Test Bank For Information Systems Today Managing in the Digital World 9th Edition By Joseph Valacich

Information Systems Today Managing in the Digital World 9e Joseph Valacich, Christoph Schneider, Matthew Hashim (Test Bank All Chapters, 100% Original Verified, A+ Grade) Information Systems Today, 9e (Valacich) Chapter 1 Managing in the Digital World 1) Advances in cloud computing (think Gmail, Evernote, or DropBox) allow for accessing emails, files, notes, and the like from different devices, enhancing portability and mobility in computing.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 2) The use of nearly any information technology or system to support every part of the business is known as e-business.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 3) The trend of using one's own device for communicating in the workplace is an example of consumerization of IT. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 4) The development of low-cost computing platforms and communication technologies is an economic change brought about by globalization enabled by information technology.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

1

5) Increase in frequency of international travel, tourism, and immigration is a cultural change brought about by globalization enabled by information technology.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 6) Globalization is the integration of economies throughout the world, enabled by innovation and technological progress.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 7) One of the main reasons for a company to outsource its business is to focus on non-core business activities.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 8) Countries such as India remain popular for offshore outsourcing because of rising salaries.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 9) The network effect refers to the notion that the value of a network is based on the number of networks being used.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

2

10) Vendors are required by law to respect the privacy of people who make Web purchases.

Answer: FALSE AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 11) Knowledge is the ability to understand information, form opinions, and make decisions or predictions based on the information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 12) An information system is a combination of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute data.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 13) The technical area of competency of an IS professional is the easiest to maintain in the digital world because of the huge popularity of individual technologies.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 14) Transaction processing systems (TPS) are used by a narrow range of organizations only to process customer transactions more efficiently.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

3

15) The purpose of a knowledge management system is to create, store, analyze, and manage spatial data.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 16) Office automation systems such as Microsoft Office and the OpenOffice.org Productivity Suite provide word processing, spreadsheet, and other personal productivity tools, enabling knowledge workers to accomplish their tasks.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 17) IS personnel with service mentality believe that the customers own the technology and the information and that the technology and information are there for the customers, not for the systems personnel.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 18) The Electronic Communications Privacy Act (ECPA) offered far stronger support for e-mail communications than it did for voice mail.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 19) Data about one's tastes and preferences is an example of demographic data.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.5: Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

4

20) Identify a true statement about the function of knowledge workers.

A) They use knowledge to perform their jobs, but do not create knowledge.

B) They create, modify, and/or synthesize knowledge as a fundamental part of their jobs.

C) They lack the ability to solve non-routine problems at work.

D) They modify knowledge created by others, but do not create knowledge themselves.

E) They work in a monotonous workplace and lack innovation.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 21) Which of the following predictions made by Peter Drucker is true?

A) Knowledge workers have less bargaining power than workers in other industries.

B) Knowledge workers lack valuable real-world skills.

C) Knowledge workers lack reliance on formal education.

D) Knowledge workers are continually learning how to do their jobs better.

E) Knowledge workers are paid less in comparison with their prior industrial counterparts.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 22) Who among the following coined the term "knowledge worker"?

A) Peter Drucker B) Alvin Toffler C) Johannes Gutenberg D) Thomas L. Friedman E) Mark Zuckerberg Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

5

23) The various services offered by Google, such as Gmail (e-mail), Google Drive (word processing), or Google Calendar, are good examples of ________.

A) cloud computing B) computer assembling C) data mining D) systems integration E) internetworking Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 24) Which of the following terms means "knowing how to use a computer"?

A) information security B) cloud computing C) computer literacy D) computer compatibility E) collaborative thinking Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 25) The ability to independently learn new technologies as they emerge and assess their impact on your work and life is called ________.

A) computer networking B) computer adaptation C) computer fluency D) computer compatibility E) computer assembling Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

6

26) Which of the following best describes the network effect?

A) The value of a network depends on the number of mobile devices that are attached.

B) It refers to the type of network an organization employs.

C) It refers to the notion that the value of a network increases with the number of users.

D) It refers to the effect of the wireless devices that are attached.

E) It refers to the idea that networks are attached to each other.

Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 27) Which of the following is an economic change brought about by globalization enabled by information technology?

A) increase in the frequency of worldwide fads and phenomena B) development of low-cost computing platforms C) availability of low-cost communication systems D) increase in the outsourcing of labor E) decentralization of organizations Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 28) A network of a broad range of physical objects that can automatically share data over the Internet is called ________.

A) the Internet of Things B) the Broad Internet C) the Industrial Internet of Things D) the Wireless Internet Network E) the Internet of Big Data Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

7

29) A dataset comprised of extremely large amounts of complex data would best be described as ________.

A) mega data B) network data C) extreme data D) big data E) a database Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 30) Identify a key factor of globalization.

A) evolution of technology B) anchor point milestones C) concept development projects D) timeboxing strategies E) external interface requirements Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 31) Joe and Megan know how to use a computer. Which of the following describes this fact?

A) computer knowledge worker B) expert computer user C) computer expert D) computer fluency E) computer literacy Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

8

32) Which of the following best explains the process of moving business processes or tasks to another company?

A) offshoring B) liquidating C) cloud computing D) downsizing E) outsourcing Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 33) Which of the following can be cited as an example of outsourcing?

A) Microsoft hands over its customer service function to Convergys, located in India.

B) Volkswagen acquires a steel manufacturing plant to reduce its overall production costs.

C) Dell sources computer parts from suppliers located in Russia.

D) Audi starts a manufacturing facility in China to take advantage of low labor costs.

E) P&G acquires a retail outlet to reduce its distribution costs.

Answer: A AACSB: Analytical thinking Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Application 34) The Internet of Things and the massive amounts of data generated enabled the creation of service-oriented business models. Identify this model.

A) service B) servitization C) extreme data D) big data E) a database Answer: B AACSB: Analytic skills Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

9

35) Outsourcing has seen a huge increase because of the ________.

A) increase in decentralization B) increase in the use of cloud computing C) increase in advertising costs D) decrease in telecommunication costs E) decrease in the cost of raw materials Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 36) TransCorp is an IT firm that is looking to outsource its payroll processes. Which of the following statements, if true, would most strengthen the decision to outsource?

A) Companies in other countries can do the same amount of work at a comparable cost.

B) Outsourcing has become a trend among most firms in developed nations.

C) Companies in other countries are more efficient in all aspects of work and are also cost effective.

D) Firms across the globe are adopting cloud computing systems.

E) The firm is enjoying good profit margins.

Answer: C AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Application 37) Which of the following is a governmental challenge of operating in the digital world?

A) differences in power distance and uncertainty avoidance B) import and export regulations C) aging population in the United States D) videoconferences across different time zones E) availability of labor force and salary differences Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

10

38) Peter Drucker stated that a knowledge society would emerge in the future that meant ________.

A) knowledge workers are typically professionals who are well educated B) processing knowledge would be as important as processing land, labor, or capital C) a society would be computer literate D) professionals would possess many different computer devices E) knowledge workers would lead society Answer: B AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 39) Which of the following is a geoeconomic challenge of operating in the digital world?

A) differences in network infrastructures B) differences in the concept of time and life focus C) differences in measurement units D) differences in export and import regulations E) differences in languages Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 40) The term urbanization is best described as ________.

A) the expansion of city boundaries B) the movement of urban areas to the country C) the movement of rural populations to urban areas D) the movement of people between cities E) the loss of people in major cities Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

11

41) The convergence of information technology and operations technology, offering the potential for tremendous improvements in efficiency, product quality, agility, and flexibility, allowing companies to mass-produce customized products and better monitor supply chains, refers to which term below?

A) Industrial Internet of Things B) Internet of Things C) Applications in the Cloud D) The Technology Effect E) The Technology of Things Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 42) Identify a major ethical challenge society faces today when considering the strong linkage between computer literacy and a person's ability to compete in the information age.

A) horizontal disparity B) digital divide C) electronic gap D) power distance E) knowledge divide Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 43) Which of the following can be cited as an example of a digital divide?

A) Unlike Joey, Ryan has access to more books and good advice because he studies in a better school.

B) Unlike Ben, Claudia possesses superior analytical skills that make her better at mathematics.

C) Kevin has better chances of promotion when compared to Vincent because of his people skills.

D) Lora has access to more information than Frank because she knows how to operate a computer.

E) Sam has better multitasking skills than Neal that make him a better manager.

Answer: D AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Application

12

44) A global project called One Laptop per Child is attempting to distribute low-cost laptop computers to children in developing countries around the world in an attempt to shrink the ________.

A) digital divide B) systems integration C) power distance D) horizontal disparity E) information privacy Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Application 45) One of the key drivers of continuous innovations and new business models has been the rise of APIs which stands for ________.

A) application program installer B) assembler program interface C) application programming interface D) assembler plugin interface E) application processing installer Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 46) The drivers of digital density include ________.

A) Connections, Data, Interactions B) Connections, Data, Internet of Things C) Class, Data, Interactions D) Class, Developer, Internet of Things E) Connections, Developer, Interactions Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

13

47) ________ refers to physical computer equipment, such as the computer monitor, central processing unit, or keyboard.

A) Adware B) Malware C) Stealware D) Hardware E) Spyware Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 48) ________ refer(s) to a program or set of programs that tell the computer to perform certain tasks.

A) Software B) Firmware C) Hardware logic D) Data E) Networks Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 49) Which of the following statements is true about information systems (IS) and information technology (IT)?

A) IT programs have a stronger managerial focus than IS programs.

B) IS programs have a stronger data retrieval capacity than IT programs.

C) Software and telecommunications are present in IS, but excluded from IT. D) The difference between IT and IS is increasing due to globalization.

E) IT programs are more technical than IS programs.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

14

50) Which of the following statements is true about data?

A) It can be defined as a representation of reality.

B) It is the ability to understand information.

C) It has no meaning in and of itself.

D) It is the ability to make decisions or predictions based on information.

E) It organizes or manipulates information to make it suitable for a given task.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 51) Which of the following statements is true about information?

A) It has no meaning in and of itself.

B) It organizes or manipulates knowledge to make it suitable for a given task.

C) It is a set of unformatted words and numbers.

D) It is a representation of reality.

E) It is the ability to make predictions based on data.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 52) Which of the following statements is true about knowledge?

A) It has no meaning in and of itself.

B) It is a set of unformatted words and numbers.

C) It is the ability to understand information.

D) It helps to convert information into raw data.

E) It has little value in comparison with raw data.

Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

15

53) Which of the following is true about the responsibility of an IS manager in the context of information systems management?

A) He is the highest-ranking official and is responsible for IS use throughout the firm.

B) He is responsible for managing an existing information system.

C) He is the lowest-ranking official responsible for managing databases throughout the organization.

D) He is responsible for managing security measures of a newly installed information system.

E) He is the highest-ranking official and is responsible for strategic planning throughout the organization.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 54) Which of the following IS personnel is responsible for managing disaster recovery within an organization?

A) IS security manager B) IS auditor C) Webmaster D) programmer E) database administrator Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 55) Which of the following is the highest-ranking IS personnel responsible for strategic planning and IS use throughout a firm?

A) chief information officer B) IS security manager C) IS auditor D) systems analyst E) database administrator Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

16

56) In information systems management, a systems consultant is responsible for ________.

A) analyzing business requirements and selecting information systems that meet those needs B) coding, testing, debugging, and installing programs C) auditing information systems for compliance with internal and external standards D) managing security measures and disaster recovery E) providing information systems knowledge to external clients Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 57) Which of the following core competencies are part of an IS personnel's technical knowledge and skills?

A) systems analysis and design B) integrating subsystems and systems C) interpersonal skills and group dynamics D) network administration E) technological communication and presentation Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 58) Which of the following core competencies is part of an IS personnel's business knowledge and skills?

A) cloud computing B) technological communication and presentation C) systems development life cycle D) integrating subsystems and systems E) virtualization Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

17

59) Which of the following core competencies is part of an IS personnel's systems knowledge and skills?

A) hardware platforms B) virtualization C) information gathering and analysis D) cabling and network interface cards E) application software Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 60) Connecting host computers and their networks together to form even larger networks is called ________.

A) data mining B) internetworking C) Ethernet framing D) network simulation E) queuing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 61) The process of connecting separate information systems and data to improve business processes and decision making is known as ________.

A) database development B) business intelligence C) systems integration D) cloud computing E) data mining Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

18

62) Which of the following types of information systems facilitates collaboration and knowledge sharing?

A) visualization system B) word processor C) intelligent system D) electronic commerce system E) social software Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 63) Which of the following types of information systems enables people to communicate, team up, and coordinate with each other?

A) electronic commerce system B) geographic information system C) virtualization system D) intelligent system E) collaboration system Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 64) Which of the following types of information systems creates, stores, analyzes, and manages spatial data?

A) electronic commerce system B) collaboration system C) virtualization system D) geographic information system E) decision support system Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

19

65) Which of the following types of information systems enables customers to buy goods and services from a firm's Web site?

A) supply chain management system B) electronic commerce system C) geographic information system D) collaboration system E) customer relationship management system Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 66) Which of the following types of information systems supports the coordination of suppliers, product or service production, and distribution?

A) supply chain management system B) electronic commerce system C) intelligent system D) collaboration system E) geographic information system Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 67) Identify the purpose of a transaction processing system used in organizations.

A) to support the activities within a specific functional area of the firm B) to handle day-to-day business event data at the operational level of the organization C) to produce detailed information to help manage a firm or part of a firm D) to support the coordination of suppliers, product or service production, and distribution E) to enable customers to buy goods and services from a firm's Web site Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

20

68) The purpose of a(n) ________ is to support and integrate all facets of the business, including planning, manufacturing, sales, marketing, and so on.

A) intelligent system B) functional area information system C) electronic commerce system D) enterprise resource planning system E) management information system Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 69) The purpose of an intelligent system is to ________.

A) enable people to communicate, collaborate, and coordinate with each other B) create, store, analyze, and manage spatial data C) emulate or enhance human capabilities D) support the coordination of suppliers, product or service production, and distribution E) produce detailed information to help manage a part of the firm Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 70) Which of the following can be cited as an example of a supply chain management system?

A) procurement planning B) market analysis C) knowledge portal D) sales force automation E) product demand forecasting system Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

21

71) Identify the purpose of an office automation system.

A) to create, store, analyze, and manage spatial data B) to provide access to databases in order to support quantitative decision making C) to support a wide range of predefined day-to-day activities of individuals and small groups D) to support interaction between the firm and its customers E) to enable customers to buy goods and services from a firm's Web site Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 72) With respect to the types of information systems used in organizations, a grocery store checkout cash register with a connection to a network is an example of a(n) ________.

A) intelligent system B) functional area information system C) decision support system D) transaction processing system E) electronic commerce system Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 73) Microsoft's Exchange/Outlook and Lotus Notes provide people with e-mail, automated calendaring, and online, threaded discussions, enabling close contact with others, regardless of their location. Identify this type of information system.

A) collaboration system B) office automation system C) data mining and visualization system D) functional area information system E) geographic information system Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

22

74) With respect to the types of information systems used in organizations, Amazon.com is an example of a(n) ________ system.

A) electronic commerce B) geographic information C) virtualization and data mining D) supply chain management E) office automation Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 75) With respect to the types of information systems used in organizations, a word processor is an example of a(n) ________ system.

A) electronic commerce B) supply chain management C) office automation D) geographic information E) data mining and virtualization Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 76) With respect to the types of information systems used in organizations, an automated system for analyzing bank loan applications is an example of a(n) ________ system.

A) geographic information B) electronic commerce C) social software D) visualization E) intelligent Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

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77) With respect to types of information systems used in organizations, an inventory management and planning system is an example of a(n) ________ system.

A) geographic planning B) management information C) electronic commerce D) virtualization E) social software Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 78) With respect to the types of information systems used in organizations, an Online Analytical Processing (OLAP) system is an example of a(n) ________ system.

A) business intelligence B) geographic information C) electronic commerce D) office automation E) social software and collaboration Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 79) With respect to the types of information systems used in organizations, a product demand forecasting system is an example of a(n) ________ system.

A) visualization B) geographic information C) decision support D) social software E) electronic commerce Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept

24

80) With respect to the types of information systems used in organizations, sales force automation is an example of a(n) ________ system.

A) customer relationship management B) electronic commerce C) geographic information D) supply chain management E) data mining and visualization Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 81) With respect to the types of information systems used in organizations, financial, operations, and human resource management is an example of a(n) ________ system.

A) social software B) data mining and visualization C) geographic information D) enterprise resource planning E) electronic commerce Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 82) Both Sony's PlayStation Network and FedEx's systems were developed and are continuously updated to help the companies ________. Choose the option that best fits.

A) maximize their profit B) ensure the systems operate at peak performance C) gain a competitive advantage over their competitors D) be sure their systems are not ubiquitous E) maintain efficiency Answer: C AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 1.3: Describe the dual nature of information systems in the success and failure of modern organizations.

Classification: Concept

25

83) Select the statement below that best describes computer ethics.

A) It is used to describe moral issues and standards of conduct as they pertain to the use of information systems.

B) It is used to describe moral issues and standards of conduct as they pertain to the use of networks.

C) It is used to describe moral issues and standards of conduct as they pertain to the users of networks.

D) It is used to describe the moral issues of how users interact with other users.

E) It is used to describe how issues are resolved between knowledge workers.

Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 84) Mike is at Jim's house and admires his digital music collection. He then downloads the entire collection for his own personal use.

A) It is legal for Mike because he has Jim's agreement.

B) Mike must pay Jim for the right to download the music.

C) Mike can download the music if the value is less than $100.

D) Mike commits a misdemeanor.

E) Mike commits an ethical intellectual property violation.

Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Application 85) Which of the following is used to describe the issues and standards of conduct as they pertain to the use of information systems?

A) virtual ethics B) social informatics C) cyber security D) cloud computing E) computer ethics Answer: E AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

26

86) ________ is concerned with what information an individual should have to reveal to others in the workplace or through other transactions, such as online shopping.

A) Information accessibility B) Information accuracy C) Information privacy D) Information asymmetry E) Information piracy Answer: C AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 87) Information about one's identity and place of living is an example of ________.

A) behavioral data B) geographic data C) psychographic data D) demographic data E) attitudinal data Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 88) Which of the following statements is true about the companies operating in the online world and a customer's online privacy?

A) The vendor cannot track the web pages a customer looks at.

B) The vendor cannot track what products a customer examines in detail.

C) The vendor is not capable of knowing the method of payment a customer chooses to use.

D) The vendor is not required by law to respect a customer's privacy.

E) The vendor cannot know where a customer is having the product delivered.

Answer: D AACSB: Information technology; Ethical understanding and reasoning Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

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89) The ________ Act of 1986 made it much more difficult for anyone, including the government, to eavesdrop on phone conversations.

A) Electronic Communication Modernization B) Internet Privacy C) Sarbanes-Oxley D) Gramm-Leach-Bliley E) Electronic Communications Privacy Answer: E AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 90) WorldTravel (www.worldtravel.com) is a travel Web site that provides detailed information about the different places that tourists can visit across the globe. Additionally, it also helps visitors to book tickets and hotels in these destinations. Which of the following, if true, would most assure the customers of their online privacy?

A) When collecting personal information, WorldTravel explicitly states the purpose of the information and that it will not be used for anything else.

B) WorldTravel informs its members that it is following the best practices in the industry.

C) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected will be protected by a third party who specializes in this domain.

D) WorldTravel decides not to send any spam mails to any of its members.

E) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected is protected under the Electronic Communications Privacy Act. Answer: A AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Application 91) Which of the following steps should be taken by a person to ensure his or her privacy online?

A) Avoid Web sites that are monitored by independent organizations.

B) Visit Web sites anonymously.

C) Adjust his or her Web browser settings to save cookies.

D) Ensure he or she receives a confirmation e-mail whenever he or she buys products online.

E) Maintain only one e-mail account and use it when making online purchases.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

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92) Discuss Peter Drucker's predictions about knowledge workers and the knowledge society.

Answer: In 1959, Peter Drucker predicted the rise in the importance of information and of information technology (IT) and coined the term knowledge worker. Knowledge workers are professionals who are relatively well educated and who create, modify, and/or synthesize knowledge as a fundamental part of their jobs.

Drucker's predictions about knowledge workers were very accurate. As he predicted, they are generally paid better than their prior agricultural and industrial counterparts; they rely on and are empowered by formal education, yet they often also possess valuable real-world skills; they are continually learning how to do their jobs better; they have much better career opportunities and far more bargaining power than workers ever had before; they make up about a quarter of the workforce in the United States and in other developed nations; and their numbers are rising quickly.

Drucker also predicted that, with the growth in the number of knowledge workers and with their rise in importance and leadership, a knowledge society would emerge. He reasoned that, given the importance of education and learning to knowledge workers and the firms that need them, education would become the cornerstone of the knowledge society. Possessing knowledge, he argued, would be as important as possessing land, labor, or capital.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept

29

93) Discuss the five IT Megatrends that shape the Digital Future.

Answer: The five IT Megatrends that shape the Digital Future are: A) Mobile. One of the biggest trends we're seeing today is the move toward mobile devices. In most developed countries, most adults have a mobile phone, and typically, people have their mobile phones within their reach 24/7. Compare that with the access to your laptop or PC. In the developing world, mobile devices are frequently seen leapfrogging traditional PCs; owing to the lack of stable, reliable power or landline telephone infrastructure, mobile devices are often the primary means of accessing the Internet. For organizations, this increase in mobility has a wide range of implications, from increased collaboration to the ability to manage a business in real time–at any time, from anywhere–to changes in the way new (or existing) customers can be reached. Users are increasingly using mobile devices as part of their work-related activities using the "bring your own device" (BYOD) policy.

B) Social Media. A second megatrend is social media. The rise of social media is largely based on the network effect–referring to the notion that the value of a network (or tool or application based on a network) increases with the number of other users. In other words, if a network has few users, it has little or no value. You may be one of the more than 1.6 billion (and growing) Facebook users who share status updates or pictures with friends and family, or you may use apps such as Snapchat, Twitter, or WhatsApp to communicate with your friends. Today, the use of social media has gone way beyond friends and families. University professors use social networks to provide students with updates about course-related topics, and organizations use social media to encourage employee collaboration or to connect with their customers. In addition, companies can harness the power of the crowd by using social media to get people to participate in innovation and other activities.

C) The Internet of Things. A third megatrend is the Internet of Things (IoT)–a network of a broad range of physical objects that can automatically share data over the Internet. Such objects (or "things") can range from an automobile tire equipped with a pressure sensor to a smart meter enabling remote monitoring of energy consumption to a cow with an injectable ID chip. Already in 2008, more devices were connected to the Internet than there were people living on earth.

Fueled by advances in chips and wireless radios and decreasing costs of sensors (devices that can detect and respond to changes in the physical environment), in the not-too-distant future everything that can generate useful information will be equipped with sensors and wireless radios. In other words, anything that can generate data or uses data can be connected, accessed, or controlled via the Internet (sometimes referred to as "pervasive computing"). With the ability to connect "things" such as sensors, meters, signals, motors, actuators, or cameras, the potential for gathering useful data is almost limitless.

D) Cloud Computing. The fourth megatrend is cloud computing. Whereas traditionally each user would install a number of different applications for various tasks–from creating documents to listening to music–as well as store documents, pictures, and other data on his or her computer, web technologies enable using the Internet as the platform for applications and data. Now, much of the functionality previously offered by applications installed on each individual computer is offered by applications "in the cloud," accessed via a web browser. Increasingly, not only the applications, but also the data, reside in the cloud to be accessed at anytime from anywhere.

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E) Big Data. Together, these transformations of our social and work interactions enabled by 24/7 connectivity have given rise to a fifth trend, Big Data. Big Data are typically described as extremely large and complex datasets, which are characterized as being of high volume, variety, and velocity (i.e., the data are being collected and analyzed at ever-increasing rates). Following the old adage that information is power, organizations are continuously seeking to get the right information to make the best business decisions. Yet organizations are generating and collecting ever more data from internal and external sources. The rise of social media has further increased the amount of unstructured data available to organizations.

AACSB: Analytic skills Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future.

Classification: Concept 94) Define data—the most basic element of an information system. Give an example.

Answer: Unformatted data, or simply data, are raw symbols, such as words and numbers. Data have no meaning in and of itself, and are of little value until processed. For example, if a person was asked what 465889727 meant or stood for, he or she would be unable to say. However, if the same data was presented as 465-88-9727 and the person was told it was located in a certain database, in John Doe's record, in a field labeled "SSN," he or she might rightly surmise that the number was actually the Social Security number of someone named John Doe. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 95) Briefly describe transaction processing systems.

Answer: Transaction processing systems (TPS) are used by a broad range of organizations to not only more efficiently process customer transactions, but also generate a tremendous amount of data that can be used by the organization to learn about customers or ever-changing product trends. Your local grocery store uses a TPS at the checkout that scans bar codes on products; as this occurs, many stores will print discount coupons on the backs of receipts for products related to current purchases. Every hour, online retailer Amazon.com's Web site processes thousands of transactions from around the world. This massive amount of data is fed into large data warehouses and is then analyzed to provide purchase recommendations to future customers. In addition, TPS data are sorted and organized to support a broad range of managerial decision making using a variety of systems; the most common of these is generally referred to as a management information system. TPS data also provide input into a variety of information systems within organizations, including decision support systems, intelligent systems, data mining and visualization systems, knowledge management systems, social software, geographic information systems, and functional area information systems.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 31

96) Describe the technical, business, and systems competencies that IS personnel should possess.

Answer: The technical competency area includes knowledge and skills in hardware, software, networking, and security. In a sense, this is the "nuts and bolts" of information systems. This is not to say that the IS professional must be a high-level technical expert in these areas. On the contrary, the IS professional must know just enough about these areas to understand how they work and how they can and should be applied. Typically, the IS professional manages or directs those who have deeper, more detailed technical knowledge. The technical area of competency is the most difficult to maintain because of the rapid pace of technological innovation in the digital world.

The business competency area is one that sets the IS professional apart from others who have only technical knowledge and skills. It is absolutely vital for IS professionals to understand the technical areas and the nature of the business as well. IS professionals must also be able to understand and manage people and projects, not just the technology. These business skills propel IS professionals into project management and, ultimately, high-paying middle- and upper-level management positions.

Systems competency is another area that sets the IS professional apart from others with only technical knowledge and skills. Those who understand how to build and integrate systems and how to solve problems will ultimately manage large, complex systems projects as well as manage those in the firm who have only technical knowledge and skills.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components.

Classification: Concept 97) Discuss the guidelines given by the Computer Ethics Institute regarding ethical use of computers.

Answer: The guidelines prohibit the following: -Using a computer to harm others -Interfering with other people's computer work -Snooping in other people's files -Using a computer to steal -Using a computer to bear false witness -Copying or using proprietary software without paying for it -Using other people's computer resources without authorization or compensation -Appropriating other people's intellectual output In addition, the guidelines recommend the following: -Thinking about social consequences of programs you write and systems you design -Using a computer in ways that show consideration and respect for others AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

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98) Discuss the Electronic Communications Privacy Act and its implications for e-mail privacy.

Answer: In 1986, Congress passed the Electronic Communications Privacy Act (ECPA), which offered far stronger support for voice mail than it did for e-mail communications. This act made it much more difficult for anyone (including the government) to eavesdrop on phone conversations. E-mail privacy is, therefore, much harder to protect. In addition, no other laws at the federal or state levels protect e-mail privacy.

The ECPA and the court case judgments thus far on e-mail monitoring suggest that companies must be prudent and open about their monitoring of e-mail messages and Internet usage.

Companies should use good judgment in monitoring e-mail and should make public their policy about monitoring messages. One primary reason that employees perceive their e-mail to be private is the fact that they are never told otherwise. In addition, employees should use e-mail only as appropriate, based on their company's policy and their own ethical standards.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 99) With respect to online privacy, list the widely accepted fair information practice principles outlined by the U.S. Federal Trade Commission which must be followed by businesses operating online.

Answer: When surveyed about concerns related to Internet use, most consumers list issues of information privacy as a top concern. As a result, governments have pressured businesses to post their privacy policies on their Web sites. As outlined in the U.S. Federal Trade Commission "Fair Information Practice Principles" widely accepted fair information practices include: 1. Notice/Awareness – Providing information about what data are gathered, what the data are used for, who will have access to the data, whether provision of the data is required or voluntary, and how confidentiality will be ensured. Such information is typically contained in data privacy statements on a Web site.

2. Choice/Consent – Providing options about what will be done with the data (e.g., subscription to mailing lists after a purchase). Typically, consumers are given a choice to opt-in (i.e., signal agreement to the collection/further use of the data, e.g., by checking a box) or opt-out (i.e., signal that data cannot be collected/used in other ways).

3. Access/Participation – Providing customers with means to access data collected about them, check for accuracy, and request correction of inaccuracies.

4. Integrity/Security – Ensuring integrity of the data (e.g., by using only reputable sources of data), as well as implementing safeguards against unauthorized access, disclosure, or destruction of data.

5. Enforcement/Redress – Providing means to enforce these practices, and/or for customers to receive remedies, for example, through self-regulation or appropriate laws and regulations.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept

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100) What is the digital divide? Identify its challenges.

Answer: The gap between those individuals in our societies who are computer literate and have access to information resources like the Internet and those who do not is referred to as the digital divide. The digital divide is one of the major ethical challenges facing society today when you consider the strong linkage between computer literacy and a person's ability to compete in the information age.

The digital divide in America is rapidly shrinking, but there are still major challenges to overcome. In particular, people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages for Internet access and computer literacy. Outside the United States, the gap gets even wider and the obstacles get much more difficult to overcome, particularly in the developing countries where infrastructure and financial resources are lacking.

For example, most developing countries are lacking modern informational resources such as affordable Internet access or efficient electronic payment methods like credit cards.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 101) Discuss a few steps taken to maintain one's privacy when shopping online.

Answer: To make sure one's online shopping experience is a good one, a customer can take a few additional steps to maintain their privacy: 1. Choose Web Sites That Are Monitored by Independent Organizations – Several independent organizations monitor the privacy and business practices of Web sites (e.g., www.truste.com).

2. Avoid Having "Cookies" Left on the Machine – Many commercial Web sites leave cookies on the user's machine so that the owner of the site can monitor where the user goes and what he does on the site. To enhance one's privacy, a user should carefully manage his browser's cookie settings or get special "cookie management" software.

3. Visit Sites Anonymously – There are ways to visit Web sites anonymously. Using services provided by companies such as Anonymizer (www.anonymizer.com), one has a high degree of privacy from marketers, identity thieves, or even coworkers when surfing the Web. 4. Use Caution When Requesting Confirmation E-Mail – When one buys products online, many companies will send them a confirming e-mail message to let them know that the order was received correctly. A good strategy is to have a separate e-mail account, such as one that is available for viewing via a Web browser that one uses when making online purchases.

5. Beware What You Post or Say Online – As an old adage goes, "the Internet never forgets"; anything from status updates to Twitter messages to blog posts can be stored forever, and most information remains somewhere on the Web, even after the original page has long been taken down. It is safe to say that probably almost everybody engages in some regrettable activities at some point in time. Yet, having such activities appear on the Web can be devastating for one's career.

AACSB: Information technology Difficulty: Moderate Learning Objective: 1.5: Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property.

Classification: Concept 34

Information Systems Today, 9e (Valacich) Chapter 2 Gaining Competitive Advantage Through Information Systems 1) Someone with an automating perspective thinks of technology as a way to help complete a task.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 2) Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 3) At the executive level, information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 4) Tactical-level decision making is more structured and routine than operational-level decision making.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 5) Managerial-level decision making is referred to as semistructured decision making.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 1

6) Executive-level decisions are referred to as unstructured decisions.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 7) With respect to the organizational decision making levels, top-level managers typically focus on problems within a specific business function, such as marketing or finance.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 8) For unstructured organizational decisions, few, or no procedures to follow for a given situation can be specified in advance.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 9) Most organizations have three general decision-making levels: operational, managerial, and executive.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 10) Operational, managerial, and executive decision-making levels are all supported by a single type of information system.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

2

11) In an organizational setup, a functional area represents a discrete area of an organization that focuses on a specific set of activities.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 12) Organizational learning is the ability of an organization to use past behavior and information to improve its business processes.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 13) Organizational strategy is a firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 14) In an organization, managers use value chain analysis to identify opportunities where information systems can be used to develop a competitive advantage.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 15) The set of activities that add value throughout the organization is known as the value chain within an organization.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

3

16) The use of information systems has become one of the primary ways that organizations improve their value chains.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 17) Choosing and implementing an emerging information system is not sufficient to gain or sustain competitive advantage.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 18) Functional area information systems are designed to support decision making.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 19) Choosing and implementing new or innovative information systems is sufficient to gain or sustain competitive advantage.

Answer: FALSE AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 20) To achieve superior returns, a company needs to position itself within the geographic area it operates in to be able to counter the effects of the five forces and gain a competitive advantage.

Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

4

21) Managers look at information systems as a asset to be nurtured and invested in.

Answer: TRUE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 22) A business model reflects what a company does.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 23) Key employees is a component of a Business Model.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 24) Many business models functioned like pipes, where products were pulled by customers.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept 25) A sharing economy is sometimes referred to as a collaborative economy.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept

5

26) Sir John Maddox, a physicist, was quoted in Scientific American in 1999 saying, "The most important discoveries of the next 50 years are likely to be ones of which we cannot now even conceive."

Answer: TRUE AACSB: Analytic skills Difficulty: Difficult Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 27) Innovation is key for organizations to gain or sustain a competitive advantage through cost or differentiation.

Answer: TRUE AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 28) According to the text most innovations are enabled by or would not even be possible without, a business model.

Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 29) One of the ten types of innovation is customer engagement.

Answer: TRUE AACSB: Concept Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 30) Organizations increasingly realize that potential for innovation often exists inside of their own boundaries and look for employee creativity.

Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept

6

31) At the ________ level of a firm, the routine, day-to-day business processes and interactions with customers occur.

A) strategic B) tactical C) operational D) managerial E) executive Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 32) Why are information systems typically used at the operational level?

A) to create a risk information sheet B) to define all project tasks C) to identify all business activities D) to create use cases E) to increase efficiency Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 33) Which of the following actions is a part of operational planning?

A) making day-to-day decisions that are highly structured and recurring B) effectively utilizing and deploying organizational resources to achieve strategic objectives C) focusing on long-term strategic questions facing the organization D) dealing with complex problems with broad and long-term ramifications for the organization E) focusing on balancing performance across the organization Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

7

34) ________ are a set of activities an organization performs in order to reach their business goals.

A) Business processes B) Business standards C) Business technocracies D) Business data flow models E) Business cases Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 35) With respect to decision making in organizations, ________ decisions are those in which the procedures to follow for a given situation can be specified in advance.

A) comparative B) structured C) unscrupulous D) asymmetrical E) disfigured Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 36) A(an) ________ level manager would be a manufacturing floor manager.

A) operational B) tactical C) strategic D) managerial E) executive Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Application

8

37) With respect to organizational decision-making levels, ________ decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention.

A) asymmetrical B) semistructured C) unstructured D) comparative E) structured Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 38) ________ refers to anything that occurs as part of a daily business of which a record must be kept.

A) Transaction B) Investment C) Capital asset D) Value chain analysis E) Use case Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 39) At the ________ level of an organization, functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization.

A) managerial B) executive C) strategic D) superficial E) illusive Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

9

40) The executive level of an organization is also known as the ________ level.

A) managerial B) tactical C) operational D) strategic E) illusory Answer: D AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 41) ________ decision making in an organization is referred to as semistructured decision making because solutions and problems are not clear-cut and often require judgment and expertise.

A) Illusive-level B) Operational-level C) Managerial-level D) Executive-level E) Strategic-level Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 42) The managerial level of an organization is also known as the ________ level.

A) functional B) tactical C) executive D) operational E) strategic Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

10

43) Identify the focus of managers at the tactical level of an organization.

A) deploying organizational resources to achieve the strategic objectives of the organization B) managing routine, day-to-day business processes and interactions with customers C) designing long-term strategic questions facing the organization D) solving complex problems with broad and long-term ramifications for the organization E) maintaining the efficiency of business processes within the organization Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 44) Jane Estroisch works as a manager in a multidomestic firm. She focuses on the long-term questions facing the organization such as which countries to compete in and what organizational policies to follow. Jane is in the ________ level of the organization.

