1 Copyright © 2012 Pearson Education, Inc. Management Information Sy stems, 12e (Laudon) Chapter 3 Information Systems, Organizations, and Strategy 1) An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. Answer: FALSE Diff: 3 Page Ref: 88 AACSB: Reflective Thinking CASE: Content Objective: 3.1 2) From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor. Answer: TRUE Diff: 3 Page Ref: 89 AACSB: Use of IT CASE: Content Objective: 3.1 3) A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors. Answer: TRUE Diff: 2 Page Ref: 95 AACSB: Reflective Thinking CASE: Content Objective: 3.2 4) The competitive forces model was created for today's digital firm. Answer: FALSE Diff: 1 Page Ref: 95 AACSB: Reflective Thinking CASE: Content Objective: 3.2 5) Research has shown that only 25% of firms are able to align their information technology with their business goals. Answer: TRUE Diff: 3 Page Ref: 111 AACSB: Reflective Thinking CASE: Content Objective: 3.5 2 Copyright © 2012 Pearson Education, Inc. 6) Customers are one of the competitive forces that affect an organization's ability to compete. Answer: TRUE Diff: 1 Page Ref: 96 AACSB: Reflective Thinking CASE: Content Objective: 3.2 7) A transparent marketplace means that there is high product differentiation. Answer: FALSE Diff: 2 Page Ref: 96 AACSB: Reflective Thinking CASE: Content Objective: 3.2 8) The effect of the Internet has been to raise bargaining power over suppliers. Answer: TRUE Diff: 2 Page Ref: 96 AACSB:...
