1.1. state legislature.state legislature.

2.2. sports team.sports team.

3.3. organization.organization.

4.4. information system.information system.

5.5. Not sureNot sure

A stable, formal social A stable, formal social

structure that takes structure that takes

resources from the resources from the

environment and environment and

processes them to processes them to

produce outputs is a(n)…produce outputs is a(n)…

1.1. state legislature.state legislature.

2.2. sports team.sports team.

3.3. organization.organization.

4.4. information system.information system.

5.5. Not sureNot sure

A stable, formal social A stable, formal social

structure that takes structure that takes

resources from the resources from the

environment and environment and

processes them to processes them to

produce outputs is a(n)…produce outputs is a(n)…

An organization uses capital and labor provided by the environment and transforms them into An organization uses capital and labor provided by the environment and transforms them into products and services which, in turn, are consumed by environments in return for supply products and services which, in turn, are consumed by environments in return for supply inputs.inputs.

1.1. RightsRights

2.2. PrivilegesPrivileges

3.3. ObligationsObligations

4.4. LawsLaws

5.5. ResponsibilitiesResponsibilities

Which of the following is Which of the following is

notnot part of the collective, part of the collective,

realistic behavioral realistic behavioral

definition of an definition of an

organization?organization?

1.1. RightsRights

2.2. PrivilegesPrivileges

3.3. ObligationsObligations

4.4. LawsLaws

5.5. ResponsibilitiesResponsibilities

Which of the following is Which of the following is

notnot part of the collective, part of the collective,

realistic behavioral realistic behavioral

definition of an definition of an

organization?organization?

A realistic behavioral definition of an organization is that it is a collection of A realistic behavioral definition of an organization is that it is a collection of rights, privileges, obligations, and responsibilities that is delicately balanced rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution. over a period of time through conflict and conflict resolution.

1.1. Clear division of laborClear division of labor

2.2. Completely governed by lawsCompletely governed by laws

3.3. Impartial judgmentsImpartial judgments

4.4. HierarchyHierarchy

5.5. Explicit rules and proceduresExplicit rules and procedures

Which of following is Which of following is notnot

a structural characteristic a structural characteristic

of all organizations?of all organizations?

1.1. Clear division of laborClear division of labor

2.2. Completely governed by Completely governed by lawslaws

3.3. Impartial judgmentsImpartial judgments

4.4. HierarchyHierarchy

5.5. Explicit rules and Explicit rules and proceduresprocedures

Which of following is Which of following is notnot

a structural a structural

characteristic of all characteristic of all

organizations?organizations?

In some respects, all modern organizations are alike because they share common characteristics that help make them efficient.

1.1. Precise rulesPrecise rules

2.2. ProceduresProcedures

3.3. Written lawWritten law

4.4. Practices Practices

5.5. Not sureNot sure

Which of the Which of the

following is following is notnot a a

description of a description of a

routine for routine for

producing goods producing goods

and services?and services?

1.1. Precise rulesPrecise rules

2.2. ProceduresProcedures

3.3. Written lawWritten law

4.4. Practices Practices

5.5. Not sureNot sure

Which of the Which of the

following is following is notnot a a

description of a description of a

routine for routine for

producing goods producing goods

and services?and services?

Routines, sometimes called standard operating procedures, are precise rules, procedures, and practices that have been developed to cope with virtually all expected situations.

1.1. business processes.business processes.

2.2. business laws.business laws.

3.3. business concepts.business concepts.

4.4. best practices.best practices.

5.5. Not sureNot sure

A collection of routines A collection of routines

for producing goods for producing goods

and services is and services is

called…called…

1.1. business processes.business processes.

2.2. business laws.business laws.

3.3. business concepts.business concepts.

4.4. best practices.best practices.

5.5. Not sureNot sure

A collection of A collection of

routines for producing routines for producing

goods and services is goods and services is

called…called…

Business processes are collections of routines. A business firm in turn, is a collection of business processes.

1.1. business laws.business laws.

2.2. best practices.best practices.

3.3. organizational culture.organizational culture.

4.4. organizational hierarchy.organizational hierarchy.

5.5. Not sureNot sure

A set of fundamental A set of fundamental

assumptions about assumptions about

what products an what products an

organization should organization should

produce is called…produce is called…

1.1. business laws.business laws.

2.2. best practices.best practices.

3.3. organizational culture.organizational culture.

4.4. organizational hierarchy.organizational hierarchy.

5.5. Not sureNot sure

A set of fundamental A set of fundamental

assumptions about assumptions about

what products an what products an

organization should organization should

produce is called…produce is called…

The organizational culture is a set of fundamental assumptions about what products the organization should produce, how it should produce them, where, and for whom.

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. Adhocracy Adhocracy

Which of the following Which of the following

describes an describes an

organizational organizational

structure that structure that

represents a small represents a small

start-up business?start-up business?

