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Chapter 1Business Information Systems in Your CareerTrue-False Questions1. Internet advertising is growing at a rate of more than 30 percent a year.Answer: True Difficulty: HardReference: p. 62.A business model describes how a company produces, delivers, and sells a product or service to create wealth.Answer: TrueDifficulty: EasyReference: p. 73.Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the hardware and software needed: Answer: False Difficulty: MediumReference: p. 104.Computers are only part of an information system.Answer: TrueDifficulty: EasyReference: p. 125.Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.Answer: False Difficulty: EasyReference: p. 12 6.The dimensions of information systems are people, organizations, and technologyAnswer: True Difficulty: EasyReference: p. 127.In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.Answer: True Difficulty: EasyReference: p. 138.Developing a new product, fulfilling an order, or hiring a new employee are examples of business processes. Answer: True Difficulty: EasyReference: p. 139.Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.Answer: False Difficulty: MediumReference: p. 1310.Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.Answer: True Difficulty: EasyReference: p. 1411.A network requires at least two computers and a shared resource.Answer: False Difficulty: MediumReference: p. 1412. .An IT infrastructure provides the platform on which the firm can build its information systems. Answer: True Difficulty: EasyReference: p. 1513.(Analysis) UPSs use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.Answer: True Difficulty: HardReference: p. 16Analysis in terms of categorize14.Identifying a problem includes agreeing that a problem exists.Answer: True Difficulty: EasyReference: p. 1615.Political conflict is an example of the people dimension of business problems.Answer: False Difficulty: HardReference: p. 1916.(Analysis) The texts example of Mitchell Gregory, CIO of Sonic Corporations, illustrates the need for information systems managers to have an in-depth background in the technology used in their industry.Answer: False Difficulty: HardReference: p. 23Analysis in terms of examine17.There is no way that firms today can perform even basic accounting functions without extensive investment in systems. Answer: True Difficulty: MediumReference: p. 2418.An understanding of enterprise wide systems for customer relationship management is one of the skills relevant to careers in marketing.Answer: True Difficulty: MediumReference: p. 2619.Whereas marketing and financial careers have been transformed by the growth in information systems, management hasso farremained relatively unaffected.Answer: False Difficulty: MediumReference: p. 2720.Each of the following career tracksaccounting, finance, marketing, operations management, management, and information systemsrelies heavily in practice on databases.Answer: False Difficulty: MediumReference: p. 29Multiple Choice Questions21.One of the recent critical challenges facing Major League Baseball was:a. poor coordination between local and national sales channels.b. poorly managed sales channels.c. outdated information systems.d. decreasing ticket sales.Answer: dDifficulty: MediumReference: p. 322.The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage, operational excellence, and: a. improved flexibility.b. improved decision making.c. improved business practices.d. improved efficiency.Answer: bDifficulty: EasyReference: p. 623.Dell Computers use of information systems to improve efficiency and implement “mass customization” techniques to maintain consistent profitability and an industry lead illustrates which business objective?a. Improved flexibilityb. Improved business practicesc. Competitive advantaged. SurvivalAnswer: cDifficulty: HardReference: p. 824.The use of information systems because of necessity is:a. survivalb. improved business practicesc. competitive advantaged. improved flexibilityAnswer: aDifficulty: MediumReference: p. 925.(Analysis) Which of the following choices may lead to competitive advantage (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real-time?a. 1 onlyb. 1 and 2c. 2 and 3d. 1, 2, and 3Answer: dDifficulty: HardReference: p. 8Analysis in terms of compare26.Verizons implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of:a. improved flexibility.b. improved decision-making.c. improved efficiency.d. customer and supplier intimacy.Answer: b Difficulty: MediumReference: p. 8 27.The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of:a. improved efficiency.b. customer and supplier intimacy.c. survival.d. competitive advantage.Answer: cDifficulty: MediumReference: p. 928.What term is used to refer to all of the computer-based information systems used by organizations and their underlying technologies?a. Network technologyb. Digital technologyc. Information technologyd. Productivity technology Answer: cDifficulty: EasyReference: p. 1029.An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:a. decision making and control in an organizationb. communications and data flowc. managers analyzing the organizations raw datad. the creation of new products and servicesAnswer: aDifficulty: MediumReference: p. 1030.The three activities in an information system that produce the information organizations use to control operations are:a. information retrieval, research, and analysis.b. input, output, and feedback.c. input, processing, and output.d. data analysis, processing, and feedbackAnswer: cDifficulty: EasyReference: p. 1131.Order data for baseball tickets and bar code data are examples of:a. raw input.b. raw output.c. customer and product data.d. sales information.Answer: aDifficulty: EasyReference: p. 1132.