Chapter 01: Information Systems in Perspective
1. Information is simply a collection of raw facts such as an employee number or the total hours worked in a week.
a.
True
b.
False
False
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2. Providing information to customers can help companies increase revenues and profits.
a.
True
b.
False
True
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3. Information and data are essentially the same thing.
a.
True
b.
False
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4. Using a computer to forecast future sales and order more inventory before a shortage can occur is an example of
information system feedback.
a.
True
b.
False
False
1
Easy
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5. The technology infrastructure is a set of shared IS resources that form the foundation of each computer-based
information system.
a.
True
b.
False
Chapter 01: Information Systems in Perspective
True
1
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6. Application software, such as Microsoft Windows, manages basic computer operations such as start-up.
a.
True
b.
False
False
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Easy
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7. Both system software and application software are needed for all types of computers, from small handheld computers to
large supercomputers.
a.
True
b.
False
True
1
01.01
8. Information about the documents on the Web and access to these documents are controlled and provided by tens of
thousands of special computers called Web servers.
a.
True
b.
False
True
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Easy
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9. The World Wide Web (WWW) is a network of links on the Internet to documents containing text, graphics, video, and
sound.
a.
True
b.
False
True
1
10. An intranet is a network based on Web technologies that allows selected outsiders, such as business partners and
customers, to access authorized resources of a company’s extranet.
a.
True
b.
False
False
1
Easy
01.01
11. Mobile commerce (m-commerce) is the use of mobile, wireless devices to place orders and conduct business.
a.
True
b.
False
True
1
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12. Despite being technologically advanced, e-commerce offers few advantages for streamlining work activities.
a.
True
b.
False
False
1
Easy
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13. Electronic business (e-business) goes beyond e-commerce and e-procurement by using information systems and the
Internet to perform all business-related tasks and functions.
a.
True
b.
False
True
1
Easy
01.01
Easy
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14. A management information system (MIS) typically provides standard reports generated with data and information
from a transaction processing system (TPS) or enterprise resource planning (ERP) system.
a.
True
b.
False
True
1
Easy
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15. A decision support system (DSS) is an organized collection of people, procedures, software, databases, and devices
that provides routine information to managers and decision makers.
a.
True
b.
False
False
1
Easy
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16. Some successful stock, options, and futures traders use expert systems to spot trends and improve the profitability of
their investments.
a.
True
b.
False
False
1
Easy
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17. Augmented reality is a new form of virtual reality that enables a user to become fully immersed in an artificial,
computer-generated 3D world.
a.
True
b.
False
False
1
Easy
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18. Global opportunities introduce numerous obstacles and issues, including challenges involving culture and language.
a.
True
b.
False
True
1
Easy
01.02
19. While all types of personal computers have their own advantages and disadvantages, many people favor the mobility,
functionality, and cost associated with tablet computers.
a.
True
b.
False
True
1
Easy
01.03
20. The unique value of learning systems is that they allow organizations to capture and use the wisdom of experts and
specialists.
a.
True
b.
False
False
1
Easy
01.03
21. An organization can have only one value chain.
a.
True
b.
False
False
1
Easy
01.04
22. Organizational change can be caused by internal factors as well as external factors.
a.
True
Chapter 01: Information Systems in Perspective
b.
False
True
1
Easy
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23. The more consumers can obtain similar products and services that satisfy their needs, the less likely firms are to try to
establish competitive advantage.
a.
True
b.
False
False
1
Easy
01.06
24. Typically, highly competitive industries are characterized by high degrees of product differentiation.
a.
True
b.
False
False
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25. Introducing new products and services periodically or frequently helps a firm gain competitive advantage.
a.
True
b.
False
True
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26. The shorter the payback period, the more attractive is the project.
a.
True
b.
False
True
1
27. The time value of money is one of the factors taken into account for the calculation of payback period.
a.
True
b.
False
False
1
Easy
01.07
28. The number of H-1B visas offered annually can be political and controversial.
a.
True
b.
False
True
1
Easy
01.07
29. The senior IS managers are responsible for the day to day running of IS hardware to process an organization’s
information systems workload.
a.
True
b.
False
False
1
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01.08
30. Employers often search the Internet to find information about potential employees before they make hiring decisions.
a.
True
b.