A) operational B) tactical C) executive D) functional E) managerial Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Application 45) Managers in the ________ level of an organization are referred to as "executives."

A) operational B) tactical C) functional D) strategic E) managerial Answer: D AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

11

46) ________ decisions deal with complex problems with broad and long-term ramifications for an organization.

A) Executive-level B) Functional-level C) Tactical-level D) Operational-level E) Managerial-level Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 47) With respect to organizational decision-making levels, for ________ decisions, some procedures to follow for a given situation can be specified in advance, but not to the extent where a specific recommendation can be made.

A) unstructured B) planned C) semistructured D) asymmetrical E) structured Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 48) At the ________ level of an organization, managers focus on long-term strategic questions facing the organization, such as which products to produce, which countries to compete in, and what organizational strategy to follow.

A) managerial B) tactical C) operational D) executive E) illusory Answer: D AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

12

49) Managers at the ________ level include the president and chief executive officer, vice presidents, and possibly the board of directors.

A) functional B) executive C) tactical D) operational E) illusive Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 50) ________ decisions are referred to as unstructured decisions because the problems are relatively complex and non-routine.

A) Managerial-level B) Tactical-level C) Executive-level D) Operational-level E) Illusive-level Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 51) To assist ________ decision making, information systems are used to obtain aggregate summaries of trends and projections of the future.

A) managerial-level B) functional-level C) tactical-level D) operational-level E) executive-level Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

13

52) At the ________ level of an organization, information systems provide key performance indicators (KPIs) that are focused on balancing performance across the organization.

A) illusive B) operational C) tactical D) managerial E) executive Answer: E AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 53) Information systems at the ________ level of an organization often help in automating repetitive activities.

A) tactical B) strategic C) managerial D) operational E) executive Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 54) Which of the following actions would an organization take if it decides to pursue a best-cost provider strategy?

A) offering the best prices in its industry on its goods and/or services B) attempting to gain monopoly in the market by means of an unhealthy competition C) offering products or services of reasonably good quality at competitive prices D) providing high quality products at low prices in specific markets E) offering low quality products at low prices with high quality after-sales services Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

14

55) Which of the following is an example of a best-cost provider strategy?

A) Different car manufacturers compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.

B) Aerodoungle's Eridla brand is considered a luxury car. Some of Eridla's models like the ES model, however, are in the midrange of prices for cars.

C) Global furniture retailer Rusicwood provides customers with affordable solutions for better living by offering home furnishings that combine good design, function, and quality with low prices.

D) Wild Hog builds motorcycles that target only the high end of the heavyweight market—the high—end premium cruiser market-with names such as Wolf, Mastiff, and Bulldog.

E) Streetsuit's everyday low prices (EDLP) strategy hinges upon its ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

Answer: C AACSB: Analytical thinking Difficulty: Difficult Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Application 56) Walmart pursues a ________ strategy by which it offers the best prices in its industry on its goods and/or services.

A) best-cost provider B) decreased market share C) low-cost leadership D) broad differentiation E) focused differentiation Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 57) Which of the following is an implication for firms that have a threat of new entrants into their market?

A) increased cost B) reduced quality C) increased demand for services D) increased price E) decreased market share Answer: E AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 15

58) For a firm, reduced prices, need for increased quality, and demand for more services would result due to ________.

A) threat of substitute products from other industries B) customers' bargaining power C) high threat of new entrants into the market D) traditional rivals within the industry E) increase in suppliers' bargaining power Answer: B AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 59) ________ is the process of analyzing an organization's activities to determine where value is added to products and/or services and what costs are incurred for doing so.

A) Value networking B) Value chain analysis C) Value migration D) Value shop E) Value grid trial Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 60) The extent to which goals are accomplished faster, at lower cost, or with relatively little time and effort is called ________.

A) goal setting B) efficiency C) effectiveness D) accomplishment E) effort Answer: B AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

16

61) The extent to which tasks are accomplished well is called ________.

A) goal setting B) efficiency C) effectiveness D) accomplishment E) effort Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 62) A metric deemed most critical to accessing progress toward a certain goal is referred to as a(an) ________.

A) critical factor B) critical performance indicator C) critical performance initiative D) key performance indicator E) performance metric Answer: D AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 63) Personnel forecasting is a functional area information system contained within the ________ department of an organization.

A) Accounting B) Financial C) Marketing D) Human Resources E) Operations Answer: D AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

17

64) With respect to the components of a business model, ________ is the utility that the product/service must offer to customers.

A) cost structure B) value grid C) value migration D) value proposition E) revenue stream Answer: D AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 65) Inventory management is an application that is part of the ________ functional area.

A) Accounting B) Financial C) Marketing D) Human Resources E) Operations Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 66) When senior managers at the executive level of the organization conduct ________, they form a vision of where the organization needs to head.

A) executive planning B) strategic planning C) organizational planning D) resource planning E) operational planning Answer: B AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept

18

67) The term given to a company that is first to enter a market thus creating a competitive advantage is ________.

A) competitive mover B) strategic mover C) executive mover D) first-mover advantage E) first-mover competitor Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 68) Which of the following is NOT one of Porter's five primary forces?

A) the bargaining power of customers or the rivalry of sellers in the industry B) the threat of new entrants or the bargaining power of customers C) the threat of new entrants in an industry or the rivalry of sellers in the industry D) the potential of substitute products or the bargaining power of customers E) the threat of new entrants or the threat of substitute products Answer: A AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Application 69) If the ABC company is losing customers on a regular basis, the force that would explain this is most likely to be ________.

A) the bargaining power of customers or the rivalry of sellers in the industry B) the threat of new entrants or the bargaining power of customers C) the threat of new entrants in an industry or the rivalry of sellers in the industry D) the potential of substitute products or the bargaining power of customers E) the threat of new entrants or the threat of substitute products Answer: B AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Application

19

70) ________ reflect(s) the organization's specific assets that are utilized to achieve cost or product differentiation from its competitors.

A) Products B) Goodwill C) Technology D) Resources E) People Answer: D AACSB: Analytic skills Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 71) Value creation occurs when an organization can ________.

A) sell more products at the same price over a given period B) create new products in an industry C) provide products at a lower cost or with superior benefits to the customer D) increase its customer base over time E) increase capacity in production at the same per unit cost Answer: C AACSB: Analytic skills Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 72) What a company does, how a company uniquely does it, how a company gets paid for doing it, and what costs are involved are all part of an organization's ________.

A) business model B) competitive model C) revenue model D) strategic model E) value model Answer: A AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept

20

73) Which of the following is NOT a typical revenue model in the digital world?

A) Affiliate marketing B) Subscriptions C) Channel marketing D) Licensing E) Freemium Answer: C AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept 74) The Game, Inc. company is offering a new game that can expand exponentially to new users.

The company is offering the very basic game for free allowing the user to upgrade to several levels of a paid subscription model. Choose the selection below that best exemplifies this revenue model.

A) Affiliate marketing B) Freemium C) Channel marketing D) Licensing E) Subscriptions Answer: B AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Application 75) What example of a platform-based business model would Airbnb and Uber represent?

A) Service B) Subscriptions C) Communications D) Collaboration E) Products Answer: A AACSB: Analytic skills Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept

21

76) A ________ is defined as an economic system in which assets or services are shared between private individuals, either free or for a fee.

A) services economy B) communication economy C) flexible economy D) sharing economy E) social economy Answer: D AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept 77) According to basic economics within a competitive marketplace, the price of a product is set by its ________.

A) opportunity cost B) sunk cost C) marginal cost D) transaction cost E) fixed cost Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept 78) Which of the following defines marginal cost?

A) It is the cost of an alternative that must be forgone in order to pursue a certain action.

B) It is the cost of producing an additional unit of output.

C) It is the cost that is independent of the level of goods or services produced by the business.

D) It is the cost that has already been incurred and cannot be recovered.

E) It is the cost incurred in making an economic exchange.

Answer: B AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept

22

79) Which of the following actions of a firm suggests that it uses the freemium approach for applying freeconomics?

A) It provides free services to customers and gets paid for it by third parties.

B) It reduces the sale price of one item in order to sell something else of value.

C) It distributes products to customers without an appreciable cost to anyone.

D) It offers basic services for free, but charges a premium for special features.

E) It allows people to participate and collaborate to create something of value.

Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Concept 80) Iver Audio is an all-in-one music management tool that was first marketed in 1999. Most users can use the Basic version that is free, but a $19.99 upgrade provides extra features such as supertagging, faster ripping and burning. Which of the following explains this approach for applying freeconomics?

A) labor exchange approach B) freemium approach C) zero marginal cost approach D) cross subsidies approach E) gift economy approach Answer: B AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world.

Classification: Application 81) ________ use(s) information systems to enhance a person's perception of reality by providing relevant information about the user's surroundings with the use of special glasses or other devices.

A) 3-D glasses B) Teleport C) Virtual reality D) HoloLens E) Augmented reality Answer: E AACSB: Analytic skills Difficulty: Difficult Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept

23

82) Which type of innovation is best described as using innovative ways to connect offerings with customers?

A) Process innovation B) Channel innovation C) Service innovation D) Brand innovation E) Structure innovation Answer: B AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 83) Which type of innovation is best described as using the company's talent and assets in innovative ways?

A) Process innovation B) Channel innovation C) Service innovation D) Brand innovation E) Structure innovation Answer: E AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 84) Which type of innovation is best described as supporting and enhancing the value of an offering?

A) Process innovation B) Channel innovation C) Service innovation D) Brand innovation E) Structure innovation Answer: C AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept

24

85) The emergence of a highly successfully business that is technology based with potential for growth and scalability is often referred to as a(an) ________.

A) new age company B) innovative company C) startup D) kickstarter E) novel Answer: C AACSB: Analytic skills Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 86) ________ is the securing of business financing from individuals in the marketplace.

A) Capitalizing B) eLoans C) Internet funding D) Crowdfunding E) Self sourcing Answer: D AACSB: Analytic skills Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 87) According to ________, the number of transistors that could be squeezed onto a silicon chip would double every 18 months.

A) Metcalfe's law B) Megan's law C) Murphy's law D) Moore's law E) Ashby's law Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept

25

88) In the context of organizational requirements for innovation, to deploy innovative information systems well, people in the organization must be willing to do whatever they can to bypass and eliminate internal bureaucracy, set aside political squabbles, and pull together for the common good. These requirements can be categorized as ________ requirements.

A) process B) customer C) resource D) quality E) risk tolerance Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 89) Organizations deploying innovative information systems must have the human capital necessary to deploy the new systems. These requirements can be categorized as ________ requirements.

A) resource B) process C) risk tolerance D) customer E) quality Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 90) ________ are new technologies, products, or services that eventually surpass the existing dominant technology or product in a market.

A) Constructive innovations B) Adaptive innovations C) Disruptive innovations D) Facultative innovations E) Extensive innovations Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept

26

91) When workers are not employed by the company, but are only hired for short-term , temporary jobs it is called ________.

A) seasonal work B) a gig economy C) part-time work D) contract work E) weak economy Answer: B AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 92) Discuss the difference between being effective and being efficient.

Answer: The extent to which something is accomplished faster, at lower cost, or with relatively little time and effort is being efficient. The extent to which something is accomplished well is being effective.

AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Concept 93) Describe the differences between operational-level decision making and tactical-level decision making by managers in organizations.

Answer: At the operational level of a firm, the routine, day-to-day business processes and interactions with customers occur. Operational planning typically has a time frame of a few hours or days, and the managers at the operational level, such as foremen or supervisors, make day-to-day decisions that are highly structured and recurring.

At the managerial level (or tactical level) of the organization, functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization. Managers at this level, referred to as midlevel managers, focus on effectively utilizing and deploying organizational resources to achieve the strategic objectives of the organization. Managerial-level decision making is not nearly as structured or routine as operational-level decision making. Managerial-level decision making is referred to as semistructured decision making because solutions and problems are not clear-cut and often require judgment and expertise.

AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Synthesis

27

94) Explain the differences between tactical-level decision making and executive-level decision making by managers in organizations.

Answer: At the managerial level (or tactical level) of the organization, functional managers focus on monitoring and controlling operational-level activities and providing information to higher levels of the organization. Managers at this level, referred to as midlevel managers, focus on effectively utilizing and deploying organizational resources to achieve the strategic objectives of the organization. Managerial-level decision making is not nearly as structured or routine as operational-level decision making. Managerial-level decision making is referred to as semistructured decision making because solutions and problems are not clear-cut and often require judgment and expertise.

At the executive level (or strategic level) of the organization, managers focus on long-term strategic questions facing the organization, such as which products to produce, which countries to compete in, and what organizational strategy to follow. Executive-level decisions deal with complex problems with broad and long-term ramifications for the organization.

AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Synthesis 95) Explain how information systems implemented in the operational level are different from those implemented at the strategic level.

Answer: Information systems at the operational level are designed to automate repetitive activities, such as sales transaction processing, and to improve the efficiency of business processes at the customer interface.

Information systems at the strategic level are used to obtain aggregate summaries of trends and projections of the future. At the executive level, information systems provide KPIs that are focused on balancing performance across the organization.

AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Synthesis

28

96) List Porter's primary competitive forces that analyze the competition within an industry.

Answer: Porter's primary competitive forces that analyze the competition within an industry include: 1. the rivalry among competing sellers in an industry.

2. the threat of potential new entrants into an industry.

3. the bargaining power that customers have within an industry.

4. the bargaining power that suppliers have within an industry.

5. the potential for substitute products from other industries.

AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Synthesis 97) Discuss the different functional information systems including some of the applications of each.

Answer: 1) Accounting & Finance: These are systems used for managing, controlling, and auditing the financial resources of the organization. Sample applications include: accounts payable, expense accounts, cash management, and payroll processing.

2) Human Resources: These are systems used for managing, controlling, and auditing the human resources of the organization. Sample applications include: recruiting and hiring, education and training, benefits management, employee termination, and workforce planning.

3) Marketing: These are systems used for managing new product development, distribution, pricing, promotional effectiveness, and sales forecasting of the products and services offered by the organization. Same applications include market research and analysis, new product development, promotion and advertising, pricing and sales analysis, and product location analysis.

4) Operations: These are systems used for managing, controlling, and auditing the production and operations resources of the organization. Sample applications include inventory management, cost and quality tracking, materials and resource planning, job costing, and resource utilization.

AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage.

Classification: Synthesis 98) Risk tolerance for people within the organization should be low for the deployment of innovative information systems.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Concept 29

99) List and discuss six types of innovation.

Answer: The table below shows 10 types of innovation.

Table 2.8 Ten Types of Innovation Innovation

Description

Examples Dropbox using a freemium approach; Microsoft offering Finding novel ways of Office 365 on a subscription Profit model generating revenues from basis, GE selling "thrust as a innovation offerings service" GlaxoSmithKline or Marriott using open innovation for new product or service ideas; Netflix running contests for improving movie recommendation Harnessing the capabilities algorithm; luxury hotels Network innovation and strengths of others partnering with fashion designers Southwest Airlines focusing on one aircraft type; Google allowing employees to use 20 Using the company's talent percent of their time for their Structure innovations and assets in innovative ways own projects Toyota pioneering lean Changing primary processes production; Zara moving fashion used to produce product or from initial design to stores in 3 Process innovations service weeks Dyson's Airblade hand dryers; Creating novel products or Corning's "unbreakable" Gorilla Product performance improving existing products Glass; Coke's customizable Coke innovations through differentiation bottles Microsoft bundling individual office programs into Office suite; Apple offering developer tools and app store to enable developers to create novel apps; Product system Creating bundles of Marriott letting users test drive innovations complementary offerings GoPro HERO action cams Zappo's WOW philosophy of delivering excellent customer service; Men's Warehouse Supporting and enhancing offering its customers to Service innovations value of offering purchase free lifetime pressing Niketown offering immersive Using innovative ways to experiences; Nespresso connect offerings with partnering with hotels and Channel innovations customers airlines 30

Brand innovations Customer engagement innovations

Virgin family of brands; German Positioning the brand in discount grocer Aldi's Trader innovative ways Joe's markets Swarm encouraging users to frequently "check in" to places; Developing meaningful Apple tying customers to its connections with customers ecosystem

Source: Based on Ten Types of Innovation: The Discipline of Building Breakthroughs by Larry Keeley, Helen Walters, Ryan Pikkel, Brian Quinn, published by John Wiley & Sons, 2013.

AACSB: Analytic skills Difficulty: Difficult Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Synthesis 100) Explain the organizational requirements for innovation.

Answer: There are three types of organizational requirements for innovation: 1. Process requirements–To deploy innovative information systems well, people in the organization must be willing to do whatever they can to bypass and eliminate internal bureaucracy, set aside political squabbles, and pull together for the common good.

2. Resource requirements–Organizations deploying innovative information systems must also have the human capital necessary to deploy the new systems. The organization must have enough employees available with the proper systems knowledge, skills, time, and other resources to deploy these systems. Alternatively, the organization must have resources and able systems partners available to outsource the development of such systems if necessary.

3. Risk tolerance requirements–The last characteristic of an organization ready for the deployment of innovative information systems is that its members must have the appropriate tolerance for risk and uncertainty as well as the willingness to deploy and use new systems that may not be as proven and pervasive as more traditional technologies. If people within the organization desire low risk in their use of information systems, then gambling on cutting-edge systems will probably not be desirable or tolerable for them.

AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Synthesis

31

101) Define disruptive innovation and how it leads to the innovator's dilemma.

Answer: Disruptive innovations are new technologies, products, or services that eventually surpass the existing dominant technology or product in a market. Within every market, there are customers who have relatively high, moderate, or low performance requirements from the existing product offerings. Over time, as disruptive innovations and incremental improvements are introduced into an industry, the capabilities of the products in all segments (i.e., low to high performance) improve; as product capabilities improve at the high-performance end of the market, the number of potential customers for these products gets relatively smaller. At the same time, as the low-end products also improve, they are increasingly able to capture more and more of the mainstream marketplace.

These developments caused by disruptive innovations, typically ignored by established market leaders, lead to loss of their market dominance and hence lead to market failure. This is known by the term innovator's dilemma.

AACSB: Information technology Difficulty: Difficult Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage.

Classification: Synthesis

32

Information Systems Today, 9e (Valacich) Chapter 3 Managing the Information Systems Infrastructure and Services 1) Information systems infrastructure consists of hardware, system software, storage, networking, and data centers.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.1: Describe how changes in businesses' competitive landscape influence changing IS infrastructure needs.

Classification: Concept 2) Application software helps to automate business processes, and it enables processes that would otherwise not even be possible.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.1: Describe how changes in businesses' competitive landscape influence changing IS infrastructure needs.

Classification: Concept 3) The application software used for various business processes can directly interact with the various types of computer hardware.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.1: Describe how changes in businesses' competitive landscape influence changing IS infrastructure needs.

Classification: Concept 4) An organization's IS infrastructure has a broad and flexible set of capabilities that can be utilized in a variety of ways.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 3.1: Describe how changes in businesses' competitive landscape influence changing IS infrastructure needs.

Classification: Concept

1

5) Workstations are optimized for access by many concurrent users and therefore have more advanced microprocessors, more memory, a larger cache, and more disk storage than single-user computers.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 6) Transmission media refers to the physical pathway used to carry network information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 7) The easiest way to understand computer networking is through the human communication model.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 8) The fundamental information units of computers are called relays.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 9) The name "Internet" is derived from the concept of wireless networking.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

2

10) The format of an IP address is a 32-bit numeric address written as four numbers separated by periods.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 11) With respect to the domain name, the suffix ".com" is reserved for network organizations.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 12) Bar Codes are much more robust than Radio Frequency ID (RFID) because they can be hand scanned quickly.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 13) Networking hardware and software facilitate the interconnection of different computers, enabling collaboration within organizations, across organizations, and literally around the world.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 14) A supercomputer is primarily used as the main, central computing system for major corporations.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

3

15) Using a utility computing model, cloud computing helps to transform IT infrastructure costs from a capital expenditure to an operational expenditure.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 16) A public cloud is internal to an organization and can help the organization to balance demand and supply of computing resources within the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 17) The applications under the software as a service model are typically the toughest to deploy.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 18) In the platform as a service (PaaS) model, the customer uses only applications provided via a cloud infrastructure.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 19) Measured service is typically used in a utility computing model.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

4

20) VoIP is an acronym that stands for Voice over Infrastructure Procedures Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 21) Web protocols are used to enable applications to communicate with each other, which is the basis for APIs. Answer: TRUE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 22) Which of the following tasks is performed by application software?

A) printing documents B) writing a business letter C) presenting information via a monitor D) updating the system clock E) saving data to a disk Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 3.1: Describe how changes in businesses' competitive landscape influence changing IS infrastructure needs.

Classification: Concept 23) A fundamental component of the IS infrastructure is the ________, that is, the computers that run the applications and databases necessary for processing transactions or analyzing business data.

A) protocol B) archival storage C) hardware D) system software E) data center Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

5

24) With respect to the five general classes of computers, ________ are typically used for mission critical applications, such as transaction processing.

A) workstations B) supercomputers C) servers D) mainframes E) personal computers Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 25) Which of the following is a difference between a server and a workstation?

A) A workstation has fast network connectivity when compared to a server.

B) A workstation is used primarily as the main, central computing system for major corporations.

C) A workstation has high reliability when compared to a server.

D) A workstation has more memory and more disk storage when compared to a server.

E) A workstation is typically used by one user at a time.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Synthesis 26) With respect to the general classes of computers, a ________ is the most expensive and most powerful kind of computer, which is used primarily to assist in solving massive scientific problems.

A) supercomputer B) workstation C) mainframe computer D) server E) personal computer Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

6

27) With respect to the general classes of computers, a ________ is very large and is used primarily as the main, central computing system for major corporations.

A) personal computer B) supercomputer C) server D) mainframe computer E) workstation Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 28) With respect to the general classes of computers, a ________ is any computer on a network that makes access to files, printing, communications, and other services available to users of the network.

A) workstation B) server C) personal computer D) supercomputer E) mainframe Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 29) Which of the following statements is true about servers?

A) They are used to provide services to users within large organizations or to Web users.

B) They are primarily used as the main, central computing system for major corporations.

C) They are used primarily to assist in solving massive scientific problems.

D) They are optimized for visualization and rendering of three-dimensional models.

E) They are used for personal computing and small business computing.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

7

30) Which of the following general classes of computers designed for medical, engineering, or animation and graphics design uses is optimized for visualization and rendering of threedimensional models, and typically have fast processors, large memory, and advanced video cards?

A) mainframes B) supercomputers C) workstations D) servers E) personal computers Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 31) With respect to the general classes of computers, a ________ is used for small business computing.

A) workstation B) personal computer C) mainframe computer D) server E) supercomputer Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 32) With respect to the five general classes of computers, a ________ is typically used for scientific research.

A) mainframe computer B) workstation C) supercomputer D) microcomputer E) server Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

8

33) The most prominent type of system software, the ________, coordinates the interaction between hardware components, peripherals, application software, and users.

A) random-access memory B) operating system C) read-only memory D) base station E) point to point protocol Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 34) Which of the following is an example of an operating system?

A) Safari B) Microsoft Office C) Mozilla Firefox D) Ubuntu Linux E) Microsoft Surface Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 35) ________ software is the collection of programs that control the basic operations of computer hardware.

A) Application B) Transitory C) System D) Open source E) Peripheral Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

9

36) The operating system of a computer is an example of ________ software.

A) system B) open source C) transitory D) peripheral E) application Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 37) Operating systems are often written in ________, a very low-level computer programming language that allows the computer to operate quickly and efficiently.

A) structured query language B) hypertext markup language C) assembly language D) extensible markup language E) practical extraction and report language Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 38) Which of the following statements is true of an intranet?

A) It secures proprietary information stored within the corporate local area network.

B) It is easily accessible to the public.

C) It can be used to access advertorial information.

D) It can be used by anyone with an Internet connection.

E) It cannot be accessed by using virtual private networks.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

10

39) Governmental regulations such as the ________ Act mandate archiving business documents and relevant internal communication, including e-mail and instant messages.

A) Glass-Steagall B) Sarbanes-Oxley C) Robinson-Patman D) Celler-Kefauver E) Taft-Hartley Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 40) With respect to computer networking, ________ refers to the physical pathway (cable(s) and wireless) used to carry network information.

A) multiplatform B) transmission control protocol C) random-access memory D) traceroute E) transmission media Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 41) ________ define the procedures that different computers follow when they transmit and receive data.

A) Consoles B) Keyloggers C) Protocols D) Hosts E) Hypertexts Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

11

42) With respect to computer networks, a typical ________ network has a bandwidth of 10 Mbps to 1 Gbps.

A) personal area B) metropolitan area C) wide area D) campus area E) local area Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 43) ________ is the transmission capacity of a computer or communications channel, which represents how much binary data can be reliably transmitted over the medium in one second.

A) Latency B) Data buffer C) Bandwidth D) Jitter E) Codec Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 44) Bandwidth is measured in ________.

A) moles per second B) joules per second C) parts per million D) bits per second E) relays per second Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

12

45) A ________ is any computer on the network, or any software application, that uses only the services provided by the server.

A) peer B) client C) host D) console E) port Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 46) A ________ is any computer that may both request and provide services.

A) console B) client C) peer D) host E) port Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 47) Which of the following computer networks is used for providing wireless communication between devices, using technologies such as Bluetooth?

A) personal area network B) storage area network C) campus area network D) metropolitan area network E) body sensor network Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

13

48) ________ networks enable any computer or device on the network to provide and request services. All members of the network have equivalent capabilities and responsibilities.

A) Server-centric B) Server-to-peer C) Client-to-peer D) Peer-to-peer E) Client-centric Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 49) With respect to computer networks, ________ are also referred to as Wi-Fi networks.

A) storage area networks B) wireless body sensor networks C) wireless local area networks D) campus area networks E) personal area networks Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 50) Which of the following storage methods is used for storing long-term copies of organizational data?

A) archival B) backup C) operational D) translational E) protocol Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

14

51) The ________ is a system of interlinked documents on the Internet, or a graphical user interface to the Internet that provides users with a simple, consistent interface to access a wide variety of information.

A) private branch exchange B) World Wide Web C) point to point protocol D) Media Access Control Address E) parameter random access memory Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 52) A ________ is a software application that can be used to locate and display Web pages including text, graphics, and multimedia content.

A) Webcam B) keylogger C) proxy server D) Web browser E) Webmaster Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 53) A hypertext document is otherwise known as a ________.

A) Web page B) Web host C) Web ring D) Webmaster E) Web consortium Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

15

54) Which of the following features of the Web contains not only information, but also references or links to other documents?

A) proxy server B) Web ring C) hypertext D) codec E) domain name Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 55) The standard method of specifying the format of Web pages is called ________.

A) Structured Query Language (SQL) B) Practical Extraction and Report Language (PERL) C) Extensible Markup Language (XML) D) Assembly Language (AL) E) Hypertext Markup Language (HTML) Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 56) With regards to the World Wide Web, Web pages are stored on ________.

A) Web consoles B) Web rings C) Web consortiums D) Web servers E) Web hosts Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

16

57) The ".com" suffix in a Uniform Resource Locator is reserved for ________.

A) non-profit organizations B) commercial organizations C) network organizations D) government entities E) educational organizations Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 58) Web servers process user requests for pages using the ________.

A) Hypertext Transfer Protocol B) TOC Protocol C) Address Resolution Protocol D) Dynamic Host Configuration Protocol E) Trivial File Transfer Protocol Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 59) Which of the following statements is true about a Uniform Resource Locator?

A) It is used to locate specific information in a Web page.

B) It is used to identify and locate a particular Web page.

C) It is a protocol that helps Web servers store Web pages.

D) It is a standard method for specifying the format of Web pages.

E) It is a software application used to display the features of a Web page.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

17

60) The suffix ".org" is reserved for ________.

A) governmental entities B) commercial organizations C) network organizations D) educational institutions E) non-profit organizations Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 61) Which of the following is likely to have the suffix ".com" after the domain name in its URL? A) UNICEF B) The Federal Reserve C) Microsoft D) The World Wide Fund for Nature E) Massachusetts Institute of Technology Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Application 62) Which of the following is likely to have the suffix ".org" after the domain name in its URL? A) The Red Cross Society B) Starbucks C) The Federal Bureau of Investigation D) McDonalds E) Harvard Business School Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Application

18

63) Which of the following is likely to have the suffix ".edu" after the domain name in its URL? A) Yahoo!

B) UNICEF C) The Federal Reserve D) Harvard Business School E) America Online Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Application 64) The ________ is the particular web server that will respond to the Web request.

A) domain name B) host name C) client name D) top-level domain name E) port name Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 65) Which of the following is the host name in the URL "labs.google.co.in/jack carver"?

A) labs B) google C) co D) in E) jack carver Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Application

19

66) Which of the following statements is true about an IP address?

A) The format of an IP address is a 64-bit numeric address.

B) It is written as eight numbers separated by periods.

C) Each number separated by periods can have any number between 0 and 999.

D) It can be used to navigate to particular Web addresses.

E) It is written as a number with a period at the end.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 67) The protocol used by the Internet is called the ________.

A) Transmission Control Protocol (TCP) B) Dynamic Host Configuration Protocol (DHCP) C) Address Resolution Protocol (ARP) D) Trivial File Transfer Protocol (TFTP) E) TOC protocol Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 68) A company's ________ secures proprietary information stored within the corporate local area network and/or wide area network so that the information can be viewed only by authorized users.

A) Web ring B) static Web site C) firewall D) proxy server E) Web page Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

20

69) Most companies allow their employees to use ________ networks to connect to the company's intranet while on the road or working from home.

A) near-me area B) metropolitan area C) virtual private D) body sensor E) storage area Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 70) Data centers managed by a third party that rents out space to multiple organizational customers are known as ________.

A) collocation facilities B) multi-bay stations C) serial port facilities D) data ease facilities E) datahub stations Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 71) Which of the following occurred in the 1946-1958 generation of computing?

A) The interpersonal computing era ended, and the internetworking era began.

B) The internetworking era ended.

C) The mainframe era began.

D) The mainframe era ended, and the personal computer era began.

E) The personal computer era ended, and the interpersonal computing era began.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept

21

72) Which of the following occurred in the 1964-1990 generation of computing?

A) The mainframe era began.

B) The personal computer era ended, and interpersonal computing began.

C) The mainframe era ended, and the personal computer era began.

D) The interpersonal computing era ended, and the internetworking era began.

E) The internetworking era ended.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 73) Which of the following occurred in the 1990-2000 generation of computing?

A) The mainframe era began.

B) The personal computer era ended, and the interpersonal computing era began.

C) The mainframe era ended, and the personal computer era began.

D) The interpersonal computing era ended, and the internetworking era began.

E) The internetworking era ended.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 74) Which of the following occurred in the 1958-1964 generation of computing?

A) The internetworking era began.

B) The personal computer era expanded.

C) The interpersonal computing era ended.

D) The interpersonal computing era began.

E) The mainframe era expanded.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept

22

75) The prediction that the number of transistors on a chip would double about every two years is known as ________.

A) Megan's law B) Ashby's law C) Murphy's law D) Metcalfe's law E) Moore's law Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 76) Manufacturers of hardware and software often apply the concept of planned obsolescence, meaning that ________.

A) the companies have already decided when to launch their next product B) the product is designed in such a way as to extend its life span C) the product is designed to last only for a certain life span D) the product is designed to avoid obsolescence E) the companies do not enter markets that have the risk of product obsolescence Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 77) For organizations getting ahead of the competition they must adopt a/an ________ mindset.

A) traditional B) lean C) growth D) agile E) creative Answer: D AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Analytical Thinking

23

78) Under the ________ model, organizations "rent" resources such as processing, data storage, or networking from an external provider on an as-needed basis and pay only for the services used.

A) cluster computing B) grid computing C) distributed computing D) utility computing E) parallel computing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 79) As defined by the National Institute of Standards and Technology (NIST), "________ is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction."

A) Green computing B) Social networking C) Internetworking D) Web phishing E) Cloud computing Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 80) The ability to adapt to increases or decreases in demand for processing or data storage is known as ________.

A) extensibility B) portability C) reliability D) scalability E) usability Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

24

81) Which of the following statements is true about the software as a service model?

A) The customer has no knowledge or control over the underlying infrastructure and has only limited ability to control or configure application-specific settings.

B) The customer has to manage the licenses for the operating systems being used.

C) The customer can run his or her own applications that are typically designed using tools provided by the service provider.

D) The customer is provided with the basic capabilities of processing, storage, and networking.

E) The user has control over the applications but has limited or no control over the underlying infrastructure.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 82) Which of the following statements is true about the platform as a service model?

A) The customer is provided with the basic capabilities of processing, storage, and networking.

B) The customer has no knowledge or control over the underlying infrastructure and has only limited ability to control or configure application-specific settings.

C) The customer can run his or her own applications that are typically designed using tools provided by the service provider.

D) Only the basic capabilities of processing, storage, and networking are provided.

E) The customer has to manage the licenses for the operating systems being used.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 83) Which of the following statements is true about the infrastructure as a service model?

A) The customer has to manage the licenses for the operating systems being used.

B) The customer has no knowledge or control over the underlying infrastructure and has only limited ability to control or configure application-specific settings.

C) The customer can run his or her own applications that are typically designed using tools provided by the service provider.

D) The customer does not have to manage operating system licenses.

E) The user has control over the applications but has limited or no control over the underlying infrastructure.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 25

84) Which of the following statements is true about a public cloud?

A) It gives an organization a high degree of customizability over its data and applications.

B) It can be used by any interested party on a pay-per-use basis.

C) It is internal to an organization.

D) It does not free an organization from the issues associated with managing the cloud infrastructure.

E) It gives an organization a high degree of control over its data and applications.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 85) ________ is used to solve large-scale computing problems.

A) Trusted computing B) Edge computing C) IP convergence D) Grid computing E) Distributed computing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 86) Which of the following is used to increase Web application performance?

A) Trusted computing B) Distributed computing C) Content delivery networks D) IP convergence E) Green computing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

26

87) ________ is used to transmit voice and video communication over the Internet.

A) Edge computing B) IP convergence C) Distributed computing D) IP routing E) IP console Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 88) Which of the following differentiates grid computing from cloud computing?

A) Grid computing uses a large number of computers.

B) Grid computing is a natural evolution of the widespread adoption of virtualization and utility computing.

C) Grid computing is applied to a single large problem.

D) Grid computing involves over-the-Internet provision of dynamically scalable and often virtualized resources.

E) Grid computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 89) In grid computing, the slowest computer creates a bottleneck and slows down the entire grid.

A(n) ________ grid, consisting of a large number of homogeneous computers, can help overcome these problems.

A) trusted B) edged C) clustered D) dedicated E) parallel Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

27

90) Customers can run their own applications, which are typically designed using tools provided by the service provider in a(n) ________ model.

A) infrastructure as a service B) platform as a service C) software as a service D) application as a service E) hardware as a service Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 91) ________, the use of the Internet protocol (IP) for transporting voice, video, fax, and data traffic, has allowed enterprises to make use of new forms of communication and collaboration, as well as traditional forms of communication, at much lower costs.

A) Grid computing B) IP edging C) IP convergence D) Edge computing E) IP console Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 92) The cloud computing model has several unique and essential characteristics that distinguish cloud computing from an in-house infrastructure. One of these characteristics is ________.

A) narrow network access B) rapid elasticity C) external network capability D) packaged networking E) cloud engineered data Answer: B AACSB: Reflective thinking Difficulty: Easy Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

28

93) Describe the different classes of computers.

Answer: The six general classes of computers are supercomputer, mainframe, server, workstation, personal computer and mobile devices.

• A supercomputer is the most expensive and most powerful kind of computer. It is used primarily to assist in solving massive scientific problems.

• A mainframe computer, while being very large, is used primarily as the main, central computing system for major corporations. Optimized for high availability, resource utilization, and security, mainframes are typically used for mission critical applications, such as transaction processing.

• A server is any computer on a network that makes access to files, printing, communications, and other services available to users of the network. Servers are used to provide services to users within large organizations or to Web users. Servers are optimized for access by many concurrent users and therefore have more advanced microprocessors, more memory, a larger cache, and more disk storage than single-user computers.

• Workstations, designed for medical, engineering, architectural, or animation and graphics design uses, are optimized for visualization and rendering of three-dimensional models, and typically have fast processors, large memory, and advanced video cards.

