Question 1

If the silo effect is a consequence,why do companies organize by business function?

Accepted Answer

A) Because specialization allows companies to be more efficient. 
B) Because one person completing all tasks of a process is more efficient. 
C) Because functional organizations can more easily downsize,minimizing labor costs. 
D) Because it's always been done that way. A

Question 2

__________ can also be referred to as a profit and loss (P&L)statement.

Accepted Answer

A) Income Statement 
B) Balance Statement 
C) Chart of Accounts 
D) Statement of Income A

Question 3

Which of the following processes involves making products in-house?

Accepted Answer

A) Procurement Process 
B) Production Process 
C) Fulfillment Process 
D) Hiring Process B

Question 4

Which is not a skill of a knowledge worker?

Accepted Answer

A) Business competency 
B) Strategic thinking 
C) Information literacy 
D) Communication and collaboration

Question 5

___________ indicate(s)the financial condition of a company over a specific period of time.

Accepted Answer

A) Income Statement 
B) Balance Statement 
C) Chart of Accounts 
D) Statement of Income

Question 6

Which of the following processes is triggered when someone in the company determines that a specific quantity of a certain material is needed?

Accepted Answer

A) Procurement Process 
B) CRM Process 
C) Fulfillment Process 
D) Hiring Process

Question 7

A sequence of tasks or activities that takes a set of inputs and converts them into desired outputs is called:

Accepted Answer

A) globalization 
B) Income statement 
C) a business process 
D) an ERP system

Question 8

Why do we study the global competitive environment?

Accepted Answer

A) Because doing business globally can provide access to cheaper resources which reduce costs and increase the number of potential customers which increases sales. 
B) Because outsourcing is making manufacturing in the U.S.a thing of the past. 
C) Because,as a knowledge worker,I'll probably be required to work overseas someday. 
D) Because MIS is difficult to understand without it.

Question 9

From the sidebar cases in Essentials of "Business" by Magal,which company produces make-to-order goods,meaning they assemble products only after receiving a customer order?

Accepted Answer

A) Dell 
B) Apple 
C) Nike 
D) Cisco

Question 10

Which activity would likely be performed by a knowledge worker?

Accepted Answer

A) Creating a Purchase Requisition when inventory falls below a reorder point. 
B) Converting a Requisition into a PO and sending it to a vendor. 
C) Receiving a shipment from a vendor. 
D) Deciding whether to outsource manufacturing.

Question 11

___________ indicates the financial condition of a company at a specific point in time.

Accepted Answer

A) Income Statement 
B) Balance Sheet 
C) Chart of Accounts 
D) Statement of Income

Question 12

All of the following are disadvantages of a paper-based process except?

Accepted Answer

A) the silo effect 
B) delays 
C) excess inventory 
D) lack of visibility

Question 13

According to "Essentials of Business" by Magal,why did Apple Inc.decide to have its products made by an outside contract manufacturer?

Accepted Answer

A) So it could stick to its core competency of designing easy-to-use and engaging hardware and software products. 
B) Because the contract manufacturer used cheaper labor which allowed Apple to cut costs and increase profits. 
C) Because the theories of globalization suggested it was a good strategy. 
D) To provide a higher quality product.

Question 14

Select the most accurate statement.

Accepted Answer

A) Lead time is the amount of time between placing a PO and receiving goods. 
B) Cycle time is similar but measures the time to complete the fulfillment process. 
C) Both the above are true. 
D) Neither of the above are true.

Exam 1: A: Organizations, Processes, and Information Systems