1. ________ is a measure of the ratio of process outputs to inputs.

✓ Process efficiency

◦ Process effectiveness

◦ Process reliability

◦ Process conformance

◦ Process consistency
2. According to Porter's five forces model, which of the following firms would
be least affected by the threat of substitutes?

◦ a food vendor at a county fair

◦ a used car dealership in New York

✓ a firm that sells the only drug for a disease

◦ a corner latte shop in Atlanta

◦ a convenience store that sells retail products

3. Which of the following is an example of PaaS, a category of cloud hosting?

◦ Microsoft Office 365

✓ Microsoft Azure

◦ iCloud

◦ Amazon S3

◦ Skype
4. An automobile company decides to improve the quality of its products and
bring more variety into its entire product line. The company has decided to adopt
________.

◦ focused cost leadership

✓ industry-wide differentiation

◦ industry-wide cost leadership

◦ focused differentiation

◦ broad differentiation
5. Which of the following value chain activities involves inducing buyers to
purchase a product and providing a means for them to do so?

◦ operations

◦ customer service

◦ outbound logistics

◦ inbound logistics

✓ sales and marketing

6. Which of the following workgroup processes is related to operations?

◦ account updating and tracking

◦ treasury and account management

✓ finished goods inventory management

◦ account tracking

◦ sales forecasting
7. Which of the following factors determines the structure, features, and
functions of an information system used in a company

◦ the size of the company

◦ the value of its brands

◦ the company's PE ratio

✓ the competitive strategy

◦ the number of competitors

8. According to Porter's five forces model, in which of the following situations
would the supplier have the highest bargaining power?

◦ a restaurant owner who serves only army veterans

◦ a fashion designer catering to a niche market

✓ a dealer of a patented material for smartphone manufacturers

◦ a defense contractor that only makes products for the U.S. Navy

◦ a retailer who buys finished goods from many small suppliers

9. Layla runs a startup that makes custom engraved floor tiles. Her business is
growing rapidly and she needs a cloud vendor to provide her with an operating
system and a database management system. In this scenario, which of the following
services will the vendor provide?

◦ IaaS

◦ CDN

✓ PaaS

◦ Web hosting

◦ VPN
10. Which of the following is an example of SaaS?

✓ iCloud

◦ Oracle On Demand

◦ Amazon S3

◦ Microsoft Azure

◦ Google App Engine

11. Which of the following is a solution for problems arising from information
silos?

◦ implementation of a data concentration server

◦ departmentalization of an organization

◦ isolating functional applications

◦ limiting communication to top-level management

✓ integrating data into a single database
12. Dallas is an analyst at an online retailer. He is great at creating representative
diagrams showing the relationships between customer purchases, billing, and
shipment. This indicates that he has ________ skills.

◦ systems thinking

◦ collaborative

✓ abstract reasoning

◦ spatial intelligence

◦ experimental
13. Sina looks over annual performance evaluations for all employees in the sales
department. Based on their performance, she determines who is eligible for merit-
based salary increases. Sina belongs to the ________ workgroup.

◦ operations

◦ customer service

✓ human resources

◦ marketing

◦ sales
14. ________ states that the value of a network is equal to the square of the
number of users connected to it.

◦ Moore's Law

✓ Metcalfe's Law

◦ Bell's Law

◦ Nielsen's Law

◦ Flynn's Law
15. ________ are formally defined, standardized processes that involve day-to-
day operations.
✓ Structured processes

◦ Kinetic processes

◦ Unstructured processes

◦ Dynamic processes

◦ Benchmarked processes
16. According to Porter's five forces model, a student's choice of lunch options at
a large food court would be an example of a strong force for ________.

◦ bargaining power of customers

◦ threat of new entrants

✓ threat of substitutions

◦ industry power

◦ rivalry
17. Which of the following workgroup processes is related to sales and
marketing?

◦ HR planning

◦ customer support

◦ order management

◦ accounts receivable

✓ lead tracking
18. Identify the activity in the value chain that involves receiving and handling of
raw materials and other inputs to the product.

✓ inbound logistics

◦ procurement

◦ manufacturing

◦ outbound logistics
◦ optimized ordering

19. ________ processes span an organization and support activities in multiple

departments.

✓ Enterprise

◦ Strategic

◦ Clustered

◦ Inter-enterprise

◦ Reactive
20. After making minor changes to a team report, Jeff felt like he had done
enough work on the project. When he was asked to contribute more, he got offended
and quit responding to requests from some team members. Jeff's inability to receive
critical feedback indicates a lack of ________ skills.

