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638 PART 6 Managing Business Operations, Management Information Systems, and the Digital Enterprise
Test Prepper
You’ve read the chapter, studied the key terms, and the exam is any day now. Think you are ready to ace it? Take
this sample test to gauge your comprehension of chapter material. You can check your answers at the back of
the book.
True/False Questions a. virtual enterprise.
Please indicate if the following statements are true or b. networked enterprise.
false. c. digital enterprise.
d. modern enterprise.
1. Business processes are the unique ways in
e. e-enterprise.
which companies organize, coordinate, and
execute activities, information, and 2. The Internet capability that is one of the
knowledge in order to produce goods or reasons why the Internet has become so
services. popular in a short period of time is the
2. A digital enterprise is a business a. World Wide Web.
organization where some of the major b. International Web.
business processes are digitally enabled. c. Electronic Web.
d. Networked Web.
3. An intranet is a network that links the
e. Digital Web.
extranet resources of a company with other
organizations. 3. The type of network that has become the
predominant information architecture for
4. Enterprise resource planning systems offer
the digital enterprise is the
a solution to the problem of information
fragmentation. a. local area network.
b. wide area network.
5. Three of the major ERP software vendors
c. virtual network.
are Oracle, Microsoft, and SAP.
d. client/server network.
6. A company is following a best-of-breed
e. virtual private network.
approach when it adopts all its required
4. All of the following are ideas behind ERP
modules from a single ERP software vendor.
systems except
7. A well-known example of the lack of
a. storing all information in a single
information integration in a supply chain is
database.
the so-called bullwhip effect.
b. representing each business function by a
8. Two of the four basic supply chain
module.
management strategies are horizontal
c. designing the ERP system as a collection
integration and virtual collaboration.
of business processes, not business
9. An electronic payment system is the use of functions.
digital technologies to pay for goods and d. keeping information protected by a
services electronically. firewall.
10. One of the challenges of e-business is e. building the ERP system as a collection
security, because e-business transactions, of business processes, not business
including e-mail, pass through many functions.
computer systems on the Internet before 5. To address the globalization trends of
they reach their destination. businesses, ERP systems are
a. sold only to international companies.
Multiple-Choice Questions
b. multilanguage, multicurrency, and
Choose the best answer.
multinational.
1. A business organization where all major c. very easy to implement.
business processes and relationships with d. based on English as a universal language.
suppliers, customers, employees, managers, e. simplified with the use of one base
and shareholders are digitally enabled is currency.
called a(n)
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