ESS_7E_tstbank_CH02.doc

Chapter 2 E-Business: How Businesses Use Information Systems True-False Questions Operational management is responsible for directing the day-to-day operations of the business. Answer: True Difficulty: Easy Reference: p. 44 Deciding whether to introduce a new product line is the responsibility of an operational manager. Answer: False Difficulty: Easy Reference: p. 47 Operational-level manufacturing systems deal with the firm’s long-term manufacturing goals, such as where to locate a new plant. Answer: False Difficulty: Medium Reference: p. 48 Transaction processing systems are most commonly encountered at the management level of an organization. Answer: False Difficulty: Medium Reference: p. 51-53 A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Answer: True Difficulty: Easy Reference: p. 51 A hotel reservation system is a typical example of a management information system. Answer: False Difficulty: Medium Reference: p. 51 Management-level systems do not support nonroutine decision making. Answer: False Difficulty: Medium Reference: p. 53-55 The decision to grant credit to a customer is normally made by the middle manager. Answer: False Difficulty: Medium Reference: p. 53 Transaction processing systems are the basic business systems that serve the operational level of the organization. Answer: True Difficulty: Medium Reference: p. 53 Managers need TPSs to monitor the status of internal operations and the firm’s relations with the external environment. Answer: True Difficulty: Medium Reference: p. 53 Most MISs use sophisticated mathematical models or statistical techniques. Answer: False Difficulty: Medium Reference: p. 54 Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance. Answer: True Difficulty: Easy Reference: p.54 Decision-sup