When a firm buys on the marketplace what it Cannot make itself the costs incurred are?

When a firm buys on the marketplace what it Cannot make itself the costs incurred are?

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Management Information Systems: Managing the Digital Firm, 16e, Global Edition (Laudon)

Chapter 3 Information Systems, Organizations, and Strategy

1) The interaction between information technology and organizations is influenced:

A) solely by the decision making of middle and senior managers.

B) by the development of new information technologies.

C) by many factors, including structure, politics, culture, and environment.

D) by two main macroeconomic forces: capital and labor.

E) by the rate of growth of the organization.

2) Which of the following statements about organizations is not true?

A) An organization is a stable, formal social structure that takes resources from the environment

and processes them to produce outputs.

B) An organization is a formal, legal entity with internal rules and procedures that must abide by

laws.

C) An organization is a collection of people and other social elements.

D) An informal group can be considered to be an organization.

E) An organization is a collection of rights, privileges, obligations, and responsibilities delicately

balanced over a period of time through conflict and conflict resolution.

3) According to the ________ definition of organizations, an organization is seen as a means by

which capital and labor are transformed by the organization into outputs to the environment.

A) microeconomic

B) macroeconomic

C) sociotechnical

D) behavioral

E) psychological

4) Which of the following statements about the technical view of organizations is not true?

A) It focuses on how inputs are combined to create outputs when technology changes are

introduced into a company.

B) It sees capital and labor as being easily substituted for one another.

C) It emphasizes group relationships, values and structures.

D) It sees the organization as a social structure similar to a machine.

E) It sees the firm as being infinitely malleable.

5) Which of the following is not a major feature of organizations that impacts the use of information

systems?

A) Business processes

B) Environments

C) Structure of the organization

D) Agency costs

E) Leadership styles

6) Which of the following statements about business processes is not true?

A) Business processes influence the relationship between an organization and information

technology.

B) Business processes are a collection of standard operating procedures.

1.The costs incurred when a firm buys on the marketplace what it cannot make itself arereferred to astransaction costsP. 3762.Disintermediation is defined asthe elimination of layers in the distribution process.P.3793.The four major types of competitive strategy are:low-cost leadership; productdifferentiation; focus on market niche; and customer and supplier intimacy.P. 964.Information asymmetry existswhen one party in a transaction has more importantinformation than the other.P.3785.When a firm provides a specialized product or service for a narrow target market betterthan competitors, they are usinga market niche strategy. P. 1096.Internet technologymakes it easy for rivals to compete on price alone. P.1017.The Internet raises the bargaining power of customers bymaking information available toeveryone.P.99

18) When a firm buys on the marketplace what it cannot make itself, the costs incurred arereferred to asA) switching costs.B) network costs.C) procurement.D) agency costs.E) transaction costs.Answer:EPage Ref: 89

Difficulty:ModerateAACSB:Information technologyCASE:ContentLO:3.2: What is the impact of information systems on organizations?19) All of the following statements are true about information technology's impact on businessfirmsexceptAPage Ref: 89-90

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Difficulty:ModerateAACSB:Information technologyCASE:ContentLO:3.2: What is the impact of information systems on organizations?

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20) According to agency theory, the firm is viewed as a(n)DPage Ref: 90

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Difficulty:DifficultAACSB:Reflective thinkingCASE:ContentLO:3.2: What is the impact of information systems on organizations?21) According to research on organizational resistance, the four components that must bechanged in an organization in order to successfully implement a new information system areD

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Page Ref: 93Difficulty:DifficultAACSB:Information technologyCASE:AnalysisLO:3.2: What is the impact of information systems on organizations?22) Information systems technology can be viewed as a factor of production that can besubstituted for traditional capital and labor from the point of view of economics.

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8Page Ref: 89Difficulty:DifficultAACSB:Information technologyCASE:ContentLO:3.2: What is the impact of information systems on organizations?

23) List three organizational factors that can prevent a firm in fully realizing the benefits of anew information system, and provide examples for each.

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Janeela Mohammed

When a firm buys on the marketplace what it Cannot make itself the costs incurred are referred to as costs?

19) When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as: transaction costs.

When two organizations pool markets and expertise that result in lower costs and generate profits they are creating group of answer choices?

When two organizations pool markets and expertise that result in lower costs and generate profits, they are creating: synergies.

Which of the following is not one of the competitive forces in an industry's environment in Porter's model?

Political factor is not one of the Porter's five force factor. The Porter's five forces tool is a simple but powerful tool to evaluate the power of business. Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation.

Which of the following is not one of the six strategic business objectives that businesses are seeking to achieve when they invest in information systems?

Explanation: The six important business purpose of the information system are; operational excellence, survival, new products and services, improved decision making, customer and supplier intimacy and competitive advantage. The option D. Improved employee morale is not the strategic objective of an information system.