Information Technology for Management Advancing Sustainable, Profitable Business Growth, 9th Edition

Information Technology for Management Advancing Sustainable, Profitable Business Growth, 9th By Edition Turban, Volonino, Wood

Chapter 1: A Look Toward the Future of Information Technology Test Bank Multiple Choice 1. What is a primary reason why businesses ask you to like, follow, fan, share, sign up, watch, join, or download things on the Internet? a. b. c. d.

To get access to consumers and data about them to improve performance.

To reduce advertising and public relations costs.

Because consumers are spending an increasing amount of time on the Internet.

Because traditional television and print advertising is not very effective.

Answer: (A) Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

2. All of the following current technology trends are identified by your textbook as offering valuable business opportunities except: a. b. c. d.

Social media, Mobile computing Cloud computing 3D technologies

Answer: (D) Difficulty: Easy Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

3. Data analytics can help companies achieve these business outcomes, except: a. b. c. d.

Retain the most profitable customers.

Continuously improve operational efficiency.

Transform and automate financial processes.

Define company mission.

Answer: (D) Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Analytic skills 4. Which of the following is not considered a form of messy data? a. b. c. d.

Cash register transactions Tweets Posts or comments Images

Answer (A) Difficulty: Easy Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology 5. Most research and consulting firms agree that ______________ to gain insights and a competitive edge is one of the biggest opportunities and challenges facing managers. a. b. c. d.

Finding low cost data Properly formatting data Identifying unique data sources Using data analytics

Answer: (D) Difficulty: Hard Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Reflective thinking skills

6. Data analytic processes include all of the following activities except: a. Locating and collecting reliable data from multiple sources that are in various formats. b. Preparing the data for analysis. c. Performing the correct analyses, verifying the analyses, and then reporting the findings in meaningful ways. d. Processing payment to information vendors/suppliers.

Answer: (D) Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Analytic skills

7. Productivity is a measure of efficiency and equal to ___________ / __________ a. b. c. d.

Outputs / Inputs Profits / Losses Expenses / Revenues Good Information / Poor Information

Answer (A) Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills 8. IT department’s understanding of strategy, risks, and opportunities; and the business’ understanding of IT’s potential and limitations is referred to as: a. b. c. d.

Business process reengineering IT and Business Alignment Strategic Planning Competitive advantage

Answer (B) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

9. Examples of _______________ that can be facilitated by IT are customer order processing, credit approval, opening a new account, order fulfillment, processing an insurance claim, and shipping a product. a. b. c. d.

Strategic activities Business processes Planning activities Competitive advantages

Answer (B) Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

10. The goal of _____________________ is to eliminate the unnecessary non–value added processes, then to simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs. a. b. c. d.

Strategic Planning Business process reengineering (BPR) Real-time information systems Business Intelligence

Answer (B) Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 11. In terms of IT reliability and efficiency, managers and others need to know that they can trust the data—be able to rely on the each of the following characteristics except: a. b. c. d.

Accuracy Availability Strategic fit Security

Answer: (C) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

12. Integration, computation, and analysis of massive data repositories to gain a competitive advantage by identifying trends and relationships in organizational data, and/or creating or taking advantage of business opportunities is the function of: a. b. c. d.

Business Intelligence (BI) Real-time systems Cloud computing Mobile computing

Answer: (A) Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

13. Which of the following is not an option for maximizing the benefits of cloud computing: a. b. c. d.

Build a private cloud, Mobilize a transient cloud Lease a public cloud Build a hybrid cloud.

Answer: (B) Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

14. Which if the following is not considered a benefit of cloud computing: a. b. c. d.

Agility – example: near instantaneous increases or reductions in capacity Efficiency – example: improved asset utilization Innovation – example: better linkage to emerging technologies Security – example: increased protection of sensitive or proprietary data

Answer: (D) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

15. Collaboration and workflow tools help people work together in an organized way and manage their tasks more effectively regardless of a. b. c. d.

Their location.

Access to the Internet.

Incompatible technologies.

Differences in language and culture.

Answer: A Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 16. How a company generates revenue from its assets is referred to as its __________. a. asset infrastructure b. business model c. corporate culture d. organizational structure Answer: B Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

17. The importance of being an agile enterprise has increased significantly because of _________ and _________. a. b. c. d.

Competition; slowed population growth Social networks; rapid economic recovery Slow economic recovery; advances in mobile technology Rapid population growth; corporate strategy

Answer: C Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

18. Zipcar rents automobiles for short periods and cut its costs by eliminating rental centers, thus increasing profits. This statement defines Nokia’s business __________. a. b. c. d.

Model Channel Supply chain Value proposition

Answer: A Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

19. The Internet of Things describes a network of: a. b. c. d.

Personal connections – people from around the world An online directory of global IT vendors The listing of URL addresses compiled by search engines Equipment or devices connected to the Internet or networked via sensors

Answer: D Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

20. Farm equipment with ground sensors can take into account crop and field conditions, and adjust the amount of fertilizer that is spread on areas that need more nutrients. This is made possible by: a. b. c. d.

Social Media The Internet of Things Improved Strategic Planning Processes Changes in environmental regulations and laws

Answer: B Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

21. Which if the following is not an example of the Internet of Things is being used by businesses? a. A network of ground sensors that allow agricultural operations to adjust the amount of fertilizer and water applied to specific field locations. b. Sensors in shoppers club cards that make it possible for retailers to offer discounts or promotions to consumers at the point of sale. c. Sensors in rental cars that allow companies to base rates on the driving behavior of their customers d. Sensors on packages of cereal, pasta, soup or other food products made for children that allow companies to determine young consumer’s satisfaction with the nutritional value of the product.

Answer: D Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

22. Based on survey responses in 2010, from 472 organizations, all of the following were described as the most influential ITs except: a. b. c. d.

Business Intelligence (BI) Cloud Computing Database Systems Collaboration and Workflow tools

Answer: C Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

23. Based on survey responses in 2010, from 472 organizations, all of the following were described as the top 5 Management Concerns, except: a. b. c. d.

Business productivity and cost reduction IT and business alignment Realigning corporate culture with market needs Business process reengineering

Answer: C Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

24. Which of the following is not one of the “Characteristics of High Quality Information” described in your textbook? a. b. c. d.

Relevant Competitively priced Timely Easy to understand and use

Answer (B) Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

25. Which of the following is not one of the attributes of an IT operation discussed in your textbook that gives a company competitive advantage? a. b. c. d.

Agility – ability to respond quickly.

Cutting Edge – only uses the latest, most advanced technology.

Responsiveness – ability to scale IT capacity up or down as needed.

Flexibility – ability to quickly integrate new functions or reconfigure software and apps.

Answer: B Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

26. According to the textbook, IT agility, flexibility, and mobility are tightly interrelated and primarily dependent on: a. b. c. d.

An organization’s IT infrastructure and architecture The IT division’s strategic hiring and training practices IT’s integration with production and accounting units Strategic alignment between IT budget and company mission statement

Answer: A Difficulty: Hard Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

27. Susan recently received a new iPad for her birthday. Even though she owns the device, she finds that she is increasingly using it for her work as a traveling sales person because it allows her to access email and important company information while she is away from the office. Susan’s use of personally owned technology is part of a trend called ____________________. a. b. c. d.

Mixed use IT Employer IT cost shifting IT consumerization Unauthorized IT risk

Answer: C Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 28. Using a combination of mobile and database technology, Papa Romano’s Pizza House keeps records of the pizza preferences of all its customers. Tommy likes ordering from Papa Romano’s because when he calls, he just says “send me the usual” and hangs up. They already know where he lives, what kind of pizza he wants and what credit card to bill. The big increase in ordering and fulfillment efficiency represents a(n) _________________ for Papa Romano’s. a. b. c. d.

Operational Cost Strategic Mission Competitive Advantage Structural IT component

Answer: C Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

29. According to the research firm Gartner, the first part of the Information Age focused on the development of technology itself. In the second part of the Information Age, technology is everywhere and the key challenge is to ___________________ a. b. c. d.

Create even more powerful IT Reduce reliance on IT Reduce IT costs Create novel uses of IT to gain competitive advantage.

Answer: D Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

30. According to your textbook, two key components of corporate profitability are 1) industry structure and 2) ________________. a. b. c. d.

Technological adaptability IT proficiency Competitive advantage Corporate management style

Answer: C Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

31. IT functions that do not provide a competitive advantage, such as computers, databases and network services are examples of _____________. a. b. c. d.

IT commodities IT specialties Niche IT areas IT domains

Answer: A Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

32. Strategic planning or analysis begins by identifying trends in all the following areas except: a. b. c. d.

Political Informational Technological Economic

Answer: B Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 33. SWOT Analysis involves analyzing a company’s competitive situation on all of the following factors except: a. b. c. d.

Strengths Weakness Opportunities Technology (IT)

Answer: D Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

34. __________ involves the evaluation of strengths and weaknesses, which are internal factors; and opportunities and threats, which are external factors. a. b. c. d.

Strategic analysis Business performance Operational planning SWOT analysis

Answer: D Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Use of information technology

35. Price wars or other fierce reactions by competitors are examples of: a. b. c. d.

Strengths Weaknesses Opportunities Threats

Answer: D Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Use of information technology

36. The _________________ process is designed to answer the following types of questions: • What is the long-term direction of our business?

• What is the overall plan for deploying our resources?

• How do we achieve competitive advantage over rivals in order to achieve or maximize profitability? a. b. c. d.

Enterprise Resource Planning (ERP) Business Intelligence (BI) Strategic Planning Marketing Research

Answer: C Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

37. According to the business strategy model developed by Harvard Business professor Michael Porter’s, an industry’s profit potential is largely determined by _____________. a. b. c. d.

The intensity of competitive forces within the industry Availability of necessary resources to produce the product/service Technological proficiency of companies in the industry Availability of skilled and unskilled labor

Answer: A Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

38. According to the Five Forces Model developed by Harvard Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except: a. b. c. d.

Threat of entry of new competitors Political and/or economic factors Bargaining power of suppliers Threat of substitute products/services

Answer: B Difficulty: Hard Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

39. According to the Five Forces Model developed by Harvard Business professor Michael Porter, all of the following are major factors that determine a company’s standing in an industry, except: a. b. c. d.

Competitive rivalry among firms existing in the industry Bargaining power of suppliers Bargaining power of customers or buyers Technological (IT) superiority

Answer: D Difficulty: Hard Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 40. Harvard Business professor Michael Porter proposed that companies could follow one of three different competitive strategies. Which of the following is not one of Porter’s recommended strategies? a. b. c. d.

Low price strategy Cost leadership strategy Differentiation strategy Niche strategies

Answer: A Difficulty: Hard Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

41. Primary activities are those business activities through which a company produces goods, thus creating value for which customers are willing to pay. They include all of the following except: a. b. c. d.

Inbound logistics, or acquiring and receiving of raw materials and other inputs Human Resources, including hiring, compensation and negotiating labor disputes Outbound logistics, which includes packaging, storage, delivery, and distribution Marketing and sales to customers

Answer: B Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 42. A ____________________ is an IS that provides fast-enough access to information or data so that an appropriate decision can be made, usually before the data or situation changes. a. b. c. d.

Real-time system Database system Mobile system Advanced network system

Answer: A Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Use of information technology 43. Many of today’s businesses are being run by employees on their own devices, rather than on equipment specified and purchased by the IT department. This is sometimes referred to as the consumerization of IT, but also known by the term: a. b. c. d.

IT Fragmentation Multiple IT Platform Network Bring Your Own Device (BYOD) Variable Equipment Infrastructure (VEI)

Answer: D Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Use of information technology

44. In 2011, CareerCast determined __________________ to be the best job to have in today’s economy, thanks largely to the rise of cloud computing. e. f. g. h.

Software engineers Network administrators IT Security Analysts Data Analysts

Answer: A Difficulty: Medium Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

45. Because of the shift to cloud computing, there is growing demand for professionals and managers who are more focused on _________________ than they are in application development. i. j. k. l.

Cost reduction and efficiencies IT Training programs Cyber security systems Business development

Answer: D Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

46. _______________________________ evaluate the newest and most innovative technologies and determine how they can be applied for competitive advantage. They develop technical standards, deploy technology, and supervise workers who deal with the daily IT issues of the firm. They frequently report to the Chief Information Officer (CIO). m. IT Project Directors n. Chief Technology Officers o. Directors of Computing Technology p. IT Designers Answer: B Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

47. Which of the following technology trends is cited in your textbook as being responsible for changing the nature of many IT jobs? q. r. s. t.

More sophisticated Web Sites Social Media Cloud Computing Increase in mobile devices

Answer: C Difficulty: Medium Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy 48. _____________________ develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation, working with their organization’s IT workers, as well as clients, vendors, and consultants. u. IT Project Directors v. Chief Technology Officers w. Directors of Computing Technology x. IT Designers Answer: A Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

49. According to projections by the U.S. Bureau of Labor Statistics, prospects for IT jobs, in terms of salary and job growth between 2010-2010 are: y. Somewhat below average compared to other types of jobs. z. About average compared to other types of jobs. aa. Above average compared to other types of jobs. bb. Difficult to project because of rapid changes in technology Answer: C Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

50. For most organizations, if their ________________ goes down, so does the business. cc. Web site dd. Computer network ee. Data analytics program ff. Facebook page Answer: C Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Use of information technology

True/False 1. Crowdfunding is a way to raise money (capital) for new projects by asking for contributions from a large number (crowd) of people via the Web. Answer: True Difficulty: Easy Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

2. Messy data is the term used to refer to data (e.g., tweets, posts, click streams, images, including medical images) that cannot be organized in a way that a computer can easily process.

Answer: True Difficulty: Easy Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

3. Most research and consulting firms agree that using data analytics to gain insights and a competitive edge is one of the biggest opportunities and challenges facing managers.

Answer: True Difficulty: Analytic skills Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: 4. The phrase “paralysis of analysis” describes situations where companies lose agility and flexibility in the hope of gathering perfect data when making time-sensitive decisions.

Answer: True Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

5. Business Intelligence (BI) is considered one of the top 5 most influential ITs. Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

6. Cloud Computing is considered one of the top 5 most influential ITs. Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

7. Enterprise Resource Planning (ERP) is considered one of the top 5 most influential ITs. Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

8. Software as a Service (SaaS) is considered one of the top 5 most influential ITs. Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

9. Collaboration and workflow tools are considered one of the top 5 most influential ITs. Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

10. Business productivity and cost reduction is considered one of the top 5 most pressing management concerns.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

11. IT and business alignment is considered one of the top 5 most pressing management concerns.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

12. Business process reengineering (BPR) is considered one of the top 5 most pressing management concerns.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

13. IT reliability and efficiency is considered one of the top 5 most pressing management concerns.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

14. In the most recent recession businesses executives frequently reduced IT expenses to cut costs.

Answer: False Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Dynamics of the global economy

15. In the current economic climate, business executives rely on IT to help cut costs and boost productivity.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

16. The importance of an agile enterprise, one that has the ability to adapt and respond rapidly, has never been greater because of struggling economic recoveries and advances in mobile and social technologies.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Dynamics of the global economy

17. Federal and state regulations have made data privacy and protection a legal requirement and impose huge fines for violations.

Answer: True Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Dynamics of the global economy

18. Business Intelligence involves the integration, computation, and analysis of massive data repositories.

Answer: True Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

19. Cloud computing can often make it difficult to deploy tools that can scale on demand to serve a growing number of users.

Answer: False Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

20. A private cloud allows companies to avoid purchasing and managing certain hardware and software while still delivering their IT services.

Answer: False Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

21. Enterprise Resource Planning refers to a technology infrastructure that employs software modules for accounting, inventory management module, supply chain management and other mission critical business processes.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 22. Because of high costs and need for control, IT managers are typically reluctant to move ERP systems to the cloud.

Answer: False Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 23. With a Software as a Service (SaaS) arrangement, companies pay for their software usage based on a subscription fee or on a per usage basis.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 24. With typical Software as a Service (SaaS) arrangements, companies purchase and install enterprise software on company owned computers and agree to adhere to traditional copyright regulations.

Answer: False Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 25. Collaboration and Workflow Tools help people work together in an organized way and manage their tasks more effectively regardless of their access to the Internet.

Answer: False Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

26. The Internet of Things is an online directory of IT equipment vendors from around the globe.

Answer: False Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

27. The Internet of Things describes a network of equipment or devices connected to the Internet or networked via sensors.

Answer: True Difficulty: Easy Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

28. One disadvantage to the Internet of Things is that it reduces the amount of data available to companies about consumer behavior.

Answer: False Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

29. The Internet of Things captures huge volumes of data that can be used by companies to better understand business processes.

Answer: True Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 30. Cloud computing technology increases a company’s competitiveness by making it more responsive – scaling IT capacity up or down as needed.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

31. IT consumerization is the migration of consumer technology into enterprise computing environments because personally-owned IT is as capable and cost-effective as its enterprise equivalents.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

32. IT consumerization is the trend where an increasing number of residential computer users are hiring contractors to install and maintain in-home Wi-Fi networks for purposes of entertainment, personal computing and small business operations.

Answer: False Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

33. Competitive advantage is a difference between a company and its competitors that matters to customers.

Answer: True Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

34. Computers, databases, and network services are examples of IT commodities.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

35. Advanced IT applications that create competitive advantages are examples of IT commodities.

Answer: False Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

36. IT commodities can become competitive advantages if they are applied in new and unique ways to support profitable or critical business processes.

Answer: True Difficulty: Hard Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 37. In the second part of the Information Age, technology is everywhere and the key challenge is to apply IT to reduce reliance on IT in order to cut costs and become more profitable.

Answer: False Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

38. In the second part of the Information Age, technology is everywhere and the key challenge is to apply IT to gain competitive advantage.

Answer: True Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

39. IT functions that do not provide a competitive advantage, such as computers, databases and network services are examples of IT commodities.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

40. Computers, databases and network services are examples of IT functions with a strong potential for providing companies with competitive advantage Answer: False Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

41. The goal of business process reengineering (BPR) is to eliminate the unnecessary non–value added processes, then to simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills 42. Enterprise Resource Planning (ERP) refers to technology infrastructure and/or apps that support essential business processes and operations.

Answer: True Difficulty: Easy Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 43. Enterprise Resource Planning (ERP) refers to software applications specifically designed to help businesses gather and make use of business intelligence (BI).

Answer: False Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 44. Strategic planning is critical for “for-profit” organizations, but less essential for “not-forprofit” organizations such as government agencies, education, military, and charities that are guided by political or humanitarian goals.

Answer: False Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

45. Strategic planning is a series of processes in which an organization selects and arranges its businesses or services to keep the organization viable (healthy or functional) even when unexpected events disrupt one or more of its businesses, markets, products, or services.

Answer: True Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

46. Strategy defines the plan for how a business will achieve its mission, goals, and objectives.

Answer: True Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 47. According to Porter’s strategic planning model, an industry’s profit potential is largely determined by the intensity of competitive forces within the industry.

Answer: True Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 48. According to Porter’s strategic planning model, an industry’s profit potential is largely determined by the availability of necessary resources to produce the product/service.

Answer: False Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

49. Primary activities are those business activities through which a company produces goods, thus creating value for which customers are willing to pay such as purchasing of materials, processing materials into products, and delivery of products to customers.

Answer: True Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

50. Management of IT development would most likely be considered a primary activity in a business value chain.

Answer: False Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

51. Management of IT development would most likely be considered a support activity in a business value chain.

Answer: True Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

52. A real-time system is an IS that provides fast-enough access to information or data so that an appropriate decision can be made, usually before the data or situation changes.

Answer: True Difficulty: Easy Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Use of information technology 53. IT creates markets, businesses, products, and careers.

Answer: True Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Use of information technology 54. According to projections by the U.S. Bureau of Labor Statistics, prospects for IT jobs, in terms of salary and job growth between 2010-2010 are above average compared to other types of jobs Answer: True Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

55. According to projections by the U.S. Bureau of Labor Statistics, prospects for IT jobs, in terms of salary and job growth between 2010-2010 are about average compared to other types of jobs.

Answer: False Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

56. IT Project Directors develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation, working with their organization’s IT workers, as well as clients, vendors, and consultants.

Answer: True Difficulty: Medium Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

57. Chief Information Officers (CIOs) develop technical standards, deploy technology, and supervise workers who deal with the daily IT issues of the firm and typical report to Chief Technology Officers (CTOs) Answer: False Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy 58. For most organizations, if their computer network goes down, so does the business.

Answer: True Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy 59. Social Media is cited in your textbook as being widely responsible for changing the nature of many IT jobs.

Answer: False Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy 60. Cloud computing is cited in your textbook as being widely responsible for changing the nature of many IT jobs.

Answer: True Difficulty: Easy Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

Short Answer 1. Faced with business challenges, as a manager you need to implement IT solutions and track how well they improve _______________.

Answer: performance.

Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

2. _____________ refers to the specialized software, capabilities, and components all geared toward exploring huge volumes of data to provide greater insight and intelligence—and doing so quickly.

Answer: Data analytics Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

3. ________________ is the term used to refer to data (e.g., tweets, posts, click streams, images, including medical images) that cannot be organized in a way that a computer can easily process.

Answer: Messy data Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

4. Huge sets of messy data from sources such as multi-petabyte data warehouses, social media, and mobile devices are called _______________.

Answer: Big data Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

5. Examples of productivity _________ include the number of units manufactured or sold, the number of customers serviced, or the value of new deposits.

Answer: Outputs Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

6. Examples of productivity _________ include things like number of labor hours, amount of raw materials, and technology.

Answer: Inputs Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

7. A(n) _________________, is an organization that has the ability to adapt and respond rapidly.

Answer: agile enterprise Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills

8. The goal of _____________________________ is to eliminate the unnecessary non–value added processes, then simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs.

Answer: business process reengineering (BPR) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills 9. __________________ makes it possible for many users to access the same apps and from any networked location because they are stored (hosted) on a powerful shared infrastructure.

Answer: Cloud Computing Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

10. _________________________________ refers to technology infrastructure and/or apps that support essential business processes and operations such as accounting, inventory management and supply chain management.

Answer: Enterprise Resource Planning (ERP) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 11. With a ________________________ arrangement, companies pay for their software usage based on a subscription fee or on a per usage basis.

Answer: Software as a Service (SaaS) Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 12. ____________________________ help people work together in an organized way and manage their tasks more effectively regardless of their location.

Answer: Collaboration and workflow tools Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology 13. A _________________describes how a company actually operates—how work is done, the degree of automation, the pricing and design of products or services, and how the company generates sales revenue and profit to sustain itself.

Answer: Business model Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Reflective thinking skills 14. The __________________describes a network of equipment or devices connected to the Internet or networked via sensors.

Answer: Internet of things Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

15. To maintain a competitive advantage, company IT operations needs to be __________ meaning being able to respond quickly.

Answer: Agile Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 16. To maintain a competitive advantage, company IT operations needs to be ____________ meaning that IT capacity can be easily scaled up or down as needed.

Answer: Responsive Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 17. To maintain a competitive advantage, company IT operations needs to be __________ meaning having the ability to quickly integrate new business functions or to easily reconfigure software or apps.

Answer: Flexible Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

18. IT _____________________ is the migration of consumer technology into enterprise computing environments because personally-owned IT is as capable and cost-effective as its enterprise equivalents.

Answer: Consumerization Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology

19. Using a combination of mobile and database technology, Papa Romano’s Pizza House keeps records of the pizza preferences of all its customers. Tommy likes ordering from Papa Romano’s because when he calls, he just says “send me the usual” and hangs up. They already know where he lives, what kind of pizza he wants and what credit card to bill. The big increase in ordering and fulfillment efficiency represents a(n) _________________ for Papa Romano’s.

Answer: Competitive Advantage Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

20. Computers, databases, and network services are examples of IT _______________.

Answer: Commodities Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Use of information technology 21. In the second part of the Information Age, technology is everywhere and the key challenge is to apply IT to gain ________________.

Answer: Competitive advantage Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Reflective thinking skills

22. ____________________ is a series of processes in which an organization selects and arranges its businesses or services to keep the organization viable (healthy or functional) even when unexpected events disrupt one or more of its businesses, markets, products, or services.

Answer: Strategic Planning Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

23. ________________ is part of the strategic planning process where a firm identifies its strengths, weaknesses, opportunities and threats.

Answer: SWOT Analysis Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

24. ______________ defines the plan for how a business will achieve its mission, goals, and objectives.

Answer: Strategy Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills 25. According to Porter’s strategic planning model, an industry’s profit potential is largely determined by the intensity of _________________ forces within the industry.

Answer: Competitive Difficulty: Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

26. __________________ are those business activities through which a company produces goods, thus creating value for which customers are willing to pay such as purchasing of materials, processing materials into products, and delivery of products to customers.

Answer: Primary activities Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills

27. A ________________ is an IS that provides fast-enough access to information or data so that an appropriate decision can be made, usually before the data or situation changes.

Answer: Real-time system Difficulty: Medium Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Use of information technology

28. In 2011, CareerCast determined __________________ to be the best job to have in today’s economy, thanks largely to the rise of cloud computing.

Answer: Software Engineers Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

29. Because of the shift to cloud computing, there is growing demand for professionals and managers who are more focused on _________________ than they are in application development.

Answer: Business development Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

30. _______________________________ evaluate the newest and most innovative technologies and determine how they can be applied for competitive advantage. They develop technical standards, deploy technology, and supervise workers who deal with the daily IT issues of the firm. They frequently report to the Chief Information Officer (CIO).

Answer: Chief Technology Officers Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy 31. _____________________ develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation, working with their organization’s IT workers, as well as clients, vendors, and consultants.

Answer: IT Project Directors Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Dynamics of the global economy

32. For most organizations, if their ________________ goes down, so does the business.

Answer: Computer Network Difficulty: Hard Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Use of information technology

Essay Questions 1. What is crowdfunding?

Answer: Crowdfunding is an internet based process for raising funds that bypasses traditional sources of raising money (i.e. banks). It involves an integration of social networking, e-commerce, and financing and payment systems. It is used to raise money for a variety of purposes including artistic projects, entrepreneurial projects and charitable giving. Kickstarter.com is the world’s largest crowdfunding site for creative projects.

Difficulty: Hard Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Use of information technology

2. List the 5 types business outcomes companies can achieve with the use of data analytics.

Answer: 1.

2.

3.

4.

5.

Grow their customer base Retain the most profitable customers.

Continuously improve operational efficiency.

Transform and automate financial processes.

Detect and deter fraud.

Difficulty: Hard Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Reflective thinking skills 3. List the four characteristics of High-Quality Information described in your textbook.

Answer: 1. Relevant – Information needs to be relevant to a business decision or process or else it is not useful.

2. Timely - This characteristic means that the decision maker receives the information when he or she needs it 3. Reliable, Accurate - This characteristic means that the information can be trusted and that the decision maker has confidence that information is free from errors, to the extent possible.

4. Easy to Understand or Use - This characteristic means that information is presented clearly, and concisely, and is well-documented.

Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

4. Describe how business process reengineering (BPR) improves productivity.

Answer: The goal of business process reengineering (BPR) is to improve productivity by eliminating unnecessary non–value added business processes, then simplify and automate the remaining processes to significantly reduce cycle time, labor, and costs.

Difficulty: Medium Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

5. Identify and explain at least 3 benefits of a company implementing a cloud computing technology solution.

Answer: 1. Efficiency – Cloud computing can improve productivity and asset utilization.

2. Agility – Cloud computing allows for fast increases or decreases in capacity as well as permits rapid deployment of “as a service” software apps increasing responsiveness to urgent needs.

3. Innovation – Shifts company focus from asset management to service management, encourages an entrepreneurial culture and is better linked to emerging technologies.

Difficulty: Hard Section Ref: 1.2 Positioning IT to Optimize Performance AACSB: Use of information technology

6. Explain how, according to research firm Gartner, the first half of the Information Age differs from the second half.

Answer: In the first half of the Information Age, the focus was on the development of the technology itself. This led to kinds of devices and software applications organizations and consumers use today. In the second half of the Information Age, the focus has shifted to ways that technology can be used to create competitive advantages and exploit opportunities involving new kinds of information.

Difficulty: Medium Section Ref: 1.3 IT Agility, Consumerization, and Competitive Advantage AACSB: Dynamics of the global economy

7. List and explain the five industry (market) forces in Michael Porter’s competitive forces model.

Answer: 1. Threat of entry of new competitors. This force refers to the strength of the barriers to entry into an industry, which is how easy it is to enter an industry. The threat of entry is lower (less powerful) when existing companies have ISs that are difficult to duplicate or very expensive. Those ISs create barriers to entry that reduce the threat of entry.

2. Bargaining power of suppliers. Bargaining power is high where the supplier or brand is powerful; e.g., Apple, Microsoft, and auto manufacturers. Power is determined by how much a company purchases from a supplier. The more powerful company has the leverage to demand better prices or terms, which increase its profit margin.

3. Bargaining power of customers or buyers. This force is the reverse of the bargaining power of suppliers. This force is high where there a few, large customers or buyers in a market.

4. Threat of substitute products or services. As the threat of substitutes increases, profit margin decreases because sellers need to keep prices competitively low.

5. Competitive rivalry among existing firms in the industry. Fierce competition involves expensive advertising and promotions; intense investments in research and development; or other efforts that cut into profit margins.

Difficulty: Hard Section Ref: 1.4 Strategic Planning and Competitive Models AACSB: Reflective thinking skills.

8. Briefly describe the job prospects for IT professionals in the coming decade and identify at least 2 factors for this trend.

Answer: Job prospects for IT professionals in the coming decade are above average in terms of salaries and growth in the number of jobs. Some of the reasons for this growing demand for IT professionals include: [Students might list any of the following] •

Increasing reliance on IT by companies for accomplishing business processes across the value chain. In other words, almost all aspects of an organization are now dependent on IT. As stated in the textbook, if “…the computer network goes down, so does the business.”

•

Emerging technologies, in particular, cloud computing, are dramatically changing how companies utilize IT to carry out their business processes. (Students might also mention other emerging technologies such as mobile, software as a service, enterprise resource planning (ERP), business intelligence, collaboration and workflow tools, social media,

telecommunications, and so on.) Organizations need IT professionals who are skilled in these emerging technologies.

•

Because of the growing role of IT in organizations, IT professionals are needed that not only have technical skills, but understand the integration of IT with business processes, strategic objectives, and the needs of the market place. Business will become increasingly reliant on IT professionals that understand how to translate IT into a competitive advantage.

•

IT is more than a support function. In many industries, it is responsible for creating markets, businesses and products. Entire industries exist today based on technology. Examples include mobile telecommunications, mobile computing devices, e-commerce web sites, ondemand workforces, e-readers, social media and much more.

Difficulty: Medium Section Ref: 1.5 Why IT Is Important to Your Career, and IT Careers AACSB: Reflective thinking skills.

Chapter 2: Information Management and IT Architecture Test Bank Multiple Choice 1. Applications that collect and combine data (e.g. images, audio, video, location data, social data, and so on) from multiple sources, then organize and use them for some new purpose are called _________________. a. b. c. d.

3D data apps Mashups Data merge or data merger apps Multi-source data apps

Answer: B Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

2. The most potentially valuable and challenging type of information is _____________—the semi-structured or unstructured content generated by humans from social media, mobile devices, search engines, and sensors as well as texts, images, audio, and video. a. b. c. d.

Human information Multi-media information Cultural information Qualitative information

Answer: A Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of information technology

3. The “blueprints” that guide and govern software add-ons, upgrades, hardware, systems, networks, cloud services and other IT are known as _________________. a. b. c. d.

IT plans IT architectures IT strategies IT development

Answer: B Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of information technology 4. IT architectures or enterprise architectures are the terms used to describe ________________. a. The “blueprints” that guide and govern software add-ons, upgrades, hardware, systems, networks, cloud services and other IT. b. The working parts of both desktop and mobile computing devices. c. Potential job titles of IT professionals responsible for determining how to put new technology into older buildings. d. A new field of study that combines technology and traditional construction or design concepts.

Answer: Difficulty: Section Ref: 2.1 Information Management in the 2010s AACSB: Use of information technology 5. ______________________ deals with how information is stored and organized; and the speed at which it is captured, analyzed, and reported. a. b. c. d.

Data structure Visual data Technology management Information management

Answer: D Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of information technology

6. Fred Meyer, a chain of retail stores in the Pacific Northwest, has a page on their Web site that pulls address, phone number, store hours, and driving distance information from a variety of sources and plots it onto a digital map created by Bing (Microsoft). Consumers can even generate turn by turn instructions for driving to a specific store location. This kind of multisource, information rich application is called _________________. a. b. c. d.

Cooperative IT integration Data merge or data merger Synching or a data sync A consumer mashup

Answer: D Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

7. ________________combine data from multiple internal and public sources and publishes the results to enterprise portals, dashboards, or the cloud.

a. b. c. d.

Enterprise mashups Complex mashup Information rich mashup Dense mashup

Answer: A Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

8. The overall goal of information management is _______________________ a. To reduce costs and maintain high standards of information security by setting strict guidelines for access b. To design and implement a well–planned out IT architecture, policies, and procedures needed to effectively and efficiently support the information and decision needs of an organization. c. To insure compliance with government regulations regarding privacy, security and confidentiality. d. Reduce the size of an organization’s workforce and reliance on human employees.

Answer: B Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

9. ___________________ are ISs that do not have the capability to exchange data with other ISs making timely coordination and communication across functions or departments difficult. a. b. c. d.

Data warehouses Data (or information) silos Isolated data vaults Traditional information systems

Answer: B Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

10. Most health care organizations are drowning in data, yet cannot get reliable, actionable insights from this data. Information from physician notes, registration forms, discharge summaries, documents and so on often go unused or are difficult for administrators and mangers to access. One of the primary reasons cited in your text for this problem is that _________________. a. Cutbacks in funding for IT departments have reduced their ability to operate effectively b. Users lack training and experience with modern software apps c. The data is “trapped” in silos d. Security policies that are too stringent

Answer: C Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

11. Which of the following was not cited in your text as a primary reason for information inefficiencies – situations where data is not available or being used to create competitive advantages for organizations? a. Data is trapped in silos b. Information is lost or bypassed c. User-fierce formats – apps with poor interfaces or formats that require extra time to figure out or understand d. Prohibitive cost of high quality data.

Answer: D Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

12. _____________ are metrics that define and measure progress toward organizational goals— and deviations from those goals. a. b. c. d.

Data analytics KPIs - Key performance indicators.

Strategic metrics Operational metrics

Answer: D Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking 13. There is an old adage that says “If you can’t measure it, you can’t manage it”. Managers who want to measure and track their organization’s performance will frequently use ____________ to evaluate their company’s progress toward goals. a. b. c. d.

Strategies Standardized data Key Performance Indicators (KPIs) Goal tracking analysis (GTA)

Answer: C Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

14. Stan Marsh is V.P. of sales at Ski Warehouse, a chain of snow sports equipment outlets throughout the rocky mountain and northwest regions of the United States, The company was built over time by purchasing successful independent sporting equipment retailers. Stan now finds it difficult to evaluate some of his store locations because they report their sales figures on a quarterly basis rather than monthly as do the stores in the rest of the company. This is an example of which of the following factors that cause information deficiencies cited in your text? a. b. c. d.

Lost or bypassed data User-fierce interfaces Data silos Non-standardized data

Answer: D Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

15. Trillings College invested over $450,000 in a customized learning management system so that professors could put courses online and use the Internet to deliver course content and communications to students. After the first year of use, only 20% of the faculty were using the system. Administrators were frustrated to learn that most faculty found the system difficult to use, they did not understand how to post student grades and assignments to the new platform and that students also had difficulty understanding how to find information on the system. This case is an example of which of the following information deficiency causes cited in your text? a. b. c. d.

Lost or bypassed data User-fierce interfaces Data silos Non-standardized data

Answer: B Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology

16. Mashups that primarily serve business functions such as supporting performance management and reporting, are called ______________________________. a. b. c. d.

Enterprise mashups Organizational mashups Operational mashups Performance mashups

Answer: A Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Information Technology 17. A common title for the person in charge of an organization’s IT is: a. IT Project Director b. Chief Information Officer (CIO) c. Chief Technology Officers (CTO) d. Vice-President of Information Services Answer: A Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB:

18. According to a study by Forrester Research, spending on IT is expected to increase in the near future. Which of the following was not cited as one of the strategic benefits organizations hope to achieve through improved information management? a. b. c. d.

Improving decision quality Improves predictions Reduces risk Improved brand awareness

Answer: D Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

19. Changes in an organization’s storage capability, applications and/or databases should be anticipated as part of __________________________. a. b. c. d.

The organization’s long-range planning process An audit of the annual budget A review of future technology trends An audit of past technology expenses

Answer: A Difficulty: Easy Section Ref: 2.2 IT Architecture AACSB: Information Technology

20. Which of the following is one of the 4 components of IT Architecture described in your text? a. b. c. d.

Application architecture Mobile architecture Telecommunications architecture Computing architecture

Answer: A Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology 21. Which of the following is one of the 4 components of IT Architecture described in your text? a. b. c. d.

Collaborative tool architecture Telecommunications architecture Wireless architecture Business architecture

Answer: D Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology

22. Which of the following is one of the 4 components of IT Architecture described in your text? a. b. c. d.

Analytics architecture Data architecture Telecommunications architecture Social technology architecture

Answer: B Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology 23. Which of the following is one of the 4 components of IT Architecture described in your text? a. b. c. d.

Processing architecture Visualization architecture Technical architecture Computing architecture

Answer: C Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology 24. A company’s business architecture describes _____________________________. a. How specific applications are designed and how they interact with each other. b. How an enterprise’s data stores are organized and accessed. c. The hardware and software infrastructure that supports applications and their interactions. d. The processes a business uses to meet its goals.

Answer: D Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology

25. A company’s application architecture describes _____________________________. a. How specific applications are designed and how they interact with each other. b. How an enterprise’s data stores are organized and accessed. c. The hardware and software infrastructure that supports applications and their interactions. d. The process a business uses to meet its goals.

Answer: A Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology 26. A company’s data architecture describes _____________________________. a. b. c. d.

The technical specifications for various types of computing devices.

How specific applications are designed and how they interact with each other.

How an enterprise’s data stores are organized and accessed.

The hardware and software infrastructure that supports applications and their interactions.

Answer: C Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology 27. A company’s technical architecture describes _____________________________. a. b. c. d.

The process a business uses to meet its goals.

How specific applications are designed and how they interact with each other.

How an enterprise’s data stores are organized and accessed.

The hardware and software infrastructure that supports applications and their interactions.

Answer: D Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Information Technology

28. Which of the following is not cited by your text as a way to measure the success of IT architecture? a. Profitability and Return on Investment (ROI) b. Technology Lifespan - how long a technology or application lasts before it is replaced by something better c. Customer satisfaction d. Employee Turnover Answer: B Difficulty: Hard Section Ref: 2.2 IT Architecture AACSB: Information Technology

29. A(n) _______________________ is a vision of the future IT architecture that evolves in advance of it being achieved. a. b. c. d.

Potential IT architecture Impending IT architecture Target IT architecture Planned IT architecture

Answer: C Difficulty: Hard Section Ref: 2.2 IT Architecture AACSB: Information Technology

30. A__________________, consisting of short- and long-term strategies, is necessary for managing the change from baseline IT architecture to target IT architecture. a. b. c. d.

Strategic Technology Audit (STA) Sequencing plan Roll-out blueprint Computing strategy

Answer: B Difficulty: Hard Section Ref: 2.2 IT Architecture AACSB: Information Technology

31. Your textbook differentiates the terms “data”, “information” and “knowledge”. With regard to a customer satisfaction application for the automobile industry, which of the following is an example of data? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership.

Answer: D Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking 32. Your textbook differentiates the terms “data”, “information” and “knowledge”. With regard to a customer satisfaction application for the automobile industry, which of the following is an example of information? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership.

Answer: C Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking

33. Your textbook differentiates the terms “data”, “information” and “knowledge”. With regard to a customer satisfaction application for the automobile industry, which of the following is an example of knowledge? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership.

Answer: A Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking 34. Your textbook differentiates the terms “data”, “information” and “knowledge”. With regard to a customer satisfaction application for the automobile industry, which of the following is an example of a database? a. The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. b. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. c. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. d. Records containing numerical ratings from customer surveys completed online after each visit to a dealership.

Answer: B Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking

35. The collection of computing systems used by an organization is called ______________. a. b. c. d.

IT architecture or Enterprise architecture Information technology (IT) or an Information System (IS) A network The Internet

Answer: B Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

36. Which of the following is not a component of the Input-Processing-Output (IPO) model of an Information System? a. b. c. d.

Upgrading software and/or hardware according to a strategic plan Storage – saving data and information so that it can be accessed in the future Working with information –changing, calculating, or manipulating Communicating – Sending results, providing feedback

Answer: A Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

37. Data from sales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so forth are processed by a combination of hardware and software called ________________ Processing Systems. a. b. c. d.

Financial (FPS) Enterprise (EPS) Transaction (TPS) Monetary (MPS)

Answer: C Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

38. Transactions are typically processed, A) all together for a defined time window (e.g. end of a day, shift or other time period) or B) processed as each transaction occurs. The first method (A) of processing is called: a. b. c. d.

Group processing Periodic processing Cluster processing Batch processing

Answer: D Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

39. Transactions are typically processed, A) all together for a defined time window (e.g. end of a day, shift or other time period) or B) processed as each transaction occurs. The second method (B) of processing is called: a. b. c. d.

Swift processing Rapid processing Real-time processing Instantaneous processing

Answer: C Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

40. Organizations strive to maintain _______________ by validating data - detecting and eliminating obvious errors and omissions, because the more efficiently and thoroughly an organization gathers, stores, processes, retrieves and uses its data, the more productive it is. a. b. c. d.

Ethical standards High levels of data quality Internal standards Transaction costs

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

41. A general purpose Information System (IS) designed to provide reports to managers for tracking operations, monitoring and control is called a(n): a. b. c. d.

Monitoring Information System (MIS) Management Information System (MIS) Multi-function Information System (MIS) Marketing Information System (MIS)

Answer: B Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology 42. A company’s MIS is used to generate different kinds of reports to managers. What kind of reports are created or run according to a pre-set schedule (e.g. daily, weekly, or monthly) and distributed via email or internal company websites (called intranets)? a. b. c. d.

Exception reports Ad hoc reports Periodic reports Management reports

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology 43. A company’s MIS is used to generate different kinds of reports to managers. What kind of reports are created or run only when something is outside the norm because some unusual event or deviation has occurred? a. b. c. d.

Exception reports Ad hoc reports Periodic reports Management reports

Answer: A Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

44. A company’s MIS is used to generate different kinds of reports to managers. What kind of reports are unplanned reports and generated on request to learn more about a situation, problem, or opportunity? They are often generated to a screen or printed on an as needed basis a. b. c. d.

Exception reports Ad hoc reports Periodic reports Management reports

Answer: B Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

45. Managers use software applications that help them make decisions that would otherwise take a lot of time to figure out. For instance, these tools can help figure out if a customer qualifies for an auto loan or should receive additional credit. Interactive applications that support managerial decision making are called ________________. a. b. c. d.

Data System Support (DSS) Demand Structures Support (DSS) Decision Situation Structures (DSS) Decision Support Systems (DSS)

Answer: D Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

46. Which of the following was not identified in your text as an important characteristic of a DSS? a. An easy-to-use interactive interface b. Customized by company IT professionals to fit the specific needs of the organization c. Models or formulas that enable sensitivity analysis, what if analysis, goal seeking, and risk analysis d. Data from multiple sources—internal and external sources plus data added by the decision maker who may have insights relevant to the decision situation.

Answer: B Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

47. According to your text, what is the key factor that differentiates an MIS from a DSS? a. A DSS contains models that use information to make decisions. b. A DSS is often Web-based, whereas an MIS is restricted to company computers for security reasons. c. A DSS consists of software and hardware, whereas an MIS is only software apps. d. A DSS is only a software app, whereas an MIS consists of hardware and software.

Answer: A Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

48. Jay Garcia is a marketing manager at Fire Mouth, a new hot sauce manufacturer. He is using his company’s DSS to determine the best price for a new brand of hot sauce called “Fires of Hell”. He inputs figures about his costs, price and desired profit and then checks to see what the application tells him his sales volume would need to be based on those factors. As he works on the problem, he changes his assumptions about the input factors and notes how those changes impact the predicted sales volume. Jay is conducting a(n): a. b. c. d.

Input-Output analysis Factor analysis Goal seeking analysis What-if-analysis

Answer: D Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

49. Jackson Stiles is a marketing manager for Rose City Hardware, a privately owned hardware store in Portland, OR. His boss has told him to make sure each product earns at least a 25% profit margin after all costs are accounted for. When new products come into the store, Jackson enters information to his store’s DSS about the product, shipping and promotional costs associated with carrying the product. The DSS then calculates a target price based on this information. Jackson is using the DSS to conduct a ________________. a. b. c. d.

Input-Output analysis Factor analysis Goal seeking analysis What-if-analysis

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

50. Given the huge number of transactions, the data in databases are constantly in use and/or undergoing change. This characteristic of databases, referred to as ___________, makes it impossible to use them for complex decision making and problem-solving tasks. a. b. c. d.

Instability Variability Insufficient Accuracy Volatility

Answer: D Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

51. Data in databases are constantly in use or undergoing changes. As a result, it is impossible to use them for complex decision making or problem solving tasks. Which of the following was identified in your text as an appropriate solution to this problem? a. Set aside specific time windows each day for halting data changes or new inputs to the database so that decision making or problem solving applications can use the data. b. Conduct decision making or problem solving tasks prior to transferring data to the database. c. Use the database data anyway since the results are better than not conducting any decision or problem solving analysis at all. d. Extract, transform and load database data into a data warehouse where it can be formatted for further analysis.

Answer: D Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

52. According to your text, an Information System (IS) is part of an organizational culture that consists of: a. b. c. d.

IS, market demands, technology IS, the company, competitors IS, business processes, people IS, company policies, legal regulations

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking

53. The mass migration of users from PCs to mobile devices has expanded ISs beyond the organization and made ________________ practically irrelevant. a. b. c. d.

Computers People Location Telephones

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

54. The company 1-800-Contacts transformed and disrupted the way people buy contact lenses.

Call center managers and sales representatives require real-time information about product availability, sales person performance, customer satisfaction, and so on. To accomplish this, the company IT department created ______________ reporting tools to deliver information to managers and sales reps. quickly. a. b. c. d.

Mobile Statistical Decision Support Dashboard

Answer: D Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

55. Which of the following is not considered part of an organization’s IT infrastructure? a. b. c. d.

Hardware Software Networks and communication facilities, including the Internet and intranets Equipment Suppliers and Vendors

Answer: D Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology 56. Which of the following is not considered part of an organization’s IT infrastructure? a. b. c. d.

Networks and communication facilities, including the Internet and intranets Research analysts Databases and data workers Information management personnel

Answer: B Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

57. Examples of _____________________ include data storage and computing hardware that are accessed via the Internet instead of being company-owned and on-site in a data center. a. b. c. d.

Transaction Processing Systems DSS Cloud computing Real-time reporting systems

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

58. When making decisions about how to acquire any of the components of the IT infrastructure, certain characteristics must be considered. One characteristic is dependability, which means: a. The component will contribute to the infrastructures ability to meet availability, reliability, and scalability requirements of the company’s information systems (TPS,MIS, DSS, etc.) and applications. b. The component will positively contribute to the task of implementing, maintaining, using and supporting the hardware and software that are required to deliver dependable applications. c. The component will contribute to the ability to scale up the infrastructure when additional application capacity is needed, or conversely, scale down to save money when capacity is not needed. d. It makes financial sense to invest in the component and that there is a good chance it will provide a positive return on investment.

Answer: A Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology 59. When making decisions about how to acquire any of the components of the IT infrastructure, certain characteristics must be considered. One characteristic is manageability, which means: a. The component will contribute to the infrastructures ability to meet availability, reliability, and scalability requirements of the company’s information systems (TPS,MIS, DSS, etc.) and applications. b. The component will positively contribute to the task of implementing, maintaining, using and supporting the hardware and software that are required to deliver dependable applications. c. The component will contribute to the ability to scale up the infrastructure when additional application capacity is needed, or conversely, scale down to save money when capacity is not needed. d. It makes financial sense to invest in the component and that there is a good chance it will provide a positive return on investment.

