CH. 1 T/F

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

F

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

F

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

F

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

F

3) A fully digital firm produces only digital goods or services.

False

5) 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

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

False

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

False

11) 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.

T

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

T

15) Investment in IT is over 50% of all invested capital.

T

16) 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 used to achieve customer intimacy.

T

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

T

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

T

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

T

6) Computers are only part of an information system.

True

1) Internet advertising is growing at approximately 10 percent a year.

True

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

True

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

True

8) The dimensions of information systems are management, organizations, and information technology.

True