Homework Lance
1.1 True/False Questions
1) The number of transistors per square inch on an integrated chip doubles every 18 months according to Moore’s law.
Answer: TRUE
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
2) Moore’s law predicts that the price to performance ratio of computers will double once in eighteen months.
Answer: FALSE
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
3) Because of Moore’s Law, the cost of data communications and data storage is essentially zero.
Answer: TRUE
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
4) Today, because of Moore’s Law, any routine skill is liable to be outsourced to the lowest bidder.
Answer: TRUE
Page Ref: 5
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
5) Brad, an employee who works in the production department, has the ability to collaborate well with others. Brad’s ability to collaborate is an example of a routine skill.
Answer: FALSE
Page Ref: 6
AACSB: Analytic Skills
Difficulty: Moderate
Chapter LO: 1
6) Abstract reasoning is the ability to make and manipulate models.
Answer: TRUE
Page Ref: 6
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
7) Systems thinking refers to making a reasoned analysis of a problem and envisioning potential solutions to the problem.
Answer: FALSE
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
8) A person who is good at collaboration will avoid giving critical feedback to others.
Answer: FALSE
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
9) The single most important skill for effective collaboration is giving and receiving critical feedback.
Answer: TRUE
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
10) Experimentation involves envisioning potential solutions and developing the most promising ones.
Answer: TRUE
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
11) The term ‘management information systems’ refers to the management and use of information systems that help businesses achieve their strategies.
Answer: TRUE
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
12) A system is a group of components that interact without a specific purpose.
Answer: FALSE
Page Ref: 8
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
13) The five components of an information system are computer hardware, software, data, procedures, and people.
Answer: TRUE
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
14) Applications such as MS Word and Excel are examples of data procedures.
Answer: FALSE
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
15) The number of components in an information system increases in proportion to its complexity.
Answer: FALSE
Page Ref: 9
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
16) The five-component framework also applies to simple information systems.
Answer: TRUE
Page Ref: 9
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
17) Users should take an active role in system development to create an information system that meets their needs.
Answer: TRUE
Page Ref: 9
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
18) Information systems exist to help people who work in a business to successfully implement the strategies of that business.
Answer: TRUE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
19) A company should develop information systems if most of its competitors have developed information systems.
Answer: FALSE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 2
20) The five components of information systems are symmetrical in their functions.
Answer: TRUE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
21) The hardware and software components of information systems are capable of performing actions, according to the five-component model of information systems.
Answer: FALSE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
22) In the five-component model of an information system, data acts as a bridge between the computer and the human sides.
Answer: TRUE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
23) Software and procedures are part of the human side in an information system.
Answer: FALSE
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
24) Software is the most important component of an information system.
Answer: FALSE
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
25) Low-tech systems move more work from the human side to the computer side than high-tech systems do.
Answer: FALSE
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
26) The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system.
Answer: FALSE
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
27) The quality of the users’ thinking is a large part of a good information system.
Answer: FALSE
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
28) Obtaining or developing new programs is more difficult than changing procedures or requiring people to work in new ways.
Answer: FALSE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Chapter LO: 3
29) Changing personnel responsibilities to suit an information system is more disruptive to an organization than developing new programs for the information system.
Answer: TRUE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 3
30) Changing databases causes more organizational destruction than changing working procedures.
Answer: FALSE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 3
31) Hardware is the easiest to change of the five components of an information system.
Answer: TRUE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
32) Information technology and information systems are synonymous terms.
Answer: FALSE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 4
33) Information technology is an assembly of hardware, software, data, procedures, and people that produces information.
Answer: FALSE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 4
34) Information technology refers to the products, methods, inventions, and standards that are used for the purpose of producing information.
Answer: TRUE
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 4
35) People can buy information systems, but they cannot buy information technology.
Answer: FALSE
Page Ref: 13.
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 4
36) Data refers to the knowledge derived from information.
Answer: FALSE
Page Ref: 14
Difficulty: Easy
Chapter LO: 5
37) Data becomes information when it is presented within a meaningful context.
Answer: TRUE
Page Ref: 14
Difficulty: Easy
Chapter LO: 4
38) You process employee statistics to obtain a meaningful understanding of your organization. The data that you derive by processing becomes information.
