
strategies and safeguards against attacks by hackers and viruses?

B) chief security officer (CSO)
284) Trina Hauger works for Johnson Electric as a corporate lawyer, and part of her duties are
to ensure the ethical and legal use of information within the company. Which of the following
represents Trina’s role at Johnson Electric?

285) The challenge that companies today sometimes have is that they are departmentalized
into functions that act independently of each other. One solution that can help a company
work________Blank includes management information systems.
A) variables
B) human resource data
C) interdepartmentally
286) Susan Stewart is an executive at Equity Title, where she is responsible for collecting,
maintaining and distributing knowledge for the company. What is Susan’s role at Equity Title?

B) chief technology officer (CTO)
C) chief information officer (CIO)
287) What is the primary responsibility of the CTO?
A) overseeing all uses of MIS

B) ensuring the security of business systems
C) ensuring speed, accuracy, and reliability for MIS
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288) Jeremy Bridges is an executive for Green Web Designs, where his primary role is to
ensure the security of business systems and develop strategies to protect the company from
online viruses and hackers. What is Jeremy’s role within the company?
A) chief executive officer (CEO)

C) chief procurement officer (CPO)
D) chief technology officer (CTO)
289) Which role within a company is responsible for overseeing all uses of MIS and ensuring
that MIS strategic aligns with business goals and objectives?

C) chief information officer (CIO)
290) Recently, 150 of the Fortune 500 companies added which of the following positions to
their list of senior executives?
A) chief technology officer (CTO)

B) chief data officer (CDO)
C) chief privacy officer (CPO)
291) Who is responsible for ensuring the speed, accuracy, availability, and reliability of the
MIS?

292) Who is responsible for ensuring the ethical and legal use of information within a
company?

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293) Who is responsible for ensuring the security of business systems and developing
strategies and safeguards against attacks by hackers and viruses?

D) chief knowledge officer (CKO)
294) Who is responsible for collecting, maintaining, and distributing company knowledge?
A) chief data officer (CDO)

D) chief knowledge officer (CKO)
295) Who is responsible for (1) overseeing all uses of MIS and (2) ensuring that MIS
strategically aligns with business goals and objectives?
A) chief information officer (CIO)

B) chief data officer (CDO)
296) Who is responsible for determining the types of information the enterprise will capture,
retain, analyze, and share?
A) chief information officer (CIO)

C) chief data officer (CDO)
297) Which of the following includes the roles and responsibilities of the chief technology
officer (CTO)?
A) ensuring the speed, accuracy, availability, and reliability of the MIS

B) ensuring the ethical and legal use of information within a company
C) ensuring the security of business systems and developing strategies and safeguards
against attacks by hackers and viruses
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298) Which of the following includes the roles and responsibilities of the chief information
officer (CIO)?

D) ensuring that MIS strategically aligns with business goals and objectives
299) Which of the following includes the roles and responsibilities of the chief privacy officer
(CPO)?

300) Which of the following includes the roles and responsibilities of the chief security officer
(CSO)?

301) Which of the following includes the roles and responsibilities of the chief data officer
(CDO)?
A) determining the types of information the enterprise will capture, retain, analyze, and
share
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302) Which of the following includes the roles and responsibilities of the chief knowledge
officer (CKO)?
A) determining the types of information the enterprise will capture, retain, analyze, and
share
B) collecting, maintaining, and distributing company knowledge
303) Which of the following executive levels might we see created over the next decade?
A) chief intellectual property officer

B) chief automation officer
C) chief user experience officer
304) The chief intellectual property officer is a new executive level we might see created over
the next decade. Which of the following includes the roles and responsibilities of this officer?
A) manage and defend intellectual property, copyrights and patents

B) determine if a person or business process can be replaced by a robot or software
C) create the optimal relationship between user and technology
305) The chief automation officer is a new executive level we might see created over the next
decade. Which of the following includes the roles and responsibilities of this officer?
A) manage and defend intellectual property, copyrights, and patents

306) The chief user experience officer is a new executive level we might see created over the
next decade. Which of the following includes the roles and responsibilities of this officer?
A) manage and defend intellectual property, copyrights, and patents

D) ensure the ethical and legal use of information within an organization
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307) Which of the following is not a broad function of a chief information officer?
A) manager
B) follower
C) communicator
D) leader
308) What is the difference between the chief information officer and chief data officer?
A) the CIO is responsible for the data, regardless of the information system; the CDO is
responsible for the information systems through which data is stored and processed
B) the CIO is responsible for the information systems through which data is stored and
processed; the CDO is responsible for the data, regardless of the information system
C) their roles and relationships are identical
309) What is the difference between existing MIS workplace knowledge and the knowledge
required to fulfill business goals and strategies?
A) off-site training
B) MIS skills gap
C) social recruiting
D) information security
310) In recruiting lingo, what are perfect MIS candidates sometimes called?
A) turquoise turtles
B) red rabbits
C) purple squirrels
D) white unicorns
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311) Eric Eberly holds an executive position at Parker Industries. He has designed and
implemented a system to collect, maintain, and share information across the many departments
of Parker Industries. He’s also instilled an updating protocol requiring department heads to keep
the system up-to-date. Based on this description, what position does Eric hold?
A) chief information officer

B) chief security officer
C) chief data officer
D) chief knowledge officer
312) Cody Osterman holds an executive position at Trek Enterprises. His role is the newest
senior executive position at the organization. He has advised the company on privacy procedures
and processes, and has initiated a training program for employees about the privacy policy,
customer confidentiality, and data security. Based on this description, what position does Cody
hold at Trek Enterprises?
A) chief information officer

B) chief security officer
D) chief privacy officer
313) Sara McGuire holds an executive position at Henry Commerce. She is a big-picture
thinker, and makes sure the technology strategy at Henry Commerce serves its business strategy.
She has a well-rounded knowledge of MIS, and her primary responsibilities include the
efficiency of Henry Commerce’s MIS systems. Based on this description, what position does
Sara hold?
A) chief user experience officer

