HW1 study guide (will be included in quiz1)

1. As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T?
a. low-cost leadership
b. focus on market niche
c. customer and supplier intimacy
d. product differentiation
Answer: D
2. According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment.
a. microeconomic
b. macroeconomic
c. sociotechnical
d. behavioral
Answer: A
3. All of the following are major features of organizations that impact the use of information systems EXCEPT for
a. business processes.
b. environments.
c. goals.
d. agency costs.
Answer: D
4. Business processes are collections of
a. informal practices and behaviors.
b. formalized and documented practices.
c. routines.
d. rights and privileges.
Answer: C
5. Mintzberg"s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n)
a. entrepreneurial structure.
b. divisionalized bureaucracy.
c. professional bureaucracy.
d. adhocracy.
Answer: C
6. A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy.
a. machine
b. professional
c. divisionalized
d. multidivisional
Answer: A
7. The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as
a. switching costs.
b. transaction costs.
c. procurement.
d. agency costs.
Answer: B
8. According to agency theory, the firm is viewed as a(n)
a. unified, profit-maximizing entity.
b. task