• Personal computers (PCs) are used for personal computing and small business computing. In addition, portable computers–notebook computers, netbooks, tablets, and smartphones–have increasingly become part of an organization's information systems infrastructure.

• Mobile devices are handheld devices for a single user. The typical use is for personal productivity.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

29

94) Briefly describe system software.

Answer: System software is the collection of programs that control the basic operations of computer hardware. The most prominent type of system software, the operating system (e.g., Windows 8, OS X, Ubuntu Linux), coordinates the interaction between hardware components (e.g., the CPU and the monitor), peripherals (e.g., printers), application software (e.g., office programs), and users. Operating systems are often written in assembly language, a very low-level computer programming language that allows the computer to operate quickly and efficiently.

The operating system is designed to insulate you from this low-level language and make computer operations unobtrusive. Further, the operating system provides a common layer for different underlying devices, so that applications only have to be developed for different operating systems, rather than for each different computer model. The operating system performs all of the day-to-day operations that we often take for granted when using a computer, such as updating the system clock, printing documents, or saving data to a disk. Just as our brain and nervous system control our body's breathing, heartbeat, and senses without our conscious realization, the system software transparently controls the computer's basic operations.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 95) List and explain the different components of a network.

Answer: A network consists of three separate components-servers, clients, and peers.

• A server is any computer on the network that makes access to files, printing, communications, and other services available to users of the network. Servers only provide services.

• A client is any computer, such as a user's PC or laptop, on the network, or any software application, such as Microsoft's Outlook e-mail client, that uses the services provided by the server. Clients only request services. A client usually has only one user, whereas many different users share the server.

• A peer is any computer that may both request and provide services.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept

30

96) Why aren't IP addresses normally used to navigate Web addresses instead of domain names?

Answer: IP addresses can be used instead of URLs to navigate to particular Web addresses.

This practice is not done regularly, as IP addresses are far more difficult to remember than domain names, and an organization may assign its domain name to a server with a different IP address. While the IP address behind a domain name may change, the domain name stays the same.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.2: Describe the essential components of an organization's IS infrastructure.

Classification: Concept 97) Briefly explain Moore's law.

Answer: In 1965, Intel cofounder Dr. Gordon Moore hypothesized that the number of transistors on a chip would double about every two years. When Moore made this bold prediction, he did not limit it to any specified period of time. This prediction became known as Moore's Law. Interestingly, whereas the first CPU had 2,200 transistors, the newest models have broken the 5-billion-transistor mark, so Dr. Moore's prediction has been fairly accurate so far.

The number of transistors that can be packed into a modern CPU and the speed at which processing and other activities occur are remarkable. For example, the Intel Core i7 Extreme CPU can complete hundreds of millions of operations every second.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept 98) Briefly explain the history of computing.

Answer: When the Zuse Z1 Computer (a mechanical computer using program punch cards) was introduced in 1936, almost all business and government information systems consisted of file folders, filing cabinets, and document repositories. Huge rooms were dedicated to the storage of these records. Information was often difficult to find, and corporate knowledge and history were difficult to maintain. Only certain employees knew specific information. When these employees left the firm, so did all their knowledge about the organization. The computer provided the solution to the information storage and retrieval problems facing organizations up to the 1940s.

Shifts in computing eras were facilitated by fundamental changes in the way computing technologies worked. Each of these fundamental changes is referred to as a distinct generation of computing.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.3: Discuss managerial issues associated with managing an organization's IS infrastructure.

Classification: Concept

31

99) Distinguish between the software as a service model and the platform as a service model.

Answer: In the software as a service (SaaS) model, the customer uses an application provided via a cloud infrastructure. The consumer cares only about the application, with no knowledge or control over the underlying infrastructure and has only limited ability to control or configure application-specific settings. The customer does not have to worry about maintaining or updating the software, the underlying platform, or the hardware infrastructure.

In the platform as a service (PaaS) model, the customer can run his or her own applications that are designed using tools provided by the service provider. In this model, the user has control over the applications, but has limited or no control over the underlying infrastructure. As the underlying computing platform is provided, the customer does not have to worry about purchasing software licenses, such as operating systems for Web servers or database management systems, and the service provider manages the functioning and updating of the platform provided.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 100) Write a short note on the infrastructure as a service model.

Answer: In the infrastructure as a service (IaaS) model, only the basic capabilities of processing, storage, and networking are provided. Hence, the customer has the most control over the resources. The IaaS model provides the customer with the greatest flexibility; on the other hand, while the infrastructure is provided, managing licenses for operating systems and so on is still the responsibility of the customer, and setup costs are considerably higher.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept

32

101) Briefly discuss the types of clouds.

Answer: Cloud service providers such as Amazon.com offer what is referred to as a public cloud. Services in a public cloud can be used by any interested party on a pay-per-use basis; hence, they are often used for applications that need rapid scalability (i.e., the ability to adapt to increases or decreases in demand for processing or data storage), or in cases where there is insufficient capital or other resources to build or expand an IT infrastructure. In contrast, a private cloud (or internal cloud) is internal to an organization and can help the organization to balance demand and supply of computing resources within the organization; similar to a public cloud, a private cloud provides self-service access to resources, allowing business users to provision resources on-demand using a utility computing model. A private cloud does not free an organization from the issues associated with managing the cloud infrastructure, but it does give the organization a high degree of customizability, flexibility, and control over its data and applications.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 102) Briefly describe grid computing.

Answer: Grid computing refers to combining the computing power of a large number of smaller, independent, networked computers (often regular desktop PCs) into a cohesive system in order to solve problems that only supercomputers were previously capable of solving. Similar to cloud computing, grid computing makes use of distributed resources; however, in contrast to cloud computing, the resources in a grid are typically applied to a single large problem. To make grid computing work, large computing tasks are broken into small chunks, each of which can then be completed by individual computers. However, as the individual computers are also in regular use, the individual calculations are performed during the computers' idle time so as to maximize the use of existing resources.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 103) Explain how scalability is an issue for organizations when managing their cloud infrastructure.

Answer: One of the biggest promises of cloud computing is scalability, such that organizations can scale up or down their infrastructure as needed. Yet, not every provider will be able to meet every organization's demands. Thus, organizations must carefully evaluate to what extent the provider will be able to meet current and future business needs in terms of data storage, transaction volumes, and so on.

AACSB: Information technology Difficulty: Moderate Learning Objective: 3.4: Describe cloud computing and other current trends that can help an organization address IS infrastructure-related challenges.

Classification: Concept 33

Information Systems Today, 9e (Valacich) Chapter 4 Enabling Business-to-Consumer Electronic Commerce 1) Electronic commerce is limited to transactions between businesses and consumers which is known as business-to-consumer (B2C) EC. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 2) Electronic commerce can involve the events leading up to the purchase of a product as well as customer service after the sale.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 3) M-commerce is defined as any electronic transaction or information interaction conducted using a wireless mobile device and mobile networks that leads to the transfer of real or perceived value in exchange for information, services, or goods.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 4) Government-to-business (G2B) EC does not involve businesses' relationships with all levels of government.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 5) When organizations undergo disintermediation, they have to take on those activities previously performed by the middleman.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 1

6) Companies pursuing a click-only business strategy approach business activities in a traditional manner by operating physical locations.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 7) Amazon.com is an example of a brick-and-mortar company.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 8) Companies pursuing a click-and-mortar business strategy have no physical store locations, allowing them to focus purely on electronic commerce.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 9) The greatest impact of the Web-based EC revolution has occurred in companies adopting the brick-and-mortar approach.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 10) A click-and-mortar business strategy approach is also referred to as the bricks-and-clicks business strategy.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 11) Click-only companies can often compete more effectively on price since they do not need to support the physical aspects of the click-and-mortar approach.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 2

12) One of the challenges for brick-and-mortars involves increasing IS complexity.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 13) E-tailers can focus on the Long Tails.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 14) Web sites can offer a virtually unlimited number and variety of products because e-tailing is not limited by physical store and shelf space restrictions.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 15) The structural firmness for the login page of an online banking site need not be emphasized to the user.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 16) For Web sites to be successful, structural firmness is a must.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

3

17) One drawback of pay-per-click models is the possibility of abuse by repeatedly clicking on a link to inflate revenue to the host or increase the costs for the advertiser.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 18) Shill bidding is also known as freecycling.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 19) Bitcoin is an example of a cryptocurrency.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept 20) In addition to online banking, online brokerage has seen steady growth over the past several years.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept

4

21) Which of the following statements is true about electronic commerce?

A) Business-to-business electronic commerce is by far the largest form of electronic commerce in terms of revenues.

B) Electronic commerce is limited to transactions between businesses and consumers.

C) Electronic commerce between businesses and their employees is impossible.

D) All forms of electronic commerce involve business firms.

E) Consumer-to-consumer electronic commerce is a complete reversal of the traditional business-to-consumer electronic commerce.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 22) Which of the following is an example of business-to-consumer electronic commerce?

A) Brenda files her income tax online.

B) Canchi, a shoe manufacturer, conducts business over the Web with its retailers.

C) Juan buys guitars for resale on Monsung.com.

D) Reuben buys a pair of shoes on Mysticshoes.com.

E) Neal places a bid for a mobile phone on the online auction site Feliciate.com.

Answer: D AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Application 23) The auction site eBay.com is an example of ________ electronic commerce.

A) business-to-business B) consumer-to-consumer C) business-to-consumer D) consumer-to-business E) government-to-business Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept

5

24) Which of the following is an example of consumer-to-consumer electronic commerce?

A) Niobi makes an online deposit of $5,000 into her friend's account.

B) Heath buys a gift for Vanessa on Aniocride.com.

C) Blanco, a manufacturer, conducts business over the Web with its retailers.

D) Ashley buys a new pair of shoes on Fequette.com.

E) Marty buys Lobsang's mountaineering equipment on Chieoke.com.

Answer: E AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Application 25) Ben buys a camera from Xenthix which starts malfunctioning, as the camera fell from his hand and broke its lens. When he opts for an exchange, the customer representative says that an exchange or repair is not possible because the damage is of a physical nature and not covered under warranty. Which of the following consequences, if true, would be an example of consumer-to-consumer electronic commerce?

A) Ben sells the camera to Balvinder Singh on Iora.com.

B) Ben files an online suit against Xenthix.

C) Ben files a complaint on Xenthix's Web site asking for a refund.

D) Ben buys another camera from Xenthix's online store.

E) Ben sells the camera to the world's largest used camera dealer, Koenister.com.

Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Application 26) A state agency reporting birth and death information to the U.S. Social Security Administration using the Internet is an example of ________ electronic commerce.

A) business-to-consumer B) government-to-citizen C) government-to-business D) government-to-government E) business-to-business Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept

6

27) Identify a true statement about the Internet of things.

A) It enables companies to offer various innovative products and services that go beyond the initial purchase.

B) It defines a set of reachable and exploitable vulnerabilities present in a business model.

C) It contains rules and guidelines that describe how security is to be enforced during system operation.

D) It identifies the tasks that are critical within a business model and builds a network that depicts their interdependencies.

E) It is defined as the percentage of visitors who leave the Web site after viewing that page.

Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 28) E-filing is an example of a ________ tool.

A) government-to-citizen B) consumer-to-consumer C) government-to-government D) consumer-to-business E) business-to-business Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 29) ________ refers to technologies that support activities in the financial sector.

A) Financial networking B) Electronic bill pay C) Fintech D) Mobile banking E) Technet Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept

7

30) In the context of GPS-enabled location-based services, the ability to see another person's location is an example of ________ service.

A) reintegration B) navigation C) mapping D) disintegration E) tracking Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 31) The form of electronic commerce that is used by organizations to conduct business with business partners without involving the end consumer is known as ________ electronic commerce.

A) business-to-consumer B) peer-to-peer C) business-to-business D) business-to-intermediary E) business-to-supplier Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 32) Hatso, a famous hat retailer chain, opens a new store in Kentucky and chooses to operate solely in the traditional physical markets. It approaches business activities in a traditional manner by operating physical locations such as retail stores and not offering their products or services online. Which of the following business strategies does Hatso follow?

A) brick-and-mortar B) click-only C) organizational D) low-cost leadership E) differentiation Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Application

8

33) Which of the following statements explain mass customization?

A) Firms tailor their products and services to meet a customer's particular needs on a large scale.

B) Firms immediately provide communication to and receive feedback from customers.

C) Firms provide ways for clients to conduct business online without human assistance.

D) Firms market their products and services over vast distances.

E) Firms link Web sites to corporate databases to provide real-time access to personalized information.

Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 34) The phenomenon of cutting out the "middleman" and reaching customers more directly and efficiently is known as ________.

A) gentrification B) demutualization C) defalcation D) dissemination E) disintermediation Answer: E AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 35) Which of the following is an example of disintermediation?

A) Anister, a car-manufacturing company, markets most of its four-wheel drives in high altitude regions where vehicles require more power.

B) Donuts Haven, a fast food chain, expands its menu beyond breakfasts by adding hearty snacks that substitute as meals in order to provide competition to the other food chains in the area.

C) Aubrey Thirst Quencher is a market leader in sports drinks. It expands its market by providing its drinks to working women in urban areas.

D) Rusicwood, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers.

E) A luxury car company creates a hybrid line of automobiles for consumers who are concerned about the environment.

Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Application

9

36) Identify a true statement about reintermediation regarding e-tailing.

A) It refers to the design of business models that reintroduce middlemen.

B) It refers to the design of business models that eliminate middlemen.

C) It provides ways for clients and firms to conduct business online without human assistance.

D) It provides ways for clients and firms to conduct business activities in a traditional manner by operating physical locations.

E) It enables access to Web sites linked to corporate databases in order to provide real-time access to personalized information.

Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 37) Which of the following is an example of reintermediation?

A) The diamond card of the Futilery Centriono, is issued by invitation only to customers who spend more than $250,000 a year on their shopping card.

B) Nanny Duke, a baby products manufacturing company, acquires a list of parents-to-be and showers them with samples of diapers and other baby products to capture a share of their future purchases.

C) Kambo, a fashion apparel company that deals directly with customers to sell its products, adds retailers to its supply chain to cater to its target audience in remote geographic locations.

D) Rusicwood, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers.

E) Donuts Haven, a fast food chain, expands its menu beyond breakfasts by adding hearty snacks that substitute as meals in order to provide competition to the other food chains in the area.

Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Application 38) Companies following a ________ business strategy choose to operate solely in the traditional physical markets approaching business activities in a traditional manner.

A) click-only B) high-cost leadership C) low-cost leadership D) click-and-flip E) brick-and-mortar Answer: E AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

10

39) Which of the following statements is true about firms pursuing a brick-and-mortar business strategy?

A) These firms avoid indulgence in physical store locations.

B) These firms avoid indulgence in electronic commerce.

C) These firms are only involved in export business activities.

D) These firms indulge in rafter bidding activities.

E) These firms operate in both physical and virtual arenas.

Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 40) Which of the following statements is true about companies pursuing a click-only business strategy?

A) These companies approach business activities by operating in physical locations.

B) These companies operate in both physical and virtual arenas.

C) These companies conduct business electronically in cyberspace.

D) These companies are only involved in export business activities.

E) These companies choose to operate their business activities solely in the traditional manner.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 41) Without middlemen like Travelocity.com, Orbitz.com, and other travel Web sites, a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price. The introduction of middlemen in business models is an example of ________.

A) reintermediation B) remutualization C) gentrification D) disintermediation E) defalcation Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

11

42) Companies using a ________ business strategy are also called virtual companies.

A) click-and-flip B) click-only C) brick-and-mortar D) bricks-and-clicks E) click-and-mortar Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 43) Online retailer Amazon.com is an example of a ________ company.

A) click-and-mortar B) click-and-flip C) bricks-and-clicks D) click-only E) brick-and-mortar Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 44) In e-business terminology, ________ companies are sometimes called "pure play companies."

A) bricks-and-clicks B) click-and-mortar C) brick-and-mortar D) click-and-flip E) click-only Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

12

45) Bookseller Barnes & Noble is an example of a ________ company.

A) flip-only B) click-only C) click-and-mortar D) click-and-flip E) brick-and-mortar Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 46) Which of the following statements is true about firms pursuing a click-and-mortar business strategy?

A) These firms are only involved in export business activities.

B) These firms operate in both physical and virtual arenas.

C) These firms are involved in rafter bidding activities.

D) These firms conduct business only electronically in cyberspace.

E) These firms avoid indulgence in physical store locations.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 47) Walmart.com is an example of a ________ retailer.

A) brick-and-mortar B) click-only C) bricks-and-clicks D) click-and-flip E) brick-and-flip Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

13

48) In ________ pricing, companies set the prices that consumers pay for products.

A) viral B) top-up C) menu-driven D) reverse E) rafter bid Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 49) The online sales of goods and services are known as ________.

A) e-information B) e-integration C) e-tailing D) e-collaboration E) e-filing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 50) Which of the following occurs in a reverse pricing model?

A) Customers specify the product they are looking for and how much they are willing to pay for it.

B) Companies set the prices that customers pay for products.

C) Companies conduct an online auction for all products available for sale.

D) Customers specify the product they are looking for and the company provides the product with a price.

E) Companies negotiate special volume discounts with local businesses and offer them to their customers.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

14

51) How do comparison shopping sites generate revenue?

A) by charging a commission on transactions B) by selling their products in physical stores as well C) by charging a virtual shelf space fee to manufacturers D) by increasing the click count on their sites E) by charging distribution fees to consumers Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 52) The concept of the Long Tail refers to a focus on ________.

A) brand evangelism B) broad markets C) generic brands D) brand dilution E) niche markets Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 53) Which of the following is a disadvantage of e-tailing?

A) It is limited by physical store and shelf space restrictions.

B) It requires additional time for products to be delivered.

C) It complicates the process of comparison shopping.

D) It restricts companies from effectively competing on prices.

E) It reduces a company's inventory turnover time.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

15

54) EZBiz, the brainchild of three college friends, is a startup venture that plans to produce and market sports gear. The venture is still stuck in the planning phase as they have not been able to decide the suitable business strategy to opt for. They are currently trying to decide between a bricks-and-clicks strategy or a click-only strategy. Which of the following, if true, would most undermine the decision to adopt a click-only strategy?

A) The company has limited access to funds and is looking to keep its costs low.

B) The public is wary of sharing confidential information after a recent spate of credit card scandals.

C) A competitor is facing severe backlash after inadvertently releasing sensitive data into the public domain.

D) Several companies who have switched from a brick-and-mortar strategy to a click-only strategy are experiencing severe channel conflicts.

E) Some click-only companies have been unable to achieve economies of scale and are subsequently unable to offer lower prices.

Answer: B AACSB: Reflective thinking; Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Critical Thinking 55) When an organization offers the customer both a retail store and Internet shopping experience, it is referred to as ________.

A) cross-channel retailing B) multichannel retailing C) omni-channel retailing D) network retailing E) bi-retailing Answer: B AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 56) ________ are two-dimensional barcodes with a high storage capacity that are typically used to point the consumer to a particular Web page when he or she scans the barcode with a mobile device's camera.

A) Viral codes B) QR codes C) MSI barcodes D) MaxiCodes E) CPC Binary Barcodes Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 16

57) With respect to e-tailing, ________ can initiate certain actions, such as making a phone call to a sales representative or sending a text message to a pre-specified number.

A) MaxiCodes B) CPC Binary Barcodes C) viral codes D) MSI barcodes E) QR codes Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 58) ________ is(are) defined as the percentage of visitors who leave the Web site after viewing that page.

A) Bounce rate B) Exit rates C) Link rate D) Web analytics E) Domain analytics Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 59) In electronic commerce, ________ is defined as the percentage of single-page visits.

A) exit rate B) showrooming C) freecycling D) bounce rate E) value chain analysis Answer: D AACSB: Analytical thinking Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

17

60) How is structural firmness of a Web site achieved?

A) by providing understandable messages if anything goes wrong B) by redirecting Web pages to different sites if any link fails C) by using technical jargons to define a problem D) by developing a mirror site E) by implementing a complicated source code Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 61) When a Web site ensures privacy and security of the consumer's data, ________ can be achieved.

A) reintermediation B) structural firmness C) disintermediation D) functional convenience E) representational delight Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 62) With respect to the online consumer's hierarchy of needs, identify the most critical characteristic of a Web site.

A) functional convenience B) structural firmness C) representational delight D) descriptive link text E) cross-platform compatibility Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

18

63) Identify a true statement about the function of Google's Ad Words.

A) It ensures high-quality leads when a search is conducted online.

B) It presents a view of short-term technology integration.

C) It presents a view of long-term technology integration.

D) It redirects Web pages to different sites if the link fails.

E) It provides immediate communication to and receives feedback from customers.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 64) Some search engines offer to elevate a page's position in the organic results after paying a fee. This is known as ________.

A) paid analysis B) e-reintermediation C) e-subscription D) e-information E) paid inclusion Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 65) Timothy was reading tournament results of the football World Cup matches on Infogoalistic.com. As he was going through the results, an advertisement of new football studs popped up. This is an example of ________ advertising.

A) covert B) contextual C) surrogate D) niche E) user-generated Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Application

19

66) Identify a characteristic of the Web that influences a Web site's security and performance.

A) structural firmness B) functional convenience C) cost compliance D) representational delight E) disintermediation capacity Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 67) Which of the following characteristics of the Web deals with making the interaction with a Web site easier or more convenient?

A) representational delight B) cost compliance C) structural firmness D) disintermediation capacity E) functional convenience Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 68) Which of the following characteristics of the Web deals with stimulating a consumer's senses?

A) functional convenience B) cost compliance C) representational delight D) structural firmness E) disintermediation capacity Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

20

69) Which of the following explains Web analytics?

A) conducting online marketing research to improve product quality B) analyzing Web sites in order to find the best one in a category C) tracking all online purchasers to try and increase their frequency of visit to a particular Web site D) analyzing Web surfers' behavior in order to improve Web site performance E) analyzing Web sites in order to find the best online business practices Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 70) A way to ensure that a company's site is on the first page users see when looking for a specific term is using ________ advertising.

A) stealth B) viral C) buzz D) search E) affiliate Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 71) Companies use ________ to move up their Web sites in the organic search engine results.

A) search engine image protection B) search engine optimization C) search engine keyword insertion D) search-oriented architecture E) domain stacking Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

21

72) If a company's Web site is in the sponsored list of a search engine, the search engine receives revenue on a ________ basis.

A) pay-per-click B) pay-per-sale C) click-through D) pay-per-conversion E) click-per-visit Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 73) A recent trend in display advertising has been ________ advertising, where the ads placed on a page are in some way related to the content of that page.

A) contextual B) buzz C) viral D) affiliate E) stealth Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 74) The performance of a pay-per-click advertising model can be assessed by ________, which reflects the percentage of visitors who actually perform the marketer's desired action such as making a purchase.

A) click fraud rate B) contextual search rate C) pop-up rate D) click-through rate E) conversion rate Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

22

75) In the context of pay-per-click models, inflating the revenue to a host or increasing costs for the advertiser by repeatedly clicking on a link is called ________ fraud.

A) link B) affiliate C) click D) conversion E) disintermediation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 76) Under the ________ pricing model, the firm running the advertisement pays only when a Web surfer actually clicks on the advertisement.

A) pay-per-refresh B) pay-per-sale C) pay-per-click D) pay-per-conversion E) click-per-visit Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 77) Click-through rate reflects ________.

A) the ratio of surfers who visit a Web site divided by the number of surfers who clicked on an ad B) the ratio of surfers who click on an ad divided by the number of times it was displayed C) the percentage of visitors who actually perform the marketer's desired action D) the ratio of surfers who click on an ad divided by the number of people who make a purchase E) the ratio of surfers who visit a Web site divided by the number of people who make a purchase Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

23

78) How can the effectiveness of e-mail advertising campaigns be measured directly?

A) by reflecting the percentage of visitors who actually perform the marketer's desired action B) by reflecting the number of surfers who click on an ad divided by the number of times it was displayed C) by creating use cases and business models to determine the ratio of the opened mails to the sent mails D) by conducting online polls, starting online forums, and collecting user feedbacks E) by including special links in the e-mail that allow tracking which e-mails the customers have opened or reacted to Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 79) Identify a key driver for m-commerce.

A) location-based services B) economic conditions C) Web-based applications D) crowdsourcing E) offshoring Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 80) In the context of GPS-enabled location-based services, the ability to determine the basic geographic position of a cell phone is an example of ________ service.

A) location B) mapping C) navigation D) tracking E) reintegration Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept

24

81) In the context of GPS-enabled location-based services, capturing specific locations to be viewed on the phone is an example of ________ services.

A) location B) mapping C) navigation D) tracking E) disintegration Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 82) In the context of GPS-enabled location-based services, the ability to give route directions from one point to another is an example of ________ services.

A) mapping B) disintegration C) navigation D) reintegration E) tracking Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 83) A ________ is a form of e-auction which allows businesses to buy seized and surplus government equipment.

A) reverse auction B) mystery auction C) top-up D) forward auction E) rafter bid Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept

25

84) When shoppers come into a store to evaluate the look and feel of a product, just to then purchase it online or at a competitor's store is known as ________.

A) showrooming B) a rafter bid C) freecycling D) a forward auction E) crowdsourcing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 85) Which of the following is a mechanism for consumer-to-consumer transactions?

A) e-tailing B) e-integration C) e-filing D) e-tendering E) e-auctions Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 86) ________ is the largest e-auction site.

A) eBay B) Asos C) Zappos D) ePier E) Fitiquette Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept

26

87) ________ is used in consumer-to-business e-commerce to have small, well-defined tasks performed by a scalable ad hoc workforce of everyday people.

A) Nearshoring B) Insourcing C) Offshoring D) Crowdsourcing E) Homesourcing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 88) All of the following are valid payment methods for electronic commerce except ________.

A) TechPay B) PayPal C) Apple Pay D) Google Wallet E) Square Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept 89) What is the term that represents the principle that all Internet data should be treated the same?

A) digital rights management B) Internet equality C) Internet data security D) Digital Data Act E) net neutrality Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept

27

90) The technological solution that allows publishers to control their digital media to discourage, limit, or prevent illegal copying and distribution is known as ________ management.

A) digital analytics B) digital signature C) digital marketing D) digital radiography E) digital rights Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept 91) ________ is a three-digit code located on the back of a credit or debit card that is used for authorization by the card-issuing bank to combat fraud in online purchases.

A) Competitive Fraud Detector B) Card Verification Value C) Online Purchase Processor D) Card Detection Value E) Purchase Processing Value Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept 92) According to tax laws such as the ________, sales on the internet are treated the same way as mail-order sales, and a company is required to collect sales tax only from customers residing in a state where the business had substantial presence.

A) Internet Tax Freedom Act B) Internet Sales Tax Act C) Freedom of Information Act D) Internet Tax Act of 2019 E) Internet Taxation Sales Act Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept

28

93) Explain the e-government relationships.

Answer: Government-to-citizen (G2C) EC allows for interactions between federal, state, and local governments and their constituents. The Internal Revenue Service's Internet tax filing, or efiling, is one of the more recognizable G2C tools, saving resources in terms of time and paper.

Another e-government tool in wide use today is grants.gov.

Government-to-business (G2B) is similar to G2C, but this form of EC involves businesses' relationships with all levels of government. This includes e-procurement, in which the government streamlines its supply chain by purchasing materials directly from suppliers using its proprietary Internet-enabled procurement system.

Government-to-government (G2G) EC is used for electronic interactions that take place between countries or between different levels of government within a country.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.1: Describe different approaches to competing in cyberspace as well as different forms of electronic government and e-finance.

Classification: Concept 94) Discuss the drawbacks of E-tailing.

Answer: One of the main factors keeping many consumers from purchasing goods and services online is trust. Especially for new online businesses, this tends to be challenging, as customers may be hesitant to purchase from companies they have never heard of. Two issues relating to trust are: 1) Direct Product Experience. For many products, customers desire not only information about product characteristics, but also sensory information, such as taste, smell, and feel. This is difficult when purchasing over the Internet; and 2) Product Delivery and Returns.

Except for digital products, such as music, games, or electronic magazines, e-tailing requires additional time for products to be delivered. If you have run out of ink for your printer and your research paper is due this afternoon, chances are that you will visit your local office supply store to purchase a new ink cartridge rather than ordering it online. The ink cartridge purchased electronically needs to be packaged and shipped, delaying use of the product until it is delivered.

To combat these issues, large online retailers now offer 1-day delivery or, as is the case with Amazon.com's Prime Now, 2-hour delivery in select cities. Similarly, many click-and-mortar businesses offer in-store pickup and ship-from-store services to address issues associated with product delivery and to effectively compete with click-only companies. Other issues can also arise. The credit card information that you provided online may not be approved, or the shipper may try to deliver the package when you are not home. Finally, the customer may be unsure about product returns in case the product is not of the expected size or quality. These issues become even more problematic when conducting transactions across national borders.

AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

29

95) Briefly explain, with an example, the capability of the Web to integrate information.

Answer: Web technologies allow for integration of information via Web sites that can be linked to corporate databases to provide real-time access to personalized information. Customers no longer have to rely on old information from printed catalogs or account statements that arrive in the mail once a month. For example, like nearly every other major airline, US Airways (www.usairways.com) dynamically adjusts fares based on availability, booking time, current and historical demand, forecast demand, and other factors to maximize revenues. The most current fares are disseminated in real-time on the company's Web site. This is particularly important for companies operating in highly competitive environments such as the airline industry.

Furthermore, US Airways offers its valued customers the ability to check the balances of their frequent-flyer accounts, linking customers to information stored on the firm's corporate database.

Customers do not have to wait for monthly statements to see if they are eligible for travel benefits.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 96) Explain the different electronic commerce (EC) business strategies.

Answer: There are three different electronic commerce business strategies: • Brick-and-mortar business strategy–Companies following this business strategy choose to operate solely in the traditional physical markets. These companies approach business activities in a traditional manner by operating physical locations such as retail stores and not offering their products or services online.

• Click-only business strategy–Companies following this business strategy (i.e., virtual companies) conduct business electronically in cyberspace. These firms have no physical store locations, allowing them to focus purely on EC. In e-business terminology, click-only companies are sometimes called "pure play companies," focusing on one very distinct way of doing business.

• Click-and-mortar business strategy–Firms pursuing this strategy choose to operate in both physical and virtual arenas. This business strategy is also referred to as the bricks-and-clicks business strategy.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept

30

97) Briefly describe the benefits of e-tailing.

Answer: E-tailing can provide many benefits over traditional brick-and-mortar retailing in terms of the marketing concepts of product, place, and price.

• Product Benefits: Web sites can offer a virtually unlimited number and variety of products because e-tailing is not limited by physical store and shelf space restrictions. For instance, etailer Amazon.com offers millions of book titles on the Web, compared to a local brick-andmortar-only book retailer, which can offer "only" a few thousand titles in a store because of the restricted physical space.

• Place Benefits: As company storefronts can (virtually) exist on every computer that is connected to the Web, e-tailers can compete more effectively for customers, giving e-tailers an advantage. Whereas traditional retailing can be accessed only at physical store locations during open hours, e-tailers can conduct business anywhere at any time.

• Price Benefits: E-tailers can also compete on price effectively since they can turn their inventory more often because of the sheer volume of products and customers who purchase them. Companies can sell more products, reducing prices for consumers while at the same time enhancing profits for the company. Further, virtual companies have no need to rent expensive retail space or employ sales clerks, allowing them to further reduce prices.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.2: Describe business-to-consumer electronic commerce strategies.

Classification: Concept 98) What are the features that are to be provided to make a Web site functionally convenient?

Answer: Web sites should provide easy navigation for users to find their way (and back). They should provide feedback about where the users are on the site, and offer help features. Further, features such as one-click ordering, offering a variety of payment methods, or order tracking can increase the perceived functional convenience of a Web site.

AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept

31

99) Explain social media marketing with an example.

Answer: One relatively recent trend in Internet marketing is harnessing the power of social media, such as the social networking site Facebook. More and more people rely on social media to stay in contact with their friends or business associates, so including such sites in the interactive marketing mix is a natural move for companies. In addition to placing display ads on such sites, companies increasingly use social networking sites for interactive communication with their customers. For example, the Coca-Cola Company has created a page on Facebook, allowing it to interact with its over 82 million "fans" (i.e., Facebook users who "like" the page) in various ways; Coke's fans can download free virtual goodies, can upload pictures related to everything Coke, or can use interactive applications. By creating this page, Coke can build strong relationships with a large group of its target customers. Similarly, people can follow Coke on Twitter or visit Coke's channel on the video sharing site YouTube. A recent trend for companies is establishing "social media listening centers" to feel the pulse of public opinion across a variety of social media.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 100) How can a consumer's need for representational delight be fulfilled while designing a Web site?

Answer: The consumer's need for representational delight can be fulfilled by creating a unique look and feel that can separate a Web site from its competitors. Aesthetics can include the use of color schemes, backgrounds, and high-quality images. Furthermore, Web sites can have a clear, concise, and consistent layout, taking care to avoid unnecessary clutter.

AACSB: Information technology Difficulty: Easy Learning Objective: 4.3: Understand the keys to successful electronic commerce websites and explain the different forms of Internet marketing.

Classification: Concept 101) Briefly explain location-based m-commerce.

Answer: A key driver for m-commerce is location-based services, which are highly personalized mobile services based on a user's location. Location-based services are implemented via the cellular network, Wi-Fi networks, and Global Positioning System (GPS) functionality, now built into most modern cell phones. Location-based services allow the service provider to offer information or services tailored to the consumers' needs, depending on their location. For example, search engines can provide specific information about attractions or restaurants located in the user's vicinity, retail stores can enhance store locators with navigation instructions, or users can receive real-time traffic or public transport information.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 32

102) Briefly summarize the concept of online classifieds.

Answer: Online classifieds is a type of C2C e-commerce. Although online classifieds sites such as craigslist.com are enabled by Web capabilities, no transactions take place online. Yet, online classifieds have flourished in recent years, enabling people to sell anything from flowers to furniture. A related concept that has gained popularity is "freecycling," that is, giving away goods for free to anyone who is willing to pick them up. Likewise, C2C marketplaces such as Etsy allow individuals to sell vintage or handmade products to other consumers.

AACSB: Information technology Difficulty: Moderate Learning Objective: 4.4: Describe mobile commerce, consumer-to-consumer electronic commerce, and consumer-to-business electronic commerce.

Classification: Concept 103) Discuss ways to protect yourself when shopping online.

Answer:

AACSB: Reflective thinking Difficulty: Easy Learning Objective: 4.5: Describe how to conduct financial transactions and navigate the legal issues of electronic commerce.

Classification: Concept

33

Information Systems Today, 9e (Valacich) Chapter 5 Enhancing Organizational Communication and Collaboration Using Social Media 1) Membership on virtual teams is fluid, with teams forming and disbanding as needed, with team size fluctuating as necessary, and with team members coming and going as they are needed.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 2) Virtual meetings can only be held synchronously by using technologies such as online discussion boards.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 3) Virtual teams are commonly used for tasks such as developing systems and software.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 4) A work flow automation system is an example of a synchronous groupware tool.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 5) E-mail is an example of synchronous communication.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

1

6) Desktop videoconferencing has been enabled by the growing power of processors powering personal computers and faster Internet connections.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 7) Enterprise search engines such as Microsoft's Enterprise Search or the Google Search Appliance are designed to retrieve content from various internal data sources, including documents, databases, or applications linked to the company's intranet.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 8) In a Web 2.0 application, there is a relatively strict distinction between content creators and content consumers.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 9) Web 1.0 applications allow people to collaborate and share information online.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 10) Web 2.0 applications allow people to collaborate and share information online.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 11) The idea of mashups came from popular music where many songs are produced by mixing two or more existing songs together.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 2

12) The value of a network decreases with the number of other users.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 13) Social media is a classification of Web 2.0 applications.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 14) Social software can enhance communication within organizations as well as between an organization and its stakeholders.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 15) When Web pages are designed using semantic principles, computers will be able to read the pages, and search engines will be able to give richer and more accurate answers.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 16) Social sharing and collaboration are two of the core Web 1.0 values.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 17) According to the network effect, if some users of a network lack knowledge, the network has little or no value.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept

3

18) Open source software is an example of the power of collective intelligence.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 19) Hashtags are used to add metadata to messages posted on social media applications, allowing users to search for content related to a certain topic.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 20) Little or no documentation, training, or support for system complexities or problems is a risk for information technology.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 21) Asynchronous discussion forums emulate real-time written conversations.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 22) Typically, shared content is hosted on media sharing sites; however, the content can also be embedded into other sites.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

4

23) The size of a word in a tag cloud represents its importance or frequency so that it is easy to spot the most important or frequent words or tags.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 24) Adding text to media is referred to as geotagging.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 25) Cloud-based collaboration tools allow for easy access and easy transferability of documents or other files from one person to another. The tools can run on any computer with a Web browser and Internet connectivity.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 26) Google Docs is a Web-based e-mail client allowing users to send large attachments and offering large storage space and superior filing and search capabilities.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 27) Google Talk is an enterprise-level collaboration tool that allows users to create group Web sites and share team information.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

5

28) Content management systems are also known as digital asset management systems.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 29) A wiki is a Web site allowing people to post, add, edit, comment, and access information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 30) Advertisers use viral marketing to promote their Web sites, products, or services.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 31) Crowdsourcing is a cheap way of using labor to produce a product.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 32) ________ are comprised of members from different geographic areas assembled as needed to collaborate on a certain project.