Answer: B Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

60. When making decisions about how to acquire any of the components of the IT infrastructure, certain characteristics must be considered. One characteristic is adaptability, which means: a. The component will contribute to the infrastructures ability to meet availability, reliability, and scalability requirements of the company’s information systems (TPS,MIS, DSS, etc.) and applications. b. The component will positively contribute to the task of implementing, maintaining, using and supporting the hardware and software that are required to deliver dependable applications. c. The component will contribute to the ability to scale up the infrastructure when additional application capacity is needed, or conversely, scale down to save money when capacity is not needed. d. It makes financial sense to invest in the component and that there is a good chance it will provide a positive return on investment.

Answer: C Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology 61. When making decisions about how to acquire any of the components of the IT infrastructure, certain characteristics must be considered. One characteristic is affordability, which means: a. The component will contribute to the infrastructures ability to meet availability, reliability, and scalability requirements of the company’s information systems (TPS,MIS, DSS, etc.) and applications. b. The component will positively contribute to the task of implementing, maintaining, using and supporting the hardware and software that are required to deliver dependable applications. c. The component will contribute to the ability to scale up the infrastructure when additional application capacity is needed, or conversely, scale down to save money when capacity is not needed. d. It makes financial sense to invest in the component and that there is a good chance it will provide a positive return on investment.

Answer: D Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Information Technology

62. Jared Vargas is a sales manager at a large company. He and his employees use a number of cloud based applications such as salesforce.com and Google Apps. The company decided to use these apps instead of purchasing apps that would run from their own computers or servers, reducing the cost and complexity associated with their use. Apps like these are known as: a. b. c. d.

Virtual Enterprise Apps.

Enterprise Systems Software as a Service (SaaS) Mobile Apps

Answer: C Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

63. In an effort to free themselves from the burden of deploying, provisioning and updating software apps, many companies are turning to _______________________. a. Software solutions manufactured in China or other countries where labor is cheaper. b. Enterprise cloud computing solutions c. Software suites (e.g. Microsoft Office) d. Custom software developed internally Answer: B Difficulty: Easy Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

64. Companies or government agencies that need greater security and data confidentiality set up their own clouds on servers that they own. These are called ________________. a. b. c. d.

Secure clouds Protected clouds Enterprise clouds Private clouds

Answer: D Difficulty: Easy Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

65. The financial benefit of cloud computing solutions is a reduction in IT costs. The greatest strategic advantage of cloud computing solutions is probably they _______________. a. b. c. d.

Increase agility and ability to quickly implement IT for competitive advantage.

Are typically easier for employees to use because of superior interfaces.

Are more secure than traditional software apps.

Typically contain more features and/or functionality than traditional software apps.

Answer: A Difficulty: Easy Section Ref: 2.4 Cloud Computing and Services AACSB: Reflective Thinking

66. While cloud computing offers many benefits, companies should be aware that moving to cloud based solutions on a wide scale will ________________________________. a. b. c. d.

Require greater numbers of IT professionals to support the strategy.

Create greater reliance on outside consultants or contract employees.

Require a dramatic increase in training or re-training expenses.

Require increased bandwidth and place greater emphasis on maintaining the organization’s network or wide area network (WAN)

Answer: D Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

67. As companies move toward implementing cloud computing solutions on a wide scale, certain strategic questions need to be considered. Which of the following was not a strategic question identified in your text? a. b. c. d.

Which workloads should be exported to the cloud?

The impact of cloud computing on the company’s market share and brand image.

How to resolve issues of privacy and security as things move out to the cloud?

How departments or business units will get new IT resources. Should they help themselves, or should IT remain a gatekeeper?

Answer: B Difficulty: Hard Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

68. Companies that outsource projects to the cloud should pay particular attention to the ___________________ which serves as the formal or informal contract or agreement defining the relationships between them and a vendor (supplier of cloud services). a. b. c. d.

Service-level agreement (SLA) Defined services agreement (DSA) Vendor policy terms (VPT) statement Purchase contract (PC)

Answer: A Difficulty: Hard Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

69. Which of the following was described in your text as a potential disadvantage to using cloud computing services? a. With cloud computing, it may be more difficult to get to the root of performance problems, like the unplanned outages that sometimes occur with Google’s Gmail or Workday’s human resources apps. b. Requires greater numbers of IT professionals to support the strategy. c. Requires greater reliance on outside consultants or contract employees. d. Employees might over use applications, leading to higher costs.

Answer: A Difficulty: Hard Section Ref: 2.4 Cloud Computing and Services AACSB: Information Technology

70. _____________________ is a technique that creates a virtualization layer and multiple virtual machines (VM) that run on a single physical machine. a. b. c. d.

Cloud computing Virtualization Multi-tasking Computing optimization

Answer: B Difficulty: Easy Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Information Technology

71. Computer hardware had been designed to run a single operating system (OS) and a single app, leaving most computers vastly underutilized. One solution to optimizing the use of computing resources is use one physical machine and specialized software to create multiple _____________________. a. b. c. d.

Cloud based desktops Simulated desktops Replicated workstations Virtual machines (VM)

Answer: D Difficulty: Easy Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Information Technology 72. The software applications that convert a single physical machine into multiple virtual machines is referred to as _______________________. a. b. c. d.

Simulation software The replication module The virtualization layer Virtual software

Answer: D Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Information Technology 73. Virtualization separates business applications and data from hardware resources. Which of the following was not a type of virtualization described in your text? a. Storage virtualization is the pooling of physical storage from multiple network storage devices into what appears to be a single storage device that is managed from a central console. b. Network virtualization combines the available resources in a network by splitting the network load into manageable parts, each of which can be assigned (or reassigned) to a particular server on the network. c. Hardware virtualization is the use of software to emulate hardware or a total computer environment other than the one the software is actually running in. d. Cloud virtualization combines Software as a Service apps from multiple clouds into a single virtual cloud for a seamless computing experience.

Answer: D Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Information Technology

74. Which of the following is not listed in your text as one of the benefits of virtualization? a. Energy efficient – up to 95% reduction in energy use per server b. Reduces cost of servers and makes more efficient use of data storage c. Reduces total cost of ownership – a VM costs 75% less to operate than a physical server over 3 year period d. Easier to implement and simpler to operate than a physical server Answer: D Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Information Technology

True/False 1. Mashups are applications that collect and combine data from multiple public sources and then organize them through a browser-user interface to create a new application.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 2. The most potentially valuable type of information for managers comes from large collections of transaction records which can be analyzed for patterns of financial performance.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of information technology

3. Despite all the information flowing through companies, executives, managers, and workers throughout the organization often struggle to find the information they need to make sound decisions or do their jobs.

Answer: True Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 4. Thanks to the wide availability of computers, mobile devices and ISs, information flowing through companies is almost always available to executives, managers, and workers throughout the organization who no longer have to struggle to find the information they need to make sound decisions or do their jobs.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

5. Despite the growth of social data, images and web documents, modern IT professionals must continue to place primary emphasis on management of structured, high quality data.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

6. CIOs must ensure data security and compliance with continually evolving regulatory requirements, such as the Sarbanes-Oxley Act, the USA PATRIOT Act, and the Health Insurance Portability and Accountability Act (HIPAA).

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking 7. The “blueprints” that guide and govern software add-ons, upgrades, hardware, systems, networks, cloud services and other IT are known as IT architectures.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 8. IT architectures or enterprise architectures are the terms used to describe the working parts of both desktop and mobile computing devices.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 9. The term “data structures” refers to the speed at which data it is captured, analyzed, and reported.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

10. The term “Information Management” refers to how information is stored and organized; and the speed at which it is captured, analyzed, and reported.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 11. Many retailers have a page on their website that pulls address, store hours and graphical map information from different sources and combines it in one place to create an app that helps customers find directions to their store locations. Apps like the one in this example are called consumer mashups.

Answer: True Difficulty: Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

12. Apps that combine data from multiple internal and public sources and publishes the results to enterprise portals, dashboards, or the cloud are commonly referred to as “complex mashups”.

Answer: False Difficulty: Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 13. Data (or information) silos are ISs that do not have the capability to exchange data with other ISs making timely coordination and communication across functions or departments difficult.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

14. The overall goal of information management is to reduce costs and maintain high standards of information security by setting strict guidelines for access.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 15. The overall goal of information management is to design and implement a well–planned out IT architecture, policies, and procedures needed to effectively and efficiently support the information and decision needs of an organization.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

16. One way for larger companies to effectively manage information across an organization is to require each division or business unit to implement and manage its own IS because unit managers understand their information needs better than people in other parts of the organization.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

17. Most health care organizations are drowning in data, yet cannot get reliable, actionable insights from this data. Information from physician notes, registration forms, discharge summaries, documents and so on often go unused or are difficult for administrators and mangers to access because the information is trapped in data silos.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

18. According to your text, the number one reason for information inefficiencies is the prohibitive cost of high quality data.

Answer: False Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

19. KPIs or key performance indicators are metrics that define and measure progress toward organizational goals—and deviations from those goals.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking 20. Managers who want to measure and track their organization’s performance will frequently use Goal Tracking Analysis (GTA) to evaluate their company’s progress toward goals.

Answer: False Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

21. When two departments or divisions are unable to share information because of different data file formats or other incompatibilities, the problem is referred to as “Lost or bypassed data”.

Answer: False Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

22. When employees resist using new software applications because they are difficult to use or cause frustration, the problem is referred to as “user-fierce interfaces”.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

23. Mashups that primarily serve business functions such as helping managers assess organizational performance and creating reports are called enterprise mashups.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 24. A common title for the person in charge of an organization’s IT is IT Project Director.

Answer: False Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: 25. A common title for the person in charge of an organization’s IT is Chief Information Officer (CIO) Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB:

26. According to a study by Forrester Research, spending on IT is expected to increase in the near future due to organizations’ need to improve decision quality, improve predictions and reduce risk.

Answer: True Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

27. To maintain a balance between costs and benefits, it is advised that managers generally add storage, applications and/or databases to the Information System on an “as needed” basis.

Answer: False Difficulty: Medium Section Ref: 2.2 IT Architecture AACSB: Use of Information Technology

28. Because of the time it takes to plan, develop and implement new storage, applications and/or databases, it is advised that managers do not add these components to the Information System on an “as needed” basis. Instead, changes should be part of a long-range planning process.

Answer: True Difficulty: Easy Section Ref: 2.2 IT Architecture AACSB: Use of Information Technology

29. What-if analysis refers to a process of changing assumptions or data in a model to see how the changes impact the predicted outcome.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

30. When conducting a goal seeking analysis, the decision maker has a specific outcome in mind and needs to figure out how that outcome can be achieved and whether achieving the outcome is feasible.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

31. Telecommunications, wireless technology and collaborative tools are all key components of IT architecture.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

32. Application architecture and business architecture are considered key components of IT architecture.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

33. Data architecture and technical architecture are considered key components of IT architecture.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 34. A company’s business architecture describes the processes a business uses to meet its goals.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 35. A company’s application architecture describes the hardware and software infrastructure that supports applications and their interactions.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 36. A company’s data architecture describes how specific applications are designed and how they interact with each other.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 37. A company’s technical architecture describes the hardware and software infrastructure that supports applications and their interactions.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

38. The success of an organization’s IT architecture can be measured, in part, by things like customer satisfaction and employee turnover.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

39. IT managers need to be forward thinking when it comes to planning for the organizations IT needs in the future. The future IT architecture that evolves in advance of it being achieved is referred to as the “target IT architecture”.

Answer: True Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

40. The plan for managing the change from baseline IT architecture to target IT architecture is typically called a Strategic Technology Audit (STA).

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

41. The plan for managing the change from baseline IT architecture to target IT architecture is typically called a sequencing plan.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 42. Your textbook differentiates the terms “data”, “information” and “knowledge”. With regard to a customer satisfaction application for the automobile industry, an example of data would be records containing numerical ratings from customer surveys.

Answer: True Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

43. Your textbook differentiates the terms “data”, “information” and “knowledge”. Information is data that has been processed, organized, or put into context so that it has meaning and value to the person receiving it.

Answer: True Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 44. Your textbook differentiates the terms “data”, “information” and “knowledge”. Knowledge consists of data and/or information that have been processed, organized, and put into context to be meaningful, and to convey understanding, experience, accumulated learning, and expertise as they apply to a current problem or activity.

Answer: True Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 45. Your textbook differentiates the terms “data”, “information” and “knowledge”. Information is derived or calculated from data, whereas knowledge is something based on human intuition and may provide insights more powerful than those based on data and information.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

46. The collection of computing systems used by an organization is called systems architecture.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

47. The collection of computing systems used by an organization is called Information Technology (IT) or an Information System (IS).

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

48. Data from sales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so forth are processed by a combination of hardware and software called Financial Processing Systems (FPS).

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

49. Data from sales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so forth are processed by a combination of hardware and software called Transaction Processing Systems (TPS).

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

50. When transactions are typically processed all together for a defined time window (e.g. end of a day, shift or other time period), it is called “batch processing”.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 51. When transactions are typically processed as each transaction occurs, it is called “real-time processing”.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

52. When transactions are typically processed all together for a defined time window (e.g. end of a day, shift or other time period), it is called “cluster processing”.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

53. When transactions are typically processed as each transaction occurs, it is called “instantaneous processing”.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

54. Organizations strive to maintain high data quality by validating data - detecting and eliminating obvious errors and omissions, because the more efficiently and thoroughly an organization gathers, stores, processes, retrieves and uses its data, the more productive it is.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

55. A Management Information System (MIS) is a general purpose IS designed to provide reports to managers for tracking operations, monitoring and control.

Answer: True Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

56. A Decision Support System (DSS) is a general purpose IS designed to provide reports to managers for tracking operations, monitoring and control.

Answer: False Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

57. A Decision Support System (DSS) is an interactive application that aids managers in making decisions that would otherwise require a great deal of time to figure out.

Answer: True Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

58. The central feature of a DSS is a model or formula that enables sensitivity analysis, what-if analysis, goal seeking and/or risk analysis.

Answer: True Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

59. The critical difference between a DSS and an MIS is that a DSS is often Web-based, whereas an MIS is restricted to company computers for security reasons.

Answer: False Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

60. The critical difference between a DSS and an MIS is that a DSS is only a software app, whereas an MIS consists of both hardware and software.

Answer: False Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

61. The functional difference between a DSS and an MIS is that a DSS contains models that use information to make decisions while an MIS is used to create reports from data.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

62. Given the huge number of transactions, the data in databases are constantly in use and/or undergoing change. This characteristic of databases, referred to as variability.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

63. Because data in databases are constantly in use or undergoing changes, data must be extracted, transformed and loaded into a data warehouse prior to use in complex decision making or problem solving tasks.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

64. According to your text, an Information System (IS) is part of an organizational culture that consists of the IS, business processes, and people.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

65. According to your text, an Information System (IS) is part of an organizational culture that consists of the IS, company policies, and legal regulations.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

66. According to your text, an Information System (IS) is part of an organizational culture that consists of the IS, market demands, technology.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

67. The mass migration of users from PCs to mobile devices has expanded ISs beyond the organization and made location practically irrelevant.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 68. The mass migration of users from PCs to mobile devices has expanded ISs beyond the organization and made human employees increasingly irrelevant.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 69. Managers use “dashboards” to receive and monitor information in real or almost real-time.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 70. Managers use “dashboards” to monitor employees by viewing them at their workstations via live video feed.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 71. Hardware, software and networks are all considered parts of an organization’s IT infrastructure.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

72. Databases and data workers, information management personnel and networks are all considered parts of an organization’s IT infrastructure.

Answer: True Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

73. Equipment suppliers and vendors, research analysts and mobile devices are all considered part of an organization’s IT infrastructure.

Answer: False Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

74. Software as a service (SaaS) apps are typically purchased and installed directly on an organization’s computers or servers and maintained by the organization’s IT personnel.

Answer: False Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

75. Software as a service (SaaS) apps are typically accessed over a network using a Web browser (no hardware or software to install) and paid for by a fixed subscription fee or on a per-use basis.

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

76. Cloud computing solutions are growing in popularity with organizations because they reduce the burden of deploying, provisioning and updating software apps.

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

77. Companies or government agencies that need greater security and data confidentiality set up their own clouds on servers that they own. These are called “protected clouds”.

Answer: False Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

78. Companies or government agencies that need greater security and data confidentiality set up their own clouds on servers that they own. These are called “private clouds”.

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

79. The greatest strategic advantage of cloud computing solutions is that they are typically more secure than traditional software apps.

Answer: False Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

80. The greatest strategic advantage of cloud computing solutions is that they increase an organization’s agility and ability to quickly implement IT for competitive advantage.

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Reflective Thinking

81. Cloud computing solutions typically require increased bandwidth and place greater emphasis on maintaining the organization’s network or wide area network (WAN).

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

82. Cloud computing solutions typically require less bandwidth and place fewer demands on the organization’s network or wide area network (WAN), reducing the risk of “downtime”.

Answer: False Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

83. Service-level agreements (SLA) serve as the formal or informal contract or agreement defining the relationships between an organization and a vendor (supplier of cloud services).

Answer: True Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

84. Virtualization is a technique that creates a virtualization layer and multiple virtual machines (VM) that run on a single physical machine.

Answer: True Difficulty: Easy Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology 85. Virtual machines (VM) are specialized apps for designing and testing 3 Dimensional products such as trucks, cars and mechanical devices.

Answer: False Difficulty: Easy Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

86. The software applications that convert a single physical machine into multiple virtual machines is referred to as “The Virtualization Layer”.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

87. Storage virtualization is the pooling of physical storage from multiple network storage devices into what appears to be a single storage device that is managed from a central console.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

88. Network virtualization combines the available resources in a network by splitting the network load into manageable parts, each of which can be assigned (or reassigned) to a particular server on the network.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

89. Hardware virtualization is the use of software to emulate hardware or a total computer environment other than the one the software is actually running in.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

90. Storage virtualization combines the available resources in a network by splitting the network load into manageable parts, each of which can be assigned (or reassigned) to a particular server on the network.

Answer: False Difficulty: Hard Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

91. Network virtualization is the use of software to emulate hardware or a total computer environment other than the one the software is actually running in.

Answer: False Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

92. A key benefit of virtualization is energy efficiency – up to a 95% reduction in energy use per server.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology 93. A key benefit of virtualization is a reduction in the total cost of ownership – a VM costs 75% less to operate than a physical server over a 3 year period.

Answer: True Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology 94. A key benefit of virtualization is simplicity – a virtual server is easier to implement and operate than a physical server.

Answer: False Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

Short Answer 1. ______________ are applications that collect and combine data from multiple public sources and then organize them through a browser-user interface to create a new application.

Answer: Mashups or Consumer mashups Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

2. CIOs must ensure data security and compliance with continually evolving regulatory requirements, such as ________________________________ (Name at least 2 laws or regulations) Answer: Possible answers: Sarbanes-Oxley Act, Basel III, the Computer Fraud and Abuse Act (CFAA), the USA PATRIOT Act, or the Health Insurance Portability and Accountability Act (HIPAA).

Difficulty: Hard Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking 3. The “blueprints” that guide and govern software add-ons, upgrades, hardware, systems, networks, cloud services and other IT are known as ____________________.

Answer: IT architectures Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 4. The term _______________ ____________refers to how information is stored and organized; and the speed at which it is captured, analyzed, and reported.

Answer: Information Management Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

5. Many retailers have a page on their website that pulls address, store hours and graphical map information from different sources and combines it in one place to create an app that helps customers find directions to their store locations. Apps like the one in this example are called ______________.

Answer: Consumer mashups Difficulty: Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 6. ____________________are ISs that do not have the capability to exchange data with other ISs making timely coordination and communication across functions or departments difficult.

Answer: Data (or information) silos Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

7. The overall goal of ___________________is to design and implement a well–planned out IT architecture, policies, and procedures needed to effectively and efficiently support the information and decision needs of an organization.

Answer: Information management Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

8. Most health care organizations are drowning in data, yet cannot get reliable, actionable insights from this data. Information from physician notes, registration forms, discharge summaries, documents and so on often go unused or are difficult for administrators and mangers to access because the information is trapped in______________.

Answer: Data silos Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

9. ___________________________are metrics that define and measure progress toward organizational goals—and deviations from those goals.

Answer: KPIs or key performance indicators Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

10. When two departments or divisions are unable to share information because of different data file formats or other incompatibilities, the problem is referred to as ___________________ Answer: Non-standardized data formats Difficulty: Medium Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology

11. When employees resist using new software applications because they are difficult to use or cause frustration, the problem is referred to as ___________________.

Answer: User-fierce interfaces.

Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 12. Mashups that primarily serve business functions such as helping managers assess organizational performance and creating reports are called _____________ mashups.

Answer: Enterprise Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Use of Information Technology 13. A common title for the person in charge of an organization’s IT is ______________.

Answer: Chief Information Officer (CIO) Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB:

14. According to a study by Forrester Research, spending on IT is expected to ___________ in the near future due to organizations’ need to improve decision quality, improve predictions and reduce risk.

Answer: Increase Difficulty: Easy Section Ref: 2.1 Information Management in the 2010s AACSB: Reflective Thinking

15. Because of the time it takes to plan, develop and implement new storage, applications and/or databases, it is advised that managers do not add these components to the Information System on an “as needed” basis. Instead, changes should be part of a ___________________.

Answer: Long-range planning process Difficulty: Easy Section Ref: 2.2 IT Architecture AACSB: Use of Information Technology

16. _______________ refers to a process of changing assumptions or data in a model to see how the changes impact the predicted outcome.

Answer: What-if analysis Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

17. When conducting a ________________, the decision maker has a specific outcome in mind and needs to figure out how that outcome can be achieved and whether achieving the outcome is feasible.

Answer: goal seeking analysis Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

18. Application architecture and business architecture are considered key components of ___________________.

Answer: IT architecture Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

19. Data architecture and technical architecture are considered key components of ____________________.

Answer: IT architecture Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 20. A company’s ____________ architecture describes the processes a business uses to meet its goals.

Answer: Business Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 21. A company’s _______________ architecture describes the hardware and software infrastructure that supports applications and their interactions.

Answer: Technical Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 22. A company’s _______________ architecture describes how specific applications are designed and how they interact with each other.

Answer: Application Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

23. A company’s ____________ architecture describes how an enterprise’s data stores are organized and accessed.

Answer: Data Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

24. IT managers need to be forward thinking when it comes to planning for the organizations IT needs in the future. The future IT architecture that evolves in advance of it being achieved is referred to as the ____________________.

Answer: Target IT architecture Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

25. The plan for managing the change from baseline IT architecture to target IT architecture is typically called a_____________ plan.

Answer: Sequencing Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology 26. Your textbook differentiates the terms “data”, “information” and “knowledge”. ___________ is data that has been processed, organized, or put into context so that it has meaning and value to the person receiving it.

Answer: Information Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

27. The collection of computing systems used by an organization is called _______________.

Answer: Information Technology (IT) or an Information System (IS).

Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

28. Data from sales orders, payroll, accounting, financial, marketing, purchasing, inventory control, and so forth are processed by a combination of hardware and software called ____________________________.

Answer: Transaction Processing Systems (TPS) Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

29. When transactions are typically processed all together for a defined time window (e.g. end of a day, shift or other time period), it is called ___________________.

Answer: Batch processing Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

30. When transactions are typically processed as each transaction occurs, it is called __________________.

Answer: Real-time processing Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

31. A ____________________________ is a general purpose IS designed to provide reports to managers for tracking operations, monitoring and control.

Answer: Management Information System (MIS) Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

32. A _______________________ is an interactive application that aids managers in making decisions that would otherwise require a great deal of time to figure out.

Answer: Decision Support System (DSS) Difficulty: Easy Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

33. The central feature of a ___________________ is a model or formula that enables sensitivity analysis, what-if analysis, goal seeking and/or risk analysis.

Answer: Decision Support System (DSS) Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

34. The functional difference between a DSS and an MIS is that a DSS contains models that use information to make decisions while an MIS is used to create ______________ from data.

Answer: Reports Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

35. Given the huge number of transactions, the data in databases are constantly in use and/or undergoing change. This characteristic of databases, referred to as ________________.

Answer: Variability Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

36. Because data in databases are constantly in use or undergoing changes, data must be extracted, transformed and loaded into a _________________ prior to use in complex decision making or problem solving tasks.

Answer: data warehouse Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

37. According to your text, an Information System (IS) is part of an organizational culture that consists of the IS, business processes, and _________________.

Answer: People Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

38. The mass migration of users from PCs to mobile devices has expanded ISs beyond the organization and made _____________ practically irrelevant.

Answer: Location Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

39. _________________________ apps are typically accessed over a network using a Web browser (no hardware or software to install) and paid for by a fixed subscription fee or on a per-use basis.

Answer: Software as a service (SaaS) Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

40. ______________________ solutions are growing in popularity with organizations because they reduce the burden of deploying, provisioning and updating software apps.

Answer: Cloud computing Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

41. Companies or government agencies that need greater security and data confidentiality set up their own clouds on servers that they own. These are called ______________.

Answer: Private clouds Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

42. The greatest strategic advantage of cloud computing solutions is that they increase an organization’s _______________ and ability to quickly implement IT for competitive advantage.

Answer: Agility Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Reflective Thinking

43. Cloud computing solutions typically require increased bandwidth and place greater emphasis on maintaining the organization’s _________________________.

Answer: Network or wide area network (WAN) Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

44. __________________________ serve as the formal or informal contract or agreement defining the relationships between an organization and a vendor (supplier of cloud services).

Answer: Service-level agreements (SLA) Difficulty: Medium Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

45. __________________ is a technique that creates a virtualization layer and multiple virtual machines (VM) that run on a single physical machine.

Answer: Virtualization Difficulty: Easy Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

46. The software applications that convert a single physical machine into multiple virtual machines is referred to as ______________________.

Answer: The Virtualization Layer Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

47. _________________ virtualization is the pooling of physical storage from multiple network storage devices into what appears to be a single storage device that is managed from a central console.

Answer: Storage Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

48. _______________ virtualization combines the available resources in a network by splitting the network load into manageable parts, each of which can be assigned (or reassigned) to a particular server on the network.

Answer: Network Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

49. __________________virtualization is the use of software to emulate hardware or a total computer environment other than the one the software is actually running in.

Answer: Hardware Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

50. Two key benefits of virtualization are __________ efficiency and a reduction in the total cost of ownership Answer: Energy Difficulty: Medium Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

Essay Questions 1. What is a data (or information) silo? What are the primary causes of data silos and why are they an impediment to effective organizational operations?

Answer: Data (or information) silos are ISs that do not have the capability to exchange data with other ISs making timely coordination and communication across functions or departments difficult. Data silos exist when: • there’s no overall IT architecture to guide IS investments, • poor data coordination, and • poor communication across the organization regarding information strategy Data silos support a single function, and as a result, do not support an organization’s crossfunctional needs.

Difficulty: Hard Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Reflective Thinking 2. The following factors are listed in your text as the primary causes of information deficiencies.

• • • • •

Data Silos Lost or Bypassed Data Non-standardized Data User-Fierce Interfaces IT is a moving target

Define and give an example of each. Briefly explain why these factors are problematic.

Answer: • • •

Data Silos – ISs that contain data that is not accessible by other ISs in the organization.

In effect, data become “trapped” in data silos.

Lost or Bypassed Data – Data can get lost in transit from one IS to another or data might fail to get captured in the first place because of inadequately tuned data collection systems.

Non-standardized Data – Deficiencies can occur when various units in a company format data differently. For instance, one division might report weekly gross sales revenues per product line and another division reports monthly net sales per product. These situations can make data analysis and comparisons difficult or impossible and increase the risk of errors.

• •

User-Fierce Interfaces - Poorly designed interfaces or formats that require extra time and effort to figure out increase the risk of errors from misunderstanding the data or ignoring it.

IT is a moving target - The information that decision makers want keeps changing—and changes faster than ISs can respond to because of the first four reasons in this list. For instance, many companies are unable to sufficiently track social media activity (e.g. tweets, YouTube hits, Facebook “likes” and so on) because traditional ISs were designed prior to the emergence of social media. Furthermore, managers are reluctant to invest in applications that track social activity because they can be expensive and difficult to evaluate in terms of return on investment, validity, functionality, and so on.

Difficulty: Medium Section Ref: 1.1 IT and Management Opportunities and Challenges AACSB: Reflective Thinking 3. Explain how an organization’s baseline architecture, sequencing plan, and target architecture related? (In your answer, be sure to define each.) Why should the organization’s target architecture never be achieved?

Answer: Baseline architecture – the current IT architecture in an organization.

Sequencing plan – a plan that outlines the short- and long-term strategies for managing the change from baseline to target architecture Target IT architecture - a vision of the organization’s future IT architecture that evolves in advance of it being achieved By definition, the target IT architecture is never actually achieved because it is always moving forward of the current (baseline) architecture. IT professionals aid their organizations by looking ahead to ongoing developments in technology and finding ways these advances might be adapted to the unique needs and challenges faced by the organization.

Difficulty: Hard Section Ref: 1.2 IT Architecture AACSB: Reflective Thinking

4. Your textbook differentiates the terms data, information and knowledge. Imagine that a national chain of grocery stores regularly administers customer satisfaction surveys and uses these to evaluate the performance of individual store locations. Briefly give an example or description of the data, information and knowledge that would result from these surveys.

Answer: Data – The “data” in this example would be the ratings and/or comments from the surveys stored in a computer file and available for analysis.

Information – The “information” in this example would come from reports that summarize an analysis of the data. For instance, the report might contain a calculation of average ratings, a summary of comments, as well as a description of the implications or conclusions that can be made based on the analysis.

Knowledge – “Knowledge” in this example would exist when managers use the information from the surveys, along with information from other sources or past experience and apply it to some action. For instance, management may decide to create a bonus plan that rewards store managers with high customer satisfaction ratings or put new managers in charge of stores with low customer satisfaction ratings. They may develop a strategic plan designed to help all stores reach a target level of customer satisfaction.

Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Reflective Thinking

5. Data captured by a Transaction Processing System (TPS) are processed and stored in a database, and then is available for use by other systems. Processing of transactions is done in one of two modes. Briefly identify and describe each mode and explain the strengths and weaknesses of each.

Answer: -Batch processing: A TPS in batch processing mode collects all transaction for a day, shift, or other time period, and then processes the data and updates the data stores. Payroll processing done weekly or bi-weekly is an example of batch mode.

-Online transaction processing (OLTP) or real-time processing: The TPS processes each transaction as it occurs, which is what is meant by the term real-time processing.

Batch processing costs less than real-time processing. A disadvantage is that the lag in processing that occurs in batch mode can cause errors or poor decisions because data are not updated immediately, in real time. For instance, if seat assignments are not updated immediately when customers make airline reservations, multiple customers could potentially end up booking the same seat and the problem would not be discovered until later when all of the transactions are processed in batch.

Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

6. Describe the key difference between a Decision Support System and a Management Information System. (In your answer, be sure to describe the purpose of each kind of app.)

Illustrate the difference between these two kinds of apps by describing how a bank might use them in its mortgage business.

Answer: A DSS is designed to aid mangers in decision making. The general purpose of an MIS is to create reports from data. The key thing that differentiates these two kinds of apps is that a DSS is based on a model (or formula) that identifies the kind of information required (inputs) and results in a decision (output).

For example, a bank loan officer might use a DSS to enter information about a customer’s income, credit rating, available cash and the amount of the loan (inputs) to reach a decision about whether or not to make the loan. The bank might use an MIS to generate a report showing how many loans have been made in a month, the average size of the loan, the average income and credit ratings of customers, and so on.

Difficulty: Hard Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

7. When making decisions about how to acquire hardware, software, or any other components of the IT Infrastructure, the following four characteristics of an IT infrastructure need to be considered: • • • •

Dependable Manageable Adaptable Affordable

Define each of these characteristics and explain why they should be considered when making changes to the IT Infrastructure.

Answer: Dependable. Dependability means that the infrastructure meets availability, reliability, and scalability requirements of the company’s information systems (TPS, MIS, DSS, etc.) and applications. Applications inherit their dependability from the IT infrastructure. That is, the dependability of applications is limited by (is only as good as) the dependability of the IT architecture.

Manageable. IT infrastructure determines the complexity of managing the hardware and software that are required to deliver dependable applications. If the IT architecture is low in manageability, it may lead to poor performance and failure to accomplish goals.

Adaptable. When additional application capacity is needed, organizations must be able to scale up the infrastructure as needed. Conversely, when demand declines, the organization may need to reduce capacity to bring expenses in line with its needs.

Affordable. Most organizations are looking for IT solutions that increase efficiency - increasing productivity while spending less money. IT managers should always be prepared to demonstrate how technology contributes to an organization’s overall business goals in a cost effective manner.

Difficulty: Medium Section Ref: 2.3 Information Systems and IT Infrastructure AACSB: Use of Information Technology

8. When making decisions about how to acquire hardware, software, or any other components of the IT Infrastructure, the following four characteristics of an IT infrastructure need to be considered: • • • •

Dependable Manageable Adaptable Affordable

Evaluate cloud computing solutions on each of these four criteria and explain why it has become an increasingly attractive option for many organizations.

Answer: •

Dependable – Cloud computing is generally perceived as dependable, but dependability is a potential area of vulnerability. The success of cloud computing solutions is highly dependent on the availability of the company’s network, Internet bandwidth, and the reliability of the provider’s servers (among other things). If any of these components fails, then the clouds based apps become unavailable until the problem is fixed. This could cause significant problems if the cloud based app is mission critical.

• •

•

Manageable. – Cloud computing is attractive to companies in terms of manageability because most of the burden for manageability (e.g. installing, maintaining, upgrading, etc.) are handled by the vendor or application provider.

Adaptable. – Cloud computing is attractive to companies in terms of adaptability because capacity (e.g. number of users with access to the app) can be adjusted (increased or decreased) almost immediately. Making these kinds of changes is very easy compared to traditional solutions that had to be physically installed on company computers or servers by IT employees.

Affordable. – Cloud computing is attractive to companies in terms of affordability because expenses are directly related to the level of use. Initial investments in software and installations costs are quite low compared to traditional software solutions which frees up financial resources for other uses.

Conclusion: Because cloud computing solutions are generally superior to traditional software solutions on three of the four criteria, organizations have increased their adoption of this technology.

Difficulty: Hard Section Ref: 2.4 Cloud Computing and Services AACSB: Use of Information Technology

9. Briefly describe three key benefits of virtualization described in your textbook.

Answer: • • •

Energy-efficiency. Virtualization minimizes energy consumed running and cooling servers in the data center—up a 95 percent reduction in energy use per server.

Scalability and load balancing. Virtualization provides load balancing to handle the demand for requests to the site. The VMware infrastructure automatically distributes the load across a cluster of physical servers to ensure the maximum performance of all running VMs. Total cost of ownership. Because virtualization reduces the number of physical servers required, reduces the amount of space taken up by servers and saves energy costs, over a three-year lifecycle, a VM costs approximately 75 percent less to operate than a physical server.

Difficulty: Hard Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

10. Briefly define virtualization. Draw a simple diagram of how virtualization is used to create virtual machines. Your diagram should include: an application layer, a virtualization layer and a hardware layer.

Answer: Virtualization is a technique that creates a virtualization layer and multiple virtual machines (VM) to run on a single physical machine. The virtualization layer makes it possible for each VM to share the resources of the hardware.

Application

Application

Application

Operating System

Operating System

Operating System

Virtualization Layer

Hardware Layer

Difficulty: Hard Section Ref: 2.5 Virtualization and VM (Virtual Machines) AACSB: Use of Information Technology

Chapter 3: Database, Data Warehouse, and Data Mining Test Bank Multiple Choice 1. ___________________ technology is used to archive the growing amount of physical data (e.g. paper forms, letters, contracts, etc.) and digital data to meet business needs, as well as regulatory and legal requirements. a. b. c. d.

Document management USB drive File management Mashup

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

2. In terms of IS dependability, _________________data management technologies means zero-downtime, zero data loss, and continuous access to data, analytics, and reporting. a. b. c. d.

Redundant process Priority process Fault tolerant High performance

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

3. __________________ refers to an organization’s ability to get information to the people who need it to make decisions or react appropriately to business events. a. b. c. d.

Business Intelligence Operational intelligence Information Accessibility Information Fluidity

Answer: B Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

4. An ad-hoc request for specific data or information from a database or warehouse is called a(n) ___________. a. b. c. d.

Report Analysis Digest Query

Answer: D Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

5. Databases are optimized for extremely fast processing of ____________—or ad hoc user requests for specific data. a. b. c. d.

Reports Decision support Queries Statistical analysis

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

6. Many database management systems use the ______________________ for programming queries. a. b. c. d.

Syntax Query Language (SQL) Structured Query Language (SQL) Statistical Query Language (SQL) Standard Query Language (SQL)

Answer: B Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

7. Data generated by business apps, sensors, and transaction processing systems (TPS) are typically stored first in a ______________. a. b. c. d.

Database Data warehouse Data mart Data silo

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

8. _______________________ integrate data from multiple databases and data silos and organize them for complex analysis, knowledge discovery, and to support decision making. a. b. c. d.

Databases Data warehouses Data collectors Data silos

Answer: B Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

9. Data warehouses and data marts are optimized for all of the following except: a. b. c. d.

OLTP – Online Transaction Processing Data mining Business Intelligence (BI) Decision support

Answer: A Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

10. _________________ are small-scale data warehouses that support a single function or department. a. b. c. d.

Databases Data warehouses Data marts Data silos

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

11. _____________________ tools and techniques process data and do statistical analysis for insight and discovery—that is, to discover meaningful relationships in the data, keep informed of real time, gain insight, detect trends, and identify opportunities and risks. a. b. c. d.

Metric analysis Market research Business intelligence (BI) Pattern recognition

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

12. ________________________ are computer programs used to manage additions, updates, and deletions of data in a database as transactions occur; and support data queries and reporting. a. b. c. d.

Database management systems (DBMS) Data warehouse management systems (DWMS) Data silo management systems (DSMS) Data mart management systems (DMMS)

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

13. Systems designed to manage volatile transaction data are called _________________________. a. b. c. d.

Volatile data management (VDM) systems Online transaction processing (OLTP) systems Online analytical processing (OLAP) systems Transaction analysis (TA) systems

Answer: B Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

14. What are the two basic types of databases? a. b. c. d.

Simple and complex Static and dynamic Centralized and distributed.

Transaction and analytical

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

15. A(n) ________________ stores all related files in one physical location. a. b. c. d.

Centralized database Simple database Static database Analytical database

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 16. The primary benefits of centralized database configuration are better _____________ and ________________. a. b. c. d.

Reports / Statistical Tools Quality / Security Speed / Access Software / Hardware

Answer: B Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 17. The primary disadvantage of centralized database configurations is a. b. c. d.

Data security Data quality Availability of statistical analysis tools Transmission delay when users are geo-dispersed

Answer: D Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

18. A _____________________ allows apps on computers and mobiles to access data from local and remote databases. a. b. c. d.

Distributed database system Portable database system Flexible database system Centralized database system

Answer: A Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

19. Distributed databases use a(n) _____________ architecture to process information requests. a. b. c. d.

Client/server Unstructured High speed Select Query (SQ)

Answer: A Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

20. In a distributed database configuration, the computers and mobile devices that access data from remote servers are called ________________. a. b. c. d.

Servers Query Tools Clients Computing accesories

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

21. In terms of the major functions performed by a DBMS, “data filtering and profiling” refers to which of the following? a. Inspecting the data for errors, inconsistencies, redundancies, and incomplete information. b. Correcting, standardizing, and verifying the integrity of the data. c. Integrating, matching, or linking data from disparate sources. d. Checking and controlling data integrity over time.

Answer: A Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 22. In terms of the major functions performed by a DBMS, “maintaining data integrity” refers to which of the following? a. Inspecting the data for errors, inconsistencies, redundancies, and incomplete information. b. Integrating, matching, or linking data from disparate sources. c. Correcting, standardizing, and verifying the integrity of the data. d. Checking and controlling data integrity over time.

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

23. In terms of the major functions performed by a DBMS, data synchronization refers to which of the following? a. b. c. d.

Correcting, standardizing, and verifying the integrity of the data.

Integrating, matching, or linking data from disparate sources.

Enhancing data using information from internal and external data sources.

Checking and controlling data integrity over time.

Answer: B Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

24. In terms of the major functions performed by a DBMS, data enrichment refers to which of the following? a. b. c. d.

Correcting, standardizing, and verifying the integrity of the data.

Integrating, matching, or linking data from disparate sources.

Enhancing data using information from internal and external data sources.

Checking and controlling data integrity over time.

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

25. In terms of the major functions performed by a DBMS, data maintenance refers to which of the following? a. b. c. d.

Correcting, standardizing, and verifying the integrity of the data.

Integrating, matching, or linking data from disparate sources.

Enhancing data using information from internal and external data sources.

Checking and controlling data integrity over time.

Answer: D Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

26. According to your text, which of the following is not a major data function performed by a DBMS? a. b. c. d.

Data filtering and profiling Data integrity Data synchronization Data analysis

Answer: D Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

27. Because of data _______________ in a database that is constantly being updated with realtime transactions, data must be exported to a data warehouse prior to data mining, use by DSS apps and business intelligence analyses. a. b. c. d.

Chaos Errors Volatility Security

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

28. Sometimes organizations place too much emphasis on the costs associated with acquiring high levels of data quality and ignore the costs of “dirty” or poor quality data. According to your text, what three factors make up the total costs associated with poor quality data? a. b. c. d.

Technology costs + Training costs + Marketing costs Value of lost business + Cost to prevent errors + Cost to correct errors Cost of repeating analyses + Lost opportunity costs + Cost of unrealized threats Value of lost business + Cost to correct errors + Cost of repeating analyses (on corrected data)

Answer: B Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 29. Which of the following is not one of the costs of “dirty” or poor quality data cited in your text? a. b. c. d.

Value of lost business Cost to prevent errors Cost to correct errors Cost of repeating analyses (on corrected data)

Answer: D Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

30. Despite the need for high-quality data, _________________ and technical issues often make it a difficult goal to achieve. a. b. c. d.

High costs Untrained or undertrained IT personnel User errors Organizational politics

Answer: D Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

31. The data ____________________ is a model that illustrates the way in which data moves through an organization. a. b. c. d.

Life cycle Pathway Flow chart Flow plan

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

32. Which of the following is not a stage in the data life cycle model? a. b. c. d.

Data sources and data bases Data storage Data cleaning and verification Data analysis

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

33. Most organizations cannot operate at peak performance with blind spots (lack of data availability) of 30 days or longer. For instance, many global financial services institutions need near real time data for peak performance. This is due to which of the following principles? a. b. c. d.

Principle of data in context Principle of 90/90 data use Principle of diminishing data value Principle of data quality

Answer: C Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

34. A majority of data is seldom accessed after a 3 month period. Which of the following principles is based on this observation? a. b. c. d.

Principle of data in context Principle of 90/90 data use Principle of diminishing data value Principle of data quality

Answer: B Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

35. __________________________ is a set of processes that aid organizations in integrating data from various sources or enterprise applications to create and maintain a more unified view of a customer, product, or other core data entity that is shared across systems. a. b. c. d.

Universal data management (UDM) Unified data management (UDM) Master data management (MDM) Integrated data management (IDM)

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

36. MDM consolidates data from various data sources into a ___________________, which then feeds data back to the applications, thereby creating accurate and consistent data across the enterprise. This helps eliminate redundancies, inaccuracies and omissions that might otherwise hinder business processes. a. b. c. d.

Multi-source data file Master reference file Maximized data file Mission central directory

Answer: B Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

37. The process of moving data from a transactional database to a data warehouse can be complex because of the need to integrate data from multiple sources or enterprise applications. _____________ serves as a layer between transactional data in a database and analytical data in a data warehouse. a. b. c. d.

Transient data Master data Integrated data Unified data

Answer: B Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

38. There are three kinds of enterprise data. Which of the following is not one of the types of enterprise data identified in your text? a. b. c. d.

Transactional data Master data Functional data Analytical data

Answer: C Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

39. According to your text, ___________________ are responsible for increasing the cost of health care by billions of dollars, not to mention, putting lives at risk. a. b. c. d.

Data errors Physicians who refuse to convert paper files to digital files Outdated computers Untrained or under-trained medical staff

Answer: A Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

40. Data in databases are said to be volatile because ____________________. a. Faulty data storage technology sometimes overwrites or deletes data accidently. b. Of issues related primarily to “human error”. c. Of rounding errors or software apps that lack the appropriate precision when making calculations. d. Data is constantly being added or updated by new transactions.

Answer: D Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

41. Because of volatility, data from databases are transferred to a ________________ so that they are ready for quick responses to inquiries. a. b. c. d.

Statistical engine Data repository Data cloud Data warehouse

Answer: D Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

42. Data warehouses that integrate data from databases across an entire organization are called _________________. a. b. c. d.

Data marts Enterprise data warehouses (EDW) Transaction data warehouses (TDW) Universal data warehouses (UDW)

Answer: B Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

43. Data warehouses are designed as ______________________________ systems, meaning that the data can be queried and analyzed much more efficiently than OLTP application databases. a. b. c. d.

Online analytical processing (OLAP) Online transaction processing (OLTP) Dynamic Data Stable Data Analytic (SDA)

Answer: A Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

44. Because the high costs of a data warehouse can make them too expensive for a company to operate, some organizations turn to an alternative, called a(n) _______________ which is smaller, less expensive and designed to serve the needs of a specific SBU, department or function, such as finance, marketing, or operations. a. b. c. d.

Analytical database Data backup system Operational data store Data mart

Answer: D Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

45. A(n) _____________________ is a database for transaction processing systems that uses data warehouse concepts to provide clean data. It is used for short-term decisions involving mission-critical applications rather than for the medium- and long-term decisions associated with the regular data warehouse. a. b. c. d.

Analytical database Data backup system Operational data store Data mart

Answer: C Difficulty: Hard Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

46. Databases that receive real-time transaction data are called Online Transaction Processing (OTLP) systems. Data is then transferred to data warehouses, known as ______________________ for further analysis. a. b. c. d.

Data Cloud Storage (DCS) Systems Online Analytical Processing (OLAP) Systems Online Batch Processing (OLBP) Systems Online Metric Processing (OLMP) Systems

Answer: B Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

47. In the past, data was transferred from OTLP databases to data warehouses periodically, say once a month or even once a week. Now, the trend is for real-time data warehousing so that analysis and decision support apps are able to use the most current data. These new types of data warehouses are called _____________________. a. b. c. d.

Active Data Warehouse (ADW) Always-on Data Warehouse (ADW) Dynamic Data Warehouse (DDW) 24/7 Data Warehouse

Answer: A Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

48. What is the key advantage of an active data warehouse (ADW) compared to a traditional data warehouse? a. The ADW is less expensive to install and operate b. Data from an ADW can be used for DSS, report generation and Business Intelligence c. Data in an ADW is constantly updated, providing more current information than a traditional data warehouse d. The ADW is more widely available from a larger number of vendors Answer: C Difficulty: Hard Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

49. Organizations often store data in applications with the following characteristics: -Designed and optimized to ensure that every transaction gets recorded and stored immediately.

-Volatile because data are constantly being updated, added, or edited.

-Online transaction processing (OLTP) systems because transactions must be recorded and processed as they occur, in real time.

These three characteristics best describe which of the following? a. b. c. d.

Decision Support System Management Information System Database System Data warehouse or Data Mart

Answer: C Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

50. Organizations often store data in applications with the following characteristics: -Designed and optimized for analysis and quick response to queries.

-Are nonvolatile, which means that when data are stored, they can be read only and never deleted so that they can be used for comparison with newer data.

-Online analytic processing (OLAP) systems -Subject-oriented, which means that the data captured is organized to have similar data linked together.

These four characteristics best describe which of the following? a. b. c. d.

Decision Support System Management Information System Database System Data warehouses or Data Marts

Answer: D Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology 51. When a customer calls an organization’s customer service center, the service representative has access to a complete history of the customer’s previous calls as well as a list of the services they have purchased and a customer profitability score. All of this information is up-to-date and is accessed from the company’s _________________. a. b. c. d.

Management Information System Transactional Database System Active Data warehouse (ADW) Online Transaction Processing (OLTP) System

Answer: C Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

52. __________________ is the process of analyzing large sets of data to find patterns, correlation, trends, or other meaningful relationships that can be used to increase revenues, decrease costs, or both. a. b. c. d.

Statistical analysis Data mining Business Intelligence (BI) Business analysis

Answer: B Difficulty: Easy Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

53. Specialized software used to analyze large data sets to find patterns, correlation, trends, or other meaningful relationships are called _____________________. a. b. c. d.