(Analysis) The average number of tickets sold daily online is an example of:a. input.b. raw data.c. meaningful information.d. output.Answer: cDifficulty: EasyReference: p. 11Analysis in terms of categorize33.Output:a. is feedback that has been processed to create meaningful information.b. is information that is returned to appropriate members of the organization to help them evaluate the input stage.c. transfers data to the people who will use it or to the activities for which it will be used.d. transfers processed information to the people who will use it or to the activities for which it will be used.Answer: dDifficulty: EasyReference: p. 1134.Converting raw data into a more meaningful form is called:a. capturing.b. processing.c. organizing.d. feedback.Answer: bDifficulty: EasyReference: p. 1135.Electronic computers and related software programs are the technical foundation, the tools and materials, of:a. all business procedures.b. information accumulation.c. modern information systems.d. all industrialized countries.Answer: cDifficulty: MediumReference: p. 1136.(Analysis) An example of raw data from a national chain of automobile stores would be:a. 13 Toyotas sold daily in Kentuckyb. 13 Toyota RAV 4s sold during March 2006 in Louisville, Kentuckyc. 1 Toyota RAV4s sold March 3, 2005 in Louisville, Kentuckyd. All of the aboveAnswer: dDifficulty: HardReference: p. 11Analysis in terms of categorize37.The field that deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm is called:a. information systems literacy.b. information systems architecture.c. management information systems.d. information technology infrastructure.Answer: cDifficulty: MediumReference: p. 1138.In a hierarchical organization, the upper levels consist of:a. managerial and professional workers.b. managerial, professional, and technical workers.c. professional and operational workers.d. managerial, professional, and operational workers.Answer: bDifficulty: MediumReference: p. 1339.A hierarchy:a. is based on a clear-cut division of labor.b. is composed primarily of experts trained for different functions.c. is a pyramid structure or rising authority and responsibility.d. all of the above.Answer: cDifficulty: EasyReference: p. 1340.The fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of a companys members is called its:a. culture.b. environment.c. atmosphere.d. values.Answer: a Difficulty: EasyReference: p. 1341.Business processes:a. include informal work practices.b. are used primarily for sales and accounting functions.c. are governed by information technology.d. are logically related tasks used primarily by operational personnel.Answer: a Difficulty: EasyReference: p. 1342.Data management technology consists of:a. the physical hardware and media used by an organization for storing data.b. the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system.c. the software governing the organization of data on physical storage media.d. the hardware and software used to transfer data.Answer: c Difficulty: MediumReference: p. 1443.The hardware and software used to transfer data in an organization is called:a. data management technology.b. networking and data management technology.c. data and telecommunications technology.d. networking and telecommunications technology.Answer: d Difficulty: MediumReference: p. 1444.Networking and telecommunications technologies, along with the people required to run and manage them, constitute an organizations:a. data management environment.b. networked environment.c. IT infrastructure.d. information system.Answer: c Difficulty: MediumReference: p. 1545.An intranet uses:a. mainframe technology.b. infrared telecommunications systems.c. the telecommunications capacities of fiber optic networks.d. internet technology within the boundaries of the firm.Answer: dDifficulty: MediumReference: p. 2246.The first step in the four-step model of business problem solving is:a. agreeing that a problem exists.b. identifying the problem.c. outlining the problems causes.d. assigning the problem to a problem solver.Answer: bDifficulty: EasyReference: p. 1847.Inadequate data management is an example of the _ dimension of business problems.a. technicalb. organizationalc. peopled. managementAnswer: aDifficulty: MediumReference: p. 1848.Legal and regulatory compliance is an example of which dimension of business problem?a. Managementb. Organizationalc. Peopled. EthicalAnswer: cDifficulty: HardReference: p. 1849.Aging hardware and outdated software are examples of which dimension of business problem?a. Technicalb. Infrastructurec. Information Systemsd. OrganizationalAnswer: aDifficulty: EasyReference: p. 1850.Poor business processes and unsupportive culture are examples of which dimension of business problem:a. managementb. organizationalc. peopled. infrastructureAnswer: bDifficulty: EasyReference: p. 1851.