B) chief technology officer
D) chief privacy officer
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314) Allana Nation holds an executive position at PH Corporation. He has an extensive

understanding of networks and telecommunications. Adam is aware of the information-
technology threats the company faces and institutes security protocols and safeguards to secure
the MIS systems at PH Corporation. Based on this description, what position does Allana hold?
A) chief security officer

B) chief user experience officer
D) chief automation officer
315) Jasmine Coleman holds an executive position at Keck-Howes Group. Jasmine has
improved the quality of the data gathered by the organization and has created a model to
decrease the cost of managing data while increasing the value of the data gathered. Based on this
description, what position does Jasmine hold at Keck-Howes Group?
A) chief security officer

B) chief user experience officer
D) chief automation officer
316) What is the ability for data to be collected, analyzed, and accessible to all users (the
average end users)?
A) data democratization
B) business unit
C) knowledge democratization
D) business data
317) What is a segment of a company representing a specific business function?
B) business unit
C) knowledge democratization
D) business data
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318) You are working for a new boss, Jill Slater. Jill believes that all employees in the
company should have access to the data they need when they need it for analysis and to make
data-driven business decisions. Which term best describes Jill’s business belief?
B) business unit
C) knowledge dissemination
D) business data
319) Feedback is information that returns to its original transmitter and modifies the
transmitter’s actions. What would the original transmitter include?
A) input, transform, output

B) input, transform, outnumber
C) output, input, perform
320) MIS is a business function. Which of the following does MIS perform to help aid the
company in decision making and problem solving?
A) moves information about people

B) moves processes across the company to improve systems
C) moves information about products
321) In terms of system thinking, what is data entered in a computer?
A) input
B) output
C) process
322) In terms of system thinking, what controls to ensure correct processes?
A) input
B) output
C) process
D) feedback
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323) In terms of system thinking, what is the resulting information from the computer
program?
A) input
B) output
C) process
D) feedback
324) In terms of system thinking, what is the computer program that processes the data?
A) input
B) output
C) process
D) feedback
325) In terms of system thinking, what is input?
A) data entered in a computer

B) controls to ensure correct processes
C) the resulting information from the computer program
D) the computer program that processes the data
326) In terms of system thinking, what is output?

327) In terms of system thinking, what is feedback?

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328) In terms of system thinking, what is process?

329) A system is a collection of parts that link to achieve a common purpose. Systems thinking
is a way of monitoring
A) the entire system

B) a division within the sales role
C) the executive team
330) MIS can be an important enabler of business success and innovation. Which of the below
statements is accurate when referring to MIS?
A) MIS equals business success and innovation.

B) MIS represents business success and innovation.
C) MIS is not a valuable tool that leverages talent.
D) MIS is a valuable tool that can leverage the talents of people who know how to use
and manage it effectively.
331) What is a way of monitoring the entire system in a company by viewing the multiple
inputs being processed to produce outputs?
A) feedback thinking
B) systems thinking
C) output management
332) Which of the following statements is true?
A) MIS equals business success.

B) MIS equals business innovation.
C) MIS represents business success and innovation.
D) MIS enables business success and innovation.
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333) What is the name of a company’s internal computer department?
A) management information systems

B) information systems
C) information technology
334) What are material items or products that customers will buy to satisfy a want or need?
A) goods
B) services
C) production
D) productivity
335) What are tasks performed by people that customers will buy to satisfy a want or need?
A) goods
B) services
C) production
D) productivity
336) What is the process where a business takes raw materials and processes them or converts
them into a finished product for its goods or services?
A) goods
B) services
C) production
D) productivity
337) What is the rate at which goods and services are produced based upon total output given
total inputs?
A) goods
B) services
C) production
D) productivity
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338) What are goods?
A) material items or products that customers will buy to satisfy a want or need
B) tasks performed by people that customers will buy to satisfy a want or need
C) the process where a business takes raw materials and processes them or converts them
into a finished product for its goods or services
D) the rate at which goods and services are produced based upon total output given total
inputs
339) What are services?
inputs
340) What is production?
inputs
341) What is productivity?
inputs
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342) Cars, groceries, and clothing belong in which category?
A) goods
B) services
C) production
D) productivity
343) Teaching, waiting tables, and cutting hair belong in which category?
A) goods
B) services
C) production
D) productivity
344) Which of the following is considered a good?
A) cars
B) groceries
C) clothing
345) Which of the following is considered a service?
A) teaching
B) waiting tables
C) cutting hair
346) Which of the following is considered a good?
A) cars
B) teaching
C) waiting tables
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A) cars
B) groceries
C) cutting hair
348) Which of the following is considered goods?
A) milk and eggs

B) managing a team
C) selling groceries
A) selling groceries
B) managing a team
C) cutting hair
350) The lettuce, tomatoes, patty, bun, and ketchup are included in which category of making
a hamburger?
A) input
B) process
C) output
351) Cooking a patty and putting the ingredients together are included in which category of
making a hamburger?
A) input
B) process
C) output
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352) The actual hamburger is included in which category of making a hamburger?
A) input
B) process
C) output
353) Assume you are in the business of producing and selling hamburgers. If you could
produce more hamburgers with the same input, what would happen to your productivity and
profits assuming the price of your hamburgers remains the same?
A) increase in productivity, decrease in profits

B) increase in productivity, increase in profits
C) decrease in productivity, decrease in profits
D) decrease in productivity, increase in profits
354) Assume you are in the business of producing and selling T-shirts. If you could produce
more T-shirts with the same input, what would happen to your productivity and profits assuming
the price of your T-shirts remains the same?

355) Assume you are in the business of producing and selling cars. If you could produce more
cars with the same input, what would happen to your productivity and profits assuming the price
of your cars remains the same?