Statistical analysis programs Data mining tools Business Intelligence (BI) Systems Business analysis tools

Answer: B Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology 54. _________________ is (are) used to analyze an organization’s non-structured data that comes from word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and so on. a. b. c. d.

Media metrics Unstructured analytics Text mining Media mining

Answer: C Difficulty: Hard Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

55. With text analytics, information is extracted out of large quantities of various types of textual information. Which of the following is not one of the steps involved in text analytics described in your text? a. Exploration of documents for preliminary categorization or identification of common topics b. Preprocessing of documents to standardize content as much as possible c. Categorization and modeling of document content using statistical models and business rules d. Visualization – translating text data to graphic format (e.g. charts, graphs) for effective reporting Answer: D Difficulty: Hard Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

56. ________________ unites data, technology, analytics, and human knowledge to optimize business decisions by transforming data into usable, actionable business information. a. b. c. d.

Strategic business analysis Strategic planning Business Intelligence (BI) Strategic modeling

Answer: C Difficulty: Easy Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

57. A recent trend in the field of Business Intelligence (BI) involves mining very large data sets that come from billions upon billions of recorded transactions, social media interactions and records of individual user online activities. The trend in using these very large data sets is known as ____________. a. b. c. d.

Global data Universal data Vast data Big data

Answer: D Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

58. Because of the very large amount of data and the costs associated with BI applications, small and mid-sized companies with limited IT staff and budgets sometimes use a new BI architecture called _______________ . a. b. c. d.

Pre-defined BI models Limited feature BI tools BI in the cloud Simple BI

Answer: C Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

59. According to a study conducted by MIT Sloan Management Review and IBM, top performing companies use BI and business analytics for both tactical financial insights (e.g. forecasting, budgeting and supply chain management) as well as strategic issues like _____________________. a. b. c. d.

Developing competitive advantages Tracking social media activity Analyzing use of company website Tracking employee productivity

Answer: A Difficulty: Hard Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

60. A 2011 study by MIT Sloan Management Review and IBM studied over 4500 firms and their use of BI and business analytics. Which of the following was not cited in your text as one of the study’s findings? a. Top-performing organizations use analytics five times more than lower performers. b. There is widespread belief that analytics offers value. c. Approximately 1/3 (34%) of the respondents indicated they were planning to reduce expenditures related to BI and business analytics because of high costs. d. Half of the respondents said that improvement of information and analytics was a top priority in their organizations.

Answer: C Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

61. According to a recent (2012) study of 176 organizations worldwide by Aberdeen, the volume of physical documents is expected to ______________________. a. b. c. d.

Increase by 30% per year Increase slightly over the next 5 years Remain about the same for the next 5 years Decrease by 30% per year due to digitalization technologies

Answer: A Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

62. ____________________________ consist of hardware and software that manage and archive electronic documents and also convert paper documents into edocuments and then index and store them according to company policy. a. b. c. d.

Paper scanning systems (PSS) Document management systems (DMS) Document Filing Systems (DFS) Digital Document Systems (DDS)

Answer: B Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

63. Companies in some industries are required by law to retain financial documents for at least seven years. In large companies, being able to locate and retrieve documents from previous years can be extremely challenging, not to mention the logistical challenge associated with warehousing large amounts of paper. Increasingly, companies that face these challenges are turning to _______________. a. b. c. d.

Digital Document Systems (DDS) Regulated Document Storage Systems (RDSS) Document Filing Systems (DFS) Document management systems (DMS)

Answer: D Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

64. Which of the following was not listed in your text as a benefit experienced by organizations that use a Document Management System (DMS)? a. b. c. d.

Enables the company to access and use the content contained in the documents Cuts labor costs by automating business processes Significantly reduces the use of paper documents and physical records Reduces the time and effort required to locate information the business needs to support decision making

Answer: C Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

65. Which of the following was not listed in your text as a benefit experienced by organizations that use a Document Management System (DMS)? a. Reduction in the cost of discarding documents securely (i.e. shredding, destroying, disposal) b. Enabling the company to access and use the content contained in the documents c. Improving the security of the content, thereby reducing the risk of intellectual property theft d. Minimizing the costs associated with printing, storing, and searching for content Answer: A Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

66. Which of the following was not listed in your text as a major document management tool? a. b. c. d.

Workflow software Authoring tools Databases eReader Devices

Answer: D Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

67. Companies have always faced the challenge of managing physical documents. However, the most significant current challenge involves ___________________. a. The volume of documents that must be reviewed to determine if they should be retained or destroyed b. Loading documents onto company websites c. Sharing documents across geographic locations d. Translating documents into other languages Answer: A Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

True/False 1. Document management technology archives digital and physical data to meet business needs, as well as regulatory and legal requirements.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

2. In terms of IS dependability, fault tolerant data management technologies means zerodowntime, zero data loss, and continuous access to data, analytics, and reporting.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

3. Operational intelligence refers to the credentials, technological skills, decision making abilities and industry experience of key leaders in an organization.

Answer: False Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

4. Traditional databases are not well suited for managing messy data such as customer comments and tweets.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

5. An ad-hoc request for specific data or information from a database or warehouse is called a report.

Answer: False Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

6. An ad-hoc request for specific data or information from a database or warehouse is called a query.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

7. Many database management systems use the Structured Query Language (SQL) for programming queries.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

8. Many database management systems use the Syntax Query Language (SQL) for programming queries.

Answer: False Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

9. Databases are optimized for extremely fast processing of queries -or ad hoc user requests for specific data.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

10. Data generated by business apps, sensors, and transaction processing systems (TPS) are typically stored first in a database.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

11. Data warehouses integrate data from multiple databases and data silos and organize them for complex analysis, knowledge discovery, and to support decision making.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

12. Data marts are small-scale data warehouses that support a single function or department.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 13. Mini-data warehouses are small-scale data warehouses that support a single function or department.

Answer: False Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 14. Business intelligence (BI) tools and techniques process data and do statistical analysis for insight and discovery—that is, to discover meaningful relationships in the data, keep informed of real time, gain insight, detect trends, and identify opportunities and risks.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

15. Database management systems (DBMS) are computer programs used to manage additions, updates, and deletions of data in a database as transactions occur; and support data queries and reporting.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

16. Data warehouse management systems (DWMS) are computer programs used to manage additions, updates, and deletions of data in a database as transactions occur; and support data queries and reporting.

Answer: False Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

17. Online transaction processing (OLTP) systems designed to manage volatile transaction data.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

18. Online analytical processing (OLAP) systems designed to manage volatile transaction data.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

19. The two basic types of database systems are centralized databases and distributed databases.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

20. The two basic types of database systems are static databases and dynamic databases.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

21. A centralized database stores all related files in one physical location.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

22. The primary benefits of centralized database configuration are better quality and better security.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

23. The primary benefits of centralized database configuration are better reporting features and better statistical analysis tools.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

24. The primary disadvantage of centralized database configurations is transmission delay when users are geo-dispersed.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

25. The primary disadvantage of distributed database configurations is transmission delay when users are geo-dispersed.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

26. A distributed database allows apps on computers and mobiles to access data from local and remote databases.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

27. Distributed databases use a client/server architecture to process information requests.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

28. Distributed databases use a Select Query (SQ) architecture to process information requests.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

29. In a distributed database configuration, the computers and mobile devices that access data from remote servers are called clients.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 30. In terms of the major functions performed by a DBMS, “data filtering and profiling” refers to inspecting the data for errors, inconsistencies, redundancies, and incomplete information.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

31. In terms of the major functions performed by a DBMS, “maintaining data integrity” refers to integrating, matching, or linking data from disparate sources.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 32. In terms of the major functions performed by a DBMS, “data synchronization” refers to integrating, matching, or linking data from disparate sources.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

33. In terms of the major functions performed by a DBMS, data enrichment refers to correcting, standardizing, and verifying the integrity of the data.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

34. In terms of the major functions performed by a DBMS, data maintenance refers to checking and controlling data integrity over time.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

35. Because of data volatility in a database that is constantly being updated with real-time transactions, data must be exported to a data warehouse prior to data mining, use by DSS apps and business intelligence analyses.

Answer: True Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

36. According to your text, the true costs associated with poor data quality are: Value of lost business + Cost to prevent errors + Cost to correct errors.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

37. According to your text, the true costs associated with poor data quality are: Cost of repeating analyses + Lost opportunity costs + Cost of unrealized threats Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

38. Despite the need for high-quality data, organizational politics and technical issues often make it a difficult goal to achieve.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 39. The data life cycle is a model that illustrates the way in which data moves through an organization.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

40. The data pathway model illustrates the way in which data moves through an organization.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

41. The principle of diminishing data values suggests that many global financial services institutions need near real time data for peak performance.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

42. The principle of 90/90 data use suggests that 90% of the capability to capture, process, format, and distribute data in near real time or faster dissipates within 90 seconds of a transaction occurring.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

43. Master data management (MDM) is a set of processes that aid organizations in integrating data from various sources or enterprise applications to create and maintain a more unified view of a customer, product, or other core data entity that is shared across systems.

Answer: True Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

44. MDM consolidates data from various data sources into a multi-source data file, which then feeds data back to the applications, thereby creating accurate and consistent data across the enterprise.

Answer: False Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

45. MDM consolidates data from various data sources into a master reference file, which then feeds data back to the applications, thereby creating accurate and consistent data across the enterprise.

Answer: True Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

46. Master data serves as a layer between transactional data in a database and analytical data in a data warehouse.

Answer: True Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

47. There are three kinds of enterprise data: Transactional data, Master data and Analytical data.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

48. According to your text, data errors are responsible for increasing the cost of health care by billions of dollars, not to mention, putting lives at risk.

Answer: True Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

49. Data in databases are said to be volatile because of rounding errors or software apps that lack the appropriate precision when making calculations.

Answer: False Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

50. Data in databases are said to be volatile because data is constantly being added or updated by new transactions.

Answer: True Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

51. Because of volatility, data from databases are transferred to a data warehouse so that they are ready for quick responses to inquiries.

Answer: True Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

52. Data warehouses that integrate data from databases across an entire organization are called enterprise data warehouses.

Answer: True Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

53. Data warehouses are designed as online transaction processing (OLTP) systems, meaning that the data can be queried and analyzed much more efficiently than OLAP applications.

Answer: False Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

54. Data warehouses are designed as online analytical processing (OLAP) systems, meaning that the data can be queried and analyzed much more efficiently than OLTP application databases.

Answer: True Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

55. Because the high costs of a data warehouse can make them too expensive for a company to operate, some organizations turn to an alternative, called a data mart.

Answer: True Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

56. Because the high costs of a data warehouse can make them too expensive for a company to operate, some organizations turn to an alternative, called an analytical database.

Answer: False Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

57. Databases that receive real-time transaction data are called Online Transaction Processing (OTLP) systems.

Answer: True Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

58. An active data warehouse (ADW) is a relatively new OLAP system that is updated in realtime, providing the most current data available for analysis and decision support apps.

Answer: True Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

59. The key advantage of an active data warehouse (ADW) is that it is less expensive to install and operate.

Answer: False Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

60. Specialized software used to analyze large data sets to find patterns, correlation, trends, or other meaningful relationships are called data mining tools.

Answer: True Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

61. Specialized software used to analyze large data sets to find patterns, correlation, trends, or other meaningful relationships are pattern recognition applications.

Answer: False Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology 62. Text mining is a process used to analyze an organization’s non-structured data that comes from word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and so on.

Answer: True Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology 63. Unstructured analytic analysis is a process used to analyze an organization’s non-structured data that comes from word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and so on.

Answer: False Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology 64. “Big Data” is a recent trend in the field of Business Intelligence (BI) that involves mining very large data sets that come from billions upon billions of recorded transactions, social media interactions and records of individual user online activities.

Answer: True Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

65. Because of the very large amount of data and the costs associated with BI applications, small and mid-sized companies with limited IT staff and budgets sometimes use a new BI architecture called Pre-defined BI models.

Answer: False Difficulty: Hard Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

66. Because of the very large amount of data and the costs associated with BI applications, small and mid-sized companies with limited IT staff and budgets sometimes use a new BI architecture called BI in the cloud.

Answer: True Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

67. According to a study conducted by MIT Sloan Management Review and IBM, top performing companies use BI and business analytics for both tactical financial insights (e.g. forecasting, budgeting and supply chain management) as well as strategic issues like developing competitive advantages.

Answer: True Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

68. According to a study conducted by MIT Sloan Management Review and IBM topperforming organizations use analytics five times more than lower performers.

Answer: True Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

69. Aberdeen’s (2012) survey of 176 organizations worldwide found that the volume of physical (paper) documents is declining by approximately 30% per year thanks to increased use of digitalization and growing concern for the environment.

Answer: False Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology 70. Aberdeen’s (2012) survey of 176 organizations worldwide found that the volume of physical (paper) documents is increasing by approximately 30% per year.

Answer: True Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology 71. Tweets and Facebook status updates are typical examples of “structured data” stored in databases.

Answer: False Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

72. In large companies, being able to locate and retrieve documents from previous years can be extremely challenging, not to mention the logistical challenge associated with warehousing large amounts of paper. Increasingly, companies that face these challenges are turning to Document Management Systems (DMS).

Answer: True Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

73. An advantage of Document Management Systems (DMS) is that they help organizations cut labor costs by automating business processes.

Answer: True Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

74. An advantage of Document Management Systems (DMS) is that they significantly reduce the use of paper documents and physical records in most organizations.

Answer: False Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

75. An advantage of Document Management Systems (DMS) is that they reduce the time and effort required to locate information the business needs to support decision making Answer: True Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

76. Companies have always faced the challenge of managing physical documents. However, the most significant current challenge involves the volume of documents that must be reviewed to determine if they should be retained or destroyed.

Answer: True Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

77. Thanks to increased use of Document Management Systems (DMS) many offices and companies are becoming “paperless”.

Answer: False Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

Short Answer 1. _____________________ technology archives digital and physical data to meet business needs, as well as regulatory and legal requirements.

Answer: Document management Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

2. In terms of IS dependability, ______________ data management technologies means zerodowntime, zero data loss, and continuous access to data, analytics, and reporting.

Answer: Fault tolerant Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 3. _________________ refers to refers to an organization’s ability to get information to the people who need it to make decisions or react appropriately to business events.

Answer: Operational intelligence Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

4. Traditional databases are not well suited for managing _____________ such as customer comments and tweets.

Answer: Messy or, unstructured, or social data Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

5. An ad-hoc request for specific data or information from a database or warehouse is called a ______________.

Answer: Query Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

6. Many database management systems use __________________ for programming queries.

Answer: Structured Query Language (SQL) Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

7. Databases are optimized for extremely fast processing of ___________ -or ad hoc user requests for specific data.

Answer: Queries Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

8. Data generated by business apps, sensors, and transaction processing systems (TPS) are typically stored first in a ________________.

Answer: Database Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

9. Data __________________ integrate data from multiple databases and data silos and organize them for complex analysis, knowledge discovery, and to support decision making.

Answer: Warehouses Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

10. ___________ are small-scale data warehouses that support a single function or department.

Answer: Data marts Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

11. _______________________ tools and techniques process data and do statistical analysis for insight and discovery—that is, to discover meaningful relationships in the data, keep informed of real time, gain insight, detect trends, and identify opportunities and risks.

Answer: Business intelligence (BI) Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

12. ___________________________ are computer programs used to manage additions, updates, and deletions of data in a database as transactions occur; and support data queries and reporting.

Answer: Database management systems (DBMS) Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

13. ______________________ or OLTP systems designed to manage volatile transaction data.

Answer: Online transaction processing Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

14. The two basic types of database systems are ___________ databases and ___________ databases.

Answer: centralized / distributed Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

15. A _________________ database stores all related files in one physical location.

Answer: Centralized Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

16. The primary benefits of centralized database configuration are better quality and better ________________.

Answer: security Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

17. The primary disadvantage of centralized database configurations is _____________ when users are geo-dispersed.

Answer: Transmission delay Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

18. A distributed database allows apps on computers and mobiles to access data from local and _____________ databases.

Answer: Remote Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

19. Distributed databases use a _____________ architecture to process information requests.

Answer: Client/server Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

20. In a distributed database configuration, the computers and mobile devices that access data from remote servers are called ______________.

Answer: Clients Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

21. In terms of the major functions performed by a DBMS, _________________ refers to inspecting the data for errors, inconsistencies, redundancies, and incomplete information.

Answer: Data filtering and profiling Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

22. In terms of the major functions performed by a DBMS, _______________ refers to integrating, matching, or linking data from disparate sources.

Answer: Data synchronization Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

23. In terms of the major functions performed by a DBMS, _______________ refers to checking and controlling data integrity over time.

Answer: Data maintenance Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

24. Because of data volatility in a database that is constantly being updated with real-time transactions, data must be exported to a ________________ prior to data mining, use by DSS apps and business intelligence analyses.

Answer: Data warehouse Difficulty: Easy Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

25. According to your text, the true costs associated with poor data quality are: ____________ + Cost to prevent errors + Cost to correct errors.

Answer: Value of lost business Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

26. Despite the need for high-quality data, ________________ and technical issues often make it a difficult goal to achieve.

Answer: Organizational politics Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

27. The data _______________ is a model that illustrates the way in which data moves through an organization.

Answer: Life cycle Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

28. The principle of ___________________ suggests that many global financial services institutions need near real time data for peak performance.

Answer: diminishing data values Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

29. The principle of ________________ suggests that a majority of data is seldom accessed after a 3 month period.

Answer: 90/90 data use Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

30. _________________________ is a set of processes that aid organizations in integrating data from various sources or enterprise applications to create and maintain a more unified view of a customer, product, or other core data entity that is shared across systems.

Answer: Master data management (MDM) Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

31. MDM consolidates data from various data sources into a _____________ file, which then feeds data back to the applications, thereby creating accurate and consistent data across the enterprise.

Answer: master reference Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

32. _____________ data serves as a layer between transactional data in a database and analytical data in a data warehouse.

Answer: Master Difficulty: Hard Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

33. There are three kinds of enterprise data: Transactional data, _____________ data and Analytical data.

Answer: Master Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

34. According to your text, ___________ are responsible for increasing the cost of health care by billions of dollars, not to mention, putting lives at risk.

Answer: Data errors Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology

35. Data in databases are said to be _____________ because data is constantly being added or updated by new transactions.

Answer: Volatile Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

36. Because of _____________, data from databases are transferred to a data warehouse so that they are ready for quick responses to inquiries.

Answer: volatility Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

37. Data warehouses that integrate data from databases across an entire organization are called ____________ data warehouses.

Answer: Enterprise Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

38. Data warehouses are designed as online analytical processing (OLAP) systems, meaning that the data can be queried and analyzed much more efficiently than __________ application databases.

Answer: Online Transaction Processing (OLTP) Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

39. Because the high costs of a data warehouse can make them too expensive for a company to operate, some organizations turn to an alternative, called a _____________.

Answer: data mart Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

40. Databases that receive real-time transaction data are called _____________________ systems.

Answer: Online Transaction Processing (OTLP) Difficulty: Easy Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

41. An _______________________ is a relatively new OLAP system that is updated in realtime, providing the most current data available for analysis and decision support apps.

Answer: Active data warehouse (ADW) Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

42. Specialized software used to analyze large data sets to find patterns, correlation, trends, or other meaningful relationships are called _______________ tools.

Answer: Data mining Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology 43. _____________________ is a process used to analyze an organization’s non-structured data that comes from word processing documents, social media, text messages, audio, faxes, memos, call center or claims notes, and so on.

Answer: Text mining Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

44. _______________ is a recent trend in the field of Business Intelligence (BI) that involves mining very large data sets that come from billions upon billions of recorded transactions, social media interactions and records of individual user online activities.

Answer: Big Data Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

45. Because of the very large amount of data and the costs associated with BI applications, small and mid-sized companies with limited IT staff and budgets sometimes use a new cloud based BI architecture called ________________.

Answer: BI in the cloud Difficulty: Easy Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology

46. According to a study conducted by MIT Sloan Management Review and IBM topperforming organizations use _______________ five times more than lower performers.

Answer: Analytics Difficulty: Medium Section Ref: 3.4 Business Intelligence (BI) and Analytics AACSB: Use of Information Technology 47. Aberdeen’s (2012) survey of 176 organizations worldwide found that the volume of physical (paper) documents is ________________ by approximately 30% per year.

Answer: Increasing Difficulty: Easy Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

48. In large companies, being able to locate and retrieve documents from previous years can be extremely challenging, not to mention the logistical challenge associated with warehousing large amounts of paper. Increasingly, companies that face these challenges are turning to _______________ to aid them with these tasks.

Answer: Document Management Systems (DMS) Difficulty: Hard Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

49. An advantage of Document Management Systems (DMS) is that they help organizations reduce ______________ by automating business processes.

Answer: Labor costs Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

50. An advantage of Document Management Systems (DMS) is that they reduce the time and effort required to ____________ information the business needs to support decision making Answer: Find or Locate Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

51. Companies have always faced the challenge of managing physical documents. However, the most significant current challenge involves the ___________ of documents that must be reviewed to determine if they should be retained or destroyed.

Answer: Volume or amount Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

Essay Questions 1. Identify the key uses and differences between a database, data warehouse and data mart.

Answer: •

•

•

Databases store data generated by business apps, sensors, and transaction processing systems (TPS). Data contained in databases is considered “volatile” because it is constantly being changed or updated. Therefore, databases are not considered a good source of data for Decision Support, Reporting or Statistical Analysis applications.

Data warehouses integrate data from multiple databases and data silos and organize them for complex analysis, knowledge discovery, and to support decision making. Because data warehouses do not contain volatile data, they are considered more appropriate for complex problem solving applications. They are also are larger than transactional databases.

Data marts are small-scale data warehouses that support a single function or department.

Organizations that are unable to invest in data warehousing may start with one or more data marts.

Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 2. According to your text, “dirty data” costs businesses a lot of money. What is “dirty data” and what are the three factors identified in your text that contribute to its cost?

Answer: Dirty data—that is, poor quality data—lack integrity and cannot be trusted. Too often managers and information workers are actually constrained by data that cannot be trusted because they are incomplete, out of context, outdated, inaccurate, inaccessible, or so overwhelming that they require weeks to analyze. In those situations, the decision maker is facing too much uncertainty to make intelligent business decisions. This can result in lost business and costs related to correcting and/or preventing errors. The cost of poor quality data may be expressed by the following formula.

Cost of Poor = Value of Lost Business+ Cost to Correct Errors + Cost to Prevent Errors Quality Data Difficulty: Medium Section Ref: 3.1 Database Technology AACSB: Use of Information Technology 3. What is an Active Data Warehouse? Why is it of growing interest to business organizations?

Answer: An active data warehouse (ADW) is a “real-time” data warehouse. In other words, unlike traditional data warehouses that are updated, say, daily or less frequently, the ADW is updated very frequently so that the systems that use its data are always up-to-date.

Businesses in many industries are increasingly relying on systems that require the most current information. Therefore, ADWs are of growing interest to companies who hope to gain a competitive advantage.

Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

4. What is the difference between an Online Transaction Processing (OLTP) System and an Online Analytical Processing (OLAP) system?

Answer: The Online Transaction Processing (OLTP) system is the means by which transaction data are conveyed to a transactional database. The data in the database are said to be volatile because they are constantly being updated or changed as new transactions occur. Data warehouses, on the other hand, are part of an Online Analytical Processing (OLAP) system.

Data warehouses are not typically updated so frequently and therefore the data is more stable and appropriate for use with complex problem solving applications and statistical analysis.

Difficulty: Medium Section Ref: 3.2 Data Warehouse and Data Mart AACSB: Use of Information Technology

5. Briefly explain data mining and text mining. Why are these of increasing interest to businesses?

Answer: Data mining, which is also called data discovery, is the process of analyzing data from different perspectives and summarizing it into information that can be used to increase revenues, decrease costs, or both. Data mining software allows users to analyze data from various dimensions or angles, categorize it, and find correlations or patterns among fields in the data warehouse. It is frequently used with very large data sets (in data warehouses).

Text mining is a broad category that involves interpreting words and concepts in context.

Text mining helps companies to tap in to the explosion of customer opinions expressed online. Social commentary and social media are being mined for sentiment analysis or to understand consumer intent. Companies wish to mine large data sets and unstructured data

from social media activity to learn more about their business operations and the behavior of their consumers in order to gain a competitive advantage.

Difficulty: Medium Section Ref: 3.3 Data and Text Mining AACSB: Use of Information Technology

6. Briefly describe a Document Management System and explain why it is of increasing importance in today’s business environment.

Answer: Document management systems (DMS) consist of hardware and software that manage and archive electronic documents and also convert paper documents into edocuments and then index and store them according to company policy. For example, companies may be required by law to retain financial documents for at least seven years, whereas e-mail messages about marketing promotions would be retained for a year and then discarded. DMS have query and search capabilities so that they can be identified and accessed like data in a database. These systems range from those designed to support a small workgroup to full-featured, webenabled enterprise-wide systems. While some experts used to believe that technology would eventually lead to a “paperless office”, just the opposite seems to be happening. Some studies show that the use of paper or physical documents is growing by as much as 30% per year. Because of this growth, companies increasingly rely on document management systems to help them store, maintain and retrieve documents for purposes of regulatory compliance, decision making and identifying potential competitive advantages.

Difficulty: Medium Section Ref: 3.5 Digital and Physical Document Management AACSB: Use of Information Technology

Chapter 4: Networks, Collaboration, and Sustainability Test Bank Multiple Choice 1. ___________________ networks carry voice calls by converting voice (analog signals) to digital signals. a. b. c. d.

USB Audio (USBA) Voice over IP (VoIP) MP4 Enabled Audio Streaming

Answer: B Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

2. Network ____________ is measured in terms of its throughput, or bandwidth. a. b. c. d.

Protocol Size Distance Capacity

Answer: D Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

3. The term _____________ is short for broad bandwidth and means high capacity. a. b. c. d.

4G 3G Broadband Smart grid

Answer: C Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

4. As just one indication of how the need for high capacity networks will grow in the future, consulting firm Booz & Co. estimates that within the next decade up to ___________ sensors will be deployed globally, transmitting data over wireless networks. a. b. c. d.

One million One hundred million One billion One trillion

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

5. Which of the following was not one of the basic functions supported by computer networks described in your textbook? a. b. c. d.

Communication Mobility Collaboration Statistical Analysis

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

6. Which of the following was not one of the basic functions supported by computer networks described in your textbook? a. b. c. d.

Relationships Strategic Planning Search Collaboration

Answer: B Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

7. _________________ defines the basic method by which data is sent from one device to another via a private network, cellular network, or public Internet. a. b. c. d.

Internet Protocol (IP) Voice over IP (VoIP) Internet Process (IP) Intelligent Progression (IP)

Answer: A Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

8. Network ______________________ are devices that transmit data to their destination based on IP addresses. a. b. c. d.

Modems and browsers IP transmitters Switches and routers Web pages and browsers

Answer: C Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

9. In terms of the “building blocks” of a network, ______________ are used to connect computers, printers and servers within a building or campus. They create a network. a. b. c. d.

Routers and switches Modems and Bluetooth Browsers and TCP/IP Switches and WiMAX

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 10. In terms of the “building blocks” of a network, _____________ connect networks by linking computers to the Internet so that users can share a connection. a. b. c. d.

Routers Modems Browsers Circuits

Answer: A Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

11. In terms of digital transmissions, _______________ transfers data in small blocks based on the destination IP address. a. b. c. d.

Chunking Circuit switching Packet switching IP Streaming

Answer: C Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

12. _________________ is older technology for transmitting signals that originated with telephone calls; and is inefficient for digital transmission. a. b. c. d.

Voice over Wire (VOW) Circuit switching Packet switching Analog Streaming

Answer: B Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 13. An important management decision concerns the network’s __________________ especially for delay-sensitive data such as real-time voice and high-quality video. a. b. c. d.

Size and Scope Availability and number of access points Mobility Quality of service (QoS)

Answer: D Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

14. Bandwidth-intensive apps are important to business processes, but they also strain network capabilities and resources. One strategy for regulating network use is to “prioritize traffic” which means: a. Allocating network resources to users based on seniority in the organization b. Data and apps that are time-delay sensitive, such as voice and video are given priority on the network c. Giving priority to users who have faster computers to avoid bottlenecks d. Restricting the use of apps, such as voice and video that disproportionally use network bandwidth, to certain times of the day when demand for network resources is low.

Answer: B Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

15. An alternative to “prioritizing traffic” on a network is to ______________, which means holding back traffic from non-time sensitive apps so that apps like voice and video run more effectively. a. b. c. d.

Throttle traffic Block traffic Re-direct traffic Filter traffic

Answer: A Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

16. In terms of network capacity, a pipeline analogy is often used. The larger the diameter of the pipe, the greater the throughput (volume) of water that flows through it and the faster water is being transferred through it. This analogy refers to a networks ________________. a. b. c. d.

Geographic coverage Transmission protocols Connectivity Bandwidth

Answer: D Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

17. Bandwidth depends on the _________________, the rules and standards that govern how devices on a network exchange data and talk to each other. a. b. c. d.

Security settings Organization’s IT policies Network protocol Traffic priority procedures

Answer: C Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

18. ________________ is the practice of managing data transfer to ensure a certain level of performance or QoS. a. b. c. d.

Data filtering Packet switching Circuit switching Traffic shaping

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

19. Which of the following best represents the position of people who are in favor of Net Neutrality? a. The Internet should be free for everyone. b. Internet service providers (ISPs) should treat all sources of data equally and not attempt to give priority to content providers who pay for faster transmission or to their own content. c. Providers of VoIP, video or similar bandwidth intensive services should pay more to ISPs to carry their content because they use a disproportionate amount of network resources. d. Users of VoIP, video or similar bandwidth intensive services should pay more to ISPs for this content because they use a disproportionate amount of network resources.

Answer: B Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Ethical understanding and reasoning abilities

20. Which of the following represents the primary concerns of people who are in favor of Net Neutrality? a. They fear that ISPs will be able to block or impede content representing controversial points of view and that access to high speed Internet transmission will be restricted only to content providers who can pay for faster transmission. b. They are concerned that ISPs will become over-regulated by government agencies. c. They are concerned that ISPs will lose the ability to properly fund network expansion to accommodate the growing need for bandwidth intensive services (e.g. VoIP and video streaming.) d. They are concerned about a growing risk to privacy and ability to transmit data securely over the Internet.

Answer: A Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Ethical understanding and reasoning abilities

21. Which of the following represents the primary concerns of people who are in not in favor of Net Neutrality? a. They are concerned about a growing risk to privacy and ability to transmit data securely over the Internet. b. They argue that there have always been different levels of Internet service and that a two-tiered system would enable more freedom of choice and promote Internet-based commerce. c. They are concerned that the government is not doing enough to properly regulate the Internet. d. They are concerned about the growth of traffic shaping because it has the potential to slow transmission of certain types of data or content.

Answer: B Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Ethical understanding and reasoning abilities

22. Which of the following is not true about the Net Neutrality debate? a. ISPs need a financially sustainable way to pay for the costs of network expansion and upgrades so that the Internet can meet the growing needs of the people and organizations that use it. b. A two-tiered system would make things more difficult for new, innovative businesses that lack the financial resources to pay for access to premium service levels. c. The FCC’s 2010 ruling allows ISPs to charge companies for faster data transmission – but does not allow ISPs to outright block content. d. Almost all business organizations favor a two-tiered system whereas most individual users favor Net Neutrality.

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Ethical understanding and reasoning abilities

23. ___________________is the basic communication protocol of the Internet. This protocol is supported by every major network operating system (OS) to ensure that all devices on the Internet can communicate. a. b. c. d.

HTML (Hypertext Markup Language) 3G and 4G TCP/IP: TCP/IP (transmission control protocol/Internet protocol) Real Time Transport Protocol (RTTP)

Answer: C Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

24. Cable or DSL Internet connections are referred to as __________________ broadband. a. b. c. d.

Mobile Fixed-line 3G mobile 4G mobile

Answer: B Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

25. Various types of wireless high-speed Internet connections that use portable modems, telephones or other devices are called ______________ broadband. a. b. c. d.

Mobile Fixed-line 3G mobile 4G mobile

Answer: A Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

26. _________ network standards enable the fastest data transfer rates on digital, or IP networks using portable devices. a. b. c. d.

Mobile Fixed-line 3G mobile 4G mobile

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

27. Which of the following is not a difference between 3G and 4G networks? a. 4G networks rely solely on packet-based IP, whereas 3G use circuit switching. b. 3G networks typically deliver average download speeds about one-tenth the rate of 4G networks. c. 3G networks are older technology and therefore more widely available as of 2013, but ultimately will be replaced by 4G networks. d. Most smart-phone applications will only work well on 4G networks.

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

28. __________________________ is an umbrella term that applies to various location-aware technologies that allow devices to communicate securely with each other over short distances. It is used, for instance, to allow people to make purchases with their smartphones. a. b. c. d.

GPS technology Location sensitive apps Geo-location technology Near-field communications

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 29. _______________________ is a location-aware system that transmits the identity (in the form of a unique serial number) of an object or person using radio waves. It is used to track items in a supply chain or equipment in a production facility. a. b. c. d.

Radio-frequency identification (RFID) Geo-location identification (GLID) GPS identification (GPSID) Pin-point ID (PPID)

Answer: A Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

30. New applications are being created that allow people to pay for things using a mobile device like a smart phone. For instance, at some hotels, guests can use smartphones for check-ins and room keys. Passengers can pay for fares by waving a smartphone across a terminal as they board a bus. These payments apps make use of ______________________ technologies. a. b. c. d.

GPS technology Location based apps Geo-location technology Near-field communications

Answer: D Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

31. Intelligent transport systems being developed by car manufacturers allow cars to communicate with each other and send alerts about sudden braking. In the event of a collision, the car’s system could automatically call emergency services. The technology could also apply the brakes automatically if it was determined that two cars were getting too close to each other. Intelligent transport systems are made possible by advances in ______________________. a. VoIP technologies b. GPS positioning and short-range wireless technologies, such as Bluetooth and Wi-Fi c. The smart grid d. Circuit switching technology Answer: B Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

32. In the 21st century global economy, advanced wireless networks are a foundation on which global economic activity takes place. Mobile data traffic is forecasted to grow by ______ its current size and speed through 2016 a. b. c. d.

2 times 4 times 8 times More than 16 times

Answer: D Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

33. Which of the following trends was not forecast in the Cisco Visual Networking Index (VNI) Mobile Data Traffic Forecast, 2011-2016? a. b. c. d.

More users are using more bandwidth More users switching to smaller mobile devices Mobile devices become more powerful Wireless mobile networks get faster

Answer: B Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

34. Mobile networks and infrastructure have the potential to bring down healthcare costs.

Wireless hospitals and remote patient monitoring, for example, are growing trends. Tracking medical equipment and hospital inventory, such as gurneys, are done with _____________ at a number of hospitals. a. b. c. d.

Fixed-line broadband technology Routers RFID tagging Switches

Answer: C Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

35. Enterprises are moving away from ad hoc adoption of mobile devices and network infrastructure to a more strategic planning build-out of their mobile capabilities. Which of the following was not a factor identified by your text as something that should be considered by organizations: a. b. c. d.

Demands of multi-tasking mobile devices on the network Impact of mobile technology on organizational culture More robust mobile OSs Mobile applications

Answer: B Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

36. Which of the following was not listed in your textbook as part of Mobile Infrastructure? a. b. c. d.

Software Support Security measures Cost of mobile devices

Answer: D Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

37. Which of the following is not one of the 3 general types of mobile networks discussed in your textbook? a. b. c. d.

WiMax Broad area networks (BANs) Local area networks (LANs) Wide area networks (WANs)

Answer: B Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

38. WANs for mobile computing are known as ___________________ a. b. c. d.

SWAN (satellite wide area network MWAN (mobile wide area network) EWAN (extended wide area network) WWANs (wireless wide area networks)

Answer: D Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

39. Standards with labels such as “802.11b”, “802.11a”, “802.11g” and so on are different kinds of _____________. a. b. c. d.

Wired network standards DSL network standards Wi-Fi networking standards World Wide Web standards

Answer: C Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

40. In most organizations today, when the network goes down, it causes __________________. a. b. c. d.

Little or no disruption Minor disruption of productivity or service Significant disruption of productivity or service Almost complete disruption of productivity or service, including lost sales, financial consequences and inability to process payroll and inventory.

Answer: D Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology 41. The capabilities of an organization’s network depend on all of the following except ________________. a. b. c. d.

Upgrades Strategic Mission Degree of proliferation of networked devices Tested backup system

Answer: B Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

42. The capabilities of an organization’s network depend on all of the following except ________________. a. b. c. d.

Maintenance and management of the networks Wireless and wired bandwidth Collaborative capabilities Proper Planning

Answer: C Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

43. In modern organizations, the network architecture is critical because it provides the infrastructure for ___________________________ within the company and with external partners and customers, regardless of their location. a. b. c. d.

Distribution of networked devices Collaborative work Strategic Planning Centralized command and control functions

Answer: B Difficulty: Hard Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

44. When a network fails, all of the following are key to correcting the problems and restoring functionality except: a. b. c. d.

Availability and competence of staff to diagnose and fix malfunctions.

Tested backup system Proliferation of networked devices Proper planning

Answer: C Difficulty: Hard Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

45. Traditionally, various information services—data, documents, voice, and video—have functioned independently of each other. Multiple networks were needed because of the lack of __________________ (or connectivity) between devices. a. b. c. d.

Accessibility Synchronization Bandwidth Interoperability

Answer: D Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

46. With ______________, voice and data transmissions travel in packets over telephone wires. a. b. c. d.

VoIP MP3 or MP4 TCP/IP Wi-Fi

Answer: A Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

47. According to your text, developing software for wireless devices had been challenging because ________________. a. Until recently, the market was not large enough to justify large scale investment in the development of software apps. b. Restrictions imposed by 2 or 3 dominate hardware manufacturers c. There has not been a widely accepted standard for wireless devices. d. Wireless devices are significantly more complex than traditional computing devices.

Answer: C Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

48. Different CPUs, operating systems, storage media, and mobile platform environments characterize the mobile device marketplace. This creates significant challenges for: a. b. c. d.

Mobile device retailers Mobile software developers Government regulators Strategic Planners

Answer: B Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

49. An ____________ is a widely used type of network based on Internet technology (e.g. browsers, Internet protocols, etc.) but focused on serving the internal informational needs of a company. a. b. c. d.

Intranet Extranet Virtual Private Network (VPN Socialnet

Answer: A Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

50. Dr. Garcia is a business professor at a large state college. At the start of each workday, he opens a Web browser on his office computer and accesses the university’s Web site. From there, he logs into his institution’s “MyCollege” portal with his username and password.

From the portal he can access his email, Web pages for each of his courses, and confidential information about the students he advises. Most likely, Dr. Garcia is using what kind of network when using the portal? a. b. c. d.

Extranet Intranet Socialnet Virtual Private Network (VPN

Answer: B Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

51. A(n) _______________ is a private, company-owned network that can be logged into remotely via the Internet. Typical users are suppliers, vendors, partners, or customers. a. b. c. d.

Intranet Extranet Virtual Private Network (VPN Socialnet

Answer: B Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

52. Efficient Auto Parts is a wholesale distributor. They purchase auto parts in bulk from manufacturers and sell in smaller quantities to regional retail outlets. They understand that carrying excess inventory can be expensive. On the other hand, running out of inventory can lead to lost business. Therefore, they have created a network that their suppliers can log into to check inventory levels for the parts they sell. When inventory levels reach an agreed upon level, the supplier automatically sends more to the distributor, with all the documentation being handled electronically. This system is most likely part of what kind of network? a. b. c. d.

Intranet Extranet Virtual Private Network (VPN Socialnet

Answer: B Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

53. When security issues are a special concern, companies want to take extra steps to make sure that transmissions can’t be intercepted or compromised. In these situations they will use a network that encrypts the packets before they are transferred over the network. This solution is called a(n) ___________________. a. b. c. d.

Intranet Extranet Virtual Private Network (VPN) SecureNet

Answer: C Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

54. The volume of data stored in many organizations reached the point where it actually interferes with productivity rather than contributes to it. One solution is ______________search. a. b. c. d.

Efficient Content Big data Enterprise

Answer: D Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

55. When Julie Smith wants to find information on the Internet, she uses the Google search engine. But when she wants to find a document or data set created by her company, she logs into the company Intranet and uses a search tool to conduct a(n) __________________ search. a. b. c. d.

On-site Internal Enterprise Intranet

Answer: C Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

56. In order to make searching for organizational documents, data files and other content possible, the organizations starts with _________________ which is conducted by software that crawls through directories and websites to extract content from databases and other repositories. a. b. c. d.

Enterprise search Directory analysis Content extraction Content indexing

Answer: D Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

57. When Julie Brown enters keywords into a search tool window and attempts to find certain documents, data files or other content on her company’s network, she is conducting a type of: a. b. c. d.

Query Analysis Indexing Extraction

Answer: A Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

58. How does a virtual private network (VPN) provide additional security over other types of networks? a. It requires a username and password for access. b. It encrypts data packets prior to transmission. c. Users are required to answer a set of “challenge questions” prior to being given access. d. Users are required to pass a retinal scan, finger print scan or some other high level security test before they can access the network.

Answer: B Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

59. According to your text, what specific collaboration practice or activity is used more extensively in high-performing companies than in low-performing ones? a. b. c. d.

Document sharing Text messaging Web meetings E-mail

Answer: C Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

60. E-mail, videoconferencing, fax, and texts—and newer media such as blogs, podcasts, RSS, wikis, VoIP, web meetings, are all part of a growing trend in the use of _____________ tools. a. b. c. d.

Networking Collaboration Social media Training

Answer: B Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology 61. Wal-Mart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P&G on a daily basis from every Wal-Mart store, and P&G uses the information to manage the inventory replenishment for Wal-Mart. This is an example of: a. b. c. d.

Virtual collaboration between companies Enterprise use of Intranets VoIP technologies Enterprise social media

Answer: A Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

62. Unilever’s web-based database, the Transportation Business Center (TBC), provides its 30 contract carriers with site specification requirements about pick-up and delivery locations.

The TBC contains information such as contact names and phone numbers, operating hours, the number of dock doors at a location, the height of the dock doors, how to make an appointment to deliver or pick up shipments, pallet configuration, and other special requirements. Unilever’s practice of providing this kind of information over a network with its carriers is an example of: a. b. c. d.

Enterprise use of Intranets Use of Big Data Virtual collaboration between businesses Enterprise search

Answer: C Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology 63. The success or failure of group work depends on a set of factors and processes known as _______________. a. b. c. d.

Team work Key Performance Indicators (KPIs) Group dynamics Effective leadership

Answer: C Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

64. Groups that are working together in modern organizations can face a number of challenges.

Which of the following is not a challenge identified in your textbook? a. Group members may be located in different places or work at different times. b. Group members may work for the same or different organizations. c. Needed data, information, or knowledge may be located in many sources, several of which are external to the organization. d. Groups may be composed of people from different levels in the organization – from the CEO down to the lowest paid member of the company.

Answer: D Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

65. Group activities devoted to idea generation can be hindered when members of the group are geographically dispersed, have conflicting schedules or any other reasons that prevents the group from meeting face to face. An effective solution to these problems is _________________. a. b. c. d.

Sharing ideas by email Cloud based brainstorming apps such as Evernote and iMindmap Online Posting ideas to social media sites such as YouTube, Pinterest or Twitter Forming workgroups with people that work in the same location or have compatible schedules.

Answer: B Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

66. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. Which of the following is not potential ethical or sustainability consequence discussed in your textbook? a. b. c. d.

Energy consumption and the related impact on the environment Distracted drivers (e.g. people who text while driving) Challenges associated with teaching people to use mobile technologies.

Potential health risks associated with frequent mobile phone use.

Answer: C Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

67. The dramatic growth in the number of power data centers, cell towers, base stations, recharge mobiles, and so on is damaging the environment because of ______________________. a. Depletion of radio frequencies. b. Radio Frequency Interference (RFI) is overcrowding specific areas of the electromagnetic spectrum. c. Many new technologies are located in fragile or important ecosystems. d. Increased energy consumption and related pollution Answer: D Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

68. In terms of environmental impact, global carbon emissions from communications technologies are expected to ____________________________. a. b. c. d.

Remain relatively stable between now and 2020 Increase by 4% annually between now and 2020.

Double by 2020.

Double each year between now and 2020.

Answer: C Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

69. Organizations that wish to intelligently address the negative environmental impact of growing demand for high-bandwidth computer services must _____________________. a. Reduce the number of people who have access to their networks or cut back on the overall amount of data flowing through the network. b. Develop technologies that do not rely on finite (non-renewable) radio frequencies utilized by wireless devices. c. Pass along costs of increased network use to their customers. d. Provide eco-sustainability in traffic transport and deliver services more intelligently, reliably, securely, efficiently, and at the lowest cost.

Answer: D Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

70. Alcatel-Lucent’s High Leverage Network (HLN) increases bandwidth and network capabilities while reducing the negative impact on the environment. This works because the HLN ___________________________. a. Reduces or eliminates use of finite (non-renewable) radio frequencies utilized by wireless devices. b. Reduces Radio Frequency Interference (RFI) - overcrowding of specific areas of the electromagnetic spectrum. c. Limits the number of people who can access the network at any one time – particularly during times of peak energy demand. d. Delivers increased bandwidth using fewer devices and energy.

Answer: D Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

71. Mobile network operators around the globe have pledged to cut network related carbon emissions by 42 percent. Which of the following is not one of the sustainability incentives motivating this effort cited in your text? a. To overcome limited availability of reliable electricity. Many developing countries are high-growth markets for telecommunications, but they have limited reliable access to electricity. b. To avoid government regulation. Proactive action on this issue will prevent governments from stepping into mandate reform with regulations that may not be good for business. c. To be more socially responsible. Many organizations have adopted corporate social responsibility initiatives with a goal of reducing their networks’ carbon footprints. d. To gain competitive advantage. Network infrastructure vendors are striving to gain competitive advantage by reducing the power requirements of their equipment.

Answer: B Difficulty: Hard Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

72. According to a study by Solutions Research Group, 68 percent of Americans may suffer from: a. Eating disorders resulting from being interrupted at meals by texts, emails or phone calls. b. Lack of sleep resulting from a desire to be able to respond to texts, emails or phone calls during normal sleeping hours. c. Disconnect anxiety—feelings of disorientation and nervousness when deprived of Internet or wireless access for a period of time. d. Device envy – feelings of depression or inferiority associated with not having a mobile phone or other device comparable to one’s friends or business associates.

Answer: C Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

73. According to the Association to Advance Collegiate Schools of Business, managers need to have a firm grasp of the ethical issues associated with their discipline. Which of the following is not an ethical issue associated with networks and network use discussed in your textbook? a. The huge potential for abuse by expecting 24/7 response from workers because IT keeps people connected at all times to the network. b. The potential health risks to employees, customers and others from mobile devices. c. The negative impact of network related energy consumption on the natural environment. d. The negative impact of networks and mobile communication on education and employment opportunities.

Answer: D Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

True/False 1. Website users like fast loading pages, but typically don’t become impatient unless they have to wait more than 5-7 seconds for a page to load.

Answer: False Difficulty: Easy Section Ref: Quick Look at Chapter 4 AACSB: Use of Information Technology

2. Internet users tend to become impatient with web pages that take more than 250 milliseconds longer to load than other sites.

Answer: True Difficulty: Easy Section Ref: Quick Look at Chapter 4 AACSB: Use of Information Technology

3. Voice over IP (VoIP) is a technology used to carry voice calls over a network by converting voice (analog signals) to digital signals.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

4. Network capacity is measured in terms of its throughput, or bandwidth Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

5. A broadband network is one with high capacity or bandwidth.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

6. Applications for voice conversations and video streaming typically perform poorly on broadband networks.

Answer: False Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

7. Consulting firm Booz & Co. estimates that within the next decade approximately 1 million sensors will be deployed globally, transmitting data over wireless networks.