False
True
1
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01.08
Easy
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31. The process of defining relationships among data to create useful information requires ______.
an information system
b.
intelligence
knowledge
d.
intuition
c
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Bloom’s: Knowledge
32. ______ are people who create, use, and disseminate knowledge and are usually professionals in science, engineering,
business, and other areas.
Systems analysts
b.
Knowledge workers
Database administrators
d.
End users
b
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Bloom’s: Knowledge
33. Quality information that can be used for a variety of purposes is said to be _____.
flexible
b.
economical
relevant
d.
verifiable
a
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Bloom’s: Knowledge
34. In information systems, _____ is information from a system that is used to make changes to input or processing
activities.
a program
b.
feedback
an output
d.
software
b
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Bloom’s: Knowledge
35. _____ consists of computer programs that govern the operation of a computer.
Bloom’s: Knowledge
Chapter 01: Information Systems in Perspective
Hardware
b.
Software
A server
d.
The Internet
b
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36. _____ is a network based on Web technologies that allows only selected outsiders, such as business partners and
customers, to access authorized resources of a company’s intranet.
The Internet
b.
A blog
A database
d.
An extranet
d
1
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37. _____ are considered to be the most important element in a computer-based information system.
Hardware
b.
Software
Procedures
d.
People
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38. _____ involves using information systems and the Internet to acquire parts and supplies.
A transaction processing system (TPS)
b.
Electronic business (e-business)
Mobile commerce (m-commerce)
d.
Electronic procurement (e-procurement)
d
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Bloom’s: Knowledge
39. A(n) _____ is a set of interrelated components that collect, manipulate, store, and disseminate data and information
and provide a feedback mechanism to meet an objective.
database management system (DBMS)
b.
electronic commerce (e-commerce) system
information system (IS)
d.
decision support system (DSS)
c
40. A(n) _____ is an organized collection of people, procedures, software, databases, and devices that support problem-
specific decision making.
problem solving system
b.
expert system
decision support system
d.
knowledge base
c
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Bloom’s: Knowledge
41. A(n) _____ is an organized collection of people, procedures, software, databases, and devices that stores and
retrieves knowledge, improves collaboration, locates knowledge sources, captures and uses knowledge.
artificial intelligence system
b.
expert knowledge system
virtual reality system
d.
knowledge management system
d
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Bloom’s: Knowledge
42. _____ is a branch of artificial intelligence that allows computers to recognize and act on patterns or trends.
Vision systems
b.
Neural networks
Robotic systems
d.
Natural language processing
b
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43. Hiring an outside company to perform some or all of a systems development project is called _____
virtual reality
b.
telecommuting
systems investigation
d.
outsourcing
d
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Bloom’s: Knowledge
44. The goal of the _____ step of systems development is to gain a clear understanding of the problem to be solved or
opportunity to be addressed.
systems analysis
b.
systems investigation
systems design
d.
systems implementation
b
1
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Bloom’s: Knowledge
45. A(n) _____ is an organized collection of people, procedures, software, databases, and devices used to perform and
record business deals.
decision support system (DSS)
b.
management information system (MIS)
enterprise resource planning (ERP) system
d.
transaction processing system (TPS)
d
1
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Bloom’s: Knowledge
46. A(n) _____ can replace many applications with one unified set of programs, making the system easier to use and more
effective.
transaction processing system
b.
enterprise resource planning system
e-commerce system
d.
decision support system
b
1
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Bloom’s: Knowledge
47. In some cases, inaccurate information is generated because inaccurate data is fed into the transformation process. This
is commonly called _____.
last in, first out (LIFO)
b.
garbage in, garbage out (GIGO)
first in, first out (FIFO)
d.
first in, never out (FINO)
b
1
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Bloom’s: Knowledge
48. _____ deals with how firms successfully plan for and implement reforms.
Forecasting
b.
Transaction processing
Systems development
d.
Organizational change
d
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Bloom’s: Knowledge
49. The _____ of an investment makes the net present value of all cash flows (benefits and costs) generated by a project
equal to zero.
payback period
b.
earnings growth
time value of money
d.
internal rate of return
d
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50. Michael Porter proposed a now widely accepted competitive forces model that includes _____ forces.
three
b.
four
five
d.
six
c
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51. _____ is a strategy for gaining competitive advantage wherein a company strives to deliver distinct products and
services.
Cost leadership
b.
Differentiation
Niche strategy
d.