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356) Which four elements are included in systems thinking?
A) output, process, feedback, and accounting

B) process, output, operations, and accounting
C) input, process, output, and feedback
D) input, output, sales, and feedback
357) MIS is a business function, like accounting or sales, which moves information about
people, products, and processes across the company to facilitate decision making and problem
solving. What does MIS stand for?
A) management information strategy

B) management intelligence system
C) management information system
D) management information strategist
358) Shelby Black runs a very successful hair salon in downtown Los Angeles. One of
Shelby’s tasks is to input positive and negative customer reviews into her computer system. What
type of information is Shelby gathering?
A) feedback
B) processing
C) output management
D) sales processing
359) Which of the following provides an accurate definition of systems thinking?
A) a way of monitoring the entire system by viewing multiple inputs being processed or
transformed to produce outputs while continuously gathering feedback on each part
B) a way of monitoring individual components including an input, the process, and an
output while continuously gathering feedback on the entire system
C) a way of monitoring the entire system by viewing multiple inputs being processed or
transformed to produce outputs while continuously gathering feedback on the entire system
D) a way of monitoring singular parts of a system by viewing a single input that is
processed or transformed to produce an entire system that is continuously monitored to gather
feedback on each individual part
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360) If you were thinking about a washing machine as a system, which of the following
represents the inputs?
A) the dirty clothes, water, and detergent

B) the clean clothes
C) the wash and rinse cycles
D) the light indicating that the washer is off balance and has stopped
represents the process?

represents the feedback?

represents the outputs?

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364) If you were thinking about an oven as a system, which of the following represents the
input?
A) the uncooked food

B) the cooked food
C) a light indicating that the oven has reached the preheated temperature
D) the oven running at 350 degrees for 20 minutes
output?

B) the cooked food
process?

B) the cooked food
feedback?

B) the cooked food
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368) If you were thinking about a home theater system, which of the following represents the
inputs?
A) the DVD player, DVD movie, speakers, TV, and electricity

B) playing the movie, including the audio through the speakers and the video on the TV
C) a message stating that the disk is dirty and cannot be played
D) spinning the disk to play, pause, rewind, or fast forward
outputs?

process?

feedback?

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372) Which of the following is not a typical way that a company would duplicate a
competitive advantage?
A) acquiring the new technology

B) copying the business operations
C) hiring away key employees
D) carrying large product inventories
373) When a company is the first to market with a competitive advantage, this is called a first-
mover advantage. All of the following companies were first-movers except
A) FedEx—Online Self-Service Software.

B) Apple—iPad.
C) Apple—iPod.
D) Microsoft—Bing Search Engine.
374) Which of the following is a tool a manager can use to analyze competitive intelligence
and identify competitive advantages?
A) the three generic strategies

B) the threat of substitute buyer power
C) differentiated costs
375) Identifying competitive advantages can be difficult, which explains why they are
typically
A) temporary.
B) satisfactory.
C) terminated.
376) Updating business strategies is a continuous undertaking as internal and external

environments
A) become less competitive.

B) remains stagnant.
C) rapidly changes.
D) become more consistent.
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377) Which of the following represents a reason why competitive advantages are typically
temporary?
A) The competitor will hire away your key employees.

B) The competitor quickly seeks ways to duplicate your business operations.
C) The competitor will purchase new technology.
378) What is a competitive advantage?
A) a product that an organization’s customers place a lesser value on than similar

offerings from a competitor
B) a feature of a product or service on which customers place a lesser value than they do
on similar offerings from another supplier
C) a service that an organization’s customers place a lesser value on than similar
offerings from another supplier
D) a feature of a product or service on which customers place a greater value than they do
on similar offerings from competitors
379) Which of the following is not a common tool used in industry to analyze and develop
competitive advantages?
A) Five Forces Model

B) three generic strategies
C) competitive analysis model
D) value chain analysis
380) What is the process of gathering information about the competitive environment,
including competitors’ plans, activities, and products, to improve a company’s ability to succeed?
A) feedback
B) information
C) competitive intelligence
D) data
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381) Who is a person or group that has an interest or concern in an organization?
A) stakeholder
B) business strategy
C) supplier
382) Which group of stakeholder’s primary interests include reliable contracts, ethical
materials handling, and responsible production?
A) partners/suppliers
B) shareholders/investors
C) community
D) government
383) Which group of stakeholder’s primary interests include adhering to regulations/laws,

increasing employment, and ethical taxation reporting?
C) community
D) government
384) Which group of stakeholder’s primary interests include maximizing profits, growing
market share, and high return on investment?
C) community
D) government
385) Which group of stakeholder’s primary interests include exceptional customer service,
high-quality products, and ethical dealings?
C) community
D) customers
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386) Which group of stakeholder’s primary interests include fair compensation, job security,
and ethical conduct/treatment?
A) employees
C) community
387) Which group of stakeholder’s primary interests include professional associations, ethical
recycling, and increasing employment?
A) employees
C) community
388) What is a feature of a product or service on which customers place a greater value than
they do on similar offerings from competitors?
A) competitive advantage
B) competitor advantage
C) power advantage
389) Which of the following evaluates a project’s position?
A) SWOT analysis
B) Five Forces Model
C) value chain analysis
390) What is a SWOT analysis?
A) evaluates an organization’s strengths, weaknesses, opportunities, and threats to

identify significant influences that work for or against business strategies
B) analyzes the competitive forces within the environment in which a company operates
to assess the potential for profitability in an industry
C) views a firm as a series of business processes, each of which adds value to the product
or service
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391) What evaluates industry attractiveness?
A) SWOT analysis
D) three generic strategies
392) What is Porter’s Five Forces Model?

or service
D) generic business strategies that are neither organization- nor industry-specific and can
be applied to any business, product, or service
393) What executes business strategy?
A) SWOT analysis
394) What is a value chain analysis?