Answer: False Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

8. Consulting firm Booz & Co. estimates that within the next decade approximately 1 trillion sensors will be deployed globally, transmitting data over wireless networks.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

9. Communication, mobility and collaboration are all considered basic functions of computer networks.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

10. Search, Strategic Planning and Analysis are all considered basic functions of computer networks.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

11. Internet Protocol (IP) defines the basic methods by which data is sent from one device to another via a private network, cellular network, or public Internet.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

12. The transmission of digital signals over the Internet by the switches and routers is called switching.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

13. The transmission of digital signals over the Internet by the switches and routers is called linking.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

14. Circuit switching involves a dedicated connection between a source and a destination, such as when a call is placed between two landline telephones.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

15. The two basic types of switching (transmitting communications signals) are fixed-line switching (e.g. cable) and mobile switching.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

16. The two basic types of switching (transmitting communications signals) are circuit switching and packet switching.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

17. The type of switching that breaks signals up into small blocks, sends them over the Internet, and then reassembles them at the destination is called IP Streaming Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

18. The type of switching that breaks signals up into small blocks, sends them over the Internet, and then reassembles them at the destination is called packet switching.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 19. In terms of the “building blocks” of a network, routers and switches connect networks by linking computers to the Internet so that users can share a connection.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 20. In terms of the “building blocks” of a network, routers connect networks by linking computers to the Internet so that users can share a connection.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

21. To improve quality of service on a network, managers can create two tiers of traffic using two strategies: Prioritizing traffic and throttling traffic.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

22. To improve quality of service on a network, managers can create two tiers of traffic using two strategies: Redirecting traffic and accelerating traffic.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 23. One strategy for regulating network use is to “prioritize traffic” which means data and apps that are time-delay sensitive, such as voice and video are given priority on the network Answer: True Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 24. One strategy for regulating network use is to “accelerate traffic” which means to apply special technologies that will speed up certain content by pushing it faster through the network.

Answer: False Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 25. One strategy for regulating network use is to “Throttle traffic” which means holding back traffic from non-time sensitive apps so that apps like voice and video run more effectively.

Answer: True Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

26. Bandwidth depends on the network protocol, the rules and standards that govern how devices on a network exchange data and talk to each other.

Answer: True Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

27. Traffic shaping is the practice of managing data transfer to ensure a certain level of performance or QoS. Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

28. Broadband shifting is the practice of managing data transfer to ensure a certain level of performance or QoS. Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

29. Advocates of Net Neutrality argue that providers of VoIP, video or similar bandwidth intensive services should pay more to ISPs to carry their content because they use a disproportionate amount of network resources.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

30. Advocates of Net Neutrality argue that Internet service providers (ISPs) should treat all sources of data equally and not attempt to give priority to content providers who pay for faster transmission or to their own content.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

31. TCP/IP (transmission control protocol/Internet protocol) is the basic communication protocol of the Internet. This protocol is supported by every major network operating system (OS) to ensure that all devices on the Internet can communicate.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

32. Circuit switching is the basic communication protocol of the Internet. This protocol is supported by every major network operating system (OS) to ensure that all devices on the Internet can communicate.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

33. Cable or DSL Internet connections are referred to as fixed line broadband.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

34. Cable or DSL Internet connections are referred to as mobile broadband.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

35. 3G and 4G are types of cellular networks. 4G networks enable faster data transfer rates.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

36. Near-field communications (NFC) is an umbrella term that applies to various location-aware technologies that allow devices to communicate securely with each other over short distances. It is used, for instance, to allow people to make purchases with their smartphones.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

37. Global Position Systems (GPS) is an umbrella term that applies to various location-aware technologies that allow devices to communicate securely with each other over short distances. It is used, for instance, to allow people to make purchases with their smartphones.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

38. Radio-frequency identification (RFID) is a location-aware system that transmits the identity (in the form of a unique serial number) of an object or person using radio waves. It is used to track items in a supply chain or equipment in a production facility.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

39. Geo-location identification (GLID) is a location-aware system that transmits the identity (in the form of a unique serial number) of an object or person using radio waves. It is used to track items in a supply chain or equipment in a production facility.

Answer: False Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

40. At some hotels, guests can use smartphones for check-ins and room keys. In some cities, public transit passengers can pay for fares by waving a smartphone across a terminal as they board a bus. These payments apps make use of near-field communications (NFC) technologies.

Answer: True Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

41. At some hotels, guests can use smartphones for check-ins and room keys. In some cities, public transit passengers can pay for fares by waving a smartphone across a terminal as they board a bus. These payments apps make use of GPS (Global Positioning System) technology.

Answer: False Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

42. ARPAnet (Advanced Research Projects Agency network) was the first real network to run on packet switching technology.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

43. In 1969, the first real network to run on packet switching technology allowed for 1000 hosts.

By the end of 2012, the number of hosts on the Internet was near 1 billion.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

44. WiMax and LTE (Long-Term Evolution, are two different standards used on 4G cellular networks.

Answer: True Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

45. WiMax and LTE (Long-Term Evolution, are two different standards used on near-field communications (NFC) networks.

Answer: False Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

46. In the 21st century global economy, advanced wireless networks are a foundation on which global economic activity takes place. Mobile data traffic is forecasted to grow by 18 times its current size and speed through 2016.

Answer: True Difficulty: Easy Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

47. Mobile networks and infrastructure have the potential to bring down healthcare costs.

Wireless hospitals and remote patient monitoring, for example, are growing trends. Tracking medical equipment and hospital inventory, such as gurneys, are done with RFID tagging at a number of hospitals.

Answer: True Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

48. Mobile networks and infrastructure have the potential to bring down healthcare costs.

Wireless hospitals and remote patient monitoring, for example, are growing trends. Tracking medical equipment and hospital inventory, such as gurneys, are done with fixed-line broadband technology at a number of hospitals.

Answer: False Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

49. According to the Cisco Visual Networking Index (VNI) Mobile Data Traffic Forecast, 20112016, most mobile devices will be smaller in size than they are today.

Answer: False Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

50. According to the Cisco Visual Networking Index (VNI) Mobile Data Traffic Forecast, 20112016, more users will have more powerful mobile devices and use more bandwidth.

Answer: True Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

51. Enterprises are moving away from ad hoc adoption of mobile devices and network infrastructure to a more strategic planning build-out of their mobile capabilities.

Answer: True Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

52. Enterprises are moving away from strategic planning for mobile devices and network infrastructure and are instead rapidly expanding their mobile networks and device deployment on an ad hoc basis to keep up with demand and competitive threats.

Answer: False Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

53. There are three general types of mobile networks: wide area networks (WANs), WiMAX, and local area networks (LANs).

Answer: True Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

54. WANs for mobile computing are known as WWANs (wireless wide area networks).

Answer: True Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

55. WiMAX is the part of the wireless infrastructure that transmits voice, data, and video over high frequency radio signals to businesses, homes, and mobile devices.

Answer: True Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

56. Most residential wireless networks are based on WiMAX technology for connecting computers and printers to the wired LAN. Answer: False Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

57. Standards with labels such as “802.11b”, “802.11a”, “802.11g” and so on are different kinds of Wi-Fi networking standards.

Answer: True Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

58. In most organizations today, when the network goes down, it causes almost complete disruption of productivity or service, including lost sales, financial consequences and inability to process payroll and inventory.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

59. When problems inevitably occur (e.g., a network crash), trained staff are needed to restore the network promptly or to switch to a backup system to minimize disruption during the restoration.

Answer: True Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

60. When problems inevitably occur (e.g., a network crash), modern companies typically have plans for redeploying their workforce to duties or activities that do not require a computer network to function. This allows them time to request bids and proposals from IT firms that can fix the problem for a competitive price.

Answer: False Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

61. In terms of collaboration, a decentralized organization is more responsive to opportunities and problems than a centralized organization where top-level managers, who are typically less involved in day-to-day operations, make decisions.

Answer: True Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Reflective Knowledge

62. Network infrastructure alone does not improve business performance. Rather, it is how network capabilities combine with collaboration technologies to support employees and cross-functional work, connect remote locations, service customers, and coordinate with supply chain partners.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Reflective Knowledge

63. Traditionally, various information services—data, documents, voice, and video—have functioned independently of each other. Multiple networks were needed because of the lack of interoperability (or connectivity) between devices.

Answer: True Difficulty: Hard Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

64. According to your text, developing software for wireless devices had been challenging because the market is fragmented into devices with different CPUs, operating systems, storage media, and mobile platform environments.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

65. According to your text, developing software for wireless devices had been challenging because until recently, the market was not large enough to justify large scale investment in the development of software apps.

Answer: False Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

66. Different CPUs, operating systems, storage media, and mobile platform environments characterize the mobile device marketplace. This creates significant challenges for software developers.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

67. An intranet is a widely used type of network based on Internet technology (e.g. browsers, Internet protocols, etc.) but focused on serving the internal informational needs of a company.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

68. An intranet is a widely used type of network based on Internet technology (e.g. browsers, Internet protocols, etc.) but focused on communicating with customers and/or supply chain partners.

Answer: False Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

69. Dr. Phylcia Lesh is a medical researcher at a large pharmaceutical firm, DrugCo. At the start of each workday, she opens a Web browser on her office computer and accesses the firm’s Web site. From there, she logs into the company’s “MedCentral” portal with her username and password. From the portal she can access her email, share documents with colleagues, and access shared data files related to projects she is collaborating on with other workers.

Most likely, Dr. Lesh is using an Intranet.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

70. A large pharmaceutical firm called DrugCo, uses a network that allows approved suppliers to check its inventory of chemicals and supplies so that they can predict when DrugCo will need future shipments to replenish their inventory. Most likely, this network is an example of an extranet.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology 71. Labatt Brewing Company uses a network called “The Pub” to provide employees with a way to share documents, communicate, provide a forum for idea generation, and search for important data files, documents and other content. Labatt’s network is an example of an extranet.

Answer: False Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

72. When security issues are a special concern, companies want to take extra steps to make sure that transmissions can’t be intercepted or compromised. In these situations they will use a network that encrypts the packets before they are transferred over the network. This solution is called a Virtual Private Network (VPN) Answer: True Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

73. The volume of data stored in many organizations reached the point where it actually interferes with productivity rather than contributes to it. One solution is enterprise search.

Answer: True Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

74. The volume of data stored in many organizations reached the point where it actually interferes with productivity rather than contributes to it. One solution is big data search.

Answer: False Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

75. In order to make searching for organizational documents, data files and other content possible, the organizations starts with content indexing which is conducted by software that crawls through directories and websites to extract content from databases and other repositories.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

76. In order to make searching for organizational documents, data files and other content possible, the organizations starts with directory analysis which is conducted by software that crawls through directories and websites to analyze big data in databases and data warehouses.

Answer: False Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

77. When Julie Brown enters keywords into a search tool window and attempts to find certain documents, data files or other content on her company’s network, she is conducting a type of query.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

78. Virtual private network s(VPN) provide additional security over other types of networks by encrypting data packets prior to transmission.

Answer: True Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

79. Virtual private network s(VPN) provide additional security over other types of networks by encrypting data packets prior to transmission by requiring users to pass a retinal scan, finger print scan or some other high level security test before they can access the network.

Answer: False Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

80. According to your text, web meetings are a form of collaborative activity that tends to be used more frequently in high performing companies than in low performing companies.

Answer: True Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

81. According to your text, email and document sharing are types of collaborative activity that tend to be used more frequently in high performing companies than in low performing companies.

Answer: False Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

82. E-mail, videoconferencing, fax, and texts—and newer media such as blogs, podcasts, RSS, wikis, VoIP, web meetings, are all part of a growing trend in the use of collaboration tools.

Answer: True Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

83. E-mail, videoconferencing, fax, and texts—and newer media such as blogs, podcasts, RSS, wikis, VoIP, web meetings, are all part of a growing trend in the use of social media tools.

Answer: False Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

84. Wal-Mart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P&G on a daily basis from every Wal-Mart store, and P&G uses the information to manage the inventory replenishment for Wal-Mart. This is an example of virtual collaboration between companies.

Answer: True Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

85. Wal-Mart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P&G on a daily basis from every Wal-Mart store, and P&G uses the information to manage the inventory replenishment for Wal-Mart. This is an example of enterprise use of intranets.

Answer: False Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology 86. Unilever’s web-based database, the Transportation Business Center (TBC), provides its 30 contract carriers with site specification requirements about pick-up and delivery locations.

The TBC contains information such as contact names and phone numbers, operating hours, the number of dock doors at a location, the height of the dock doors, how to make an appointment to deliver or pick up shipments, pallet configuration, and other special requirements. Unilever’s practice of providing this kind of information over a network with its carriers is an example of how extranets are used by companies to collaborate with each other.

Answer: True Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

87. The success or failure of group work depends on a set of factors and processes known as group dynamics.

Answer: True Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

88. The success or failure of group work depends on a set of factors and processes known as team work.

Answer: False Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

89. Groups that are working together in modern organizations can face a number of challenges.

Three factors discussed in your textbook include group members working in different locations, group members may work for different organizations, and needed information, data or knowledge may come from different sources.

Answer: True Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

90. Groups that are working together in modern organizations can face a number of challenges.

Two factors that were discussed in your text include 1) groups may be composed of people from different ranks in the organization (from CEO down to the lowest paid member of the company) and 2) groups may not share the same technology skills.

Answer: False Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

91. Cloud based brainstorming apps such as Evernote and iMindmap Online can help groups with idea generation when members of the group are geographically dispersed or have conflicting schedules that prevent them from meeting face-to-face.

Answer: True Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

92. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. One concern highlighted in your textbook is the amount of electricity consumed by all of the equipment and devices related to computer networks.

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

93. Computer networks (wired and wireless) tend to be clean technologies with little negative impact on the environment.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

94. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. One concern highlighted in your textbook is the increase in distracted drivers (e.g. people who text while driving).

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

95. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. One concern highlighted in your textbook is potential health risks associated with frequent mobile phone use.

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

96. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. One concern highlighted in your textbook is the growing use of computer networks by politicians who use social media for inappropriate activities.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

97. The dramatic growth in the number of power data centers, cell towers, base stations, recharge mobiles, and so on is damaging the environment because of increased energy consumption and related pollution.

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

98. The dramatic growth in the number of power data centers, cell towers, base stations, recharge mobiles, and so on is damaging the environment because Radio Frequency Interference (RFI) is overcrowding specific areas of the electromagnetic spectrum.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities 99. The dramatic growth in the number of power data centers, cell towers, base stations, recharge mobiles, and so on is damaging the environment because many of these new technologies have been located in fragile or important natural environments, putting the ecosystem at risk.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

100. In terms of environmental impact, global carbon emissions from communications technologies are expected to double by 2020.

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

101. Because computers and cell phones are non-polluting, global carbon emissions from communications technologies are expected remain relatively stable between now and 2020.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities 102. Alcatel-Lucent’s High Leverage Network (HLN) increases bandwidth and network capabilities while reducing the negative impact on the environment. This works because the HLN delivers increased bandwidth using fewer devices and energy.

Answer: True Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

103. According to a study by Solutions Research Group, 68 percent of Americans may suffer from “Device Envy” – feelings of depression or inferiority associated with not having a mobile phone or other device comparable to one’s friends or business associates.

Answer: False Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

104. According to a study by Solutions Research Group, 68 percent of Americans may suffer from “Disconnect Anxiety”—feelings of disorientation and nervousness when deprived of Internet or wireless access for a period of time.

Answer: True Difficulty: Easy Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

Short Answer 1. ___________________ is a technology used to carry voice calls over a network by converting voice (analog signals) to digital signals.

Answer: Voice over IP (VoIP) Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

2. Network ________________ is measured in terms of its throughput, or bandwidth Answer: Capacity Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

3. A _________________ network is one with high capacity or bandwidth.

Answer: Broadband Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

4. Consulting firm Booz & Co. estimates that within the next decade approximately __________ sensors will be deployed globally, transmitting data over wireless networks.

Answer: 1 trillion Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

5. _________________ defines the basic methods by which data is sent from one device to another via a private network, cellular network, or public Internet.

Answer: Internet Protocol (IP) Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

6. The transmission of digital signals over the Internet by the switches and routers is called _________________.

Answer: Switching Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

7. __________________ involves a dedicated connection between a source and a destination, such as when a call is placed between two landline telephones.

Answer: Circuit switching Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

8. The two basic types of switching (transmitting communications signals) are circuit switching and _____________________.

Answer: Packet switching Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

9. The type of switching that breaks signals up into small blocks, sends them over the Internet, and then reassembles them at the destination is called _________________.

Answer: Packet switching Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 10. In terms of the “building blocks” of a network, ______________ connect networks by linking computers to the Internet so that users can share a connection.

Answer: Routers Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

11. To improve quality of service on a network, managers can create two tiers of traffic using two strategies: Prioritizing traffic and ________________.

Answer: Throttling traffic Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

12. One strategy for regulating network use is to ______________ which means data and apps that are time-delay sensitive, such as voice and video are given priority on the network Answer: Prioritize traffic Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

13. One strategy for regulating network use is to _____________ which means holding back traffic from non-time sensitive apps so that apps like voice and video run more effectively.

Answer: Throttle traffic Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

14. Bandwidth depends on the network _____________, the rules and standards that govern how devices on a network exchange data and talk to each other.

Answer: Protocol Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

15. ________________ is the practice of managing data transfer to ensure a certain level of performance or QoS. Answer: Traffic shaping Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

16. Advocates of _________________ argue that Internet service providers (ISPs) should treat all sources of data equally and not attempt to give priority to content providers who pay for faster transmission or to their own content.

Answer: Net Neutrality Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

17. _______________________ is the basic communication protocol of the Internet. This protocol is supported by every major network operating system (OS) to ensure that all devices on the Internet can communicate.

Answer: TCP/IP (transmission control protocol/Internet protocol) Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

18. Cable or DSL Internet connections are referred to as ______________ broadband.

Answer: Fixed line Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

19. 3G and 4G are types of ______________ networks. 4G networks enable faster data transfer rates.

Answer: Cellular Difficulty: Easy Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

20. ________________________ is an umbrella term that applies to various location-aware technologies that allow devices to communicate securely with each other over short distances. It is used, for instance, to allow people to make purchases with their smartphones.

Answer: Near-field communications (NFC) Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

21. ___________________________ is a location-aware system that transmits the identity (in the form of a unique serial number) of an object or person using radio waves. It is used to track items in a supply chain or equipment in a production facility.

Answer: Radio-frequency identification (RFID) Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

22. At some hotels, guests can use smartphones for check-ins and room keys. In some cities, public transit passengers can pay for fares by waving a smartphone across a terminal as they board a bus. These payments apps make use of ___________________ technologies.

Answer: near-field communications (NFC) Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

23. ARPAnet (Advanced Research Projects Agency network) was the first real network to run on ___________________ technology.

Answer: packet switching Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

24. In 1969, the first real network to run on packet switching technology allowed for 1000 hosts.

By the end of 2012, the number of hosts on the Internet was near _______________.

Answer: 1 billion Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

25. ______________ and LTE (Long-Term Evolution, are two different standards used on 4G cellular networks.

Answer: WiMax Difficulty: Medium Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

26. In the 21st century global economy, advanced wireless networks are a foundation on which global economic activity takes place. Mobile data traffic is forecasted to grow by ___times its current size and speed through 2016.

Answer: 18 Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

27. Mobile networks and infrastructure have the potential to bring down healthcare costs.

Wireless hospitals and remote patient monitoring, for example, are growing trends. Tracking medical equipment and hospital inventory, such as gurneys, are done with ___________ at a number of hospitals.

Answer: RFID tagging Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

28. Enterprises are moving away from ad hoc adoption of mobile devices and network infrastructure to a more _______________ build-out of their mobile capabilities.

Answer: Strategic planning Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

29. There are three general types of mobile networks: wide area networks (WANs), ____________, and local area networks (LANs).

Answer: WiMAX Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

30. WANs for mobile computing are known as _____________________________.

Answer: WWANs (wireless wide area networks).

Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

31. _____________________ is the part of the wireless infrastructure that transmits voice, data, and video over high frequency radio signals to businesses, homes, and mobile devices.

Answer: WiMAX Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

32. Most residential wireless networks use ______________ technology for connecting computers and printers to the wired LAN. Answer: Wireless LAN or WLAN Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

33. Standards with labels such as “802.11b”, “802.11a”, “802.11g” and so on are different kinds of _______________________ standards.

Answer: Wi-Fi networking Difficulty: Hard Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB: Use of Information Technology

34. In most organizations today, when the ____________ goes down, it causes almost complete disruption of productivity or service, including lost sales, financial consequences and inability to process payroll and inventory.

Answer: Network Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

35. When problems inevitably occur (e.g., a network crash), trained staff are needed to restore the network promptly or to switch to a ______________ to minimize disruption during the restoration.

Answer: Backup system Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

36. In terms of collaboration, a(n) _______________ organization is more responsive to opportunities and problems than a centralized organization where top-level managers, who are typically less involved in day-to-day operations, make decisions.

Answer: Decentralized Difficulty: Easy Section Ref: 4.3 Network Management and Search AACSB: Reflective Knowledge

37. Network infrastructure alone does not improve business performance. Rather, it is how network capabilities combine with ____________________to support employees and crossfunctional work, connect remote locations, service customers, and coordinate with supply chain partners.

Answer: Collaboration technologies Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Reflective Knowledge

38. Traditionally, various information services—data, documents, voice, and video—have functioned independently of each other. Multiple networks were needed because of the lack of ________________________ (or connectivity) between devices.

Answer: Interoperability Difficulty: Hard Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

39. According to your text, developing ____________________ for wireless devices had been challenging because the market is fragmented into devices with different CPUs, operating systems, storage media, and mobile platform environments.

Answer: Software Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology 40. A(n) _______________ is a widely used type of network based on Internet technology (e.g. browsers, Internet protocols, etc.) but focused on serving the internal informational needs of a company.

Answer: Intranet Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

41. Dr. Phylcia Lesh is a medical researcher at a large pharmaceutical firm, DrugCo. At the start of each workday, she opens a Web browser on her office computer and accesses the firm’s Web site. From there, she logs into the company’s “MedCentral” portal with her username and password. From the portal she can access her email, share documents with colleagues, and access shared data files related to projects she is collaborating on with other workers.

Most likely, Dr. Lesh is using a(n) ________________.

Answer: Intranet Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

42. A large pharmaceutical firm called DrugCo, uses a network that allows approved suppliers to check its inventory of chemicals and supplies so that they can predict when DrugCo will need future shipments to replenish their inventory. Most likely, this network is an example of a(n) ________________.

Answer: Extranet Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology 43. Labatt Brewing Company uses a network called “The Pub” to provide employees with a way to share documents, communicate, provide a forum for idea generation, and search for important data files, documents and other content. Labatt’s network is an example of a(n) _________________.

Answer: Intranet Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

44. When security issues are a special concern, companies want to take extra steps to make sure that transmissions can’t be intercepted or compromised. In these situations they will use a network that encrypts the packets before they are transferred over the network. This solution is called a(n) _____________________.

Answer: Virtual Private Network (VPN) Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

45. The volume of data stored in many organizations reached the point where it actually interferes with productivity rather than contributes to it. One solution is ___________ search.

Answer: Enterprise Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

46. In order to make searching for organizational documents, data files and other content possible, the organizations starts with _________________ which is conducted by software that crawls through directories and websites to extract content from databases and other repositories.

Answer: Content indexing Difficulty: Hard Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

47. When Julie Brown enters keywords into a search tool window and attempts to find certain documents, data files or other content on her company’s network, she is conducting a type of ____________________.

Answer: Query or Enterprise search Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

48. Virtual private network s(VPN) provide additional security over other types of networks by encrypting ___________________ prior to transmission.

Answer: Data packets Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology

49. According to your text, _______________ are a form of collaborative activity that tends to be used more frequently in high performing companies than in low performing companies.

Answer: Web meetings Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

50. E-mail, videoconferencing, fax, and texts—and newer media such as blogs, podcasts, RSS, wikis, VoIP, web meetings, are all part of a growing trend in the use of ______________ tools.

Answer: Collaboration Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology 51. Unilever’s web-based database, the Transportation Business Center (TBC), provides its 30 contract carriers with site specification requirements about pick-up and delivery locations.

The TBC contains information such as contact names and phone numbers, operating hours, the number of dock doors at a location, the height of the dock doors, how to make an appointment to deliver or pick up shipments, pallet configuration, and other special requirements. Unilever’s practice of providing this kind of information over a network with its carriers is an example of how _______________ are used by companies to collaborate with each other.

Answer: Extranets Difficulty: Easy Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

52. The success or failure of group work depends on a set of factors and processes known as _____________________.

Answer: Group dynamics Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Reflective Thinking

53. Cloud based ________________ apps such as Evernote and iMindmap Online can help groups with idea generation when members of the group are geographically dispersed or have conflicting schedules that prevent them from meeting face-to-face.

Answer: Brainstorming Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology

54. While the growth of computer networks and mobile computing has resulted in many benefits to both individual users and organizations, it has also generated a number of negative consequences. One concern highlighted in your textbook is the amount of _____________ consumed by all of the equipment and devices related to computer networks.

Answer: Electricity or Energy Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

55. In terms of environmental impact, global _______________ from communications technologies are expected to double by 2020.

Answer: Carbon emissions Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities 56. Alcatel-Lucent’s High Leverage Network (HLN) increases bandwidth and network capabilities while reducing the negative impact on the environment. This works because the HLN delivers increased bandwidth using fewer _____________ and less ____________.

Answer: Devices / Energy Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

Essay Questions 1. Your textbook described 5 basic business functions supported by networks. List and briefly describe each.

Answer: Communication: Being able to talk, text, tweet, fax, send messages, etc.

Mobility: Having secure, trusted, and reliable access from anywhere at satisfactory download (DL) and upload (UL) speeds.

Collaboration: Supporting teamwork activities that are synchronous and asynchronous; brain storming; and knowledge and document sharing within the organization and with outside business partners and interests.

Relationships: Managing interaction with customers, supply chain partners, shareholders, employees, regulatory agencies, etc.

Search: Locating data, contracts, documents, spreadsheets, diagrams, messages, and other knowledge within an organization easily and efficiently.

Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology

2. Briefly explain traffic shaping and the two primary strategies used by network managers.

How is traffic shaping related to the issue of Net Neutrality?

Answer: Traffic shaping is an attempt by network managers to control the quality of service network users receive. Quality of service is impacted by the amount of traffic being transmitted on the Internet.

Bandwidth intensive services, like voice and video, can slow the network down if they take up too much capacity. There are two basic approaches to traffic shaping.

Prioritize traffic: Data and apps that are time-delay sensitive or latency-sensitive apps, such as voice and video are given priority on the network.

Throttle traffic: In order to give latency-sensitive apps priority, other types of traffic need to be held back (throttled).

Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 3. How is traffic shaping related to the issue of Net Neutrality?

The issue of traffic shaping has become an issue because of concerns over Net Neutrality.

Advocates of Net Neutrality feel that ISPs will use their traffic shaping abilities for economic

gain rather than simply to control the quality of service on the Internet. There is concern that they will create a two-tier system – one for content providers willing to pay for bandwidth (or their own content) and another, slower tier for those who do not. There is also concern that ISPs will restrict content (e.g. political, controversial, etc.) that they do not approve of.

Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 4. Briefly describe 2 ways in which near-field communication (NFC) technology is being used to create new consumer applications.

Answer: Students may respond with any of the following examples listed in the text: NFC technology allows devices to communicate securely with each other over short distances.

Location-aware NFC technology can be used to make purchases in restaurants, resorts, hotels, theme parks and theaters, at gas stations, and on buses and trains. Here are examples.

ASSA ABLOY, a Swedish company, is testing NFC smartphones for remote hotel check-ins and as wireless hotel room keys at Clarion Hotels.

A major resort chain is evaluating NFC’s ability to create instant ski lift passes for guests.

Passengers on public transportation systems can pay fares by waving an NFC smartphone as they board.

Banks, credit card issuers, and other financial organizations can benefit from NFC smartphones, as password-protected smartphones send data over encrypted wireless networks and can be much more secure than conventional credit and debit cards.

Difficulty: Hard Section Ref: 4.1 Business IT Networks and Components AACSB: Use of Information Technology 5. List and explain the four factors to consider when evaluating a mobile network.

Answer: (See Tech Note 4.4) When evaluating mobile network solutions, the factors to consider are: 1. Simple: Easy to deploy, manage and use.

2. Connected: Always makes the best connection possible.

3. Intelligent: Works behind the scenes, easily integrating with other systems.

4. Trusted: Enables secure and reliable communications.

Difficulty: Medium Section Ref: 4.2 Wireless Network Applications and Mobile Infrastructure AACSB:

6. Explain how network failure can impact an organization and identify steps companies should be prepared to take if failure occurs.

Answer: With few exceptions, when the network goes down or access is blocked, so does the ability to operate or function normally. Imagine a network meltdown in which you could not access text messages, apps, the Internet, software, and data files. At most companies, employees would have nothing to do—or an extremely horrible time trying to do work—without network connectivity.

Obvious damages of network downtime include lost sales and productivity, financial consequences from not being able to send and receive payments, and inability to process payroll and inventory.

When problems inevitably occur (e.g., a network crash or car crash), trained staff are needed to restore the network promptly or to switch to a backup system to minimize disruption during the restoration. Organizations need to plan for proper maintenance and management of the network, including upgrades, to minimize the chances of disruption.

Difficulty: Medium Section Ref: 4.3 Network Management and Search AACSB: Use of Information Technology 7. Give an example of how companies can use a network to collaborate with other companies (e.g. suppliers, partners, etc.)

Answer: Students may provide answers that describe practices listed in examples given in the textbook: Information Sharing Between Retailers and Their Suppliers: P&G and Wal-Mart. WalMart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P&G on a daily basis from every Wal-Mart store, and P&G uses the information to manage the inventory replenishment for Wal-Mart.

Retailer-Supplier Collaboration: Asda Corporation. Supermarket chain Asda (asda.com) has begun rolling out web-based electronic data interchange (EDI) technology to 650 suppliers. This helps suppliers monitor inventory as Asda and results in more efficient product delivery and inventory management.

Lower Transportation and Inventory Costs and Reduced Stockouts: Unilever. Unilever’s web-based database, the Transportation Business Center (TBC), provides contract carriers with site specification requirements when they pick up a shipment at a manufacturing or distribution center or when they deliver goods to retailers. All mission-critical information that Unilever’s carriers need to make pickups, shipments, and deliveries is now available electronically 24/7.

Reduction of Product Development Time: Caterpillar, Inc. In the traditional mode of operation, cycle time along the supply chain was long because the process involved paperdocument transfers among managers, salespeople, and technical staff. To solve the problem, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through an extranet-based global collaboration system. By means of the collaboration system, a request for a customized tractor component, for

example, can be transmitted from a customer to a Caterpillar dealer and on to designers and suppliers, all in a very short time.

Difficulty: Medium Section Ref: 4.4 Collaboration and Communication Technologies AACSB: Use of Information Technology 8. Many people think computers and cell phones are environmentally “clean” products.

Explain how the increasing expansion of computer networks negatively impacts our environment.

The use of androids, iPhones and other mobiles for everything from social networking to cloudbased apps has raised data consumption dramatically—and with it energy consumption. The surge in energy used to power data centers, cell towers, base stations, recharge mobiles, and so on is damaging the environment. Communications technology accounts for approximately 2 percent of global carbon emissions, a figure that is predicted to double by 2020 as end-user demand for high-bandwidth services with enhanced quality of experience explodes worldwide.

Difficulty: Medium Section Ref: 4.5 Sustainability and Ethical Issues AACSB: Ethical understanding and reasoning abilities

Chapter 5: CyberSecurity, Compliance, and Business Continuity Test Bank Multiple Choice 1. Which of the following most accurately describes the steps that organizations should take to secure confidential data? a. There are no laws that specifically address unauthorized access of confidential data. b. Current laws prohibit unauthorized access of confidential data, but few laws require organizations to take steps to protect data. c. Only a few specific industries (e.g. banking, health care) are affected by laws requiring organizations to take steps to protect data. d. International, federal, and state laws and industry regulations mandate that organizations invest in cybersecurity defenses, audits, and internal controls to secure confidential data.

Answer: D Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Dynamics of the global economy

2. People wanting to use their mobile devices at work is part of a trend called _____________. a. b. c. d.

Personal devices at work (PDAW) Bring your own device (BYOD) Consumer /Enterprise Equipment (CEE) Non-Approved Devices (NAD)

Answer: B Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

3. Which of the following represents the chief concern about employees using their own smartphones for work purposes? a. Employees will spend too much time playing games or using entertainment and recreation apps, thus reducing productivity. b. Managers will be unable to monitor phone calls or police the volume of personal calls made during work hours. c. Many personal smartphones do not have anti-malware or data encryption apps, creating a security problem with respect to any confidential business data stored on the device. d. Consumer quality equipment is more likely to break or malfunction than enterprise quality devices.

Answer: C Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

4. Which of the following factors was not listed in your text as a challenge related to managing employee owned mobile devices used for work related purposes? a. Increase costs of managing new and existing mobile devices b. Security threats – employee owned devices may not be properly protected with strong passwords or encryption software. c. Compliance – employee owned devices may not meet regulatory standards for how data must be collected, stored, or made available in the event of audit or legal action. d. Impact on productivity – managers must trade-off gains related to employees having 24/7 access to work related data against losses related to employees using non-work related apps (e.g. personal social media, texting, personal phone calls) while on the job.

Answer: D Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

5. Which of the following is not a true statement regarding the use of employee owned mobile devices in the workplace? a. With the number of mobile apps hitting 1.3 million–compared to only 75,000 apps for PCs–-managing employee-owned devices is more complex and expensive. b. Companies are increasingly prohibiting employees from using their personal mobile devices for work related purposes because of security and compliance challenges. c. Companies need to insure and be able to prove that enterprise data stored on personal devices are in compliance, e.g., encrypted, password protected, unaltered, etc. d. Controls placed on employee-owned devices can infringe on personal privacy; organizations could learn what sites were visited or movies were watched, what was done on sick days, and all social media activities during work hours and offhours.

Answer: B Difficulty: Hard Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology 6. ______________________ is/are defined as “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.” a. b. c. d.

The National Security architecture Strategically connected networks Critical infrastructure Secure network architecture

Answer: C Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

7. ________________ tactics are used by hackers and corporate spies to trick people into revealing login information or access codes. a. b. c. d.

Social engineering URL fabricating Security crashing Password crashing

Answer: A Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology 8. A stealth network attack in which an unauthorized person gains access to a network and remains undetected for a long time is referred to as a(n) ___________________________. a. b. c. d.

Background Intruder attack Advanced Persistent Threat (APT) attack Silent Sabotage attack Unauthorized Security Breach (USB) attack

Answer: B Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

9. One way that hackers and corporate spies trick people into revealing login information or access codes is __________________; using a story that convinces someone that it is okay to reveal secret information. a. b. c. d.

Pretexting Identity Fraud Baiting Thrashing

Answer: A Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

10. One way that hackers and corporate spies trick people into revealing login information or access codes is __________________; use of an incentive to get a user to perform an insecure action. A common application of this practice involves offering a free app or video for clicking a link in a text message and voting for best video game. Clicking the link downloads malware. a. b. c. d.

Pretexting Identity Fraud Baiting Thrashing

Answer: C Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

11. For many organizations, ____________ technologies have worsened their exposure to security risks because they cannot enforce or verify their ____________ providers’ cybersecurity policies. a. b. c. d.

Database Cloud Anti-virus Local Area Network (LAN)

Answer: B Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

12. Which of the following was not cited in your text as a reason why cyberattacks are getting worse? a. b. c. d.

Because networks are used by hacktivists looking for media attention Because of hackers stealing credentials such as banking PINS and passwords Because of industrial spies looking for trade secrets Because of decreased awareness about the problem on the part of top management and IT professionals in organizations.

Answer: D Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

13. One source of cybersecurity threats today are ____________, hacker-activists (or hacking for a cause) who breach networks in an attempt to gain media attention. a. b. c. d.

Hacktivists Political criminals Industrial spies Attention seekers

Answer: A Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

14. A(n) _______________________ is a special kind of hacker who attempts to breach secure networks looking for trade secrets or proprietary information. a. b. c. d.

Hacktivist Political criminal Industrial spy Attention seeker

Answer: C Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

15. The Data Breach Investigations Report revealed that 97 percent of data breaches evaluated in the study _____________________________________. a. Resulted from sophisticated software attacks that effectively defeated the IT security defenses in place at the time of the attack. b. Were avoidable and did not require hackers to possess special skills, resources, or customization. c. Resulted from hackers using high tech hardware to breach the IT security defenses in place at the time of the attack. d. Resulted from a combination of sophisticated hacking software and hardware tools designed to defeat IT security defenses.

Answer: B Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

16. Organizations in the ________________________ industries are more heavily regulated than most when it comes to being required take special measures to protect the business and data. a. b. c. d.

Banking and finance, entertainment and technology Technology, banking and finance, and education Energy utility, health care, and banking and finance Healthcare, technology and defense

Answer: C Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

17. ____________________is a type of attack where a web site or network is bombarded with traffic to make them crash. a. b. c. d.

Advanced Persistent Threat (APT) Malware intrusion Denial of service (DoS) System Overload Attack (SOA)

Answer: C Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

18. LulzSec and Anonymous are examples of hacker groups that have claimed responsibility for high profile attacks designed to make a political statement, embarrass an organization or government, or to gain publicity. According to your text, organizations like these are considered _______________. a. b. c. d.

Hacktivists Political criminals Industrial spies Information Systems Terrorists

Answer: A Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

19. Most data breaches go unreported, according to cybersecurity experts, because corporate victims fear that disclosure would ______________________. a. Result in the firing of the top IT management or top officials in the organization. b. Damage their stock price, or because they never knew they were hacked in the first place. c. Encourage other hackers to target the organization. d. Require them to spend more money on increasing security in the future.

Answer: B Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

20. According to your text, the preferred method of hackers who wish to steal trade secrets and other confidential information from business organizations is _______________________. a. To bribe employees to get access codes and passwords. b. To bombard websites or networks with so much traffic that they “crash”, exposing sensitive data. c. To break into employees’ mobile devices and leapfrog into employers’ networks—stealing secrets without a trace. d. Use a combination of sophisticated hardware tools designed to defeat IT security defenses.

Answer: C Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

21. U.S. cybersecurity experts and government officials are increasingly concerned about breaches from ______________________ into corporate networks, either through mobile devices or by other means. a. b. c. d.

Domestic terrorists Amateur hackers Organized crime syndicates based in the United States Other countries

Answer: D Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

22. Some government and corporate officials concerned about security threats from abroad do not bring their own cell phone or laptop when traveling overseas. Instead, they bring loaner devices and follow a strict regimen of security procedures including not connecting to their US network while out of the country. These procedures are referred to as ____________________. a. b. c. d.

Top Secret Security Procedures Do-Not-Carry-Rules Foreign Threat Prevention Procedures (FTPP) Strict Security Standards (SSS)

Answer: B Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

23. Viruses, worms, Trojan horses, spyware, and any other type of disruptive, destructive, or unwanted programs are examples of ___________________. a. b. c. d.

Spam Adware Malware Spyware

Answer: C Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

24. In Cybersecurity terminology, a threat is defined as: a. A weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset b. Something or someone that may result in harm to an asset c. Estimated cost, loss, or damage that can result from an exploited vulnerability d. Tool or technique that takes advantage of a vulnerability Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

25. In Cybersecurity terminology, a vulnerability is defined as: a. A weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset b. Something or someone that may result in harm to an asset c. Estimated cost, loss, or damage that can result from a cybersecurity breach d. Tool or technique that threatens the confidentiality, integrity, or availability (CIA) of an asset Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

26. In Cybersecurity terminology, a risk is defined as: a. A weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset b. The estimated cost, loss, or damage that can result from an exploited vulnerability c. A tool or technique that takes advantage of a vulnerability d. The probability of a threat exploiting a vulnerability Answer: D Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

27. In Cybersecurity terminology, an exploit is defined as: a. A weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset b. The estimated cost, loss, or damage that can result from an exploited vulnerability c. A tool or technique that takes advantage of a vulnerability d. The probability of a threat exploiting a vulnerability Answer: C Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

28. Chris Morrisey is a network manager for a large company. She receives daily updates about various worms, viruses and other malicious software found on the Internet including an assessment of how dangerous each of these are so that she can figure out how best to protect her organization’s network. The information in her report is about __________________. a. b. c. d.

Threats and risks Vulnerabilities Exposure Network Integrity

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

29. Chris Morrisey is a network manager for a large company. She receives daily updates about various worms, viruses and other malicious software found on the Internet and then assesses how to best protect her organization’s network from possible attack. In cybersecurity terminology, she is involved in ________________________. a. b. c. d.

Identifying exposure Risk management An audit Encryption

Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

30. The three key principles of cybersecurity are: a. b. c. d.

Data protection, equipment protection, reputation protection Confidentiality, integrity, availability Anticipate, defend, counter-attack Identify, assess risk, take action

Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

31. When sending sensitive email, James uses a program that transforms data into scrambled code to protect it from being understood by unauthorized users. James is using ______________ to protect his email communications. a. b. c. d.

Authentication Coding Encryption Text Mashing

Answer: C Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

32. Access to top secret or highly secure networks associated with Homeland Security or national defense often use authentication methods based on a biological feature, such as a fingerprint or retina to identify a person. These methods are called ____________________. a. b. c. d.

Advanced security methods Physical security Biometrics Unique Identification methods

Answer: C Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

33. Most organizations use a software or hardware device that controls access to their private network from the Internet by analyzing data packets entering or exiting it. These devices are called ________________. a. b. c. d.

Secure channels Botnets Virus Blockers Firewalls

Answer: D Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

34. The ability of an IS to continue to operate when a failure occurs, but usually for a limited time or at a reduced level is referred to as _______________. a. b. c. d.

Fault tolerance Minimal Operating Level (MOL) Stand-by Mode System Fail Mode

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

35. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is _________________, or the avoidance of unauthorized disclosure of information or data. a. b. c. d.

Integrity Confidentiality Availability Reliability

Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

36. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is _________________, or the property that data or files have not been altered in an unauthorized way. a. b. c. d.

Integrity Confidentiality Availability Reliability

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

37. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is _________________, or the property that data is accessible and modifiable when needed by those authorized to do so. a. b. c. d.

Integrity Confidentiality Availability Reliability

Answer: C Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

38. In cybersecurity terms, the function of a password together with a username is to __________ a user’s identity to verify that the person has the right to access a computer or network. a. b. c. d.

Record Authenticate Substantiate Validate

Answer: B Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

39. __________________ contain a combination of upper- and lower-case letters, numbers, and punctuation marks, and at least eight characters long although ten characters is better. a. b. c. d.

Secret codes Digital keys Strong passwords Unbreakable passcodes

Answer: C Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

40. Intrusion Detection Systems (IDS) are designed to monitor network traffic and identify threats that may have breached the networks initial defenses. These include all of the following except: a. An attacker who is using the identity or credentials of a legitimate user to gain access to an IS, device, or network b. A legitimate user who performs actions he is not authorized to do c. A user who tries to disguise or cover up his actions by deleting audit files or system logs. d. Employees who use computing or network resources inefficiently.

Answer: D Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

41. Intrusion Detection Systems (IDS) are designed to detect and protect a network primarily from _____________ threats. a. b. c. d.

Social media Internal Cloud based Foreign

Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

42. While security threats from e-mail viruses and malware have been declining for years as email security has improved, threats from __________________ have increased considerably in recent years. a. b. c. d.

Software errors Malicious employees Social networks and cloud computing Vendor sabotage

Answer: C Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

43. Facebook, YouTube, Twitter, LinkedIn, and other social networks are making IT security dangers worse. Why? a. Users invite in and build relationships with others. Cybercriminals hack into these trusted relationships using stolen log-ins. b. E-mail viruses and malware have been increasing for years even though e-mail security has improved. c. Communication has shifted from social networks to smartphones. d. Web filtering, user education, and strict policies cannot help prevent IT security dangers on Facebook and other social networks.

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 44. __________ is the elapsed time between when vulnerability is discovered and when it’s exploited and has shrunk from months to __________. a. b. c. d.

Time-to-exploitation; weeks Time-to-exploitation; minutes Denial of service; days Denial of service; seconds

Answer: B Difficulty: Hard Section Ref: 5.1 Protecting Data and Business Operations AACSB: Use of Information Technology

45. When new vulnerabilities are found in operating systems, applications, or wired and wireless networks, vendors of those products release __________ or __________ to fix the vulnerabilities. a. b. c. d.

Patches; service packs Patches; downloads Firewalls; spyware Service packs; firewalls

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

46. Which of the following is not a characteristic of money laundering and terrorist financing? a. Transnational organized crime groups use money laundering to fund their operations, which creates international and national security threats. b. Cybercrime is safer and easier than selling drugs, dealing in black market diamonds, or robbing banks. c. Funds used to finance terrorist operations are easy to track, which provides evidence to identify and locate leaders of terrorist organizations and cells. d. Online gambling offers easy fronts for international money-laundering operations.

Answer: C Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Reflective thinking skills

47. Most information security incidents will occur because of _______________________. a. b. c. d.

Increases in hacker skills and capabilities Poorly designed network protection software Increasing sophistication of computer viruses and worms Users who do not follow secure computing practices and procedures

Answer: D Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

48. Samuel received an email that looked like it came from his bank. The email asked him to click on a link that opened an official looking Webpage that asked him to enter information about his account. But when he looked at the URL address, he noticed it was a strange address he did not recognize. As a result, he closed his browser and deleted the email rather than enter anything on the fraudulent page. Most likely, someone was attempting to steal Samuel’s information using a technique called __________________. a. b. c. d.

Malware Phishing Impostering Click hijacking

Answer: B Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

49. In the United States, the Sarbanes–Oxley Act (SOX), Gramm-Leach-Bliley Act (GLB), Federal Information Security Management Act (FISMA), and USA Patriot Act all require businesses to __________________________. a. b. c. d.

Report security breaches Backup sensitive data Protect personally identifiable information Inform the public about network failures in a timely manner

Answer: C Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB:

50. The director of the Federal Trade Commission (FTC) bureau of consumer protection warned that the agency would bring enforcement action against small businesses a. b. c. d.

That failed to inform the public about network failures in a timely manner That failed to transmit sensitive data That did not report security breaches to law enforcement Lacked adequate policies and procedures to protect consumer data.

Answer: D Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

51. The “Payment Card Industry Data Security Standard (PCI DSS)” created by Visa, MasterCard, American Express, and Discover is a ___________________________________. a. Set of standards required by U.S. and international law for protecting credit card transaction data. b. Set of industry standards required for all members, merchants, or service providers that store, process, or transmit cardholder data. c. Set of voluntary security guidelines for retailers who accept Visa, MasterCard, American Express, and Discover credit cards. d. Set of regulations (that vary from state to state, and country to country) that apply to credit card companies, but not necessarily to retailers or merchants who accept them.

Answer: B Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 52. The supervision, monitoring, and control of the organization’s IT assets is called __________________. a. b. c. d.

IT planning Strategic planning for IT IT governance IT architecture management

Answer: C Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 53. Which of the following is not one of the COBIT (Control Objectives for Information and Related Technology) principles listed in your textbook? a. b. c. d.

Principle of economic use of resources Principle of legality Principle of secure assets Accounting principles

Answer: C Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

54. Organizations that use the _______________________ of network security develop strategic layers of protection against security breaches. The top layer is often, “senior management commitment and support” of security efforts. a. b. c. d.

Layered Security Model Security module model Segmented security model Defense-in-depth model

Answer: D Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

55. Effective organizations develop a(n) _____________________ that informs users of their responsibilities regarding the use of computing resources and information, including acceptable and unacceptable actions, and consequences for noncompliance. a. b. c. d.

Terms of service (TOS) Acceptable use policy (AUP) Safe security plan (SSP) Computing practices policy (CPP)

Answer: B Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

56. The ______________________ is an exercise that determines the impact of losing the support or availability of a resource. a. b. c. d.

Business impact analysis (BIA) Vulnerability audit Asset valuation audit Computing Cost/Benefit (CCB) audit

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB:

57. Sometimes system failures and data or information loss can result from reasons other than an intentional attempt to breach security. Which of the following is not an example of an unintentional threat described in your textbook? a. b. c. d.

Political/civic unrest Human errors Environmental hazards Computer systems failures

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

58. Which of the following would not be considered an example of an intentional security threat? a. b. c. d.

Theft of data Inappropriate use of data (e.g., manipulating inputs) Malicious damage to computer resources Human Error

Answer: D Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

59. Which of the following would not be considered an example of an intentional security threat? a. b. c. d.

Computer systems failure Malicious damage to computer resources Destruction from viruses and similar attacks Internet fraud

Answer: A Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

60. Computers infected by software “robots” can be organized into networks called ______________. a. b. c. d.

Zombies Spies Botnets Phishnets

Answer: C Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 61. Individual computers infected by software “robots” are sometimes referred to as _____________. a. b. c. d.

