BUS410, Home Work, Chapters 3, 4 Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An example of a professional bureaucracy is a A) small startup firm. C) mid-size manufacturing firm. 1) B) school system. D) consulting firm. 2)

2) 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. 3) The secondary activities of a firm include A) inbound logistics, technology, outbound logistics, sales and marketing, and service. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. C) organization infrastructure, human resources, sales and marketing, and technology. D) organization infrastructure, human resources, technology, and procurement. 4) A firm can exercise greater control over its suppliers by having A) more suppliers. B) fewer suppliers. C) global suppliers. D) local suppliers. 5) To what competitive force did the printed encyclopedia industry succumb? A) positioning and rivalry among competitors B) low cost of entry C) substitute products or services D) customer's bargaining power 6) How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm? A) It sees information systems as a way to rearrange the inputs and outputs of the organization. B) It sees capital and labor as primary production factors. C) It sees the inputs and outputs, labor and capital, as being infinitely malleable. D) It sees the organization as a social structure similar to a machine. 7) The most successful solutions or methods for achieving a business objective are called A) value activities. B) best processes. C) core competencies. D) best practices. 8) The introduction of new information technology has a A) dampening effect on the discourse of business ethics. B) ripple effect raising new ethical, social, and political issues. C) beneficial effect for society as a whole, while raising dilemmas for consumers. D) waterfall effect in raising ever more complex ethical issues. 1

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9) The Federal Trade Commission FIP principle of Notice/Awareness states that A) customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction. B) data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use. C) there is a mechanism in place to enforce FIP principles. D) Web sites must disclose their information practices before collecting data. 10) An organization is a A) stable, formal social structure that takes resources from the environment and processes them to produce outputs. B) formal, legal entity with internal rules and procedures that must abide by laws. C) collection of social elements. D) b and c E) a, b, and c 11) The four major types of competitive strategy are A) low-cost leadership; substitute products and services; customers; and suppliers. B) low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. C) new market entrants; substitute products and services; customers; and suppliers. D) low-cost leadership; new market entrants; product differentiation; and focus on market niche. 12) The Online Privacy Alliance A) encourages self-regulation to develop a set of privacy guidelines for its members. B) protects user privacy during interactions with Web sites. C) has established technical guidelines for ensuring privacy. D) is a government agency regulating the use of customer information. 13) Which of the following is NOT one of the competitive forces? A) suppliers B) other competitors C) external environment D) customers 14) The practice of spamming has been growing because A) telephone solicitation is no longer legal. B) it is good advertising practice and brings in many new customers. C) it helps pay for the Internet. D) it is so inexpensive and can reach so many people. 15) The most common source of business system failure is A) software bugs. B) software errors. C) hardware or facilities failures. D) data quality. 16) When a cookie is created during a Web site visit, it is stored A) on the Web site computer. B) on the visitor's computer. C) on the ISP's computer. D) in a Web directory.

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17) FIP principles are based on the notion of the A) accountability of the record holder. B) responsibility of the record holder. C) mutuality of interest between the record holder and the individual. D) privacy of the individual. 18) The ethical rules discussed in the textbook A) are based on political philosophies. B) cannot be guides to actions. C) cannot be applied to many e-commerce situations. D) do not allow for competing values. 19) Which of the following is not one of the five steps discussed in the chapter as a process for analyzing an ethical issue? A) assign responsibility B) identify the stakeholders C) identify the options you can reasonably take D) identify and clearly describe the facts 20) An information system can enhance core competencies by A) providing better reporting facilities. B) creating educational opportunities for management. C) allowing operational employees to interact with management. D) encouraging the sharing of knowledge across business units. 21) The strength of patent protection is that it A) puts the strength of law behind copyright. B) allows protection from Internet theft of ideas put forth publicly. C) is easy to define. D) grants a monopoly on underlying concepts and ideas. 22) Which of the following would NOT be considered a disruptive technology? A) instant messaging B) e-mail C) Internet telephony D) PCs 23) The ethical "no free lunch" rule states that A) if an action cannot be taken repeatedly, then it is not right to be taken at any time. B) one should take the action that produces the least harm or incurs the least cost. C) one can put values in rank order and understand the consequences of various courses of action. D) everything is owned by someone else, and that the creator wants compensation for this work. 24) A substitute product of most concern for a cable TV distributor is A) satellite TV. B) broadcast TV. C) satellite radio.

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25) In the information age, the obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within the moral dimension of A) family and home. B) property rights and obligations. C) system quality. D) quality of life. 26) Immanuel Kant's Categorical Imperative states that A) if an action cannot be taken repeatedly, then it is not right to be taken at any time. B) one should take the action that produces the least harm or incurs the least cost. C) one can put values in rank order and understand the consequences of various courses of action. D) if an action is not right for everyone to take, it is not right for anyone to take. 27) 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. 28) Which of the following U.S. laws gives patients access to personal medical records and the right to authorize how this information can be used or disclosed? A) HIPAA B) Gramm-Leach-Bliley Act C) Privacy Protection Act D) Freedom of Information Act 29) Which of the five moral dimensions of the information age do the central business activities of ChoicePoint raise? A) property rights and obligations B) system quality C) accountability and control D) information rights and obligations 30) 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. 31) Amazon's use of the Internet as a platform to sell books illustrates a tactical use of information services for A) low-cost leadership. B) product differentiation. C) focusing on market niche. D) strengthening customer intimacy. 32) Which of the following can force a business and its competitors to compete on price alone? A) transparent marketplace B) high product differentiation C) poor process efficiency D) demand control 33) Wal-Mart's continuous replenishment system allows it to: A) provide mass customization. B) provide an efficient customer response system. C) strengthen customer intimacy. D) achieve economy of scale.

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34) According to agency theory, the firm is viewed as a(n): A) unified, profit-maximizing entity. B) task force organization that must respond to rapidly changing environments. C) entrepreneurial endeavor. D) "nexus of contracts" among self-interested individuals. 35) Re-designing and automating business processes can be seen as a double-edged sword because A) increases in efficiency may be accompanied by job losses. B) increases in efficiency may be accompanied by poor data quality. C) support for middle-management decision making may be offset by poor data quality. D) reliance on technology results in the loss of hands-on knowledge. 36) Advances in data storage techniques and rapidly declining storage costs have A) been accompanied by relevant federal statutes protecting personal data. B) made universal access possible. C) doubled every 18 months. D) made routine violations of privacy cheap and effective. 37) An information system can enable a company to focus on a market niche through A) complex trend forecasting. B) tailoring products to the client. C) intensive product trend analysis. D) intensive customer data analysis. 38) The P3P standard is concerned with A) controlling pop-up ads based on user profiles and preventing ads from collecting or sending information. B) allowing users to surf the Web anonymously. C) scrambling data so that it can't be read. D) blocking or limiting cookies. 39) "Look and feel" copyright infringement lawsuits are concerned with A) the distinction between tangible and intangible ideas. B) the distinction between an idea and its expression. C) using the graphical elements of another product. D) using the creative elements of another product. 40) The feature of social institutions that means mechanisms are in place to determine responsibility for an action is called A) due process. B) accountability. C) the courts of appeal. D) the judicial system.

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