(Synthesis) The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they have left the office. This is a business problem that falls into the:a. management dimension.b. people dimension.c. organizational dimension.d. technical dimension.Answer: bDifficulty: MediumReference: p. 18Synthesis in terms of bringing knowledge together52.(Synthesis) Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the: a. management dimension.b. people dimension.c. organizational dimension.d. technical dimension.Answer: cDifficulty: MediumReference: p. 18Synthesis in terms of bringing knowledge together53.In choosing the best solution for a business problem, one of the most important considerations is:a. change management.b. existing resources and skills.c. employee training.d. outcome measurement.Answer: bDifficulty: HardReference: p. 19 54.The failure of NASAs initial solution to preventing the space shuttle shedding foam illustrates:a. the importance of training employees on new business processes.b. the need to prepare for measuring outcomes of a business solution.c. the continuous nature of problem solving.d. the need to quickly adapt to new technological innovations. Answer: cDifficulty: MediumReference: p. 1955.The final step in the four-step model of business problem solving is:a. outcome.b. implementation.c. change management.d. feedback.Answer: bDifficulty: EasyReference: p. 1956.A major criterion in deciding the most important perspectives of a business problem is:a. implementation.b. change management.c. usefulness.d. organizational perspective.Answer: c Difficulty: HardReference: p. 20 57.One of the most frequent errors in problem solving is:a. rushing to judgment.b. not being aware of personal limitations.c. being too doubtful.d. following a rote pattern of decision making.Answer: a Difficulty: MediumReference: p. 20 58.An example of a business using information systems to create new products and services is:a. Blockbusters creation of a new online movie-rental system similar to that of Netflix.b. Seven-Elevens new retail information system analyzing sales data to determine customer needs at each location.c. China Telecoms enterprise system designed to comply with international reporting regulations.d. MLBs Web sites for online “fantasy” games.Answer: dDifficulty: HardReference: p. 2159.An example of a business using information systems to attain competitive advantage is:a. Blockbusters creation of a new online movie-rental system similar to that of Netflix.b. Seven-Elevens new retail information system analyzing sales data to determine customer needs at each location.c. China Telecoms enterprise system designed to comply with international reporting regulations.d. MLBs Web sites for online “fantasy” games.Answer: a.Difficulty: HardReference: p. 2160.An example of a business using information systems for survival is:a. Blockbusters creation of a new online movie-rental system similar to that of Netflix.b. Seven-Elevens new retail information system analyzing sales data to determine customer needs at each location.c. China Telecoms enterprise system designed to comply with international reporting regulations.d. MLBs Web sites for online “fantasy” games.Answer: cDifficulty: HardReference: p. 2161.An information skill important for an accounting major would be:a. an understanding of system and network security issues.b. an understanding of product management enterprise systems.c. an understanding of supplier management enterprise systems.d. an understanding of enterprise systems that enhance leadership.Answer: aDifficulty: MediumReference: pp 22-2962.An information skill important for a marketing major would be:a. an understanding of system and network security issues.b. an understanding of product management enterprise systems.c. an understanding of supplier management enterprise systems.d. an understanding of enterprise systems that enhance leadership.Answer: bDifficulty: MediumReference: pp 22-2963.(Analysis) Sonics use of point-of-sales terminals to track purchasing trends at different outlets is an example of:a. using information systems to create new business processes.b. relegating information systems to a secondary role.c. using information systems to achieve competitive advantage.d. using information systems to achieve customer intimacy.Answer: d. Difficulty: HardReference: p. 23Analysis in terms of examine64.One of the very first business applications of information systems was:a. operations management.b. real estate sales.c. accounting.d. operations analysis.Answer: cDifficulty: HardReference: p. 246

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