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. Adhocracy Adhocracy

Which of the following Which of the following

describes an describes an

organizational structure organizational structure

that represents a small that represents a small

start-up business?start-up business?

A young, small firm in a fast-changing environment has a simple structure and is managed by an entrepreneur serving as its single chief executive officer.

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. Adhocracy Adhocracy

Which of the following Which of the following

describes an describes an

organizational structure organizational structure

that consists of large that consists of large

groups of specialists groups of specialists

organized into short-lived organized into short-lived

multidisciplinary teams?multidisciplinary teams?

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. AdhocracyAdhocracy

Which of the following Which of the following

describes an describes an

organizational structure organizational structure

that consists of large that consists of large

groups of specialists groups of specialists

organized into short-lived organized into short-lived

multidisciplinary teams?multidisciplinary teams?

Task force organizations that must respond to rapidly changing environments are indicative of adhocracy organizations. They usually have a weak central management.

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. AdhocracyAdhocracy

Which of the following Which of the following

describes the describes the

organizational structure organizational structure

of law firms, school of law firms, school

systems, and hospitals?systems, and hospitals?

1.1. Entrepreneurial structureEntrepreneurial structure

2.2. Machine bureaucracyMachine bureaucracy

3.3. Divisionalized bureaucracyDivisionalized bureaucracy

4.4. Professional bureaucracyProfessional bureaucracy

5.5. AdhocracyAdhocracy

Which of the following Which of the following

describes the describes the

organizational organizational

structure of law firms, structure of law firms,

school systems, and school systems, and

hospitals?hospitals?

Professional bureaucracies are knowledge-based organizations where goods and services depend on the expertise and knowledge of professionals.

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker is type of worker is notnot

considered part of the considered part of the

information systems information systems

department? department?

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker is type of worker is notnot

considered part of the considered part of the

information systems information systems

department?department?

The information systems department is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm’s IT infrastructure. Consultants are usually not considered to be employees of the firm, thus they are not part of the IS department.

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker serves as type of worker serves as

the principal liaison the principal liaison

between the IS between the IS

department and the rest department and the rest

of the organization?of the organization?

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker serves as type of worker serves as

the principal liaison the principal liaison

between the IS between the IS

department and the rest department and the rest

of the organization?of the organization?

It is the systems analyst’s job to translate business problems and requirements into information requirements and systems.

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker oversees type of worker oversees

the use of information the use of information

technology in the firm?technology in the firm?

1.1. ProgrammerProgrammer

2.2. ConsultantConsultant

3.3. Systems analystSystems analyst

4.4. Project leaderProject leader

5.5. Chief information officerChief information officer

Which of the following Which of the following

type of worker oversees type of worker oversees

the use of information the use of information

technology in the firm?technology in the firm?

The Chief information officer heads the information systems department and often reports to the CEO of the company.

1.1. Agency theoryAgency theory

2.2. Behavioral theoryBehavioral theory

3.3. Technical theoryTechnical theory

4.4. Transaction cost theoryTransaction cost theory

5.5. Not sureNot sure

Which of the following Which of the following

represents the idea that represents the idea that

firms and individuals firms and individuals

seek to economize on seek to economize on

transaction costs?transaction costs?

1.1. Agency theoryAgency theory

2.2. Behavioral theoryBehavioral theory

3.3. Technical theoryTechnical theory

4.4. Transaction cost theoryTransaction cost theory

5.5. Not sureNot sure

Which of the following Which of the following

represents the idea that represents the idea that

firms and individuals firms and individuals

seek to economize on seek to economize on

transaction costs?transaction costs?

Firms try to reduce transactions costs through vertical integration, by getting bigger, hiring more employees, and buying their own suppliers and distributors.

1.1. Agency theoryAgency theory

2.2. Behavioral theoryBehavioral theory

3.3. Technical theoryTechnical theory

4.4. Transaction cost theoryTransaction cost theory

5.5. Not sureNot sure

Which of the following Which of the following

represents the idea that a represents the idea that a

firm is viewed as a firm is viewed as a

“nexus of contracts” “nexus of contracts”

among self-interested among self-interested

individuals? individuals?

1.1. Agency theoryAgency theory

2.2. Behavioral theoryBehavioral theory

3.3. Technical theoryTechnical theory

4.4. Transaction cost theoryTransaction cost theory

5.5. Not sureNot sure

Which of the following Which of the following

represents the idea that represents the idea that

a firm is viewed as a a firm is viewed as a

“nexus of contracts” “nexus of contracts”

among self-interested among self-interested

individuals?individuals?

According to the agency theory, a principal owner employs “agents,” or employees, to perform work on his or her behalf. However, agents need constant supervision and management; otherwise, they will tend to pursue their own interests rather than those of the owners.

1.1. outsourced organization.outsourced organization.

2.2. digital firm.digital firm.

3.3. international firm.international firm.

4.4. visual organization.visual organization.

5.5. virtual organization.virtual organization.