◦ abstract reasoning

◦ experimentation

◦ systems thinking

✓ collaboration

◦ ideation
21. SmartToy Corporation's current market strategy is to gain a larger share of
the high-end toy market by integrating IBM's AI, named Watson, into its teddy
bears. The new line of AI enhanced teddy bears is a hit. SmartToy's market share
increases fivefold. This is an example of the company's ________.

◦ conformity

◦ competence

◦ efficiency

◦ reliability

✓ effectiveness
22. Which of the following is the most basic cloud offering?

◦ SaaS

◦ CDN

✓ IaaS

◦ VPN

◦ SAS
23. Which of the following statements is TRUE about workgroup information
systems?

◦ They are easy to change.

◦ They minimize data duplication among departments.

◦ They can be operated without training.

✓ They support 10 to 100 users.

◦ They support 1,000+ users.

24. Cloud resources are ________ because many different organizations use the
same physical hardware.

◦ elastic

✓ pooled

◦ programmatic

◦ portable

◦ shared
25. Supply chain management is an example of a(n) ________.

◦ enterprise information system

✓ inter-enterprise information system

◦ personal information system

◦ departmental information system

◦ macro-enterprise information system

26. Which of the following value chain activities involves collecting, storing, and
physically distributing the product to buyers?

◦ customer service

◦ sales and marketing

◦ inbound logistics

◦ operations

✓ outbound logistics
27. ________ is the ability to model the components of a system, to connect the
inputs and outputs among those components into a sensible whole that reflects the
structure and dynamics of the phenomenon observed.

◦ Abstract reasoning

✓ Systems thinking

◦ Collaboration

◦ Experimentation

◦ Function modeling
28. The automobile industry is characterized by many manufacturers and intense
competition among them. According to Porter's five forces model, this statement
illustrates ________.

◦ low bargaining power of customers

◦ low threat of substitutions

◦ high bargaining power of suppliers

◦ low levels of rivalry

✓ high levels of rivalry

29. ________ is most likely to be outsourced to the lowest bidder.
◦ Systems thinking

◦ Ability to collaborate

✓ Routine skill

◦ Ability to experiment

◦ Abstract reasoning skill

30. Focused differentiation occurs when ________.

◦ customers, of a niche segment, are provided low-cost products

◦ lowest cost across the industry

✓ better service is provided within an industry segment

◦ product quality improves across an entire industry

◦ there is limited competition in an industry

31. The two dimensions of process quality are ________.

◦ perception and serviceability

◦ ease of use and usability

✓ efficiency and effectiveness

◦ conformance and durability

◦ performance and reliability

32. The difference between the value that an activity generates and the cost of the
activity is called the ________.

✓ margin

◦ turnover

◦ revenue

◦ profit

◦ quick ratio
33. Which of the following workgroup processes is related to manufacturing?

◦ product and brand management

◦ compensation

◦ finished goods inventory management

✓ capacity planning and scheduling

◦ order entry and tracking

34. A manager will essentially require ________ skills to test ideas clearly on a small
scale, before taking bigger risks or committing significant resources to a larger
project.

✓ experimentation

◦ social

◦ collaboration

◦ systems thinking

◦ interpersonal
35. Dollar Bill Supermarket is one of the best in the city. However, shoppers
prefer other supermarkets to it as there is always a long queue at the billing counter.
The outdated billing registers make the entire process inefficient. Which of the
following steps should the supermarket management take to improve the billing
process?

◦ limit the number of products customers can buy

◦ limit the number of customers in the supermarket

◦ change the process structure

✓ change process resources

◦ change the process requirements

36. ________ are large-scale high-speed centralized computers, used for internal
corporate data processing needs.

✓ mainframes
◦ thin clients

◦ hosts

◦ NAS

◦ clients
37. Compared to in-house hosting, cloud-based hosting ________.

◦ provides greater control over the location of data

◦ requires a significant amount of capital

◦ provides better visibility of security and disaster preparedness capabilities

◦ requires significant development effort

✓ minimizes the risk of investing in technology that will soon become obsolete
38. Which of the following is an example of a structured process?

◦ ill-defined situations

◦ new product offerings

◦ collaboration

✓ customer returns

◦ social networking
39. Which of the following is an example of IaaS?

✓ Amazon S3

◦ Office 365

◦ Salesforce.com

◦ Microsoft Azure

◦ Apple iCloud
40. According to Porter's five forces model, in which of the following examples
would rivalry be considered as a weak force affecting the market?
✓ search engine designers

◦ holiday tour agents

◦ insurance providers

◦ packaged food manufacturers

◦ used car dealers