A) Work groups B) Virtual teams C) Non-core teams D) Task forces E) Command groups Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

6

33) Which of the following is an example of synchronous communication?

A) online reviews B) work flow automation systems C) bulletin board systems D) videoconferencing E) e-mail Answer: D AACSB: Analytical thinking; Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Application 34) Which of the following is an example of asynchronous communication?

A) e-mail B) videoconferencing C) online chat D) shared whiteboards E) electronic meeting support systems Answer: A AACSB: Analytical thinking; Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Application 35) Many ________ systems used by organizations combine a variety of tools supporting both synchronous and asynchronous communication and collaboration.

A) groupware B) firmware C) spyware D) malware E) mashup Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

7

36) The term ________ refers to a class of software that enables people to work together more effectively.

A) groupware B) firmware C) spyware D) malware E) mashup Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 37) Which of the following is a collaboration management tool that is used to facilitate virtual or collocated meetings?

A) Internet forums B) video conferencing C) blogs D) fax E) intranets Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 38) ________ is an example of an electronic conferencing tool.

A) MS Outlook B) Apple FaceTime C) Wikipedia D) Google Docs E) MS SharePoint Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

8

39) ________ is an example of a collaboration management tool.

A) MS Outlook B) MS SharePoint C) Google Talk D) Apple FaceTime E) Wikipedia Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 40) ________ is an example of an electronic communication tool.

A) Microsoft Outlook B) Google Docs C) Apple FaceTime D) MS SharePoint E) Google Talk Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 41) ________ emulate traditional bulletin boards and allow for threaded discussions between participants.

A) Instant messages B) Online document systems C) Blogs D) Discussion forums E) Wikis Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

9

42) Which of the following statements is true about collaboration?

A) Two or more people cooperating.

B) Two or more people working together on a project team.

C) Two or more people meeting together at lunch.

D) Two or more people working together to achieve a common goal.

E) Two or more people working together.

Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 43) In addition to being used for communication and collaboration, organizational intranets are widely used for enabling employee self-service for administering benefits, managing retirement plans, or other human resources-based applications through employee ________.

A) plans B) portals C) tools D) entities E) channels Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 44) To enable collaboration and communication within an organization's workforce, many companies now use ________.

A) the Internet B) Skype C) Gmail D) a social intranet.

E) videoconferencing Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

10

45) A hashtag (#) is used in a tweet ________.

A) to show who the tweet is from B) to show who the tweet is to C) to indicate it is of extreme importance D) to indicate the topic and relate the tweet to other tweets about the same topic E) to indicate how the tweet is delivered Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 46) Which of the following is a basic concept associated with Web 2.0?

A) shift in user's preference from online sites to encyclopedias as sources of unbiased information B) shift in user's role from the passive consumer of content to its creator C) shift in user's interest from sharing information to finding information D) shift in user's lifestyle due to increased purchasing power E) shift in user's preference to environment-oriented products Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 47) Dynamic Web applications are often referred to as ________ applications.

A) user B) Web 2.0 C) service D) static interaction E) Web blog Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept

11

48) Which of the following is a shifting perspective from Web 1.0 to Web 2.0?

A) Web 1.0 - Read, Web 2.0 - Read, write B) Web 1.0 - Read, Web 2.0 - Write C) Web 1.0 - Me, Web 2.0 - You D) Web 1.0 - Write, Web 2.0 - Read E) Web 1.0 - You, Web 2.0 - Me Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 49) Which of the following statements is true about a mashup?

A) It is a small interactive tool used for a single purpose.

B) It is used to increase brand awareness through the network effect.

C) It is the process of allowing companies to use everyday people as a cheap labor force.

D) It is used to disseminate information to a narrow audience.

E) It is an application or a Web site that uses data from one or more service providers.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 50) The ________ Web, originally envisioned by Tim Berners-Lee, one of the founders of the Internet, is a set of design principles that will allow computers to be able to better index Web sites, topics, and subjects.

A) semantic B) affiliate C) folksonomy D) collaborative E) phishing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept

12

51) Which of the following is a reason for the development of the semantic Web? A) Web pages were designed to be understood by people, but not by computers.

B) Users are able to use any device in any network for any service.

C) Users provide a lot of unnecessary personal information on social networking sites.

D) Widgets cannot be integrated into Web pages.

E) Users are skeptical while making purchases online due to the fear of getting cheated.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 52) Some people see ________ as the "contextual Web," where the immense amounts of content available to users will be filtered by contextual factors such as time, location, social activities, and so on.

A) Web 3.0 B) Web 2.0 C) Web 4.0 D) Web 5.0 E) Web 1.0 Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept 53) The network effect refers to the notion that the value of a network is dependent on ________.

A) the speed of the network B) the number of other users C) the knowledge of the users D) the commitment of the users E) the technical expertise of the moderators Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.2: Explain social media and evolving Web capabilities.

Classification: Concept

13

54) A major benefit of social software is the ability to harness the "wisdom of crowds" that is also referred to as ________.

A) collaborative filtering B) preference elicitation C) creative commons D) consensus democracy E) collective intelligence Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 55) The concept of ________ is based on the notion that distributed groups of people with a divergent range of information and expertise will be able to outperform the capabilities of individual experts.

A) cognitive dissonance B) creative commons C) collective intelligence D) consensus democracy E) preference elicitation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 56) An electronic ________ is essentially a collection of personal computers networked together with sophisticated software tools to help group members solve problems and make decisions through interactive electronic idea generation, evaluation, and voting.

A) folksonomy B) fund transfer C) data interchange D) meeting system E) tag cloud Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

14

57) ________ is the process of creating an online text diary made up of chronological entries that comment on everything from one's everyday life to wine and food, or even computer problems.

A) Crowdsourcing B) Keylogging C) Pharming D) Phishing E) Blogging Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 58) Which of the following Web 2.0 applications has been classified by noted technology journalist Nicholas Carr as the "amateurization" of journalism?

A) blogs B) discussion forums C) message boards D) instant messaging E) chat rooms Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 59) People who maintain blogs are called ________.

A) analysts B) testers C) developers D) readers E) bloggers Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

15

60) When a company tries to attract Web traffic by posting incomplete or tantalizing headlines it is using ________.

A) a link to their website B) a link to a similar article C) clickbait D) an intelligent search engine E) a Web indicator Answer: C AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 61) Which of the following facilitate(s) real-time written conversations?

A) instant messaging B) discussion forums C) status updates D) blogging E) tagging Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 62) ________ is a cooperative social media application making use of the network effect.

A) Media sharing B) Rich site summary C) Media tagging D) Instant messaging E) A discussion forum Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

16

63) ________ is the distribution of digital media, such as audio or video files, via syndication feeds for on-demand playback on digital media players.

A) Narrowcasting B) Crowdsourcing C) Blogging D) Webcasting E) Phishing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 64) The term "podcasting" is a misnomer because podcasts ________.

A) are concerned with the dissemination of information to a narrow audience B) cannot be played on Apple's iPods C) are not related to distribution of digital media for digital devices D) are concerned with outsourcing tasks to a large group of people or community E) can be played on a variety of devices in addition to Apple's iPods Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 65) Which of the following statements is true about a Real Simple Syndication (RSS) feed?

A) It is used to increase brand awareness through the network effect.

B) It is used to disseminate information to a narrow audience.

C) It is used to market the product without the audience realizing it.

D) It is used to enable people to work on a variety of Internet related projects in more flexible ways.

E) It is used to access the most current blogs, podcasts, videos, and news stories.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

17

66) Social bookmarking allows users to share Internet bookmarks and to create categorization systems. These categorization systems are referred to as ________.

A) tag clouds B) podcasts C) folksonomies D) geospatial metadata E) microblogs Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 67) Which of the following statements is true about social bookmarking?

A) It is the distribution of digital media.

B) It allows podcasters to publish and push current shows to the viewers or listeners.

C) It allows people to communicate using avatars.

D) It allows users to create folksonomies.

E) It allows users to post short "status updates."

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 68) ________ is the creation of a categorization system by users.

A) Social cataloging B) Podcasting C) Social blogging D) Webcasting E) Crowdsourcing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

18

69) ________ refers to manually adding metadata to media or other content.

A) Phishing B) Tagging C) Crowdsourcing D) Podcasting E) Netcasting Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 70) ________ is data about data.

A) Multi data B) Data house C) Metadata D) Data system E) Pointer data Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 71) ________ can be used to visualize user-generated content on a site.

A) Crowdsourcing B) Tag clouds C) Phishing D) Podcasts E) Pharming Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

19

72) Which of the following statements is a use of geotagging?

A) to use avatars while chatting online B) to create categorization systems for social cataloging C) to know the location of a person sending out a breaking news update on Twitter D) to create folksonomies for social bookmarking E) to use syndicated feeds while sharing media Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 73) Cloud-based collaboration tools ________.

A) allow for easy transferability of documents from one person to another B) have well-documented procedures for system complexities C) reduce the risk of exposing sensitive corporate data D) require users to frequently upgrade their software E) are complex and time-consuming Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 74) The WhatsApp application was created in 2009, and has quickly risen to broad popularity.

WhatsApp is a(n) ________ application.

A) blogging B) social networking C) instant messaging D) microblogging E) e-commerce Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

20

75) ________ is an example of an online office suite comprised of a spreadsheet application, a word processor, and a presentation application.

A) Google Mail B) Google Talk C) Google Maps D) Google Calendar E) Google Docs Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 76) Twitter is a(n) ________.

A) microblog B) retail Web site C) advertising Web site D) e-commerce site E) online store Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 77) A(n) ________ system allows users to publish, edit, version track, and retrieve digital content, such as documents, images, audio files, videos, or anything else that can be digitized.

A) social presence B) collective intelligence C) application sharing D) content management E) peer production Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

21

78) WordPress is a(n) ________.

A) social networking Web site B) microblog C) content management system D) instant messaging application E) e-commerce Web site Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 79) ________ is the creation of goods or services by self-organizing communities.

A) Peer production B) A folksonomy C) A journal D) Groupware E) Crowdsourcing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 80) Which of the following statements is true about peer production?

A) The creator is responsible for publishing new information.

B) Only editors have the right to develop new content.

C) It is also known as an enterprise content system.

D) Anyone can help in producing or improving the final outcome.

E) A guest is a person who can only view the digital information.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

22

81) Which of the following occurs during wiki wars?

A) Editors do not agree with the creators of the content.

B) Editors agree with the creators of the content.

C) Administrators refuse to publish a creator's content.

D) Guests edit a creator's content without permission.

E) Contributors continuously edit or delete each other's posts.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 82) ________ is a phenomenon in which companies use everyday people as a cheap labor force.

A) Nearshoring B) Phishing C) Crowdsourcing D) Narrowcasting E) Pharming Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 83) Amazon.com took crowdsourcing mainstream with its micro-task marketplace called ________.

A) Mechanical Turk B) Citizen Science C) Smart Mob D) Click Workers E) Crowd Fixing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

23

84) ________ refers to the process of integrating external stakeholders into the innovation process.

A) Nearshoring B) Open innovation C) Media sharing D) Crowdsourcing E) Social cataloging Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 85) ________ sites create social online communities where individuals with a broad and diverse set of interests meet and collaborate.

A) Crowdsourcing B) Social cataloging C) Social networking D) Social bookmarking E) Media sharing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 86) ________ attempts to increase the relevance of search results by including content from blogs and microblogging services.

A) Social search B) OpenSearch C) Enterprise search D) Metasearch E) Netsearch Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

24

87) Which of the following statements is true about viral marketing?

A) It uses the network effect to increase brand awareness.

B) It uses everyday people as a cheap labor force.

C) It is the dissemination of information to a narrow audience.

D) It enables people to work on a variety of Internet related projects in more flexible ways.

E) It is used to market a product without the audience realizing it.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 88) According to Thomas Baekdal, which of the following is a critical factor for the success of a viral marketing campaign?

A) restricting access to viral content B) doing what the audience expects C) making sequels D) restricting easy distribution E) distributing products for free Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 89) The term ________ was coined by Harvard business professor Jeffrey Rayport to describe how good business techniques can be driven by word-of-mouth or person-to-person communication.

A) viral marketing B) e-business C) stealth market D) affiliate business E) blog marketing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

25

90) Potential pitfalls of social media and the enterprise include ________.

A) microblogging, social networks, and social dynamics B) lessons learned, societal impacts of social media, and social dynamics C) online product reviews, microblogging, and bad vibes going viral D) microblogging, lessons learned, and a Web indicator E) a Web indicator, online product reviews, and social networks Answer: C AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 5.4: Describe how companies can manage enterprise-oriented social media applications and deal with potential pitfalls associated with social media.

Classification: Concept 91) Which of the following conditions is essential for successful Enterprise 2.0 implementation?

A) Enterprise 2.0 should avoid involvement of senior management members of an organization.

B) Enterprise 2.0 should be driven by a specific usage context.

C) Enterprise 2.0 should appeal to future end users of the application and not the organization's members.

D) Enterprise 2.0 should be independent of the organization's workforce.

E) Enterprise 2.0 should be independent of the organization's culture.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 5.4: Describe how companies can manage enterprise-oriented social media applications and deal with potential pitfalls associated with social media.

Classification: Concept 92) What are the key dimensions along which groupware and other collaboration tools are distinguished?

Answer: Groupware and other collaboration technologies are often distinguished along two key dimensions: 1. Whether the system supports groups working together at the same time (synchronous groupware) or at different times (asynchronous groupware).

2. Whether the system supports groups working together, face-to-face, or distributed.

AACSB: Information technology Difficulty: Easy Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept

26

93) Write a note on electronic meeting systems.

Answer: A category of groupware which focuses on helping groups have better meetings is commonly referred to as electronic meeting systems (EMSs). An EMS is essentially a collection of personal computers networked together with sophisticated software tools to help group members solve problems and make decisions through interactive electronic idea generation, evaluation, and voting. EMSs have traditionally been housed within a dedicated meeting facility; increasingly, Web-based implementations support team members around the globe.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 94) Briefly describe desktop videoconferencing.

Answer: Desktop videoconferencing has been enabled by the growing power of processors powering personal computers and faster Internet connections. A desktop videoconferencing system usually comprises a fast, personal computer, a webcam (i.e., a small video camera that is connected directly to a PC), a speaker telephone or separate microphone, videoconferencing software (e.g., Skype, Google+, Yahoo! Messenger, or Windows Live Messenger), and a highspeed Internet connection. Similarly, people can now use apps such as FaceTime, FriendCaller, or Skype on their mobile devices, enabling them to make video calls on the go.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.1: Explain organizations' needs for communication and collaboration.

Classification: Concept 95) Explain the concept of collective intelligence with examples.

Answer: One major benefit of social software is the ability to harness the "wisdom of crowds," or collective intelligence. The concept of collective intelligence is based on the notion that distributed groups of people with a divergent range of information and expertise will be able to outperform the capabilities of individual experts. This is demonstrated by the online encyclopedia Wikipedia, which is entirely based on its users' contributions. Likewise, open source software is another example of the power of collective intelligence. High-quality software such as the Firefox Web browser, the Linux operating system, or the OpenOffice productivity suite are created by thousands of volunteers located all over the world. For organizations, making effective use of the collective intelligence of their employees, customers, and other stakeholders can prove extremely valuable. In addition to the benefits of harnessing the wisdom of crowds, societal changes (brought about by globalization, increasing wealth and consumerism, and the Web) are increasingly changing the way in which organizations interact with internal and external stakeholders.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

27

96) What are the critical factors in viral marketing as listing by Thomas Baekdal?

Answer: The critical factors include: do something unexpected; make people feel something, make sequels, allow sharing and easy distribution, and never restrict access to the viral content.

AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 97) Briefly describe social bookmarking.

Answer: For many Web surfers, key challenges are finding information and finding it again at a later time; hence, people often keep long lists of bookmarks to sites they find interesting or visit frequently. Although this is useful for an individual, he or she may miss a plethora of other, related, and potentially interesting Web sites. Social bookmarking helps to address this by allowing users to share Internet bookmarks and to create categorization systems (referred to as folksonomies). As more people participate in social bookmarking, the value for each user grows as the bookmarks become more complete and more relevant to each user. Widely used public social bookmarking tools include reddit and Delicious. For organizations, social bookmarking can be extremely valuable for knowledge management and harnessing the collective intelligence of employees. Using enterprise-oriented social bookmarking tools, it is easy to map "islands" of knowledge within an organization, thus helping to easily find experts on a given topic.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 98) How is the concept of tagging related to social cataloging?

Answer: Social cataloging is the creation of a categorization system by users. Contributors build up catalogs regarding specific topics such as academic citations, wireless networks, books and music, and so on. Closely related to social cataloging is tagging, or manually adding metadata to media or other content. Whereas certain metadata about documents or media files is captured automatically, there are various other important pieces of information that are not automatically captured, such as the topic of a document or the names of people in a picture.

Tagging is the process of adding such metadata to pieces of information. Tags are commonly added to pictures and videos on Web sites.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept

28

99) Define viral marketing. Mention some of the forms that can be taken by viral marketing.

Answer: Viral marketing is using the network effect to increase brand awareness. The term viral marketing was coined by Harvard business professor Jeffrey Rayport to describe how good marketing techniques can be driven by word-of-mouth or person-to-person communication, similar to how real viruses are transmitted through offline social networks. Rather than creating traditional banner ads or sending out massive amounts of spam, businesses create advertisements in a way that entices the viewers to share the message with their friends through e-mail or social networks so that the message will spread like a virus. Viral marketing can take many forms, such as video clips, e-books, flash games, and even text messages.

AACSB: Information technology Difficulty: Moderate Learning Objective: 5.3: Describe various social media applications, and explain their role in enhancing communication, collaboration, cooperation, and connection.

Classification: Concept 100) Discuss three of the downsides and dangers of using social media applications.

Answer: Online Product Reviews: Before making a key purchase, many buyers will look at product reviews online. The problem here is that these reviews may be biased, created by the companies themselves or be misleading in other ways.

Microblogging: While microblogging can be used carefully, it can also be used in harmful ways.

Social Networks: Maintaining a page on a social network is not free for organizations; thus, they need to take great care to monitor what is happening on the page and take action when necessary.

Bad Vibes Going Viral: Organizations need to make things right with customers when a legitimate complaint is placed. If not, then that customer can post a negative response about that company and it invariably goes viral to thousands of people.

Lessons Learned: Negative publicity can travel quickly; thus, organizations need to act in a positive manner or the consequences can be devastating.

Societal Impacts of Social Media: Social media have provided people with far wider access to information and have democratized content creation. Yet, the downsides can result in many people being able to create content that isn't always positive or correct.

AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 5.4: Describe how companies can manage enterprise-oriented social media applications and deal with potential pitfalls associated with social media.

Classification: Concept

29

101) Explain the organizational issues associated with implementing an Enterprise 2.0 strategy strictly from the perspective of organizational hierarchies, technological inertia, and security concerns.

Answer: Often, Enterprise 2.0 initiatives are driven by user departments, and small-scale pilot implementations appear to work quite well. However, organization-wide Enterprise 2.0 implementations typically need changes in terms of organizational culture and processes and often the flattening of organizational hierarchies. Therefore, to be successful, Enterprise 2.0 implementations need the support and active involvement of senior management to cope with the large magnitude of changes.

One factor hindering the adoption of many new technologies is technological inertia. In many cases, people are not willing to switch to new applications unless they see real, tangible benefits.

This can be especially a hindrance with social media applications, many of which incorporate a variety of other tools.

A final issue is related to security and intellectual property. For organizations, securing their information systems infrastructure is of paramount concern. Any application that allows closer collaboration by increasing data sharing will necessarily incur greater risks of security breaches.

Companies thus have to balance their desire for enhancing collaboration with the need to protect intellectual property and comply with rules and regulations such as the Sarbanes-Oxley Act. AACSB: Information technology Difficulty: Moderate Learning Objective: 5.4: Describe how companies can manage enterprise-oriented social media applications and deal with potential pitfalls associated with social media.

Classification: Concept

30

Information Systems Today, 9e (Valacich) Chapter 6 Enhancing Business Intelligence Using Big Data, Analytics, and Artificial Intelligence 1) The business processes outlined within strategic plans are often implemented as envisioned at the managerial and operational levels of the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 2) Data-driven organizations make decisions that can be backed up with verifiable data and are measurably more profitable than those that aren't.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 3) The structure of data is typically captured in a data model.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 4) Data dictionaries restrict business rules.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 5) Structured Query Language is the most common language used to interface with relational database management systems (RDBMSs).

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 1

6) The primary use of online transaction processing (OLTP) systems is to define a set of reachable and exploitable vulnerabilities present in a database.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 7) In a distributed online environment, performing real-time analytical processing enhances the performance of transaction processing.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 8) Master data management is a management rather than a technology-focused issue.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 9) Systems designed to support decision making based on stable point-in-time or historical data are called information systems.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 10) Ad hoc queries are always saved because they need to be executed on a regular basis.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

2

11) Visual analytics is also known as visual data discovery.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 12) Data mining algorithms search for patterns, trends, or rules that are hidden in the data.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 13) Sequence discovery is used to list procedures to follow when handling a security breach.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 14) A decision support system (DSS) uses models to manipulate data.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 15) Business analytics augments business intelligence by using predictive analysis to help identify trends or predict business outcomes.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 16) Destructive agents are malicious agents designed by users to attack harmful viruses when they appear on an organization's system.

Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

3

17) An intelligent agent is also referred to as a bot.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 18) Data mining agents are also known as shopping bots.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 19) Knowledge portals can be customized to meet the unique needs of their intended users.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 20) By combining human intelligence and reasoning capabilities with technology's retrieval and analysis capabilities, visual analytics can help in decision making.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 21) Which of the following statements is true about business intelligence?

A) It is an act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community, through the use of information technology.

B) It is the process by which a customer-owned mutual organization or cooperative changes legal form to a joint stock company.

C) It is the use of information systems to gather and analyze information from internal and external sources in order to make better business decisions.

D) It is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

E) It is the use of human resources to gather and analyze information from external sources in order to make better business decisions.

Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 4

22) "Backward looking" budgets are typically based on ________.

A) forecasts B) marketing research C) future trends D) historical data E) current market conditions Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 23) Responding to threats and opportunities and continuous planning are based on analyzing internal data primarily from the ________ level of an organization.

A) operational B) executive C) tactical D) business E) strategic Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 24) When we consider entities as tables, each row is a ________.

A) field B) record C) bot D) form E) query Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

5

25) When we consider entities as tables, each column is a(n) ________.

A) attribute B) record C) form D) applet E) query Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 26) An attribute is also referred to as a ________.

A) form B) record C) field D) query E) bot Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 27) A ________ is a collection of related attributes about a single instance of an entity.

A) bot B) form C) query D) field E) record Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

6

28) In a database management system (DBMS), data are kept separate from the application's programming code. This means that ________.

A) an application cannot be changed without making changes to the database B) an application's programming code needs to be updated continuously to keep up with the database C) an application needs to be changed when the database is changed D) the database does not need to be changed if a change is made to an application E) the database needs to be changed when a change is made to an application Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 29) One of the advantages of a database approach is program-data independence. This means that it is ________.

A) easier to deploy and control data access using a centralized system B) easier to evolve and alter software to changing business needs when data and programs are independent C) a centralized system, thereby making it easier to enforce access restrictions D) a centralized system, thereby making it much easier to enforce standards and rules for data creation, modification, naming, and deletion E) useful for eliminating redundancy, thereby reducing the possibilities of inconsistency Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 30) Identify an advantage when the database approach makes it easier to deploy and control data access.

A) improved data accessibility B) improved data consistency C) improved data quality D) increased security E) improved data sharing Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

7

31) Big Data is ________.

A) structured data which fit neatly into spreadsheets B) semistructured data such as clickstream and sensor data C) unstructured data such as audio and video D) characterized based on its high velocity E) organizational wide data Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 32) Data type helps a database management system (DBMS) to ________.

A) present the data in a useful format B) format data C) allocate storage space D) eliminate data duplication E) retrieve information Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 33) Once the data model is created, the format of the data is documented in a data ________.

A) warehouse B) entry C) mart D) domain E) dictionary Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

8

34) A data dictionary is also known as ________.

A) a data mart B) a data warehouse C) a metadata repository D) ubiquitous computing E) clickstream data Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 35) Business intelligence tools are used by business users to analyze ________ data.

A) both structured and unstructured B) structured C) unstructured D) semi-structured E) operational Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

9

36) Treston, an automobile manufacturer, recently implemented a new database system. It was confident that this system would help enhance the company's internal (employees) and external (customers and channel partners) communication. Treston had planned to pursue a just-in-time inventory system soon after the database system was implemented. After the implementation of the database system, however, Treston realized that the database system was not effective.

Which of the following can be cited as a reason for the failure of Treston's database system?

A) Aerodoungle launched a new version of Enterprise Database Access, which was better than Treston's database system.

B) The maintenance cost of Treston's new database system was less than the one it was previously using.

C) Treston's new database system was not supported by the database system of its suppliers and distributors.

D) Treston's competitors implemented its database a few days prior to Treston's implementation date.

E) Treston had internally trained personnel managing its new database system, thereby keeping costs low.

Answer: C AACSB: Reflective thinking; Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Application 37) Business rules are captured by the designers of a database and included in a data dictionary to ________.

A) organize and sort the data, complete calculations, and allocate storage space B) prevent illegal or illogical entries from entering the database C) eliminate data duplication D) make sure that each table contains only attributes that are related to an entity E) capture the structure of the database Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

10

38) ________ are used to capture data to be added, modified, or deleted from a database.

A) Forms B) Reports C) Queries D) Bots E) Layers Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 39) A(n) ________ is a compilation of data from a database that is organized and produced in printed format.

A) form B) attribute C) field D) entity E) report Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 40) A query is used to ________.

A) organize and sort the data in a database B) allocate storage space for a database C) eliminate data duplication D) retrieve data from a database E) prevent illegal or illogical entries from entering the database Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

11

41) ________ systems are designed to handle multiple concurrent transactions from customers.

A) Online transaction processing B) Product allocation C) Yield optimization management D) Network transaction maximization E) Real utility management Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 42) Systems that are used to interact with customers and run a business in real-time are called ________ systems.

A) tactical B) strategic C) operational D) informational E) executive Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 43) ________ are the data that is deemed most important in the operation of a business.

A) Metadata B) Master data C) Reference data D) Query data E) Tactical data Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

12

44) Which of the following statements is true about an operational system?

A) Its primary purpose is to support managerial decision making.

B) It consists of historical or point-in-time data.

C) Its goal is to enhance ease of access and use.

D) It consists of narrow and simple updates and queries.

E) It is primarily used by managers.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 45) Which of the following statements is true about an information system?

A) Its primary purpose is to run the business on a current basis.

B) It is primarily used by online customers, clerks, salespersons, and administrators.

C) It consists of narrow and simple updates and queries.

D) Its design goal is to enhance performance.

E) Its design goal is to enhance ease of access and use.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 46) ________ integrates data from various operational systems.

A) A data warehouse B) A metadata repository C) Data modeling D) Master data E) Data mining Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

13

47) The purpose of a data warehouse is to ________.

A) standardize the format of data retrieved from different systems B) allow managers to run queries and reports themselves without having to know query languages or the structure of the underlying data C) provide capabilities for discovering hidden predictive relationships in the data D) put key business information into the hands of more decision makers E) increase the complexity of the data to be analyzed Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 48) ________ involves standardizing the format of data retrieved from different systems.

A) Data cleansing B) Data mining C) Digitizing D) Content mining E) Clustering Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 49) A ________ is a data warehouse that is limited in scope.

A) metadata repository B) compound data C) data model D) data entity E) data mart Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

14

50) Which of the following statements is true about a data mart?

A) It standardizes the format of data retrieved from different systems.

B) It contains selected data from a data warehouse.

C) It stores master data only.

D) It is a compilation of data from the database that is organized and produced in printed format.

E) It helps to eliminate data duplication.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 51) Which of the following is NOT a type of report generated by businesses?

A) Scheduled report B) Business report C) Drill-down report D) Key-indicator report E) Exception report Answer: B AACSB: Reflective thinking Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 52) Select the correct statement below.

A) Artificial intelligence is the science of enabling humans to simulate machine thinking.

B) Predictive modeling helps build unexplained models.

C) Machine learning allows systems to learn by imitating humans.

D) Intelligent systems emulate and enhance human capabilities.

E) Intelligent agents (also called 'bots') are used by users to control how programs are opened.

Answer: D AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

15

53) ________ are produced at predefined intervals to support routine decisions.

A) Security reports B) Exception reports C) Drill-down reports D) Scheduled reports E) Key-indicator reports Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 54) Which of the following statements is true about key-indicator reports?

A) They provide a summary of critical information on a recurring schedule.

B) They help analyze why a key indicator is not at an appropriate level or why an exception occurred.

C) They are produced at predefined intervals to support routine decisions.

D) They highlight situations that are out of the normal range.

E) They answer unplanned information requests to support a non-routine decision.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 55) Which of the following statements is true about exception reports?

A) They help analyze why a key indicator is not at an appropriate level or why an exception occurred.

B) They are produced at predefined intervals to support routine decisions.

C) They answer unplanned information requests to support a non-routine decision.

D) They provide a summary of critical information on a recurring schedule.

E) They highlight situations that are out of the normal range.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

16

56) ________ help in analyzing why a key indicator is not at an appropriate level or why an exception occurred.

A) Activity reports B) Exception reports C) Drill-down reports D) Scheduled reports E) Key-indicator reports Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 57) Which of the following statements is true about ad hoc queries?

A) They are produced at predefined intervals to support routine decisions.

B) They provide a summary of critical information on a recurring schedule.

C) They help analyze why a key indicator is not at an appropriate level or why an exception occurred.

D) They answer unplanned information requests to support a non-routine decision.

E) They highlight situations that are out of the normal range.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 58) ________ refers to the process of quickly conducting complex, multidimensional analyses of data stored in a database that is optimized for retrieval.

A) Concept implementation B) Online analytical processing C) Compartmentalization D) Data mining E) Predictive analysis Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

17

59) Online analytical processing tools enable users to ________.

A) discover hidden predictive relationships in the data B) find associations or correlations among sets of items C) analyze different dimensions of data beyond simple data summaries D) group related records together based on having similar values for attributes E) extract textual information from Web documents Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 60) Which of the following statements is true about an online analytical processing server?

A) It is a data structure allowing for multiple dimensions to be added to a traditional twodimensional table.

B) It groups related records together on the basis of having similar values for attributes.

C) It allows you to make hypothetical changes to the data associated with a problem and observe how these changes influence the results.

D) It uses reasoning methods based on knowledge about a specific problem domain in order to provide advice.

E) It understands how data are organized in a database and has special functions for analyzing the data.

Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 61) How do online analytical processing systems improve performance?

A) They pre-aggregate data so that only the subset of the data necessary for the queries is extracted.

B) They use reasoning methods to outline how sensitive information will be handled, stored, transmitted, and destroyed.

C) They make hypothetical changes to the data associated with a problem.

D) They allow for multiple dimensions to be added to a traditional two-dimensional table.

E) They provide capabilities for discovering hidden predictive relationships in the data.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

18

62) In online analytic processing systems, ________ are the values or numbers the user wants to analyze.

A) dimensions B) forms C) measures D) queries E) entities Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 63) In online analytical processing systems, ________ provide a way to summarize the data.

A) forms B) measures C) facts D) records E) dimensions Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 64) Which of the following statements is true about the online analytic processing cube?

A) It allows you to make hypothetical changes to the data associated with a problem and observe how these changes influence the results.

B) It groups related records together on the basis of having similar values for attributes.

C) It understands how data are organized in the database and has special functions for analyzing the data.

D) It is a data structure allowing for multiple dimensions to be added to a traditional twodimensional table.

E) It uses reasoning methods based on knowledge about a specific problem domain in order to provide advice.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

19

65) Data mining complements online analytical processing in that it ________.

A) finds associations or correlations among sets of items B) provides capabilities for discovering hidden predictive relationships in the data C) extracts textual information from Web documents D) groups related records together on the basis of having similar values for attributes E) analyzes different dimensions of data beyond simple data summaries Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 66) ________ can be achieved by rolling up a data cube to the smallest level of aggregation needed, reducing the dimensionality, or dividing continuous measures into discrete intervals.

A) Data cleansing B) Normalization C) Clustering D) Data reduction E) Inferencing Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 67) Which of the following statements is true about association discovery?

A) It is a technique used to find correlations among sets of items.

B) It is the process of grouping related records together on the basis of having similar values for attributes.

C) It is the use of analytical techniques for extracting information from textual documents.

D) It is a type of intelligent system that uses reasoning methods based on knowledge about a specific problem domain in order to provide advice.

E) It makes sure that each table contains only attributes that are related to an entity.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

20

68) ________ is the process of grouping related records together based on having similar values for attributes.

A) Normalization B) Data mining C) Clustering D) Inferencing E) Slicing and dicing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 69) ________ refers to the use of analytical techniques for extracting information from textual documents.

A) Web usage mining B) Text underlining C) Text mining D) Decision making E) Web content mining Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 70) ________ refers to extracting textual information from online documents.

A) Web usage mining B) Web crawling C) Text mining D) Decision making E) Web content mining Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

21

71) Which of the following is used for Web content mining?

A) clustering B) Web underlining C) neural networks D) Web crawler E) data reduction Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 72) ________ is used by organizations to determine patterns in customers' usage data.

A) Web usage mining B) Web crawling C) Text mining D) Decision making E) Web content mining Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 73) Which of the following is a recording of a user's path through a Web site?

A) clustering B) normalization C) slicing and dicing D) clickstream data E) inferencing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 74) ________ is the ability of a page to attract and keep visitors.

A) Normalization B) Freecycling C) Stickiness D) Crowdsourcing E) Showrooming Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 22

75) Business analytics augments business intelligence by using ________ modeling to help identify trends or predict business outcomes.

A) refinement B) threat C) predictive D) multivariate E) decision Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 76) A(n) ________ system is a special purpose information system designed to provide assistance to organizational decision making related to a particular recurring problem.

A) decision support B) intelligent C) expert D) decision generator E) decision level Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 77) Which of the following analyses involves making hypothetical changes to the data associated with a problem and observing how these changes influence the results?

A) predictive analysis B) time-series analysis C) linear regression analysis D) what-if analysis E) multivariate analysis Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

23

78) ________ allows using approximations or subjective values to handle situations where information about a problem is incomplete.

A) Fuzzy logic B) Normalization C) Clustering D) What-if analysis E) Stickiness Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 79) Which of the following statements is true about a neural network?

A) It allows multiple dimensions to be added to a traditional two-dimensional table.

B) It works in the background to provide some service when a specific event occurs.

C) It attempts to approximate the functioning of the human brain and can learn by example.

D) It uses reasoning methods based on knowledge about a specific problem domain in order to provide advice.

E) It helps analyze why a key indicator is not at an appropriate level or why an exception occurred.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 80) Which of the following statements is true about user agents?

A) They are also known as Web spiders.

B) They are agents that search to find the best price for a particular product a user wishes to purchase.

C) They are agents that continuously analyze large data warehouses to detect changes deemed important by a user.

D) They are agents that automatically perform a task for a user.

E) They are agents designed by spammers and other Internet attackers to farm e-mail addresses off Web sites or deposit spyware on machines.

Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

24

81) Which of the following is a role of monitoring and sensing agents?