An organization in An organization in

which work no longer which work no longer

is tied to geographic is tied to geographic

location is considered location is considered

a(n)… a(n)…

1.1. outsourced organization.outsourced organization.

2.2. digital firm.digital firm.

3.3. international firm.international firm.

4.4. visual organization.visual organization.

5.5. virtual organization.virtual organization.

An organization in An organization in

which work no longer is which work no longer is

tied to geographic tied to geographic

location is considered location is considered

a(n)…a(n)…

Virtual organizations use networks to link people, assets, and ideas. They can ally with suppliers, customers, and even competitors to create and distribute new products and services without physical boundary limitations.

1.1. mass customization.mass customization.

2.2. individual production.individual production.

3.3. virtual manufacturing.virtual manufacturing.

4.4. transaction-based transaction-based production.production.

5.5. Not sureNot sure

The ability to offer The ability to offer

individually tailored individually tailored

products or services products or services

using the same using the same

production resources as production resources as

mass production is mass production is

called…called…

1.1. mass customization.mass customization.

2.2. individual production.individual production.

3.3. virtual manufacturing.virtual manufacturing.

4.4. transaction-based transaction-based production.production.

5.5. Not sureNot sure

The ability to offer The ability to offer

individually tailored individually tailored

products or services products or services

using the same using the same

production resources as production resources as

mass production is mass production is

called…called…

Information systems can make the production process more flexible so that products can be tailored to each customer’s unique set of requirements.

1.1. AOLAOL

2.2. The intranetThe intranet

3.3. The InternetThe Internet

4.4. EarthlinkEarthlink

5.5. Virtual organizationsVirtual organizations

Which of the following Which of the following

is capable of is capable of

dramatically lowering dramatically lowering

the transaction and the transaction and

agency costs facing agency costs facing

most organizations?most organizations?

1.1. AOLAOL

2.2. The intranetThe intranet

3.3. The InternetThe Internet

4.4. EarthlinkEarthlink

5.5. Virtual organizationsVirtual organizations

Which of the following Which of the following

is capable of is capable of

dramatically lowering dramatically lowering

the transaction and the transaction and

agency costs facing agency costs facing

most organizations?most organizations?

The Internet, especially the World Wide Web, is beginning to have an important impact on the relationships between firms and external entities, and even on the organization of business processes inside a firm.

1.1. New entrants into a firm’s marketNew entrants into a firm’s market

2.2. Pressure from substitute Pressure from substitute productsproducts

3.3. The expanded use of outsourcingThe expanded use of outsourcing

4.4. Bargaining power of customersBargaining power of customers

5.5. Bargaining power of suppliersBargaining power of suppliers

Which of the Which of the

following is following is notnot an an

external threat or external threat or

opportunity under opportunity under

the competitive the competitive

forces model?forces model?

1.1. New entrants into a firm’s marketNew entrants into a firm’s market

2.2. Pressure from substitute productsPressure from substitute products

3.3. The expanded use of outsourcingThe expanded use of outsourcing

4.4. Bargaining power of customersBargaining power of customers

5.5. Bargaining power of suppliersBargaining power of suppliers

Which of the Which of the

following is following is notnot an an

external threat or external threat or

opportunity under opportunity under

the competitive the competitive

forces model?forces model?

Various forces affect an organization’s ability to compete and therefore greatly influence a firm’s business strategy according to Porter’s competitive forces model.

1.1. Outsourcing firmsOutsourcing firms

2.2. Transportation service firmsTransportation service firms

3.3. Technology manufacturersTechnology manufacturers

4.4. Internet service providersInternet service providers

5.5. Distributors Distributors

Which of the following Which of the following

isis not not part of the part of the

business ecosystem?business ecosystem?

1.1. Outsourcing firmsOutsourcing firms

2.2. Transportation service firmsTransportation service firms

3.3. Technology manufacturersTechnology manufacturers

4.4. Internet service providersInternet service providers

5.5. Distributors Distributors

Which of the Which of the

following is following is notnot part part

of the business of the business

ecosystem?ecosystem?

The concept of a business ecosystem builds on the idea of the value Web described earlier, the main difference being that cooperation takes place across many industries rather than many firms.

1.1. AOLAOL

2.2. The governmentThe government

3.3. Information technologyInformation technology

4.4. Network economicsNetwork economics

5.5. Information partnershipsInformation partnerships

Which of the following Which of the following

plays a powerful role plays a powerful role

in establish business in establish business

ecosystems? ecosystems?

1.1. AOLAOL

2.2. The governmentThe government

3.3. Information technologyInformation technology

4.4. Network economicsNetwork economics

5.5. Information partnershipsInformation partnerships

Which of the Which of the

following plays a following plays a

powerful role in powerful role in

establish business establish business

ecosystems?ecosystems?

Many firms use information systems to develop into keystone firms by building IT-based platforms that other firms can use. Examples include eBay.com, Yahoo!, and Dell Computers.