or service
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395) Which strategy below helps an organization choose its business focus?
A) SWOT analysis
396) What are Porter’s three generic strategies?
A) evaluate an organization’s strengths, weaknesses, opportunities, and threats to identify

significant influences that work for or against business strategies.
B) analyze the competitive forces within the environment in which a company operates to
assess the potential for profitability in an industry.
C) view a firm as a series of business processes, each of which adds value to the product
or service.
397) Which of the following describes a stakeholder?
A) a leadership plan that achieves a specific set of goals or objectives

B) a feature of a product or service on which customers place a greater value
C) a person or group that has an interest or concern in an organization
D) information about a competitive environment
398) There are many different stakeholders found in an organization. Stakeholder’s drive
business strategies, and depending on the stakeholder’s perspective, the business strategy can
change. Which of the following is a main concern for customers?
A) exceptional customer service

B) fair compensation
C) professional associations
D) reliable contracts
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change. Which of the following is a main concern for employees?

change. Which of the following is a main concern for the community?

change. Which of the following is a main concern for partners/suppliers?

change. Which of the following is a main concern for the government?
A) maximized profits
B) adherence to regulations/laws
C) exceptional customer service
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change. Which of the following is a main concern for shareholders/investors?
B) adherence to regulations/laws
C) exceptional customer service
404) There are many different stakeholders found in an organization with common business
interests. Depending on the stakeholder’s perspective, the business strategy can change. Which of
the following is not a main concern for shareholders/investors?
B) grow market share
C) job security
D) high return on investment
405) What is included in a SWOT analysis?
A) strengths, weaknesses, organizations, and technology

B) strengths, weaknesses, opportunities, and threats
C) success, willingness, opportunities, and technology
406) Which of the following statements is correct when considering a SWOT analysis?
A) Strengths and weaknesses originate inside an organization.

B) Opportunities and threats originate inside an organization.
C) Strengths and threats originate inside an organization.
407) Which of the following statements is correct when considering a SWOT analysis?
A) Strengths and weaknesses originate outside an organization.

B) Opportunities and threats originate outside an organization.
C) Strengths and threats originate inside an organization.
D) Opportunities and weaknesses originate outside an organization.
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408) Which of the following are included as potential internal strengths in a SWOT analysis
that are helpful to an organization?
A) core competencies, market leaders, cost advantages, excellent management

B) lack of strategic direction, obsolete technologies, lack of managerial talent, outdated
product line
C) expanded product line, increase in demand, new markets, new regulations
D) new entrants, substitute products, shrinking markets, costly regulatory requirements
409) Which of the following are included as potential internal weaknesses in a SWOT analysis
that are harmful to an organization?

product line
410) Which of the following are included as potential external opportunities in a SWOT
analysis that are helpful to an organization?

product line
411) Which of the following are included as potential external weaknesses in a SWOT
analysis that are harmful to an organization?

product line
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412) How would you categorize strengths in a SWOT analysis?
A) internal, helpful
B) internal, harmful
C) external, helpful
D) external, harmful
413) How would you categorize weaknesses in a SWOT analysis?
414) How would you categorize opportunities in a SWOT analysis?
415) How would you categorize threats in a SWOT analysis?
416) What does a SWOT analysis perform?
A) evaluates an organizations strengths, weaknesses, objectives, and threats

B) evaluates an organization’s strengths, weaknesses, opportunities, and threats
C) evaluates an organization’s supporters, weaknesses, opportunities, and technology
D) evaluates an organization’s systems, warehouses, outputs, and technology
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417) In a SWOT analysis, strengths and weaknesses originate________Blank an organization.
A) inside (internally)
B) outside (externally)
C) both inside (internally) and outside (externally)
418) In a SWOT analysis, opportunities and threats originate________Blank an organization.
A) inside (internally)
B) outside (externally)
C) both inside (internally) and outside (externally)
D) All answer choices are correct.
419) In a SWOT analysis, which of the following could you discover as potential internal
strengths (helpful)?
A) cost advantages
B) damaged reputation
C) new markets
D) competitor issues
420) In a SWOT analysis, which of the following could you discover as potential inner
weaknesses (harmful)?
A) cost advantages
C) new markets
D) competitor issues
421) In a SWOT analysis, which of the following could you discover as potential external
opportunities (helpful)?
A) cost advantages
C) new markets
D) improved marketing campaigns
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422) Managers use four common tools to analyze competitive intelligence and develop
competitive advantages. Which of the following is not one of these tools?
A) three generic strategies

C) first-mover advantage
D) SWOT analysis
423) The Victory Wireless store in Denver is currently offering a fabulous marketing strategy
for potential new iPhone customers. Victory Wireless offers customers who purchase an iPhone
with a 2-year subscription a free Otter phone case, car charger, ear phones, and speakers. In
terms of Porter’s Five Forces Model, what is Victory Wireless attempting to achieve with this
marketing strategy?
A) increased buyer power

B) increased substitute products
C) decreased supplier power
D) decreased buyer power
424) Gina Brooks works for Aquarium Retail Services selling high-end salt water fish and
tank supplies. Aquarium Retail Services is the current market leader in Gina’s city. Gina has
recently been approached by Deep Blue Incorporated with an opportunity to run its corporate
nation-wide marketing and sales division. Gina decides to jump at the opportunity. Deep Blue is
attempting to gain a competitive________Blank by stealing its competitor’s key employees.
A) power
B) entry barrier
C) advantage
D) loyalty
425) The banking industry has implemented several competitive advantages including ATMs,
online bill pay services, and electronic statements. Of course, these competitive advantages were
quickly duplicated by any competitor that wanted to remain in the banking industry. These were
all examples of seeking competitive advantages through
A) acquiring new technology products and services.