A) keeping track of key data B) sending a report at the first of the month automatically C) assembling customized news D) analyzing data warehouses to detect changes deemed important by a user E) finding the best price for a particular product a user wants to purchase Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 82) Which of the following is a role of data mining agents?

A) tracking inventory levels B) sending a report at the first of the month automatically C) assembling customized news D) analyzing data warehouses to detect changes deemed important by a user E) finding the best price for a particular product a user wants to purchase Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 83) Which of the following statements is true about an explicit knowledge asset?

A) It reflects the processes and procedures that are located in a person's mind on how to effectively perform a particular task.

B) It reflects a person's ability to effectively solve a problem without external help.

C) It reflects knowledge that can be documented, archived, and codified, often with the help of information systems.

D) It reflects an individual's special knowledge about a new-to-the-world product.

E) It reflects the strategies that can be applied to an enterprise resource planning system.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

25

84) Identify the primary goal for deploying a knowledge management system.

A) identifying how to recognize, generate, store, share, and manage tacit knowledge B) presenting a view of long-term technology integration C) grouping related records together on the basis of having similar values for attributes D) allowing hypothetical changes to the data associated with a problem and having tacit knowledge on how these changes influence the results E) linking Web sites to corporate databases to provide real-time access to personalized information Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 85) Social network analysis is a technique that attempts to ________.

A) analyze large data warehouses to detect changes deemed important by a user B) analyze why a key indicator is not at an appropriate level or why an exception occurred C) discover hidden predictive relationships in the data D) allow hypothetical changes to the data associated with a problem and observe how these changes influence the results E) find groups of people who work together Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 86) ________ refers to the display of complex data relationships using a variety of graphical methods.

A) Normalization B) Visualization C) Clustering D) Inferencing E) Textual mining Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

26

87) Which of the following statements is true about a digital dashboard?

A) It is the combination of various analysis techniques and interactive visualization to solve complex problems.

B) It is used to support push reporting, exception reporting and alerts, and pull reporting usage models.

C) It can visualize features and relationships between features drawn from an underlying geographic database.

D) It is used to combine geographic, demographic, and other data for locating target customers.

E) It is a system for creating, storing, analyzing, and managing geographically referenced information.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 88) Digital dashboards provide the decision makers with a quick overview of key performance indicators and other key operational statistics and trends. This usage model is known as ________ reporting.

A) exception B) pull C) ad hoc D) drill-down E) push Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 89) While using digital dashboards, pull reporting is conducted to ________.

A) alert the user of any items that require immediate attention B) provide the decision makers with a quick overview of key performance indicators C) discover hidden predictive relationships in the data D) analyze the root causes of an exception E) extract textual information from Web documents Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

27

90) The combination of various analysis techniques and interactive visualization to solve complex problems is known as ________.

A) security analysis B) digital analysis C) social network analysis D) concept analytics E) visual analytics Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 91) Which of the following explains the term geocoded?

A) Data is transformed into coordinates.

B) Data is shared on the Internet.

C) Data is used to create Web pages.

D) Data is compared with similar historical data.

E) Data is converted into soft data.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 92) Which of the following statements is true about a GIS? A) A GIS is a system for creating, storing, analyzing, and managing abstract data.

B) A GIS can be used to track user input.

C) A GIS works behind the scenes to create a knowledge management system.

D) A GIS can link the square footage of commercial real estate to its exact location in terms of latitude and longitude.

E) A GIS cannot be used to create a thematic map.

Answer: D AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 6.3: Describe how organizations can enhance decision making by using knowledge management and geographic information systems.

Classification: Concept

28

93) Which of the following statements is true?

A) Explicit knowledge assets reflect knowledge that cannot be documented.

B) Tacit knowledge assets reflect the processes and procedures that are located in a person's mind on how to effectively perform a particular task.

C) A knowledge management system is based on a single technology to codify a database.

D) The successful deployment of a knowledge management system should be linked to numerous business objectives.

E) Knowledge management systems are extremely hard to use especially when entering and retrieving data.

Answer: B AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 6.3: Describe how organizations can enhance decision making by using knowledge management and geographic information systems.

Classification: Concept 94) Write a short note on a continuous planning process and how it is executed.

Answer: In a continuous planning process, organizations continuously monitor and analyze business processes. The results lead to ongoing adjustments to how the organization is managed, but these results are also reflected in ongoing updates to the organizational plans. It is only through timely and accurate business intelligence that continuous planning can be executed.

AACSB: Information technology Difficulty: Easy Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 95) Define a database management system. What is an entity? Differentiate between records and attributes.

Answer: A database management system (DBMS) is a software application with which you create, store, organize, and retrieve data from a single database or several databases. In the DBMS, the individual database is a collection of related attributes about entities.

An entity is something you collect data about, such as people or classes. We often think of entities as tables, where each row is a record and each column is an attribute. This is also referred to as a field. A record is a collection of related attributes about a single instance of an entity.

Each record typically consists of many attributes, which are individual pieces of information.

AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept

29

96) Explain the process of consolidating data from operational systems with other organizational data.

Answer: A crucial process for consolidating data from operational systems with other organizational data–to facilitate the use of data mining techniques to gain the greatest and broadest understanding from the data–is extraction, transformation, and loading.

First, the data need to be extracted from different systems. In the transformation stage, data are being cleansed and manipulated to fit the needs of the analysis. Data cleansing refers to the process of detecting, correcting (e.g., standardizing the format), or removing corrupt or inaccurate data retrieved from different systems. Finally, the transformed data are loaded into the data warehouse and are ready for being used for complex analyses.

AACSB: Information technology Difficulty: Moderate Learning Objective: 6.1: Describe the need for business intelligence and advanced analytics and how databases serve as a foundation for making better business decisions.

Classification: Concept 97) Describe online analytical processing.

Answer: Online analytical processing (OLAP) refers to the process of quickly conducting complex, multidimensional analyses of data stored in a database that is optimized for retrieval, typically using graphical software tools. OLAP tools enable users to analyze different dimensions of data beyond simple data summaries and data aggregations of normal database queries.

The chief component of an OLAP system is the OLAP server, which understands how data is organized in the database and has special functions for analyzing the data. The use of dedicated databases allows for tremendous increases in retrieval speed. OLAP systems pre-aggregate data so that only the subset of the data necessary for the queries is extracted, greatly improving performance.

OLAP systems are designed for efficient retrieval of data and categorize data as measures and dimensions. Measures, sometimes called facts, are the values or numbers the user wants to analyze, such as the sum of sales or the number of orders placed. Dimensions provide a way to summarize the data, such as region, time, or product line. To enable these multidimensional analyses, OLAP arranges the data as so-called cubes. An OLAP cube is a data structure allowing for multiple dimensions to be added to a traditional two-dimensional table. Analyzing the data on subsets of the dimensions is referred to as slicing and dicing.

AACSB: Information technology Difficulty: Difficult Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept

30

98) Differentiate between clustering and classification processes in data mining.

Answer: Clustering is the process of grouping related records together on the basis of having similar values for attributes. For example, an airline may cluster its frequent fliers based on miles flown or the number of flight segments. These results can then be used for targeting certain groups of customers in marketing campaigns.

In contrast, classification is used when the groups ("classes") are known beforehand, and records are segmented into these classes. For example, a bank may have found that there are different classes of customers who differ in their likelihood of defaulting on a loan. All customers can be classified into different risk categories in order to ensure that the bank does not exceed a desired level of risk within its loan portfolio. Typically, classification would use a decision tree to classify the records.

AACSB: Reflective thinking; Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Synthesis 99) Differentiate between buyer agents and Web crawlers.

Answer: Buyer agents search to find the best price for a particular product that a user wishes to purchase. In contrast, Web crawlers are agents that continuously browse the Web for specific information.

AACSB: Information technology Difficulty: Easy Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 100) Distinguish explicit knowledge assets from tacit knowledge assets.

Answer: Explicit knowledge assets reflect knowledge that can be documented, archived, and codified, often with the help of information systems. Explicit knowledge assets reflect much of what is typically stored in a database management system (DBMS).

In contrast, tacit knowledge assets reflect the processes and procedures that are located in a person's mind on how to effectively perform a particular task. Tacit knowledge assets often reflect an organization's best practices–procedures and processes that are widely accepted as being among the most effective and/or efficient.

AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Synthesis

31

101) Describe geographic information systems.

Answer: A geographic information system (GIS) is a system for creating, storing, analyzing, and managing geographically referenced information. A GIS can visualize features and relationships between features drawn from an underlying geographic database that describes the data in geographic terms and attribute data so as to enable inquiry and analysis. Using GIS, analysts can combine geographic, demographic, and other data for locating target customers, finding optimal site locations, or determining the right product mix at different locations.

Additionally, GIS can perform a variety of analyses, such as market share analysis and competitor analysis. GIS provides a user with a blank map of an area. The user can then add information stored in different layers, each resembling a transparency containing different information about an area.

AACSB: Information technology Difficulty: Moderate Learning Objective: 6.2: Explain core concepts of business intelligence and advanced analytics.

Classification: Concept 102) Discuss the benefits and challenges of knowledge management systems.

Answer:

AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 6.3: Describe how organizations can enhance decision making by using knowledge management and geographic information systems.

Classification: Concept

32

Information Systems Today, 9e (Valacich) Chapter 7 Enhancing Business Processes Using Enterprise Information Systems 1) One of the traditional functional areas that companies are organized around is information systems management.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 2) The core business processes common to most business organizations are order-to-cash, procure-to-pay, and make-to-stock.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 3) The order-to-cash process entails subprocesses such as price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 4) In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 5) Systems that focus on the specific needs of individual departments are typically not designed to communicate with other systems in the organization and are therefore referred to as standalone applications.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

1

6) A legacy system is an integrated suite of business applications for virtually every department, process, and industry that allows companies to integrate information across operations on a company-wide basis using one large database.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 7) Rather than storing information in separate places throughout the organization, enterprise systems provide a central repository common to all corporate users.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 8) Internally focused systems coordinate business processes with customers, suppliers, and business partners.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 9) A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS).

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 10) Customer relationship management applications concentrate on the activities involved in promoting and selling products to the customers as well as providing customer service and nourishing long-term relationships.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

2

11) Enterprise resource planning replaces stand-alone applications by providing various modules based on a common database and similar application interfaces that service the entire enterprise rather than portions of it.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 12) The processes associated with buying goods from external vendors are together referred to as the procure-to-pay process.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 13) The make-to-order process uses the pull-based approach.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 14) Enterprise resource planning control refers to the locus of control over the computing systems and data contained in these systems, as well as decision making authority.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 15) There are two major categories of enterprise resource planning (ERP) components–ERP core components and ERP extended components.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

3

16) Enterprise resource planning (ERP) core components support the primary external activities of the organization that deals with suppliers and customers.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 17) Enterprise resource planning extended components support internal operations such as financial management, operations management, and human resource management.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 18) The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept 19) Industry surveys have shown that 50 percent of companies that undertake enterprise system implementations did not realize any benefits.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept 20) Companies that have successfully installed enterprise systems are found to follow a basic set of recommendations related to enterprise system implementations.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept

4

21) Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them?

A) supply chain management B) risk management C) technology management D) communication management E) systems management Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 22) Which of the following is a core business process?

A) time-to-purchase B) make-to-stock C) plan-to-produce D) account-to-report E) hire-to-retire Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 23) Buying a book at Amazon.com illustrates which of the following core business processes?

A) time-to-purchase B) order-to-cash C) plan-to-produce D) account-to-report E) hire-to-retire Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

5

24) Whenever an order is placed with online retailers, the retailers put together the order, ship it, and charge the payment to the customer's credit card. This process of selling a product or service is known as the ________ process.

A) make-to-order B) time-to-market C) order-to-cash D) procure-to-pay E) make-to-stock Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 25) For most businesses, the ________ process entails several subprocesses including creating a customer record, checking the customer's creditworthiness, creating an order, checking and allocating stock, and shipping.

A) order-to-cash B) make-to-order C) procure-to-pay D) make-to-stock E) plan-to-produce Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 26) An online retailer has finished creating a customer record. Identify the retailer's next step in an order-to-cash process.

A) create order B) allocate stock C) pick, pack, and ship D) prepare and send invoice E) check customer's creditworthiness Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

6

27) In the order-to-cash process, checking credit is followed by ________.

A) collecting payment B) creating an order C) allocating stock D) picking, packing, and shipping E) preparing and sending the invoice Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 28) In an order-to-cash process, identify the next step that the online retailer takes after creating an order for a customer.

A) collect payment B) create customer record C) check and allocate stock D) pick, pack, and ship E) prepare and send invoice Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 29) An effective ________ process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications.

A) order-to-cash B) make-to-order C) procure-to-pay D) make-to-stock E) plan-to-produce Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

7

30) Subprocesses of the procure-to-pay process include ________.

A) collecting the payment B) creating customer records C) price and terms negotiations D) creating customer satisfaction E) speeding up the collection process Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 31) The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.

A) make-to-stock B) make-to-order C) order-to-cash D) plan-to-produce E) procure-to-pay Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 32) Which of the following is the first step in the procure-to-pay process?

A) negotiate price and terms B) issue purchase order C) receive goods D) receive invoice E) settle payment Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

8

33) An effective ________ process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders.

A) procure-to-pay B) procure-to-buy C) find-to-buy D) procure-to-sell E) find-to-sell Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 34) In the procure-to-pay process, the negotiation of price and terms is followed by ________.

A) settling the payment B) creating the customer record C) issuing the purchase order D) receiving the goods E) receiving the invoice Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 35) ________ immediately after the purchase order is issued in the procure-to-pay process.

A) Payment is settled B) Price and terms are negotiated C) Credit is checked D) Goods are received E) Invoices are received Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

9

36) Receiving the goods is followed by ________ in the procure-to-pay process.

A) settling the payment B) negotiating the price and terms C) issuing the purchase order D) creating the order E) receiving the invoice Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 37) In the ________ process, goods are produced based on forecasts and are stored in a warehouse, and sales orders are then fulfilled from inventory.

A) configure-to-stock B) make-to-stock C) make-to-order D) engineer-to-order E) assemble-to-order Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 38) The organization waits for an order, allowing the organization to initiate a ________ sequence to move the order through the production process.

A) pushing B) rotating C) working D) pulling E) propelling Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

10

39) In core business processes, which of the following uses a push-based approach?

A) order-to-cash B) procure-to-pay C) production-to-order D) make-to-stock E) make-to-order Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 40) In the ________ process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received.

A) order-to-cash B) procure-to-pay C) make-to-stock D) acquire-to-dispose E) make-to-order Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 41) Which of the following uses a pull-based approach?

A) make-to-order B) make-to-stock C) plan-to-produce D) account-to-report E) acquire-to-dispose Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

11

42) Which of the following goods are typically produced under a make-to-order approach?

A) expensive high-volume goods B) cheap high-volume goods C) very expensive low-volume goods D) mass-produced goods E) goods from external vendors Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 43) Which of the following goods are produced using the make-to-order approach?

A) commercial aircrafts B) air conditioners C) home appliances D) televisions E) refrigerators Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Application 44) ________ activities are performed by the functional areas that process inputs and produce outputs.

A) Base B) Core C) Support D) Extended E) Focus Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

12

45) Which of the following is a core activity according to the value chain model?

A) human resource activities B) technology development C) operations and manufacturing D) administrative activities E) infrastructure activities Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 46) Inbound logistics involves business activities associated with ________.

A) distributing end products within the order-to-cash business process B) creating marketing literature C) communicating with potential and existing customers D) receiving and stocking raw materials, parts, and products E) order processing Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 47) Assembly processes are ________ activities.

A) outbound logistics B) marketing and sale C) customer sales D) administrative and marketing E) operations and manufacturing Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 48) Outbound logistics activities focus on the ________.

A) processing of orders B) distribution of end products within the order-to-cash business process C) pricing of goods and services D) transformation of raw materials into end products E) receiving and stocking of raw materials, parts, and products Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 13

49) ________ focuses on the distribution of end products within the order-to-cash business process.

A) Procure-and-pay process B) Sales and marketing activity C) Make-to-stock process D) Inbound logistics E) Outbound logistics Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 50) Administrative activities focus on the ________.

A) design and development of applications that support the primary business activities B) hardware and software that must be implemented to support the applications that the primary activities use C) business activities associated with employee management D) processes and decision making to orchestrate the day-to-day operations of an organization E) purchasing of goods and services that are required as inputs for the primary activities Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 51) The hardware and software that must be implemented to support the applications that the primary activities use are a part of the ________ activities.

A) human resources B) technology development C) procurement D) inbound logistics E) infrastructure Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

14

52) Human resource activities ________.

A) are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them B) include the design and development of applications that support the primary business activities C) include the purchasing of goods and services that are required as inputs to the primary activities D) integrate the internal applications with suppliers, business partners, and customers E) streamline the organization's internal value chain Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 53) ________ activities encompass all business activities associated with employee management, such as hiring, interview scheduling, payroll, and benefits management.

A) Human resource B) Technology development C) Procurement D) Account E) Architectural Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 54) ________ is a support activity.

A) Outbound logistics B) Operations and manufacturing C) Technology development D) Customer service E) Marketing and sales Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

15

55) Designing and developing applications that support the primary business activities are a part of the ________ activities.

A) operations and manufacturing B) outbound logistics C) technology development D) procurement E) inbound logistics Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 56) A(n) ________ information flow consists of information that is received from another organization.

A) stand-alone B) legacy C) packaged D) upstream E) downstream Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept 57) A ________ information flow relates to the information that is produced by a company and sent along to another organization.

A) stand-alone B) legacy C) packaged D) custom E) downstream Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

16

58) The two most likely benefits realized from utilizing enterprise systems are improvements in ________.

A) improved customer interaction and improved supplier integration B) reduced inventory and reduced operating expenses C) reduced lead times for manufacturing and improved customer interaction D) availability of information and increased interaction throughout the organization E) improved compliance with standards and improved supplier integration Answer: D AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 59) A(n) ________ is an integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using one large database.

A) legacy system B) management information system C) decision support system D) distributed software system E) enterprise system Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 60) An internally focused system helps an organization coordinate with its ________.

A) suppliers B) business partners C) producers D) departments E) customers Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

17

61) A(n) ________ system coordinates business processes with customers, suppliers, and business partners of an organization.

A) internally focused B) legacy C) stand-alone D) intermediary E) externally focused Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 62) A system that communicates across organizational boundaries is also referred to as a(n) ________ system.

A) legacy B) interorganizational C) intraorganizational D) internally focused E) stand-alone Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 63) ________ software are applications written by third-party vendors that are used by many different users and organizations.

A) Packaged B) Custom C) Bespoke D) Personalized E) Tailored Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

18

64) Applications that are designed and developed exclusively for a specific organization are known as ________ software.

A) collaborative B) custom C) groupware D) ready-made application E) packaged Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 65) Customers can purchase ________ software off the shelf to help them with their personal documents and communications.

A) personalized B) tailored C) packaged D) custom E) bespoke Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 66) ________ software is written by third-party vendors to support standardized and repetitive tasks.

A) Packaged B) Unpacked C) Custom D) Practices-based E) Process-based Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

19

67) Identify the software that is cost effective, since the vendor that builds the application spreads out the development costs by selling copies to a large number of users?

A) packaged software B) bespoke software C) adapted software D) corrected software E) custom software Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 68) Which of the following types of software is best suited for tasks that are unique to a particular business?

A) collaborative B) custom C) groupware D) packaged E) ready-made application Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 69) Which of the following statements is true of packaged and custom software?

A) Packaged software are applications that are designed and developed exclusively for a specific organization.

B) The development costs of custom software are much higher than for packaged software because of the time, money, and resources that are required to design, develop, and support them.

C) Packaged software is well suited for tasks that are unique to a particular business.

D) Custom software is cost effective since the vendor that builds the application can spread out development costs through selling to a large number of users.

E) Custom software is highly useful for standardized, repetitive tasks, such as writing a report or preparing a presentation.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

20

70) The features and modules that an enterprise system comes with out of the box are referred to as the ________ version.

A) best-practices B) reengineered C) vanilla D) customized E) modified Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 71) If the ________ version does not support a certain business process, the company may require a customized version.

A) best-practices B) reengineered C) vanilla D) customized E) modified Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 72) ________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost.

A) Business process B) Business activity C) Business service D) Application performance E) Application service Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

21

73) In the 1990s, business process management was known as ________.

A) business systems management B) business process reengineering C) business service reengineering D) application performance management E) application service management Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 74) According to business process management, identify the management's next step after developing a vision for the organization.

A) They should identify the ways in which information systems can be used to improve the various business processes.

B) They should design and implement a prototype of the new processes.

C) They should manage the information technology to be used from a business transaction perspective.

D) They should identify the critical processes that are to be redesigned.

E) They should understand and measure the existing processes as a baseline for future improvements.

Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 75) According to business process management, identify the next step taken by management after identifying the ways in which the information systems can be used.

A) identifying the critical processes that are to be redesigned B) understanding and measuring the existing processes as a baseline for future improvements C) reducing costs and shortening the time it takes to get products to market D) designing and implementing a prototype of the new process E) developing a vision for the organization that specifies the business objectives Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

22

76) How is business process management similar to quality improvement approaches such as total quality management?

A) They are intended to be cross-functional approaches to improve an organization.

B) They focus on radical redesign and drastic improvement of processes.

C) They focus on incremental change of processes.

D) They focus on the activities typically occurring at the operational level of the organization.

E) They focus on providing capabilities for discovering "hidden" predictive relationships while conducting a forecast.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 77) The make-to-stock process is typically used for ________.

A) customizable goods B) commodities C) big-ticket items D) building aircrafts E) building highways Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 78) The ________ process entails the process related to selling goods or services.

A) procure-to-pay B) make-to-order C) order-to-cash D) make-to-stock E) goods-to-market Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

23

79) Applications that integrate business activities across departmental boundaries are often referred to as ________ planning systems.

A) manufacturing resource B) computer-integrated C) capacity requirement D) enterprise resource E) materials requirement Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 80) Which of the following is true regarding enterprise resource planning (ERP)?

A) It stores data in different locations.

B) It is an older version of materials requirement planning.

C) It helped in developing the manufacturing resource planning package.

D) Stand-alone applications are a developed version of ERP. E) It makes the process of sharing information between business activities easier.

Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 81) Components which support employee recruitment, assignment tracking, performance reviews, payroll, and regulatory requirements are called ________ management.

A) human resource B) operations C) financial D) personal E) organizing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

24

82) Components to simplify, standardize, and automate business processes related to inbound and outbound logistics, product development, manufacturing, and sales and service are called ________ management.

A) human resource B) operations C) financial D) personal E) organizing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 83) Components to support accounting, performance management, and corporate governance are called ________ management.

A) human resource B) operations C) financial D) personal E) organizing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 84) Enterprise resource planning (ERP) extended components focus primarily on ________.

A) customer relationship management and product lifecycle management B) product lifecycle management and supply chain management C) customer relationship management and human capital management D) human capital management and supply chain management E) customer relationship management and supply chain management Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

25

85) Which of the following is true regarding the formula for success of an enterprise system?

A) Enterprise systems implementations should include personnel from different departments.

B) The success of an enterprise system depends directly on the support received from middlemanagement.

C) Enterprise systems are simple to understand and implement when compared to stand-alone systems.

D) Using outside consultants tends to complicate the implementation of an enterprise system.

E) Once enterprise systems go live, employees experience an immediate growth in productivity.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept 86) Which of the following is true regarding the formula for success of an enterprise system?

A) cloud-based B) internal-drive C) hard drive D) subsidiary E) in-memory Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept 87) Two-tier ERP strategy can support operations at the corporate level, while providing the needed ________ at the subsidiary level.

A) interoperability and reliability B) reliability and componentization C) flexibility and agility D) interoperability and accessibility E) scalability and manageability Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept

26

88) Briefly explain the order-to-cash process.

Answer: For business organizations, selling products or services are the main way of generating revenue. Many online retailers provide real-time stock information; however, in case an item is out of stock after placing an order, the customer will be notified. If the item is in stock, the customer's order will be put together and shipped, and his credit card will be charged. Together, the processes associated with selling a product or service are referred to as the order-to-cash process. This process can be broken down into multiple subprocesses. For most businesses, the order-to-cash process entails subprocesses such as creating a customer record; checking the customer's creditworthiness; creating an order; checking and allocating stock; picking, packing, and shipping; invoicing; and collecting the payment. Depending on the nature of the transaction, the individual subprocesses and the time in which these are completed can differ considerably.

An ineffective order-to-cash process can have various negative effects for organizations; for example, the manual input of order information often causes errors, as do suboptimal picking and shipping processes. Together, such errors can lead to a high rate of disputes that have to be resolved, ineffective collection processes, and, ultimately, defecting customers. In contrast, an effective order-to-cash process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.1: Explain core business processes that are common in organizations.

Classification: Concept

27

89) Write a short note on the rise of enterprise systems.

Answer: In order to efficiently conduct the core business processes as well as other business processes, the different functional areas within a company need to share data. Businesses have leveraged information systems (IS) to support business processes for decades, beginning with the installation of applications to assist companies with specific business tasks, such as issuing paychecks. As companies began to leverage IS applications, they started out by fulfilling the needs of particular business activities in a particular department within the organization. Such systems that focus on the specific needs of individual departments were not designed to communicate with other systems in the organization and were therefore referred to as standalone applications. Stand-alone applications usually ran on a variety of computing hardware platforms, such as mainframes and midrange computers. However, although departmental systems enabled departments to conduct their daily business activities efficiently and effectively, these systems were not very helpful when people from one part of the firm needed information from another part of the firm. Organizations often purchased proprietary software systems from software vendors; these systems, however, were not designed to share data with other vendors' systems. To utilize data stored in separate applications to facilitate business processes and decision making, information had to be reentered from one system to the next or be consolidated by a third system. To address these challenges, organizations have turned to enterprise-wide information systems. An enterprise-wide information system (or enterprise system) is an integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using one large database. Rather than storing information in separate places throughout the organization, enterprise systems provide a central repository common to all corporate users.

This, along with a common user interface, allows personnel to share information seamlessly, no matter where the user is located or who is using the application.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

28

90) Define internally focused systems and externally focused systems.

Answer: Information systems (IS) can be used to gain and sustain competitive advantage by supporting and/or streamlining activities along the value chain. IS can be used to support either internally or externally focused business processes.

Internally focused systems support functional areas, business processes, and decision making within an organization. These activities can be viewed as a series of links in a chain along which information flows within the organization. At each stage in the process, value is added in the form of the work performed by people associated with that process, and new, useful information is generated. Information begins to accumulate at the point of entry and flows through the various links, or business processes, within the organization, progressing through the organization with new, useful information being added every step of the way.

In contrast, externally focused systems coordinate business processes with customers, suppliers, business partners, and others who operate outside organizational boundaries. A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS). The key purpose of an IOS is to streamline the flow of information from one company's operations to another's (e.g., from a company to its potential or existing customers).

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept

29

91) Why do organizations need integrated enterprise systems?

Answer: Companies can gain several advantages by integrating and converting stand-alone systems, so that information stored on separate computing platforms can be consolidated to provide a centralized point of access–which typically comes in the form of enterprise resource planning applications. Although such applications do an excellent job of serving the needs of internal business operations on an organization-wide basis, they are not necessarily designed to completely accommodate the communication of information outside the organization's boundaries.

Systems that facilitate interorganizational communications focus on the upstream and downstream information flows. Since these systems coordinate business activities across organizational boundaries, they are classified as externally focused applications. Customer relationship management applications concentrate on the activities involved in promoting and selling products to the customers as well as providing customer service and nourishing long-term relationships. In contrast, supply chain management applications integrate the value chains of business partners within a supply chain, improving the coordination of suppliers, product or service production, and distribution. Integrated enterprise systems can be extremely valuable for companies operating in global markets. Most large enterprise systems vendors offer a suite of integrated core business applications that combine internally focused and externally focused applications.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Concept 92) Compare and contrast business process management and total quality management.

Answer: Business process management (BPM) is similar to quality improvement approaches such as total quality management in that they are intended to be cross-functional approaches to improve an organization. BPM differs from these quality improvement approaches, however, in one fundamental way. These quality improvement approaches tend to focus on incremental change and gradual improvement of processes, while the intention behind BPM is radical redesign and drastic improvement of processes.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.2: Describe what enterprise systems are and how they have evolved.

Classification: Synthesis

30

93) Briefly explain the procure-to-pay process.

Answer: Online retailers need to manage suppliers, place purchase orders, receive the products, allocate warehouse space, receive and pay invoices, and handle potential disputes. These processes associated with procuring goods from external vendors are together referred to as the procure-to-pay process. Subprocesses of the procure-to-pay process include price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice. An ineffective procure-to-pay process can increase error rates in purchase order and invoice processing; further, it inhibits a company from developing close relationships with preferred vendors. Together, this can increase the cost per transaction, lead to an increase in disputes to be resolved, and prohibit the company from obtaining the most favorable conditions from its vendors. In contrast, an effective procure-to-pay process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 94) Write a short note on the make-to-stock and make-to-order process.

Answer: In the make-to-stock process, goods are produced based on forecasts and are stocked in a warehouse (i.e., a push-based approach); sales orders are then fulfilled from inventory. In contrast, in the make-to-order process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received (a pull-based approach); in extreme cases, even design and engineering start only when an order is received. For example, mass-produced goods, such as television sets or home appliances, are typically produced under a make-to-stock approach. Here, the organization holds these stocked products, pushing the order out to customers after it is received. Alternatively, highly customizable or very expensive low-volume goods are often produced under a make-toorder approach, as is the case with Dell computers or with commercial aircraft, where the assembly starts only after the customer places his order. Here, the organization waits for an order, allowing it to initiate a pulling sequence to move the order through the production process.

The processes associated with making products are comprised of processing sales orders, procuring the inputs to the manufacturing process, scheduling production, production, quality control, packaging, and stocking or shipping the product.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

31

95) Briefly explain enterprise resource planning (ERP) control.

Answer: Enterprise resource planning (ERP) control refers to the locus of control over the computing systems and data contained in these systems, as well as decision-making authority.

Companies either opt for centralized control or allow particular business units to govern themselves. In the context of ERP, these decisions are based on the level of detail in the information that must be provided to management. Some corporations want to have as much detail as possible made available at the executive level, whereas other companies do not require such access. For instance, an accountant in one company may want the ability to view costs down to the level of individual transactions, while an accountant in another company may want only summary information. Another area related to control involves the consistency of policies and procedures. Some companies prefer that policies and procedures remain consistent throughout an organization. Other companies want to allow each business unit to develop its own policies and procedures to accommodate the unique ways that they do business. ERP applications vary widely in their allowance for control, typically assuming either a corporate or a business-unit locus of control. Some ERP applications allow users to select or customize the locus of control. In either case, management must consider the ERP's stance on control to ensure that it will meet the business requirements of the company.

AACSB: Information technology Difficulty: Easy Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept 96) Briefly explain enterprise resource planning core components.

Answer: Enterprise resource planning (ERP) core components support the important internal activities of the organization for producing their products and services. These components support the following internal operations: 1. Financial Management. Components to support accounting, financial reporting, performance management, and corporate governance.

2. Operations Management. Components to simplify, standardize, and automate business processes related to inbound and outbound logistics, product development, manufacturing, and sales and service.

3. Human Resource Management. Components to support employee recruitment, assignment tracking, performance reviews, payroll, and regulatory requirements.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.3: Describe enterprise resource planning systems and how they help to improve internal business processes.

Classification: Concept

32

97) How does securing executive sponsorship contribute to an enterprise resource planning's success?

Answer: The primary reason that enterprise system implementations fail is believed to be a direct result of the lack of top-level management support. Although executives do not necessarily need to make decisions concerning the enterprise system, it is critical that they buy into the decisions made by project managers. Many problems can arise if projects fail to grab the attention of top-level management. In most companies, executives have the ultimate authority regarding the availability and distribution of resources within the organization. If executives do not understand the importance of the enterprise system, this will likely result in delays or stoppages because the necessary resources may not be available when they are needed.

A second problem that may arise deals with top-level management's ability to authorize changes in the way the company does business. When business processes need to be changed to incorporate best practices, these modifications need to be completed. Otherwise, the company will have a piece of software on its hands that does not fit the way people accomplish their business tasks. Lack of executive sponsorship can also have a trickle-down effect within the organization. If users and mid-level management perceive the enterprise system to be unimportant, they are not likely to view it as a priority. Enterprise systems require a concentrated effort, and executive sponsorship can propel or stifle the implementation. Executive management can obliterate any obstacles that arise.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept 98) How does getting help from outside experts contribute to an enterprise's resource planning success?

Answer: Enterprise systems are complex. Even the most talented IS departments can struggle in coming to grips with ERP, customer relationship management, and supply chain management applications. Most vendors have trained project managers and experienced consultants to assist companies with installing enterprise systems. Using consultants tends to move companies through the implementation more quickly and tends to help companies train their personnel on the applications more effectively. However, companies should not rely too heavily on support from the vendors and should also draw on external consultants to help define the functionality before selecting a vendor. In addition, the company should also plan for the consultants' leaving once the implementation is complete. When consultants are physically present, company personnel tend to rely on them for assistance. Once the application goes live and the consultants are no longer there, users have to do the job themselves. A key focus should, therefore, be facilitating user learning.

AACSB: Information technology Difficulty: Moderate Learning Objective: 7.4: Understand and utilize the keys to successfully implementing enterprise systems.

Classification: Concept

33

Information Systems Today, 9e (Valacich) Chapter 8 Strengthening Business-to-Business Relationships via Supply Chain and Customer Relationship Management 1) The flow of materials from suppliers to customers can be described as a supply network.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 2) Electronic Data Interchange (EDI) refers to computer-computer communication without any human intervention.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 3) Production scheduling leads to the development of a sourcing plan.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 4) Just-in-time is a business model in which the suppliers manage the manufacturer's inventory based on pre-established service levels.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 5) One major problem affecting supply chains are ripple effects referred to as the multiplier effect.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 1

6) Supply chain management improves the coordination of suppliers, product or service production, and distribution.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 7) Supply chain management is primarily used to optimize business processes within the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 8) The efficiency of a supply chain management (SCM) system is independent of the data entered into it.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 9) Supply chain execution involves the development of various resource plans to support the efficient and effective production of goods and services.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 10) Supply chain efficiency is the extent to which a company's supply chain is focusing on maximizing customer service regardless of procurement, production, and transportation costs.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

2

11) Supply chain effectiveness is the extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs, sometimes by sacrificing excellent customer service.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 12) Supply chain management systems allow for making trade-offs between efficiency and effectiveness for individual components or raw materials.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 13) The only drawback of Extensible Markup Language (XML) is that it is not customizable.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 14) One of the most significant advances in manufacturing has been the use of just-in-time (JIT) approaches.

Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 15) Customer relationship management systems collect data that can be mined to discover the next product line extension that consumers covet.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

3

16) Rather than engaging in conversations with their customers, organizations need to start seeing customers as an audience.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 17) Customer relationship management applications are commonly integrated with a comprehensive enterprise resource planning implementation to leverage internal and external information to better serve customers.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 18) Customer relationship management allows organizations to focus on driving revenue as well as on reducing costs, as opposed to emphasizing only cost cutting.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 19) Operational customer relationship management system refers to the systems used for providing effective and efficient communication with the customer from the entire organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

4

20) In an operational customer relationship management (CRM), marketing, sales, and support personnel see only current interactions with the customer depending on where it occurred within the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 21) Customer service and support, the second component of an operational customer relationship management (CRM), refers to systems that support the day-to-day sales activities of an organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 22) Sales force automation improves the effectiveness of the marketing function by providing an improved understanding of market conditions, competitors, and products.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 23) Using enterprise marketing management (EMM) tools can help integrate various promotional campaigns such that the right messages are sent to the right people through the right channels.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

5

24) Analytical customer relationship management (CRM) analyzes customer behavior and thus provides the business intelligence necessary to identify new opportunities and to provide superior customer service.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 25) Key technologies within collaborative customer relationship management (CRM) systems include data mining, decision support, and other business intelligence technologies that attempt to create predictive models of various customer attributes.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 26) Social media applications enable customers to quickly share both positive and negative information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 27) A collaborative customer relationship management system supports customer communication and collaboration with the entire organization, thus providing more streamlined customer service with fewer handoffs.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

6

28) Collaborative customer relationship management enhances communication by understanding customer history and current needs.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 29) The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer.

