Information Systems Today, 7e (Valacich)
1) Identify a true statement about the function of knowledge workers.
A) They use knowledge to perform their jobs but do not create knowledge.
B) They create, modify, and/or synthesize knowledge as a fundamental part of their jobs.
C) They lack the ability to solve non-routine problems at work.
D) They modify knowledge created by others but do not create knowledge themselves.
E) They work in a monotonous workplace and lack innovation.
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
2) Which of the following predictions made by Peter Drucker is true?
A) Knowledge workers have lesser bargaining power than workers in other industries.
B) Knowledge workers lack valuable real-world skills.
C) Knowledge workers lack reliance on formal education.
D) Knowledge workers are continually learning how to do their jobs better.
E) Knowledge workers are paid less in comparison with their prior industrial counterparts.
Difficulty: Moderate
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
3) Who among the following coined the term “knowledge worker”?
A) Peter Drucker
B) Alvin Toffler
C) Johannes Gutenberg
D) Thomas L. Friedman
E) Mark Zuckerberg
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
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4) Which of the following occurred when Alvin Toffler’s “third wave” gained speed?
A) Society moved from a predominantly agrarian culture to the urbanized machine age.
B) Occupations changed to accommodate the mechanized society.
C) The ability to perform repetitive tasks became a quality to be instilled and valued.
D) Individuals shifted from handcrafting items for sale to working in factories.
E) Information became the currency of the realm.
Difficulty: Moderate
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
5) The various services offered by Google, such as Gmail (e-mail), Google Drive (word
processing), or Google Calendar, are good examples of ________.
A) cloud computing
B) computer assembling
C) data mining
D) systems integration
E) internetworking
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
6) Which of the following terms means “knowing how to use a computer”?
A) information security
B) cloud computing
C) computer literacy
D) computer compatibility
E) collaborative thinking
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
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7) The ability to independently learn new technologies as they emerge and assess their impact on
your work and life is called ________.
A) computer networking
B) computer adaptation
C) computer fluency
D) computer compatibility
E) computer assembling
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
8) Advances in cloud computing (think Gmail, Evernote, or DropBox) allow for accessing e-
mails, files, notes, and the like from different devices, enhancing portability and mobility in
computing.
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
9) The use of nearly any information technology or system to support every part of the business
is known as e-business.
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
10) The trend of using one‘s own device for communicating in the workplace is an example of
consumerization of IT.
Difficulty: Easy
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
3
11) Discuss Peter Drucker’s predictions about knowledge workers and the knowledge society.
Difficulty: Moderate
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
4
12) In his book The Third Wave, futurist Alvin Toffler describes three distinct phases, or “waves
of change,” that have taken place in the past or are presently taking place within the world’s
civilizations. Discuss the characteristics of these phases.
Difficulty: Moderate
Learning Obj.: 1.1: Describe the characteristics of the digital world and the advent of the
Information Age.
Classification: Concept
13) Which of the following is an economic change brought about by globalization enabled by
information technology?
A) increase in the frequency of worldwide fads and phenomena
B) development of low-cost computing platforms
C) availability of low-cost communication systems
D) increase in the outsourcing of labor
E) decentralization of organizations
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
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14) Identify a technological change brought about by globalization enabled by information
technology.
A) increase in the frequency of international travel
B) increase in the levels of immigration
D) decrease in the frequency of worldwide fads
E) decentralization of organizations
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
15) Which of the following is a cultural change brought about by globalization enabled by
information technology?
B) the availability of low-cost communication systems
C) the development of low-cost computing platforms
D) the frequency of worldwide fads and phenomena
E) decrease in the outsourcing of labor
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
16) Identify a key factor of globalization.
A) evolution of technology
B) anchor point milestones
C) concept development projects
D) timeboxing strategies
E) external interface requirements
Difficulty: Easy
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
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17) Identify a true statement about the impact of globalization.