B) hiring new employees.
C) reducing expenses.
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426) Michael Porter defined the Five Forces Model and the potential pressures that can hurt
sales. Which of the following is not one of the potential pressures that can hurt sales?
A) Suppliers can drive down profits by charging more for supplies.

B) New market entrants can steal potential investment capital.
C) Substitute products can steal customers.
D) Competition can steal customers.
427) Kevin Campbell is an incoming freshman at your college. Kevin is frustrated by the cost
of books, tuition, and expenses, and he needs to purchase a rather expensive laptop. In an effort
to save money, Kevin begins a Facebook group finding other college students who need to
purchase laptops. Soon, Kevin’s Facebook group has close to 100,000 students. Kevin decides to
collectively approach different computer companies to see if his group qualifies for a special
discount. What business strategy is Kevin using to purchase laptops?
A) collecting business intelligence

B) decreasing entry barriers
C) purchasing a substitute product
D) increasing buyer power
428) What are costs that make customers reluctant to switch to another product or service?
A) support activities
B) switching costs
C) loyalty rewards
D) value chain activities
429) Callie Crystal owns and operates one of the most successful local coffee shops in Denver,
called the Edgewater Café. Each time a customer purchases their 100th cup of coffee at the
Edgewater Café, they receive a free pound of coffee of their choice. What is Callie attempting to
create with her unique “Free Pound of Coffee” marketing program?
A) reducing buyer power with a loyalty program

B) increasing buyer power with a loyalty program
C) decreasing supplier power with a differentiated product
D) creating a substitute product
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430) What includes all parties involved, directly or indirectly, in obtaining raw materials or a
product?
A) support chain
B) supply chain
C) system chain
D) supply choice
431) Which of the below represents a company in a supply chain?
A) customer and competitor

B) supplier and competitor
C) knowledge worker and supplier
D) supplier and customer
432) In the center of Porter’s Five Forces Model is competition. Which of the below represents
the four outer boxes?
A) buyer power, systems power, threat of false entrants, and threat of substitute products
or services
B) buyer power, systems power, threat of new entrants, and threat of substitute products
or services
C) buyer power, supplier power, threat of new entrants, and threat of substitute products
or services
D) business power, supplier power, threat of new entrants, and threat of powerful services
433) Shawn McGill is on the executive board for ABC Pharmaceuticals. The company
produces the top-selling cancer-fighting drug on the market. Due to its incredible success, ABC
Pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which
force is ABC Pharmaceuticals using to increase its drug price?
A) supplier power
B) buyer power
C) threat of false entrants
D) business power
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434) What is one of the most common ways a company can decrease supplier power?
A) charge lower prices

B) charge higher prices
C) use MIS to find and create alternative products
D) companies cannot impact supplier power
435) If a supplier has high power, what can it do to influence its industry?
A) charge higher prices

B) shift costs to industry participants
C) limit quality or services
436) How can a company reduce the threat of substitute products or services?
A) market the product to fewer than 10 customers

B) ignore competitive forces
C) offer additional value through wider product distribution
D) offer less value making the product far more generic and similar to the competition
437) Which one of Porter’s five forces is high when it is easy for new competitors to enter a
market and low when there are significant entry barriers to joining a market?
A) threat of new entrants

B) threat of substitute products or services
C) threat of buyer power
D) supply chain competition
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438) John Cleaver is the CEO of Tech World, a retail store that sells computers, monitors,
cameras, televisions, and many other electronic products. John and his executive team are
meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor
product that is attempting to sell a new product in a different industry. After performing a
Porter’s Five Forces Model analysis, John determines that all of the forces are high in this new
industry. What should John do?
A) explode into the market with an overflow of the product

B) contemplate other products to introduce at the same time in this new market
C) compare the competitor’s prices and offer his product at a lower price in this new
market
D) not introduce the product because all five forces are strong and this would be a highly
risky business strategy
439) What is a feature of a product or service that customers have come to expect and entering
competitors must offer the same if they want to survive?
A) significant barrier
B) entry barrier
C) product differentiation
D) entry chain
440) Which of the following represents a typical supply chain?
A) company – customers – suppliers

B) company – suppliers – customers
C) suppliers – company – customers
D) suppliers – customers – company
441) Imagine you are creating a new product to sell in an up-and-coming market. Which of the
following statements indicates that it would be easy for you as the new entrant to compete in this
market?
A) The threat of new entrants’ force is high in the up-and-coming market.

B) The threat of new entrants’ force is low in the up-and-coming market.
C) The threat of new entrants’ force is impossible to define in the up-and-coming market.
D) All of the answers are correct depending on the time of year.
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442) Imagine you are creating a new product to sell in an up-and-coming market. Which of the
following statements indicates that it would be difficult for you to enter this new market?
A) The threat of new entrants’ force is high in the up-and-coming market.

B) The threat of new entrants’ force is low in the up-and-coming market.
C) The threat of new entrants’ force is high during the summer months in the up-and-
coming market.
D) All of the answers are correct depending on the time of year.
443) Which of the following is an example in which Porter’s five forces are mostly strong and
competition is high?
A) dog-walking business
B) ski resort
C) professional hockey team
444) Which of the following offers an example in which Porter’s five forces are mostly weak
and competition is low?
A) an international hotel chain purchasing milk

B) a coffee shop
C) a single consumer purchasing milk
D) a dog-walking business
445) Some industries’ competition is much more intense than others. Retail grocery stores such
as Kroger, Safeway, and Albertson’s in the United States experience fierce competition and offer
similar marketing campaigns to compete. What is this an example of in terms of Porter’s Five
Forces Model?
A) rivalry among new entrants

B) rivalry among existing competitors
C) threat of substitute products or services
D) buyer power
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446) Amazon.com uses a customer profiling system whenever a customer visits its website.
Using this system, Amazon can offer products tailored to that particular customer’s profile and
buying pattern. What is Amazon using to achieve this competitive advantage?
A) rivalry
B) buyer power
C) product differentiation
447) Your boss, Penny Dirks, has asked you to analyze the music industry using Porter’s Five
Forces Model. Which of the following represents supplier power in the music industry?
A) established record labels such as EMI, Sony, and Universal

B) Walmart, Target, iTunes
C) game systems such as Xbox and social networks such as Facebook.
Forces Model. Which of the following represents buyer power in the music industry?

