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Import Settings: Base Settings: Brownstone Default Information Field: AACSB Information Field: Difficulty Information Field: Section Ref Highest Answer Letter: D Multiple Keywords in Same Paragraph: No

Chapter: Chapter 02: Information Technologies: Concepts and Management

Multiple Choice

1. In the digital economy, how well a company transforms itself from traditional modes of operation to e-business depends on all of the following EXCEPT: A) how well the company adapts its structure and processes to take advantage of emerging technologies B) its degree of outsourcing C) the IT architecture the company uses D) the IT infrastructure the company uses Ans: B AACSB: Use of information technology Difficulty: Easy Section Ref: p. 40

2. A(n) ______________ is a computer program designed to support a specific task or a business process, such as processing the payroll. A) application program B) database program C) file system D) operating system Ans: A


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Difficulty: Easy Section Ref: p. 41

3. A(n) _______ consists of stored numeric, alphanumeric, figures, sounds, or images organized for retrieval. A) data B) database C) information D) knowledge Ans: B Difficulty: Easy Section Ref: p. 41

4. ________ refers to an elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organized to convey any specific meeting. A) Data B) Database C) Information D) Knowledge Ans: A AACSB: Use of information technology Difficulty: Easy Section Ref: p. 41

5. A student's grade point average is an example of ___________ . A) data B) database C) information D) knowledge Ans: C AACSB: Use of information technology Difficulty: Medium Section Ref: p. 41


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6. An employee's performance rating in comparison with the performance ratings of other employees is an example of ____________ . A) Data B) Database C) Information D) Knowledge Ans: D AACSB: Critical thinking Difficulty: Medium Section Ref: p. 41

7. ____________ support functional managers by providing them with periodic reports such as weekly sales volume and comparisons of actual expenses to budgeted expenses. A) Personal information managements B) Transaction processing systems C) Management information systems D) Enterprise systems Ans: C AACSB: Use of information technology Difficulty: Medium Section Ref: p. 44

8. The __________________ are considered critical to the success of any organization since they support core operations, such as purchasing of materials, billing customers, preparing a payroll, and shipping goods to customers. A) personal information managements B) transaction processing systems C) management information systems D) enterprise systems Ans: B AACSB: Use of information technology Difficulty: Medium Section Ref: p. 43


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9. Business processes that involve taking orders from customers and fulfilling them after buying materials from a supplier are supported by which type of information system? A) Personal information management B) Transaction processing system C) Management information system D) Enterprise system Ans: C AACSB: Use of information technology Difficulty: Medium Section Ref: p. 47

10. ____________ deal in general with middle-management activities such as short-term planning, organizing, and control and may involve BI systems with reporting and query capabilities. A) Operational activities B) Managerial activities C) Strategic activities D) Supply chain activities Ans: B AACSB: Critical thinking Difficulty: Medium Section Ref: p. 51

11. ____________ are short-term in nature and mainly supported by TPSs, MISs, and mobile systems. A) Operational activities B) Managerial activities C) Strategic activities D) Supply chain activities Ans: A Difficulty: Medium Section Ref: p. 51


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12. IT services include each of the following services EXCEPT: A) System development B) Data management C) Managing security and risk D) Business intelligence Ans: D AACSB: Use of information technology Difficulty: Hard Section Ref: p. 53

13. Many professional workers are classified as _______________ because they create information and knowledge as part of their work and integrate it into the business. A) data workers B) information workers C) knowledge workers D) digital workers Ans: C Difficulty: Medium Section Ref: p. 54

14. The main support provided by IT for the _________________ is to improve procurement activities and relationships with suppliers. A) downstream supply chain B) industry supply chain C) interorganizational supply chain D) upstream supply chain Ans: D AACSB: Use of information technology Difficulty: Medium Section Ref: p. 55

15. What type of software helps in managing both the internal and external relationships with


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business partners? A) enterprise resource planning B) industry-specific systems C) transaction processing systems D) data systems Ans: A AACSB: Use of information technology Difficulty: Hard Section Ref: p. 55

16. _________ software helps in decision making related both to internal segments and to their relationships with external segments. A) CRM B) MIS C) SCM D) TPS Ans: C AACSB: Use of information technology Difficulty: Medium Section Ref: p. 55

17. Which of the following is not a major component of an organization's information infrastructure? A) physical facilities B) Internet C) integration, operation, and documentation services D) management that support the shared computing resources Ans: B AACSB: Use of information technology Difficulty: Medium Section Ref: p. 56

18. Which of the following is not a characteristic of SaaS? A) They offer specialized, customer, and often higher cost software services sourced at will from


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some type of service provider. B) Instead of buying and installing expensive packaged enterprise applications, users can access applications over a network, with an Internet browser being the only absolute necessity. C) It helps overcome the common challenge to an enterprise of being able to meet fluctuating demands efficiently, which is a requirement of the adaptive enterprise. D) Usually there is no hardware and software to buy since the applications are used over the Internet and paid for through a fixed subscription fee, or payable per an actual usage fee. Ans: A AACSB: Critical thinking Difficulty: Medium Section Ref: p. 58

True/False

19. Information systems can be organized according to organizational hierarchy (e.g., departmental, enterprisewide, and interorganizational) or by the nature of supported task (e.g., operational, managerial, and strategic). Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 42

20. The data collected in a TPS are used to build other support systems. Ans: True AACSB: Use of information technology Difficulty: Easy Section Ref: p. 43

21. TPS and MIS are the only main IT support systems. Ans: False


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AACSB: Use of information technology Difficulty: Easy Section Ref: p. 43

22. Managerial activities, decisions, and the information systems that support them can be classified as operational, tactical, and strategic. Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 51