Answer: TRUE
Page Ref: 14
Difficulty: Moderate
Chapter LO: 5
39) Information systems become a waste of time and money when users work with inaccurate data.
Answer: TRUE
Page Ref: 15
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
40) Data accuracy is a critical requirement of good information.
Answer: TRUE
Page Ref: 15
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
41) Developing systems that provide information in near real time is less expensive than producing information a few hours later.
Answer: FALSE
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
42) Timeliness of data is not a critical component of good information.
Answer: FALSE
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
43) Information should be relevant to the subject, not to the context.
Answer: FALSE
Page Ref: 18
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
44) Information needs to be sufficient for the purpose for which it is generated, but just barely so.
Answer: TRUE
Page Ref: 18
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
45) A good information system is one that provides the users with more information than what is required.
Answer: FALSE
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
46) Information systems should be subject to the same financial analyses to which other assets are subjected.
Answer: TRUE
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
47) Information is worth its cost when an appropriate relationship exists between the cost of information and its value.
Answer: TRUE
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
48) Microsoft defines a strong password as one that contains no more than seven characters.
Answer: FALSE
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe different methods of managing IS security
Chapter LO: 6
49) A good password must contain your user name, real name, or company name.
Answer: FALSE
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe different methods of managing IS security
Chapter LO: 6
50) If you need someone’s password, you should ask them to enter their password and look away.
Answer: TRUE
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the ethical and social issues raised by the use of information systems
Chapter LO: 6
1.2 Multiple Choice Questions
1) ________ states that the number of transistors per square inch on an integrated chip doubles every 18 months.
A) Nielsen’s Law
B) Faraday’s Law
C) Moore’s Law
D) Newton’s Law
Answer: C
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
2) According to Moore’s law, the ________.
A) price of integrated chips will increase once in eighteen months
B) size of computing devices and integrated chips doubles every year
C) number of transistors per square inch on an integrated chip doubles every 18 months
D) size of computing devices and integrated chips reduce by fifty percent every year
Answer: C
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
3) Which of the following is a major implication of Moore’s law?
A) Data processing activities have become complex and time consuming.
B) Costs of computing and processing have increased.
C) Physical size of integrated chips has increased.
D) Costs of data communications and storage have become very low.
Answer: D
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Moderate
Chapter LO: 1
4) Which of the following ratios has fallen as a result of Moore’s law?
A) price/performance
B) output/price
C) performance/input
D) performance/output
Answer: A
Page Ref: 4
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 1
5) Which of the following types of skills is most likely be outsourced to the lowest bidder?
A) ability to experiment
B) accounting skills
C) ability to collaborate
D) abstract reasoning skills
Answer: B
Page Ref: 5
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
6) Which of the following is a nonroutine cognitive skill?
A) computer programming skill
B) marketing knowledge
C) tax accounting skill
D) systems thinking ability
Answer: D
Page Ref: 6
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
7) Kerin is a business student interning at Benson and Hodgson, a firm specializing in exports of sophisticated equipment to other countries. She finds that she is unable to create a representative chart depicting the relation between processes such as procurement, shipping, and billing. This indicates that she lacks ________ skills.
A) abstract reasoning
B) collaborative
C) experimental
D) systems thinking
Answer: A
Page Ref: 6
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
8) Abstract reasoning is the ability to ________.
A) work with others when performing tasks
B) make and manipulate models
C) act quickly on a problem
D) analyze and perform routine tasks
Answer: B
Page Ref: 6
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
9) ________ refers to the ability to model components and show how the components’ inputs and outputs relate to one another.
A) Abstract reasoning
B) Systems thinking
C) Dynamic correlation
D) Operational logic
Answer: B
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
10) A manager will essentially require ________ skills to clearly understand how the resources that his or her company uses are converted to desired outputs.
A) collaborative
B) experimental
C) interpersonal
D) systems thinking
Answer: D
Page Ref: 7
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
11) You constantly analyze your work in terms of the contribution that you make to the overall output of your organization. This shows your ________ skill.
A) collaborative
B) experimental
C) systems thinking
D) interpersonal
Answer: C
Page Ref: 7
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
12) When presenting an idea to her colleagues, Marjorie failed to consider others’ perspectives and got defensive when people asked her questions. This situation indicates that Majorie lacks ________ skills.