B) Walmart, Target, iTunes
C) independent record labels
Forces Model. Which of the following represents the threat of substitute products or services in
the music industry?

B) independent record labels
C) game systems such as Xbox and social networks such as Facebook
450) Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter’s
Five Forces Model. Which of the following represents supplier power in the soft drink industry?
A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf
space in every Walmart store.
C) Zevia Natural Diet Soda begins selling directly over the Internet.
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Five Forces Model. Which of the following represents buyer power in the soft drink industry?
A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000
cases.
Five Forces Model. Which of the following represents a threat of a new entrant in the soft drink
industry?
cases.
Five Forces Model. Which of the following represents a substitute product in the soft drink
industry?
cases.
D) vitamin water, fruit juice, coffee
454) What is buyer power?
A) the ability of buyers to affect the price they must pay for an item
B) the suppliers’ ability to influence the prices they charge for supplies (including
materials, labor, and services)
C) high when it is easy for new competitors to enter a market and low when there are
significant entry barriers to joining a market
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455) What is supplier power?
456) What is the threat of substitute products or services?
D) high when there are many alternatives to a product or service and low when there are
few alternatives from which to choose
457) What is the threat of new entrants?
458) What is the rivalry among existing competitors?
D) high when competition is fierce in a market and low when competitors are more
complacent
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Five Forces Model. Which of the following represents rivalry in the soft drink industry?
cases.
D) Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale
of their products during games.
460) Porter identified three generic strategies that a business could follow after identifying a
market it wanted to enter. Which of the following is not included as one of Porter’s three generic
strategies?
A) broad differentiation
B) supplier cost differentiation
C) focused strategy
D) broad cost leadership
461) When analyzing Porter’s three generic strategies for entering a market, if you have a
focused strategy, what market should you target?
A) a niche market
B) a broad market
C) neither niche nor broad markets
D) both niche and broad markets
462) Which of the following offers an example of a company operating in a narrow focused
market as the low-cost provider?
A) Walmart
B) Tiffany & Co.
C) Neiman Marcus
D) Payless Shoes
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463) Broad differentiation, broad cost leadership, and________Blank create the three generic
strategies identified by Porter.
A) narrow market leadership

B) high cost versus low cost
C) focused strategy
D) None of the answer choices are correct.
464) Jennifer Bloom is writing a paper, and she must determine which of Porter’s three generic
strategies The Museum Company has implemented. Jennifer finds out that The Museum
Company offers specialty products found only in museums around the world to affluent
customers. What would Jennifer determine The Museum Company is using as its generic
strategy?
A) broad market, low cost

B) narrow market, high cost
C) broad market, high cost
D) narrow market, low cost
465) According to Porter, companies that wish to dominate broad markets should operate
using a________Blank strategy.
A) cost leadership with a low cost

B) differentiation with a low cost
C) cost leadership with a high cost
D) All answer choices are correct.
466) Which of the following demonstrates a company that has implemented a low-cost, broad
market strategy?
A) Neiman Marcus
B) Payless Shoes
C) the Sharper Image
D) Walmart
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467) If a business is following a focused strategy, then its competitive scope is
A) broad market.
B) narrow market.
C) broad range products.
468) When applying Porter’s three generic strategies, Tiffany & Co. has a competitive scope
and cost strategy that is
A) broad market, high cost.

B) narrow market, low cost.
C) narrow market, high cost.
469) When analyzing the book store industry, some of today’s businesses compete with
different business strategies and cost strategies. Which of the following is using a broad market
competitive scope along with a low-cost strategy?
A) Amazon.com
B) local independent bookstore specializing in antique books
C) Barnes & Noble
470) Which of the following is similar to a focused strategy versus a broad strategy?
A) large market versus leadership

B) large market versus uniqueness
C) niche market versus large market
D) niche market versus generic
471) Your boss, Penny Dirks, has asked you to analyze the airline industry using Porter’s three
generic strategies. Which of the following companies are using a cost leadership strategy?
A) Southwest, Horizon, Frontier, JetBlue

B) British Airways, Singapore Airlines, Virgin Atlantic
C) Sky Taxi, a rent-by-the-hour personal plane service
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generic strategies. Which of the following companies are using a differentiation strategy?

generic strategies. Which of the following companies are using a focused strategy?

474) A(n)________Blank allows primary activities to connect digitally to help speed up the
transition from sales to manufacturing in an organization.
A) SWOT analysis
B) digital distribution platform
C) management information system
D) digital value chain
475) Baltzan bike manufacturing needed to decrease the amount of time it took to develop a
customized bike. Many customers requested special parts to be assembled for the one-time
creation for a bike. By connecting the sales systems to the manufacturing systems and adding 3D
printing to its manufacturing process, it was able to cut down on the amount of time it took
between sales and production. What type of technology is this called?
A) digital value chain

B) buyer power
C) first-mover advantage
D) SWOT analysis
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476) When reviewing Porter’s value chain analysis, which of the following provides customer
support after the sale of goods and services?
A) inbound logistics
B) outbound logistics
C) operations
D) service
477) Which of the following represents procurement as part of the support value activities in a
value chain analysis?
A) purchases inputs such as raw materials, resources, equipment and supplies