A) supply warehouse B) supply chain C) procurement D) demand chain E) value network Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 30) Which of the following statements about a just-in-time strategy is true?

A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.

B) Companies using this strategy allow suppliers to manage the manufacturer's inventory levels based on pre-established service levels.

C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.

D) Companies using this strategy try to optimize their ordering quantities such that parts or raw materials arrive just when they are needed for production.

E) A manufacturer or retailer using this strategy shares real-time sales data with suppliers who maintain inventory levels based on pre-established agreements.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

7

31) ________ is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on preestablished service levels.

A) Just-in-case manufacturing B) Scan-based trading C) Vendor-managed inventory D) Lean manufacturing E) Just-in-time manufacturing Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 32) Which of the following statements about vendor-managed inventory (VMI) is true?

A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.

B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed.

C) Companies using this strategy try to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.

D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.

E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 33) One major problem affecting supply chains are ripple effects referred to as the ________ effect.

A) backflush B) multiplier C) bullwhip D) incremental E) stockwhip Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

8

34) Computer maker Dell realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a ________ system.

A) scan-based trading B) customer-managed inventory C) just-in-time inventory management D) vendor-managed inventory E) just-in-case inventory management Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 35) Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products. It was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the product and legal damages of over $13 billion. This is an example of ________.

A) a product recall B) lean manufacturing C) production control D) the bullwhip effect E) a green business Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Application

9

36) La Belle Inc. introduced a new line of accessories for teenage girls last season. Following its immense popularity with the targeted group, the company anticipated high sales in the current season and ordered raw materials accordingly. However, the success of the new line turned out to be a fad as the teens soon turned to other products offered by competing brands and La Belle's sales declined. This forecasting error caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had already piled up in anticipation of good sales.

This is an example of ________.

A) the multiplier effect B) hindsight bias C) product recall D) the bullwhip effect E) safety stock planning Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Application 37) Which of the following is the main objective of information systems that focuses on improving supply chains?

A) discouraging vendor-managed inventory systems B) accelerating product development and innovation C) discouraging sustainable production processes D) decentralizing the organizations E) encouraging the bullwhip effect Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 38) Which of the following is the key use of the distribution planning module of supply chain management?

A) to ensure that the materials required for production are available when needed B) to forecast and plan anticipated demand for products C) to optimize the allocation of available supply to meet demand D) to support production processes taking into account capacity and material constraints E) to support receiving, storing, and picking of goods in a warehouse Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 10

39) The key use of the order promising module of supply chain management is to ________.

A) work with partners across the supply network to improve accuracy of demand forecasts, reduce inventory buffers, and improve customer service B) monitor key performance indicators to assess performance across the supply chain C) manage logistics between company locations or from company to customers, taking into account transportation modes and constraints D) assign optimal safety stock and target stock levels in all inventories in the supply network E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 40) The key use of the manufacturing execution module of supply chain management is to ________.

A) forecast and plan anticipated demand for products B) support production processes, taking into account capacity and material constraints C) ensure that the materials required for production are available where needed and when needed D) assign optimal safety stock and target stock levels in all inventories in the supply network E) support receiving, storing, and picking of goods in a warehouse Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 41) ________ involves the development of various resource plans to support the efficient and effective production of goods and services.

A) Requirement planning B) Supply chain analytics C) Requirement execution D) Supply chain networking E) Supply chain planning Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

11

42) Supply chain planning begins with ________.

A) product demand planning and forecasting B) product distribution planning and scheduling C) production scheduling D) inventory planning E) safety stock planning Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 43) Demand planning and estimating leads to the development of the overall ________.

A) sourcing plan B) demand paging C) production plan D) demand forecast E) safety stock plan Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 44) ________ planning focuses on delivering products or services to consumers as well as warehousing, delivering, invoicing, and payment collection.

A) Product demand B) Production C) Distribution D) Safety stock E) Inventory Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

12

45) Distribution planning leads to the development of the overall ________ plan.

A) production B) safety stock C) manufacturing D) transportation E) security Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 46) Production scheduling ________.

A) focuses on the coordination of all activities needed to create the product or service B) focuses on delivering products or services to consumers as well as warehousing C) leads to the development of a sourcing plan D) leads to the development of inventory estimates E) provides immediate communication and feedback to and from customers Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 47) Analytical tools are used to optimally utilize materials, equipment, and labor during the ________ process of supply chain planning.

A) demand forecasting B) production scheduling C) distribution planning D) inventory planning E) safety stock scheduling Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

13

48) Inventory and safety stock planning ________.

A) leads to the development of the overall demand forecast B) focuses on the coordination of all activities needed to create a product or service C) leads to the development of a sourcing plan D) focuses on delivering products or services to consumers as well as warehousing E) leads to the development of a transportation schedule Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 49) In the context of business-to-business marketplaces, the term ________ refer to the markets that comprise of firms operating within a certain industry sector.

A) market segmentations B) share markets C) market paradigms D) horizontal markets E) vertical markets Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 50) Supply chain execution ________.

A) involves the development of a sourcing plan B) refers to the use of key performance indicators to monitor production C) involves the management of product flow, information flow, and financial flow D) refers to the ability to track products as they move through the supply chain E) involves the development of demand forecast Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

14

51) Which of the following statements is true about product flow, a key element of supply chain execution?

A) It refers to the ability of tracking products as they move through the supply chain.

B) It refers to the movement of information along the supply chain, such as order processing and delivery status updates.

C) It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer.

D) It tracks a one-way flow of products from producers to consumers, but cannot process returns or customer refunds.

E) It refers primarily to the movement of financial assets throughout the supply chain.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 52) Which of the following statements is true about information flow, a key element of supply chain execution?

A) A key element of information flow is to foresee external events.

B) Information can only flow up the supply chain.

C) It refers to the use of key performance indicators to monitor performance of the entire supply chain.

D) The key element to the information flow is the complete removal of paper documents.

E) It refers primarily to the movement of financial assets throughout the supply chain.

Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 53) Which of the following key elements of supply chain execution includes information related to payment schedules, consignment, and ownership of products and materials?

A) financial flow B) personnel flow C) information flow D) product flow E) material flow Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

15

54) The ability to track products as they move through the supply chain and to foresee external events is a characteristic of ________.

A) supply chain visibility B) supply chain sustainability C) supply chain analytics D) supply network collaboration E) supply chain risk management Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 55) ________ refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution.

A) Supply chain integration B) Supply chain optimization C) Supply chain strategy D) Supply chain visibility E) Supply chain analytics Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 56) ________ is the extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs.

A) Supply chain analytics B) Supply chain effectiveness C) Supply network collaboration D) Supply chain efficiency E) Supply chain visibility Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

16

57) ________ is the extent to which a company's supply chain is focusing on maximizing customer service with lesser focus on procurement, production, and transportation costs.

A) Supply chain visibility B) Supply chain effectiveness C) Supply chain analytics D) Supply chain efficiency E) Supply network collaboration Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 58) Which of the following is an example of supply chain efficiency?

A) Aubrey Express, a consultancy, focuses on providing superior service to its clients.

B) Fyroff, an automobile manufacturing company, has high spare parts availability.

C) Glassico, a soft drink manufacturing company, introduces a new soft drink flavor.

D) Timeplz, a watch manufacturing company, positions itself as a prestige brand.

E) Xenthix, an electronics company, sources its raw materials in ways that keep its costs low.

Answer: E AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Application 59) ________ is a standard for exchanging structured information over the Web. A) Extensible Markup Language B) JavaScript C) MySQL D) Active Server Pages E) Unified Modeling Language Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

17

60) ________ allow(s) designers of Web documents to create their own customized tags, enabling the definition, transmission, validation, and interpretation of data between applications and between organizations.

A) MySQL B) Active Server Pages C) Extensible Markup Language D) Perl E) Unified Modeling Language Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 61) A(n) ________ is a label that is inserted into an XML document in order to specify how the data contained in the document or a portion of the document should be interpreted and/or used.

A) Extensible Markup Language (XML) tag B) Extensible Markup Language (XML) query C) Extensible Markup Language (XML) Unicode D) Hypertext Markup Language (HTML E) Hypertext Markup Language (HTML) font Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 62) ________ is an XML-based specification for publishing financial information.

A) Extensible Rights Markup Language B) Extensible Application Markup Language C) Extensible Access Control Markup Language D) Extensible Business Reporting Language E) Enterprise Mashup Markup Language Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

18

63) ________ includes tags for data such as annual and quarterly reports, Securities and Exchange Commission filings, general ledger information, and net revenue and accounting schedules.

A) Extensible Application Markup Language B) Extensible Business Reporting Language C) Extensible Access Control Markup Language D) Enterprise Mashup Markup Language E) Extensible Rights Markup Language Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 64) Lee's department store uses the every day low prices strategy. This strategy hinges upon the store's ability to obtain consumer goods at the cheapest possible price and passes these savings on to consumers. Lee's store also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed them to cut out external suppliers and middlemen thereby driving down business costs further. This implies that the competitive strategy used by this store would most likely focus on ________.

A) supply chain efficiency B) supply chain visibility C) supply chain effectiveness D) supply chain sustainability E) supply chain logistics Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Application 65) Comptel, a world leader in computer hardware, differentiates itself from its competitors by providing excellent after-sales service. This implies that the competitive strategy used by Comptel would most likely focus on ________.

A) supply chain analytics B) supply chain visibility C) supply chain effectiveness D) supply network collaboration E) supply chain efficiency Answer: C AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Application 19

66) ________ is the use of electromagnetic energy to transmit information between a reader (transceiver) and a processing device.

A) Radio frequency identification B) High capacity color barcoding C) Interferometric modulator display D) Photonic computing E) Electronic product coding Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 67) ________ are designed to automate the business processes that occur before, during, and after sales transactions between a supplier and multiple customers.

A) Customer portals B) Supplier portals C) B2C portals D) Marketplace portals E) Transaction portals Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 68) Which of the following statements is true about supply chain management (SCM)?

A) SCM systems are used to improve business processes that span organizational boundaries.

B) SCM systems cannot automate the supply chain.

C) SCM systems are often integrated with legacy systems.

D) SCM systems are used by mostly smaller organizations.

E) SCM systems are great standalone systems, but cannot be integrated with an ERP system.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

20

69) Marketing researchers have found the cost of trying to win back customers who have gone elsewhere can be up to ________ times as much as keeping a current one satisfied.

A) 2 B) 10-20 C) 25-40 D) 50-100 E) 150-200 Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 70) According to the book, today's empowered customers can spread information about companies in all the following ways except ________.

A) search engines B) blogs C) price comparison sites D) social networks E) video-sharing sites Answer: E AACSB: Reflective thinking; Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

21

71) Which of the following portrays the improved integration benefit of a customer relationship management (CRM) system?

A) Integrate all information for all points of contact with the customers—marketing, sales, and service—so that all who interact with customers have the same view and understanding of current issues.

B) Improved record keeping and efficient methods of capturing customer complaints help to identify and solve problems faster.

C) Integrated information removes information handoffs, speeding both sales and support processes.

D) Information from the CRM can be integrated with other systems to streamline business processes and gain business intelligence as well as make other cross-functional systems more efficient and effective.

E) Tracking customer behavior over time helps to identify future opportunities for product and service offerings.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 72) Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?

A) to track global spending on suppliers B) to encourage the bullwhip effect C) to develop demand forecasts D) to portray a positive corporate image E) to collaborate demand and production planning Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

22

73) Which of the following portrays the individualized service benefit of a customer relationship management (CRM) system?

A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively B) providing product information, sales status, support information, issue tracking, and so on C) integrating all information for all points of contact with the customers so that all who interact with customers have the same view and understand current issues D) providing integrated information which removes information handoffs, thereby speeding both sales and support processes E) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify and solve problems faster Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 74) Which of the following portrays the improved product development benefit of a customer relationship management (CRM) system?

A) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively B) providing product information, sales status, support information, issue tracking, and so on C) providing integrated information that removes information handoffs, thereby speeding both sales and support processes D) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster E) tracking customer behavior over time that helps to identify future opportunities for product and service offerings Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

23

75) Which of the following examples portrays the 24/7/365 operation of a customer relationship management (CRM) system?

A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on B) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster C) tracking customer behavior over time that helps to identify future opportunities for product and service offerings D) App-based technologies that remove information handoffs, thereby speeding both sales and support processes E) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 76) Which of the following examples explains the improved planning benefit of using a customer relationship management (CRM) system?

A) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster B) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies D) tracking customer behavior over time that helps to identify future opportunities for product and service offerings E) providing integrated information that removes information handoffs, thereby speeding both sales and support processes Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

24

77) ________ customer relationship management (CRM) includes systems used for automating the fundamental business processes and for interacting with a customer.

A) Operational B) Integrated C) Collaborative D) Reflective E) Structured Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 78) ________ customer relationship management (CRM) systems help to create mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history.

A) Structured B) Operational C) Analytical D) Integrated E) Collaborative Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 79) Which of the following is a component of an operational customer relationship management (CRM) system?

A) sales force automation B) data warehouse C) enterprise resource planning system D) data mining and visualization E) business intelligence Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

25

80) Identify a key technology in analytical customer relationship management (CRM) systems.

A) failure effect and mode analysis B) probabilistic risk assessment C) neural networks D) data mining E) cognitive science Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 81) ________ is the first component of an operational customer relationship management system that supports a broad range of business processes, such as tracking and managing customer history and preferences, account and contact management, and order processing and tracking.

A) Enterprise marketing management B) Sales force automation C) Data warehousing D) Execution management E) Customer service and support Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 82) ________ refers to systems that automate requests, complaints, product returns, and information requests.

A) Data warehouse B) Enterprise marketing management C) Customer service and support D) Execution management E) Sales force automation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

26

83) ________ refers to using multiple communication channels to support the communication preferences of users, such as the Web, the company's Facebook page, industry blogs, telephone, and so on.

A) Analytics visualization B) Customer engagement center C) Enterprise application D) Execution engine E) Sales force efficiency Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 84) ________ tools help a company in the execution of the customer relationship management (CRM) strategy by improving the management of promotional campaigns.

A) Business intelligence B) Sales force automation C) Enterprise marketing management D) Customer interaction center E) Execution management Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 85) ________ focuses on studying customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service.

A) Analytical customer relationship management (CRM) B) Sales force automation C) Operational customer relationship management (CRM) D) Collaborative design automation E) Integrated customer relationship management (CRM) Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 27

86) Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer.

A) operational customer relationship management (CRM) B) integrated customer relationship management (CRM) C) analytical customer relationship management (CRM) D) collaborative design automation E) sales force automation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 87) Identify the factors that help in building models of customer demand in an analytical customer relationship management (CRM) system.

A) sales forecasting and performance analyses B) account and contact management C) price, quality, and satisfaction analysis of competitors D) customer history and preferences management E) order processing and tracking Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 88) ________ refers to systems for providing effective and efficient communication with the customer from the entire organization.

A) Analytical customer relationship management (CRM) B) Sales force automation C) Collaborative customer relationship management (CRM) D) Operational customer relationship management (CRM) E) Business intelligence Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

28

89) ________ systems facilitate the sharing of information across the various departments of an organization in order to increase customer satisfaction and loyalty.

A) Collaborative customer relationship management (CRM) B) Data warehousing C) Operational customer relationship management (CRM) D) Analytical customer relationship management (CRM) E) Data mining Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 90) ________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand.

A) Social media monitoring B) Visual analytics C) Digital radiography D) Digital marketing E) Social bookmarking Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

29

91) Briefly describe the concept of portals in the context of supply chain management.

Answer: Portals, in the context of B2B supply chain management, can be defined as access points (or front doors) through which a business partner accesses secured, proprietary information that may be dispersed throughout an organization (typically using extranets). By allowing direct access to critical information needed to conduct business, portals can thus provide substantial productivity gains and cost savings for B2B transactions.

Most companies depend on a steady source of key supplies needed to produce their goods or services. For example, luxury restaurants require their produce to be consistently of high quality; similarly, car manufacturers need steel, paint, or electronic components in the right quantities, at the right quality and price, and at the right time. Thus, most companies seek long-term B2B relationships with a limited number of carefully selected suppliers–rather than one-time deals– and invest considerable efforts in selecting their suppliers or business partners; often, suppliers are assessed not only on product features such as price or quality but also on supplier's characteristics, such as trustworthiness, commitment, or viability. As a result, in contrast to B2C EC, where anyone can set up a customer account with a retailer, the suppliers or customers in B2B transactions are typically pre-screened by the business, and access to the company's extranet will be given depending on the business relationship (typically, after a review of the supplier's or buyer's application). To support different types of business relationships, portals come in two basic forms: supplier portals and customer portals. Supplier portals automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers. On the other end of the spectrum, customer portals automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

B2B marketplaces are typically run by separate entities and connect multiple buyers and multiple suppliers.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

30

92) Compare and contrast the vendor-managed inventory (VMI) model and the traditional inventory model. List the benefits of the VMI model.

Answer: Vendor-managed inventory (VMI) is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on pre-established service levels.

To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data. Under a traditional inventory model, the manufacturer or retailer would manage these inventories themselves, sending out requests for additional items as needed. In contrast, under a VMI model, the manufacturer or retailer shares real-time sales data with the suppliers. The suppliers maintain inventory levels based on pre-established agreements. Such arrangements can help optimize the manufacturer's inventory, both saving costs and minimizing stockout situations (thus enhancing customer satisfaction); the supplier, in turn, benefits from the intense data sharing, which helps produce more accurate forecasts, reduces ordering errors, and helps prioritize the shipment of goods.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 93) Define supply chain planning (SCP) and list the processes that are generally supported by its modules.

Answer: Supply chain planning (SCP) involves the development of various resource plans to support the efficient and effective production of goods and services. Four key processes that are generally supported by SCP modules include: a. Demand planning and forecasting. b. Distribution planning. c. Production scheduling. d. Inventory and safety stock planning.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

31

94) Briefly describe the information flow element of a supply chain.

Answer: Information flow refers to the movement of information along the supply chain, such as order processing and delivery status updates. Information can flow up or down the supply chain as needed. The key element to the information flow is the complete removal of paper documents. Specifically, all information about orders, fulfillment, billing, and consolidation is shared electronically. These paperless information flows save not only paperwork, but also time and money. Additionally, because supply chain management (SCM) systems use a central database to store information, all supply chain partners have access to most current information at all times.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept 95) Explain the importance of supply chain analytics.

Answer: Supply chain analytics refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution. For example, a purchasing manager can identify the suppliers that are frequently unable to meet promised delivery dates. Being able to access key performance metrics can help to identify and remove bottlenecks, such as by switching suppliers, spreading orders over multiple suppliers, expediting shipping for critical goods, and so on.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

32

96) In developing a supply chain strategy, companies have to evaluate the trade-offs between effectiveness and efficiency in different areas. Name and discuss these different areas.

Answer: When developing an SCM strategy, an organization must consider a variety of factors that will affect the effectiveness and efficiency of the supply chain. Supply chain effectiveness is the extent to which a company's supply activities meet the requirements of the external partners involved. In contrast, supply chain efficiency is the extent to which a company optimizes the use of resources in its supply chain activities. Focusing on one or the other can result in excessive costs or in not meeting stakeholders' needs, so companies have to evaluate the trade-offs in different areas, such as procurement, production, and transportation. In other words, the design of the supply chain must consider natural trade-offs between a variety of factors and should match the organization's competitive strategy to offer the greatest benefits. For example, an organization utilizing a low-cost-provider competitive strategy would likely focus on supply chain efficiency. In contrast, an organization pursuing a superior customer service differentiation strategy would focus on supply chain effectiveness.

SCM systems typically allow for making trade-offs between efficiency and effectiveness for individual components or raw materials. For example, if a hurricane is likely to delay the arrival of a key component by sea, the company can perform simulations to evaluate the effect of the delay on production and can assess the feasibility of temporarily switching suppliers, switching modes of transportation (e.g., expediting the shipment via air freight), or substituting the component altogether. In such cases, making changes to the original plans may be costlier, but can help the organization meet promised delivery deadlines, thus maintaining goodwill and avoiding possible contract penalties. On the other hand, companies can dynamically adjust schedules for noncritical components or raw materials so as to minimize costs while still meeting the targets set in the production schedule.

AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 8.1: Describe supply chain management systems and how they help to improve business-to-business processes.

Classification: Concept

33

97) List some of the enterprise-wide changes a successful customer relationship management (CRM) strategy must include.

Answer: Some of the enterprise-wide changes a successful CRM strategy must include are: a. Policies and business processes: Organizational policies and procedures need to reflect a customer-focused culture. b. Customer service: Key metrics for managing the business need to reflect customer-focused measures for quality and satisfaction as well as process changes to enhance the customer experience. c. Employee training: Employees from all areas–marketing, sales, and support–must have a consistent focus that values customer service and satisfaction. d. Data collection, analysis, and sharing: All aspects of the customer experience–such as prospecting, sales, support, and so on–must be tracked, analyzed, and shared to optimize the benefits of the CRM. AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 98) Define the three primary components of a comprehensive customer relationship management (CRM) system.

Answer: A comprehensive CRM system comprises three primary components: a. Operational CRM–includes systems for automating the fundamental business processes like marketing, sales, and support for interacting with the customer. b. Analytical CRM–includes systems for analyzing customer behavior and perceptions (e.g., quality, price, and overall satisfaction) in order to provide business intelligence. c. Collaborative CRM–includes systems for providing effective and efficient communication with the customer from the entire organization.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

34

99) Briefly describe analytical customer relationship management (CRM) systems.

Answer: Analytical CRM focuses on analyzing customer behavior and perceptions in order to provide the business intelligence necessary to identify new opportunities and to provide superior customer service. Organizations that effectively utilize analytical CRM can more easily customize marketing campaigns from the segment level to even the individual customer. Such customized campaigns help to increase cross- or up-selling (i.e., selling more profitable products or identifying popular bundles of products and services tailored to different market segments) as well as retain customers by having accurate, timely, and personalized information. Analytical CRM systems also are used to spot sales trends by ZIP code, state, and region as well as specific target markets within those areas. Key technologies within analytical CRM systems include data mining, decision support, and other business intelligence technologies that attempt to create predictive models of various customer attributes.

AACSB: Information technology Difficulty: Moderate Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept 100) List the ways in which collaborative customer relationship management (CRM) enhances communication.

Answer: Collaborative CRM enhances communication in the following ways: a. Greater customer focus–Understanding customer history and current needs helps to focus the communication on issues important to the customer. b. Lower communication barriers–Customers are more likely to communicate with the organization when personnel have complete information and when they utilize the communication methods and preferences of the customer. c. Increased information integration–All information about the customer as well as all prior and ongoing communication is given to all organizational personnel interacting with the customer; customers can get status updates from any organizational touch point.

AACSB: Information technology Difficulty: Easy Learning Objective: 8.2: Describe customer relationship management systems and how they help to improve the activities involved in promoting and selling products to customers as well as providing customer service and nourishing long-term relationships.

Classification: Concept

35

Information Systems Today, 9e (Valacich) Chapter 9 Developing and Acquiring Information Systems 1) The biggest increases in productivity result from increased system efficiency rather than system effectiveness.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 2) Business case arguments based on faith require hard data based on system costs.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 3) The total cost of ownership is focused on understanding not only the total cost of acquisition, but also all costs associated with ongoing use and maintenance of a system.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 4) Salaries paid to employees are non-recurring costs.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 5) A break-even analysis is a type of cost-benefit analysis to identify at what point tangible benefits equal tangible costs.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

1

6) A net-present-value analysis is an analysis of the relevant cash flow streams associated with the system at the organization's discount rate.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 7) When making the case for an information systems (IS) investment, it is undesirable to translate all potential benefits into monetary terms.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 8) Proxy variables cannot be used to measure changes in terms of their perceived value to the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 9) One method for deciding among different IS investments or when considering alternative designs for a given system is weighted multicriteria analysis.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 10) Traditionally, the most common option for packaged software was commercial off-the-shelf software.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

2

11) The first phase of the systems development lifecycle is systems design.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 12) Requirements collection is the process of gathering and organizing information to understand how a proposed information system should function.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 13) Analysts interview people informed about the operation and issues of the current or proposed system.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 14) In an entity-relationship diagram, each data entity can have only one attribute that describes it.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 15) Data flows represent the movement of data through an organization or within an information system.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

3

16) Processing logic represents the way in which data are transformed.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 17) System conversion is the process of commissioning the current way of doing things and reinstalling the old system in the organization.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 18) Corrective maintenance involves making changes to an information system to evolve its functionality, to accommodate changing business needs, or to migrate it to a different operating environment.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 19) Purchasing an existing system from an outside vendor is referred to as external acquisition.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 20) A request for proposal (RFP) is sent to buyers who might potentially be interested in buying hardware and/or software for the system.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

4

21) Systems benchmarking is the use of standardized performance tests to facilitate comparison between systems.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 22) Public domain software severely restricts access to the source code and does not give users any rights to copy or modify the software.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 23) ________ refers to the process of identifying, quantifying, and presenting the value provided by a system.

A) Making a business case B) Testing a process C) Making a prototype D) Deploying a software product E) Refining a prototype Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

5

24) Which of the following statements best describes the productivity paradox of technology investment?

A) The productivity of any technology is directly proportional to the investment in that technology.

B) While it is easy to quantify the costs associated with developing an information system, it is often difficult to quantify tangible productivity gains from its use.

C) As investment in technology increases, productivity decreases steadily.

D) While it is easy to identify and quantify the intangible benefits of an information system, it is not easy to quantify the tangible benefits.

E) The productivity of an information system is in no way related to the investment in the technology.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 25) System efficiency is the extent to which a system ________.

A) allows firms to reach their operational targets B) allows people to plan tasks that are achievable C) enables people to accomplish goals or tasks well D) enables people to do things faster or at lower cost E) allows employees to reduce the risks associated with tasks Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 26) Which of the following is true of system effectiveness?

A) It is the extent to which a system enables the firm to accomplish goals well.

B) It is the extent to which a system allows a firm to plan its tasks.

C) It is the extent to which a system enables the firm to do things faster, at lower cost.

D) It is the extent to which a system allows a firm to cut operational costs.

E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort.

Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

6

27) A company implemented a new information system two months ago, but it has not resulted in concrete increases in productivity. A similar system has been in place at the company headquarters for the past two years, and this system has resulted in significant, quantifiable benefits. Which of the following reasons is the most likely explanation for the lack of results?

A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.

B) The new system is being used to redistribute market share rather than make the whole market bigger.

C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.

D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.

E) The new system may be beneficial for individual firms, but not for a particular industry or the economy as a whole.

Answer: C AACSB: Reflective thinking; Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application 28) Business case arguments based on ________ focus on beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on.

A) faith B) fear C) facts D) fiction E) fallacy Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

7

29) Business case arguments based on fear are dependent on ________.

A) the belief that implementing the new information system can have significant positive consequences for the firm B) beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on C) data, quantitative analysis, and/or indisputable factors D) the notion that if the system is not implemented, the firm will lose out to the competition or go out of business E) the results of a qualitative analysis of employee responses to the new information system Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 30) Business case arguments based on data, quantitative analysis, and/or indisputable factors are known as arguments based on ________.

A) fads B) faith C) facts D) fear E) fiction Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 31) Which of the following statements is an example of a business case argument based on fear?

A) If we do not implement this system, our competitors could gain a significant advantage over us.

B) This system has the potential to reduce required effort by 40 percent.

C) Using this system will help our employees serve customers more efficiently.

D) The system can help us meet both individual as well as organizational goals.

E) The new system is user-friendly and can be implemented almost immediately.

Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application

8

32) ________ costs are ongoing costs that occur throughout the life of the system.

A) Smart B) Sector C) Fixed D) Recurring E) Non-recurring Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 33) Which of the following is an example of recurring costs associated with an information system?

A) installation charges B) cost of hosting Web servers C) employee salaries D) technology purchases E) cost of system acquisition Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 34) Which of the following is an example of an intangible cost for a system?

A) cost of losing customers B) employee salaries C) cost of installation and maintenance D) cost of employee recruitment and retention E) customer support costs Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

9

35) A company is conducting a cost-benefit analysis for its information system (IS) department.

In this, the salary of an employee is an example of a(n) ________ cost.

A) intangible and tangible B) tangible and recurring C) intangible and recurring D) tangible and non-recurring E) recurring and non-recurring Answer: B AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 36) Which of the following is true for tangible costs?

A) They are recurring costs.

B) They are always non-recurring costs.

C) They are relatively easy to quantify.

D) They are the same as intangible benefits.

E) They are always fixed costs.

Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 37) A company implements a new information system and observes a 5 percent increase in its monthly sales. This is a(n) ________ of the system.

A) intangible benefit B) tangible cost C) tangible benefit D) recurring cost E) non-recurring cost Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application

10

38) "Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n) ________ for the company.

A) recurring cost B) intangible cost C) tangible benefit D) non-recurring cost E) intangible benefit Answer: C AACSB: Analytical thinking Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application 39) Which of the following is an example of an intangible benefit for a firm?

A) lower transport and operational costs B) a significant increase in sales C) a reduction in operational errors D) cost reductions as compared to previous data E) improved customer perceptions of the firm Answer: E AACSB: Analytical thinking Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Application 40) A break-even analysis ________.

A) identifies the point where tangible benefits equal tangible costs B) analyzes the relevant cash flow streams associated with the system at the organization's discount rate C) refers to the discounted sum, or present value, of a stream of costs associated with a project or proposal D) attempts to summarize the overall value of money for a project or proposal E) is the rate of return used by an organization to compute the present value of future cash flows Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

11

41) A method for deciding among different information system (IS) investments or when considering alternative designs for a given system is ________ analysis.

A) transactional B) weighted multicriteria C) finite element D) independent component E) link quality Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 42) ________ are alternative measures of outcomes that help clarify the impact a change will have on the firm.

A) Proxy variables B) Pseudocodes C) Constants D) Prototypes E) Protocols Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept 43) An example of an agile methodology approach is ________.

A) Patch management B) Object VxP Programming C) eXtreme Programming D) SQL Extreme E) Technet Extreme Programming Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

12

44) Which of the following is the main advantage of customizable software over off-the-shelf software?

A) cost effectiveness B) ease of procurement C) problem specificity D) lower risks E) user-friendliness Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 45) The first phase of the systems development life cycle (SDLC) is systems ________.

A) design B) implementation C) analysis D) planning and selection E) operation Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 46) Which of the following is the correct order of phases in the systems development life cycle (SDLC)?

A) analysis, planning, design, implementation B) analysis, design, planning, implementation C) planning, analysis, design, implementation D) design, analysis, planning, implementation E) design, planning, analysis, implementation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

13

47) The term systems development life cycle (SDLC) describes the life of an information system from conception to ________.

A) estimation B) implementation C) verification D) retirement E) development Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 48) Requirements collection takes place during the systems ________ phase of the systems development life cycle (SDLC).

A) design B) implementation C) analysis D) maintenance E) operation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 49) ________ is the process of gathering and organizing information from users, managers, customers, business processes, and documents to understand how a proposed information system should function.

A) Data modeling B) Requirements collection C) Beta testing D) End-user development E) External acquisition Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

14

50) ________ is a group meeting-based process for requirements collection.

A) Joint application design B) Computer-aided design C) Human-computer interface D) Reverse engineering E) Total ownership Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 51) Data ________ represent(s) the movement of data through an organization or within an information system.

A) entities B) flux C) attributes D) flows E) modeling Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 52) ________ represents the way in which data are transformed.

A) Data parallelism B) Processing logic C) Data streaming D) Process control E) Transaction processing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

15

53) Processing logic is often expressed in ________, which is independent of the actual programming language being used.

A) semantics encoding B) prefix code C) source code D) semiotics E) pseudocode Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 54) In an information system, a ________ is the point of contact between a system and users.

A) biointerface B) network interface C) point-to-point link D) human computer interface E) data link Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 55) A ________ is a business document containing some predefined data, often including some areas where additional data can be filled in.

A) form B) script C) sheet D) report E) module Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

16

56) A ________ is a business document containing only predefined data for online viewing or printing.

A) form B) script C) sheet D) report E) module Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 57) The processing and logic operations of an information system refer(s) to the ________.

A) procedures for entering data into a system B) transfer of data across system components C) procedures that transform raw data inputs into new or modified information D) multiple points of contact between a system and its users E) process of transforming the system design into a working computer system Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 58) Software programming and testing takes place during the systems ________ stage of the systems development process.

A) planning B) analysis C) maintenance D) implementation E) design Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

17

59) ________ testing focuses on testing the correctness of individual modules and the integration of multiple modules.

A) Developmental B) Alpha C) Beta D) Destructive E) Security Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 60) ________ testing is testing of the overall system to see whether it meets design requirements.

A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 61) Jason has just made some changes to the information system at a company and wants to check if the system is working correctly. What should Jason do to conduct a beta test of the system?

A) He should ask other programmers to check the modules he changed.

B) He should check to see if the changed components are integrated well into the system.

C) He should ask users of the system to test it using actual data.

D) He should ask the software tester to test if the changed system meets design requirements.

E) He should test the changed modules for correctness.

Answer: C AACSB: Application of knowledge Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Application

18

62) ________ testing involves testing of the capabilities of the system in the user environment with actual data.

A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 63) Developmental testing of an information system is performed by ________.

A) software testers B) actual users C) programmers D) systems analysts E) project managers Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 64) ________ testing is performed by actual users of the system.

A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

19

65) Which of the following can be considered beta testing?

A) A programmer at Linus Systems checks the integration of multiple modules of an information system.

B) Software testers compare the finished system against user requirements to see if it satisfies all necessary criteria.

C) Taro Inc. checks the correctness of the modules in its new information system.

D) System users at URP feed data into a new information system to test its capability.

E) MNP Inc. checks the system to ensure that it meets all the necessary design requirements.

Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Application 66) Programming is the process of ________.

A) transforming the system design into a working computer system B) testing the correctness of individual modules of a system C) testing the integration of multiple modules of a system D) transforming raw data inputs into new or modified information E) gathering and organizing information from users and managers Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 67) ________ is the process of decommissioning the current way of doing things and installing the new system in the organization.

A) Reverse engineering B) System programming C) Adaptive maintenance D) Patch management E) System conversion Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

20

68) Which of the following is true of patch management?

A) It helps in testing the correctness of individual modules and the integration of multiple modules of a system.

B) It helps in the process of transforming the system design into a working computer system.

C) It helps in performing corrective or preventive maintenance for a system.

D) It helps in decommissioning the current system and installing the new system in the organization.

E) It helps to develop system documentation that details the inner workings of the system to ease future maintenance.

Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 69) The final phase of the systems development life cycle is systems ________.

A) design B) implementation C) analysis D) maintenance E) operation Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 70) ________ use the Internet to check the software vendor's Web site for available fixes to problems. The application downloads and installs these in order to fix software flaws.

A) Alpha testing systems B) Proxy variables C) Benchmarking systems D) Patch management systems E) Workarounds Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

21

71) The process of making changes to an information system to repair flaws in design, coding, or implementation is known as ________ maintenance.

A) adaptive B) perfective C) preventive D) corrective E) predictive Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 72) The process of making changes to an information system to evolve its functionality, to accommodate changing business needs, or to migrate it to a different operating environment is known as ________ maintenance.

A) adaptive B) perfective C) preventive D) corrective E) predictive Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 73) ________ maintenance involves making enhancements to improve processing performance or interface usability or adding desired (but not necessarily required) system features (in other words, "bells and whistles").

A) Adaptive B) Perfective C) Preventive D) Corrective E) Predictive Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

22

74) Preventive maintenance of a system involves ________.

A) making changes to an information system to repair flaws in the design B) making enhancements to improve processing performance or interface usability C) making changes to a system to reduce the chance of future system failure D) adding desired, but not necessarily required, system features E) making changes to an information system to accommodate changing business needs Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 75) A company has a five-member team in charge of the development and maintenance of its information systems. An information system is in place, and the team performs routine maintenance to keep it running smoothly. Which of the following scenarios is an example of perfective maintenance?

A) Jason notices a faulty component in the system and modifies the component.

B) Justin works on the system to make the user interface more user-friendly.

C) Sara knows that the company is migrating to a different operating environment next month, and makes changes to the system.

D) Dylan predicts that the company's old system may fail under new demands, and takes steps to avert it.

E) Kiera detects a fault in the coding, which is hampering system performance, and rectifies it.