A) systems thinking
B) collaboration
C) abstract reasoning
D) experimentation
Answer: B
Page Ref: 7
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
13) ________ is the activity of two or more people working together to achieve a common goal, result, or work product.
A) Systems thinking
B) Abstract reasoning
C) Collaboration
D) Experimentation
Answer: C
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
14) Edwin leads a team of fifteen programmers. He constantly changes the procedures that he uses to monitor, evaluate, and control the way his subordinates function. This shows his ability to ________.
A) involve in systems thinking
B) experiment
C) make abstractions
D) relate outputs and inputs
Answer: B
Page Ref: 7
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
15) ________ refers to making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources one has.
A) Systems thinking
B) Abstraction
C) Collaboration
D) Experimentation
Answer: D
Page Ref: 7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
16) Which of the following is an example of computer hardware?
A) a computer monitor
B) a browser
C) a spreadsheet
D) a user manual
Answer: A
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
17) The storage disk in your computer is an example of the ________ component of information systems.
A) hardware
B) software
C) database
D) procedure
Answer: A
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
18) An operating system like Windows or Linux is an example of the ________ component of an information system.
A) software
B) hardware
C) data
D) procedure
Answer: A
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
19) Adobe Acrobat is an application that allows users to create and edit digital documents. Adobe Acrobat is an example of a ________.
A) hardware
B) procedure
C) database
D) software
Answer: D
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
20) A customer relationship management (CRM) system contains the names and phone numbers of customers. Such things stored in a CRM system are part of the ________ component.
A) software
B) data
C) procedure
D) people
Answer: B
Page Ref: 8
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
21) You follow certain steps to access the supplementary readings for a course when using your organization’s library management system. These steps that you follow are examples of the ________ component of an information system.
A) procedure
B) data
C) software
D) hardware
Answer: A
Page Ref: 8
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
22) The words that you type in an MS Word document is an example of ________.
A) procedures
B) data
C) processes
D) software
Answer: B
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
23) The five-component framework considers individuals who maintain the data and who support the networks of computers as ________ components.
A) procedural
B) people
C) data
D) networking
Answer: B
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
24) Business users who administer the development of information systems should ________.
A) have the skills to be a programmer or a database designer
B) take an active role in that system’s development
C) refrain from involving themselves in software development
D) have a good understanding of programming concepts
Answer: B
Page Ref: 9
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
25) Which of the following components in the five-component model of information systems is considered an actor?
A) software
B) hardware
C) data
D) procedure
Answer: B
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
26) The hardware components of an information system will act as a(n) ________.
A) bridge between computer side and human side
B) actor on the human side
C) instruction on the computer side
D) actor on the computer side
Answer: D
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
27) Your company uses a software tool to manage its supply chain. This software tool is a(n) ________ of your company’s information system.
A) instruction on the computer side
B) actor on the human side
C) instruction on the human side
D) actor on the computer side
Answer: A
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
28) The ________ component in the five-component model of information systems is considered a bridge that connects the computer side and the human side.
A) software
B) procedure
C) data
D) hardware
Answer: C
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
29) According to the five-component model of information systems, the ________ component functions as instructions for the people who use information systems.
A) software
B) data
C) hardware
D) procedure
Answer: D
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
30) Which of the following components constitute the computer side of information systems?
A) software and data
B) data and hardware
C) people and procedures
D) hardware and software
Answer: D
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
31) Which of the following components constitute the human side of information systems?
A) software and procedures
B) data and people
C) people and procedures
D) hardware and people
Answer: C
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
32) The process of automation is a process of moving work from ________.
A) processes to procedures
B) actors to instructions
C) instructions to actors
D) human side to computer side
Answer: D
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Compare and contrast different methods for developing information systems
Chapter LO: 3
33) Which of the following is a low-tech information system?
A) an inventory tracking system that produces reports every 24 hours
B) a file of email addresses stored in an email program
C) a customer support system that keeps track of product issues
D) a decision support system that analyzes multiple variables
Answer: B
Page Ref: 11
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Moderate
Course LO: Compare and contrast different methods for developing information systems
Chapter LO: 3
34) Which of the following components of an information system is the easiest to change and causes the least amount of organizational disruption when changed?