Zombies Spies Botnets Phishnets

Answer: A Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

62. _____________________ is a term referring to a variety of criminal behaviors perpetrated by an organization’s own employees or contractors. a. b. c. d.

Managerial corruption Insider or internal fraud Corporate fraud Intentional fraud

Answer: B Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Ethical understanding and reasoning abilities

63. When it comes to fraud committed by an organization’s employees, the single most effective fraud prevention technique is _______________________. a. b. c. d.

Holding managers responsible for the actions of their employees Peer monitoring (employees monitor each other) Creating the perception that fraud will be detected and punished A clearly written employee policy manual that explains unacceptable behaviors

Answer: C Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB: Ethical understanding and reasoning abilities

64. When it comes to reducing employee fraud, regulators look favorably on companies that can demonstrate good _________________ and best practice operational risk management. a. b. c. d.

Corporate governance Access to legal counsel Relationships with security vendors Awareness of industry standards

Answer: A Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB:

65. Detecting internal fraud has become sophisticated. Audit trails from key systems and personnel records are stored in data warehouses and subjected to ________________ where things like excessive hours worked, unusual transactions, copying of huge amounts of data and other unusual patterns of behavior are identified. a. b. c. d.

Security audits Pattern analysis Behavior recognition scans Anomaly detection analysis

Answer: D Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

66. People who have their social security or credit card numbers stolen and used by thieves are frequently victims of ___________________. a. b. c. d.

Insider fraud Identity theft Occupational corruption Document sabotage

Answer: B Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB:

67. Internal fraud prevention and detection measures are based on __________ and __________. a. A detailed recovery plan; containment, including a fault-tolerant system b. Perimeter defense technologies, such as e-mail scanners; human resource procedures, such as recruitment screening c. General controls; application controls d. Physical controls, including authorization; authentication systems Answer: B Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

68. Crime can be divided into two categories depending on the tactics used to carry out the crime. What are those two categories? a. b. c. d.

Personal and non-personal Felonies and misdemeanors Insider and outsider Violent and nonviolent

Answer: D Difficulty: Easy Section Ref: 5.3 Defending Against Fraud AACSB:

69. The objective of IT security management practices is to defend __________. a. b. c. d.

Data and data processing capabilities Hardware and software applications and wireless devices Data and networks Data, hardware, software applications, and networks

Answer: D Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

70. Before the people who are responsible for security make any decisions about information security defenses, they must understand __________. a. b. c. d.

The requirements and operations of the business How firewalls, anti-virus software, and other technology function Tactics of hackers, fraudsters, botnets, and identity thieves How much to invest in risk management

Answer: A Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

71. The cybersecurity defense strategy and controls that should be used depend on _________________. a. b. c. d.

The source of the threat Industry regulations regarding protection of sensitive data What needs to be protected and the cost-benefit analysis The available IT budget

Answer: C Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

72. A defense strategy requires several controls. ______________are established to protect the system regardless of the specific application. a. b. c. d.

Application controls Physical controls General controls Authentication controls

Answer: C Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

73. A defense strategy requires several controls. ________________ are safeguards that are intended to protect specific applications. a. b. c. d.

Application controls Physical controls General controls Authentication controls

Answer: A Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

74. A defense strategy requires several controls. ______________ protect computer facilities and resources such as computers, data centers, software, manuals, and networks. a. b. c. d.

Application controls Physical controls General controls Authentication controls

Answer: B Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

75. Physical security includes several controls. Which of the following is not a type of physical control? a. b. c. d.

Security bonds or malfeasance insurance for key employees Emergency power shutoff and backup batteries Shielding against electromagnetic fields Properly designed and maintained air-conditioning systems

Answer: A Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

76. Which of the following is not a type of administrative control for information assurance and risk management? a. Fostering company loyalty b. Immediately revoking access privileges of dismissed, resigned, or transferred employees c. Instituting separation of duties by dividing sensitive computer duties among as many employees as economically feasible d. Performing authorization and authentication Answer: D Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

77. Network security involves three types of defenses, which are referred to as layers. Those layers consist of each of the following except: a. Perimeter security layer to control access to the network. b. Authentication layer to verify the identity of the person requesting access to the network. c. Biometrics layer to monitor network usage. d. Authorization layer to control what authenticated users can do once they are given access to the network.

Answer: C Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

78. To keep unauthorized users out of the network, companies need to implement ___________ controls. a. b. c. d.

Administrative Network access Input Communication

Answer: B Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

79. A __________ is a system, or group of systems, that enforces an access-control policy between two networks. a. b. c. d.

Firewall Switch Router Gateway

Answer: A Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

80. The major objective of __________ is to identify a legitimate user and determine the action(s) he or she is allowed to perform. a. b. c. d.

Authorization Authentication Endpoint security Information assurance

Answer: B Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

81. When dealing with consumer-facing applications, such as online banking and e-commerce, strong authentication must be balanced with __________. a. b. c. d.

Convenience Encryption Authorization Cost

Answer: A Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

82. Authentication methods based on user name and password plus other information such as biometrics, are called _________________ authentication. a. b. c. d.

Compound factor Complex Composite Two-factor or multifactor

Answer: D Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

83. Wireless networks are more difficult to protect than wired ones. Which of the following is not a control or practice recommended by your textbook for protecting wireless networks? a. Organizations should ensure that each wireless device connected to the network matches an authorized configuration and security profile, with a documented owner of the connection and a defined business need. b. Organizations should ensure that all wireless APs are manageable using enterprise management tools. c. Organizations should prohibit employees from using social media and cloudbased APs because they increase the risk of security breach. d. Organizations should use Wireless Intrusion Detection Systems (WIDS) to identify rogue wireless devices and detect attack attempts and successful compromises.

Answer: C Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

84. The internal control environment is the work atmosphere that a company sets for its employees and is designed to achieve all of the following except _________________. a. b. c. d.

Reliability of financial reporting Enhanced decision making Compliance with laws Compliance with regulations and policies

Answer: B Difficulty: Hard Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

85. All of the following describe The Sarbanes-Oxley Act (SOX) except: a. Is an antifraud law b. Forces more accurate business reporting and disclosure of GAAP (generally accepted accounting principles) violations. c. Makes it necessary to find and root out fraud. d. Through treaty agreements, has been adopted by all countries in North American and the European Union Answer: D Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB:

86. Symptoms of fraud that can be detected by internal controls include all of the following except: a. b. c. d.

Missing documents.

Delayed bank deposits.

Employees who do not take vacations or go out of their way to work overtime.

Large increase in network traffic.

Answer: D Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

87. An estimated __________ of companies that suffer a significant data loss often go out of business within five years. a. b. c. d.

23% 43% 73% 93%

Answer: D Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

88. __________ is the chain of events linking the business continuity plan to protection and to recovery. a. b. c. d.

Disaster recovery Auditing Date recovery Internal control

Answer: A Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

89. An audit is an important part of any control system. Which of the following is not a question that would typically be asked as part of an information systems audit? a. Are there sufficient controls in the system? Which areas are not covered by controls? b. Are the controls implemented properly? Are the controls effective? c. What is the cost of the controls? What is the ROI (return on investment) associated with system controls? d. Are there procedures to ensure reporting and corrective actions in case of violations of controls?

Answer: C Difficulty: Hard Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

90. When conducting a risk management analysis, each of the following factors is used to calculate expected loss except: a. b. c. d.

Probability of attack (estimate, based on judgment) Probability of attack being successful (estimate, based on judgment) Probability of attack remaining undetected (estimate, based on judgment) Loss occurring if attack is successful (typically expressed in financial units, e.g. dollars)

Answer: C Difficulty: Hard Section Ref: 5.7 Business Continuity and Auditing AACSB:

91. Implementing security programs raises many ethical issues. Which of the following is not an ethical issue associated with network security identified in your textbook? a. Equal access and unfair restrictions – Do company attempts to protect network access unfairly prevent certain employees who need access from doing their jobs?

What consequences do these employees suffer? b. Privacy – sometimes ethical or legal regulations require employers to monitor network users in ways that some people feel violates their privacy. c. The doctrine of “respondeat superior” holds employers liable for the misconduct of their employees that occurs within the scope of their employment. However, because employees carry mobile devices that connect 24/7 to the work network, when does that liability begin and end? d. Under the doctrine of duty of care, senior managers and directors have a fiduciary obligation to use reasonable care to protect the company’s business operations, but what is reasonable care?

Answer: A Difficulty: Hard Section Ref: 5.7 Business Continuity and Auditing AACSB: Ethical understanding and reasoning abilities

True/False 1. International, federal, and state laws and industry regulations mandate that organizations invest in cybersecurity defenses, audits, and internal controls to secure confidential data and defend against fraud and unauthorized transactions, such as money laundering.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Dynamics of the global economy 2. People wanting to use their mobile devices at work has led to the practice of “bring your own device (BYOD)” Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

3. People wanting to use their mobile devices at work is part of a growing trend called DualUse Mobile Equipment.

Answer: False Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

4. Many smartphones are not being managed as secure devices, with fewer than one in five adding anti-malware and only half using data encryption. This can create security problems for organizations.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

5. Most smartphones come equipped with anti-malware and data encryption apps which make them secure devices for use on enterprise (workplace) networks and for handling workrelated data.

Answer: False Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

6. Despite the recent increase in popularity of mobile devices, PCs continue to outnumber mobile devices in terms of number of units sold.

Answer: False Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

7. Forrester Research, Inc. estimates that a majority of companies had begun allowing employees to use their own mobile devices for some aspects of their work by 2012.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

8. According to a Forrester Research, Inc. report, companies are increasingly prohibiting employees from using their personal mobile devices for work related purposes because of security and compliance challenges.

Answer: False Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

9. Cost savings associated with allowing employees to use their own mobile devices can be wiped out by increased IT costs—mostly for IT personnel who struggle to maintain control over new and existing mobile devices.

Answer: True Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

10. Cost savings associated with allowing employees to use their own mobile devices almost always outweigh any increased IT costs associated with IT personnel needed to manage new and existing mobile devices.

Answer: False Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

11. Organizations are subject to national and international regulations and standards that specify how data can or cannot be collected and stored, as well as how it must be made available in the event of an audit or legal action.

Answer: True Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

12. Controls placed on employee-owned devices can infringe on personal privacy. For instance, organizations could know what sites were visited or movies were watched, what was done on sick days, what texts were sent/received, and all social media activities during work hours and off-hours.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

13. To reduce the threat of security breaches related to employee owned devices, data and ISs need to be protected from unauthorized access, including when an employee’s device is lost or stolen, or an employee leaves the company.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

14. Your textbook lists 3 challenges associated with managing employee owned mobile devices used in the work place: 1) Increased costs of managing employee owned devices, 2) Employees using the devices for non-work related activity (e.g. personal social media, texting, personal phone calls) and 3) Morale issues related to the fact that some employees will have better, more expensive devices than others.

Answer: False Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

15. With the number of mobile apps hitting 1.3 million in mid-2012–compared to only 75,000 apps for PCs–-managing employee-owned devices is more complex and expensive.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

16. Since mobile devices are smaller and less complex than high powered PCs, managing employee-owned mobile devices is relatively simple.

Answer: False Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

17. Cyber threats will continue to emerge, evolve, and worsen over the next 10 years and beyond.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology 18. Critical infrastructure is defined as “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.”

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

19. Social engineering tactics are used by hackers and corporate spies to trick people into revealing login information or access codes.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

20. In the United States and other countries, protecting consumer data is not only a good business practice, it is required by law.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

21. Tactics used by hackers and corporate spies to trick people into revealing login information or access codes are referred to as “password crashing”.

Answer: False Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

22. A stealth network attack in which an unauthorized person gains access to a network and remains undetected for a long time is referred to as an Advanced Persistent Threat (APT) attack.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

23. A stealth network attack in which an unauthorized person gains access to a network and remains undetected for a long time is referred to as a Silent Sabotage attack.

Answer: False Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

24. One way that hackers and corporate spies trick people into revealing login information or access codes is pretexting; using a story that convinces someone that it is okay to reveal secret information.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

25. One way that hackers and corporate spies trick people into revealing login information or access codes is baiting; use of an incentive to get a user to perform an insecure action. A common application of this practice involves offering a free app or video for clicking a link in a text message and voting for best video game. Clicking the link downloads malware.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

26. One way that hackers and corporate spies trick people into revealing login information or access codes is pretexting; use of an incentive to get a user to perform an insecure action. A common application of this practice involves offering a free app or video for clicking a link in a text message and voting for best video game. Clicking the link downloads malware.

Answer: False Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

27. For many organizations, cloud technologies have worsened their exposure to security risks because they cannot enforce or verify their cloud providers’ cybersecurity policies.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

28. Cloud computing has simplified cybersecurity since most cloud based networks are more secure than private networks maintained by individual organizations.

Answer: False Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

29. One source of cybersecurity threats today are hacktivists, hacker-activists (or hacking for a cause) who breach networks in an attempt to gain media attention.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

30. One source of cybersecurity threats today are industrial spies, hacker-activists (or hacking for a cause) who breach networks in an attempt to gain media attention.

Answer: False Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

31. An industrial spy is a special kind of hacker who attempts to breach secure networks looking for trade secrets or proprietary information.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

32. The Data Breach Investigations Report revealed that 97 percent of data breaches evaluated in the study were avoidable and did not require hackers to possess special skills, resources, or customization.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

33. The Data Breach Investigations Report revealed that 97 percent of data breaches evaluated in the study resulted from a combination of sophisticated hacking software and hardware tools designed to defeat IT security defenses.

Answer: False Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

34. Denial of service (DoS) is a type of attack where a web site or network is bombarded with traffic to make them crash.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

35. Advanced Persistent Threat (APT) is a type of attack where a web site or network is bombarded with traffic to make them crash.

Answer: False Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

36. Mobile devices and social media use increase an organization’s exposure to new and significant cybersecurity threats.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

37. It usually takes a long time for victims to find out they have been hacked. In 2011, the majority of data breaches were discovered by a third party and not the company being breached.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

38. According to your text, the preferred method of hackers who wish to steal trade secrets and other confidential information from business organizations is to break into employees’ mobile devices and leapfrog into employers’ networks—stealing secrets without a trace.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

39. According to your text, the preferred method of hackers who wish to steal trade secrets and other confidential information from business organizations is to bombard websites or networks with so much traffic that they “crash”, exposing sensitive data Answer: False Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

40. Some government and corporate officials concerned about security threats from abroad do not bring their own cell phone or laptop when traveling overseas. Instead, they bring loaner devices and follow a strict regimen of security procedures including not connecting to their US network while out of the country. These procedures are referred to as Do-Not-CarryRules.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

41. A data breach typically costs an organization from $5 million to $8 million—from fines imposed by government agencies, legal fees, mandated improvements in defenses, and costs of notifying and compensating individuals whose data was exposed.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

42. Cybersecurity risks continue to grow because apps and other software have holes that hackers exploit—and users often do not know about unless they keep tabs on the latest cyber vulnerabilities.

Answer: True Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

43. Thanks to enhanced awareness about cybersecurity risks, programmers have eliminated most of the holes that hackers can exploit in apps and software commonly used by organizations today.

Answer: False Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

44. A goal of cybersecurity is to make data and documents available and accessible 24/7 while simultaneously restricting access to unauthorized users.

Answer: True Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

45. Malware are viruses, worms, Trojan horses, spyware, and any other type of disruptive, destructive, or unwanted programs.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

46. In Cybersecurity terminology, a threat is defined as something or someone that may result in harm to an asset.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

47. In Cybersecurity terminology, a threat is defined as a weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

48. In Cybersecurity terminology, a vulnerability is defined as a weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

49. In Cybersecurity terminology, a vulnerability is defined as Tool or technique that threatens the confidentiality, integrity, or availability (CIA) of an asset.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

50. In Cybersecurity terminology, a risk is defined as the probability of a threat exploiting a vulnerability Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

51. In Cybersecurity terminology, a risk is defined as the estimated cost, loss, or damage that can result from an exploited vulnerability.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

52. In Cybersecurity terminology, an exploit is defined as a tool or technique that takes advantage of a vulnerability.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

53. The network administrator at a large company receives daily updates about various worms, viruses and other malicious software found on the Internet including an assessment of how dangerous each of these are so that she can figure out how best to protect her organization’s network. The information in her report is about threats and risks.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

54. The network administrator at a large company receives daily updates about various worms, viruses and other malicious software found on the Internet and then assesses how to best protect her organization’s network from possible attack. In cybersecurity terminology, she is involved in risk management.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

55. The network administrator at a large company receives daily updates about various worms, viruses and other malicious software found on the Internet and then assesses how to best protect her organization’s network from possible attack. In cybersecurity terminology, she is involved in identifying exposure.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

56. The three key principles of cybersecurity are confidentiality, integrity, availability.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

57. The three key principles of cybersecurity are data protection, equipment protection, reputation protection.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

58. When sending sensitive email, James uses a program that transforms data into scrambled code to protect it from being understood by unauthorized users. James is using “encryption” to protect his email communications.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

59. When sending sensitive email, James uses a program that transforms data into scrambled code to protect it from being understood by unauthorized users. James is using “biometrics” encryption to protect his email communications.

Answer: False Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

60. Access to top secret or highly secure networks associated with Homeland Security or national defense often use authentication methods based on a biological feature, such as a fingerprint or retina to identify a person. These methods are called biometrics.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

61. Access to top secret or highly secure networks associated with Homeland Security or national defense often use authentication methods based on a biological feature, such as a fingerprint or retina to identify a person. These methods are called Unique Identification methods.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

62. A firewall is a software or hardware device that controls access to their private network from the Internet by analyzing data packets entering or exiting it.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

63. A botnet is a software or hardware device that controls access to their private network from the Internet by analyzing data packets entering or exiting it.

Answer: False Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

64. The ability of an IS to continue to operate when a failure occurs, but usually for a limited time or at a reduced level is referred to as fault tolerance.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

65. The ability of an IS to continue to operate when a failure occurs, but usually for a limited time or at a reduced level is referred to as Minimal Operating Level (MOL).

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

66. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is confidentiality, or the avoidance of unauthorized disclosure of information or data.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

67. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is integrity, or the property that data or files have not been altered in an unauthorized way.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

68. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is fidelity, or the property that data or files have not been altered in an unauthorized way.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

69. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is availability, or the property that data is accessible and modifiable when needed by those authorized to do so.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

70. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is flexibility, or the property that data is accessible and modifiable when needed by those authorized to do so.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

71. In cybersecurity terms, the function of a password together with a username is to authenticate a user’s identity to verify that the person has the right to access a computer or network.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

72. Intrusion Detection Systems (IDS) are designed to monitor network traffic and identify threats that may have breached the networks initial defenses.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

73. Intrusion Detection Systems (IDS) are designed to detect and protect a network primarily from internal threats.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

74. Intrusion Detection Systems (IDS) are designed to detect and protect a network primarily from external threats.

Answer: False Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

75. While security threats from e-mail viruses and malware have been declining for years as email security has improved, threats from social networks and cloud computing have increased considerably in recent years.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

76. Time-to-exploitation is the elapsed time between when vulnerability in a software app or system is discovered and when it’s exploited.

Answer: True Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

77. When new vulnerabilities are found in operating systems, applications, or wired and wireless networks, vendors of those products release firewalls or downloads to fix the vulnerabilities.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

78. Most information security incidents will occur because of users who do not follow secure computing practices and procedures.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

79. In the United States, the Sarbanes–Oxley Act (SOX), Gramm-Leach-Bliley Act (GLB), Federal Information Security Management Act (FISMA), and USA Patriot Act all require businesses to protect personally identifiable information.

Answer: True Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

80. The director of the Federal Trade Commission (FTC) bureau of consumer protection warned that the agency would bring enforcement action against small businesses that failed to transmit sensitive data.

Answer: False Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 81. The “Payment Card Industry Data Security Standard (PCI DSS)” created by Visa, MasterCard, American Express, and Discover is a set of voluntary security guidelines for retailers who accept Visa, MasterCard, American Express, and Discover credit cards.

Answer: False Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 82. The supervision, monitoring, and control of the organization’s IT assets is called IT governance.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 83. The supervision, monitoring, and control of the organization’s IT assets is called strategic planning for IT. Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

84. Organizations that use the defense-in-depth model of network security develop strategic layers of protection against security breaches.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

85. Effective organizations develop an Acceptable Use Policy (AUP) that informs users of their responsibilities regarding the use of computing resources and information, including acceptable and unacceptable actions, and consequences for noncompliance.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 86. The typical name for a company’s policy that informs users of their responsibilities regarding the use of computing resources and information, including acceptable and unacceptable actions, and consequences for noncompliance is the Terms of Service (TOS) agreement.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

87. The Business impact analysis (BIA) is an exercise that determines the impact of losing the support or availability of a resource.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

88. The Computing Cost/Benefit (CCB) audit is an exercise that determines the impact of losing the support or availability of a resource.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

89. Theft of data, inappropriate use of data (e.g., manipulating inputs) and malicious damage to computer resources are all considered “intentional” security threats.

Answer: True Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 90. Human error and environmental hazards are both considered “intentional” security threats.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 91. Computers infected by software “robots” can be organized into networks called “phishnets” or “phishnetworks”.

Answer: False Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 92. Computers infected by software “robots” can be organized into networks called “botnets”.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 93. Individual computers infected by software “robots” are sometimes referred to as zombies.

Answer: True Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

94. Insider or internal fraud is a term referring to a variety of criminal behaviors perpetrated by an organization’s own employees or contractors.

Answer: True Difficulty: Easy Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

95. When it comes to reducing employee fraud, regulators look favorably on companies that can demonstrate good corporate governance and best practice operational risk management.

Answer: True Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology 96. When it comes to fraud committed by an organization’s employees, the most effective fraud prevention technique is a clearly written employee policy manual that explains unacceptable behaviors and holding managers responsible for the actions of their employees.

Answer: False Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

97. Anomaly detection analysis identifies things like excessive hours worked, unusual transactions, copying of huge amounts of data and other unusual patterns of behavior, and uses them to alert IT managers to the possibility of internal fraud.

Answer: True Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

98. People who have their social security or credit card numbers stolen and used by thieves are frequently victims of identity theft.

Answer: True Difficulty: Easy Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

99. Internal fraud prevention and detection measures are based on physical controls, including authorization and authentication systems.

Answer: False Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

100. The objective of IT security management practices is to defend data, hardware, software applications, and networks.

Answer: True Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

101. The objective of IT security management practices is to defend data, software, applications, and system programs.

Answer: False Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

102. The cybersecurity defense strategy and controls that should be used depend on what needs to be protected and the cost-benefit analysis.

Answer: True Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

103. The cybersecurity defense strategy and controls that should be based on the available IT budget allocated to security measures.

Answer: False Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

104. A defense strategy requires several controls. Application controls are established to protect the system regardless of the specific application.

Answer: True Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

105. A defense strategy requires several controls. Application controls protect computer facilities and resources such as computers, data centers, software, manuals, and networks.

Answer: False Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

106. A defense strategy requires several controls. Physical controls protect computer facilities and resources such as computers, data centers, software, manuals, and networks.

Answer: True Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

107. The SEC and FTC impose huge fines for data breaches to deter companies from overinvesting in data protection.

Answer: False Difficulty: Easy Section Ref: 5.4 Information Assurance and Risk Management AACSB:

108. Security bonds or malfeasance insurance for key employees are examples of physical controls.

Answer: False Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

109. Fostering company loyalty and immediately revoking access privileges of dismissed, resigned, or transferred employees are examples of administrative controls.

Answer: True Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

110.

Performing authorization and authentication are examples of administrative controls.

Answer: False Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

111. Network security involves three types of defenses, which are referred to as 1) perimeter security layer, 2) authentication layer, and 3) authorization layer.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

112. Network security involves three types of defenses, which are referred to as 1) perimeter security layer, 2) administrative layer, and 3) operational layer.

Answer: False Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

113. To keep unauthorized users out of the network, companies need to implement network access controls.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

114. A gateway is a system, or group of systems, that enforces an access-control policy between two networks.

Answer: False Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

115. The major objective of endpoint security is to identify a legitimate user and determine the action(s) he or she is allowed to perform.

Answer: False Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

116. The major objective of authentication is to identify a legitimate user and determine the action(s) he or she is allowed to perform.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

117. When dealing with consumer-facing applications, such as online banking and ecommerce, strong authentication must be balanced with cost.

Answer: False Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

118. When dealing with consumer-facing applications, such as online banking and ecommerce, strong authentication must be balanced with convenience.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

119. To protect their wireless network, organizations should ensure that each wireless device connected to the network matches an authorized configuration and security profile, with a documented owner of the connection and a defined business need.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

120. To protect their wireless network, organizations should use Wireless Intrusion Detection Systems (WIDS) to identify rogue wireless devices and detect attack attempts and successful compromises.

Answer: True Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

121. To protect their wireless network, organizations should prohibit employees from using social media and cloud-based APs because they increase the risk of security breach.

Answer: False Difficulty: Easy Section Ref: 5.5 Network Security AACSB: Use of Information Technology

122. The internal control environment is the work atmosphere that a company sets for its employees and is designed to achieve reliability of financial reporting and compliance with laws, regulations and policies.

Answer: True Difficulty: Hard Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

123. The internal control environment is the work atmosphere that a company sets for its employees and is designed to enhanced managerial decision making and business intelligence (BI) capabilities.

Answer: False Difficulty: Hard Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

124. The Sarbanes-Oxley Act (SOX) is an anti-fraud law that forces more accurate business reporting and disclosure of GAAP (generally accepted accounting principles) violations.

Answer: True Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

125. Symptoms of fraud that can be detected by internal controls include all of the following: missing documents, delayed bank deposits and employees who don’t take vacations or work inordinate amounts of overtime.

Answer: True Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

126. An estimated 93% of companies that suffer a significant data loss often go out of business within five years.

Answer: True Difficulty: Easy Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

127. Research shows that most companies (95%) that suffer a significant data loss are able to recover and are still in business five years later.

Answer: False Difficulty: Easy Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

128. An important element in any security system is the business continuity plan, also known as the disaster recovery plan.

Answer: True Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

129. The purpose of a business continuity plan is to keep the business running after a disaster occurs. Each function in the business should have a valid recovery capability plan.

Answer: True Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

130. Information system audits provide an additional layer of controls or safeguards. It is considered a deterrent to criminal actions, especially for insiders.

Answer: True Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology 131. One shortcoming of an information system audit is that it focuses is on an organization’s security strategies. It typically does not review specific tactics or actions an organization takes to maintain network security.

Answer: False Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

132. When conducting a risk management analysis, each of the following factors is used to calculate expected loss: 1) probability of an attack, 2) probability of attack being successful and 3) probability of an attack remaining undetected.

Answer: False Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

133. When conducting a risk management analysis, each of the following factors is used to calculate expected loss: 1) probability of an attack, 2) probability of attack being successful and 3) estimated loss that will occur if attack is successful.

Answer: True Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

134. According to your textbook, one ethical issue that can arise from cybersecurity practices is privacy - sometimes ethical or legal regulations require employers to monitor network users in ways that some people feel violates their privacy.

Answer: True Difficulty: Easy Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

135. According to your textbook, one ethical issue that can arise from cybersecurity practices is related to the principle of “respondeat superior” which holds employers liable for the misconduct of their employees that occurs within the scope of their employment. However, because employees carry mobile devices that connect 24/7 to the work network, when does that liability begin and end?

Answer: True Difficulty: Easy Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

136. According to your textbook, one ethical issue that can arise from cybersecurity practices is related to the principles fairness and equal opportunity. Are lower income employees with cheaper mobile devices able to compete effectively with employees who have more expensive devices? What obligations does the employer have to correct this inequity?

Answer: False Difficulty: Easy Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

Short Answer 1. The increasing practice of people bringing and using their own mobile devices in the workplace is called ______________.

Answer: Bring your own device (BYOD) Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

2. The fact that many smart phones and other personal mobile devices do not have anti-malware or encryption apps can create ________________ problems for organizations.

Answer: Security Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

3. Forrester Research, Inc. estimates that a majority of companies had begun allowing employees to use their own ________________ for some aspects of their work by 2012.

Answer: Mobile devices Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

4. Cost savings associated with allowing employees to use their own mobile devices can be wiped out by increased _____________—mostly for IT personnel who struggle to maintain control over new and existing mobile devices.

Answer: IT costs Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

5. Organizations are subject to national and international regulations and standards that specify how data can or cannot be collected and stored, as well as how it must be made available in the event of ____________________.

Answer: an audit or legal action Difficulty: Hard Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

6. Controls placed on employee-owned devices can infringe on ____________. For instance, organizations could know what sites were visited or movies were watched, what was done on sick days, what texts were sent/received, and all social media activities during work hours and off-hours.

Answer: Personal privacy Difficulty: Easy Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology

7. To reduce the threat of security breaches related to employee owned devices, data and ISs need to be protected from __________________, including when an employee’s device is lost or stolen, or an employee leaves the company.

Answer: Unauthorized access Difficulty: Medium Section Ref: Opening Case: Managing BYOD Security Risks AACSB: Use of Information Technology 8. _______________________ is defined as “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.”

Answer: Critical infrastructure Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

9. __________________ tactics are used by hackers and corporate spies to trick people into revealing login information or access codes.

Answer: Social engineering Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

10. A stealth network attack in which an unauthorized person gains access to a network and remains undetected for a long time is referred to as a(n) ______________________ attack.

Answer: Advanced Persistent Threat (APT) Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

11. One way that hackers and corporate spies trick people into revealing login information or access codes is ________________; using a story that convinces someone that it is okay to reveal secret information.

Answer: Pretexting Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

12. One way that hackers and corporate spies trick people into revealing login information or access codes is____________; use of an incentive to get a user to perform an insecure action.

A common application of this practice involves offering a free app or video for clicking a link in a text message and voting for best video game. Clicking the link downloads malware.

Answer: Baiting Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

13. For many organizations, ____________ technologies have worsened their exposure to security risks because they cannot enforce or verify their ___________ providers’ cybersecurity policies. (Same word in both spaces) Answer: Cloud / Cloud Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

14. One source of cybersecurity threats today are _____________, hacker-activists (or hacking for a cause) who breach networks in an attempt to gain media attention.

Answer: Hacktivists Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

15. A(n) __________________ is a special kind of hacker who attempts to breach secure networks looking for trade secrets or proprietary information.

Answer: Industrial spy Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

16. The Data Breach Investigations Report revealed that 97 percent of data breaches evaluated in the study were _____________ and did not require hackers to possess special skills, resources, or customization.

Answer: Avoidable or Preventable Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

17. _________________ is a type of attack where a web site or network is bombarded with traffic to make them crash.

Answer: Denial of service (DoS) Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

18. ___________ devices and __________ media use increase an organization’s exposure to new and significant cybersecurity threats.

Answer: Mobile / Social Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

19. According to your text, the preferred method of hackers who wish to steal trade secrets and other confidential information from business organizations is to break into employees’ ___________ devices and leapfrog into employers’ networks—stealing secrets without a trace.

Answer: Mobile Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

20. Some government and corporate officials concerned about security threats from abroad do not bring their own cell phone or laptop when traveling overseas. Instead, they bring loaner devices and follow a strict regimen of security procedures including not connecting to their US network while out of the country. These procedures are referred to as _________________.

Answer: Do-Not-Carry-Rules.

Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

21. A data breach typically costs an organization from $5 million to $8 million based on (name at least 2 costs or expenses) ____________________________________.

Answer: Fines imposed by government agencies, legal fees, mandated improvements in defenses, and costs of notifying and compensating individuals whose data was exposed.

Difficulty: Hard Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

22. A goal of cybersecurity is to make data and documents available and accessible 24/7 while simultaneously __________________ to unauthorized users.

Answer: Restricting access Difficulty: Easy Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology

23. Viruses, worms, Trojan horses, spyware, and any other type of disruptive, destructive, or unwanted programs are referred to collectively as _______________.

Answer: Malware Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

24. In Cybersecurity terminology, a(n) ______________is defined as something or someone that may result in harm to an asset.

Answer: Threat Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

25. In Cybersecurity terminology, a(n) ________________ is defined as a weakness that threatens the confidentiality, integrity, or availability (CIA) of an asset.

Answer: vulnerability Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

26. In Cybersecurity terminology, a(n) _____________ is defined as the probability of a threat exploiting a vulnerability Answer: Risk Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

27. In Cybersecurity terminology, a(n) ____________ is defined as the estimated cost, loss, or damage that can result from an exploited vulnerability.

Answer: Exposure Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

28. In Cybersecurity terminology, a(n) __________ is defined as a tool or technique that takes advantage of a vulnerability.

Answer: Exploit Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

29. The network administrator at a large company receives daily updates about various worms, viruses and other malicious software found on the Internet and then assesses how to best protect her organization’s network from possible attack. In cybersecurity terminology, she is involved in _________________.

Answer: Risk management Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

30. The three key principles of cybersecurity are confidentiality, _____________ and _______________.

Answer: integrity, availability Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

31. When sending sensitive email, James uses a program that transforms data into scrambled code to protect it from being understood by unauthorized users. James is using ___________ to protect his email communications.

Answer: Encryption Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

32. Access to top secret or highly secure networks associated with Homeland Security or national defense often use authentication methods based on a biological feature, such as a fingerprint or retina to identify a person. These methods are called _______________.

Answer: biometrics Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

33. A _____________ is a software or hardware device that controls access to their private network from the Internet by analyzing data packets entering or exiting it.

Answer: Firewall Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

34. The ability of an IS to continue to operate when a failure occurs, but usually for a limited time or at a reduced level is referred to as ____________________.

Answer: Fault tolerance Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

35. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is ____________________, or the avoidance of unauthorized disclosure of information or data.

Answer: Confidentiality Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

36. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is ________________, or the property that data or files have not been altered in an unauthorized way.

Answer: Integrity Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

37. IT professionals work hard to protect key characteristics of an asset from security breaches.

One of these characteristics is ____________, or the property that data is accessible and modifiable when needed by those authorized to do so.

Answer: Availability Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

38. In cybersecurity terms, the function of a password together with a username is to _____________ a user’s identity to verify that the person has the right to access a computer or network.

Answer: Authenticate Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

39. _______________________________ are designed to monitor network traffic and identify threats that may have breached the networks initial defenses.

Answer: Intrusion Detection Systems (IDS) Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

40. While security threats from e-mail viruses and ______________ have been declining for years as e-mail security has improved, threats from social networks and cloud computing have increased considerably in recent years.

Answer: Malware Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

41. _______________________ is the elapsed time between when vulnerability in a software app or system is discovered and when it’s exploited.

Answer: Time-to-exploitation Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

42. Most information security incidents will occur because of users who do not follow secure computing _______________________.

Answer: practices or procedures Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

43. In the United States, the Sarbanes–Oxley Act (SOX), Gramm-Leach-Bliley Act (GLB), Federal Information Security Management Act (FISMA), and USA Patriot Act all require businesses to protect ______________ ________________ _______________.

Answer: Personally identifiable information Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 44. The supervision, monitoring, and control of the organization’s IT assets is called __________________.

Answer: IT governance Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

45. Organizations that use the ____________________ model of network security develop strategic layers of protection against security breaches.

Answer: defense-in-depth Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

46. Effective organizations develop a(n) _________________________ that informs users of their responsibilities regarding the use of computing resources and information, including acceptable and unacceptable actions, and consequences for noncompliance.

Answer: Acceptable Use Policy (AUP) Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

47. The _________________________ is an exercise that determines the impact of losing the support or availability of a resource.

Answer: Business impact analysis (BIA) Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

48. Theft of data, inappropriate use of data (e.g., manipulating inputs) and malicious damage to computer resources are all considered ________________ security threats.

Answer: Intentional Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

49. Computers infected by software “robots” can be organized into networks called __________________.

Answer: Botnets Difficulty: Easy Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

50. ______________________ is a term referring to a variety of criminal behaviors perpetrated by an organization’s own employees or contractors.

Answer: Insider or internal fraud Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

51. When it comes to reducing employee fraud, regulators look favorably on companies that can demonstrate good ______________________ and best practice operational risk management.

Answer: Corporate governance Difficulty: Medium Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

52. ______________________ identifies things like excessive hours worked, unusual transactions, copying of huge amounts of data and other unusual patterns of behavior, and uses them to alert IT managers to the possibility of internal fraud.

Answer: Anomaly detection Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

53. People who have their social security or credit card numbers stolen and used by thieves are frequently victims of _____________________.

Answer: Identity theft Difficulty: Easy Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology

54. The objective of ______________________ practices is to defend data, hardware, software applications, and networks.

Answer: IT security management Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

55. The cybersecurity defense strategy and controls that should be used depend on what needs to be protected and the ___________________________.

Answer: Cost-benefit analysis Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

56. A defense strategy requires several controls. ________________ controls are established to protect the system regardless of the specific application.

Answer: Application Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

57. A defense strategy requires several controls. _________________ controls protect computer facilities and resources such as computers, data centers, software, manuals, and networks.

Answer: Physical Difficulty: Hard Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

58. The SEC and FTC impose huge fines for __________________ to deter companies from over-investing in data protection.

Answer: Data breaches Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB:

59. Fostering company loyalty and immediately revoking access privileges of dismissed, resigned, or transferred employees are examples of __________________ controls.

Answer: Administrative Difficulty: Hard Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

60. Network security involves three types of defenses, which are referred to as 1) __________ _______________ layer, 2) _____________ layer, and 3) ________________layer.

Answer: perimeter security / authentication / authorization Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

61. To keep unauthorized users out of the network, companies need to implement ______________ controls.

Answer: Network access Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

62. The major objective of _________________ is to identify a legitimate user and determine the action(s) he or she is allowed to perform.

Answer: Authentication Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology

63. When dealing with consumer-facing applications, such as online banking and e-commerce, strong authentication must be balanced with _______________________.

Answer: Convenience Difficulty: Easy Section Ref: 5.5 Network Security AACSB: Use of Information Technology

64. To protect their wireless network, organizations should use ___________________________ to identify rogue wireless devices and detect attack attempts and successful compromises.

Answer: Wireless Intrusion Detection Systems (WIDS) Difficulty: Hard Section Ref: 5.5 Network Security AACSB: Use of Information Technology

65. The ______________________________ is an anti-fraud law that forces more accurate business reporting and disclosure of GAAP (generally accepted accounting principles) violations.

Answer: Sarbanes-Oxley Act (SOX) Difficulty: Easy Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

66. Symptoms of fraud that can be detected by _______________ controls include all of the following: missing documents, delayed bank deposits and employees who don’t take vacations or work inordinate amounts of overtime.

Answer: Internal Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

67. An estimated 93% of companies that suffer a significant ______________ often go out of business within five years.

Answer: Data loss Difficulty: Medium Section Ref: 5.6 Internal Control and Compliance AACSB: Use of Information Technology

68. An important element in any security system is the _________________ plan, also known as the disaster recovery plan.

Answer: Business continuity Difficulty: Hard Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

69. Information system _________________ provide an additional layer of controls or safeguards. It is considered a deterrent to criminal actions, especially for insiders.

Answer: Audits Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology 70. When conducting a risk management analysis, each of the following factors is used to calculate __________________: 1) probability of an attack, 2) probability of attack being successful and 3) estimated loss that will occur if attack is successful.

Answer: Expected loss Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

71. According to your textbook, one ethical issue that can arise from cybersecurity practices is _________________ - sometimes ethical or legal regulations require employers to monitor network users in ways that some people feel is intrusive.

Answer: Privacy Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

72. According to your textbook, one ethical issue that can arise from cybersecurity practices is related to the principle of “respondeat superior” which holds employers liable for the __________________________ that occurs within the scope of their employment. However, because employees carry mobile devices that connect 24/7 to the work network, when does that liability begin and end?

Answer: Misconduct of their employees Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Use of Information Technology

Essay Questions 1. Identify the two types of social engineering described in your text and explain how hackers use these techniques to breach network security.

Answer: Social engineering tactics are used by hackers and corporate spies to trick people into revealing login information or access codes. Two social engineering methods are: • Pretexting is the use of a story that convinces someone into revealing secret information. For instance, a hacker uses readily available phone numbers and names to call a worker claiming to be the systems administrator who needs to reset passwords to protect the company from hacking. The hacker has the employee re-log into the network say everything he is typing to get the username and password.

• Baiting is the use of an incentive to get a user to perform an insecure action. A common bait is to offer a free app or video for clicking a link in a text message and voting for best video game. Clicking the link downloads malware.

Difficulty: Medium Section Ref: 5.1 Up Close Look at Cybercrimes, Criminals, and Motivations AACSB: Use of Information Technology 2. Why are internal threats a major challenge for organizations? How can internal threats be minimized?

Answer: Threats from employees, referred to as internal threats, are a major challenge largely due to the many ways an employee can carry out malicious activity. Insiders may be able to bypass physical security (e.g., locked doors) and technical security (e.g., passwords) measures that organizations have in place to prevent unauthorized access. Why? Because defenses such as firewalls, intrusion detection systems (IDS), and locked doors mostly protect against external threats.

Insider incidents can be minimized with a layered defense strategy consisting of security procedures, acceptable use policies, and technology controls.

Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

3. Why do social networks and cloud computing increase IT security risks? How can those risks be reduced?

Answer: Social networks and cloud computing increase vulnerabilities by providing a single point of failure and attack. Critical, sensitive, and private information is at risk, and like previous IT trends, such as wireless networks, the goal is connectivity, often with little concern for security.

As social networks increase their services, the gap between services and cybersecurity also increases. E-mail viruses and malware have been declining for years as e-mail security has improved. This trend continues as communication shifts to social networks and newer smartphones. Unfortunately, malware finds its way to users through security vulnerabilities in these new services and devices. Web filtering, user education, and strict policies are necessary to help prevent widespread outbreaks. In Twitter and Facebook, users invite in and build relationships with others. Cybercriminals hack into these trusted relationships using stolen logins. Fake antivirus and other attacks that take advantage of user trust are very difficult to detect.

Difficulty: Medium Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology 4. Briefly describe (1 or 2 sentences) each of the 4 layers of the Defense-in-Depth model.

Answer: Step 1: Senior management commitment and support. Senior managers’ influence is needed to implement and maintain security, ethical standards, privacy practices, and internal control.

Step 2: Acceptable use policies and IT security training. The next step in building an effective IT security program is to develop security policies and provide training to ensure that everyone is aware of and understands them. Most critical is an acceptable use policy (AUP) that informs users of their responsibilities.

Step 3: IT Security Procedures and Enforcement. If users’ activities are not monitored for compliance, the AUP is useless. Therefore, the next step is to implement monitoring procedures, training, and enforcement of the AUP. Step 4: Hardware and Software. The last step in the model is implementation of software and hardware needed to support and enforce the AUP and secure practices.

Difficulty: Hard Section Ref: 5.2 IT Vulnerabilities and Threats AACSB: Use of Information Technology

5. What is internal fraud and what is an effective approach to preventing it?

Answer: Internal fraud refers to the deliberate misuse of the assets of one’s employer for personal gain.

Internal audits and internal controls are essential to the prevention and detection of occupation frauds.

The single-most-effective fraud prevention technique is the perception of detection and punishment. If a company shows its employees that it can find out everything that every employee does and will prosecute to the fullest extent anyone who commits fraud, then the feeling that “I can get away with it” drops drastically. In addition, companies may use a combination of defenses including intelligent analysis, audit trails, and anomaly detection.

Difficulty: Hard Section Ref: 5.3 Defending Against Fraud AACSB: Use of Information Technology 6. Identify and explain four of the major objectives of IT security defense strategies.

Answer: The following are the major objectives of IT security defense strategies: • Prevention and deterrence. Properly designed controls may prevent errors from occurring, deter criminals from attacking the system, and, better yet, deny access to unauthorized people. These are the most desirable controls.

• Detection. Like a fire, the earlier an attack is detected, the easier it is to combat, and the less damage is done. Detection can be performed in many cases by using special diagnostic software, at a minimal cost.

• Containment (contain the damage). This objective is to minimize or limit losses once a malfunction has occurred. It is also called damage control. This can be accomplished, for example, by including a fault-tolerant system that permits operation in a degraded mode until full recovery is made. If a fault-tolerant system does not exist, a quick and possibly expensive recovery must take place. Users want their systems back in operation as fast as possible.

• Recovery. A recovery plan explains how to fix a damaged information system as quickly as possible. Replacing rather than repairing components is one route to fast recovery.

• Correction. Correcting the causes of damaged systems can prevent the problem from occurring again.

• Awareness and compliance. All organization members must be educated about the hazards and must comply with the security rules and regulations.

Difficulty: Hard Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology

7. What is a biometric control? Give two examples of commonly used biometric controls.

Answer: A biometric control is an automated method of verifying the identity of a person, based on physical or behavioral characteristics. Most biometric systems match some personal characteristic against a stored profile. The most common biometrics are: • Thumbprint or fingerprint. Each time a user wants access, a thumbprint or fingerprint (finger scan) is matched against a template containing the authorized person’s fingerprint to identify him or her.

• Retinal scan. A match is attempted between the pattern of the blood vessels in the back-ofthe-eye retina that is being scanned and a pre-stored picture of the retina.

Difficulty: Medium Section Ref: 5.4 Information Assurance and Risk Management AACSB: Use of Information Technology 8. Network security measures involve three types of defenses, which are referred to as layers.

Identify each of the 3 layers described in your text and provide an example of each.

• • •

First layer: Perimeter security to control access to the network. Examples are antivirus software and firewalls.

Second layer: Authentication to verify the identity of the person requesting access to the network. Examples are usernames and passwords.

Third layer: Authorization to control what authenticated users can do once they are given access to the network. Examples are permissions and directories.

Difficulty: Medium Section Ref: 5.5 Network Security AACSB: Use of Information Technology 9. Risk management involves estimating the “expected loss” associated with a particular security breach. Jim Jackson is the Chief Security Officer (CSO) at a global financial firm.

He recently attended a cybersecurity conference where he learned about a new type of cyberattack being used by Anonymous, a hacker group that tends to target global corporations.

Based on information from various industry reports, Jim estimates the following: Probability that Anonymous will target and attack his firm = .15 Probability that Anonymous’ attack will succeed = .10 Loss that will be incurred if attack is successful = $25 million Additional cost to defend against the attack = $300,000 Calculate the expected loss that Jim’s firm faces as a result of the Anonymous threat. Show your work, including the formula you use.

Answer: Risk-Management Analysis. Based on the simplified formula in the text, expected loss can be calculated as follows: Formula: Expected loss = P1 x P2 x L P1 = probability of attack P2 = probability of attack being successful L = loss occurring if attack is successful Expected loss = .15 X .10 X $25,000,000 = $375,000 Cost to defend does not affect expected loss.

Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Analytic skills

10. Implementing security programs raises many ethical issues. Identify and briefly describe two of these ethical issues.

Answer: Answers may vary. The following are listed in the textbook: • •

•

Privacy – sometimes ethical or legal regulations require employers to monitor network users in ways that some people feel violates their privacy. Imposing certain controls is seen by some as a violation of freedom of speech or other civil rights.

The doctrine of “respondeat superior” holds employers liable for the misconduct of their employees that occurs within the scope of their employment. However, because employees carry mobile devices that connect 24/7 to the work network, when does that liability begin and end?

Under the doctrine of duty of care, senior managers and directors have a fiduciary obligation to use reasonable care to protect the company’s business operations, but what is reasonable care? Litigation, or lawsuits, could result from failure to meet the company’s legal and regulatory duties.

Difficulty: Medium Section Ref: 5.7 Business Continuity and Auditing AACSB: Ethical understanding and reasoning abilities

Chapter 6: E-Commerce Models and Strategies Test Bank Multiple Choice 1. Google is a very prosperous, global e-business. Most of its revenue is generated from _____________. a. b. c. d.

Subscriptions Licensing fees Advertising User fees

Answer: C Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

2. While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a __________________ market. a. b. c. d.

Business to Government (B2G) Business to Business (B2B) Consumer to Business (C2B) Consumer to Consumer (C2C)

Answer: B Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

3. Google’s sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for ______________ violations. a. b. c. d.

Anti-trust Network security National security Environmental

Answer: A Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

4. Google gives away services for free in order to attract users it can then offer to its advertising clients. However, by giving away these services, Google looks as though they are trying to drive other companies out of business through a practice called _________________, offering goods and services at prices that don’t cover the costs of producing these services. a. b. c. d.

