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Unformatted text preview: Chapter 3, The REA Enterprise Ontology: Value System and Value Chain Modeling True/False Questions 1. Creating value has a cost. Ans: True 2. Margin in Porter's value chain is the difference between value and cost. Ans: True 3. The acquisition/payment business process includes the sequence of activities involved in delivering goods and services to customers for payment. Ans: False Response: those activities are part of the sales collection business process. 4. The sales/collection business process includes the activities involved in acquiring, paying for, and maintaining the goods and services needed by an organization. Ans: False Response: those activities are part of the acquisition/payment business process. 5. The conversion business process focuses on converting goods and services acquired into goods and services for sale. Ans: True 6. Porter's value chain is defined as a set of business activities that add value or usefulness to an organization's products or services. Ans: True 7. Support activities in an organization's value chain are viewed by Michael Porter as the critical activities in running a business. Ans: False Response: primary activities are viewed as the critical activities in running a business; support activities facilitate accomplishment of the primary activities Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 23 Chapter 3, The REA Enterprise Ontology: Value System and Value Chain Modeling 8. Outbound logistics are defined by Michael Porter as support value activities associated with collecting, storing, and physically distributing the products or services. Ans: False Response: Porter defines outbound logistics as primary activities, not as support activities 9. Human resource management is defined by Michael Porter as the set of support activities involved in recruiting, hiring, training, developing, and compensating all types of personnel. Ans: True 10. Many of the critical steps of building an information system have little to do with programming a computer. Ans: True 11. The process of building an information system begins with selection of an appropriate software package. Ans: False Response: Response: the process begins with identifying the need for a business solution and acquiring a better understanding of the environment you plan to support and/ or improve. 12. The task level of the REA enterprise ontology is also called the big picture view. Ans: False Response: the value system level is the big picture view; the task level is the most detailed (therefore the least big picture) view 13. The concept of creating value applies only to for-profit enterprises. Ans: False Response: not for profit organizations create value by maximizing the goods and services they provide with the resources they receive....
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This note was uploaded on 01/17/2011 for the course INFO SYSTE ACC 115 taught by Professor Baker during the Spring '10 term at Strayer.
- Spring '10