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Based on the organizational definition of an organization, each of the following is a true statement except: Your answer: people make arrangements with subordinates and superiors about how work will be done. The correct answer: the primary production factors are capital and labor. INCORRECT.

2. Incorrect

Organizations differ in their: Your answer: impartial judgments. The correct answer: ultimate goals and the types of power used to achieve them. INCORRECT.

3. Incorrect

A professional bureaucracy is a(n): Your answer: "task force" organization that must respond to rapidly changing environments. The correct answer: knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. INCORRECT.

4. Correct

Each of the following is a common organizational feature except: Your answer: constituencies. CORRECT.

5. Incorrect

The senior manager in charge of the information systems function in the firm defines: Your answer: project manager. The correct answer: chief information officer. INCORRECT.

6. Incorrect

The economic theory that views the firm as a nexus of contracts among self-interested individuals who must be supervised and managed is: Your answer: nexus theory. The correct answer: agency theory. INCORRECT.

7. Correct

Kotter argues that: Your answer: managers do all of the above. CORRECT.

8. Correct

Deciding how to carry out specific tasks specified by strategic and middle management and establishing criteria for completion and resource allocation best describes: Your answer: operational control.

CORRECT. 9. Incorrect A semi-structured decision made at the management level would be: Your answer: accounts receivable. The correct answer: budget preparation. INCORRECT. 10 Incorrect . A model of decision making stating that organizations are not rational and that decisions are solutions that become attached to problems for accidental reasons best describes the: Your answer: political model of decision making. The correct answer: "garbage can" model of decision making. INCORRECT. 11 Incorrect . Strategic information systems are: Your answer: systems that directly link consumer behavior back to distribution, production, and supply chains. The correct answer: computer systems at any level of the organization that change goals, operations, products, services, or environmental relationships to help the organization gain a competitive advantage. INCORRECT. 12 Incorrect . A competitive strategy for developing new market niches for specialized products or services where a business can compete in the target area better than its competitors best describes: Your answer: product differentiation. The correct answer: focused differentiation. INCORRECT. 13 Incorrect . The expenses a customer or company incurs in lost time and expenditure of resources when changing from one supplier or system to a competing supplier or system are: Your answer: moving costs. The correct answer: switching costs. INCORRECT. 14 Incorrect . A model based on the concept of a network where adding another participant entails zero marginal costs but can create much larger marginal gain defines: Your answer: the value chain model. The correct answer: network economics. INCORRECT. 15 Correct . A movement from one level of a sociotechnical system to another is referred to as:

Your answer: a strategic transition. CORRECT. Information technology plays a critical role in helping organizations:
Your Answer: work with nonroutine tasks. Correct Answer: perceive environmental change. Incorrect



All organizations become very efficient over time because individuals in the firm develop: Your Answer: routines for producing goods and services. Correct


The set of fundamental assumptions about what products the organization should produce, how and where it should produce them, and for whom they should be produced is Your Answer: behavioral model. Correct Answer: organizational culture. Incorrect


The transaction cost theory states that the organization is a(n): Your Answer: entity that grows larger because it can conduct marketplace transactions internally more cheaply than it can with external firms in the marketplace. Correct


In postindustrial societies, authority increasingly relied on: Your Answer: economic status. Correct Answer: knowledge and competence. Incorrect


This individual is credited with the development of the five forces competitive model: Your Answer: Michael Dell. Correct Answer: Michael Porter. Incorrect


Google are using information technology to pursue this generic strategy: Your Answer: product differentiation. Correct


Chrysler Corporation uses technology as a competitive strategy against their competitors: Your Answer: (blank)


Locking in customers by making it difficult for them to change to another product is referred to as Your Answer: creating switching costs. Correct


The value chain model highlights the primary or support activities that add a margin of value to a firm's products or services where: Your Answer: they are directly related to the production and distribution of the firm's products and services. Correct Answer: information systems can best be applied to achieve a competitive advantage. Incorrect


In Porter's value chain model, inbound logistics, operations, sales and marketing, service, and outbound logistics are all

classified as: Your Answer: support activities. Correct Answer: primary activities. Incorrect


Benchmarking involves: Your Answer: introducing new systems in stages either by functions or by organization. Correct Answer: setting strict standards for products, services, or activities and measuring organizational performance against those standards. Incorrect


When two organizations pool markets and expertise and the relationship results in lower costs and generating profits is known as creating Your Answer: Payloads. Correct Answer: Synergies. Incorrect


Another term used to describe loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers is: Your Answer: value Web. Correct Answer: business ecosystem. Incorrect


Sociotechnical changes that affect both social and technical elements of the organization can be considered as: Your Answer: strategic transitions. Correct