Price busting Discounting Predatory pricing Cornering the market

Answer: C Difficulty: Medium Section Ref: Opening Case: The Google Universe AACSB

5. A(n) ________________ is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks. a. b. c. d.

E-business E-commerce Brick-and-mortar Business-to-Business

Answer: A Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

6. ___________________ refers to the use of e-business processes for the specific purpose of buying or selling goods and services. a. b. c. d.

E-business E-commerce Brick-and-mortar Business-to-Business

Answer: B Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

7. ProWeb Designs specializes in developing websites for small and medium sized businesses.

They have an excellent reputation for servicing their client’s needs. ProWeb Designs is most likely part of the ____________________ marketplace. a. b. c. d.

Business-to-consumer Business-to-business Business-to-government Consumers-to-business

Answer: B Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

8. Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services.

Safety-net.com is most likely part of the ____________________ marketplace. a. b. c. d.

Business-to-consumer Business-to-business Business-to-government Consumers-to-business

Answer: C Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

9. Ryan Najmulski is a smart shopper. He uses Priceline.com to make his travel arrangements when planning a vacation. Using Priceline’s Website, Ryan enters information about his travel dates and the general location he’d like to stay in, along with his desired price.

Priceline then attempts to find a hotel that will accept Ryan’s bid. According to your textbook, Priceline is most likely part of a(n) ________________ marketplace. a. b. c. d.

Business-to-consumer Business-to-business Business-to-government Consumers-to-business

Answer: D Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

10. Carolynn Schmitz buys all of her college textbooks from Amazon.com. She likes the selection she finds on Amazon and uses the Amazon Prime service for free, 2-day shipping to make sure her books arrive before the beginning of the semester. In this example, Amazon is most likely part of a(n) ________________ marketplace. a. b. c. d.

Business-to-consumer Business-to-business Business-to-government Consumers-to-business

Answer: A Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

11. Megan Najmulski just renewed her New York State driver’s license online using the NYS Department of Motor Vehicles (DMV) Website. Drivers in New York can also register their cars and even pay traffic fines using the Website. This is an example of which of the following markets? a. b. c. d.

Business-to-government Government-to-business Citizens-to-Government Government-to-citizen

Answer: D Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB 12. A complex set of features and capabilities are considered essential in today’s competitive ebusiness environment. Which of the following was not listed in your textbook as an essential e-business or e-commerce capability? a. b. c. d.

Availability (e.g. “Always on”) Accuracy and quick response Competitive prices or fees Web analytics and Intelligence Software

Answer: C Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology 13. A complex set of features and capabilities are considered essential in today’s competitive ebusiness environment. Which of the following was not listed in your textbook as an essential e-business or e-commerce capability? a. b. c. d.

Integration of e-commerce systems with enterprise systems Security and PCI DSS compliance Building a competitive advantage Optimal search engine listing (e.g. easy to find using Google, Bing or some other search engine)

Answer: D Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

14. Which of the following was not cited by your textbook as a challenge associated with international e-commerce? a. b. c. d.

Difficulty converting price into the shopper’s native currency Maintaining an inventory of products that appeal to all cultures Differences in laws and regulations around the world Total cost of delivery is often too vague or incorrect

Answer: B Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

15. ______________________ describe the methods by which a company generates revenue. a. b. c. d.

Business models Business processes Process models Business analysis

Answer: A Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

16. Your textbook describes a number of e-business models. Which of the terms below best fits the following description: “Vendors ask partners to place logos or banner ads on their sites.

If customers click the logo, go to vendor’s site, and buy something, the vendor pays a commission to partners.” a. b. c. d.

Membership Freemium Subscription Affiliate marketing

Answer: D Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

17. Your textbook describes a number of e-business models. Which of the terms below best fits the following description: “Users are charged a periodic (e.g. monthly or annual) fee to use a service provided by the business.” a. b. c. d.

Utility model Freemium model Subscription model Affiliate marketing model

Answer: C Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

18. Your textbook describes a number of e-business models. Which of the terms below best fits the following description: “Products/services with basic features are distributed at no charge to gain exposure and market awareness. Users who want product versions with additional or more powerful features “upgrade” to the full product by paying a fee. ” a. b. c. d.

Utility model Freemium model Subscription model Affiliate marketing model

Answer: B Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

19. Your textbook describes a number of e-business models. Which of the terms below best fits the following description: “The businesses charges buyers for a product/service based on usage levels. For instance, your cell phone company may charge you based on how much data you download while accessing the Internet from your mobile device. ” a. b. c. d.

Utility model Freemium model Subscription model Affiliate marketing model

Answer: A Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB:

20. In ________________ auctions, a company or government agency that wants to buy items places a request for quote (RFQ) on its web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically. a. b. c. d.

Forward Inverse Reverse Business

Answer: C Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

21. eBay is a popular web site where private individuals can place objects for sale. Potential buyers bid on the items, with the item going to the highest bidder. This form of selling is called a(n) _______________ auction. a. b. c. d.

Forward Inverse Reverse Business

Answer: A Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

22. E-tailers face challenges that can interfere with the growth of their online marketing efforts.

For instance, regular brick and mortar distributors may feel threatened if a manufacturer who normally supplies their products attempts to sell products directly to consumers online. This is an example of __________________. a. b. c. d.

Managing order fulfillment and logistics Channel conflict Determining viability and risk Identifying appropriate business models

Answer: B Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

23. In the B2B _____________________ model, organizations sell their products or services to other organizations from their own private e-marketplace or from a third-party site. a. b. c. d.

E-Procurement Digital transaction market Efficient distribution marketplace Sell-side marketplace

Answer: D Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

24. E-sourcing refers to many different methods of _________________ . a. b. c. d.

Digital distribution Selling goods and services to consumers Procurement Order fulfillment

Answer: C Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

25. ______________________ refers to the re-engineered procurement process using e-business technologies and strategies. a. b. c. d.

E-procurement Enhanced procurement Strategic procurement Streamlined procurement

Answer: A Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

26. Which of the following are the two basic goals of e-procurement? a. b. c. d.

Improved product quality / Control costs Rapid order fulfillment / Control costs Control costs / Simplify processes Rapid order fulfillment / Simplify processes

Answer: C Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

27. Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve one industry (e.g., automotive, chemical), along the entire supply chain. a. b. c. d.

Limited Functional Horizontal Vertical

Answer: D Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

28. Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve many industries that use the same products or services (e.g. office supplies, cleaning materials). a. b. c. d.

Functional Industrial Horizontal Vertical

Answer: C Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

29. Needed services such as temporary help or extra space are traded on an as-needed basis on ______________ exchanges. a. b. c. d.

Functional Industrial Horizontal Vertical

Answer: A Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

30. __________________ involves the use of Internet technology to deliver information and public services to citizens, business partners, and suppliers of government entities, and people who work in the public sector. a. b. c. d.

E-Non-Profit E-public E-Citizen E-Government

Answer: D Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

31. Which of the following is not one of the three major categories of online government transactions discussed in your textbook? a. b. c. d.

Government-to-consumer (G2C) Government-to-business (G2B) Government-to-Non-Profits (G2NP) Government-to-government (G2G)

Answer: C Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

32. According to your textbook, the use of _________________ has already saved the government billions of dollars while at the same time, increasing government productivity and efficiency. a. b. c. d.

Fee-based services Cloud computing tools Agency Websites Forward auctions

Answer: B Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

33. In response to the increased use of smartphones and tablets by citizens, many state and local governments are developing ___________________ . a. b. c. d.

Mobile apps to curb drunk driving Mobile device recharging stations in public places Mobile public service advertisements Mobile voting apps

Answer: A Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

34. Implementation of e-commerce requires support services. Which of the following is not a major e-commerce support service described in your textbook? a. b. c. d.

E-infrastructure E-Communities E-Processes E-Search

Answer: D Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

35. The Internet introduced the concept of ________________, which enabled marketers and advertisers to communicate more effectively with consumers. For instance, consumers can click on an ad to obtain more information or send an email to ask a question. a. b. c. d.

Interactive marketing Direct marketing E-communications Bi-modal promotions

Answer: A Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

36. ________________________ is an umbrella term that describes practices associated with increasing the likelihood that a company will appear in search results when people conduct Internet searches using terms or phrases related to a product or company. a. b. c. d.

Search promotions Online advertising Search engine marketing Results oriented advertising

Answer: C Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

37. _________________ is a constantly evolving discipline—part science, part creative strategy—which attempts to achieve higher search rankings based on the design and content of a web site. a. b. c. d.

Paid search promotions (PSP) Marketing by Web design Pay per click advertising (PPC) Search engine optimization (SEO)

Answer: D Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

38. ________________ involves paying search engines to display links to a company’s Website alongside organic search results in areas designated for paid or sponsored ads. a. b. c. d.

Paid search promotions (PSP) Marketing by Web design Pay per click advertising (PPC) Search engine optimization (SEO)

Answer: C Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

39. Organic search results are determined by __________________________________. a. How much a company is willing to pay to have its site listed in response to a search on particular key words or phrases b. Web site design and the search engine’s algorithm for determining search result listings c. The number of people conducting searches using particular key words of phrases d. Largely uncontrollable factors Answer: B Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 40. Google’s Adwords is a program that companies use when implementing a(n) ____________________ advertising strategy. a. b. c. d.

Search Engine Optimization (SEO) Organic Search Pay per click (PPC) Online display ad

Answer: C Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

41. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, advertiser pays for the number of users exposed to the ad, typically expressed as cost per mille (CPM) or cost per thousand (CPT). Both terms base the ad charge on how many thousands of users are exposed to the ad. a. b. c. d.

Click Action Sale Impression

Answer: D Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

42. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on how many people take action by clicking on the ad, which often serves as a hyperlink to the advertiser’s Web site or a page promoting the advertiser’s brand. a. b. c. d.

Click Action Sale Impression

Answer: A Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

43. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on the number of people who perform some specific behavior such as watching a video, fill out a lead form, make a donation, and so on. a. b. c. d.

Click Action Sale Impression

Answer: B Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

44. Understanding the differences between various digital ad payment methods is important because each method has a different impact on determining the effectiveness of an advertising campaign as well as estimates of ____________________________ related to ad spending dollars. a. b. c. d.

Competitive impact Brand image enhancement Market share Return on Investment (ROI)

Answer: D Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

45. Search engine optimization (SEO) and Pay per click (PPC) advertising represent ___________ and __________ methods of promoting a business on search engines. a. b. c. d.

Illegal / legal Non-traditional / traditional Unpaid / paid Social / non-social

Answer: C Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

46. When purchasing products/services online, most consumers use some form of _______________________, such as PayPal. a. b. c. d.

Transaction credit service Electronic payment system Digital funds conveyance service Electronic currency

Answer: B Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

47. According to your textbook, the most common forms of online payment involve paying with _____________ or ____________________. a. b. c. d.

Credit cards / electronic bill payment Debit card / credit card Smart cards / micropayments e-Cash / smart cards

Answer: A Difficulty: Hard Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

48. A popular method of paying bills online is called ____________________, where money is transferred electronically from a payer’s account to the recipient’s. a. b. c. d.

Electronic checks Micropayments e-Cash (person to person) Electronic funds transfer (EFT)

Answer: D Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

49. With ______________________, buyers write a digital check to a merchant who then deposits it electronically in their bank account. a. b. c. d.

Electronic checks Micropayments e-Cash (person to person) Electronic funds transfer (EFT)

Answer: D Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

50. When using a(n) ______________ payment system, buyers create a special online account from which funds can be sent to merchants or individuals. PayPal is perhaps the most popular example of this method. a. b. c. d.

Electronic checks Micropayments e-Cash (person to person) Electronic funds transfer (EFT)

Answer: C Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

51. When consumers want to purchase products/services that are priced too low (i.e. less than $1) to be paid with credit cards, a(n) ______________________ payment system is often used. a. b. c. d.

Electronic checks Micropayments e-Cash (person to person) Electronic funds transfer (EFT)

Answer: C Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

52. Micropayments are often made using a _______________________. a. b. c. d.

Credit card Electronic check Smart card Cell phone

Answer: D Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

53. Allyson Grace uses MyCheckFree.com to pay her bills each month. Her cell phone, utility bills, car insurance bills and so on are sent electronically to MyCheckFree each month. The service pays the bills when they are due and transfers money from Allyson’s checking account to cover her expenses. Allyson is using the _____________________________ method of paying bills over the Internet. a. b. c. d.

Online banking Biller direct Bill consolidator Bill forwarding

Answer: C Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

54. Michael Wood logs into his Citibank checking account each week and uses their Website to pay any bills he has received. The money is transferred from his checking account to the merchants or individuals he wants to pay. Michael is using the ____________________ method of paying bills over the Internet. a. b. c. d.

Online banking Biller direct Bill consolidator Bill forwarding

Answer: A Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

55. Carolynn Schmitz pays all of her bills online. She has accounts set up with all the merchants she does business with. Each month when she receives a bill, she logs into the merchant’s Website and authorizes a transfer of funds from her checking account to the merchant.

Carolynn is using the _________________________ method of paying bills online.

a. b. c. d.

Online banking Biller direct Bill consolidator Bill forwarding

Answer: B Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

56. Your textbook listed a number of security requirements for conducting e-commerce. Which of the following was not one of the requirements listed? a. b. c. d.

Authentication Safety (fraud protection) Privacy Price guarantees

Answer: D Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

57. Your textbook listed a number of security requirements for conducting e-commerce. ________________ means that merchants are protected against customers unjustly claiming they did not place an order and customers protected from merchants unjustly claiming they did not receive payment. a. b. c. d.

Authentication Nonrepudiation Order fulfillment Claim denial

Answer: B Difficulty: Hard Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

58. Your textbook listed a number of security requirements for conducting e-commerce. _______________ helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing. a. b. c. d.

Authentication Nonrepudiation Integrity Privacy

Answer: A Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

59. Your textbook listed a number of security requirements for conducting e-commerce. _____________ is necessary to ensure that data and information transmitted in e-commerce, such as orders, replies to queries, and payment authorizations, not be accidentally or maliciously altered or destroyed during transmission. a. b. c. d.

Authentication Nonrepudiation Integrity Privacy

Answer: C Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

60. Your textbook listed a number of security requirements for conducting e-commerce. ____________ helps consumers feel secure when providing a credit card number over the Internet and helps them feel protected against criminals posing as sellers.

a. b. c. d.

Authentication Safety Integrity Nonrepudiation

Answer: B Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 61. Following a customer’s order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as ______________________. a. b. c. d.

e-Commerce infrastructure e-Payment Order fulfillment e-Billing

Answer: C Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

62. Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called _________________ , where a user’s Web history (e.g. sites visited) is stored in files called “Cookies” and used to monitor individuals’ movements on the Internet. a. b. c. d.

Online spying Digital detection Digital stalking Web tracking

Answer: D Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

63. One consequence of the growth of e-commerce is disintermediation which has resulted in significant ___________________ in some industries. a. b. c. d.

Price increases Job losses Growth of jobs in foreign countries Increase in product options and features

Answer: B Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

64. As a result of e-commerce, some industries have experienced ___________________. This occurs when new jobs are produced as a result of opportunities created by the growth of ecommerce. a. b. c. d.

Reinternetization Intermediation Reintermediation Disintermediation

Answer: C Difficulty: Hard Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

65. The biggest challenge for e-commerce sites that want to comply with state sales tax laws is ___________________. a. b. c. d.

Getting customers to pay the tax Determining a customer’s legal state of residence That regulations vary from state to state, creating a compliance nightmare.

Figuring out how to apply the law to international customers.

Answer: C Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

66. Which of the following best describes the current status of sales tax law and e-commerce? a. Consumers are only obligated to pay sales tax on e-commerce purchases if the merchant collects it at time of purchase. b. Consumers have the option to pay or not pay sales tax at the time they make an ecommerce purchase. c. Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state. d. Consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant.

Answer: D Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

67. When making an out-of-state purchase (as is often the case when buying online), consumers are usually obligated to pay a ________________, which is usually the same rate as a sales tax. However, most consumers ignore this requirement. a. b. c. d.

Use tax State import fee Compliance tax Interstate trade tax

Answer: A Difficulty: Medium Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

True/False 1. Google is a very prosperous, global e-business. Most of its revenue is generated from an advertising business model.

Answer: True Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy 2. Google is a very prosperous, global e-business. Most of its revenue is generated from a subscription business model.

Answer: False Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

3. While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a business to business market.

Answer: True Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: 4. Because of Google’s sheer size, power, and unusually large breadth of services it has come under the scrutiny of anti-trust regulators in multiple countries.

Answer: True Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy 5. Google’s sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for workplace safety violations.

Answer: False Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

6. By giving away many of its services, Google looks as though they are trying to drive other companies out of business through a practice called predatory pricing, offering goods and services at prices that don’t cover the costs of producing these services.

Answer: True Difficulty: Medium Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

7. An e-business is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Answer: True Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology 8. A brick-and-mortar company is one where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Answer: False Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology 9. ProWeb Designs specializes in developing websites for small and medium sized businesses.

They have an excellent reputation for servicing their client’s needs. ProWeb Designs is most likely part of the business-to-consumer marketplace.

Answer: False Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

10. Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services.

Safety-net.com is most likely part of the business-to-government marketplace.

Answer: True Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

11. Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services.

Safety-net.com is most likely part of the government-to-business marketplace.

Answer: False Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

12. Chegg sells and rents textbooks to college students. Chegg operates in the business-toconsumer marketplace.

Answer: True Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

13. Chegg sells and rents textbooks to college students. Chegg operates in the business-to-notfor-profit marketplace.

Answer: False Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

14. A business model describes the methods by which a company generates revenue.

Answer: True Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

15. Your textbook describes a number of e-business models. An affiliate marketing model is one where vendors ask partners to place logos or banner ads on their sites. If customers click the logo, go to vendor’s site, and buy something, the vendor pays a commission to partners.

Answer: True Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

16. Your textbook describes a number of e-business models. A membership model is one where vendors ask partners to place logos or banner ads on their sites. If customers click the logo, go to vendor’s site, and buy something, the vendor pays a commission to partners.

Answer: False Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

17. Your textbook describes a number of e-business models. A subscription model is one where users are charged a periodic (e.g. monthly or annual) fee to use a service provided by the business.

Answer: True Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

18. Your textbook describes a number of e-business models. A freemium model is one where users are charged a periodic (e.g. monthly or annual) fee to use a service provided by the business.

Answer: False Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

19. Your textbook describes a number of e-business models. A freemium model is one where products/services with basic features are distributed at no charge to gain exposure and market awareness. Users who want product versions with additional or more powerful features upgrade to the full product by paying a fee.

Answer: True Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

20. Your textbook describes a number of e-business models. An affiliate marketing model is one where products/services with basic features are distributed at no charge to gain exposure and market awareness. Users who want product versions with additional or more powerful features upgrade to the full product by paying a fee.

Answer: False Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

21. In reverse auctions, a company or government agency that wants to buy items places a request for quote (RFQ) on its web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically.

Answer: True Difficulty: Easy Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB: Use of information technology

22. Inverse auctions occur when a company or government agency that wants to buy items places a request for quote (RFQ) on its Web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically.

Answer: False Difficulty: Easy Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB: Use of information technology

23. eBay is a popular Web site where private individuals can place objects for sale. Potential buyers bid on the items, with the item going to the highest bidder. This form of selling is called a forward auction.

Answer: True Difficulty: Easy Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

24. Regular brick and mortar distributors may feel threatened if a manufacturer who normally supplies their products attempts to sell products directly to consumers online. This is an example of channel conflict.

Answer: True Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

25. E-sourcing refers to many different methods of procurement.

Answer: True Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

26. E-sourcing refers to many different methods of selling goods and services to consumers.

Answer: False Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

27. E-procurement refers to the re-engineered procurement process using e-business technologies and strategies.

Answer: True Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

28. Enhanced procurement is the term used to describe the re-engineered procurement process using e-business technologies and strategies.

Answer: False Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

29. The two basic goals of e-procurement are a) controlling costs and b) simplifying processes.

Answer: True Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

30. The two basic goals of e-procurement are a) improved product quality and b) rapid order fulfillment.

Answer: False Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

31. Exchanges are sites where many buyers and sellers conduct business transactions. Vertical exchanges serve one industry (e.g., automotive, chemical), along the entire supply chain.

Answer: True Difficulty: Easy Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

32. Exchanges are sites where many buyers and sellers conduct business transactions. Limited exchanges serve one industry (e.g., automotive, chemical), along the entire supply chain.

Answer: False Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

33. Exchanges are sites where many buyers and sellers conduct business transactions.

Horizontal exchanges serve many industries that use the same products or services (e.g. office supplies, cleaning materials).

Answer: True Difficulty: Easy Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

34. Exchanges are sites where many buyers and sellers conduct business transactions. Industrial exchanges serve many industries that use the same products or services (e.g. office supplies, cleaning materials).

Answer: False Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

35. E-government involves the use of Internet technology to deliver information and public services to citizens, business partners, and suppliers of government entities, and people who work in the public sector.

Answer: True Difficulty: Easy Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

36. E-nonprofit involves the use of Internet technology to deliver information and public services to citizens, business partners, and suppliers of government entities, and people who work in the public sector.

Answer: False Difficulty: Easy Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

37. According to your textbook, the use of cloud based computing tools has already saved the government billions of dollars while at the same time increasing government productivity and efficiency.

Answer: True Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

38. The Internet introduced the concept of interactive marketing, which enabled marketers and advertisers to communicate more effectively with consumers. For instance, consumers can click on an ad to obtain more information or send an email to ask a question.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

39. Search engine marketing is an umbrella term that describes practices associated with increasing the likelihood that a company will appear in search results when people conduct Internet searches using terms or phrases related to a product or company.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

40. Search promotions is an umbrella term that describes practices associated with increasing the likelihood that a company will appear in search results when people conduct Internet searches using terms or phrases related to a product or company.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

41. Search engine optimization (SEO) is a constantly evolving discipline—part science, part creative strategy—which attempts to achieve higher search rankings based on the design and content of a Web site.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

42. Paid search promotions (PSP) is a constantly evolving discipline—part science, part creative strategy—which attempts to achieve higher search rankings based on the design and content of a Web site.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 43. Pay per click (PPC) involves paying search engines to display links to a company’s Website alongside organic search results in areas designated for paid or sponsored ads.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

44. Search engine optimization (SEO) involves paying search engines to display links to a company’s Website alongside organic search results in areas designated for paid or sponsored ads.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 45. Organic search results are determined by Web site design and the search engine’s algorithm for determining search result listings.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

46. Organic search results are determined by how much a company is willing to pay to have its site listed in response to a search on particular key words or phrases.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

47. Rates for digital advertising can be determined in a number of ways. Using the Cost per Impression method, the advertiser pays for the number of users exposed to the ad, typically expressed as cost per mille (CPM) or cost per thousand (CPT). Both terms base the ad charge on how many thousands of users are exposed to the ad.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

48. Rates for digital advertising can be determined in a number of ways. Using the Cost per Click method, the advertiser pays based on how many people take actions by clicking on the ad, which often serves as a hyperlink to the advertiser’s Web site or a page promoting the advertiser’s brand.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

49. Rates for digital advertising can be determined in a number of ways. Using the Cost per View method, the advertiser pays based on how many people take actions by clicking on the ad, which often serves as a hyperlink to the advertiser’s web site or a page promoting the advertiser’s brand.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

50. Rates for digital advertising can be determined in a number of ways. Using the Cost per Action method, the advertiser pays based on the number of people who perform some specific behavior such as watching a video, fill out a lead form, make a donation, and so on.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

51. According to your textbook, the most common forms of online payment involve paying with credit card or electronic bill payment.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

52. A popular method of paying bills online is called computer cash, where money is transferred electronically from a payer’s account to the recipient’s.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

53. When using an e-cash (person to person) payment system, buyers create a special online account from which funds can be sent to merchants or individuals. PayPal is perhaps the most popular example of this method.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

54. When consumers want to purchase products/services that are priced too low (i.e. less than $1) to be paid with credit cards, mini-transfer payment system is often used.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

55. Micropayments are often made using a cell phone.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

56. Online micropayments are often made using a credit card.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

57. Your textbook listed a number of security requirements for conducting e-commerce.

Nonrepudiation means that merchants are protected against customers unjustly claiming they did not place an order and customers are protected from merchants unjustly claiming they did not receive payment.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

58. Your textbook listed a number of security requirements for conducting e-commerce.

Authentication helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

59. Your textbook listed a number of security requirements for conducting e-commerce.

Integrity helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

60. Your textbook listed a number of security requirements for conducting e-commerce.

Integrity is necessary to ensure that data and information transmitted in e-commerce, such as orders, replies to queries, and payment authorizations, not be accidentally or maliciously altered or destroyed during transmission.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 61. Following a customer’s order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as order fulfillment.

Answer: True Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 62. Following a customer’s order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as e-Payment.

Answer: False Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

63. Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called web tracking, where a user’s Web history (e.g. sites visited) is stored in files called “Cookies” and used to monitor individuals’ movements on the Internet.

Answer: True Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

64. Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called digital stalking, where a user’s Web history (e.g. sites visited) is stored in files called “track bots” and used to monitor individuals’ movements on the Internet.

Answer: False Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

65. The biggest challenge for e-commerce sites that want to comply with state sales tax laws is that regulations vary from state to state, creating a compliance nightmare.

Answer: True Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

66. The biggest challenge for e-commerce sites that want to comply with state sales tax laws is determining a customer’s legal state of residence.

Answer: False Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

67. Consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant.

Answer: True Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

68. Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state.

Answer: False Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

Short Answer 1. Google is a very prosperous, global e-business. Most of its revenue is generated from a(n) _____________ business model.

Answer: Advertising Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

2. While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a __________________ market.

Answer: Business to business Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: 3. Google’s sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for violations of _______________________ law.

Answer: Anti-trust Difficulty: Easy Section Ref: Opening Case: The Google Universe AACSB: Dynamics of the global economy

4. Google gives away services for free in order to attract users it can then offer to its advertising clients. However, by giving away these services, Google looks as though they are trying to drive other companies out of business through a practice called _________________, offering goods and services at prices that don’t cover the costs of producing these services.

Answer: Predatory pricing Difficulty: Medium Section Ref: Opening Case: The Google Universe AACSB

5. A(n) ________________ is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Answer: E-business Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

6. ___________________ refers to the use of e-business processes for the specific purpose of buying or selling goods and services (usually online).

Answer: E-commerce Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

7. ProWeb Designs specializes in developing websites for small and medium sized businesses.

They have an excellent reputation for servicing their client’s needs. ProWeb Designs is most likely part of the ____________________ marketplace.

Answer: Business-to-business (B2B) Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

8. Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services.

Safety-net.com is most likely part of the ____________________ marketplace.

Answer: Business-to-government Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

9. Ryan Najmulski is a smart shopper. He uses Priceline.com to make his travel arrangements when planning a vacation. Using Priceline’s Website, Ryan enters information about his travel dates and the general location he’d like to stay in, along with his desired price.

Priceline then attempts to find a hotel that will accept Ryan’s bid. According to your textbook, Priceline is most likely part of a(n) ________________ marketplace.

Answer: Consumers-to-business Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

10. Carolynn Schmitz buys all of her college textbooks from Amazon.com. She likes the selection she finds on Amazon and uses the Amazon Prime service for free, 2-day shipping to make sure her books arrive before the beginning of the semester. In this example, Amazon is most likely part of a(n) ________________ marketplace.

Answer: Business-to-consumer Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB 11. Megan Najmulski just renewed her New York State driver’s license online using the NYS Department of Motor Vehicles (DMV) Website. Drivers in New York can also register their cars and even pay traffic fines using the Website. This is an example of the _________________ marketplace.

Answer: Government-to-citizen Difficulty: Easy Section Ref: 6.1 E-Business Challenges and Strategies AACSB

12. A ___________________ model describes the methods by which a company generates revenue.

Answer: Business Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

13. A complex set of features and capabilities are considered essential in today’s competitive ebusiness environment. _______________ refers to the fact that e-businesses need servers that are “always on” to maintain access to business critical apps.

Answer: Availability Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology 14. A complex set of features and capabilities are considered essential in today’s competitive ebusiness environment. Businesses use _____________ to track Web site activities, such as what was clicked, how long a visitor viewed a page, the IP address of the visitor’s computer, and number of items put into the shopping cart.

Answer: Web analytics (or Web analytics and intelligence software) Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

15. Your textbook describes a number of e-business models. With the _____________ model, vendors ask partners to place logos or banner ads on their sites. If customers click the logo, go to vendor’s site, and buy something, the vendor pays a commission to partners.

Answer: Affiliate marketing Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

16. Your textbook describes a number of e-business models. With the ____________ model, users are charged a periodic (e.g. monthly or annual) fee to use a service provided by the business.

Answer: Subscription Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

17. Your textbook describes a number of e-business models. With the _____________ model, products/services with basic features are distributed at no charge to gain exposure and market awareness. Users who want product versions with additional or more powerful features upgrade to the full product by paying a fee.

Answer: Freemium Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

18. Your textbook describes a number of e-business models. With the ____________ model, businesses charge buyers for a product/service based on usage levels. For instance, your cell phone company may charge you based on how much data you download while accessing the Internet from your mobile device.

Answer: Utility Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

19. In ________________ auctions, a company or government agency that wants to buy items places a request for quote (RFQ) on its Web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically.

Answer: Reverse Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

20. eBay is a popular Web site where private individuals can place objects for sale. Potential buyers bid on the items, with the item going to the highest bidder. This form of selling is called a(n) _______________ auction.

Answer: Forward Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

21. E-tailers face challenges that can interfere with the growth of their online marketing efforts.

For instance, regular brick and mortar distributors may feel threatened if a manufacturer who normally supplies their products attempts to sell products directly to consumers online. This is an example of _____________ conflict.

Answer: Channel Difficulty: Medium Section Ref: 6.2 Business-to-consumer (B2C) e-Commerce AACSB:

22. E-sourcing refers to many different methods of _________________.

Answer: Procurement Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

23. ______________________ refers to the re-engineered procurement process using e-business technologies and strategies.

Answer: E-procurement Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

24. The two basic goals of e-procurement described in your text are ______________________ and _____________________.

Answer: Controlling costs / Simplify processes Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

25. Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve one industry (e.g., automotive, chemical) along the entire supply chain.

Answer: Vertical Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

26. Exchanges are sites where many buyers and sellers conduct business transactions. ___________ exchanges serve many industries that use the same products or services (e.g. office supplies, cleaning materials).

Answer: Horizontal Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

27. Needed services such as temporary help or extra space are traded on an as-needed basis on ______________ exchanges.

Answer: Functional Difficulty: Medium Section Ref: 6.3 Business-to-business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

28. __________________ involves the use of Internet technology to deliver information and public services to citizens, business partners, and suppliers of government entities, and people who work in the public sector.

Answer: E-government Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

29. Your textbook describes three different categories of E-government transactions: Government-to-Consumer, Government-to-_______________ and Government-to______________.

Answer: Business / Government Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

30. According to your textbook, the use of _________________ has already saved the government billions of dollars while at the same time increasing government productivity and efficiency.

Answer: Cloud computing tools or Cloud computing Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

31. In response to the increased use of smartphones and tablets by citizens, many state and local governments are developing ___________________ to curb drunk driving.

Answer: mobile apps Difficulty: Medium Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

32. _________________marketing is an umbrella term that describes practices associated with increasing the likelihood that a company will appear in search results when people conduct Internet searches using terms or phrases related to a product or company.

Answer: Search engine Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

33. _________________ is a constantly evolving discipline—part science, part creative strategy—which attempts to achieve higher search rankings based on the design and content of a Web site.

Answer: Search engine optimization (SEO) Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

34. ________________ involves paying search engines to display links to a company’s Website alongside organic search results in areas designated for paid or sponsored ads.

Answer: Pay per click advertising (PPC) Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 35. Organic search results are determined by ___________________ and the search engine’s algorithm for determining search result listings.

Answer: Web site design Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology 36. Google’s Adwords is a program that companies use when implementing a(n) ____________________ advertising strategy.

Answer: Pay per click (PPC) Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

37. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays for the number of users exposed to the ad, typically expressed as cost per mille (CPM) or cost per thousand (CPT). Both terms base the ad charge on how many thousands of users are exposed to the ad.

Answer: Impression Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

38. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on how many people take actions by clicking on the ad, which often serves as a hyperlink to the advertiser’s Web site or a page promoting the advertiser’s brand.

Answer: Click Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

39. Rates for digital advertising can be determined in a number of ways. Using the Cost per _________________ method, the advertiser pays based on the number of people who perform some specific behavior such as watching a video, fill out a lead form, make a donation, and so on.

Answer: Action Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

40. Search engine optimization (SEO) and Pay per click (PPC) advertising represent ___________ and __________ methods of promoting a business on search engines.

Answer: Unpaid (or organic) / paid Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

41. A popular method of paying bills online is called ____________________, where money is transferred electronically from a payer’s account to the recipient’s.

Answer: Electronic funds transfer (EFT) Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

42. When consumers want to purchase products/services that are priced too low (i.e. less than $1) to be paid with credit cards, a(n) ______________________ system is often used.

Answer: Micropayments Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

43. Allyson Grace uses MyCheckFree.com to pay her bills each month. Her cell phone, utility bills, car insurance bills and so on are sent electronically to MyCheckFree each month. The service pays the bills when they are due and transfers money from Allyson’s checking account to cover her expenses. Allyson is using the _____________________________ method of paying bills over the Internet.

Answer: Bill consolidator Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

44. Michael Wood logs into his Citibank checking account each week and uses their Website to pay any bills he has received. The money is transferred from his checking account to the merchants or individuals he wants to pay. Michael is using the ____________________ method of paying bills over the Internet.

Answer: Online banking Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

45. Carolynn Schmitz pays all of her bills online. She has accounts set up with all the merchants she does business with. Each month when she receives a bill, she logs into the merchant’s Website and authorizes a transfer of funds from her checking account to the merchant.

Carolynn is using the _________________________ method of paying bills online.

Answer: Biller direct Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

46. Your textbook listed a number of security requirements for conducting e-commerce. ________________ means that merchants are protected against customers unjustly claiming they did not place an order and customers protected from merchants unjustly claiming they did not receive payment.

Answer: Nonrepudiation Difficulty: Hard Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

47. Your textbook listed a number of security requirements for conducting e-commerce. _______________ helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

Answer: Authentication Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

48. Your textbook listed a number of security requirements for conducting e-commerce. _____________ is necessary to ensure that data and information transmitted in e-commerce, such as orders, replies to queries, and payment authorizations, not be accidentally or maliciously altered or destroyed during transmission.

Answer: Integrity Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

49. Your textbook listed a number of security requirements for conducting e-commerce. ____________ helps consumers feel secure when providing a credit card number over the Internet and helps them feel protected against criminals posing as sellers.

Answer: Safety Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

50. Following a customer’s order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as ______________________.

Answer: Order fulfillment Difficulty: Easy Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

51. Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called _________________, where a user’s Web history (e.g. sites visited) is stored in files called “Cookies” and used to monitor individuals’ movements on the Internet.

Answer: Web tracking Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

52. One consequence of the growth of e-commerce is disintermediation ,which has resulted in significant loss of ___________________ in some industries.

Answer: Jobs Difficulty: Easy Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

53. As a result of e-commerce, some industries have experienced ___________________. This occurs when new jobs are produced as a result of opportunities created by the growth of ecommerce.

Answer: Reintermediation Difficulty: Hard Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

54. Consumers in all but four states are legally obligated to pay a ___________ tax related to online purchases, even if it is not collected by the online merchant.

Answer: Sales or Use Difficulty: Hard Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Use of information technology

Essay Questions 1. List and briefly define each of the 5 types of E-business markets described in your textbook.

Answer: ▪ Business-to-business (B2B). In B2B transactions, both the sellers and the buyers are business

organizations.

▪ Business-to-consumers (B2C). In B2C, the sellers are organizations, and the buyers are

individuals.

▪ Consumers-to-business (C2B). In C2B, consumers make known a particular need for a

product or service, and then suppliers compete to provide that product or service at the requested price.

▪ Government-to-citizens (G2C) and others. In this case, a government agency provides

services to its citizens via e-commerce technologies. Government units can engage in ecommerce with other government units—government-to-government (G2G) or with businesses—government-to-business (G2B).

▪ Business-to-government (B2G). In B2G markets, businesses sell goods and services to

government agencies.

Students may also mention Mobile commerce (m-commerce). Any of the above markets can take on an additional characteristic if the buyer and/or seller is using a mobile, handheld device.

Transactions and activities are conducted using wireless networks and mobile apps.

Difficulty: Medium Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

2. What are reverse auctions and RFQs? Explain how they work and their purpose. Why do governments and corporations frequently mandate the RFQ approach for procurements?

Answer: In reverse auctions, a company or government agency that wants to buy items places a request for quote (RFQ) on its Web site or third-party bidding marketplace. Once RFQs are posted, sellers or pre-approved suppliers submit bids electronically. Reverse auctions can attract large pools of willing sellers, who may be manufacturers, distributors, or retailers. The bids are routed via the buyer’s intranet to the engineering and finance departments for evaluation. Clarifications are made via e-mail, and the winner is notified electronically.

The reverse auction is the most common auction model for large quantity purchases or high priced items. Everything else being equal, the lowest-price bidder wins the auction.

Governments and large corporations frequently mandate this RFQ approach for procurements because competition among sellers leads to considerable savings.

Difficulty: Hard Section Ref: 6.1 E-Business Challenges and Strategies AACSB: Use of information technology

3. What are the two basic goals of e-procurement? Explain each goal.

Answer: ▪ Control costs: The first goal is to control corporate spending. Organizations want to spend

intelligently for procurement activities to maximize the value of their spending, that is, insure that money spent to procure items results in procuring the right products at the best value.

Corporate e-procurement constitutes a substantial portion of an organization’s operational spending.

▪ Simplify processes: The second goal is to streamline the procurement process to make it efficient. Inefficiencies in the procurement process tend to introduce delays in ordering and receiving items, and tax internal resources.

Difficulty: Medium Section Ref: 6.3 Business-to-Business (B2B) e-Commerce and e-Procurement AACSB: Use of information technology

4. List and briefly describe the 3 major categories of E-Government transactions.

Answer: ▪ Government-to-consumer (G2C), government agencies increasingly are using the Internet

to provide services to citizens. An example is electronic benefits transfer (EBT), in which governments transfer benefits, such as Social Security and pension payments, directly to recipients’ bank accounts or to smart cards.

▪ Government-to-government (G2G) includes intra-government e-commerce (transactions between different governments) as well as services among different governmental agencies.

▪ Government-to-business (G2B). In G2B (or B2G), governments use the Internet to sell to or buy from businesses. For example, electronic tendering systems, using reverse auctions, are often mandatory to ensure the best price and quality for government procurement of goods and services.

Difficulty: Easy Section Ref: 6.4 E-Government and Public Sector IT Trends AACSB: Use of information technology

5. Briefly define and describe the 2 major forms of search engine marketing.

Answer: ▪ Search Engine Optimization (SEO) is a set of practices designed to increase the chances that

a company’s Web site will appear in organic search results. Organic search results come from a company designing or optimizing its Web site to appeal to the various algorithms used by search engines to determine the order of listings in search results. Companies that practice SEO attempt to have their company listed towards the top of a search result when a consumer uses a search engine with particular key words or phrases.

▪ Pay per click (PPC) advertising involves paying search engines to display PPC listings alongside organic search results in areas designated for paid or sponsored ads. Most search engines clearly identify organic vs. PPC search listings through shading, labels, or other identifiers. Businesses pay for the search terms they want to influence where their PPC ads appear. Advertisers can manage other aspects of their campaigns by setting budgets and identifying characteristics that further target the kind of customer they want to see their ads.

PPC advertising costs more, but is more predictable and manageable than SEO. Difficulty: Hard Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

6. Define the three ways of paying for digital advertising that were discussed in your textbook.

Answer: ▪ Cost Per Impression—advertiser pays for the number of users exposed to the ad, typically

expressed as cost per mille (CPM) or cost per thousand (CPT). Both terms base the ad charge on how many thousands of users are exposed to the ad.

▪ Cost per click (or pay per click—PPC)—advertiser pays based on how many people take actions by clicking on the ad, which often services as a hyperlink to the advertiser’s Web site or a page promoting the advertiser’s brand.

▪ Cost per Action (CPA)—similar to cost per click, but here the qualifying action might be to watch a video, fill out a lead form, purchase a product, visit a Web site, make a donation, and so on.

Difficulty: Medium Section Ref: 6.5 E-Commerce Support Services and Digital Marketing Communications AACSB: Use of information technology

7. Explain what web tracking is and why it concerns some Internet users.

Answer: Web tracking is the practice of monitoring users’ movements on the Internet by reading small tracking files called “cookies” that are stored on individual’s computers. Companies use the information to learn about consumer behavior and for targeting ads based on consumer interests.

But many people are uncomfortable with being tracked without permission and install programs designed to either delete the cookie files or at least give the user some control over the files. It is considered by many to be an invasion of privacy. Many browsers now include features that limit monitoring and tracking of online activity.

Difficulty: Medium Section Ref: 6.6 E-Business Ethics and Legal Issues AACSB: Ethical understanding and reasoning abilities

Chapter 7: Mobile Technologies and Commerce Test Bank Multiple Choice 1. Whenever Kellie Wolf shops at local stores, she uses her smartphone to scan the barcodes of products so that she can compare prices from other stores as well as online shopping sites.

Her smartphone app also allows her to check product reviews and get product information.

Using a mobile device as a shopping aid in this manner is called: a. b. c. d.

Mobility retail Showrooming Barcoding Snap coding

Answer: B Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

2. While many retailers are frustrated by the phenomenon of shoppers using smartphones to comparison shop in their stores, Macy’s “Backstage Pass Program” actually encourages users to access product information and promotional videos using ______________________. a. b. c. d.

QR codes and short message service (SMS) Email Social Media A mobile Macy’s app

Answer: A Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

3. Throughout Macy’s stores, special displays encourage shoppers to view promotional videos and access product information using their smart phones or other mobile devices. This type of in-store promotion is called a(n) _________________________. a. b. c. d.

Integrated retailing strategy Dual modality retailing strategy Mobile display strategy Visual retailing strategy

Answer: C Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 4. Another key mobile strategy being used by Macy’s and other retailers across the country is to grow their SMS database by offering customers coupons and other promotions via _______________. a. b. c. d.

Email YouTube videos Dedicated retail apps Text messages

Answer: D Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 5. To take advantage of the growth of mobile device use, many retailers like Macy’s are using Mobile Check-in Strategies and partnering with companies like ______________________ that use mobile apps to alert retailers when a customer is in their store. a. b. c. d.

Google and YouTube Twitter Foursquare and Shopkick Verizon and AT&T

Answer: C Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

6. Customers can pay for products at Macy’s using Google Wallet, a mobile payment app. At the register, customers simply tap their phones on a(n) _______________________ device in order to transfer funds to Macy’s. a. b. c. d.

Augmented reality Near field communications (NFC) PayPal ATM

Answer: B Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

7. Which of the following is not a type of mobile computing device described in your textbook? a. b. c. d.

Laptop computer Notebook computer Tablet computer Backpack computer

Answer: D Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology 8. Google’s Project Glass aims to make it possible for people to access network based applications using a device that is similar to _________________________. a. b. c. d.

A set of headphones A pair of glasses A wristwatch A ceramic slate or tablet

Answer: B Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

9. Which of the following is not one of the popular mobile operating systems described in your textbook? a. b. c. d.

Android OS iOS (Apple) Path OS Symbian OS

Answer: C Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

10. As of 2012, which of the following is the most popular mobile operating system globally with approximately 46% market share? a. b. c. d.

Android OS iOS (Apple) Path OS Symbian OS

Answer: A Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

11. Increasingly, city governments, airports, train stations, restaurants, cafes and owners of other public areas are making access to ________________ available to the public for free. a. b. c. d.

3G and 4G networks Wired LANs Telecommunications networks Wi-Fi hotspots

Answer: D Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

12. Which of the following is not considered one of the three technological foundations of mobile computing? a. b. c. d.

Mobile devices Mobile operating systems Mobile software Mobile networks

Answer: C Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

13. Which of the following explains why it is much more challenging to develop websites and software apps for the mobile market compared to the traditional personal computer market? a. Mobile consumers are much more demanding and have higher standards for quality. b. The greater number of mobile devices and operating systems makes it hard to create websites and apps that work well with all device/OS combinations. c. It’s hard to predict if the mobile market will even exist a few years from now. d. Mobile OSs are dramatically more complicated than traditional PC OSs. Answer: B Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

14. Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using FourSquare’s mobile app is an example of ______________________ (choose the most specific answer). a. b. c. d.

Mobile Commerce Mobile eCommerce Mobile Retailing Mobile Marketing

Answer: C Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

15. The buying or selling of goods and services using a wireless, handheld device such as a cell phone or tablet (slate) computer is called ______________________ (choose the most specific answer). a. b. c. d.

Mobile Commerce Mobile eCommerce Mobile Retailing Mobile Marketing

Answer: A Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

16. Ordering a pair of shoes from Zappos.com using a mobile app, or purchasing music from iTunes from your iPod is an example of ______________________ (choose the most specific answer). a. b. c. d.

Mobile Commerce Mobile eCommerce Mobile Retailing Mobile Marketing

Answer: A Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

17. Sending special offers to customers who have opted in to receive discounts via SMS text message or advertising a brand on a popular mobile game app like Angry Birds is an example of ___________________________ (choose the most specific answer). a. b. c. d.

Mobile Commerce Mobile eCommerce Mobile Retailing Mobile Marketing

Answer: D Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

18. Which of the following is not one of the factors listed in your textbook as a reason why consumers and businesses have been slow to embrace mobile commerce? a. b. c. d.

Concerns about privacy and security Consumers find mobile devices too complicated to use for commerce Limited and inconvenient mobile payment options Lack of technological standardization (devices, OSs, browsers, etc.)

Answer: B Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

19. Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recommends an integrated strategy called _________________ retailing. a. b. c. d.

Integrated market Multi-channel Omni-channel Multi-tier

Answer: C Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB:

20. Retailers who employ an Omni-channel strategy create a seamless brand experience for customers who might have brand contacts (e.g. advertising, sales support, product information, purchase, returns, etc.) through ________________________. a. b. c. d.

Multiple channels The Internet A centralized call center In-store experience

Answer: A Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB:

21. When customers use a brand’s mobile app to shop for products, their shopping experience can be customized based on the company’s knowledge of ______________, ________________, payment methods, and even location. a. b. c. d.

Previous purchases, product preferences Privacy concerns, government regulations Brand attitudes, political preferences Social media, email preferences

Answer: A Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology 22. The picture below is an example of a(n) _______________________.

a. b. c. d.

Mobile bar code Augmented reality code QR (Quick Response) code Mobile Visual Search code

Answer: C Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

23. Graphic images like the one below are typically used for _______________________.

a. b. c. d.

Providing links to online content Innovative brand logos Generating augmented reality images Reprogramming mobile devices

Answer: A Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

24. __________________ technology is emerging as an alternative to __________________. a. b. c. d.

Mobile Visual Search (MVS) / QR codes Mobile Visual Search (MVS) / Augmented reality Augmented reality / QR codes Augmented reality / Mobile Visual Search (MVS)

Answer: A Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

25. Which of the following was not a sector of the mobile market place discussed in your textbook? a. b. c. d.

Mobile entertainment Mobile hotel and travel services Mobile social networking Mobile legal services

Answer: D Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

26. The Foursquare app makes use of the mobile device’s GPS system to determine the user’s location. Foursquare can use this information to target consumers with timely and relevant promotional messages. This is an example of ____________________ marketing. a. b. c. d.

Geographic Location-based Augmented reality Brand app

Answer: B Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

27. _____________________ apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building. a. b. c. d.

Augmented Reality (AR) Mobile Visual Search Location based marketing Mobile media

Answer: A Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

28. As mobile commerce grows, there is a greater demand for __________________ that make transactions from smartphones and other mobile devices convenient, safe, and secure. a. b. c. d.

Websites Debit cards Credit cards Payment systems

Answer: D Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

29. Using Google Wallet, consumers can pay for goods in stores. At check out, mobile users simply pass or tap their phone on a merchant terminal and payment is transferred. Users receive an SMS text message confirmation. The Google Wallet and similar payment systems are based on _________________________ technology. a. b. c. d.

