Business & Society, 16e (Lawrence)
Chapter 12 Regulating and Managing Information Technology
1) In 2018 the European Union passed legislation to protect personal user data during collection,
processing, and storage.
2) All countries have nearly identical intellectual property laws.
3) The collection of large amounts of consumer data by businesses creates ethical issues of privacy
and security.
4) The stakeholders rarely targeted by companies for personal data collection are employees and
consumers.
5) E-business revenues are expected to rise primarily due to consumers in emerging markets.
6) E-business refers to electronic exchanges from business to business and consumer to business.
7) Robotic technology has advanced enough to generate many new business opportunities.
8) A 2017 IBM study predicted that the use of cognitive computing would decline rapidly over the
next decade.
9) The responsibility of managing technology with its many privacy and security issues for
business organizations is entrusted to the CFO.
10) One key role of the Chief Information Officer is to clearly define the value of information and
how to protect it against threats.
11) The primary reason that hackers hack is to make money.
12) Cybersecurity experts recommend that firms implement an incident-response plan for
cyberattacks, which are strictly preventative in nature.
13) Some experts believe that cybercrime can only be controlled through international government
coordination.
14) Net neutrality refers to the principle that the wealthier users should pay higher rates for faster
Internet speeds.
15) In 2014, NATO ratified a change to its mission of collective defense by stating that a
cyberattack on one member nation would be declared an attack on all members.
16) The purpose of the right to be forgotten is to:
A) Increase protection of privacy and personal information.
B) Protect property rights.
C) Protect intellectual property.
D) Prevent software privacy.
17) Intellectual property refers to:
A) Protecting one’s ideas, concepts, and symbolic creations.
B) Special laws protecting copyrights, patents, and trademarks.
C) Prohibiting the downloading of commercial software or videogames.
D) All of these answers are correct.
18) Software piracy is a major problem in which part of the world?
A) Globally.
B) North America only.
C) Asia only.
D) Europe only.
19) This Act makes it a crime to circumvent antipiracy measures built into most commercial
software agreements between the manufacturers and their users:
A) Software Business Piracy Act.
B) Digital Millennium Copyright Act.
C) Intellectual Property Millennium Act.
D) Copyright Act of 1998.
20) One argument in favor of net neutrality is:
A) Businesses that pay more should have faster Internet.
B) Broadband providers should have free reign to block any site they object to.
C) To fairly compete, small, medium, and large firms should have the same Internet bandwidth.
D) Individuals don’t need fast Internet, only businesses do.
21) Restrictive governments often reduce or eliminate citizen access to the Internet and social
media sites in order to:
A) Suppress political dissent.
B) Impose religious or ideological views.
C) Increase bandwidth for government usage.
D) Both of these answers are correct: Increase bandwidth for government usage; and suppress
political dissent.
22) MIT researchers determined that 90 percent of shoppers’ credit-card transactions could be used
to:
A) Uniquely identify an individual’s shopping habits and preferences.
B) Collect individual Social Security numbers.
C) Identify an individual shopper using only four bits of secondary information.
D) Both to uniquely identify an individual’s shopping habits and preferences and to identify an
individual shopper using only four bits of secondary information.
23) One ethical concern about businesses collecting vast amounts of stakeholder data is:
A) If the effort actually benefits the stakeholders.
B) The terms and conditions are confusing to consumers.
C) The information is too secure to be useful.
D) There is often not enough detail to build a marketing campaign.
24) Buying and selling goods and services electronically is called:
A) M-commerce.
B) E-business.
C) Telecommunications.
D) Intellectual property.
25) One major advantage of conducting business online is:
A) Enhanced local presence.
B) Cost-effective marketing and promotions
C) No need for professional customer service.
D) Web security is less costly than physical security.
26) The idea that every distribution channel must work together to deliver a unified and consistent
customer experience is called:
A) Multi-channel.
B) Natural monopoly.
C) Fulfillment center.
D) Omnichannel.
27) The use of robotics in the workplace has increased recently because:
A) The cost of robots has decreased.
B) Robots are more reliable than people.
C) New collaborative machines have been invented.
D) All of these answers are correct.
28) According to an Oxford University study, what percentage of current jobs were expected to be
overtaken by robots in the next two decades?
A) About 50 percent.
B) Only around 10 percent.
