ism midterm

7/28/2019 Ism Midterm

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Name Chapter 1: Business Functions and Business Processes

Description

Instructions Modify

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Question 1 True/False 0 points Modify Remove

Question One of the four functional areas of operation is Human Resources (HR).

Answer True

False

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Question Historically, businesses have had organizational structures that separated the functional areas, but business schools have notbeen organized like that.

Answer True

False

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Question Information systems that are designed so functional areas share data are called integrated information systems.

Answer True

False

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Question The functional area of Supply Chain Management (SCM) sets prices.

Answer True

False

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Question Sales forecasts are historical records of sales.

Answer True

False

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Question Accounts receivable are recorded by the Human Resources department (HR).

Answer True

False

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Question The business function of government compliance falls under the Supply Chain Management functional area of operation.

Answer True

False

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Question The business process of Cash Flow Management is handled under the Accounting and Finance functional area of operation.

Answer True

False

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Question When manufacturing runs out of raw materials, its known as a stockout.

Answer True

False

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Question To avoid stockouts, manufacturers might carry extra raw materials. This excess is known as safety stock.

Answer True

False

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Question 11 Multiple Choice 0 points Modify Remove

Question Which of the following is a functional area of operation?

Answer Packaging

Supply Chain Management

Shipping

Baking

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Question Which business function is performed by Accounting and Finance?

Answer Cost allocation and control

Taking sales orders

Benefits

Plant maintenance

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Question What are the computers, people, procedures, and software that store, organize, and deliver information in an organization?

Answer The CPU

The Process System

Information systems

Personnel systems

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Question Todays managers are beginning to think in terms of business process. A business process cuts across which functional areasof operation?

Answer Marketing and Sales


Accounting and Finance

Human Resources All of the above

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Question Information systems that can be designed so that functional areas of operation share data are called:

Answer Integrated information systems

Complete information systems

Non-middleware information systems

Linked information systems

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Question Analyses that attempt to predict the future sales of a product are called:

Answer Sales forecasts

Sales divining

Sales diving

Sales deriving

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Question Which of the following is an input to the Marketing and Sales functional area?

Answer Production plans

Raw material orders

Per-unit cost

Accounts payable data

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Question Which of the following outputs would emerge from the Accounting and Finance functional area?

Answer Packaging orders

Sales strategy

Regulation compliance

Financial reports

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Question When purchasing a computer, the functional area responsible for handling the financial help for purchasing that computer is




Human Resources

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Question When purchasing a computer, the functional area responsible for technical support is




Human Resources

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Question When manufacturing runs out of raw material, its known as a(n)

Answer Shortfall

Empty shelf

Depletion

Stockout

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Question ____ results in management overinvesting in extra raw materials

Answer Bulging raw materials

Stockup

Safety stock

Excess baggage

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Question Which of the following is an input to HR?

Answer Personnel forecasts

Sales data

Layoff and recall company policy

Travel expense company policy

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Question 24 Fill in the Blank 0 points Modify Remove

Question ____________________ programs are core software used by companies to coordinate information in every area of thebusiness.

Answer Enterprise Resource PlanningERP

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Question A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer is called a_________ ___________.

Answer business process

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Question The business functions of financial accounting, cost allocation and control, planning and budgeting, and cash-flowmanagement take place in the ____________________ functional area of operation.

Answer Accounting and FinanceA/F

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Question One example of the business function that happens in the human resource area of operation would be_________ ___________.

Answer Recruiting and hiringTrainingPayrollBenefitsGovernment compliance

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Question An ____________________ includes the computers, people, procedures, and software that store, organize, and deliverinformation.

Answer Information systemsIS

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Question Information systems designed so that functional areas share data are called ____________________.

Answer integrated information systemsintegrated IS

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Question A shortfall of raw materials is known as a ____________________.

Answer Stockout

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Question To avoid stockouts, manufacturers might carry extra raw materials known as ____________________.

Answer Safety stock

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Question 32 Essay 0 points Modify Remove


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Question Describe the difference between functional areas of operation and business processes. Give an example of a businessprocess.

AnswerMost companies have four main functional areas of operation. Each area comprises a variety of narrower business functions,which are activities specific to that functional area of operation.Recall that a business process is a collection of activities that takes one or more kinds of input and creates an output that is ofvalue to the customer.

Thinking in terms of business processes helps managers to look at their organization from the customers perspective. Forexample, suppose that a customer wants to purchase a new computer.

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Question What are integrated information systems?

AnswerSharing data effectively and efficiently between and within functional areas leads to more efficient business processes.Information systems can be designed so that functional areas share data. These systems are called integrated informationsystems.

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Question Give some examples of Marketing and Sales in a small business such as a lemonade stand or some other simple example.

AnswerFor the most part, this is a cash business and does not require formal record keeping, but you still need to keep track of yourcustomers so that you can send flyers to repeat customers or send occasional thank you notes. Thus, your records must shownot only the amount of sales, but also must identify repeat customers.Product development can be done informally in such a simple business; you gather information about who buys which kind oflemonade and note what customers say about each product. You also analyze historical sales records to spot trends that arenot obvious.

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Question Choose an example company and give situations for each business process in the following figure. Depending on your majoror interest, choose one functional area of operation.

AnswerDepending on the company chosen, and the major, answers will vary. For example, if a student is interested in HR in anengineering firm, they might discuss the process for recruiting and hiring a graduating senior from their university. Then theycould describe some training courses the new engineer would take. Payroll and benefits to the new employee should bediscussed. Finally, government compliance such as the equal opportunity act could also be mentioned.

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Question What departments are involved in the business process of selling a new computer?

AnswerRefer to the following figure for answers:

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Question Describe the material order process in the following figure:


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AnswerWhen production is alerted to a new order, if raw materials are needed for this order, then production prompts purchasing toarrange for the purchase and delivery of raw materials. Accounting must pay for those raw materials. They are delivered to theLogistics function and then sent to production to make the order.

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