Chapter Bonus B – Using Technology to Manage Information
BonusB-21
77. The current trend in business is to move from networked computer systems toward more
centralized information management systems that rely on powerful mainframe
computers.
78. In older computer network systems, a central computer performed all of the
computational tasks and sent the results to dumb terminals that could not perform the
tasks themselves.
79. One advantage of a network computing system is that it gives employees access to
detailed information.
80. In a network computing system, computational tasks are handled by personal computers,
but the information needed to complete the tasks is stored in databases controlled by a
server.
81.
Chapter Bonus B – Using Technology to Manage Information
A disadvantage of network systems is that they create barriers that limit communication
across functional boundaries.
82. Computing costs go up with productivity losses as a company upgrades and troubleshoots
equipment as well as trains employees to use the system.
83. Application service providers rented access to the latest software applications to firms via
an Internet connection.
84. Application service providers have met with a great deal of success in recent years as
more and more firms have decided to rent software rather than buy it.
BonusB-23
85. Y-5 Connections manufactures wireless equipment for laptop computers and PDAs.
Current trends suggest that Y-5 should find the market for its products has strong growth
potential.
Feedback: One major trend in recent years is the rapid acceptance of wireless technologies.
The Wi-Fi (802.11) standards have made wireless computer networks increasingly popular.
Many hotels, airports, libraries, and even coffee shops are providing wireless networks that
users can access from laptops and PDAs. Even cell phones are providing users with
connections to the Internet. The speed and convenience of these networks suggest that this
trend will continue.
86. One reason many firms rely on a network computing system is the low cost of
maintaining the system once it is up and running.
Feedback: Maintaining a fleet of desktop computers can be expensive. This includes the cost
of upgrading software, troubleshooting problems, lost productivity during downtime, and
training employees.
87.
Chapter Bonus B – Using Technology to Manage Information
BonusB-24
Software Central is a small new company that allows firms to rent access to a variety of
popular business productivity software programs and business services via the Internet.
Recent evidence suggests that Software Central is likely to grow rapidly as it finds
widespread acceptance for its services.
Feedback: Software Central is an application service provider (ASP). In the late 1990s this
type of business appeared to have promise, because it gave firms access to the latest versions
of software without the hassles of upgrading. However most ASPs failed in the early 2000s. A
major problem was that CIOs were reluctant to hand over access to their critical data to
companies with no track record or little experience in their specific industries. This high
failure rate suggests that a small new company like Software Central is unlikely to experience
“widespread acceptance” for its services.
88. A disadvantage of a network computer system is that it limits the ability of employees to
gain access to all of the information they need in its most relevant form.
Feedback: An advantage of network systems is that they allow employees to see complete
information.
89. Computer software provides the instructions that enable users to tell the computer what to
do.
90.
Chapter Bonus B – Using Technology to Manage Information
When purchasing a computer system, the best approach is to select the hardware first,
then purchase software that will function effectively on that type of hardware.
92. Shareware is distributed to potential users at no charge, but the users are asked to send a
specified fee to the software’s developer if the program meets their needs and they decide
to use it.
93. Shareware is software that allows two or more workers to share the same computer by
logging on under different names.
94. Public domain software is software that is free for the taking.
BonusB-28
103. The use of antivirus software completely eliminates the risk of downloading infected
files.
104. A computer virus is a piece of programming code that is inserted into other
programming code with the intention of causing some unexpected, and usually
undesirable, event for the user of the software.
105. In the area of electronic communications, the main focus of corporate and government
security officials today is the prevention of credit card fraud.
106. Today the primary concern of corporate and government security officials concerning
electronic communication is in the area of cyberterrorism.
107.
Chapter Bonus B – Using Technology to Manage Information
BonusB-29
As the result of the terrorist attacks on September 11, 2001, managers of most major
corporations have become much more willing to give the government extensive access to
information about problems with electronic communication such as viruses and attacks
by hackers.
108. The Critical Infrastructure Protection Board was established after the terrorist attacks
of September 11, 2001 as part of the Office of Homeland Security.
109. It is illegal for companies to scan e-mails written by their employees at work unless
the employees have given permission in advance or the firm has received approval from a
federal judge.
110. Most e-mail messages are automatically encrypted to protect them from being
intercepted and read by hackers.
111.
Chapter Bonus B – Using Technology to Manage Information
BonusB-30
Websites often send “cookies” to a user’s computer that are saved on the computer’s hard
drive.
112. There are sites on the Internet that provide web surfers with easy access to personal
information about other people.
113. When spyware is inadvertently downloaded to a user’s computer the software tracks
the user’s online behavior. Spyware is installed without the users knowledge and can
infect the computer with a virus.
114. Computer technology has become so stable and mature in recent years that, except for
problems caused by viruses and hackers, major glitches are essentially a thing of the
past.
115.
Chapter Bonus B – Using Technology to Manage Information
The cause of almost all instability in computer systems can be traced to poorly designed
hardware.
116. One advantage of networked computers is that they offer much greater computer
security than the older mainframe systems.
Feedback: Networked computers give more people access to more information, and increase
the risk that people will be able to obtain information not intended for them. With a
mainframe system, there was a single data center, and access to information was easier to
control.
117. The Internet has greatly slowed the spread of computer viruses by making it possible
to share programs and files by downloading them from online sources rather than sharing
diskettes.