Answer: B AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Application

23

76) A company has a five-member team in charge of development and maintenance of its information systems. An information system is in place, and the team performs routine maintenance to keep it running smoothly. Which of the following scenarios is an example of adaptive maintenance?

A) Jason notices a faulty component in the system and modifies the component.

B) Justin works on the system to make the user interface more user-friendly.

C) Sara knows that the company is migrating to a new operating environment next month, and makes the appropriate changes to the system.

D) Dylan predicts that the company's old system may fail under new demands, and takes steps to avert it.

E) Kiera detects a fault in the coding, which is hampering system performance, and rectifies it.

Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Application 77) Which of the following is true of prototyping?

A) It is part of the fourth stage of the systems development life cycle.

B) It is synonymous with the adaptive maintenance of a system.

C) It does not consider user requirements for the system.

D) It uses a trial-and-error approach for discovering how a system should operate.

E) It is also known as end-user development.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 78) Which of the following steps takes place in an organization during both in-house systems development and external acquisition?

A) vendor selection B) systems selection C) systems analysis D) development of a request for proposal (RFP) E) proposal evaluation Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

24

79) A company needs a new information system to manage increasing customer orders and changing demands. The company's five-member information system (IS) team is competent and capable of developing a new system, but decides against developing a system in-house. Which of the following, if true, would most weaken the company's decision?

A) The company's preferred vendor is willing to provide a basic information system at a reduced rate.

B) The company's IS team is short-staffed, and is finding it difficult to cope with increased work.

C) The costs of outsourcing systems development are greater than those of adapting an off-theshelf system.

D) The company's IS department has the qualifications to develop the new system.

E) The company's requirements for the new system are very specialized.

Answer: E AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Synthesis 80) Which of the following steps distinguishes external acquisition process from in-house development?

A) systems planning and selection B) systems analysis C) development of a request for proposal D) proposal evaluation E) vendor selection Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Application 81) A ________ is a document that an organization uses to tell vendors what its requirements are and to invite them to provide information about how they might be able to meet those requirements.

A) request letter B) vendor request C) request for proposal D) requirements specification E) demand letter Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 25

82) ________ is the use of standardized performance tests to facilitate comparison between systems.

A) Beta testing B) Systems benchmarking C) Data modeling D) Systems prototyping E) Alpha testing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 83) A company has submitted a request for proposals to a number of vendors. It must now evaluate the proposals it has received. Which of the following methods can it use to compare the different systems?

A) systems benchmarking B) alpha testing C) data modeling D) beta testing E) prototyping Answer: A AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Application 84) ________ licenses are activated as soon as the packaging of the software has been removed.

A) Click-wrap B) Shareware C) Shrink-wrap D) Volume E) Implied Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

26

85) A(n) ________ license refers to a license primarily used for downloaded software that requires computer users to choose "I accept" before installing the software.

A) click- wrap B) shareware C) enterprise D) volume E) implied Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 86) An enterprise license is also known as a(n) ________ license.

A) shrink-wrap B) volume C) click-wrap D) shareware E) implied Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept 87) Which of the following is true of Software as a Service?

A) It is not scalable in response to large increases in demand.

B) It involves fixed monthly and yearly costs for the services.

C) It requires the installation of specialized interfaces at the client end.

D) It allows clients to access services on an as-needed basis.

E) It requires an organization to maintain and develop the software.

Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

27

88) BelAir has developed and run its own information system for the past ten years. However, the company has now decided to outsource its information systems (IS) function to a service provider. Which of the following, if true, will strengthen BelAir's decision?

A) BelAir's IS team developed the existing system from scratch and has ironed out most of the faults over the years.

B) The service provider is highly recommended by its other clients.

C) Most BelAir employees are familiar with the current information system.

D) BelAir has seen a fall in its revenue over the last year.

E) Outsourcing its IS function did not benefit BelAir's competitor, Amis Systems.

Answer: D AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Synthesis 89) Which of the following is an example of a basic relationship between an outsourcing vendor and client?

A) STS Systems usually offers BelAir a discount on every purchase it makes.

B) BelAir sets its system preferences according to STS products.

C) BelAir buys a system from the vendor who offers the cheapest prices.

D) STS has a direct stake in the success of BelAir's performance.

E) STS modifies its product prices according to BelAir's requirements.

Answer: C AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Application

28

90) What is the productivity paradox for technology investments? Explain the possible reasons for the productivity paradox.

Answer: While it is easy to quantify the costs associated with developing an information system, it is often difficult to quantify tangible productivity gains from its use. In many cases, IS expenditures, salaries, and the number of people on the IS staff have all been rising, but results from these investments have often been disappointing. It has been difficult to show that these vast expenditures on technologies have led to productivity gains. Information systems may have increased productivity, but other forces may have simultaneously worked to reduce it, the end results being difficult to identify. Factors such as government regulations, more complex tax codes, stricter financial reporting requirements, and more complex products can all have major impacts on a firm's productivity.

Measurement Problems: In many cases, the benefits of information systems are difficult to pinpoint because firms may be measuring the wrong things. Often, the biggest increases in productivity result from increased system effectiveness (i.e., the extent to which a system enables people and/or the firm to accomplish goals or tasks well). Unfortunately, many business metrics focus on system efficiency (i.e., the extent to which a system enables people and/or the firm to do things faster, at lower cost, or with relatively little time and effort).

Time Lags: A second explanation for why productivity is sometimes difficult to demonstrate for some technology investments is that a significant time lag may occur from when a company makes the investment until that investment is translated into improvement in the bottom line.

Redistribution: A third possible explanation for why IS productivity figures are not always easy to define is that a new type of system may be beneficial for individual firms, but not for a particular industry or the economy as a whole. Particularly in competitive situations, new innovations may be used to redistribute the pieces of the pie rather than making the whole pie bigger. The result for the industry or economy as a whole is a wash–that is, the same number of products is being sold, and the same number of dollars is being spread across all the firms.

Mismanagement: A fourth explanation is that the new system has not been implemented and managed well. Some believe that people often simply build bad systems, implement them poorly, and rely on technology fixes when the organization has problems that require a joint technology/process solution. Rather than increasing outputs or profits, IS investments might merely be a temporary bandage and may serve to mask or even increase organizational slack and inefficiency.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

29

91) Explain the three types of arguments commonly made in the business case for an information system. Give an example for each.

Answer: People make a variety of arguments in their business cases for information systems.

When managers make the business case for an information system, they typically base their arguments on faith, fear, and/or facts.

Business case arguments based on faith: In some situations, arguments based on faith can be the most compelling and can drive the decision to invest in an information system despite the lack of any hard data on system costs, or even in the face of some data that say that the dollar cost for the system will be high. Arguments based on faith often hold that an information system must be implemented in order to achieve the organization's strategy effectively and to gain or sustain a competitive advantage over rivals. Successful business case arguments based on faith should clearly describe the firm's mission and objectives, the strategy for achieving them, and the types of information systems that are needed in order to enact the strategy. For example, a person making a business case based on faith might say: "I'm convinced that having this customer relationship management system will enable us to serve our customers significantly better than our competitors do."

Business case arguments based on fear: These arguments are based on fear that if the system is not implemented, the firm will lose out to the competition or, worse, go out of business. The argument for the business case here would be something like, "If we do not implement this system, we run the risk of being sued or, worse, being thrown in jail."

Business case arguments based on fact: Many people, including most chief financial officers, want to see the business case for an information system based on some convincing, quantitative analysis that proves beyond the shadow of a doubt that the benefits of the system will outweigh the costs. The most common way to prove this is to provide a detailed cost-benefit analysis of the information system. Arguments are based on data, quantitative analysis, and/or indisputable factors. An example of a business case based on facts is, "This analysis shows that implementing the inventory control system will help us reduce errors by 50 percent, reduce operating costs by 15 percent a year, increase production by 5 percent a year, and will pay for itself within eighteen months."

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

30

92) Explain how a cost-benefit analysis could be used to build a fact-based business case.

Answer: Many people, including most chief financial officers, want to see the business case for an information system based on some convincing, quantitative analysis that proves beyond the shadow of a doubt that the benefits of the system will outweigh the costs. The most common way to prove this is to provide a detailed cost-benefit analysis of the information system. One goal of a cost-benefit analysis is to accurately determine the total cost of ownership (TCO) for an investment. TCO is focused on understanding not only the total cost of acquisition, but also all costs associated with ongoing use and maintenance of a system. Consequently, costs can usually be divided into two categories: non-recurring costs and recurring costs. Next, you determine both tangible benefits and intangible benefits.

A simplified cost-benefit analysis contrasts the total expected tangible costs versus the tangible benefits. Alternatively, you could perform a break-even analysis–a type of cost benefit analysis to identify at what point (if ever) tangible benefits equal tangible costs–or a more formal netpresent-value analysis of the relevant cash flow streams associated with the system at the organization's discount rate (i.e., the rate of return used by an organization to compute the present value of future cash flows).

AACSB: Information technology Difficulty: Easy Learning Objective: 9.1: Describe how to formulate and present the business case for technology investments.

Classification: Concept

31

93) List and explain the main steps in the systems development life cycle (SDLC).

Answer: The term systems development life cycle (SDLC) describes the life of an information system from conception to retirement. The SDLC has four primary phases: 1. Systems planning and selection: The first phase of the SDLC is systems planning and selection. An organization must take care that only those projects that are critical to enabling the organization's mission, goals, and objectives are undertaken. Consequently, the goal of systems planning and selection is simply to identify, plan, and select a development project from all possible projects that could be performed.

2. Systems analysis: The second phase of the SDLC is called systems analysis. One purpose of the systems analysis phase is for designers to gain a thorough understanding of an organization's current way of doing things in the area for which the new information system will be constructed. The process of conducting an analysis requires that many tasks, or subphases, be performed. The first subphase focuses on determining system requirements. To determine the requirements, an analyst works closely with users to determine what is needed from the proposed system. After collecting the requirements, analysts organize this information using data, process, and logic modeling tools.

3. Systems design: The third phase of the SDLC is systems design. It is during this phase that the proposed system is designed; that is, the details of the chosen approach are elaborated. As with analysis, many different activities must occur during systems design. The elements that must be designed when building an information system include the following: (1) human-computer interface, (2) databases and files, and (3) processing and logic.

4. Systems implementation and operation: Many separate activities occur during systems implementation, the fourth phase of the SDLC. One group of activities focuses on transforming the system design into a working information system. These activities include software programming and testing. A second group of activities focuses on preparing the organization for using the new information system. These activities include system conversion, documentation, user training, and support.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

32

94) Describe some methods of requirements collection during systems analysis.

Answer: The collection and structuring of requirements is arguably the most important activity in the systems development process because how well the IS requirements are defined influences all subsequent activities. Requirements collection is the process of gathering and organizing information from users, managers, customers, business processes, and documents to understand how a proposed information system should function. Systems analysts use a variety of techniques for collecting system requirements, including the following: • Interviews: Analysts interview people informed about the operation and issues of the current or proposed system.

• Questionnaires: Analysts design and administer surveys to gather opinions from people informed about the operation and issues of the current or proposed system.

• Observations: Analysts observe workers at selected times to see how data are handled and what information people need to do their jobs.

• Document analysis: Analysts study business documents to discover issues, policies, and rules as well as concrete examples of the use of data and information in the organization.

• Joint application design: Joint application design (JAD) is a group meeting-based process for requirements collection. During this meeting, the users jointly define and agree on system requirements or designs. This process can result in dramatic reductions in the length of time needed to collect requirements or specify designs.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept 95) Describe the elements that must be considered during the systems design phase of the software development lifecycle (SDLC).

Answer: The elements that must be designed when building an information system include the following: (1) human-computer interface, (2) databases and files, and (3) processing and logic.

Designing the human-computer interface: Just as people have different ways of interacting with other people, information systems can have different ways of interacting with people. A humancomputer interface (HCI) is the point of contact between a system and users.

Designing databases and files: To design databases and files, a systems analyst must have a thorough understanding of an organization's data and informational needs.

Designing processing and logic: The processing and logic operations of an information system are the steps and procedures that transform raw data inputs into new or modified information.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

33

96) What are the different types of software maintenance?

Answer: After an information system is installed, it is essentially in the maintenance phase of the SDLC, in which an information system is systematically repaired and/or improved. The types of maintenance are the following: Corrective maintenance: Making changes to an information system to repair flaws in the design, coding, or implementation.

Adaptive maintenance: Making changes to an information system to evolve its functionality, to accommodate changing business needs, or to migrate it to a different operating environment.

Perfective maintenance: Making enhancements to improve processing performance or interface usability, or adding desired, but not necessarily required, system features.

Preventive maintenance: Making changes to a system to reduce the chance of future system failure.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.2: Describe the systems development life cycle and its various phases, as well as agile.

Classification: Concept

34

97) Describe the steps in the external acquisition process for information systems.

Answer: Most external acquisition processes have at least five general steps: Systems planning and selection: The first phase of the SDLC is systems planning and selection.

An organization must take care that only those projects that are critical to enabling the organization's mission, goals, and objectives are undertaken. Consequently, the goal of systems planning and selection is simply to identify, plan, and select a development project from all possible projects that could be performed.

Systems analysis: The second phase of the SDLC is called systems analysis. One purpose of the systems analysis phase is for designers to gain a thorough understanding of an organization's current way of doing things in the area for which the new information system will be constructed. The process of conducting an analysis requires that many tasks, or subphases, be performed. The first subphase focuses on determining system requirements. To determine the requirements, an analyst works closely with users to determine what is needed from the proposed system. After collecting the requirements, analysts organize this information using data, process, and logic modeling tools.

Development of a request for proposal: A request for proposal (RFP) is simply a document that is used to tell vendors what your requirements are and to invite them to provide information about how they might be able to meet those requirements. An RFP is sent to vendors who might potentially be interested in providing hardware and/or software for the system.

Proposal evaluation: The fourth step in external acquisition is to evaluate proposals received from vendors. This evaluation may include viewing system demonstrations, evaluating the performance of those systems, and examining criteria important to the organization and judging how the proposed systems "stack up" to those criteria. Demonstrations are a good way to get a feel for the different systems' capabilities.

Vendor selection: One way of doing this is by devising a scoring system for each of the criteria and benchmarking results. Companies may use other, less formalized approaches to evaluate vendors. Sometimes they use simple checklists; other times they use a more subjective process.

Regardless of the mechanism, eventually a company completes the evaluation stage and selects a vendor, ending the external acquisition process.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

35

98) What is a request for proposal (RFP)? What areas does a request for proposal cover?

Answer: A request for proposal (RFP) is a document that is used to tell vendors what your requirements are and to invite them to provide information about how they might be able to meet those requirements. An RFP is sent to vendors who might potentially be interested in providing hardware and/or software for the system. Among the areas that may be covered in an RFP are the following: • A summary of existing systems and applications • Requirements for system performance and features • Reliability, backup, and service requirements • The criteria that will be used to evaluate proposals • Timetable and budget constraints The RFP is then sent to prospective vendors along with an invitation to present their bids for the project.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

36

99) Explain why a firm might choose to outsource its information systems (IS) services.

Answer: A firm might outsource some (or all) of its information systems services for many reasons. Some of these are old reasons, but some are new to today's environment: • Cost and quality concerns: In many cases, it is possible to achieve higher-quality systems at a lower price through economies of scale, better management of hardware, lower labor costs, and better software licenses on the part of a service provider.

• Problems in IS performance: IS departments may have problems meeting acceptable service standards because of cost overruns, delayed systems, underutilized systems, or poorly performing systems. In such cases, organizational management may attempt to increase reliability through outsourcing.

• Supplier pressures: Some of the largest service providers are also the largest suppliers of computer equipment (e.g., IBM or Hewlett-Packard). In some cases, the aggressive sales forces of these suppliers are able to convince senior managers at other organizations to outsource their IS functions.

• Simplifying, downsizing, and reengineering: Organizations under competitive pressure often attempt to focus on only their "core competencies." In many cases, organizations simply decide that running information systems is not one of their core competencies and decide to outsource this function to companies whose primary competency is developing and maintaining information systems.

• Financial factors: When firms turn over their information systems to a service provider, they can sometimes strengthen their balance sheets by liquidating their IT assets.

• Organizational culture: Political or organizational problems are often difficult for an IS group to overcome. However, an external service provider often brings enough clout, devoid of any organizational or functional ties, to streamline IS operations as needed.

• Internal irritants: Tension between end users and the IS staff is sometimes difficult to eliminate.

At times this tension can intrude on the daily operations of the organization, and the idea of a remote, external, relatively neutral IS group can be appealing.

AACSB: Information technology Difficulty: Moderate Learning Objective: 9.3: Explain how organizations acquire systems via external acquisition and outsourcing.

Classification: Concept

37

Information Systems Today, 9e (Valacich) Chapter 10 Securing Information Systems 1) The term social engineering refers to misrepresenting oneself to trick others into revealing information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 2) The term shoulder surfing refers to looking over one's shoulder while the person is keying in access information.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 3) Logic bombs are variations of a worm that can reproduce themselves to disrupt the normal functioning of a computer.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 4) Spyware is electronic junk mail or junk newsgroup postings usually posted for the purpose of advertising some product and/or service.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 5) Spam filters are used to reduce the amount of spam processed by central e-mail servers.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

1

6) Ransomware is a type of adware.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 7) The term dumpster diving refers to the task of modifying the operating system to remove manufacturer or carrier restrictions in order to run applications other than those from the official store.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 8) Making false accusations that damage the reputation of the victim on blogs, Web sites, chat rooms, or e-commerce sites is a form of cyberstalking.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 9) Patents generally refer to creations of the mind such as music, literature, or software.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 10) Cyberwar refers to an organized attempt by a country's military to disrupt or destroy the information and communication systems of another country.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept

2

11) Patriot hackers are independent citizens or supporters of a country that perpetrate attacks on perceived or real enemies.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept 12) Information dissemination refers to the use of Web sites to provide information for recruiting new members as well as utilizing more interactive Internet technologies.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept 13) Insuring all the systems and information processing tasks is an essential part of risk acceptance strategy.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 14) A virtual private network is also called a secure tunnel.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 15) A firewall is a part of a computer system designed to detect intrusion and prevent unauthorized access to or from a private network.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

3

16) A hot backup site is an empty warehouse with all necessary connections for power and communication.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 17) Secure Sockets Layer is a popular private key decryption method used on the Internet.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 18) A honeypot is a computer, data, or network site that is used to penetrate other networks and computer systems to snoop or to cause damage.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 19) An account management policy explains technical controls on all organizational computer systems, such as access limitations, audit-control software, firewalls, and so on.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 20) Recovery point objectives are used to specify how current the backup data should be.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

4

21) Corrective controls are used to mitigate the impact of any problem after it has arisen, such as restoring compromised data.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 22) Control objectives for information and related technology (COBIT) is a set of best practices that helps organizations to maximize the benefits from their IS infrastructure and establish appropriate controls.

Answer: TRUE AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 23) Which of the following is the most accurate definition of a computer crime?

A) the act of using a computer to commit an illegal act B) the act of using someone's computer to browse the Internet C) the act of using someone's computer to check e-mail D) the act of stealing a computer and related hardware E) the act of providing personal information to Web sites when shopping Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 24) The individuals who are knowledgeable enough to gain access to computer systems without authorization are referred to as ________.

A) hackers B) bots C) online predators D) worms E) power users Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

5

25) Which of the following is one of the main federal laws against computer crimes in the United States?

A) Satellite Act of 1962 B) Trade Expansions Act of 1962 C) United States Information and Educational Exchange Act D) Central Intelligence Agency Act E) Electronic Communications Privacy Act of 1986 Answer: E AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 26) The Computer Fraud and Abuse Act of 1986 prohibits ________.

A) accessing company intranet and confidential information from public computers B) stealing or compromising data about national defense, foreign relations, atomic energy, or other restricted information C) the use of external devices to provide access and information to companies' confidential information D) signing contracts with consultants outside the United States to process information E) access to companies' extranets when outsourcing work to clients overseas Answer: B AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 27) Which of the following U.S. laws amended the Computer Fraud and Abuse Act to allow investigators to easily access voice-related communications?

A) the Non-Detention Act B) the Espionage Act C) the Patriot Act D) the Video Privacy Protection Act E) the Clery Act Answer: C AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

6

28) Violating data belonging to banks or other financial institutions is a crime in the United States. Which of the following legislations prohibits such violations?

A) the Foreign Intelligence Surveillance Act B) the Computer Fraud and Abuse Act C) the Patriot Act D) the Glass-Steagall Act E) the Electronic Communications Privacy Act Answer: B AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 29) ________ describes covert activities, such as theft of trade secrets, bribery, blackmail, and technological surveillance, to gain an advantage over rivals.

A) Industrial espionage B) Packet sniffing C) Spyware D) Unauthorized data modification E) Cyberterrorism Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 30) Computer criminals who attempt to break into systems or deface Web sites to promote political or ideological goals are called ________.

A) hacktivists B) crackers C) social promoters D) internet activists E) online predators Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

7

31) People who break into computer systems with the intention of doing damage or committing a crime are called ________.

A) bots B) white hats C) worms D) cyber spies E) crackers Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 32) WikiLeaks is a famous not-for-profit whistleblower Web site. MasterCard and Visa stopped payments to WikiLeaks after a series of leaks by the site. An anonymous group attacked the Web sites of both MasterCard and Visa reacting to this. These Web vandals, who tried to protect WikiLeaks, are called ________.

A) hacktivists B) bots C) ethical hackers D) patriot hackers E) cyber soldiers Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 33) Employees steal time on company computers to do personal business. This is an example of ________.

A) unauthorized access B) hacking C) vandalism D) cyberstalking E) functional inconvenience Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

8

34) Identify a true statement about a vulnerability scanner.

A) It analyzes network traffic and captures unencrypted passwords.

B) It presents a view of long-term technology integration.

C) It tests targeted systems for weaknesses.

D) It presents a view of short-term technology integration.

E) It ensures high-quality leads when a search is conducted online.

Answer: C AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 35) ________ targeted at networks is designed to spread by itself without the need for an infected host file to be shared.

A) Adware B) Spyware C) A worm D) Spam E) A logic bomb Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 36) Ronald downloads a movie from the Internet onto his company's computer. During this process, his system gets infected with a virus. The virus spreads rapidly in the company's network causing the server to crash. This type of virus is most likely to be ________.

A) adware B) phishing mail C) spam D) a worm E) a Trojan horse Answer: D AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application

9

37) When Shelly downloaded an arcade game from an unknown Internet Web site, an unauthorized connection unknown to Shelly was established with her computer. The arcade game is most likely to be ________.

A) spyware B) a worm C) adware D) a Trojan horse E) encryption Answer: D AACSB: Analytical thinking; Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 38) While adding information to the employee information database, Neil's computer crashed, and the entire database was erased. Which of the following types of viruses caused Neil's computer to crash?

A) spyware B) worms C) adware D) logic bombs E) encryption Answer: D AACSB: Analytical thinking; Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application 39) Computers that are located in homes, schools, and businesses are infected with viruses or worms to create armies of zombie computers to execute ________ attacks.

A) digital marketing B) malware C) adware D) denial-of-service E) product-as-service Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

10

40) Identify a true statement about a packet sniffer.

A) It is used to analyze network traffic.

B) It is used to test targeted systems for weaknesses.

C) It is used to break passwords using a brute-force approach.

D) It is used to capture encrypted passwords.

E) It is used to redirect Web pages to different sites if any link fails.

Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application 41) ________ refers to any software that covertly gathers information about a user through an Internet connection without the user's knowledge.

A) Spyware B) Spam C) Web filter D) Cookie E) Bot herder Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 42) Which of the following terms refers to junk newsgroup postings used for the purpose of advertising for some product or service?

A) spam B) adware C) cookie D) bot herder E) Web filter Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

11

43) Robert receives an e-mail which says that he has won an online lottery worth $50 billion.

Robert has his doubts as he does not remember buying a lottery ticket. He finds out that it is a spam e-mail intended to obtain his bank account details and credit card number. Which of the following is evident here?

A) a logic bomb B) hacktivism C) phishing D) tunneling E) a worm Answer: C AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application 44) ________ is an attempt to trick financial account and credit card holders into giving away their authentication information, usually by sending spam messages to literally millions of e-mail accounts.

A) Phishing B) Cyber tunneling C) Viral marketing D) Logic bombing E) Hacking Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 45) ________ is a more sophisticated fraudulent e-mail attack that targets a specific person or organization by personalizing the message in order to make the message appear as if it is from a trusted source.

A) Spear phishing B) Cyber tunneling C) Viral marketing D) Logic bombing E) Hacking Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

12

46) A ________ is a small text file passed to a Web browser on a user's computer by a Web server.

A) cookie B) botnet C) honeypot D) worm E) virus Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 47) When using Yahoo Messenger, Roger gets an unsolicited advertisement from a company.

The advertisement contains a link to connect to the merchant's Web site. Which of the following is the most suitable way of describing this type of advertisement?

A) adware B) cookie C) Internet hoax D) spam E) cyber squatting Answer: D AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application 48) A(n) ________ typically consists of a distorted image displaying a combination of letters and/or numbers that a user has to input into a form before submitting it.

A) American Standard Code for Information Interchange (ASCII) B) Comprehensive TeX Archive Network (CTAN) C) Entity-Relationship Diagram (ERD) D) Completely Automated Public Turing Test to Tell Computers and Humans Apart (CAPTCHA) E) Organization for the Advancement of Structured Information Standards (OASIS) Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

13

49) Which of the following is the most accurate definition of a botnet?

A) a fraudulent e-mail attack that targets a specific person or organization by personalizing the message B) spider software used by a search algorithm to crawl various Web sites to return a query C) a small text file passed to a Web browser on a user's computer by a Web server D) a common platform used by search engines to index the contents of a Web site E) destructive software robots working together on a collection of zombie computers Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 50) ________ is the stealing of another person's Social Security number, credit card number, and other personal information for the purpose of using the victim's credit rating to borrow money, buy merchandise, and otherwise run up debts that are never repaid.

A) Logic bombing B) Battery C) Spear phishing D) Bot herding E) Identity theft Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 51) ________ contains spyware that collects information about a person's Web surfing behavior in order to customize Web site banner advertisements.

A) Adware B) Malware C) Firmware D) A cookie E) A honeypot Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

14

52) ________ are false messages circulated online about new viruses, earthquakes, kids in trouble, cancer causes, or any other topic of public interest.

A) Internet hoaxes B) Honeypots C) Cookies D) Logic bombs E) Malware Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 53) ________ is the dubious practice of registering a domain name and then trying to sell the name for big bucks to the person, company, or organization most likely to want it.

A) Cybersquatting B) Bot herding C) Spear phishing D) Logic bombing E) Hacktivism Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 54) Fyroff consultants, a leading software consulting firm in the United States, decides to launch an Enterprise Resource Planning (ERP) solution. The company chooses the brand name Fyroff Enterprise for the new solution. However, when the company attempts to register the domain name, it finds that a small unknown firm is already registered under the same domain name. The small firm is now attempting to sell the domain name to Fyroff. Which of the following terms refers to this practice of buying a domain name only to sell it for big bucks?

A) cybersquatting B) logic bombing C) cyberbullying D) bot herding E) cyberstalking Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Application

15

55) ________ refers to the use of a computer to communicate obscene, vulgar, or threatening content that causes a reasonable person to endure distress.

A) Cyberharassment B) Viral marketing C) Hacktivism D) Bot herding E) Spam filtering Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 56) The acts of cybercriminals to gain information on a victim by monitoring online activities, accessing databases, and making false accusations are forms of ________.

A) bot herding B) cyberstalking C) spam filtering D) viral marketing E) spear phishing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 57) ________ refers to offering stolen proprietary software for free over the Internet.

A) Bot herding B) Warez peddling C) Spam filtering D) Viral marketing E) Spear phishing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

16

58) A slang term for stolen proprietary software offered for free or for sale over the Internet is ________.

A) slinger B) softpeddler C) warez D) bounce Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 59) Which of the following examples can be considered as a violation for a copyright?

A) Apple's multitouch technology B) music by an existing band C) Amazon's one-click buying D) mobile phones E) tablets Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 60) Which of the following can be referred for a patent?

A) material inventions B) software C) music by an existing band D) literature E) art Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

17

61) ________ refers to an organized attempt by a country's military to disrupt or destroy the information and communication systems of another country.

A) Cyberwar B) Internet hoaxing C) Cybersquatting D) Web vandalism E) Logic bombing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept 62) Independent citizens or supporters of a country that perpetrate attacks on perceived or real enemies are called ________.

A) patriot hackers B) bot herders C) online predators D) hacktivists E) ethical hackers Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept 63) ________ is the use of computer and networking technologies by individuals and organized groups against persons or property to intimidate or coerce governments.

A) Cyberterrorism B) Cybersquatting C) Cyberforensics D) Cyberstalking E) Cyberbullying Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept

18

64) A mass cyberattack occurred in a country when it took severe actions against a group of citizens who protested against the country's religious policies. The attack involved a denial-ofservice in which selected sites were bombarded with traffic to force them offline. This is an example of ________.

A) cyberterrorism B) logic bombing C) cyberforensics D) cyberbullying E) cybersquatting Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Application 65) ________ by terrorists refers to the use of the vast amount of information available on the Internet regarding virtually any topic for planning, recruitment, and numerous other endeavors.

A) Data mining B) Information dissemination C) Location monitoring D) Information sharing E) Cybersquatting Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept 66) ________ refers to precautions taken to keep all aspects of information systems safe from destruction, manipulation, or unauthorized use or access.

A) Information systems security B) Information systems resource C) Information systems planning D) Information systems audit E) Information systems distribution Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

19

67) Information systems ________ is done to obtain an understanding of the threats to the confidentiality, integrity, and availability of data and systems.

A) risk assessment B) quality testing C) requirements analysis D) security modeling E) data processing Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 68) An organization takes active countermeasures to protect its systems, such as installing firewalls. This approach is known as ________.

A) risk reduction B) risk acceptance C) risk rescheduling D) risk transference E) risk elimination Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 69) An organization does not implement countermeasures against information threats; instead it simply absorbs the damages that occur. This approach is called ________.

A) risk acceptance B) risk reduction C) risk mitigation D) risk transference E) risk rescheduling Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

20

70) Ciscon Telecom is a mobile operator in the European Union. The company provides personalized services to its customers, and its databases contain valuable information about the customers. The loss of customer information that is used to decide services would be extremely harmful to the organization. Which of the following strategies adopted by Ciscon is an example of risk transference?

A) The company insures any possible data loss for a large sum.

B) The company forms a special team of top executives to monitor and correct the information policies.

C) It installs a corporate firewall to protect unauthorized access to information.

D) It enforces a strict employee data policy and prohibits employees from unauthorized access.

E) The company decides to absorb any damages that might occur.

Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Application 71) Glassico Publishing is a leading media company in France. The company handles sensitive information and often finds it susceptible to information threats. As a countermeasure, the company installs strong firewalls and protective software. These steps are a part of ________.

A) risk acceptance B) risk reduction C) risk mitigation D) risk transference E) risk rescheduling Answer: B AACSB: Analytical thinking; Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Application 72) With ________, employees may be identified by fingerprints, retinal patterns in the eye, facial features, or other bodily characteristics before being granted access to use a computer or to enter a facility.

A) CAPTCHAs B) biometrics C) passwords D) ECHELONs E) smart cards Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 21

73) When a company uses a fingerprint recognition system instead of access cards, it helps the company prevent unauthorized physical access. Which of the following technologies is used for authentication here?

A) biometrics B) passwords C) smart cards D) access-control software E) encryption Answer: A AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Application 74) In ________, an attacker accesses the network, intercepts data from it, and even uses network services and/or sends attack instructions to it without having to enter the home, office, or organization that owns the network.

A) drive-by hacking B) hacktivism C) viral marketing D) cybersquatting E) denial-of-service Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 75) A(n) ________ is a network connection that is constructed dynamically within an existing network in order to connect users or nodes.

A) virtual private network B) ambient network C) cognitive network D) collaborative service network E) artificial network Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

22

76) Albitrex Systems is an Asian software consulting firm that develops solutions for companies in the United States and Europe. The company is heavily dependent on the Internet for transporting data. It wants to ensure that only authorized users access the data and that the data is not intercepted and compromised. Which of the following would be most helpful to the company in achieving this goal?

A) spam filtering B) hot back up C) tunneling D) open transmitting E) cloud storage Answer: C AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Application 77) Which of the following is a part of a computer system designed to detect intrusion and to prevent unauthorized access to or from a private network?

A) firewall B) cookie C) botnet D) honeypot E) spam filter Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 78) Which of the following is a valid observation about encryption?

A) Encrypted messages cannot be deciphered without the decoding key.

B) Encryption is used for data enhancement rather than data protection.

C) Encryption is performed only after messages enter the network.

D) The encryption approach is not dependent on the type of data transmission.

E) Encryption implementation is expensive and needs authentication from a relevant authority.

Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

23

79) Implementing encryption on a large scale, such as on a busy Web site, requires a third party, called a(n) ________.

A) certificate authority B) virtual private network C) arbitrative authority D) artificial network E) buying center Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 80) The science of encryption is called ________.

A) cryptanalysis B) cryptology C) cryptography D) cryptowall E) cryptarithm Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 81) A ________ is nothing more than an empty warehouse with all necessary connections for power and communication, but nothing else.

A) cold backup site B) buying center C) botnet D) firewall E) collocation facility Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

24

82) An organization builds a fully equipped backup facility, having everything from office chairs to a one-to-one replication of the most current data. This facility is called a ________.

A) buying center B) firewall C) hot backup site D) botnet E) collocation facility Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 83) Some data centers rent server space to multiple customers and provide necessary infrastructure in terms of power, backups, connectivity, and security. Such data centers are called ________.

A) collocation facilities B) hot backup sites C) virtual private networks D) offshore networks E) control centers Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 84) ________ is the use of formal investigative techniques to evaluate digital information for judicial review.

A) Computer forensics B) Flaming C) Hacktivism D) Certificate authority E) Encryption Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

25

85) Which of the following terms refers to a computer, data, or network site that is designed to be enticing to crackers so as to detect, deflect, or counteract illegal activity?

A) honeypot B) firewall C) bot herder D) botnet E) zombie computer Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 86) Identify the policy that lists procedures for adding new users to systems and removing users who have left the organization.

A) information policy B) use policy C) incident handling procedures D) disaster recovery plan E) account management policy Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 87) Which of the following types of plans describes how a business resumes operation after a disaster?

A) business continuity plan B) internal operations plan C) business unit plan D) emergency operation plan E) virtual private network plan Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

26

88) Recovery point objectives of a recovery plan specify ________.

A) the maximum time allowed to recover from a catastrophic event B) data structures and patterns of the data C) the minimum time after which response should be allowed in a catastrophic event D) how current the backup data should be E) the capacity of backup servers in storing the necessary data Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 89) Controls that are used to assess whether anything went wrong, such as unauthorized access attempts, are called ________ controls.

A) detective B) preventive C) corrective D) adaptive E) protective Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 90) Organizations periodically have an external entity review the controls so as to uncover any potential problems in the controls. This process is called ________.

A) information systems audit B) risk analysis C) information modification D) recovery plan objective analysis E) business continuity plan Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

27

91) Which of the following laws makes it mandatory for organizations to demonstrate that there are controls in place to prevent misuse and detect any potential problems?

A) Sarbanes-Oxley Act B) Trade Expansion Act of 1962 C) Electronic Communications Privacy Act of 1986 D) Central Intelligence Agency Act E) U.S.A. Patriot Act Answer: A AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 92) The ________ is a set of best practices that helps organizations to maximize the benefits from their IS infrastructure and to establish appropriate controls.

A) Sarbanes-Oxley Act of 2002 (S-OX) B) Completely Automated Public Turing Test to Tell Computers and Humans Apart (CAPTCHA) C) Electronic Communications Privacy Act of 1986 D) control objectives for information and related technology (COBIT) E) U.S.A. Patriot Act Answer: D AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 93) What is unauthorized access? Provide a few examples for unauthorized access.

Answer: Unauthorized access occurs whenever people who are not authorized to see, manipulate, or otherwise handle information look through electronically stored information files for interesting or useful data, peek at monitors displaying proprietary or confidential information, or intercept electronic information on the way to its destination. The following are a few examples from recent media reports: 1. Employees steal time on company computers to do personal business.

