3. The Internet raises the bargaining power of customers by ________.
(A) lowering transaction costs.
(B) creating new opportunities for building loyal customer bases.
(C) making information available to everyone.
(D) making more products available.

Multiple Choice (4 points for each question) 1. An information system can enhance core competencies by ________. (A) creating educational opportunities for management. (B) providing better reporting facilities. (C) allowing operational employees to interact with management. (D) encouraging the sharing of knowledge across business units.

2. Which systems are typically a major source of data for other systems? (A) decision-support systems (B) management information systems (C) executive support systems (D) transaction processing systems

4. To monitor the status of internal operations and the firm's relations with the external environment, managers need ________ systems. (A) knowledge (B) management information (C) transaction processing (D) decision-support

5. ________ systems integrate supplier, manufacturer, distributor, and customer logistics processes. (A) Supply-chain management (B) Reverse logistics (C) Collaborative distribution (D) Enterprise planning

6. Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's. (A) networked environment. (B) data management environment. (C) IT infrastructure. (D) information system.

7. Organizational culture is best described by which of the following statements? (A) It is a set of assumptions and values accepted by most members. (B) It encompasses the sum of beliefs and assumptions by all members. (C) It reflects the senior management's perspective on the organization and goals. (D) It enables the organization to transcend the different levels and specialties of its employees.

8. Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective? (A) improved flexibility (B) competitive advantage (C) improved business practices (D) survival

9. The six important business objectives of information technology are new products, services, and business models； customer and supplier intimacy； survival； competitive advantage； operational excellence； and ____________ (A) improved business practices. (B) improved efficiency. (C) improved decision making. (D) improved flexibility. 

10. Which of the following decisions requires knowledge based on collaboration and interaction? (A) How long will it take to manufacture this product? (B) In which geographical locations are our products garnering the most sales? (C) Should we work with outside vendors on new products and services? (D) Which product design is the most efficient for the user in terms of energy use?

11. A virtual company ________. (A) uses the capabilities of other companies without being physically tied to those companies. (B) uses Internet technology to maintain a virtual storefront. (C) provides entirely Internet-driven services, or virtual products. (D) uses Internet technology to maintain a networked community of users.

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