Structure alteration
b
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52. An agreement between two or more companies that involves the joint introduction and distribution of goods and
Bloom’s: Knowledge
Chapter 01: Information Systems in Perspective
services is called ______.
niche alliance
b.
cost leadership
strategic partnership
d.
differentiation partnership
c
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53. The _____ is the number of years required to recover the initial cost of an investment.
cash flow
b.
payback period
internal rate duration
d.
time value point
b
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54. The _____ visa program allows skilled employees from foreign lands into the United States.
H-1B
b.
L-1B
B-1
d.
V-1A
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Bloom’s: Knowledge
55. _____ is responsible for implementing a new information systems required to support an organization’s existing and
future business needs.
An operations group
b.
A development group
A support group
d.
The chief technology officer
b
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56. Predicting future events to avoid problems is called _____.
forecasting
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57. In information systems, _____ means converting or transforming data into useful outputs.
58. The _____ is the world’s largest computer network, consisting of thousands of interconnected networks, all freely
exchanging information.
59. The technology used to create the Internet is also being applied within companies and organizations to create _____,
which allow people in an organization to exchange information and work on projects.
60. _____ involves any business transaction executed electronically between companies (business-to-business, or B2B),
companies and consumers (business-to-consumer, or B2C), consumers and other consumers (consumer-to-consumer, or
C2C), business and the public sector, and consumers and the public sector.
61. The use of mobile, wireless devices to place orders and conduct business is called _____.
62. A(n) _____ is an organized collection of people, processes, software, databases, and devices that provides routine
information to managers and decision makers.
63. _____ allow computers to learn from past mistakes or experiences, such as playing games or making business
decisions.
64. The collection of rules, procedures, and relationships that must be followed by an expert system to achieve value or
the proper outcome is contained in the expert system’s _____.
65. _____ is a newer form of virtual reality that has the potential to superimpose digital data over real photos or images.
66. _____ is the activity of creating or modifying information systems.
67. The _____ phase of systems development involves installing a new system into the actual production computer
environment in which it is expected to run and resolving any problems uncovered in integration and testing.
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68. An approach to work called _____ enables people to work from home or while traveling.
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Bloom’s: Knowledge
69. Workers in many organizations operate in a(n) _____ environment in which software and data storage are provided by
the Internet; the services are run on another organization’s computer hardware, and both software and data are easily
accessed.
cloud computing
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Bloom’s: Knowledge
70. The primary benefits of implementing an _____ system include easing adoption of improved work processes and
increasing access to timely data for decision making.
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71. _____ is a strategy by which an organization determinedly and systematically gathers, organizes, stores, analyzes, and
shares its collective knowledge and experience.
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Bloom’s: Knowledge
Chapter 01: Information Systems in Perspective
Knowledge management
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72. In a manufacturing organization, the _____ is a key value chain whose primary activities include inbound logistics,
operations, outbound logistics, marketing and sales, and service.
supply chain
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73. _____ results in enhancements to existing products, services, and ways of operating and enables an organization to
continually increase profits, lower costs, and gain market share.
Sustaining innovation
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74. The _____ is a theory developed by E.M. Rogers to explain how a new idea or product gains acceptance and diffuses
(or spreads) through a specific population or subset of an organization.
diffusion of innovation theory
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75. _____ is a theory that proposes that every organizational system is made up of four main components—people, tasks,
structure, and technology—with an interaction among the four components so that any change in one of these elements
will necessitate a change in the other three elements.
Leavitt’s diamond
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76. A(n) _____ is a significant and ideally long-term benefit to a company over its competition, and can result in higher-
quality products, better customer service, and lower costs.
Chapter 01: Information Systems in Perspective
77. One of the factors that can lead to attaining a competitive advantage is the _____ among existing competitors.
78. The _____ takes into account the fact that a dollar today is worth more than a dollar paid in the future.
79. The internal rate of return of an investment is the rate of return that makes the net present value of all _____ cash
flows (benefits and costs) generated by a project equal to zero.
80. _____ is a process for testing skills and knowledge resulting in an endorsement by the certifying authority that an
individual is capable of performing particular tasks or jobs.
81. Briefly distinguish between data, information, and knowledge.
82. Define the term information system and briefly identify its fundamental components.
83. Define organizational change. What is Leavitt’s diamond?
84. What is competitive advantage? Identify Porter’s five forces that cause firms to seek competitive advantage.
85. Explain the role of a chief information officer (CIO).