2. Intruders break into government Web sites and change the information displayed.

3. Thieves steal credit card numbers and Social Security numbers from electronic databases, and then use the stolen information to charge thousands of dollars in merchandise to victims.

4. An employee at a Swiss bank steals data that could possibly help to charge the bank's customers for tax evasion hoping to sell this data to other countries' governments for hefty sums of money.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 28

94) Compare and contrast computer viruses and a Trojan horse.

Answer: A virus is a destructive program that disrupts the normal functioning of computer systems. Viruses differ from other types of malicious code in that they can reproduce themselves.

Some viruses are intended to be harmless pranks, but more often they do damage to a computer system by erasing files on the hard drive or by slowing computer processing or otherwise compromising the system.

Unlike viruses, Trojan horses do not replicate themselves, but, like viruses, can do much damage. When a Trojan horse is planted in a computer, its instructions remain hidden. The computer appears to function normally, but in fact it is performing underlying functions dictated by the intrusive code.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 95) What are cookies? Do they pose a threat to users?

Answer: A cookie is a small text file passed to a Web browser on a user's computer by a Web server. The browser then stores the message in a text file, and the message is sent back to the server each time the user's browser requests a page from that server.

Cookies are normally used for legitimate purposes, such as identifying a user in order to present a customized Web page or for authentication purposes. Although you can choose to not accept the storage of cookies, you may not be able to visit the site, or it may not function properly. In such cases, cookies may contain sensitive information (such as credit card numbers) and thus pose a security risk in case unauthorized persons gain access to the computer.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 96) Briefly explain cyberstalking and cybersquatting.

Answer: Cybersquatting refers to the dubious practice of registering a domain name and then trying to sell the name for big bucks to the person, company, or organization most likely to want it. Domain names are one of the few scarce resources on the Internet, and cybersquatting makes use of it.

Cyberharassment refers to the use of computers to communicate obscene, vulgar, or threatening content that causes a reasonable person to endure distress. Repeated contacts with a victim are referred to as cyberstalking. It includes making false accusations, gaining information on a victim by monitoring online activities, encouraging others to harass a victim, and so forth.

AACSB: Information technology Difficulty: Moderate Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept

29

97) Briefly explain the concept of computer crime.

Answer: Computer crime is defined as the act of using a computer to commit an illegal act.

This broad definition of computer crime can include the following: 1. Targeting a computer while committing an offense–For example, someone gains unauthorized entry to a computer system in order to cause damage to the computer system or to the data it contains.

2. Using a computer to commit an offense–In such cases, computer criminals may steal credit card numbers from Web sites or a company's database, skim money from bank accounts, or make unauthorized electronic fund transfers from financial institutions.

3. Using computers to support a criminal activity despite the fact that computers are not actually targeted–For example, drug dealers and other professional criminals may use computers to store records of their illegal transactions.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.1: Define computer crime and describe several types of computer crime.

Classification: Concept 98) Briefly explain cyberwar and cyberterrorism.

Answer: Cyberwar refers to an organized attempt by a country's military to disrupt or destroy the information and communication systems of another country. Cyberwar is often executed simultaneously with traditional methods to quickly dissipate the capabilities of an enemy.

Unlike cyberwar, cyberterrorism is launched not by governments, but by individuals and organized groups. Cyberterrorism is the use of computer and networking technologies against persons or property to intimidate or coerce governments, civilians, or any segment of society in order to attain political, religious, or ideological goals.

AACSB: Information technology Difficulty: Moderate Learning Objective: 10.2: Describe and explain the differences between cyberwar and cyberterrorism.

Classification: Concept

30

99) Write a short note on information systems risk assessment. What are the three ways in which organizations react to perceived risks?

Answer: A good approach to securing information systems begins with a thorough information systems risk assessment to obtain an understanding of the risks to the confidentiality, integrity, and availability of data and systems. Organizations assess the value of the assets being protected, determine their probability of being compromised, and compare the probable costs of their being compromised with the estimated costs of whatever protections they might have to take. This process is known as information systems risk assessment.

The three ways in which organizations react to perceived risks are as follows: 1. Risk Reduction: Taking active countermeasures to protect systems, such as installing firewalls.

2. Risk Acceptance: Implementing no countermeasures and simply absorbing any damages that occur.

3. Risk Transference: Having someone else absorb the risk, such as by investing in insurance or by outsourcing certain functions to another organization with specific expertise.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 100) List the commonly used methods in which technology is employed to safeguard information systems.

Answer: The methods in which technology is employed to safeguard information systems are: 1. Physical access restrictions 2. Firewalls 3. Encryption 4. Virus monitoring and prevention 5. Software development controls 6. Secure data centers 7. Human safeguards AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

31

101) Briefly describe the concept of virtual private networks.

Answer: A virtual private network (VPN) is a network connection that is constructed dynamically within an existing network, often called a secure tunnel, in order to connect users or nodes. A number of companies and software solutions enable you to create VPNs within the Internet as the medium for transporting data. These systems use authentication and encryption and other security mechanisms to ensure that only authorized users can access the VPN and that the data cannot be intercepted and compromised; this practice of creating an encrypted "tunnel" to send secure (private) data over the (public) Internet is known as tunneling.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 102) List the policies and procedures that guide users' decisions and establish responsibilities within an organization.

Answer: The policies that guide users' decisions and establish responsibilities within an organization are as follows: a. Information Policy: It outlines how sensitive information will be handled, stored, transmitted, and destroyed. b. Security Policy: It explains technical controls on all organizational computer systems, such as access limitations, audit-control software, firewalls, and so on. c. Use Policy: It outlines the organization's policy regarding appropriate use of in-house computer systems. d. Backup Policy: It explains requirements for backing up information, so that critical data can be restored in case of data loss. e. Account Management Policy: It lists procedures for adding new users to systems and removing users who have left the organization. f. Incident Handling Procedures: They list procedures to follow when handling a security breach. g. Disaster Recovery Plan: It lists all the steps an organization will take to restore computer operations in case of a natural or deliberate disaster.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

32

103) Explain the concept of disaster planning in organizations.

Answer: Organizations need to be prepared for when something catastrophic occurs. The most important aspect of preparing for a disaster is the creation of a business continuity plan, which describes how a business resumes operation after a disaster. A subset of the business continuity plan is the disaster recovery plan, which spells out detailed procedures for recovering from systems-related disasters, such as virus infections and other disasters that might cripple the IS infrastructure. When planning for disaster, two objectives should be considered by an organization: recovery time objectives and recovery point objectives. Recovery time objectives specify the maximum time allowed to recover from a catastrophic event. Recovery point objectives specify how current the backup data should be.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept 104) Explain various types of information systems controls.

Answer: The three types of information systems controls are: 1. Preventive controls: They are used to prevent any potentially negative event from occurring, such as by preventing outside intruders from accessing a facility.

2. Detective controls: They are used to assess whether anything went wrong, such as unauthorized access attempts.

3. Corrective controls: They are used to mitigate the impact of any problem after it has arisen, such as restoring compromised data.

AACSB: Information technology Difficulty: Easy Learning Objective: 10.3: Discuss the process of managing IS security and describe various IS controls that can help in ensuring IS security.

Classification: Concept

33

Information Systems Today, 9e (Valacich) Chapter 11 Technology Briefing: Foundations of Information Systems Infrastructure 1) Examples of input technologies include track pads and scanners.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 2) With streaming media, a Web user has to wait for the entire file to be downloaded before seeing the video or hearing the sound.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 3) Within the computer, a system clock generates pulses at a rapid rate, setting the pace for processing events to take place, rather like a metronome marks time for a musician.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 4) Secondary storage is located on the motherboard and is used to store the data and programs currently in use.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 5) A flash drive, located within the CPU, is a small block of memory used by processors to store instructions that are most recently or most often used.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

1

6) Solid-state drives are typically quieter, more reliable, but also more expensive than traditional hard disk-based drives.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 7) Parallel ports offer the slowest data transfer rates among all computer ports.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 8) A scanner is an output device that produces a paper copy of alphanumeric or graphic data from a computer.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 9) With a compiler, it is easy to quickly evaluate the effects of any changes made to the program's source code as the source code is translated each time the program is run.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 10) Hypertext markup language (HTML) is used for specifying the content and structure of Web pages.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

2

11) Microsoft Access is an example of a Web page builder.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 12) Microsoft .NET is a programming platform that is used to develop applications that are highly interoperable across a variety of platforms and devices.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 13) Web page designers frequently use Microsoft Access to check the accuracy of user-entered information, such as names, addresses, and credit card numbers.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 14) A local area network (LAN), a wide area network (WAN), and a private branch exchange (PBX) are all considered to be network topologies.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 15) The emergence of new computing models, such as distributed computing, has resulted in organizations completely abandoning the older, centralized computing technologies.

Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

3

16) Collaborative computing is a synergistic form of distributed computing in which two or more networked computers are used to accomplish a common processing task.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 17) Application services are repositories containing information about users, user groups, resources on a network, access rights, and so on.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 18) Microwave signals can be disrupted over longer distances by environmental conditions such as high winds and heavy rain.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 19) A bus network topology offers the greatest coverage, in terms of distances, among all network topologies.

Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 20) Integrated services digital network (ISDN) uses existing twisted-pair (TP) telephone wires to provide high-speed data service.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 21) The most common database management system (DBMS) approach in use today is the relational database model.

Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept 4

22) Elimination of data redundancy is the major goal and benefit of using data normalization techniques.

Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept 23) Which of the following is an input device used to enter information into computers?

A) speakers B) track pads C) printers D) headphones E) plotters Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 24) Which of the following devices was developed primarily for the disabled for help with computer operating?

A) eye-tracking device B) track pads C) optical mouse D) joystick E) touch screen Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 25) Entering a large number of separate forms or documents into a computer system and manipulating these data at a single time is referred to as ________.

A) inter-processor communication B) batch processing C) chain loading D) context switching E) process control block Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 5

26) ________ is used by text recognition software to convert typed, printed, or handwritten text into the computer-based characters that form the original letters and words.

A) Natural language processing B) Optical character recognition C) Speech recognition D) Autonomous automation E) Computer vision software Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 27) Which of the following types of specialized scanners is used to scan questionnaires and test answer forms where answer choices are indicated by filling in circles using pencils or pens?

A) optical mark recognition B) biometric scanner C) bar code reader D) magnetic ink character recognition E) optical character recognition Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 28) Which of the following scanning technologies is used by the banking industry to read data, account numbers, bank codes, and check numbers on preprinted checks?

A) optical mark recognition B) bar code reading C) magnetic ink character recognition D) biometric scanning E) optical character recognition Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

6

29) A(n) ________ scanner is used to scan human body characteristics for identification and security purposes.

A) biometric B) optical C) bar code D) smart card E) port Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 30) Which of the following speech recognition-based technologies is used for telephone surveys, and to guide customers through the various menu options when calling a company's customer service line?

A) bar code reader B) smart card reader C) biometric scanner D) interactive voice response E) computer-aided translation Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 31) ________ are data streams transmitted using specific protocols that are available for immediate playback on the recipient's computer.

A) Direct connect B) Parallel data rendering C) Streaming media D) Stream ciphers E) Digital data Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

7

32) The ________ is called the computer's brain, as it is responsible for performing all the operations of the computer.

A) random-access memory B) output device C) central processing unit D) input device E) read-only memory Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 33) ________ codes are represented as a series of ones and zeros and are used to relay data and instructions to and from the central processing unit (CPU) of a computer.

A) Binary B) Morse C) Source D) Block E) Object Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 34) ________ has gained widespread acceptance, as it allows for representing characters and scripts beyond the Latin alphabet, including Chinese, Cyrillic, Hebrew, and Arabic.

A) MIME B) Unicode C) Binary code D) Source code E) ASCII Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

8

35) The electronic circuit that generates pulses at a rapid rate to set the pace for processing events to take place within a computer is known as the ________.

A) peripheral port B) motherboard C) system clock D) universal serial bus E) solid state drive Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 36) Which of the following is measured in hertz in a microcomputer?

A) clock speed B) hard drive storage C) random-access memory D) virtual memory E) screen resolution Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 37) ________ is located on the motherboard and is used to store the data and programs currently in use.

A) Random-access memory B) Hard disk drive C) Flash drive D) Smart card E) Memory card Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

9

38) A ________ is a small block of memory used by processors to store those instructions most recently or most often used.

A) solid-state drive B) network interface card C) cache D) serial port E) flash drive Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 39) ________ is used to store programs and instructions that are automatically loaded when the computer is turned on.

A) Random-access memory B) Cache memory C) Read-only memory D) Flash memory E) Virtual memory Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 40) Which of the following is an example of secondary storage?

A) cache memory B) read-only memory C) hard drive D) random-access memory E) process register Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

10

41) ________ is a technology in which extra copies of data are stored on two or more hard drives to ensure that critical data is not lost.

A) Just a bunch of disks (JBOD) B) Redundant array of independent disks (RAID) C) Single large expensive disks (SLED) D) Basic input output systems (BIOS) E) Switched port analyzers (SPAN) Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 42) A ________ occurs if a read/write head, for some reason, touches one of the disks in a hard drive, leading to a loss of data.

A) head crash B) click of death C) bad sector D) disk compression E) base isolation Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 43) A ________ is a secondary storage technology that uses nonvolatile memory chips to store data.

A) router B) virtual port C) cache register D) solid-state drive E) switch Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

11

44) Which of the following is a valid observation of the difference between solid state drives and hard disk-based drives?

A) Hard disk drives are typically faster than solid state drives.

B) Solid state drives have no moving parts, while hard disk drives have moving mechanical parts.

C) Solid state drives are louder and less reliable than hard disk drives.

D) Hard disk drives are more expensive than solid state drives.

E) Hard disk drives use microchips to store data, while solid state drives use magnetic disks.

Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 45) Data stored on disks is easier and faster to locate than data on magnetic tapes because ________.

A) the data on disks is stored in binary form B) disks have larger and more efficient storage capacities as there are more than three levels of cache C) disks have both mechanical and electronic parts D) magnetic tapes store data in tiny magnetic spots with smaller wavelengths E) computers do not have to scan an entire tape to find a specific data file when using disks Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 46) A(n) ________ provides a hardware interface, such as a plug or a socket, for connecting to a computer.

A) input device B) primary storage device C) removable storage device D) keyboard E) port Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

12

47) A(n) ________ interface allows for simultaneous transmission of digital audio and video signals.

A) separate graphical video B) auxiliary C) separate audio D) high definition multimedia E) component video Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 48) ________ are removable, high capacity, secondary storage media that allow sequential access of data.

A) Routers B) Switches C) Tapes D) Modems E) Hard disk drives Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 49) Which of the following is an output technology that delivers information in a usable format?

A) scanner B) keyboard C) printer D) optical mouse E) eye-tracking device Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept

13

50) A(n) ________ is an output device that produces a paper copy of alphanumeric or graphic data from a computer.

A) scanner B) monitor C) printer D) e-paper E) eye-tracking device Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 51) The computer port you would need to simultaneous transmit video, audio, data and power would be ________.

A) Thunderbolt B) Ethernet C) Serial D) VGA E) HDMI Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 52) Which of the following is a multiuser, multitasking operating system that is available for a wide variety of computer platforms, and is commonly used because of its superior security?

A) Android B) iOS C) Windows D) Unix E) z/OS Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

14

53) Which of the following operating systems was the first commercial, graphical-based operating system that made its debut in 1984?

A) Mac OS B) Linux C) Windows D) Unix E) z/OS Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 54) Google's Linux-based operating system for mobile devices is known as ________.

A) iOS B) Symbian C) Java D) Bada E) Android Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 55) Which of the following types of computer software utilities is used to archive files from hard disks to tapes, flash drives, or other storage devices?

A) data compression B) file defragmentation C) disk and data recovery D) backup E) device drivers Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

15

56) Identify the computer software utility that allows more data to be stored on a disk by substituting short code for frequently repeated patterns of data.

A) file defragmentation B) data compression C) device drivers D) file conversion E) disk and data recovery Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 57) ________ allows adding new hardware to a computer system, such as a game controller, printer, and scanner to function with the operating system of the computer.

A) File conversion B) Data compression C) Backup D) File defragmentation E) A device driver Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 58) Which of the following types of computer software utilities translates a file from one format to another so that it can be used by an application other than the one used to create it?

A) file conversion B) data compression C) backup D) file defragmentation E) device driver Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

16

59) The source code is translated into machine language using programs called ________.

A) middleware B) firmware C) spreadsheets D) debuggers E) compilers Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 60) A(n) ________ is a type of program that translates a program's source code into machine language and executes one statement at a time.

A) compiler B) assembler C) interpreter D) executable E) linker Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 61) Which of the following statements accurately reflects a difference between compilers and interpreters?

A) Interpreters translate assembly language to machine language, while compilers translate machine language to assembly language.

B) Compilers convert a program's entire source code into an executable, while interpreters translate source code on the fly, i.e., one statement at a time.

C) Compiled programs run much slower than interpreted programs.

D) Compiling programs is a slower process and errors are often not prompted; whereas with interpreters, the translation and error-correction happens concurrently.

E) Compared to interpreters, it is easier to quickly evaluate the effects of any changes made to a program's source code when using a compiler.

Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

17

62) ________ is a programming language used to develop applications in artificial intelligence and high-speed arcade graphics.

A) Perl B) COBOL C) LISP D) FORTAN E) C++ Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 63) ________ languages use common modules which combine properties and behaviors to define the relevant system components.

A) Object-oriented B) Markup C) Structured query D) Metaprogramming E) Synchronous Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 64) Which of the following object-oriented programming concepts allows programmers to group objects of the same properties and behavior together?

A) encapsulation B) inheritance C) class D) polymorphism E) abstraction Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

18

65) Which of the following object-oriented programming concepts is reflected by a word processor that reacts to a user's typing and clicking?

A) inheritance B) event-driven program execution C) encapsulation D) class E) delegation Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 66) In ________, data and behavior of a class are hidden from other classes and are thus protected from unexpected changes.

A) event-driven program execution B) encapsulation C) object-oriented programming D) class E) inheritance Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 67) Identify the programming language that allows programmers to easily add a command button to a screen with a few clicks of a mouse instead of programming the button pixel by pixel and using many lines of code?

A) object-oriented language B) Web development language C) visual programming language D) scripting language E) prototype-based programming language Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

19

68) Which of the following is an example of a visual programming language?

A) Visual Basic .NET B) XML C) HTML D) Microsoft .NET E) CSS Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 69) Which of the following is an example of an HTML editor?

A) Adobe Dreamweaver B) Adobe Acrobat Reader C) Apple Keynote D) Open Office Word E) Harvard Graphics Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 70) Which of the following HTML tags creates a bold tag?

A) <p> . . . </p> B) <tr> . . . </tr> C) <b> . . . </b> D) <i> . . . </i> E) <u> . . . </u> Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

20

71) Which of the following HTML tags is used to create a new paragraph?

A) <i> . . . </i> B) <b> . . . </b> C) <tr> . . . </tr> D) <u> . . . </u> E) <p> . . . </p> Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 72) ________ are used by Web developers to specify the formatting and layout of elements on a Web page.

A) Word documents B) Graphic designing tools C) Photo editing applications D) Excel sheets E) Cascading style sheets Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 73) ________, a programming language developed by Sun Microsystems in the early 1990s, is used to add dynamic content to Web pages.

A) HTML B) Visual Basic C) Java D) LISP E) Basic Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

21

74) ________ are small programs that are executed within another application, such as a Web page.

A) Caches B) Packets C) Applets D) Flashes E) Basics Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 75) ________ is a programming platform that is used to develop applications that are highly interoperable across a variety of platforms and devices.

A) Adobe Dreamweaver B) Microsoft Expression Web C) HTML D) PHP E) Microsoft .NET Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 76) ________ is an open source tool for designing dynamic Web content.

A) PHP B) LISP C) BASIC D) MySQL E) Microsoft Access Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

22

77) ________ refers to the use of automated software tools by systems developers to design and implement information systems.

A) Computer aided software engineering (CASE) B) American Standard Code for Information Interchange (ASCII) C) Arithmetic logic unit (ALU) D) Redundant array of independent disks (RAID) E) Carrier sense multiple access (CSMA) Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 78) Which of the following functions do scripting languages perform?

A) creating Web pages that load quickly compared to HTML-developed Web pages B) developing applications in high-speed arcade graphics C) checking the accuracy of user-entered information on Web pages D) automating or supporting activities throughout the information systems development process E) laying out or formatting Web pages Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 79) Which of the following software tools allows developers to create animation and video that can be compressed small enough for fast download speeds?

A) Adobe Flash B) MySQL C) CSS D) HTML E) XML Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

23

80) Which of the following computer-aided software engineering (CASE) tools enable system process, data, and control structures to be represented graphically?

A) repositories B) code generators C) diagramming tools D) screen and report generators E) analysis tools Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 81) Which of the following types of ports is used to connect networks in standard local area networks?

A) Ethernet port B) VGA port C) serial port D) parallel port E) USB port Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 82) Tools that make it easier for the systems analyst to identify data requirements and relationships, and also help model how systems look and feel to users, are called ________.

A) documentation generators B) code generators C) diagramming tools D) screen and report generators E) repositories Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

24

83) ________ are computer-aided software engineering (CASE) tools that enable the integrated storage of specifications, diagrams, reports, and project management information.

A) Repositories B) Analysis tools C) Code generators D) Diagramming tools E) Documentation generators Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 84) ________ are computer-aided software engineering (CASE) tools that automatically check for incomplete, inconsistent, or incorrect specifications in diagrams, screens, and reports.

A) Documentation generators B) Code generators C) Diagramming tools D) Repositories E) Analysis tools Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 85) ________ computing is a synergistic form of distributed computing in which two or more networked computers are used to accomplish a common processing task.

A) Serial B) Collaborative C) Centralized D) Mobile E) Parallel Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

25

86) ________ computing is a computing model in which multiple types of computers are networked together to share data and services.

A) Centralized B) Mainframe C) Task D) Distributed E) Serial Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 87) A(n) ________ network is a computer network that spans a relatively small area, allowing all computer users to connect with each other to share data and peripheral devices, such as printers.

A) enterprise B) wide area C) campus area D) local area E) value-added Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 88) A(n) ________ network is a wide area network (WAN) connecting disparate local area networks of a single organization into a single network.

A) value-added B) global C) enterprise D) overlay E) personal area Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

26

89) ________ are private, third-party-managed WANs typically used for B2B communications.

A) Value-added networks B) Enterprise networks C) Global networks D) Local area networks E) Personal area networks Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 90) A(n) ________ network is an emerging technology that uses wireless communication to exchange data between computing devices using short-range radio communication, typically within an area of 10 meters.

A) value-added B) local area C) personal area D) enterprise E) campus area Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 91) ________ is based on the concept of turn taking and enables millions of users to send large and small chunks of data across the network concurrently.

A) Unicode B) Batch processing C) Packet switching D) JavaScript E) An interexchange carrier Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

27

92) The ________ model represents a group of specific tasks as successive layers that enable computers to communicate data.

A) redundant array of independent disks (RAID) B) arithmetic logic unit (ALU) C) Open Systems Interconnection (OSI) D) Internet exchange point (IXP) E) integrated services digital network (ISDN) Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 93) ________ is a LAN protocol using packet switching developed by the Xerox Corporation in 1976.

A) JavaScript B) Flash memory C) Ethernet D) Compiler E) Primary key Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 94) In which of the following network topologies are all the nodes or workstations connected to a central hub through which all messages pass?

A) square network B) mesh network C) bus network D) ring network E) star network Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

28

95) A ________ network is configured in the shape of a closed loop or circle with each node connecting to the next node.

A) square B) mesh C) star D) ring E) bus Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 96) A ________ network consists of computers and other devices that are either fully or partially connected to each other.

A) square B) mesh C) star D) ring E) bus Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 97) ________ is the set of rules that governs how a given node or workstation gains access to the network to send or receive data.

A) Packet switching B) Authentication service C) Source code D) Object-oriented language E) Media access control Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

29

98) Which of the following methods uses high-frequency light waves to transmit signals on an unobstructed path between nodes?

A) Bluetooth B) wireless LAN C) high-frequency radios D) infrared line of sight E) microwave systems Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 99) Wireless local area networks (WLANs) based on a family of standards called 802.11 are also referred to as ________.

A) Bluetooth B) wireless fidelity (Wi-Fi) C) Ethernet D) personal area networks E) infrared line of sight Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 100) ________ transmission uses high-frequency radio signals that are sent through the air using either terrestrial (earth-based) or satellite systems.

A) Rayleigh surface wave B) Heat wave C) Ultraviolet D) Microwave E) Infrared Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

30

101) Which of the following methods is used for random access control in wireless LAN? A) code division multiple access B) carrier sense multiple access C) hybrid coordination function D) group packet radio service E) point coordination function Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 102) Which of the following statements is true of a bus network topology?

A) A bus network is configured in the shape of a closed loop or circle with each node connecting to the next node.

B) In a bus network, messages move in one direction around a circle.

C) A bus network topology enables all network nodes to receive the same message through the network cable at the same time.

D) The configuration of bus networks facilitates easy diagnosis and isolation of network faults.

E) In a bus network, all nodes or workstations are connected to a central hub through which all messages pass.

Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 103) A data packet that conforms to the Internet Protocol (IP) specification is called an IP ________.

A) dataunit B) datagram C) function D) workunit E) message packet Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

31

104) Different types of data can travel on Ethernets by being enclosed in another set of headers to form packets called Ethernet ________.

A) sets B) frames C) sessions D) links E) packages Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 105) A ________ allows the use of Ethernet connections to connect to broadband modems, home networks, or work networks.

A) transceiver B) multiport repeater C) cable router D) network interface card E) modular connector Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 106) A(n) ________ is a unique identifier assigned on the network interface cards by the manufacturers to identify the computers on the network.

A) Internet protocol (IP) configuration B) Internet protocol (IP) address C) media access control (MAC) address D) port address E) network key Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

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107) A ________ is a networking hardware component that manages multiple access points and can be used to manage transmission power and channel allocation to establish desired coverage throughout a building and minimize interference between individual access points.

A) router B) wireless controller C) network switch D) modem E) network interface card Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 108) Which of the following entities is responsible for managing global and country code toplevel domains, as well as global Internet Protocol (IP) number space assignments?

A) American Registry for Internet Numbers B) World Wide Web Consortium C) Internet Assigned Numbers Authority D) Internet Governance Forum E) European Organization for Nuclear Research Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 109) A ________ is a device that converts digital signals from a computer into analog signals so that telephone lines may be used as a transmission medium to send and receive electronic data.

A) modem B) LAN card C) network adapter D) PCI connector E) USB port Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept

33

110) Which of the following Internet connectivity technologies enables data to be sent over existing copper telephone lines by sending digital pulses in the high-frequency area of telephone wires?

A) integrated services digital network technology B) digital subscriber line technology C) dial-up service technology D) cable modem technology E) fiber-to-home technology Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Concept 111) A ________ key is a unique identifier that should be created and used when designing a database for each type of entity, in order to store and retrieve data accurately.

A) foreign B) surrogate C) primary D) super E) candidate Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept 112) A ________ key refers to an attribute that appears as a non-primary key attribute in one entity and as a primary key attribute (or part of a primary key) in another entity.

A) primary B) table C) foreign D) super E) candidate Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept

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113) Which of the following database models represent entities as two-dimensional tables, with records as rows, and attributes as columns?

A) relational database model B) hierarchical database model C) network database model D) object-oriented database model E) semantic database model Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept 114) ________ is a technique to make complex databases more efficient and more easily handled by the database management system (DBMS).

A) Assertion B) Exception handling C) Normalization D) Model elimination E) Structural induction Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept

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115) Describe the primary storage used in computer systems.

Answer: Random-access memory (RAM), also called main memory, is located on the motherboard and is used to store the data and programs currently in use. Within the central process unit (CPU) itself, registers provide temporary storage locations where data must reside while it is being processed or manipulated. For example, if two numbers are to be added together, both must reside in registers, with the result placed in a register. Consequently, the number and size of the registers can also greatly influence the speed and power of a CPU. A cache is a small block of memory used by processors to store those instructions most recently or most often used. Thanks to cache memory, before performing an operation, the processor does not have to go directly to main memory, which is farther away from the microprocessor and takes longer to reach. Instead, it can check first to see if needed data is contained in the cache.

Cache memory is typically located inside the microprocessor. Modern CPUs have a hierarchy of cache memory (level 1, level 2, or even level 3); the lower levels of cache memory are faster but also smaller and more expensive. The more cache available to a CPU, the better the overall system performs because more data is readily available.

Read-only memory (ROM) is used to store programs and instructions that are automatically loaded when the computer is turned on, such as the basic input/output system (BIOS).

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.1: Discuss foundational information systems (IS) hardware concepts.

Classification: Concept 116) List the common tasks of an operating system.

Answer: The common tasks of an operating system include the following: - Booting (or starting) a computer - Reading programs into memory and managing memory allocation - Managing where programs and files are located in secondary storage - Maintaining the structure of directories and subdirectories - Formatting disks - Controlling the computer monitor - Sending documents to the printer Operating systems (whether for large mainframe computers or for small notebook computers) perform similar operations. Obviously, large multiuser supercomputers are more complex than small desktop systems; therefore, the operating system must account for and manage that complexity.

AACSB: Information technology Difficulty: Easy Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept

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117) List the common types of computer software utilities and briefly explain their functions.

Answer: 1. Backup utilities archive files from the hard disk to tapes, flash drives, or other storage devices.

2. File defragmentation utilities convert fragmented files (i.e., files not stored contiguously) on the hard disk into contiguous files that will load and be manipulated more rapidly.

3. Disk and data recovery utilities allow the recovery of damaged or erased data from hard disks and flash drives.

4. Data compression utilities compress data by substituting a short code for frequently repeated patterns of data, much like the machine shorthand used by court reporters, allowing more data to be stored on a disk.

5. File conversion utilities translate files from one format to another so that they can be used by applications other than those used to create it.

6. Antivirus utilities scan files for viruses and remove or quarantine any virus found.

7. Device drivers allow adding new hardware to a computer system, such as game controllers, printers, scanners, and so on, to function with the computer's operating system.

8. Spam blockers monitor users' incoming e-mail messages and filter or block unwanted messages from arriving.

9. Spyware detection and removal utilities scan the computer for spyware and disable or remove any spyware found.

10. Media players allow users to listen to music or watch video on a computer.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 118) Compare and contrast compilers and interpreters.

Answer: A compiler takes an entire program's source code written in a programming language and converts it into an executable, i.e., a program in machine language that can be read and executed directly by the computer. Although the compilation process can take quite some time (especially for large programs), the resulting executables run very fast; thus, programs are usually compiled before they are sold as executables to the customers.

Some programming environments do not compile the entire program into machine language.

Instead, each statement of the program is converted into machine language and executed "on the fly" (i.e., one statement at a time). The type of program that does the conversion and execution is called an interpreter. As the source code is translated each time the program is run, it is easy to quickly evaluate the effects of any changes made to the program's source code. However, this also causes interpreted programs to run much slower than compiled executables. Programming languages can be either compiled or interpreted.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Synthesis

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119) Write a brief note on object-oriented programming languages.

Answer: Object-oriented languages are the most recent in the progression of high-level programming languages and are extremely popular with application developers. Object-oriented languages use common modules (called objects), which combine properties and behaviors to define the relevant system components. An example of an object would be a specific student who has a name, an address, date of birth (i.e., the properties), but can also perform certain operations, such as register for a class (the behaviors). If an object-oriented programming language is being used, it enables the design and implementation of the objects to happen quickly and simultaneously, as oftentimes, preexisting objects can be reused or adapted.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.2: Describe foundational topics related to system software, programming languages, and application development environments.

Classification: Concept 120) Compare and contrast centralized and distributed computing.

Answer: Centralized computing remained largely unchanged through the 1970s. In this model, large centralized computers, called mainframes, were used to process and store data. During the mainframe era (beginning in the 1940s), people entered data on mainframes through the use of local input devices called terminals. These devices were called "dumb" terminals because they did not conduct any processing, or "smart," activities. The centralized computing model is not a true network because there is no sharing of data and capabilities. The mainframe provides all the capabilities, and the terminals are only input/output devices. Computer networks evolved in the 1980s when organizations needed separate, independent computers to communicate with each other.

The introduction of personal computers in the late 1970s and early 1980s gave individuals control over their own computing. Organizations also realized that they could use multiple small computers to achieve many of the same processing goals of a single large computer. People could work on subsets of tasks on separate computers rather than using one mainframe to perform all the processing. To achieve this goal, computer networks were needed so that data and services could be easily shared between these distributed computers. The 1980s were characterized by an evolution to a computing model called distributed computing in which multiple types of computers are networked together to share data and services.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Synthesis

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121) Distinguish between local area and wide area networks.

Answer: A local area network (LAN) is a computer network that spans a relatively small area, allowing all computer users to connect with each other to share data and peripheral devices, such as printers. LAN-based communications may involve the sharing of data, software applications, or other resources between several users. LANs typically do not exceed tens of kilometers in size and are typically contained within a single building or a limited geographical area. They typically use only one kind of transmission medium or cabling, such as twisted-pair wire or coaxial cable. There are also wireless local area network products available. These are very popular because they are relatively easy to set up, and they enable users to have a network without any network cables strewn around their homes or offices.

A wide area network (WAN) is a computer network that spans a relatively large geographical area. WANs are typically used to connect two or more LANs. Different hardware and transmission media are often used in WANs because they must cover large distances efficiently.

Used by multinational companies, WANs transmit and receive data across cities and countries.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Synthesis

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122) Compare and contrast star network, ring network, bus network, and mesh network topologies.

Answer: Network topology refers to the shape of a network. The four common network topologies are star, ring, bus, and mesh.

A star network is configured in the shape of a star. That is, all nodes or workstations are connected to a central hub, or concentrator, through which all messages pass. The workstations represent the points of the star. Star topologies are easy to lay out and modify. However, they are also the most costly because they require the largest amount of cabling. Although it is easy to diagnose problems at individual workstations, star networks are susceptible to a single point of failure at the hub that would result in all workstations losing network access.

A ring network is configured in the shape of a closed loop or circle with each node connecting to the next node. In ring networks, messages move in one direction around the circle. As a message moves around the circle, each workstation examines it to see whether the message is for that workstation. If not, the message is regenerated and passed on to the next node. This regeneration process enables ring networks to cover much larger distances than star or bus networks can.

Relatively little cabling is required, but a failure of any node on the ring network can cause complete network failure. Self-healing ring networks avoid this by having two rings with data flowing in different directions; thus, the failure of a single node does not cause the network to fail. In either case, it is difficult to modify and reconfigure a ring network. Ring networks normally use some form of token-passing media access control method to regulate network traffic.

A bus network is in the shape of an open-ended line; as a result, it is the easiest network to extend and has the simplest wiring layout. This topology enables all network nodes to receive the same message through the network cable at the same time. However, it is difficult to diagnose and isolate network faults. Bus networks use variants of CSMA for media access control.

A mesh network consists of computers and other devices that are either fully or partially connected to each other. In a full mesh design, every computer and device is connected to every other computer and device. In a partial mesh design, many, but not all, computers and devices are connected. Like a ring network, mesh networks provide relatively short routes from one node to another. Mesh networks also provide many possible routes through the network–a design that prevents one circuit or computer from becoming overloaded when traffic is heavy. Given these benefits, most WANs, including the Internet, use a partial mesh design.

AACSB: Information technology Difficulty: Difficult Learning Objective: AP.3: Describe foundational networking and Internet concepts.

Classification: Synthesis

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123) Give a brief description of the relational model of database management.

Answer: The primary database management system (DBMS) approach, or model, for keeping track of relationships among data entities is the relational model. The most common DBMS approach in use today is the relational database model. A DBMS package using this approach is referred to as a relational DBMS. With this approach, the DBMS views and presents entities as two-dimensional tables with records as rows and attributes as columns. Tables can be joined when there are common columns in the tables. The uniqueness of the primary key tells the DBMS which records should be joined with others in the corresponding tables. This structure supports very powerful data manipulation capabilities and linking of interrelated data. Database files in the relational model are three-dimensional: a table has rows (one dimension), columns (a second dimension), and can contain rows of attributes in common with another table (a third dimension). This three-dimensional database is potentially much more powerful and useful than traditional, two-dimensional, "flat-file" databases. A good relational database design eliminates unnecessary data duplications and is easy to maintain.

AACSB: Information technology Difficulty: Moderate Learning Objective: AP.4: Explain foundational database management concepts.

Classification: Concept

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