Bar code QR code Augmented reality Near field communications (NFC)

Answer: D Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

30. Starbucks allows customers to pay with their mobile devices. Customers create an account with Starbucks as part of the retailer’s loyalty program, and transfer money to a pre-paid account. Upon check out, users activate the Starbucks app, which creates a _____________ that can be scanned at check out. a. b. c. d.

Seven digit numerical code Bar code or QR code Credit voucher Password

Answer: B Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

31. Mobile payment systems employ a range of technologies. Which of the following was not a technology described in your textbook that is being used for mobile payment? a. b. c. d.

Near field communications (NFC) SMS (text messaging) Bar codes or QR codes Augmented reality

Answer: D Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

32. One advantage of many mobile payment systems over traditional credit card systems is the ability to handle ___________________, or transactions involving relatively small sums of money. a. b. c. d.

Mini-transfers Micro-credits Micropayments Piece meal payments

Answer: C Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

33. The ability to make ______________________ allows individuals to use their mobile devices to do things like purchase a beverage from a vending machine or make a payment to a municipal parking meter. a. b. c. d.

Mini-transfer exchanges Micropayments Micro-credit charges Mini-credit transactions

Answer: B Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

34. In addition to paying bills through wireline banking or from ATMs, a number of companies are now providing their customers with the option of paying bills directly from a cell phone.

This trend is proving particularly attractive to mobile users in ______________________. a. b. c. d.

Europe North America Developing countries Senior citizen communities

Answer: C Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Dynamics of the global economy

35. ____________________ is generally defined as carrying out banking transactions and other related activities via mobile devices. The services offered include bill payments and money transfers, account administration and check book requests, balance inquiries and statements of account, interest and exchange rates, and so on. a. b. c. d.

Mobile economics Mobile finance Mobile business Mobile banking

Answer: D Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

36. Many businesses use _______________, an easy to remember 5 or 6 digit number, instead of telephone numbers when creating text message (SMS) services. For example, voting on the popular television show American Idol is done using this approach. a. b. c. d.

SMS code Short code Text message service (TMS) code Service ID

Answer: B Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

37. Your textbook identified a number of mobile banking security risks. Duplicating the Electronic Serial Number (ESM) of one phone and using it in a second phone is called ______________. This allows the perpetrator to have calls and other transactions billed to the original phone. a. b. c. d.

Phishing Smishing Cloning Vishing

Answer: C Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

38. Your textbook identified a number of mobile banking security risks. Using a fraudulent communication, such as an e-mail, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________. a. b. c. d.

Phishing Smishing Cloning Vishing

Answer: A Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

39. Your textbook identified a number of mobile banking security risks. Using a fraudulent text message (SMS), to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________ . a. b. c. d.

Phishing Smishing Cloning Vishing

Answer: B Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

40. Your textbook identified a number of mobile banking security risks. Using a fraudulent voice or voice mail message, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________. a. b. c. d.

Phishing Smishing Cloning Vishing

Answer: D Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

41. ________________________ refers to the delivery of advertisements, products, or services to customers whose locations are known at a given time. a. b. c. d.

Geo-marketing E-location Location-based commerce (l-commerce) E-commerce

Answer: C Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

42. L-commerce services revolve around five key concepts. Which of the following is not one of the key concepts listed in your textbook? a. Navigation. Plotting a route from one location to another b. Tracking. Monitoring the movement of a person or a thing (e.g., a vehicle or package) along the route c. Mapping. Creating digital maps of specific geographical locations d. Sharing. Communicating a person’s (or thing’s) location with others.

Answer: D Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

43. Providing location-based services requires a variety of location-based and network technologies. ___________________ identifies the location of the mobile device either through GPS or by locating the nearest base station. The position information is sent to the mobile positioning center. a. b. c. d.

Position Determining Equipment (PDE) Mobile Positioning Center (MPC) Location-based technology Geographic content

Answer: A Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

44. Providing location-based services requires a variety of location-based and network technologies. The _________________ is a server that manages the location information sent from the PDE. a. b. c. d.

Mobile Positioning Center (MPC) Location-based technology Geographic host Location-specific (address) host

Answer: A Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

45. Providing location-based services requires a variety of location-based and network technologies. _________________ consists of groups of servers that combine the position information with geographic- and location-specific content to provide an l-commerce service. a. b. c. d.

Position Determining Equipment (PDE) Mobile Positioning Centers (MPC) Location-based technology Geographic hosts

Answer: C Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

46. Providing location-based services requires a variety of location-based and network technologies. ____________________ consists of digitized streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like. This information must be delivered in compressed form for fast distribution over wireless networks. a. b. c. d.

Position Determining Equipment (PDE) Mobile Positioning Center (MPC) Geographic content Location-specific content

Answer: C Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

47. Providing location-based services requires a variety of location-based and network technologies. ________________________ is used in conjunction with the geographic content to provide the location of particular services. Yellow-page directories showing the location of specific business and services are examples of this type of information. a. b. c. d.

Position Determining Equipment (PDE) Mobile Positioning Center (MPC) Location-based technology Location-specific content

Answer: D Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

48. A global positioning system (GPS) is a wireless system that uses _______________ to determine where the GPS device is located anywhere on the earth. GPS equipment has been used extensively for navigation by commercial airlines and ships, and for locating trucks and buses. a. b. c. d.

A network of radio towers The earth’s magnetic field Satellites The position of the stars

Answer: C Difficulty: Easy Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

49. When global positioning system (GPS) information is added to map layers containing things like store names, customer names, traffic pattern data, etc., it creates a _______________________. a. b. c. d.

GeoDatabase Geographic Information System (GIS) Mobile Map System (MMS) Geographic Warehouse

Answer: B Difficulty: Medium Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

50. Organizations are increasing their use of mobile apps to carry out a range of functions.

Which of the following was not one of the mobile enterprise software applications described in your textbook? a. b. c. d.

Inventory management Customer service Job dispatch Mobile book keeping

Answer: D Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

51. During periods of high volume in retail stores, employees can set up temporary mobile check-out stations capable of scanning merchandise bar codes, processing credit card payments, and printing receipts. Employees can even walk through a fixed station line offering to expedite checkout for those customers paying by credit card. This is an example of: a. b. c. d.

Mobile POS (Point of Sale) Mobile inventory management Mobile supply chain management Mobile CRM and Sales force automation

Answer: A Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

52. A salesperson might be on a sales call and use a mobile app to look up the recent billing history for a particular customer. Or a field service representative on a service call might need to know current availability of various parts in order to fix a piece of machinery. These are examples of what kind of mobile enterprise application? a. b. c. d.

Mobile POS (Point of Sale) Mobile inventory management Mobile supply chain management Mobile CRM and Sales force automation

Answer: D Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

True/False 1. Some retailers are becoming frustrated by the growing trend called showrooming where customers use their smartphones to scan the barcodes of products to compare prices from other stores as well as online shopping sites.

Answer: True Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

2. While many retailers are frustrated by the phenomenon of shoppers using smartphones to comparison shop in their stores, Macy’s “Backstage Pass Program” actually encourages users to access product information and promotional videos using QR codes and short message service (SMS).

Answer: True Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 3. Throughout Macy’s stores, special displays encourage shoppers to view promotional videos and access product information using their smart phones or other mobile devices. This type of in-store promotion is called a mobile display strategy.

Answer: True Difficulty: Medium Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 4. Throughout Macy’s stores, special displays encourage shoppers to view promotional videos and access product information using their smart phones or other mobile devices. This type of in-store promotion is called a dual modality retail strategy.

Answer: False Difficulty: Medium Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

5. A key mobile strategy being used by Macy’s and other retailers across the country is to grow their SMS database by offering customers coupons and other promotions via text messages.

Answer: True Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 6. A key mobile strategy being used by Macy’s and other retailers across the country is to grow their SMS database by offering customers coupons and other promotions via YouTube videos.

Answer: False Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

7. To take advantage of the growth of mobile device use, many retailers like Macy’s are using mobile check-in strategies and partnering with companies like Foursquare and Shopkick that use mobile apps to alert retailers when a customer is in their store.

Answer: True Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 8. Customers can pay for products at Macy’s using Google Wallet, a mobile payment app. At the register, customers simply tap their phones on a near field communications (NFC) device in order to transfer funds to Macy’s.

Answer: True Difficulty: Medium Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

9. Customers can pay for products at Macy’s using Google Wallet, a mobile payment app. At the register, customers simply tap their phones on an augmented reality device in order to transfer funds to Macy’s.

Answer: False Difficulty: Medium Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 10. Google’s Project Glass aims to make it possible for people to access network based applications using a device that is similar to a pair of glasses.

Answer: True Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology 11. Google’s Project Glass aims to make it possible for people to access network based applications using a device that is similar to a wrist watch.

Answer: False Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

12. According to your textbook, the Symbian OS is one of the most popular mobile operating systems.

Answer: False Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

13. As of 2012, the Android OS was the most popular mobile operating system globally with approximately 46% market share.

Answer: True Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

14. Increasingly, city governments, airports, train stations, restaurants, cafes and owners of other public areas are making access to Wi-Fi hotspots available to the public for free.

Answer: True Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

15. Increasingly, city governments, airports, train stations, restaurants, cafes and owners of other public areas are making access to 3G and 4G networks available to the public for free.

Answer: False Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

16. The three technological foundations of mobile computing are 1) mobile devices, 2) mobile operating systems, and 3) mobile networks.

Answer: True Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

17. The three technological foundations of mobile computing are 1) mobile devices, 2) mobile operating systems, and 3) mobile software apps.

Answer: False Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

18. The greater number of mobile devices and operating systems makes it hard to create Web sites and apps that work well with all device/OS combinations.

Answer: True Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

19. Generally speaking, it is easier to develop websites and software apps for the mobile market (compared to personal computers) because mobile operating systems are much smaller and simpler.

Answer: False Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

20. Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using FourSquare’s mobile app is an example of mobile retailing.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

21. The buying or selling of goods and services using a wireless, handheld device such as a cell phone or tablet (slate) computer is called mobile commerce.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

22. Ordering a pair of shoes from Zappos.com using a mobile app, or purchasing music from iTunes from your iPod is an example of mobile commerce.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

23. Sending special offers to customers who have opted in to receive discounts via SMS text message or advertising a brand on a popular mobile game app like Angry Birds is an example of mobile marketing.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

24. Generally speaking, one of the biggest barriers to mobile commerce is that many consumers find mobile devices too complicated to use for commerce.

Answer: False Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

25. Once of the barriers to greater adoption of mobile commerce is consumer concern about privacy and security.

Answer: True Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

26. One of the barriers to greater adoption of mobile commerce is the limited number of convenient mobile payment options.

Answer: True Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

27. Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recommends an integrated strategy called omni-channel retailing.

Answer: True Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB:

28. Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recommends an integrated strategy called dual-modality retailing.

Answer: False Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB:

29. Retailers who employ an Omni-channel strategy create a seamless brand experience for customers who might have brand contacts (e.g. advertising, sales support, product information, purchase, returns, etc.) through multiple channels.

Answer: True Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB: 30. When customers use a brand’s mobile app to shop for products, their shopping experience can be customized based on the company’s knowledge of previous purchases, product preferences, payment methods, and even location.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

31. The picture below is an example of a QR (Quick Response) code.

Answer: True Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

32. The picture below is an example of a mobile visual response code.

Answer: False Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

33. Graphic images like the one below are typically used for providing links to online content.

Answer: True Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

34. Graphic images like the one below are typically used for generating augmented reality images.

Answer: False Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

35. Mobile visual search (MVS) technology is emerging as an alternative to QR codes.

Answer: True Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

36. Augmented reality technology is emerging as an alternative to Mobile Visual Search (MVS).

Answer: False Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology 37. The Foursquare app makes use of a mobile device’s GPS system to determine the user’s location. Foursquare uses consumer location information from a mobile device’s GPS to target consumers with timely and relevant promotional messages. This is an example of location-based marketing.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

38. Augmented reality apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building.

Answer: True Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

39. Mobile visual search (MVS) apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building.

Answer: False Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

40. As mobile commerce grows, there is a greater demand for payment systems that make transactions from smartphones and other mobile devices convenient, safe, and secure.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

41. Using Google Wallet, consumers can pay for goods in stores. At check out, mobile users simply pass or tap their phone on a merchant terminal and payment is transferred. Users receive an SMS text message confirmation. The Google Wallet and similar payment systems are based on near field communications (NFC) technology.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

42. Using Google Wallet, consumers can pay for goods in stores. At check out, mobile users simply pass or tap their phone on a merchant terminal and payment is transferred. Users receive an SMS text message confirmation. The Google Wallet and similar payment systems are based on QR code technology.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

43. Starbucks allows customers to pay with their mobile devices. Customers create an account with Starbucks as part of the retailer’s loyalty program, and transfer money to a pre-paid account. Upon check out, users activate the Starbucks app, which creates a bar code or QR code that can be scanned at check out.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

44. Starbucks allows customers to pay with their mobile devices. Customers create an account with Starbucks as part of the retailer’s loyalty program, and transfer money to a pre-paid account. Upon check out, users activate the Starbucks app, which creates a credit voucher that can be handed to the cashier.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

45. Mobile payment systems employ a range of technologies. Augmented reality is perhaps one of the most common technologies being applied in the area of mobile payment apps.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

46. One advantage of many mobile payment systems over traditional credit card systems is the ability to handle micropayments, or transactions involving relatively small sums of money.

Answer: True Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

47. One advantage of many mobile payment systems over traditional credit card systems is the ability to handle transactions involving relatively small sums of money, commonly known as “mini-transfers.”

Answer: False Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

48. The ability to make micropayments allows individuals to use their mobile devices to do things like purchase a beverage from a vending machine or make a payment to a municipal parking meter.

Answer: True Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

49. In addition to paying bills through wireline banking or from ATMs, a number of companies are now providing their customers with the option of paying bills directly from a cell phone.

This trend is proving particularly attractive to mobile users in developing countries.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Dynamics of the global economy

50. Mobile banking is generally defined as carrying out banking transactions and other related activities via mobile devices. The services offered include bill payments and money transfers, account administration and check book requests, balance inquiries and statements of account, interest and exchange rates, and so on.

Answer: True Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

51. Many businesses use short codes, an easy to remember 5 or 6 digit number, instead of telephone numbers when creating text message (SMS) services. For example, voting on the popular television show American Idol is done using short codes.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

52. Many businesses use service ID codes, an easy to remember 5 or 6 digit number, instead of telephone numbers when creating text message (SMS) services. For example, voting on the popular television show American Idol is done using service ID codes.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

53. Your textbook identified a number of mobile banking security risks. Duplicating the Electronic Serial Number (ESM) of one phone and using it in a second phone is called cloning. This allows the perpetrator to have calls and other transactions billed to the original phone.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

54. Your textbook identified a number of mobile banking security risks. Duplicating the Electronic Serial Number (ESM) of one phone and using it in a second phone is called phishing. This allows the perpetrator to have calls and other transactions billed to the original phone.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

55. Your textbook identified a number of mobile banking security risks. Using a fraudulent communication, such as an e-mail, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called phishing.

Answer: True Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

56. Your textbook identified a number of mobile banking security risks. Using a fraudulent communication, such as an e-mail, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called impostering.

Answer: False Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

57. Your textbook identified a number of mobile banking security risks. Using a fraudulent text message (SMS), to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called smishing.

Answer: True Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

58. Your textbook identified a number of mobile banking security risks. Using a fraudulent voice or voice mail message to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called vishing.

Answer: D Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

59. Location-based commerce (l-commerce) refers to the delivery of advertisements, products, or services to customers whose locations are known at a given time.

Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

60. Geo-based marketing refers to the delivery of advertisements, products, or services to customers whose locations are known at a given time.

Answer: False Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

61. Providing location-based services requires a variety of location-based and network technologies. Position determining equipment identifies the location of the mobile device either through GPS or by locating the nearest base station. The position information is sent to the mobile positioning center.

Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

62. Providing location-based services requires a variety of location-based and network technologies. The Mobile Positioning Center (MPC) identifies the location of the mobile device either through GPS or by locating the nearest base station.

Answer: False Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

63. Providing location-based services requires a variety of location-based and network technologies. The Mobile Positioning Center (MPC) is a server that manages the location information sent from the PDE. Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

64. Providing location-based services requires a variety of location-based and network technologies. Location-based technology consists of groups of servers that combine the position information with geographic- and location-specific content to provide an lcommerce service.

Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

65. Providing location-based services requires a variety of location-based and network technologies. Geographic content consists of digitized streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like. This information must be delivered in compressed form for fast distribution over wireless networks.

Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

66. Providing location-based services requires a variety of location-based and network technologies. Location specific content is used in conjunction with the geographic content to provide the location of particular services. Yellow-page directories showing the location of specific business and services are examples of this type of information.

Answer: True Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

67. A global positioning system (GPS) is a wireless system that uses satellites to determine where the GPS device is located anywhere on the earth.

Answer: True Difficulty: Easy Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

68. A global positioning system (GPS) is a wireless system that uses a network of radio towers to determine where the GPS device is located anywhere on the earth.

Answer: False Difficulty: Easy Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

69. When global positioning system (GPS) information is added to map layers containing things like store names, customer names, traffic pattern data, etc., it creates a geographic information system.

Answer: True Difficulty: Medium Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

70. When global positioning system (GPS) information is added to map layers containing things like store names, customer names, traffic pattern data, etc., it creates an application called a visual geo-mapping system.

Answer: False Difficulty: Medium Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

71. During periods of high volume in retail stores, employees can set up temporary mobile check-out stations capable of scanning merchandise bar codes, processing credit card payments, and printing receipts. Employees can even walk through a fixed station line offering to expedite checkout for those customers paying by credit card. This is an example of Mobile POS (Point of Sale): Answer: True Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

72. A salesperson might be on a sales call and use a mobile app to look up the recent billing history for a particular customer. Or a field service representative on a service call might need to know current availability of various parts in order to fix a piece of machinery. Are these examples of mobile CRM and sales force automation?

Answer: True Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

Short Answer 1. Whenever Kellie Wolf shops at local stores, she uses her smartphone to scan the barcodes of products so that she can compare prices from other stores as well as online shopping sites.

Her smartphone app also allows her to check product reviews and get product information.

Using a mobile device as a shopping aid in this manner is called___________________.

Answer: Showrooming Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

2. While many retailers are frustrated by the phenomenon of shoppers using smartphones to comparison shop in their stores, Macy’s “Backstage Pass Program” actually encourages users to access product information and promotional videos using ______________________.

Answer: QR codes and short message service (SMS) Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 3. Throughout Macy’s stores, special displays encourage shoppers to view promotional videos and access product information using their smart phones or other mobile devices. This type of in-store promotion is called a(n) _________________________.

Answer: Mobile display strategy Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 4. Another key mobile strategy being used by Macy’s and other retailers across the country is to grow their SMS database by offering customers coupons and other promotions via _______________.

Answer: Text messages Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology

5. To take advantage of the growth of mobile device use, many retailers like Macy’s are using mobile check-in strategies and partnering with companies like ______________________ that use mobile apps to alert retailers when a customer is in their store.

Answer: Foursquare and/or Shopkick Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 6. Customers can pay for products at Macy’s using Google Wallet, a mobile payment app. At the register, customers simply tap their phones on a(n) _______________________ device in order to transfer funds to Macy’s.

Answer: Near field communications (NFC) Difficulty: Easy Section Ref: Opening Case: Macy’s Races Ahead with Mobile Retail Strategies AACSB: Use of information technology 7. Google’s Project Glass aims to make it possible for people to access network based applications using a device that is similar to _________________________.

Answer: A pair of glasses Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

8. As of 2012, the _________________ is the most popular mobile operating system globally with approximately 46% market share.

Answer: Android OS Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

9. Increasingly, city governments, airports, train stations, restaurants, cafes and owners of other public areas are making access to ________________ available to the public for free.

Answer: Wi-Fi hotspots Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

10. Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using FourSquare’s mobile app is an example of ______________________.

Answer: Mobile Retailing Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology 11. The buying or selling of goods and services using a wireless, handheld device such as a cell phone or tablet (slate) computer is called ______________________.

Answer: Mobile Commerce Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

12. Ordering a pair of shoes from Zappos.com using a mobile app, or purchasing music on iTunes from your iPod is an example of ______________________.

Answer: Mobile Commerce Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

13. Sending special offers to customers who have opted in to receive discounts via SMS text message or advertising a brand on a popular mobile game app like Angry Birds is an example of ___________________________ (choose the most specific answer).

Answer: Mobile Marketing Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

14. Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recommends an integrated strategy called _________________ retailing.

Answer: Omni-channel Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB:

15. The picture below is an example of a(n) _______________________.

Answer: QR (Quick Response) code Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

16. Graphic images like the one below are typically used for _______________________.

Answer: Providing links to online content Difficulty: Easy Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

17. __________________ technology is emerging as an alternative to QR codes.

Answer: Mobile Visual Search (MVS) Difficulty: Hard Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology 18. The Foursquare app makes use of the mobile device’s GPS system to determine the user’s location. Foursquare can use this information to target consumers with timely and relevant promotional messages. This is an example of ____________________ marketing.

Answer: Location-based Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

19. _____________________ apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building.

Answer: Augmented Reality (AR) Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

20. Mobile ___________________ allow users to pay for goods and services using their smartphone or other mobile device to transfer funds in a way that is convenient, safe, and secure.

Answer: Payment systems Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

21. Using Google Wallet, consumers can pay for goods in stores. At check out, mobile users simply pass or tap their phone on a merchant terminal and payment is transferred. Users receive an SMS text message confirmation. The Google Wallet and similar payment systems are based on _________________________ technology.

Answer: Near field communications (NFC) Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

22. Starbucks allows customers to pay with their mobile devices. Customers create an account with Starbucks as part of the retailer’s loyalty program, and transfer money to a pre-paid account. Upon check out, users activate the Starbucks app, which creates a _____________ that can be scanned at check out.

Answer: Bar code or QR code Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

23. One advantage of many mobile payment systems over traditional credit card systems is the ability to handle ___________________, or transactions involving relatively small sums of money.

Answer: Micropayments Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

24. The ability to make ______________________ allows individuals to use their mobile devices to do things like purchase a beverage from a vending machine or make a payment to a municipal parking meter.

Answer: Micropayments Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

25. ____________________ is generally defined as carrying out banking transactions and other related activities via mobile devices. The services offered include bill payments and money transfers, account administration and check book requests, balance inquiries and statements of account, interest and exchange rates, and so on.

Answer: Mobile banking Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

26. Many businesses use _______________, an easy to remember 5 or 6 digit number, instead of telephone numbers when creating text message (SMS) services. For example, voting on the popular television show American Idol is done using this approach.

Answer: Short code Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

27. Your textbook identified a number of mobile banking security risks. Duplicating the Electronic Serial Number (ESM) of one phone and using it in a second phone is called ______________. This allows the perpetrator to have calls and other transactions billed to the original phone.

Answer: Cloning Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

28. Your textbook identified a number of mobile banking security risks. Using a fraudulent communication, such as an e-mail, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________.

Answer: Phishing Difficulty: Medium Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

29. Your textbook identified a number of mobile banking security risks. Using a fraudulent text message (SMS), to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________.

Answer: Smishing Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

30. Your textbook identified a number of mobile banking security risks. Using a fraudulent voice or voice mail message, to trick the receiver into divulging critical information such as account numbers, passwords, or other identifying information is called ________________.

Answer: Vishing Difficulty: Hard Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

31. ________________________ refers to the delivery of advertisements, products, or services to customers whose locations are known at a given time.

Answer: Location-based commerce (l-commerce) Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

32. Providing location-based services requires a variety of location-based and network technologies. ___________________ identifies the location of the mobile device either through GPS or by locating the nearest base station. The position information is sent to the mobile positioning center.

Answer: Position Determining Equipment (PDE) Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

33. Providing location-based services requires a variety of location-based and network technologies. The _________________ is a server that manages the location information sent from the PDE. Answer: Mobile Positioning Center (MPC) Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

34. Providing location-based services requires a variety of location-based and network technologies. _________________ consists of groups of servers that combine the position information with geographic- and location-specific content to provide an l-commerce service.

Answer: Location-based technology Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

35. Providing location-based services requires a variety of location-based and network technologies. ____________________ consists of digitized streets, road maps, addresses, routes, landmarks, land usage, Zip codes, and the like. This information must be delivered in compressed form for fast distribution over wireless networks.

Answer: Geographic content Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

36. Providing location-based services requires a variety of location-based and network technologies. ________________________ is used in conjunction with the geographic content to provide the location of particular services. Yellow-page directories showing the location of specific business and services are examples of this type of information.

Answer: Location-specific content Difficulty: Hard Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

37. A global positioning system (GPS) is a wireless system that uses _______________ to determine where the GPS device is located anywhere on the earth. GPS equipment has been used extensively for navigation by commercial airlines and ships, and for locating trucks and buses.

Answer: Satellites Difficulty: Easy Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

38. When global positioning system (GPS) information is added to map layers containing things like store names, customer names, traffic pattern data, etc., it creates a _______________________.

Answer: Geographic Information System (GIS) Difficulty: Medium Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology

39. During periods of high volume in retail stores, employees can set up temporary mobile check-out stations capable of scanning merchandise bar codes, processing credit card payments, and printing receipts. Employees can even walk through a fixed station line offering to expedite checkout for those customers paying by credit card. This is an example of __________________ Answer: Mobile POS (Point of Sale) Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

40. A salesperson might be on a sales call and use a mobile app to look up the recent billing history for a particular customer. Or a field service representative on a service call might need to know current availability of various parts in order to fix a piece of machinery. These are examples of _________________________________ mobile enterprise applications.

Answer: Mobile CRM and Sales force automation Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

Essay Questions 1. Identify the three technology foundations of mobile computing. Explain why developing websites and software for the mobile market is more challenging than developing applications for the PC market.

Answer: The three technology foundations of mobile computing: mobile devices, mobile operating systems and software, and wireless networks.

Developing websites and software apps for the mobile market is more challenging because there are more types of devices, types of operating systems and types of networks. Developing applications that work with all devices, operating systems, and network combinations is significantly more difficult.

Difficulty: Medium Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

2. List 4 of the most popular mobile OSs: Answer: Android OS, Blackberry OS; iOS (Apple); Windows Mobile OS; Symbian OS; Palm OS Difficulty: Easy Section Ref: 7.1 Mobile Computing Technology AACSB: Use of information technology

3. Many retailers see mobile shopping trends as a threat to their business. However, the National Retail Federation has proposed that retailers move toward an Omni-Channel strategy that embraces mobile technology. Explain the Omni-Channel strategy and give 2 or 3 examples of how it would impact consumers.

Answer: A company with a truly integrated or omni-channel strategy might spark a customer’s interest using mobile advertising or direct mail catalogs. The customer then visits a brick-and-mortar store to examine the product firsthand and speak to a salesperson. In-store purchases might be made using one of the mobile payment methods discussed later in this chapter. If the store doesn’t have the particular size or color of the product desired, the customer might order it by accessing the store’s e-Commerce site with a smartphone by scanning a QR code placed strategically on an in-store display. The product would then be delivered through the mail.

Product returns could be handled through the mail or returned to the store depending on what is most convenient for the customer. Customer service reps in a call center would have a record of the customer’s purchase regardless of which channel the transaction had been completed through. The omni-channel strategy will also take into consideration the potential impact of social media, whereby customers interact with the brand on sites like Facebook or Twitter and share brand experiences with others in their social network.

Difficulty: Medium Section Ref: 7.2 Mobile Commerce AACSB: Use of information technology

4. Identify three of the most common mobile banking services.

Answer: The most common mobile banking services are: • Account alerts, security alerts and reminders • Account balances, updates and history • Customer service via mobile • Branch or ATM location information • Bill pay • Fund transfers • Transaction verification • Mortgage alerts Difficulty: Easy Section Ref: 7.3 Mobile Transactions and Financial Services AACSB: Use of information technology

5. Briefly explain what a Global Position System (GPS) is and provide 2 or 3 examples of how this technology is being used in consumer mobile devices.

Answer: A global positioning system (GPS) is a wireless system that uses 31 government satellites to determine where the GPS device is located anywhere on the earth. GPS technology is used for a wide variety of applications in consumer devices. Perhaps the most obvious use is for mapping applications and apps that provide directions to users for getting from one place to another.

Marketers rely on GPS technology to create location-based services and for location based promotional tactics. Apps like Foursquare and Shopkick promote businesses to consumers based on their location.

Difficulty: Medium Section Ref: 7.4 Location-Based Services and Commerce AACSB: Use of information technology 6. List 3 ways that mobile apps are being used by organizations to conduct business.

Answer: Mobile apps are available for: Supporting salespeople while they are waiting on customers Supporting field employees doing repairs or maintenance on corporate premises or for clients Supporting traveling or off-site executives, managers, or other employees Supporting employees while they do work inside the enterprise, but where there is no easy access to desktop computers; e.g., in a warehouse, outdoor facilities, or large retail stores Employees involved in logistical operations such as driving trucks or delivery vehicles, or working in remote warehouses or storage facilities Investments in mobile enterprise apps are made to provide employees with communication and collaboration tools, and access to data, information, and people inside the organization.

Students may list other mobile enterprise applications mentioned in the text.

Difficulty: Medium Section Ref: 7.5 Mobile Enterprise Applications AACSB: Use of information technology

Chapter 8: Web 2.0 and Social Media Test Bank Multiple Choice 1. A recent study by Forrester Research and Cisco (2010) shows that ________________ is the second-most common application of social technologies by business organizations (marketing was first). a. b. c. d.

Customer service Collaboration Recruiting employees Locating experts and expertise

Answer: A Difficulty: Medium Section Ref: Opening Case: Organizations WOW Customers with Social Customer Service AACSB: Use of information technology

2. Which of the following approaches to business communications is most consistent with what your textbook calls “the broadcast model”? a. b. c. d.

Blogs Social networks Print advertising Posting content on sharing sites (e.g. YouTube, Flickr)

Answer: C Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

3. Which of the following best describes organizational communication based on the “broadcast” communication model? a. b. c. d.

Information flows two ways, between business and consumers.

Information flows between two or more businesses.

Information flows from a business organization to consumers.

Information flows between two or more consumers.

Answer: C Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

4. Which of the following best describes organizational communication based on the “conversation” communication model? a. b. c. d.

Information flows two ways, between business and consumers.

Information flows from one business to other businesses.

Information flows from a business organization to consumers.

Information flows from one consumer to others.

Answer: A Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology 5. Which of the following practices is most consistent with the “conversation” model of communication discussed in your textbook? a. b. c. d.

Television advertising Sending emails to customers promoting a product or distributing a coupon Responding to customer posts on the company Facebook page Issuing a press release to regional and national news media

Answer: C Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

6. Which of the following best characterizes the most significant difference between original Internet technology (Web 1.0) and more recent advances (Web 2.0)? a. b. c. d.

Better search engines Increased use of eCommerce Ability to download music New technologies increase the ability of people to interact with businesses and each other

Answer: D Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

7. Static Web pages, author controlled content, and access to Internet almost completely by computer are characteristics most commonly associated with ________________. a. b. c. d.

Web 1.0 Web 2.0 The Semantic Web The mobile Web

Answer: A Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

8. Dynamic Web pages, user-controlled content and access to Internet from many different kinds of devices are characteristics most commonly associated with ___________________. a. b. c. d.

Web 1.0 Web 2.0 Intranets Virtual private networks

Answer: B Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

9. In the era of Web 1.0, the primary goal of online marketers was _______________, whereas in the era of Web 2.0, the primary goal of online marketers is ________________. a. b. c. d.

Sales / Profits Public relations / Advertising Email / Twitter Influence / Relationships

Answer: D Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

10. The term ____________ is short for web log and is a Web site where users regularly post information for others to read and comment. a. b. c. d.

Social Networking Service Sharing site Blog Mashup

Answer: C Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

11. A ________________________ is a Web site where individuals, who are defined by a profile, can interact with others. This interaction can take the form of posting messages, sharing photographs or videos, sharing links to online material, instant messaging, and so on. a. b. c. d.

Social Networking Service RSS reader Blog Mashup

Answer: A Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

12. A _________________ is a Website where users upload and distribute different kinds of media like pictures, videos, audio files, and so on. Most of these kinds of Web sites focus on a single type of media. a. b. c. d.

Social Networking Service Sharing site Blog Mashup

Answer: B Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

13. The term _____________________ refers to an application or Web page that pulls information from multiple sources, creating a new functionality. a. b. c. d.

Social Networking Service Social bookmarking Wiki Mashup

Answer: D Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

14. A _________________ site is one that people can use to tag online content (i.e. Web pages) with key words, allowing them to easily find the content again at some later date. a. b. c. d.

Social Networking Service Social bookmarking Wiki Mashup

Answer: B Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

15. A(n) _________________ is a collaborative Web site that allows many people to add or update information found on the site. a. b. c. d.

RSS reader Social bookmarking Wiki Mashup

Answer: C Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

16. A(n) _______________________ makes it easy for users to aggregate regularly changing data—such as blog entries, news stories, audio, and video—into a single place. a. b. c. d.

RSS reader Social bookmarking Wiki Widget

Answer: A Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

17. As many Web 2.0 services expand their functionality, many of the original differences that distinguished various types of social media are disappearing. This phenomenon is known as ______________________. a. b. c. d.

Enhanced social media Feature convergence The semantic Web Social Networking

Answer: C Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

18. AJAX refers to a group of technologies that create Web pages that respond to users’ actions without requiring the entire page to reload. Which of the following is not considered an AJAX technology? a. b. c. d.

JavaScript HTML – Hypertext Markup Language OWL – Web Ontology Language XML – Extendable Markup Language

Answer: C Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

19. Collectively, Web 2.0 applications are commonly referred to as ________________ because they have moved the locus of control for mass communications from large organizations to individual users. a. b. c. d.

Collaborative technology Enhanced Internet technology Conversational applications Social media

Answer: D Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

20. Which of the following best describes the aspect of social media that seems to cause the most trouble for business organizations? a. Installing the necessary hardware and software to use the technology. b. Managing the additional costs associated with using social media. c. Shifting from a broadcast communication model to a conversation communication model. d. Developing policies for employee use of social media.

Answer: C Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

21. _________________________ parallel typical physical communities, such as neighborhoods, clubs, and associations, except that they are not bound by political or geographic boundaries. a. b. c. d.

Online or virtual communities Local networks Global networks Social connections

Answer: A Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

22. ____________________________ is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledgeprocessing entities. a. b. c. d.

Network mapping Social assessment Social network analysis (SNA) Global network mapping (GNM)

Answer: C Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

23. __________________________________ have been around for a long time and predate the World Wide Web. a. b. c. d.

Wikis RSS readers Virtual or online communities Micro-blogs

Answer: C Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

24. Facebook has begun using the term ____________________ to refer to the global social network reflecting how we are all connected to one another through relationships. a. b. c. d.

Global map Social map People graph Social graph

Answer: D Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

25. Tim Berners-Lee coined the term ____________________. This concept is intended to illustrate the connections between people and/or documents and pages online. a. b. c. d.

Global social graph Giant global graph Internet of things Content graph

Answer: B Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

26. ___________________________ is a model of problem solving and idea generation that employs Web 2.0 tools to marshall the collective talents of a large group of people. a. b. c. d.

Crowdsourcing Team work Collective collaboration Social decision making

Answer: A Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

27. Among general purpose social networking services, ________________ is the largest community with almost twice as many users as the next largest SNS. a. b. c. d.

LinkedIn Google+ Facebook MySpace

Answer: C Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

28. As the Social Networking Service category matures, sites are differentiating themselves in a number of ways. Which of the following is not one of the factors listed in your textbook as a factor that differentiates SNSs? a. b. c. d.

Target age group Geographic location of users Equipment required to access (i.e., Windows vs. Apple) Social vs. professional networking

Answer: C Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

29. Facebook is regularly criticized for _______________, highlighting an ongoing tension between providing advertisers with access to user data, and the desire of individual users to control access to their personal information. a. b. c. d.

Its fee structure Its privacy policies Having too many ads on a page Inadequate mobile apps

Answer: B Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

30. Which of the following best describes Facebook’s Open Graph Initiative? a. Users can generate a graphic representation of all the people they are connected to on the service. b. Users can easily search for and find people on the Internet who they want to connect to. c. Users can click a “like” button on an external Web site (i.e. a blog post or a newspaper article) and a notice about that external content will appear back on the user’s Timeline. d. Virtually all privacy controls are eliminated, creating open access to user data.

Answer: C Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 31. From a strategic business standpoint, Facebook’s Open Graph Initiative _________________. a. b. c. d.

Makes it easier for users to find others online.

Makes it easier for users to see who they are connected to.

Increases user control over privacy and access to user data.

Extends Facebook’s presence (and influence) across the World Wide Web to other sites.

Answer: D Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

32. In 2011, Internet giant Google launched a service called _______________ that competes directly with Facebook’s SNS. a. b. c. d.

Google+ Google Docs Google Community iGoogle

Answer: A Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

33. Businesses have found a number of different ways to use virtual world SNSs. Which of the following was not an application of virtual world technology discussed in your textbook? a. b. c. d.

Virtual world education: Classes and teacher/student meetings Virtual world business meetings and collaboration Virtual world product testing Virtual world crowdsourcing

Answer: D Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

34. Twitter is a social networking site where users send ________________ to their network of followers. a. b. c. d.

Music files Short messages Documents Streaming video

Answer: B Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

35. Twitter is a social networking service, but is also sometimes referred to as a _________________ site. a. b. c. d.

Microblogging Blogging Sharing Wiki

Answer: A Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

36. TweetDeck, Twitpic, Twitterfeed and Twitterholic are all examples of _________________ that have been developed to enhance the experience of users since the basic site at Twitter.com has so few features. a. b. c. d.

Computer hardware accessories Premium services offered by Twitter 3rd party apps Alternatives (competitors) to Twitter

Answer: C Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

37. Many business and professional organizations have found it desirable to create their own focused social networking services, called ________________ social network services. a. b. c. d.

Private Dedicated Targeted Intensive

Answer: A Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

38. The most important thing that users can do to protect their privacy on social media sites is to understand that they’re responsible for protecting their own information. Which of the following was not one of the common sense guidelines listed in your textbook for protecting privacy? a. Don’t post private data. Avoid posting personal information including full birth date, home address, phone number, etc. b. Be smart about who you allow to become part of your network. The larger your network, the harder it is to keep your data private. c. Don’t rely on current privacy policies. Social networking sites change their privacy policies regularly. Operate as if you had no privacy protection at all when deciding what to post. d. Ask an attorney to review TOS, or Terms of Service agreements that you are required to sign prior to joining a social media site.

Answer: D Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

39. The term Enterprise 2.0 refers to the use of Web 2.0 technologies for __________________ purposes. a. b. c. d.

Military Political or governmental Scientific Business or organizational

Answer: D Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

40. One of the ways that Enterprise 2.0 technology will impact businesses is that important ideas are more likely to come from _____________________ instead of from top management. a. b. c. d.

Outside the company The bottom up (the workforce) Customers Foreign companies

Answer: B Difficulty: Hard Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

41. The majority of businesses use social media for marketing. Which of the following was not one of the other uses of social media listed in your textbook? a. b. c. d.

Recruiting employees Product development Customer service Financial management

Answer: D Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

42. Studies conducted between 2009 and 2012 suggest that between 70 and 88 percent of companies use LinkedIn as part of their ____________________. a. b. c. d.

Product development process Customer service process Recruiting process Financial management process

Answer: C Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

43. Why are many recruiters reducing their use of traditional job posting sites like monster.com and careerbuilder.com? a. Because the job seekers don’t use these sites, resulting in few, if any applications b. Because they often overwhelm recruiters by generating hundreds of applications from unqualified candidates c. Because the fees associated with listing job openings on the sites are too high d. Because the sites make it hard for recruiters to respond to job applicants Answer: B Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

44. Every year, more and more companies report that their spending on traditional media _______________, while the resources they plan to devote to social media is _____________. a. b. c. d.

Remains stable / increasing Is increasing / decreasing Is declining / increasing Is declining / about the same as before

Answer: C Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

45. Most large and medium-sized companies utilize an Intranet for __________________. a. b. c. d.

Advertising and promotion Recruiting employees Public relations Internal collaboration and communication

Answer: D Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

46. According to your textbook, Intranets need to evolve and improve by _________________. a. Becoming less expensive to manage and maintain b. Providing managers with greater control over what employees say and do on the Intranet. c. Adding social features such as file sharing, blogging, wikis, and social bookmarking d. Providing greater access to consumers Answer: C Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

47. The use of social media tools to enhance communication and decision making across the supply chain is called ______________. a. b. c. d.

Social distribution Supply Chain Management 2.0 (SCM 2.0) Channel member conversations Engaging distribution channels

Answer: B Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

48. An important principle supporting the use of metrics is: You cannot manage what you do not ___________________. a. b. c. d.

Measure Own Possess Analyze

Answer: A Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

49. Instead of requiring mangers to wait for monthly or quarterly reports for assessing progress toward goals, many companies now feed social media metrics continuously into ________________, giving managers access to real time data. a. b. c. d.

Daily reports Performance dashboards Data consoles Information panels

Answer: B Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Use of information technology

50. Perhaps the biggest challenge associated with measuring the success of social media activity is that ______________________. a. b. c. d.

Collecting social media metric data is very expensive There are few standard approaches regarding how and what to measure Social media metrics can be difficult to understand Social media metric data takes a long time to collect

Answer: B Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

51. Traditionally, business organizations developed media objectives around various behavioral models called ________________. a. b. c. d.

Response hierarchies Media models Advertising steps Promotion indexes

Answer: A Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB:

52. Which of the following is not one of the four basic categories of social media metrics described in your textbook? a. b. c. d.

Tool based metrics Managerial metrics Tactical metrics ROI metrics

Answer: B Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 53. Tom is a community manager in his company’s marketing department. He is attempting to measure the effectiveness of using Twitter to promote his organization. He regularly tracks the number of followers, number of times others mention his company in their tweets, and the number of times people retweet his company’s messages. Tom is using which of the following types of social media metrics? a. b. c. d.

Tool based metrics Managerial metrics Tactical metrics ROI metrics

Answer: A Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

54. Susan is attempting to measure the impact of social media on her company’s ability to reach certain objectives. She is collecting information related to these objectives like 1) increases in traffic to her company’s Web site, 2) increases in request for product information, and 3) changes in the number of people who download informational brochures from the Web. Most likely, Susan is using what type of social media metrics? a. b. c. d.

Tool based metrics Strategic metrics Tactical metrics ROI metrics

Answer: C Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 55. Ryan is collecting data in an attempt to show how the company’s social media activity directly influenced sales revenue. For instance, he is looking at metrics like the probability that a customer purchases a product after reading a blog post or visiting the company’s Facebook page. The metrics that Ryan is using are most likely ____________________. a. b. c. d.

Tool based metrics Strategic metrics Tactical metrics ROI metrics

Answer: D Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

56. ROI metrics have inherent appeal to managers because they address the need of the business organization to engage in activities that will contribute to ________________. a. b. c. d.

Customer satisfaction goals Product awareness goals Revenue goals Employee retention goals

Answer: C Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

57. The current Web (2.0) is sometimes called the social Web. The next evolution of the Web (3.0) is referred to as the ________________ Web. a. b. c. d.

Enhanced Semantic Personalized Vertical

Answer: B Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

58. Tim Berners-Lee is the director of the ____________________, the organization working on programming standards designed to make it possible for data, information, and knowledge to be shared even more widely across the Internet. a. b. c. d.

International Internet Commission (IIC) Internet Council on Standards (ICOS) Web Standards Commission (WSC) World Wide Web Consortium (W3C)

Answer: D Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology 59. Much of the world’s data is stored in files that can only be read by the programs that created them. With ____________, the information in these files can be tagged with information describing the nature of the data, where it came from, or how it’s arranged so that the files can be read and used by a wide variety of applications. a. b. c. d.

Metadata Syntax flags Key words Web indicators

Answer: A Difficulty: Hard Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

60. Which of the following is not one of the new languages or protocols described in your text for describing the content of data files on the Web? a. b. c. d.

RDF (Resource Description Framework) OWL (Web Ontology Language) DDFL (Data File Label Language) SPARQL (SPARQL Protocol and RDF Query Language)

Answer: C Difficulty: Hard Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

61. Applications and services that combine semantic technology for identifying the structure and content of data files, with social technologies like blogs, SNSs and wikis, form the basis for what some people call _________________. a. b. c. d.

The social semantic web (S2W) Web 4.0 The Symbiotic Web The enhanced social web (ESW)

Answer: A Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

62. Another key trend contributing to the evolution of the web is the growing importance of _____________________ that allows programs to talk to or interact with one another. a. b. c. d.

Program portals Application Programming Interfaces (API) Data Link Standards Software Communication Interfaces (SCI)

Answer: B Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

63. In the future, _________________ applications will make it possible for computers to learn about us, our interests and information needs. Web browsers with this technology will be able to ask questions that clarify the tasks (i.e. information searches) we are performing. a. b. c. d.

Database Social media Artificial Intelligence (AI) Decision Support

Answer: C Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

64. Which of the following was not listed by your textbook as one of the barriers to be overcome in order to make the Web more beneficial to users? a. b. c. d.

Closed data sources Incompatible data structures and formats Lack of net neutrality Opposition to changes by large, multinational corporations

Answer: D Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

True/False 1. A recent study by Forrester Research and Cisco (2010) shows that customer service is the second-most common application of social technologies by business organizations (marketing was first).

Answer: True Difficulty: Medium Section Ref: Opening Case: Organizations WOW Customers with Social Customer Service AACSB: Use of information technology

2. Television advertising is a business communications practice consistent with what your textbook calls “the broadcast model”?

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

3. Print advertising is a business communications practice consistent with what your textbook calls “the broadcast model”?

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

4. Television advertising is a business communications practice consistent with what your textbook calls “the conversation model”?

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

5. Print advertising is a business communications practice consistent with what your textbook calls “the conversation model”?

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

6. With business communications based on the “broadcast” communication model, information flows one way, from sender to receivers.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology 7. With business communications based on the “conversation” communication model, information flows one way, from sender to receivers.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology 8. With business communications based on the “conversation” communication model, information flows two ways, requiring businesses to “talk” and “listen.”

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology 9. With business communications based on the “broadcast” communication model, information flows two ways, requiring businesses to both “talk” and “listen.”

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

10. Reading and responding to customer posts on the company Facebook page is an example of business communications based on the “conversation” model.

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

11. The most defining difference between original Internet technology (Web 1.0) and more recent advances (Web 2.0) is that the new technologies increase the ability of people to interact and collaborate online.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

12. Static Web pages, author controlled content, and access to Internet almost completely by computer are characteristics most commonly associated with Web 1.0.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

13. Static Web pages, author controlled content, and access to Internet almost completely by computer are characteristics most commonly associated with Web 2.0.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

14. Dynamic Web pages, user-controlled content and access to Internet from many different kinds of devices are characteristics most commonly associated with Web 2.0.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

15. In the era of Web 1.0, the primary goal of online marketers was influence, whereas in the era of Web 2.0, the primary goal of online marketers is relationships.

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

16. In the era of Web 1.0, the primary goal of online marketers was advertising, whereas in the era of Web 2.0, the primary goal of online marketers is public relations.

Answer: False Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

17. The term blog is short for web log and is a Web site where users regularly post information for others to read and comment on.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

18. A mashup is a Web site where users regularly post information (articles) for others to read and comment on.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

19. A social networking service is a Web site where individuals, who are defined by a profile, can interact with others. This interaction can take the form of posting messages, sharing photographs or videos, sharing links to online material, instant messaging, and so on.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

20. A blog is a Web site where individuals, who are defined by a profile, can interact with others.

This interaction can take the form of posting messages, sharing photographs or videos, sharing links to online material, instant messaging, and so on.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

21. A sharing Website is where users upload and distribute different kinds of media like pictures, videos, audio files, and so on. Most of these Web sites focus on distributing a single type of media.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

22. A social networking site is a Website where users upload and distribute different kinds of media like pictures, videos, audio files, and so on. Most of these Web sites focus on distributing a single type of media.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

23. The term mashup refers to an application or Web page that pulls information from multiple sources, creating a new functionality.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

24. The term wiki refers to an application or Web page that pulls information from multiple sources, creating a new functionality.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

25. A social bookmarking site is one that people can use to tag online content (i.e., Web pages) with key words, allowing users to easily find the content again at some later date.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

26. A widget site is one that people can use to tag online content (i.e., Web pages) with key words, allowing them to easily find the content again at some later date.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

27. A wiki is a collaborative Web site that allows many people to add or update information found on the site.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

28. A mashup is a collaborative Web site that allows many people to add or update information found on the site.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

29. An RSS reader makes it easy for users to aggregate regularly changing data—such as blog entries, news stories, audio, and video—into a single place for easy viewing.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

30. A sharing site makes it easy for users to aggregate regularly changing data—such as blog entries, news stories, audio, and video—into a single place for easy viewing.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

31. As Web 2.0 services expand their functionality, many of the original differences that distinguished various types of social media are disappearing. This phenomenon is known as feature convergence.

