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638     PART 6  Managing Business Operations, Management Information Systems, and the Digital Enterprise




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          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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