A) It led to a tremendous decrease in prices for computing devices.
B) It led to a tremendous increase in prices for computing devices.
C) It led to a tremendous decrease in processing power.
D) It led to a tremendous decrease in the creation of automated tools.
E) It led to a tremendous increase in communication costs.
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
18) Which of the following best explains the process of moving business processes or tasks to
another company?
A) offshoring
B) liquidating
C) cloud computing
D) downsizing
E) outsourcing
Difficulty: Easy
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
19) Which of the following can be cited as an example of outsourcing?
A) Microsoft hands over its customer service function to Convergys, located in India.
B) Volkswagen acquires a steel manufacturing plant to reduce its overall production costs.
C) Dell sources computer parts from suppliers located in Russia.
D) Audi starts a manufacturing facility in China to take advantage of low labor costs.
E) P&G acquires a retail outlet to reduce its distribution costs.
Difficulty: Difficult
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Application
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20) Aircraft manufacturer Boeing designed its new 787 Dreamliner aircraft in Russia making use
of the availability of highly skilled aeronautical engineers. Identify this strategy.
A) offshoring
B) outsourcing
C) liquidating
D) franchising
E) importing
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
21) In order to take advantage of the high quality talent pool, Ernst & Young sets up operations
in the Philippines and moves a part of its tax services to its new facility. Identify this strategy.
A) outsourcing
B) franchising
C) offshoring
D) importing
E) liquidating
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Application
22) Outsourcing has seen a huge increase because of the ________.
A) increase in decentralization
B) increase in the use of cloud computing
C) increase in advertising costs
D) decrease in telecommunication costs
E) decrease in the cost of raw materials
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
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23) According to Nicholas Carr, cloud computing may contribute to the decline in outsourcing.
Which of the following justifies this statement?
A) An IT outsourcer’s business is built around managing complex internal systems. A shift to a
simpler cloud-based IT infrastructure should reduce the need for outsourcing.
B) Cloud computing focuses on maximizing the effectiveness of the shared resources.
C) Cloud computing is customized in each country, thus, making it impossible to outsource.
D) Cloud computing is standardized in all countries, thus, reducing the need for outsourcing.
E) An IT outsourcer’s business is aimed at focusing on core business activities and increasing
control costs, thus, a simpler cloud-based IT infrastructure would discourage outsourcing.
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
24) Identify a reason why many countries are declining offshore outsourcing.
A) rising salaries
B) decreasing salaries
C) process efficiencies
D) design efficiencies
E) imposed deadlines
Difficulty: Easy
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
25) TransCorp is an IT firm that is looking to outsource its payroll processes. Which of the
following statements, if true, would most strengthen the decision to outsource?
A) Companies in other countries can do the same amount of work at a comparable cost.
B) Outsourcing has become a trend among most firms in developed nations.
C) Companies in other countries are more efficient in all aspects of work and are also cost
effective.
D) Firms across the globe are adopting cloud computing systems.
E) The firm is enjoying good profit margins.
Difficulty: Difficult
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Application
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26) Worldwide banking group HSBC moving its back-office operations to China and India is an
example of ________.
A) franchising
B) liquidating
C) offshoring
D) internetworking
E) cloud computing
Difficulty: Easy
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
27) Which of the following is a governmental challenge of operating in the digital world?
A) differences in power distance and uncertainty avoidance
B) import and export regulations
C) aging population in the United States
D) videoconferences across different time zones
E) availability of labor force and salary differences
Difficulty: Easy
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
28) Which of the following is a cultural challenge of operating in the digital world?
A) conducting videoconferences across different time zones
B) aging populations in the United States and Western Europe
C) differences in power distance and uncertainty avoidance
D) availability of labor force and salary differences
E) differences in academic degrees and measurement units
Difficulty: Moderate
Learning Obj.: 1.2: Define globalization, describe how it evolved over time, and describe the
key drivers of globalization.
Classification: Concept
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