A) hardware
B) software
C) developer
D) procedure
Answer: A
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
35) Drother Sports Inc. is a sports equipment provider that markets its products through a chain of retail outlets in three states. As part of its expansion strategy, the company decides to open outlets in six more states and decides to revise its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization?
A) collecting demographic data from the new markets
B) developing new CRM software for the existing and new outlets
C) moving existing employees and hiring new employees
D) buying and installing new computers in the new outlets
Answer: D
Page Ref: 13
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
36) Which of the following would be the most disruptive to an organization when implementing an information system?
A) installing new hardware components
B) creating new databases
C) developing new programs
D) changing reporting relationships
Answer: D
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
37) It is generally more difficult to make changes to the ________ of an information system than to the databases itself.
A) software
B) hardware
C) programs
D) procedures
Answer: D
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
38) Glazer & Hicks is a firm that offers enterprise software solutions to independent retailers. The firm recently bagged a contract from a major national retail chain to develop and implement a proprietary software that tracks inventory, restocking, and supplier information. Which of the following actions will be most difficult to perform when implementing the new information system?
A) upgrading the computer systems used by the retail chain
B) writing the programs for creating the software
C) changing the structure of existing databases that reflect supplier and customer data
D) training the employees to use and manage the new system
Answer: D
Page Ref: 13
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Hard
Course LO: Discuss the key issues involved in managing the components of IT infrastructure
Chapter LO: 3
39) Identify how information technology differs from information systems.
A) You can buy information technology, but not information systems.
B) People are an important component of information technology, but not of information systems.
C) Information systems form a subset of information technology
D) Unlike information systems, information technology is used for producing information.
Answer: A
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 4
40) Which of the following is a component of an information system but not of information technology?
A) hardware
B) data
C) people
D) software
Answer: C
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 4
41) Which of the following statements regarding information technology (IT) is true?
A) Information technology (IT) refers to the products, methods, inventions, and standards that are used for the purpose of producing information.
B) Information technology is an umbrella term that covers information systems and the products, methods, inventions, and standards used to produce information.
C) Information technology and information systems are synonymous with each other and can be used interchangeably.
D) Information technology is an assembly of hardware, software, data, procedures, and people that produces information.
Answer: A
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Easy
Chapter LO: 4
42) Which of the following is considered information rather than mere data?
A) a list of property prices in a neighborhood
B) the return on investment of an advertising campaign
C) the total number of students in a school
D) the price of a company’s shares on a given day
Answer: B
Page Ref: 14
Difficulty: Moderate
Chapter LO: 5
43) Which of the following is a common description of information?
A) collection of unprocessed data
B) unbiased, non-contextual data
C) knowledge derived from data
D) list of recorded facts or figures
Answer: C
Page Ref: 14
Difficulty: Easy
Chapter LO: 5
44) Which of the following is the best description of data?
A) information presented in a meaningful context
B) unbiased information
C) recorded facts or figures
D) knowledge derived from facts or figures
Answer: C
Page Ref: 14
Difficulty: Easy
Chapter LO: 5
45) You have a spreadsheet that provides the airfares to different cities from New York. If this is used to make a decision, it will be considered as ________.
A) knowledge
B) data
C) information
D) interpretation
Answer: B
Page Ref: 14
AACSB: Analytic Skills
Difficulty: Moderate
Chapter LO: 5
46) Which of the following is a critical characteristic of good information?
A) abundance of details
B) accuracy
C) low cost
D) ease of creation
Answer: B
Page Ref: 15
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
47) You are the production manager at a cola manufacturer’s bottling plant. You receive a report that contains the list of raw materials stored in the warehouse. You find that the list includes items that are not present in the warehouse. The list that you received would qualify as bad information because it is ________.
A) inaccurate
B) late
C) voluminous
D) too narrow in scope
Answer: A
Page Ref: 15
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
48) Which of the following statements is true of good information?
A) Good information should go well beyond the scope of the purpose for which it is generated.
B) Information should be relevant to the subject and not to the context.
C) Good information should be based on correct and complete data.
D) Good information is recovered from sources of information that provide information for free.