B) applies MIS to processes to add value
C) distributes goods and services to customers
478) What includes support value activities and primary value activities and is used to
determine how to create the greatest possible value for customers?
A) supplier power
C) Porter’s Five Forces Model
D) value chain analysis
479) What is a standardized set of activities that accomplishes a specific task?
A) business strategy
B) business outcome
C) business process
D) knowledge process
480) Which of the following analyzes a company’s business processes and is useful for
determining how to create the greatest possible value for customers?
A) product analysis
B) primary supplier power
D) buyer chain analysis
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481) The goal of value chain analysis is to identify processes in which the firm can add value
for the customer and create a competitive advantage for itself, with a________Blank
or________Blank.
A) focused strategy; product differentiation

B) focused strategy; cost advantage
C) cost advantage; primary value activities
D) cost advantage; product differentiation
482) What are the two main categories in a value chain analysis?
A) primary value activities and secondary value activities

B) primary value activities and support value activities
C) primary value activities and strengthening value activities
D) None of the answer choices are correct.
483) Which of the following is not considered a category within the primary value activities in
a value chain analysis?
A) inbound logistics
B) firm infrastructure
C) operations
D) service
484) Which of the following is not considered a category within the support value activities in
a value chain analysis?
A) technology development
B) outbound logistics
C) human resource management
D) firm infrastructure
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485) What is the support value activity that provides employees with training, hiring, and
compensation?
A) procurement
B) operations resource management
C) human resource management
D) firm infrastructure
486) Sandy Fiero works as the chief knowledge officer for Bend Lumbar Company. She has
been given the responsibility to create a product or service that will bring an added value to its
customers to increase the company’s revenue. Sandy determines that the best value she can add
is by creating a service that offers free next-day shipping on any order over $50. Where in the
value chain is Sandy adding value?
A) primary value activity outbound logistics

B) primary value activity inbound logistics
C) primary value activity marketing and sales
D) primary value activity operations
487) When evaluating the value chain, all of the following are included in the primary value
activities except
A) inbound activities.
B) operations.
C) service.
D) MIS development.
488) When evaluating the value chain, which of the following is included in the support value
activities?
A) inbound activities
B) marketing and sales
C) firm infrastructure
D) finance and sales
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489) Which of the following decisions does a firm need to make as soon as it has identified the
activities from the value chain that are bringing the highest added value to their customers?
A) target high value-adding activities to further enhance their value

B) target low value-adding activities to increase their value
C) perform some combination of the two
490) MIS can add value to both primary activities and support activities in the value chain.
Which of the following is not an example of adding value by the use of MIS in a primary
activity?
A) creating an online system for employees to track paychecks, benefits, wellness

program rewards, and other employee benefit items
B) a system for the sales and marketing departments to track specific sales targets and
follow-up processes
C) an easy electronic survey, similar to the Survey Monkey, to be sent to the customer
right after a service is completed
D) using a custom order and delivery system through an easily accessible web portal for
the customer to track delivery status
491) MIS can add value to both primary and support activities within a business. Which of the
following is not an example of adding value by the use of MIS in a support activity?
A) creating a business strategy for the video rental market that delivers videos via the
mail
B) creating a tracking system to efficiently reward employees based on their performance
C) creating an online system for employees to track paychecks, benefits, wellness
program rewards, and other employee benefit items
D) creating a program to automatically order office supplies such as pens and pads of
paper for employees
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ESSAY. Write your answer in the space provided or on a separate sheet of paper.
492) Describe the information age and the differences between data, information, business
intelligence, and knowledge.
We live in the information age, when infinite quantities of facts are widely available to anyone
who can use a computer. The core drivers of the information age include data, information,
business intelligence, and knowledge. Data are raw facts that describe the characteristics of an
event or object. Information is data converted into a meaningful and useful context. Business
intelligence (BI) is information collected from multiple sources such as suppliers, customers,
competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic
decision making. Knowledge includes the skills, experience, and expertise, coupled with
information and intelligence that creates a person’s intellectual resources. As you move from
data to knowledge, you include more and more variables for analysis, resulting in better, more
precise support for decision making and problem solving.
493) Identify the different departments in a company and why they must work together to
achieve success.
Companies are typically organized by department or functional area such as accounting, finance,
human resources, marketing, operations management, and sales. Although each department has
its own focus and own data, none can work independently if the company is to operate as a
whole. It is easy to see how a business decision made by one department can affect other
departments. Functional areas are anything but independent in a business. In fact, functional
areas are interdependent. Sales must rely on information from operations to understand
inventory, place orders, calculate transportation costs, and gain insight into product availability
based on production schedules. For an organization to succeed, every department or functional
area must work together sharing common information and not be a “silo.” Information
technology can enable departments to more efficiently and effectively perform their business
operations.
494) Explain the concept of data silos and provide an example of their effect on a company.
A data silo occurs when one business unit is unable to freely communicate with other business
units, making it difficult or impossible for organizations to work cross-functionally. As a result,
sales may not have accurate, current information from production on product availability, and
production may not fully understand the demand for the product.
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495) Define the six primary MIS-related strategic positions in an organization along with their
associated responsibilities.
The chief information officer (CIO) is responsible for overseeing all uses of information
technology and ensuring the strategic alignment of MIS with business goals and objectives. The
chief data officer (CDO) is responsible for determining the types of information the enterprise
will capture, retain, analyze, and share. The chief technology officer (CTO) is responsible for
ensuring the throughput, speed, accuracy, availability, and reliability of an organization’s
information technology. The chief security officer (CSO) is responsible for ensuring the security
of the MIS systems and developing strategies and MIS safeguards against attacks from hackers
and viruses. The chief privacy officer (CPO) is responsible for ensuring the ethical and legal use
of information within an organization. The chief knowledge officer (CKO) is responsible for
collecting, maintaining, and distributing the organization’s knowledge.
496) Explain systems thinking and how management information systems enable business
communications.
A system is a collection of parts that link to achieve a common purpose. Systems thinking is a
way of monitoring the entire system by viewing multiple inputs being processed or transformed
to produce outputs while continuously gathering feedback on each part. Feedback is information
that returns to its original transmitter (input, transform, or output) and modifies the transmitter’s
actions. Feedback helps the system maintain stability. Management information systems (MIS) is
a business function, like accounting and human resources, which moves information about
people, products, and processes across the company to facilitate decision making and problem
solving. MIS incorporates systems thinking to help companies operate cross-functionally. For
example, to fulfill product orders, an MIS for sales moves a single customer order across all
functional areas including sales, order fulfillment, shipping, billing, and finally customer service.
Although different functional areas handle different parts of the sale, thanks to MIS, to the
customer the sale is one continuous process.
497) Explain why competitive advantages are temporary.
A competitive advantage is a feature of a product or service on which customers place a greater

