Diploma in Business Studies Quiz

Identify which of the following is NOT the impact of information systems on organizations?

• Increased the possibilities for organizing work

• Revenue per employee could increase over time.

• Increased costing on physical facilities management

• Firms can shrink in size (numbers of employees) because it is far less expensive to outsource work

Firms and individuals seek to economize on transaction costs, much as they do on production costs is known as ________________.

• agency theory

• application theory

• production cost theory

• transaction cost theory

The firm is viewed as a "nexus of contracts" among self-interested individuals rather than as a unified, profit-maximizing entity. This statement may best refer to __________.

• agency theory

• application theory

• production cost theory

• transaction cost theory

Indicate the main reason for the firm's expectation using IT to reduces both agency and transaction costs.

• To outsource their production to contract manufacturers.

• To have fewer managers and increasing revenue per employee.

• To increase cost and quality of information and changes the economics.

• To increase vertical integration, by getting bigger, hiring more employees, and buying their own suppliers and distributors.

Identify organizational and behavioral impact of implementing a new information system within an organization?

• Increased job specialization and individualization

• Decreased employee job satisfaction and motivation

• Reduced need for employee training and development

• Improved collaboration and communication among employees

Identify which is NOT an organizational factor to consider when planning a new system.

• The organization's culture and politics.

• The type of organization and its style of leadership.

• The environment in which the organization must function.

• The kinds of tasks, decisions, and business processes that the system will drastically change.

Clarify which of the following is NOT a common challenge posed by Strategic Information Systems (SIS).

• Managing strategic transitions

• Sustaining competitive advantage

• Decreased competition in the market

• Alignment of SIS with business objectives and strategy

Identify the key challenge organizations face when implementing Strategic Information Systems (SIS).

• Lower financial investments required.

• Reduced complexity in business processes

• Decreased need for skilled IT professionals

• Increased resistance to change among employees

Indicate which of the following is an example of an intangible benefit of implementing an information system.

• Reduced printing and paper costs

• Lower hardware maintenance costs

• Increased revenue from online sales

• Improved decision-making through real-time data analytics

State what best defines an intangible benefit in the context of information systems.

• Benefits that are easily visible and tangible to all stakeholders

• Benefits that are measurable and quantifiable in monetary terms

• Benefits that are directly related to hardware and software components of the information system

• Benefits that are difficult to measure in monetary terms and are often related to improved perceptions or relationships