Answer: C
Page Ref: 15
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 5
49) The CEO of an organization asks the human resources manager to send information about the rate of employee turnover in the organization for the last quarter. The manager sends the salary details of new hires during this period. This information is likely to be of little use to the CEO because it is ________.
A) inaccurate
B) not timely
C) irrelevant
D) too expensive
Answer: C
Page Ref: 18
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
50) The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the details of each invoice drawn up in the previous quarter. This information is not good because it is ________.
A) too narrow in scope
B) inaccurate
C) not timely
D) more than what is required
Answer: D
Page Ref: 18
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
51) Good information must be ________.
A) inexpensive
B) relevant
C) widely available
D) voluminous
Answer: B
Page Ref: 18
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
52) You are looking to buy a home that costs less than $700,000, but your real estate agent keeps sending you fliers for homes that cost $1,000,000 or more. This information is likely to be useless because it is ________.
A) is inaccurate
B) late
C) irrelevant
D) not reliable
Answer: C
Page Ref: 18
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
53) Information is considered to be bad if ________.
A) its level of accuracy is too high
B) it is availed ahead of time
C) it is just barely sufficient
D) it is irrelevant to the subject
Answer: D
Page Ref: 18
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
54) Which of the following is the least critical aspect of good information?
A) data accuracy
B) timeliness of data
C) data abundance
D) relevance of data
Answer: C
Page Ref: 18
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
55) You ask your secretary to send information on the meetings that you need to attend in the month. He provides you the details immediately, but he leaves out certain additional details that he deems to be surplus to your requirements. Judge your secretary’s action.
A) The information that your secretary provided was partly good as it was timely, but insufficient.
B) The secretary provided adequate and timely information, but the information did not add value to you.
C) The information that your secretary gave will be considered as good information.
D) The information that you obtained through the secretary was not timely and worth its cost.
Answer: C
Page Ref: 18
AACSB: Analytic Skills
Difficulty: Hard
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
56) Which of the following is true about the quality of information?
A) Information should be just barely sufficient for its purpose
B) There is no such thing as bad information.
C) Information needs to be relevant to the subject, not to the context.
D) The more information you receive, the less you can afford to ignore.
Answer: A
Page Ref: 18
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 6
57) Which among the following is the most appropriate technique for creating memorable, strong passwords?
A) base your password on the first letters of the words in a phrase
B) use your favorite foreign words
C) use dictionary words or phrases as passwords
D) use a collection of randomly picked letters, numbers, and special characters
Answer: A
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe different methods of managing IS security
Chapter LO: 6
58) Vera wants to create a password. Which of the following is the strongest password that she can use?
A) Vera@123
B) Vera@Vera
C) NewYork56$
D) NOOCSmyPw$42
Answer: D
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe different methods of managing IS security
Chapter LO: 6
59) Which of the following is a valid guideline for maintaining good password etiquette?
A) Write down your password in an accessible location.
B) Never ask someone else for their password.
C) Give your password to your coworkers if you anticipate that they may need it in your absence.
D) Share your password with the IT staff in your organization.
Answer: B
Page Ref: 22
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the ethical and social issues raised by the use of information systems
Chapter LO: 6
60) As the IT manager of your organization, you need to use a coworker’s account to access some information. In keeping with password etiquette, how would you go about getting his password?
A) You ask the coworker to type in the password where required, while you look away.
B) You explain the urgency of the situation and ask the coworker to send you the password through email.
C) You submit a formal letter to your coworker’s manager, explaining the situation and requesting that the password be sent to you.
D) You try out various combinations to see if you can guess your coworker’s password.
Answer: A
Page Ref: 22-23
AACSB: Use of Information Technology; Analytic Skills
Difficulty: Moderate
Course LO: Discuss the ethical and social issues raised by the use of information systems
Chapter LO: 6
1.3 Essay Questions
1) State Moore’s Law. What is the implication of Moore’s Law for managers?
Answer: According to Moore’s Law, “the number of transistors per square inch on an integrated chip doubles every 18 months.” Because of Moore’s Law, the ratio of price to performance of computers has fallen drastically. Therefore, it is important for managers to realize that, because of Moore’s Law, the cost of data communications and data storage is essentially zero. The current business scenario is flooded with vast amounts of data that requires the effective assistance of information technology. Many business ventures have sprung up around this effect of Moore’s Law. Future business professionals need to be able to assess, evaluate, and apply emerging information technology to business.
