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Chapter 1 Business Information Systems in Your Career

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Chapter 1 Business Information Systems in Your Career

1) Internet advertising is growing at a rate of more than 30 percent a year. Answer: FALSE Diff: 3 Page Ref: 6

2) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE

Diff: 1 Page Ref: 11

3) 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

Diff: 2 Page Ref: 13

4) Computers are only part of an information system. Answer: TRUE

Diff: 1 Page Ref: 14

5) Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach. Answer: FALSE

Diff: 1 Page Ref: 15

6) The dimensions of information systems are people, organizations, and information technology. Answer: TRUE

Diff: 1 Page Ref: 15

7) 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

Diff: 1 Page Ref: 15

8) Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes. Answer: TRUE

Diff: 1 Page Ref: 16

9) Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization.

Answer: FALSE

Diff: 2 Page Ref: 16

10) Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. Answer: TRUE

Diff: 1 Page Ref: 16

11) A network requires at least three computers and a shared resource. Answer: FALSE

Diff: 2 Page Ref: 17

12) An IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE

Diff: 1 Page Ref: 17

13) UPS's 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

Diff: 3 Page Ref: 18

14) Identifying a problem includes agreeing that a problem exists. Answer: TRUE

Diff: 1 Page Ref: 21

15) Political conflict is an example of the people dimension of business problems. Answer: FALSE

Diff: 3 Page Ref: 22

16) As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks. Answer: TRUE

Diff: 2 Page Ref: 25

17) Forensic accounting is used to investigate bankruptcies and contract disputes. Answer: TRUE

Diff: 2 Page Ref: 25

18) An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing. Answer: TRUE

Diff: 2 Page Ref: 26

19) Whereas marketing and financial careers have been transformed by the growth in information systems, management has–so far–remained relatively unaffected. Answer: FALSE

Diff: 2 Page Ref: 26

20) There are two types of outsourcing: offshore outsourcing and foreign outsourcing. Answer: FALSE

Diff: 2 Page Ref: 28

21) As discussed in the chapter opening case, the Yankees' use of information systems in their new stadium can be seen as an effort to achieve which of the primary business objectives? A) Operational excellence B) Survival

C) Customer and supplier intimacy D) Improved decision making Answer: A

Diff: 3 Page Ref: 3-4

22) Journalist Thomas Friedman's description of the world as \A) the flattening of economic and cultural advantages of developed countries. B) the use of the Internet and technology for instantaneous communication. C) the reduction in travel times and the ubiquity of global exchange and travel. D) the growth of globalization. Answer: A

Diff: 2 Page Ref: 9

23) The six important business objectives of information technology are: new products, services, and business models; customer and supplier intimacy; improved decision-making; competitive advantage; operational excellence, and: A) flexibility. B) survival.

C) improved business practices. D) improved efficiency. Answer: B

Diff: 2 Page Ref: 10

24) The use of information systems because of necessity describes the business objective of: A) survival.

B) improved business practices. C) competitive advantage. D) improved flexibility. Answer: A

Diff: 2 Page Ref: 12

25) 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 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3 Answer: D

Diff: 3 Page Ref: 12

26) Verizon's 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

Diff: 2 Page Ref: 12

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: C

Diff: 2 Page Ref: 12

28) 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 organization. B) communications and data flow.

C) managers analyzing the organization's raw data. D) the creation of new products and services. Answer: A

Diff: 2 Page Ref: 13

29) 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 feedback. Answer: C

Diff: 1 Page Ref: 14

30) 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: A

Diff: 1 Page Ref: 14

31) The average number of tickets sold daily online is an example of: A) input. B) raw data.

C) meaningful information. D) output. Answer: C

Diff: 1 Page Ref: 14 32) 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 raw 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: D

Diff: 1 Page Ref: 14

33) Converting raw data into a more meaningful form is called: A) capturing. B) processing. C) organizing. D) feedback. Answer: B

Diff: 1 Page Ref: 14

34) An example of raw data from a national chain of automobile stores would be: A) average of 13 Toyotas sold daily in Kentucky in 2007.

B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky.

C) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky - $28000. D) annual sales of Toyota RAV4s increased 2.4 percent. Answer: C

Diff: 3 Page Ref: 14

35) 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: C

Diff: 2 Page Ref: 14-15

36) 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: C

Diff: 2 Page Ref: 15 37) A hierarchy:

A) results in a clear-cut division of labor.

B) is composed primarily of experts trained for different functions. C) is a pyramid structure of rising authority and responsibility. D) is used primarily in large organizations to define job roles. Answer: C

Diff: 1 Page Ref: 15

38) 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: B

Diff: 2 Page Ref: 15-16

39) The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its: A) culture.

B) environment. C) atmosphere. D) values. Answer: A

Diff: 1 Page Ref: 16 40) 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

Diff: 1 Page Ref: 16

41) 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

Diff: 2 Page Ref: 17

42) 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

Diff: 2 Page Ref: 17 43) 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: D

Diff: 2 Page Ref: 17

44) 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 problem's causes.

D) assigning the problem to a problem solver. Answer: B

Diff: 1 Page Ref: 21

45) Inadequate database capacity is an example of the ________ dimension of business problems. A) technology B) organizational C) people

D) management Answer: A

Diff: 2 Page Ref: 20

46) Legal and regulatory compliance is an example of the ________ dimension of business problems. A) management B) organizational C) people D) technology Answer: C

Diff: 3 Page Ref: 22

47) Aging hardware and outdated software are examples of the ________ dimension of business problems. A) technology B) management

C) information systems D) organizational Answer: A

Diff: 1 Page Ref: 22

48) Poor business processes and unsupportive culture are examples of the ________ dimension of business problems. A) management B) organizational C) people

D) infrastructure Answer: B

Diff: 2 Page Ref: 22

49) 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) technology dimension. Answer: B

Diff: 3 Page Ref: 20

50) 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: C

Diff: 3 Page Ref: 22

51) 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.

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