23. The intranet refers to the shared information resources (such as corporate networks, databases) and their linkages, operation, maintenance, and management. Ans: False AACSB: Use of information technology Difficulty: Medium Section Ref: p. 56

24. In client/server architecture, several PCs are networked among themselves and are connected to databases and other devices that provide services to the client computers. Ans: True AACSB: Use of information technology Difficulty: Hard Section Ref: p. 56

25. Legacy systems are newer Web-based systems that have a powerful mainframe as their core. Ans: False AACSB: Use of information technology Difficulty: Medium Section Ref: p. 62


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26. Example of Web-based applications or services that are accessible from a Web browser are e-procurement, corporate portals, electronic markets and exchanges, and mobile commerce. Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 55

27. The software-as-a-service (SaaS) approach is based on the trend for renting application software as needed rather than buying or building it. Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 58

28. Service-oriented architecture (SOA) refers to architecture that assembles small information systems, one for each business service, to create new applications, usually by using Web Services technology. Ans: True AACSB: Use of information technology Difficulty: Hard Section Ref: p. 59

29. Information resources are extremely important, and they must be managed properly by experts in IT and not by end users. Ans: False AACSB: Use of information technology Difficulty: Medium Section Ref: p. 65


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30. The role of the Information Systems department has become more managerial, and its importance is rapidly increasing. Ans: True AACSB: Use of information technology Difficulty: Easy Section Ref: p. 65

31. According to the concept of mass production, a manufacturer produces small amounts of customized products at a very low cost, and then “pushes� them to consumers. Ans: False AACSB: Use of information technology Difficulty: Medium Section Ref: p. 74

32. A supply chain is the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers; and includes the organizations and processes that create and deliver these products, information, and services to the end customers. Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 76

33. The internal part of the supply chain includes all of the in-house processes used in transforming the inputs received from the suppliers into the organization's outputs. Ans: True AACSB: Use of information technology Difficulty: Medium Section Ref: p. 77


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34. The upstream part of the supply chain includes all the activities involved in delivering the products to the final customers. Ans: False AACSB: Use of information technology Difficulty: Medium Section Ref: p. 77

Fill-In-The-Blank

35. ___________ are small systems that are built to support many individuals. Ans: Personal information management AACSB: Use of information technology Difficulty: Easy Section Ref: p. 42

36. A(n) _________is a collection of activities performed to accomplish a clearly defined goal. Ans: business process Difficulty: Medium Section Ref: p. 47

37. Interorganizational information systems that connect companies located in two or more countries are referred to as _________ . Ans: global information systems AACSB: Use of information technology Difficulty: Medium Section Ref: p. 49


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38. Among clerical workers, those who use, manipulate, or disseminate information are referred to as _________ . Ans: data workers AACSB: Use of information technology Difficulty: Easy Section Ref: p. 54

39. _________ is a high-level map or plan of the information assets in an organization including the physical design of the building that holds the hardware. Ans: Information technology architecture Difficulty: Hard Section Ref: p. 56

40. A form of electronic markets is _________, which are Web-based public marketplaces where many business buyers and many sellers interact dynamically. Ans: electronic exchanges AACSB: Use of information technology Difficulty: Medium Section Ref: p. 57

41. An increasingly popular enterprise model in which computing resources are made available to the user when the resources are needed is the _______________ model. Ans: Software-as-a-Service AACSB: Use of information technology Difficulty: Hard Section Ref: p. 58


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42. _________ is computing that is as available, reliable, and secure as electricity, water services, and telephony. Ans: Utility computing Difficulty: Easy Section Ref: p. 59

43. Networks can be used to support the concept of _________ , in which the unused processing cycles of all computers in a given network can be harnessed to create powerful computing capabilities. Ans: grid computing AACSB: Use of information technology Difficulty: Medium Section Ref: p. 60

44. _________ commerce refers to the buying and selling of goods and services in a wireless environment, such as through wireless devices like cellular telephones and PDAs. Ans: Mobile AACSB: Use of information technology Difficulty: Easy Section Ref: p. 60

45. The basic idea of _________ is to reuse and reconnect existing IT assets or services rather than more time consuming and costly development of new systems. Ans: SOA AACSB: Use of information technology Difficulty: Medium Section Ref: p. 62

46. _________ . are self-contained, self-describing business and consumer modular applications, delivered over the Internet, that users can select and combine through almost any device, ranging


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from personal computers to mobile phones. Ans: Web services AACSB: Use of information technology Difficulty: Medium Section Ref: p. 62

47. _________ can increase the flexibility of IT assets, allowing companies to consolidate IT infrastructure, reduce maintenance and administration costs, and prepare for strategic IT initiatives such as grid computing, utility computing, and service-oriented architecture. Ans: Virtualization AACSB: Use of information technology Difficulty: Hard Section Ref: p. 64

Essay

48. Describe an information infrastructure and list the five major components of the infrastructure. Ans: An information infrastructure consists of the physical facilities, services, and management that support all shared computing resources in an organization. The five major components of the infrastructure are: (1) computer hardware, (2) software, (3) networks and communication facilities, (4) databases and data workers, and (5) information management personnel. AACSB: Use of information technology Difficulty: Medium Section Ref: p. 56

49. Identify three major managerial activities that are supported or enabled by IT. Ans: Three of the major IT-supported managerial activities are (1) improving supply chain operations, (2) integrating departmental systems with ERP, and (3) introducing a variety of customer relationship management activities. IT is a major enabler of all of these.


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AACSB: Use of information technology Difficulty: Medium Section Ref: p. 54

50. Explain Web-based systems and list three examples. Ans: Web-based systems refer to those applications or services that reside on a server that is accessible using a Web browser and work with Internet protocols. Some examples are eprocurement, corporate portals, electronic markets and exchanges, and mobile commerce. AACSB: Use of information technology Difficulty: Medium Section Ref: p. 55


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