Page Ref: 4-5
AACSB: Use of Information Technology
Difficulty: Moderate
Chapter LO: 1
2) Explain the four nonroutine cognitive skills that are key to career success today.
Answer: The four nonroutine skills identified as critical for organizations in the current scenario are:
(1) Abstract reasoning – the ability to make and manipulate models.
(2) Systems thinking – modeling the components of the system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed.
(3) Collaboration – developing ideas and plans with others; provide and receive critical feedback.
(4) Experimentation – creating and testing promising new alternatives, consistent with available resources.
Page Ref: 6-7
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 1
3) Briefly describe the terms system, information system, and management information system.
Answer: A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. A management information system is defined as a system that helps businesses achieve their goals and objectives.
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
4) List and briefly explain the five-component model of an information system with an example.
Answer: The five components described in the model are: computer hardware, software, data, procedures, and people. These five components are present in every information system, from the simplest to the most complex. For example, when you use a computer to write a class report, you are using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in your report), procedures (the methods you use to start the program, enter your report, print it, and save and back up your file), and people (you).
Page Ref: 8
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 2
5) Why do businesses develop information systems? Also, point out some of the wrong reasons businesses sometimes cite for developing information systems.
Answer: Information systems exist to help people who work in a business to achieve the goals and objectives of that business. Information systems are not created for the sheer joy of exploring technology. They are not created so that the company can be “modern” or so that the company can show it has a social networking presence on the Web. They are not created because the information systems department thinks it needs to be created, because the company is “falling behind the technology curve,” or for the sole reason that “every other business has one.”
Page Ref: 10
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
6) What is the most important component of an information system? Why?
Answer: A user is the most important component of an information system. The user’s mind and his/her thinking are not merely a component of the information systems they use, they are the most important component. This is so because, even if the user has the perfect information system, if they do not know what to do with the information that it produces, they are wasting both their time and money. The quality of one’s thinking is a large part of the quality of the information system.
Page Ref: 11
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 3
7) Explain how the five components of an information system are arranged in terms of ease of change and organizational disruption.
Answer: The five components of the information systems framework are: computer hardware, software, data, procedures, and people. The five components are shown in order of ease of change and the amount of organizational disruption. It is usually a simple matter to order new hardware and install it. Obtaining or developing new programs is more difficult. Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are both very difficult and very disruptive to the organization.
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
Chapter LO: 3
8) How is information technology different from information systems?
Answer: Information technology and information systems are two closely related terms, but they are different. Information technology (IT) refers to the products, methods, inventions, and standards that are used for the purpose of producing information. IT pertains to the hardware, software, and data components. On the other hand, an information system (IS) is an assembly of hardware, software, data, procedures, and people that produces information. Information technology drives the development of new information systems.
A crucial difference between the two terms is that, while you can buy IT, you cannot buy an IS. That is, you can buy or lease hardware, you can license programs and databases, and you can even obtain predesigned procedures. Ultimately, however, it is your people who execute those procedures to employ that new IT. For any new system, you will always have training tasks and costs, you will always have the need to overcome employees’ resistance to change, and you will always need to manage the employees as they utilize the new system.
Page Ref: 13
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 4
9) Discuss the common definitions of information.
Answer: Probably the most common definition of information is that information is knowledge derived from data, whereas data is defined as recorded facts or figures. Another common definition is that information is data presented in a meaningful context. Another definition of information that you will hear is that information is processed data, or sometimes, information is data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. The fundamental idea of this definition is that we do something to data to produce information.
Page Ref: 14
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 5
10) What are the five characteristics of good information?
Answer: Data should be:
(1) Accurate – Good information is based on correct and complete data, and it has been processed correctly as expected.
(2) Timely – Good information is produced in time for its intended use.
(3) Relevant – Good information is relevant both to the context and to the subject.
(4) Just sufficient – Good information is sufficient for the purpose for which it is generated, but just barely so.
(5) Worth its cost – For good information to be worth its cost, there must be an appropriate relationship between the cost of information and its value.
Page Ref: 15; 18
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage
Chapter LO: 6
GIPHY App Key not set. Please check settings