C) Nearly 90 percent.
D) Less than one percent.
29) According to McKinsey and Company, which position cannot be easily replaced with robots?
A) Repetitive factory jobs.
B) Clerks and bookkeepers.
C) Team managers.
D) Legal researchers.
30) The ability of a digital computer or computer-controlled robot to perform tasks commonly
associated with intelligent beings is called:
A) Robotics.
B) Artificial intelligence.
C) Cyborg knowledge.
D) Autonomous brainpower.
31) A CIO is the company’s:
A) Chief investigative officer.
B) Chief information officer.
C) Coordinator of international operations.
D) Controller of internal overhead.
32) Over time the role of the CIO:
A) Has remained about the same.
B) Has decreased in level of responsibility.
C) Has changed dramatically, superseding the role of the chief executive officer.
D) Has become more integrated into the overall strategic direction of the firm.
33) The role of the CIO includes all of these tasks except:
A) Acting as lead security officer.
B) Educating the organization about technology initiatives.
C) Marketing technology projects to stakeholders.
D) Monitoring the appropriate level of employee productivity.
34) A critical characteristic of a successful CIO is:
A) Someone who relies on the chain of command.
B) A leader with the ability to speak the language of the business.
C) Dedicated to full-time back-office work.
D) An expert on databases.
35) Downloading illegal files, spreading computer viruses, and stealing from online bank accounts
is collectively referred to as:
A) Hacking.
B) Software piracy.
C) Cybercrime.
D) Internet censorship.
36) An example of a hacking job motivated by retaliation is:
A) A woman hired a hacker to break into Facebook to find out if her boyfriend was cheating on
her.
B) A foreign government stole data from U.S. institutions and asked for ransom to return it.
C) A white hatter broke into a major software firm’s computer network exposing security flaws.
D) A gray hatter revealed previously unreported bugs on a popular online shopping site.
37) As of 2016 what was the average cost of a data breach in the United States?
A) $450 billion.
B) $2.24 million.
C) $7 million.
D) $500 thousand.
38) Hackers employed by businesses or governments to intentionally discover weaknesses in
information systems are called:
A) Gray hatters.
B) Black hatters.
C) White hatters.
D) Mad hatters.
39) Cybersecurity experts recommend including which essential elements for an incident-response
plan for cyberattacks?
A) Support from executive leadership.
B) Involvement by all functional departments.
C) Focus on how to respond to a breach.
D) All of these answers are correct.
40) This annual international gathering on January 28 brought together leaders from the U.S. and
dozens of European countries to address the global nature of cyberattacks:
A) Cyberattack Awareness Day.
B) Anti-cyber International.
C) International Defense Against Web Attacks (IDAWA).
D) Data Privacy Day.
41) Increased cyber activity by which countries prompted NATO officials to brand them as
“patriotic hackers”?
A) Russia and Estonia.
B) Iran and China.
C) Iraq and Pakistan.
D) Mexico and Canada.
42) The EU law passed in 2018 that required companies to promptly report personal data breaches
was called:
A) Digital Millennial Copyright Act.
B) Right to be Forgotten.
C) General Data Protection Regulation.
D) Global Policy Forum.
43) One of the biggest challenges for autonomous vehicle manufacturers, according to the case
The Arrival of Autonomous Cars—Bright Future or Looming Threat? was:
A) Keeping production costs low enough to make a profit.
B) Ensuring the vehicles were safer than driver-controlled automobiles.
C) Complying with international autonomous vehicle regulations.
D) Building cars luxurious enough to attract wealthy customers.
44) Explain the concept of the “right to be forgotten.” What are its implications to governments,
businesses, and individuals?
45) Discuss some of the interventions that different governments have taken to control information
technology in their nations. How have these steps affected individual privacy rights as well as
public security?
46) What have businesses done to manage personal information about their employees and
customers? Identify a specific company that has taken action and discuss the results.
47) Discuss the advantages of E-business for businesses around the world and of different sizes.
48) How is the corporate Chief Information Officer (CIO) a “security guard” for the organization?
What are some of the important responsibilities of the CIO?
49) Discuss the motivations of cyber criminals. Explain the costs that cybercrime have on
businesses, governments, and individuals.
50) Discuss the global impact of cybercrime and explain how some international and national
groups are fighting it.