value than they do on similar offerings from competitors. Competitive advantages provide the
same product or service either at a lower price or with additional value that can fetch premium
prices. Unfortunately, competitive advantages are typically temporary because competitors often
quickly seek ways to duplicate them. In turn, organizations must develop a strategy based on a
new competitive advantage. Ways that companies duplicate competitive advantages include
acquiring the new technology, copying business processes, and hiring away employees.
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498) Describe Porter’s Five Forces Model and explain each of the five forces.
Porter’s Five Forces Model analyzes the competitive forces within the environment in which a
company operates, to assess the potential for profitability in an industry. Buyer power is the
ability of buyers to affect the price they must pay for an item. Supplier power is the suppliers’
ability to influence the prices they charge for supplies (including materials, labor, and services).
Threat of substitute products or services is high when there are many alternatives to a product or
service and low when there are few alternatives from which to choose. Threat of new entrants is
high when it is easy for new competitors to enter a market and low when there are significant
entry barriers to entering a market. Rivalry among existing competitors is high when competition
is fierce in a market and low when competition is more complacent.
499) Compare Porter’s three generic strategies.
Organizations typically follow one of Porter’s three generic strategies when entering a new
market: (1) broad cost leadership, (2) broad differentiation, or (3) focused strategy. Broad
strategies reach a large market segment. Focused strategies target a niche market. Focused
strategies concentrate on either cost leadership or differentiation.
500) Demonstrate how a company can add value by using Porter’s value chain analysis.
To identify competitive advantages, Michael Porter created value chain analysis, which views a
firm as a series of business processes that each adds value to the product or service. The goal of
value chain analysis is to identify processes in which the firm can add value for the customer and
create a competitive advantage for itself with a cost advantage or product differentiation. The
value chain groups a firm’s activities into two categories: primary value activities and support
value activities. Primary value activities acquire raw materials and manufacture, deliver, market,
sell, and provide after-sales services. Support value activities, include firm infrastructure, human
resource management, technology development, and procurement. Not surprisingly, these
support the primary value activities
501) Explain a digital value chain and explain how it benefits a company.
Digital value chain: Digitizes work across primary and supporting activities. A digital value
chain allows primary activities to connect digitally to help speed up the transition from sales to
manufacturing. Advances in production equipment used in robotics and 3D printing speed up
production to smart finished products (such as connected cars and IoT devices).
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2) Diagnostic analytics is information collected from multiple sources such as suppliers,

3) Business intelligence is information collected from multiple sources such as suppliers,

8) Zappos primary business focus is to sell books and competitive intelligence.

16) Predictive analytics is a world where interconnected, Internet-enabled devices or “things”

25) Volume in big data includes the scale of data.

29) Big data is a view of data at a moment in time.

30) A snapshot is a view of data at a particular moment in time.

34) Descriptive analytics describes past performance and history.

41) Diagnostic analytics describes past performance and history.

52) A business unit is a segment of a company representing a specific business function.

57) The operations management department manages the process of converting or

102) A stakeholder is a person or group that has an interest or concern in an organization.

103) Cars, groceries, and clothing are all examples of goods.

120) A SWOT analysis evaluates an organization’s strengths, weaknesses, opportunities, and

121) A SWOT analysis evaluates an organization’s strengths, weaknesses, objectives, and

122) A SWOT analysis evaluates an organization’s strengths, worries, opportunities, and

123) In a SWOT analysis, strengths and weaknesses originate inside an organization, or

144) Buyer power is included as one of Porter’s three generic strategies.

160) Why do students need to study management information systems?

A) Management information systems are everywhere in business.

161) What is the confirmation or validation of an event or object?

166) What is data?

A) raw facts that describe the characteristics of an event or object

167) What is information?

A) raw facts that describe the characteristics of an event or object

168) What is business intelligence?

A) raw facts that describe the characteristics of an event or object

169) What is knowledge?

A) raw facts that describe the characteristics of an event or object

170) Which of the following is considered information?

171) Which of the following is considered data?

A) Craig Newmark is customer number 15467.

A) Craig Newmark is customer number 15467.

A) Craig Newmark is customer number 15467.

A) Who are my best customers?

176) Which of the following provides an example of information?

A) Who is customer number 12345XX?

177) Which of the following provides an example of data?

A) Who are my best customers?

A) supplier source systems

A) data, information, business intelligence, knowledge

180) Which of the following represents the definition of a variable?

A) a data characteristic that is collected through competitive intelligence and cannot

184) What is data converted into a meaningful and useful context?

186) What refers to devices that connect directly to other devices?

188) What is the Internet of Things?

A) a world where interconnected, Internet-enabled devices or “things” can collect and

189) Which of the following definitions describes machine-to-machine?

A) a world where interconnected, Internet-enabled devices or “things” can collect and

190) What is predictive analytics?

A) a world where interconnected, Internet-enabled devices or “things” can collect and

A) business intelligence manager

192) What role does a data analyst perform?

A) understanding of math and statistics

194) What is the science of fact-based decision making?

196) What describes past performance and history?

199) What are business analytics?

200) What are descriptive analytics?

A) examines data or content to answer the question, “Why did it happen?”