Feedback: Although viruses can be spread by using infected diskettes, they can also be spread
by downloading infected files over the Internet.
BonusB-33
120. Mick Connors works for the Critical Infrastructure Protection Board. One of the major
challenges Mick is likely to face is to get CIOs at major corporations to provide the type
of information he needs to help his board achieve its mission.
Feedback: After the terrorist attacks on September 11, 2001 the federal government created
the Critical Infrastructure Protection Board as part of the Office of Homeland Security. This
board was given the responsibility to devise a plan for improving security for America’s
critical infrastructure. In order to carry out its mission, the board needs corporations to
provide them with information about security issues they face, such as virus infections and
attacks by hackers. However, many CIOs are reluctant to give this information to the
government because they fear that if investors and the public learn of these problems, they
will lose confidence in their companies.
121. Heidi Luking has discovered that several of the Internet sites she has visited recently
downloaded small files to her computer’s hard drive even though she did not request
them. The files Heidi discovered are known as crackers.
Feedback: Small files that web sites download to a visitor’s computer are known as cookies.
These files serve different purposes. Some cookies contain only the user’s name and
password, but others are used to track the user’s movements on the web and send information
back to the website to be included in the organization’s database.
122.
Chapter Bonus B – Using Technology to Manage Information
Larry Kotter has just learned that his company has been reading the e-mail messages he
has sent while at work without getting his permission. Harry can sue the company for
invasion of privacy under the Electronic Communications Privacy Act of 1997.
Feedback: Companies can legally read the e-mail their employees send. The text does not
discuss the Electronic Communications Privacy Act of 1997, because no such law was
actually enacted.
BonusB-35
123. In the 1970s, business technology was known as:
A. data processing.
B. information processing.
C. information technology.
D. systems analysis.
124. ____________ are raw, unanalyzed, and unorganized facts and figures.
A. Statistics
B. Ratios
C. Data
D. Criteria
125. The primary role of business technology during the 1970s was to:
A. empower workers by giving them access to ever-greater amounts of information.
B. implement new production methods that relied on automated equipment.
C. protect proprietary company information from outsiders.
D. support existing business by improving the flow of financial information.
BonusB-36
126. During the 1980s business technology became known as:
A. data processing.
B. knowledge management.
C. information systems.
D. personal computing.
127. Beginning with the late 1980s the goal of information technology was to:
A. improve the flow of financial information throughout business organizations.
B. use new technologies to offer new methods of conducting business.
C. prevent proprietary information from falling into the hands of competitors.
D. use new technologies to improve old methods.
128. ____________ is information charged with enough intelligence to make it relevant
and useful.
A. Knowledge
B. Data
C. An hypothesis
D. A theory
129.
Chapter Bonus B – Using Technology to Manage Information
BonusB-37
__________ refers to a variety of software applications that analyze an organization’s raw
data and obtain useful insights from it.
A. Information processing
B. Data processing
C. Artificial intelligence
D. Business intelligence
130. The key distinction between data and information is that data:
A. are facts and figures that have been stored in databases so that they can be accessed
and manipulated by a computer.
B. is less reliable than information because its accuracy has not been verified.
C. is mathematical in nature while information is verbal in nature.
D. are raw, unanalyzed facts and figures while information is data that has been
processed and summarized so that is can be used by decision-makers.
Feedback: Data are raw, unanalyzed, and unorganized facts and figures. Information is data
that has been processed and organized so that it is useful to decision-makers.
131.
Chapter Bonus B – Using Technology to Manage Information
BonusB-38
From the 1970s to the present time, the primary role of business technology has:
A. always been to provide businesses with necessary financial information.
B. always been to provide better customer service.
C. changed from providing better customer service to improving employee productivity.
D. changed from supporting business to providing new ways of doing business.
Feedback: In the 1970s, the primary role of business technology was to support business by
improving the flow of financial information. By the late 1980s (and continuing into the
2000s), business technology began to change the way businesses operated.
132. NASDAQ is an example of how information technology can:
A. help engineers design products that exactly meet the needs of a specific target market.
B. be used to create organizations and provide services that are independent of location.
C. provide small firms with new opportunities to grow by forming alliances with larger
companies.
D. help the government measure the environmental impact of business activities.
Feedback: NASDAQ is an electronic stock exchange that enables people to make trades over
the computer. These exchanges have no physical location.
133.
Chapter Bonus B – Using Technology to Manage Information
A major impact of information technology has been to:
A. encourage the growth of giant corporations.
B. create organizations that are independent of location.
C. reduce the demand for skilled labor.
D. increase overall costs of production.
Feedback: In the late 1980s, businesses began using new technologies to provide goods and
services in new ways that break down barriers of time and space. Businesses that use these
new technologies can provide goods and services whenever and wherever customers want
them. By breaking down these barriers, information technology has created organizations that
are independent of location.
134. An important advantage knowledge technology has over older versions of business
technology is that it:
A. delivers timely information directly to the people who need it.
B. is much cheaper to incorporate into most business operations.
C. allows businesses to locate anywhere and still reach their customers.
D. eliminates the need for businesses to store information electronically.
Feedback: Knowledge technology adds a layer of intelligence to filter appropriate information
and deliver it when it is needed. It is designed to reduce the time and effort decision-makers
spend finding relevant information.
