Chapter 1 - Quiz

An example of raw data from a national chain of automobile stores would be

1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky

Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments

True

Identifying a problem includes the agreeing that a problem exists.

True

In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company.

True

Internet advertising is growing at approximately 10 percent a year.

True

The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems.

True

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracing and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy.

True

UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution uses to achieve customer intimacy.

True

The six important business objectives of information technology are: new products, services, and business models; customer and supplier intimacy; improved decision-making; competitive advantage; operational excellence, and

improved decision making

The three activities in an information system that produce the information organizations use to control operations are:

input, processing, and output.

The hardware and software used to transfer data in an organization is called:

networking and telecommunications technology

Data management technology consists of:

the software governing the organization of data on physical storage media

What is output?

transfers processed information to the people who will use it or to the activities for which it will be used

In a hierarchical organization, the upper levels consist of:

B) managerial, professional, and technical workers.

Which of the following choices may lead to competitive advantage: (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real time?A) 1 onlyB) 1 and 2C) 2 and 3D) 1, 2, and 3

D) 1, 2 and 3

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the hardware and software needed.

False

Internet advertising is growing at a rate of more than 30 percent.

False

Intranets are private corporate networks extended to authorized users outside the organization.

False

Whereas marketing and financial careers have been transformed by the growth in information systems, management has- so far- remained relatively unaffected.

False

A fully digital firm produces only digital goods or services.

False, an example is eBAY

Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.

False, computer literacy is the knowledge of information technology.

Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less.

False, even though generally speaking it is true.

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.

False, information systems consist of something different.

There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology.

False, instead of information technology the fourth function is human resources.

Intranets allow firms to work easily with third-party suppliers and vendors.

False, intranet is only applied within the business.

Knowledge workers assist with paperwork at all levels of the firm.

False, not all levels do paperwork.

Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization.

False, they are called business functions not processes.

Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.

TRUE

Identifying a problem includes agreeing that a problem exists.

TRUE

In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.

TRUE

Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013.

TRUE

The dimensions of information systems are people, organizations, and information technology.

TRUE

Aging hardware and outdated software are examples of the ________ dimension of business problems.

Technology

Inadequate database capacity is an example of the ________ dimension of business problems.

Technology

A business model describes how a company produces, delivers and sells a product or service to create wealth.

True

A firm that invests in efficient business processes is making an investment in organizational complementary assets.

True

A substantial part of management responsibility is creative work driven by new knowledge and information.

True

An IT infrastructure provides the platform on which the firm can build its information systems.

True

An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.

True

Computers are only part of an information system.

True

Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.

True

Forensic accounting is used to investigate bankruptcies and contract disputes.

True

Business processes

A) include informal work practices

Journalist Thomas Friedman's description of the world as "flat" referred to:

A) the flattening of economic and cultural advantages of developed countries.

The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they have left the office. This is a business problem that falls into the:

B) people dimension

The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its

Culture

An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support:

Decision making and control in an organization.

A network requires at least three computers and a shared resource.

FALSE

IT managerial jobs are outsourced easily because of the universal standards used by the Internet.

FALSE

Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.

FALSE

Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.

FALSE

Political conflict is an example of the people dimension of business problems.

FALSE

There are two types of outsourcing: offshore outsourcing and foreign outsourcing.

FALSE

Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.

FALSE

The first step in the four-step model of business problem solving is:

Identifying the problem

The final step in the four-step model of business problem solving is:

Implementation

Verizon's implementation of a Web-based digital dashboard to provide managers with real-time information such as customer complaints is an example of

Improved decision making

The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of info systems to achieve which business objective?

Improved efficiency

An intranet uses

Internet technology within the boundaries of the firm.

The field that deals with behavioral issues as well as technical issues surrounding the development use an impact of information systems used by managers and employees in the firm is called

Management information systems

The average number of tickets sold daily online is an example of

Meaningful information

electronic computers and related software programs are the technical foundation, the tools and materials, of

Modern information systems

As discussed in the chapter opening case, the Yankees' use of information systems in their new stadium can be seen as an effort to achieve which of the primary business objectives?

Operational excellence

Poor business processes and unsupportive culture are examples of the ________ dimension of business problems.

Organizational

Flapjack Flats, a new pancake chain, is having difficulty finding pancake chefs. This is a business problem that falls into the:

Organizational dimension

Legal and regulatory compliance is an example of the ________ dimension of business problems

People

Converting raw data into a more meaningful form is called

Processing

Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output. C) customer and product data. D) sales information.

Raw input

One of the most frequent errors in problem solving is

Rushing to judgment

The use of information systems because of necessity describes the business objective of:

Survival

An extranet is a private intranet extended to authorized users outside the organization.

TRUE

An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing

TRUE

As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks

TRUE

Which of the following would not be considered part of the implementation phase of problem solving?

evaluating a selection of software packages for implementing a new business process - Given

In choosing the best solution for a business problem, one of the most important considerations is:

existing resources and skills.