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

32. As Web 2.0 services expand their functionality, many of the original differences that distinguished various types of social media are disappearing. This phenomenon is known as enhanced social media.

Answer: False Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

33. AJAX refers to a group of technologies and languages that create Web pages that respond to users’ actions without requiring the entire page to reload.

Answer: True Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

34. Collectively, Web 2.0 applications are commonly referred to as social media because they have moved the locus of control for mass communications from large organizations to individual users.

Answer: True Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

35. Collectively, Web 2.0 applications are commonly referred to as “grass roots technology” because they have moved the locus of control for mass communications from large organizations to individual users.

Answer: False Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

36. Many organizations seem to have trouble shifting from a broadcast communication model to a conversation communication model because they have less control of the communication process in the conversation model.

Answer: True Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

37. Online or virtual communities parallel typical physical communities, such as neighborhoods, clubs, and associations, except that they are not bound by political or geographic boundaries.

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

38. Social network analysis (SNA) is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledgeprocessing entities.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

39. Global network mapping (GNM) is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledgeprocessing entities.

Answer: False Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

40. Virtual or online communities have been around for a long time and predate the World Wide Web. Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

41. Facebook has begun using the term social graph to refer to the global social network reflecting how we are all connected to one another through relationships.

Answer: True Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

42. Facebook has begun using the term face graph to refer to the global social network reflecting how we are all connected to one another through relationships.

Answer: False Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 43. Tim Berners-Lee coined the term “giant global graph.” This concept is intended to illustrate the connections between people and/or documents and pages online.

Answer: True Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

44. Tim Berners-Lee coined the term “internet of things.” This concept is intended to illustrate the connections between people and/or documents and pages online.

Answer: False Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

45. Crowdsourcing is a model of problem solving and idea generation that employs Web 2.0 tools to marshall the collective talents of a large group of people.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

46. Among general purpose social networking services Facebook is the largest community with almost twice as many users as the next largest SNS. Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

47. Among general purpose blog sites Facebook is the largest, with almost twice as many followers as the next largest site of its kind.

Answer: False Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

48. As the Social Networking Service category matures, sites are differentiating themselves in a number of ways including target age group, geographic location of users and social vs. professional networking.

Answer: True Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

49. Facebook is regularly criticized for its privacy policies, highlighting an ongoing tension between providing advertisers with access to user data, and the desire of individual users to control access to their personal information.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

50. Facebook is regularly criticized for its user fee structure, highlighting an ongoing tension between providing advertisers with access to user data, and the desire of individual users to control access to their personal information.

Answer: False Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 51. As a result of Facebook’s Open Graph Initiative, users can click a “like” button on an external Web site (i.e., a blog post or a newspaper article) and a notice about that external content will appear back on the user’s Timeline.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 52. As a result of Facebook’s Open Graph Initiative virtually all privacy controls are eliminated, creating open access to user data.

Answer: False Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

53. From a strategic business standpoint, Facebook’s Open Graph Initiative extends the service’s presence (and influence) across the World Wide Web to other sites.

Answer: True Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

54. In 2011, Internet giant Google launched a service called Google+ that competes directly with Facebook’s SNS. Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 55. In 2011, Internet giant Google launched a service called “Google Community” that competes directly with Facebook’s SNS. Answer: False Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

56. Businesses have found a number of different ways to use virtual world SNSs. Some of the virtual world business applications described in the textbook include new product development, training and online meetings.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

57. Twitter is a social networking site where users send short messages to their network of followers.

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

58. Twitter is a social networking service, but is also sometimes referred to as a microblogging service.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

59. Twitter is a social networking service, but is also sometimes referred to as a wiki collaboration site.

Answer: False Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 60. TweetDeck, Twitpic, Twitterfeed and Twitterholic are all examples of 3rd party apps that have been developed to enhance the experience of users since the basic site at Twitter.com has so few features.

Answer: True Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

61. TweetDeck, Twitpic, Twitterfeed and Twitterholic are all examples alternative (competing) Web sites that have been developed to enhance the experience of users since the basic site at Twitter.com has so few features.

Answer: False Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

62. Many business and professional organizations have found it desirable to create their own focused social networking services, called private social network services.

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

63. The most important thing that users can do to protect their privacy on social media sites is to understand that they’re responsible for protecting their own information. Your textbook suggests that one common sense approach to this issue is to avoid posting any private data (i.e., full birth date, home address, phone number, etc.)

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 64. The most important thing that users can do to protect their privacy on social media sites is to understand that they’re responsible for protecting their own information. Your textbook suggests that one common sense approach to this issue is be cautious about who you allow to become part of your network.

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

65. The most important thing that users can do to protect their privacy on social media sites is to understand that they’re responsible for protecting their own information. Your textbook suggests that one common sense approach to this issue is to not rely on current privacy policies since they can change at any time. Operate as if you had no privacy protection when deciding what to post.

Answer: True Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

66. The most important thing that users can do to protect their privacy on social media sites is to understand that they’re responsible for protecting their own information. Your textbook suggests that one common sense approach to this issue is to ask an attorney to regularly review TOS, or Terms of Service agreements that you are required to sign prior to joining a social media site.

Answer: False Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

67. The term Enterprise 2.0 refers to the use of Web 2.0 technologies for business purposes.

Answer: True Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

68. The term Enterprise 2.0 refers to the use of Web 2.0 technologies for government or political purposes.

Answer: False Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

69. One of the ways that Enterprise 2.0 technology will impact businesses is that important ideas are more likely to come from the bottom up (the workforce) instead of from top management.

Answer: True Difficulty: Hard Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

70. Studies conducted between 2009 and 2012 suggest that between 70 and 88 percent of companies use LinkedIn as part of their recruiting process.

Answer: True Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

71. Studies conducted between 2009 and 2012 suggest that between 70 and 88 percent of companies use LinkedIn as part of their product development process.

Answer: False Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

72. Many recruiters are reducing their use of traditional job posting sites like monster.com and careerbuilder.com because they are often overwhelmed by hundreds of applications from unqualified candidates.

Answer: True Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

73. Every year, more and more companies report that their spending on traditional media is decreasing, while the resources they plan to devote to social media is increasing.

Answer: True Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

74. Every year, more and more companies report that their spending on traditional media is remaining stable, while the resources they plan to devote to social media are increasing.

Answer: False Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

75. Most large and medium-sized companies utilize an Intranet for internal collaboration and communication.

Answer: True Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

76. According to your textbook, Intranets need to evolve and improve by adding social features such as file sharing, blogging, wikis and social bookmarking.

Answer: True Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

77. An important principle supporting the use of metrics is: You cannot manage what you do not measure.

Answer: True Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

78. An important principle supporting the use of metrics is: You cannot manage what you do not possess.

Answer: False Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

79. Instead of requiring managers to wait for monthly or quarterly reports for assessing progress toward goals, many companies now feed social media metrics continuously into performance dashboards, giving managers access to real time data.

Answer: True Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Use of information technology

80. Instead of requiring managers to wait for monthly or quarterly reports for assessing progress toward goals, many companies now feed social media metrics continuously into daily reports, giving managers access to real time data.

Answer: False Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Use of information technology

81. Perhaps the biggest challenge associated with measuring the success of social media activity is that there are few standard approaches regarding how and what to measure.

Answer: True Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

82. Traditionally, business organizations developed media objectives around various behavioral models called response hierarchies.

Answer: True Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB:

83. Traditionally, business organizations developed media objectives around various behavioral models called promotion indexes.

Answer: False Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB:

84. According to your textbook, there are two basic categories of social media metrics: social metrics and media metrics.

Answer: False Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 85. Tom is a community manager in his company’s marketing department. He is attempting to measure the effectiveness of using Twitter to promote his organization. He regularly tracks the number of followers, number of times others mention his company in their tweets, and the number of times people retweet his company’s messages. Tom is using tool based metrics to measure Twitter’s effectiveness.

Answer: True Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

86. Susan is attempting to measure the impact of social media on her company’s ability to reach certain objectives. She is collecting information related to these objectives like 1) increases in traffic to company Web site, 2) increases in request for product information, and 3) changes in the number of people who download informational brochures from the Web. Most likely, Susan is using tactical metrics to measure the impact of social media.

Answer: True Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 87. Ryan is collecting data in an attempt to show how the company’s social media activity directly influenced sales revenue. For instance, he is looking at metrics like the probability that a customer purchases a product after reading a blog post or visiting the company’s Facebook page. The metrics that Ryan is using are most likely ROI metrics.

Answer: True Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

88. ROI metrics have inherent appeal to managers because they address the need of the business organization to engage in activities that will contribute to revenue goals.

Answer: True Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

89. ROI metrics have inherent appeal to managers because they address the need of the business organization to engage in activities that will contribute to customer satisfaction goals.

Answer: False Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

90. The current Web (2.0) is sometimes called the social Web. The next evolution of the Web (3.0) is referred to as the semantic Web. Answer: True Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

91. The current Web (2.0) is sometimes called the social Web. The next evolution of the Web (3.0) is referred to as the enhanced Web. Answer: False Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology 92. Much of the world’s data is stored in files that can only be read by the programs that created them. With metadata, the information in these files can be tagged with information describing the nature of the data, where it came from, or how it’s arranged so that the files can be read and used by a wide variety of applications.

Answer: True Difficulty: Hard Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology 93. Much of the world’s data is stored in files that can only be read by the programs that created them. With syntax flags, the information in these files can be tagged with information describing the nature of the data, where it came from, or how it’s arranged so that the files can be read and used by a wide variety of applications.

Answer: False Difficulty: Hard Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

94. Applications and services that combine semantic technology for identifying the structure and content of data files, with social technologies like blogs, SNSs and wikis, form the basis for what some people call the social semantic web (S2W).

Answer: True Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

95. Applications and services that combine semantic technology for identifying the structure and content of data files, with social technologies like blogs, SNSs and wikis, form the basis for what some people call the symbiotic web.

Answer: False Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

96. Another key trend contributing to the evolution of the web is the growing importance of Application Programming Interfaces (APIs) that allows programs to talk to or interact with one another.

Answer: True Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

97. In the future, artificial intelligence (AI) applications will make it possible for computers to learn about us, our interests and information needs. Web browsers with this technology will be able to ask questions that clarify the tasks (i.e., information searches) we are performing.

Answer: True Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

Short Answer 1. A recent study by Forrester Research and Cisco (2010) shows that ________________ is the second-most common application of social technologies by business organizations (marketing was first).

Answer: Customer service Difficulty: Medium Section Ref: Opening Case: Organizations WOW Customers with Social Customer Service AACSB: Use of information technology

2. Television and print advertising are examples of what your textbook calls the ______________ model of communication.

Answer: Broadcast Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology 3. When companies “listen” to what customers say about their products on Facebook, Twitter, Blogs, etc., and then respond to those messages, their actions are consistent with the _______________ model of communication described in the textbook.

Answer: Conversation Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

4. Static Web pages, author controlled content, and access to the Internet almost completely by computer are characteristics most commonly associated with ________________.

Answer: Web 1.0 (or the early Web) Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

5. Dynamic Web pages, user-controlled content, and access to the Internet from many different kinds of devices are characteristics most commonly associated with ___________________.

Answer: Web 2.0 or the social web Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

6. In the era of Web 1.0, the primary goal of online marketers was _______________, whereas in the era of Web 2.0, the primary goal of online marketers is ________________.

Answer: Influence / Relationships Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

7. The term ____________ is short for web log and is a Web site where users regularly post information for others to read and comment.

Answer: Blog Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

8. A ________________________ is a Web site where individuals, who are defined by a profile, can interact with others. This interaction can take the form of posting messages, sharing photographs or videos, sharing links to online material, instant messaging, and so on.

Answer: Social Networking Service Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

9. A _________________ is a Website where users upload and distribute different kinds of media like pictures, videos, audio files, and so on.

Answer: Sharing site Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

10. The term _____________________ refers to an application or Web page that pulls information from multiple sources, creating a new functionality.

Answer: Mashup Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

11. A _________________ site is one that people can use to tag online content (i.e., Web pages) with key words, allowing them to easily find the content again at some later date.

Answer: Social Bookmarking Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

12. A(n) _________________ is a collaborative Web site that allows many people to add to or update information found on the site.

Answer: Wiki Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

13. A(n) _______________________ makes it easy for users to aggregate regularly changing data—such as blog entries, news stories, audio, and video—into a single place.

Answer: RSS Reader Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

14. As many Web 2.0 services expand their functionality, many of the original differences that distinguished various types of social media are disappearing. This phenomenon is known as ______________________.

Answer: Feature convergence Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

15. The term ____________ technologies refer to a group of technologies that create Web pages that respond to users’ actions without requiring the entire page to reload. These languages include HTML, XML, CSS, and Asynchronous JavaScript Answer: AJAX Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

16. Collectively, Web 2.0 applications are commonly referred to as ________________ because they have made it possible for large scale, interactive communications and collaboration between organizations and consumers, employees and other users.

Answer: Social Media Difficulty: Easy Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

17. One aspect of social media that seems to be challenging for organizations is changing from broadcast communication strategies, to communication strategies based on the ___________ model.

Answer: Conversation Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

18. _________________________ parallel typical physical communities, such as neighborhoods, clubs, and associations, except that they are not bound by political or geographic boundaries.

Answer: Online or virtual communities (students might also answer Social Network Services) Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

19. ____________________________ is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledgeprocessing entities.

Answer: Social network analysis (SNA) Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

20. Facebook has begun using the term ____________________ to refer to the global social network reflecting how we are all connected to one another through relationships.

Answer: Social graph Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

21. Tim Berners-Lee uses the term or phrase ____________________ to refer to the connections between people and/or documents and pages online.

Answer: Giant global graph Difficulty: Hard Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

22. ___________________________ is a model of problem solving and idea generation that employs Web 2.0 tools to marshall the collective talents of a large group of people. Using this approach, companies solicit, refine, and evaluate ideas for new products and services based on input from their customers.

Answer: Crowdsourcing Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

23. Among general purpose social networking services ________________ is the largest community with almost twice as many users as the next largest SNS. Answer: Facebook Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

24. Facebook is regularly criticized for its _______________, highlighting an ongoing tension between providing advertisers with access to user data, and the desire of individual users to control access to their personal information.

Answer: Privacy policies Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology 25. From a strategic standpoint, Facebook’s __________________ Initiative extends the SNS’s reach (and influence) across the Internet. For instance, one feature allows users to click a “like” button on an external Web site (i.e., a blog post or a newspaper article) and a notice about that external content will appear back on the user’s Timeline.

Answer: Open Graph Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

26. In 2011, Internet giant Google launched a Social Network service called _______________ that competes directly with Facebook’s SNS. Answer: Google+ or Google Plus Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

27. Twitter is a social networking site where users send ________________ to their network of followers.

Answer: Short messages or Tweets Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

28. Many business and professional organizations have found it desirable to create their own focused social networking services, called ________________ social network services.

Answer: Private Difficulty: Easy Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

29. Your textbook listed a number of common sense guidelines users should follow to protect their privacy. One of the guidelines suggests that users avoid posting _______________ including full birth date, home address, phone number, etc.

Answer: Personal Information Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

30. Your textbook listed a number of common sense guidelines users should follow to protect their privacy. One of the guidelines suggests that users _________________ about who they allow to become part of their network. The larger your network, the harder it is to keep your data private.

Answer: Limit or be selective Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

31. Your textbook listed a number of common sense guidelines users should follow to protect their privacy. One of the guidelines suggests that users should not rely on current _____________________ because social networking sites change them regularly.

Answer: Privacy policies Difficulty: Medium Section Ref: 8.2 Virtual Communities and Social Networking Services AACSB: Use of information technology

32. The term Enterprise 2.0 refers to the use of Web 2.0 technologies for __________________ purposes.

Answer: Business Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

33. One of the ways that Enterprise 2.0 technology will impact businesses is that important ideas are more likely to come from _____________________ instead of from top management.

Answer: Employees or the workforce (Students might also answer “the bottom up”) Difficulty: Hard Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

34. According to research done by Forrester and Cisco, ______________ is the most common business application of social technologies by companies.

Answer: Marketing Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

35. According to research done by Forrester and Cisco, ______________ is the second most common business application of social technologies by companies.

Answer: Customer service Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

36. Studies conducted between 2009 and 2012 suggest that between 70 and 88 percent of companies use LinkedIn as part of their ____________________.

Answer: Hiring or recruiting process Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

37. Many recruiters are reducing their use of traditional job posting sites like monster.com and careerbuilder.com because listings on those sites often generate hundreds of applications from _____________________.

Answer: Unqualified candidates Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

38. Every year, more and more companies report that the amount they spend on traditional media is ___________, while the resources they plan to devote to social media are _____________.

Answer: decreasing / increasing Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

39. Most large and medium-sized companies utilize an Intranet for internal __________________.

Answer: Collaboration and communication Difficulty: Easy Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

40. According to your textbook, Intranets need to evolve and improve by adding more _________________ features.

Answer: Social or Web 2.0 Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

41. The use of social media tools to enhance communication and decision making across the supply chain is called ______________.

Answer: Supply Chain Management 2.0 (SCM 2.0) Difficulty: Medium Section Ref: 8.3 Enterprise 2.0—Social Networks and Tools for Business AACSB: Use of information technology

42. An important principle supporting the use of metrics is: You cannot manage what you do not ___________________.

Answer: Measure Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

43. Instead of requiring managers to wait for monthly or quarterly reports for assessing progress toward goals, many companies now display social media metrics on ________________, giving managers access to real time data from their computers.

Answer: Performance dashboards Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Use of information technology

44. Traditionally, business organizations developed media objectives around various behavioral models called ________________.

Answer: Response hierarchies Difficulty: Hard Section Ref: 8.4 Social Media Metrics AACSB:

45. Tom is a community manager in his company’s marketing department. He is attempting to measure the effectiveness of using Twitter to promote his organization. He regularly tracks the number of followers, number of times others mention his company in their tweets, and the number of times people retweet his company’s messages. Tom is using ___________ social media metrics to evaluate his company’s performance.

Answer: Tool based Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 46. Susan is attempting to measure the impact of social media on her company’s ability to reach certain objectives. She is collecting information related to these objectives like 1) increases in traffic to company Web site, 2) increases in request for product information, 3) changes in the number of people who download informational brochures from the Web. Susan is using __________________ social media metrics to evaluate his company’s performance Answer: Tactical Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills 47. Ryan is collecting data in an attempt to show how the company’s social media activity directly influenced sales revenue. For instance, he is looking at metrics like the probability that a customer purchases a product after reading a blog post or visiting the company’s Facebook page. The metrics that Ryan is using are most likely _____________ social media metrics.

Answer: ROI or Return on Investment Difficulty: Medium Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

48. ROI metrics have inherent appeal to managers because they address the need of the business organization to engage in activities that will contribute to ________________ goals.

Answer: Revenue or Financial Difficulty: Easy Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

49. The current Web (2.0) is sometimes called the social Web. The next evolution of the Web (3.0) is referred to as the ________________ Web. Answer: Semantic Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

50. Tim Berners-Lee is the director of the ____________________, the organization working on programming standards designed to make it possible for data, information, and knowledge to be shared even more widely across the Internet.

Answer: World Wide Web Consortium (W3C) Difficulty: Hard Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

51. Applications and services that combine semantic technology for identifying the structure and content of data files, with social technologies like blogs, SNSs and wikis, form the basis for what some people call the _________________ web.

Answer: social semantic Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

52. In the future, _________________ applications will make it possible for computers to learn about us, our interests and information needs. Web browsers with this technology will be able to ask questions that clarify the tasks (i.e., information searches) we are performing.

Answer: Artificial Intelligence Difficulty: Medium Section Ref: 8.5 The Future: Web 3.0 AACSB: Use of information technology

Essay Questions 1. Identify and contrast four characteristics that differentiate Web 1.0 from Web 2.0. (Hint: Use a table format for your answer.)

Answer: Table 8.1: Web 1.0 vs Web 2.0 Web 1.0 Static pages, HTML Author-controlled content Computers Users view content Individual users Marketing goal: Influence Data: single source

Web 2.0 The Social Web Dynamic pages, XML, Java User controlled content Computers, cell phones, televisions, PDAs, game systems, car dashboards Users create content User communities Marketing goal: relationships Data: multiple sources e.g. mashups

Difficulty: Medium Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

2. Explain how feature convergence is blurring the distinction between different types of Web 2.0 services. Provide an example.

Answer: Few social media services fit neatly into the categories described above because of feature convergence. For instance, Facebook started as a social networking service, but now offers many other features. It is a sharing site used by many to distribute photos. It is increasingly common for people to tag or label photos with the names of people in the picture, making it easy to find and display photos of individuals that have been saved in multiple locations on Facebook.

Users can maintain blogs on their Facebook page, and Facebook hosts thousands of apps that pull data from sources outside of the social network, making it a huge mashup app.

Additional Examples: Twitter was initially positioned as a micro-blogging service, but is now commonly described as a social network. Third-party developers have created a host of apps that add features and functionality to the user’s experience. Members of this community share photos and links, and participate in discussion forums using Twitter.

YouTube started as a sharing site, making it easy for people to share video clips with others.

However, YouTube now contains many features that make it difficult to distinguish from a social networking service. The same is true of Flickr, a photo-sharing site that has really become a community platform for people interested in photography.

Every day, new social media apps spring up that mix and blend different Web 2.0 features and technologies to create apps that meet the needs of different market segments.

Difficulty: Hard Section Ref: 8.1 Web 2.0 and Social Media AACSB: Use of information technology

3. Identify two ways in which Enterprise 2.0 might change organizations or managers. Identify one potential benefit of Enterprise 2.0.

Answer: •

Enterprise 2.0 is likely to lead to changes in organizational culture the same way that Web 2.0 is creating fundamental changes in the broader culture.

• Organizations will need to communicate with their employees using a conversation rather than a broadcast model.

• Important ideas are more likely to come from the bottom up (the workforce) than from managers at the top.

• Managers won’t be able to rely as much on their job title to maintain respect. They’ll have to earn it on the enterprise social network.

Benefits include greater transparency in the organization, increased agility and simplicity, creation of a sharing culture and the emergence of more efficient and effective organizational structures.

Difficulty: Hard Section Ref: 8.3 Enterprise 2.0 Tools AACSB: Reflective thinking skills

4. List and define the four different types or categories of social media metrics described in your textbook.

Answer: -Tool-based metrics are designed to identify information about a specific application or service.

For instance, a company might wish to determine if it should advertise on a popular blog, or sponsor the creation and distribution of a useful widget application. In these situations, the company would probably track the number of blog readers or number of widget users.

-Tactical metrics are information that can help a company determine if they are achieving their objectives. For instance, if the company sets an objective of increasing visits to its Web site by 10%, then they would track the number of Web site visitors.

-Strategic metrics provide information about how well a company is doing in terms of its social media strategies. For instance, companies who want to strategically “listen” to their markets might measure the number of “conversations,” identify who is “talking,” identify what people are saying, and so forth.

-ROI metrics provide information about the relationship of a company’s social media activity to its financial performance. If a company notices an 18 percent drop in calls to its customer

service line after implementing an online support forum, the reduction in call center expense can be readily calculated.

Difficulty: Hard Section Ref: 8.4 Social Media Metrics AACSB: Analytic skills

5. Explain why the issue of Net Neutrality is important to the future of the Internet. Briefly describe the views of people on each side of this issue.

Answer: Currently, most Internet content flows freely through networks maintained by large telecom companies. While these companies charge us for access to the Internet, they are not allowed to control the content that flows through the networks. This maintains a level playing field, guaranteeing that all web content is equally accessible. Large telecom companies and Internet Service Providers want to create, and charge for, access to a “fast lane” on the Internet.

This means that larger companies like Facebook, Microsoft and Google will be able to pay to have their information delivered more quickly to your browser, while smaller companies and individuals with blogs and Web sites would be relegated to a relatively slow data pipe.

This might reduce the power of individuals and smaller, innovative companies, changing the democratic and social nature of the Internet. Opponents of net neutrality argue that they have spent billions to create the infrastructure for high speed Internet and should be able to manage it without interference from the government.

Difficulty: Medium Section Ref: 8.5 Web and Social Media Future AACSB: Ethical understanding and reasoning abilities

Chapter 9: Functional Area and Compliance Systems Test Bank Multiple Choice 1. Ideally, operational ISs (also called functional area ISs) provide ____________, knowing what’s happening in any department or function at any time. a. b. c. d.

Quick response Transparency Integration Operational performance

Answer: B Difficulty: Easy Section Ref: Quick Look at Chapter 9 AACSB: Use of information technology 2. Data from functional ISs are used extensively by enterprise applications, including business intelligence (BI), e-commerce, customer relationship management (CRM), and __________________. a. b. c. d.

Supply chain management (SCM) Process management External systems Integration

Answer: A Difficulty: Easy Section Ref: Quick Look at Chapter 9 AACSB: Use of information technology

3. The success of International Speedway Corporation (ISC) mission depends largely on its ability to fill seats at events and minimize _______ in marketing campaigns. a. b. c. d.

Time Effort Waste Value

Answer: C Difficulty: Easy Section Ref: Opening Case: International Speedway Gets Lean AACSB: Use of information technology 4. Increasing the number and frequency of high-quality ___________ increases the chance of being top-of-mind with customers when they are deciding on entertainment. Knowing what customers want can be a powerful competitive edge. a. b. c. d.

Touchpoints Communication Promotions Feedback

Answer: A Difficulty: Easy Section Ref: Opening Case: International Speedway Gets Lean AACSB: Use of information technology 5. International Speedway used data to personalize e-mails and promotions to specific fans, creating individualized campaigns delivered through consumers’ preferred channel(s) determined by a customer’s profile. This is an example of _________________. a. b. c. d.

Touchpoints Communication Promotions Integrated marketing

Answer: D Difficulty: Easy Section Ref: Opening Case: International Speedway Gets Lean AACSB: Use of information technology

6. Your textbook describes three levels of management using a pyramid model. Which of the following is not one of the management levels in the model? a. b. c. d.

Operational level Managerial or administrative level Strategic level Executive level

Answer: D Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 7. At what level do senior or-top level management plan and make decisions that set or impact the long-term direction of the entire organization. a. b. c. d.

Operational level Managerial or administrative level Strategic level Executive level

Answer: C Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 8. What does SWOT analysis represent? a. b. c. d.

Strategy, willingness, outcome and timing Strengths, weaknesses, opportunities, and threats Success, waste, observation and top-down System, wiki, operations, technology

Answer: B Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills

9. The purpose of control is to identify deviations from goals as soon as possible in order to take corrective action. Tracking sales, inventory levels, orders, and customer support are examples of control activities. What type of company data is most important at this level? a. b. c. d.

Internal data External data Vendor data Administrative data

Answer: A Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 10. When work flows and data flows between departments do not work well or coordination is difficult, they cause delays, errors, and poor customer service. This is why ___________ the functional departments via information systems that enable communication, coordination, and control is essential. a. b. c. d.

Managing Integrating Assisting Developing

Answer: B Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 11. Data requirements of the operational level units are extensive and relatively routine, rarely changing because they depend on fixed sources of input and __________, which is a set of written instructions that document a routine or repetitive activity that is followed by an organization. a. b. c. d.

Compliance systems Strategic marketing plan Standard Operation Procedures (SOP) Quality control

Answer: C Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology

12. A key benefit of ________ is that they minimize variation and promote quality through consistent implementation of a process or procedure within the organization, even if there are temporary or permanent personnel changes. a. b. c. d.

Compliance systems Standard Operation Procedures (SOP) Strategic marketing plan Laws and regulation

Answer: B Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 13. Data that are lost, destroyed, or compromised have financial implications. As such it is critical that businesses have ________ to ensure that data are secure, accurate, and that integrity is maintained. a. b. c. d.

Compliance systems Strategic marketing plan Quality control Standard Operation Procedures (SOP)

Answer: D Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 14. Each of the following are considered basic functional areas and are generally supported by information systems: manufacturing and production, ________, finance, IT, sales and marketing, and HR a. b. c. d.

Administrative Accounting Quality control Organizational

Answer: B Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills

15. Only operations that meet data validity standards are allowed. For instance, systems that record checking accounts only allow unique check numbers for each transaction. Any operation that repeated a check number would fail to insure that the data in the database is correct and accurate. Network failures can also cause this type of data problem. a. b. c. d.

Atomicity Consistency Isolation Durability

Answer: B Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 16. In ____________________ events or transactions are processed as soon as they occur. Data are accessed directly from the database, and reports can be generated automatically. What is this? a. b. c. d.

HR Online transaction processing (OLTP) Data accuracy Standard Operation Procedures (SOP)

Answer: Medium Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 17. Data Integrity: Data integrity with real-time systems involves the ACID test, which is short for _______? a. b. c. d.

Atomicity, communication, integrity, and data Atomicity, consistency, isolation, and durability Authenticity, currency, information, and design Accuracy, clarity, information, and data

Answer: B Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology

18. Your textbook described how First Choice Ski, a UK based tour operator improved sales by using real-time reporting. In the highly competitive tour operator industry, profit margins are tight. Being lean and responsive is key to maintaining a profitable business. By using _______________and real-time reporting, First Choice Ski was able to monitor and quickly respond to the behaviors of visitors on its travel web site. a. b. c. d.

Facebook Surveys Yahoo! Web Analytics Google Search

Answer: C Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Use of information technology 19. Your textbook described how First Choice Ski, a UK based tour operator improved sales by using real-time reporting. First Choice Ski uses a Search Phrases Report to leverage factors driving visitors to the website, while the Internal Campaign Report helps them monitor and manage their many travel promotions providing them with the ability to make _____________________based on quantifiable, actionable, data-driven information. a. b. c. d.

Performance improvements Web analytics Lean choices Data accuracy

Answer: A Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Use of information technology 20. In terms of manufacturing, the business function that is responsible for transforming inputs into useful outputs, is: ________________ a. b. c. d.

SWOT Production and operations management (POM) Online transaction processing (OLTP) Standard Operation Procedures (SOP)

Answer: B Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Reflective thinking skills

21. In 2012, there was a noticeable increase in the use of Transportation Management Systems (TMS). One of the factors contributing to the growth of TMS is:___________________ a. b. c. d.

Logistics Timing Growth of intermodal transport Management of suppliers

Answer: C Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Reflective thinking skills 22. Synchronizing inbound and outbound flows of materials or goods is an example of:_____________________ a. b. c. d.

HR Online transaction processing (OLTP) Data accuracy Logistics management

Answer: D Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Reflective thinking skills 23. Coordination of several complex processes, namely ordering, purchasing or procurement, inbound logistics (receiving), and outbound logistics (shipping) activities is called _________________. a. b. c. d.

HR Online transaction processing (OLTP) Data accuracy Logistics management

Answer: D Difficulty: Easy Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Reflective thinking skills

24. In 2012, Agistix (agistix.com) introduced________________ which aggregates and standardizes a company’s shipping activities and provides shippers with a comprehensive view into every shipment they have paid for anywhere in the world. a. b. c. d.

Total visibility Cloud computing Buffer stock Inventory control

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 25. Which of the following attempts to minimize the total cost of inventory while maintaining optimal inventory levels? a. b. c. d.

HR Online transaction processing (OLTP) Data accuracy Inventory control systems

Answer: D Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 26. Why is managing inventory important to profit margins? a. b. c. d.

Because of numerous costs associated with strategy Because of numerous costs associated with inventory Because of numerous costs associated with big data Because of numerous costs associated with logistics

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills

27. To minimize costs associated with managing inventory, the POM department has to decide when to order and how much to order. One inventory model that is used to answer both questions is the ___________________model. It takes all costs into consideration. a. b. c. d.

Economic order quantity (EOQ) Online transaction processing (OLTP) Transportation management systems (TMS) Standard Operation Procedures (SOP)

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 28. In order to operate efficiently, many businesses use ____________ which requires suppliers to deliver small lots on a daily or frequent basis, and production machines are not necessarily run at full capacity. a. b. c. d.

Online transaction processing (OLTP) Lean manufacturing systems Just-in-time (JIT) inventory management Standard Operation Procedures (SOP)

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 29. Attempting to minimize holding costs by not taking possession of inventory until it is needed in the production process is referred to as ______________________. a. b. c. d.

Economic order quantity (EOQ) Online transaction processing (OLTP) Transportation management systems (TMS) Just-in-time (JIT)

Answer: D Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills

30. What system provides data about the quality of incoming materials and parts, as well as the quality of in-process semi-finished and finished products? These systems record the results of all inspections and compare actual results to expected results. a. b. c. d.

Economic order quantity (EOQ) Manufacturing quality control (QC) systems Transportation management systems (TMS) Just-in-time (JIT)

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 31. Prior to the adoption of this process, production managers were given many pieces of information such as time, attendance, receiving reports, inspection reports, and so on to figure out how to accomplish production tasks. The information was late, rarely current or reliable, voluminous, and extremely difficult to assimilate. This system helps production managers better use information to execute manufacturing plans. a. b. c. d.

Computer integrated manufacturing (CIM) Manufacturing quality control (QC) systems Transportation management systems (TMS) Just-in-time (JIT)

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Use of information technology 32. A _______________________ is similar to Computer Integrated Manufacturing, but is based much more on standard reusable application software instead of custom designed software programs. It eliminates the information gap that existed in previous years by providing real time information. a. b. c. d.

Quality control systems (QC) Manufacturing execution system (MES) Transportation management systems (TMS) Just-in-time (JIT)

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Use of information technology

33. A key element of the CIM strategy was the deployment of two __________________ that can accommodate the manufacture of different parts at different volumes. a. b. c. d.

Computer integrated manufacturing (CIM) Manufacturing execution system (MES) Transportation management systems (TMS) Flexible manufacturing systems (FMS)

Answer: D Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills 34. Automation of as many of the manufacturing processes as possible is one of the basic goals of:_____________ a. b. c. d.

Computer integrated manufacturing (CIM) Manufacturing execution system (MES) Transportation management systems (TMS) Flexible manufacturing systems (FMS)

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and Marketing Systems AACSB: Use of information technology 35. _________________ can expand the capacity to create new products, services, channels, and market opportunities that lead to new revenue streams. a. b. c. d.

Human resources Manufacturing execution system (MES) Sales and marketing Flexible manufacturing systems (FMS)

Answer: C Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB: Reflective thinking skills

36. _________________ pay-per-click ads use data about the person to determine whether the ad should appear. This capability creates opportunities for highly targeted advertising programs. a. b. c. d.

Push-through Pull-through Microsurvey Segmented

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB: Use of information technology 37. _________________ ads appear based on the keywords or phrases a user types during an online search. a. b. c. d.

Push-through Pull-through Microsurvey Segmented

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB: Use of information technology 38. ________________ work by offering customers an incredible offer for a very short time.

This sales method lends itself perfectly to the immediacy of social media, and it’s a next stage in social commerce a. b. c. d.

Flash sales Rapid Point of Purchase Promotions (RP3) Online auctions Membership sales

Answer: A Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB:

39. Profitability metrics for products and services can be derived from the ______________ system. a. b. c. d.

Marketing management Cost accounting Sales automation systems Profit center

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB: 40. In deciding on advertising and other marketing efforts, managers need to know the profit contribution or profit margin, which is based on a. b. c. d.

Net revenue – gross expenses Sale price – cost of goods Costs + revenue Costs + net profit

Answer: B Difficulty: Easy Section Ref: 9.3 Sales and marketing systems AACSB: Analytic skills 41. At publicly traded firms, the accounting and finance functions are responsible for accurately disclosing (reporting) the firm’s financial condition to regulatory agencies. For example, firms must file____________________ to the SEC. Financial statements include Statements of Financial Position, Comprehensive Income, Changes in Equity, and Cash Flows. a. b. c. d.

Quarterly and annual marketing statements Quarterly and annual financial statements quarterly and annual profitability margins quarterly and annual manufacturing statements

Answer: B Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB:

42. The U.S. GAAP Financial Reporting ___________ is an electronic dictionary of business reporting elements used to report business data. a. b. c. d.

Directory Taxonomy Tax laws Tax audit

Answer: B Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 43. To aid the SEC in regulating the securities industry, publically traded firms are required to use a new _______________________, where data items are tagged to make them easily searchable. a. b. c. d.

Internal network Financial statement Data disclosure compliance system Financial dashboard

Answer: C Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 44. _____________________ can provide investors quicker access to the data they want in a form that’s easily used and can help companies pre- pare the information more quickly and more accurately. a. b. c. d.

Interactive investments Interactive data Marketing Tax audit

Answer: B Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology

45. Fraud is a crime with severe consequences. _______________ fraud is a term that refers to a variety of criminal behaviors perpetrated by an organization’s own employees or contractors. a. b. c. d.

Insider trading White collar Computer Internal

Answer: D Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 46. What is the markup language that was developed for business and financial reporting? a. b. c. d.

XBRL XBOX HTML JAVA

Answer: A Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology 47. A system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners is called ________________________. a. b. c. d.

Check and balances Regulatory compliance Internal fraud Fraud risk management

Answer: D Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB:

48. Information systems are used to protect companies against fraud. Which of the following is not one of the fraud risk factors identified in your textbook? a. A high level of trust in employees without sufficient oversight to verify that they are not stealing from the company b. Relying on informal processes of control c. A mindset (belief) that internal controls and fraud prevention systems are too expensive to implement d. Assigning a narrow range of duties to employees limiting their opportunities to commit fraud Answer: D Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology 49. Job rotation is when more than one person should be familiar with each transaction cycle in the business where possible. Rotation of jobs helps prevent over reliance on a single individuals and reduces the chances of ___________. a. b. c. d.

Push-throughs Interactive data Fraud Taxonomy

Answer: C Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 50. ________________ is the process of analyzing and selecting investments (expenditures) with the highest ROI for the company. a. b. c. d.

Capital budgeting Localized budgeting Interactive data Marketing strategy

Answer: A Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB:

51. A major reason organizations fail is their inability to ____________ and/or secure sufficient cash flow a. b. c. d.

Forecast Manage Strategize Budget

Answer: A Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 52. __________ is the field that deals with policies, procedures, compliance requirements associated with acquiring and keeping people in organizations. a. b. c. d.

Accounting Human resources Marketing Payroll

Answer: B Difficulty: Easy Section Ref: 9.5 Human Resource Systems AACSB: Reflective thinking skills 53. __________ on LinkedIn, a professional social networking site, has become very popular because it is more effective and efficient than traditional approaches. a. b. c. d.

Risk management Distribution Recruitment Forecasting

Answer: C Difficulty: Medium Section Ref: 9.5 Human Resource Systems AACSB:

54. Some of the most innovative HR developments are in the area of live online training (LOT) using __________ or other online meeting software. a. b. c. d.

CIM TUN VIS WebEx

Answer: D Difficulty: Medium Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology 55. Providing flexibility in selecting benefits is viewed as a competitive advantage in large organizations. Employees can self-register for specific benefits using menus from a __________ or __________. a. b. c. d.

Corporate portal; voice technology Blog; wiki Social network; extranet Mobile or Payroll app

Answer: A Difficulty: Hard Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology 56. Improved relationships with employees result in better retention and higher productivity.

Therefore, companies invest in __________, which includes self-services such as tracking personal information and online training. a. b. c. d.

Benefits management Employee relationship management Budgeting management Intelligent agents

Answer: B Difficulty: Easy Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology

57. Training activities that are part of HRM may involve __________ issues in recruiting and selecting employees and in evaluating performance, in part because these activities make use of private confidential information. a. b. c. d.

Strategic Operational Ethical Budget

Answer: C Difficulty: Medium Section Ref: 9.5 Human Resource Systems AACSB: Ethical understanding and reasoning abilities 58. Human resources information systems (HRISs), which were implemented on company networks since the late 1990s, have been moved to intranets and __________; and HR apps are leased in __________ arrangements. a. b. c. d.

Social networks; vendor Proprietary databases; ERM Cloud computing; software as a service (SaaS) Virtual worlds; intelligent agent

Answer: C Difficulty: Hard Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology 59. Which of the following is not one of the factors holding companies back from implementing HR SaaS solutions to efficiently transform and improve the HR function? a. b. c. d.

Security Lower costs Quality of service Concern about integration with in-house applications

Answer: B Difficulty: Hard Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology

True or False 1. Within the organization, business functions are connected by the data and reports they share or generate.

Answer: True Difficulty: Easy Section Ref: Quick Look at Chapter 9 AACSB: Use of information technology 2. Each level of management has its own data needs, decision making responsibilities, and time horizons.

Answer: True Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 3. At the strategic level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs. Answer: False Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 4. At the operational level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

Answer: False Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 5. Tracking sales, inventory levels, orders, and customer support are examples of control activities.

Answer: True Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills

6. A standard operating procedure, or SOP, is a loosely defined and suggested procedure for completing a process or function, such as a quality control process or function.

Answer: False Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 7. Data validation techniques, such as validating that the zip code is consistent with the address, are used to detect and correct data entry errors.

Answer: True Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 8. Data backups by themselves provide durability to protect data integrity in case of a system crash or other failure.

Answer: False Difficulty: Hard Section Ref: 9.1 Management Levels and Functional Systems AACSB: 9. Reservation systems used by airlines and for concert tickets sales are online transaction processing (OLTP) systems because data are processed as soon as transactions occur, in real time.

Answer: True Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 10. KIA Motors introduced an intelligent QC system to analyze customer complaints so they could more quickly investigate and make corrections.

Answer: True Difficulty: Medium Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Use of information technology

11. Inaccurate cash flow projection led to the demise of the investment bank Lehman Brothers in September 2008.

Answer: False Difficulty: Medium Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 12. Relying on informal processes of control is a factor that increases a company’s exposure to fraud.

Answer: True Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology 13. Cash flow projection is the process of identifying the financing of assets, including software, that need to be acquired or developed. It includes comparing alternatives or evaluating buyversus-lease options.

Answer: False Difficulty: Medium Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: 14. With XBRL, all of the company’s financial data are collected, consolidated, published, and consumed without the need to use Excel spreadsheets.

Answer: True Difficulty: Medium Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology 15. One of the most effective fraud prevention techniques is the perception of detection and punishment.

Answer: True Difficulty: Easy Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology

16. HRM applications involve ethical issues, particularly in recruiting and selecting employees and in evaluating performance.

Answer: True Difficulty: Medium Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology

Short Answer 1. The purpose of __________ is to identify deviations from objectives and plans as soon as possible in order to take corrective action.

Answer: control Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 2. At the __________ level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs. Answer: operational Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 3. At the managerial or administrative level, middle-level managers make __________ decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

Answer: tactical Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB: Reflective thinking skills 4. IT provides systems and apps that support the needs of ______________ area systems such as manufacturing and production, accounting, finance and HR. Answer: Functional Difficulty: Easy Section Ref: 9.1 Management Levels and Functional Systems AACSB: Use of information technology 5. Oracle, Siemens, and POM vendors offer a demand-driven __________ system, whose objective is to remove waste of any kind from production and operations.

Answer: lean manufacturing Difficulty: Medium Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Use of information technology

6. __________ support advertising, market research, intelligence gathering, getting products and services to customers, and responding to customers’ needs.

Answer: Marketing information systems Difficulty: Medium Section Ref: 9.3 Sales and Marketing Systems AACSB: Use of information technology 7. __________ is the process of analyzing and selecting investments with the highest ROI for the company. The process may include comparing alternative investments; for instance, evaluating private cloud vs. public cloud computing options.

Answer: Capital budgeting Difficulty: Medium Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Reflective thinking skills 8. Good planning is necessary because a major reason organizations fail is their inability to forecast and/or secure sufficient __________.

Answer: cash flow Difficulty: Hard Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Reflective thinking skills 9. In their effort to streamline HR processes and increase employee retention and productivity, companies are implementing Web-based __________ applications.

Answer: employee relationship management (ERM) Difficulty: Medium Section Ref: 9.5 Human Resource Systems AACSB: Use of information technology

Essay Questions 1. Identify the three organizational and management levels. For each level, explain the types of decisions made, the focus and time horizon of those decisions, and the types of data that are needed for their decisions.

Answer: At the strategic level, senior or top level management plan and make decisions that set or impact the long-term direction of the entire organization. These decisions are visionary, future-oriented, and define the mission, objectives, and strategy. External data about the economy, competitors, and business trends are essential to their SWOT (strengths, weaknesses, opportunities, and threats) analysis, planning, and decisions.

At the managerial or administrative level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

Control is important at this level. Middle level managers set goals for their departments or business units that are consistent with organizational goals set by senior management. External and internal data are important for decision making, which often has a one to three year time horizon.

At the operational level, lower-level managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs. Decision-making is for the immediate or short-term because decisions are made to control the day-to-day activities or operations. The purpose of control is to identify deviations from objectives and plans as soon as possible in order to take corrective action.

Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB:

2. What is the purpose of an inventory control system? Identify the three cost categories where these systems are helpful in minimizing cost.

Answer: The function of inventory control systems, which are also called stock control or inventory management systems, is to minimize the total cost of inventory while maintaining optimal inventory levels.

Managing inventory is important to profit margins because of numerous costs associated with inventory, in addition to the cost of the inventory. Inventory control systems minimize the following three cost categories: Cost of holding inventory: warehousing costs, security costs, insurance, losses due to theft or obsolescence, and inventory financing costs based on the interest rate.

Cost of ordering and shipping: employees’ time spent ordering, receiving, or processing deliveries; and the shipping fees.

Cost of shortages: production delays and missed sales revenues because of stockouts Difficulty: Medium Section Ref: 9.2 Manufacturing, Production, and Transportation Systems AACSB: Use of information technology

3. Organizations distribute their products and services through a combination of electronic, mobile, and physical channels. List two examples of IT-supported distribution channels.

Answer: (Answers will vary.) Some examples are: In Macy’s and other department stores, shoppers can check the current price on scanners or screens with barcode readers.

Some stores have installed check-writers. Shoppers submit the blank check to the cashier, who runs it through a machine attached to the cash register. The machine prints the name of the store as the payee and the amount; the shopper signs the check, and in seconds the check is validated, your bank account is debited.

The Exxon Mobil Speedpass allows customers to fill their tanks by waving a token, embedded with an RFID device, at a gas-pump sensor. Then the RFID starts an authorization process, and the purchase is charged to your debit or credit card.

An increasing number of retailers are installing self-checkout machines. For example, Home Depot has self-checkouts in their stores. Not only does the retailer save the cost of employees’ salaries, but customers are happier for saving time.

Difficulty: Medium Section Ref: 9.3 Sales and Marketing Systems AACSB: Reflective thinking skills

4. List three benefits of XBRL for organizations.

Answer: XBRL helps: • • • • • • • •

Generate cleaner data, including written explanations and supporting notes.

Produce more accurate data with fewer errors that require follow-up by regulators.

Transmit data faster to regulators and meet deadlines.

Increase the number of cases and amount of information that staffers can handle.

Make information available faster to regulators and the public.

Address issues and concerns in their filings rather than after the fact.

Reduce report cycle time.

Lead to more efficient capital market.

Difficulty: Medium Section Ref: 9.4 Accounting, Finance, and Compliance Systems AACSB: Use of information technology

5. Some companies have adopted or are considering SaaS applications to help them with the HR function. However, other companies are apprehensive. List and briefly describe three reasons listed in your text that are holding companies back from using SaaS HR apps.

Answer: -Security. SaaS security may be as effective as security associated with in-house data centers, but many companies don’t understand the situation. Some early adopters are keeping highly sensitive applications in house.

-Quality of service. The lack of formal service-level agreements (SLA) or performance and availability means quality of service may be a risky issue for some organizations.

-Integration. Many companies have questions about their ability to integrate SaaS applications seamlessly with their in-house applications.

Difficulty: Medium Section Ref: 9.1 Management Levels and Functional Systems AACSB:

Chapter 10: Enterprise Systems and Applications Test Bank Multiple Choice 1. Organizations continue to run older business systems, called ______________ because they form the core of mission-critical computing systems. a. b. c. d.

Reduced-function IT Last gen software Legacy systems Bloat-ware

Answer: C Difficulty: Medium Section Ref: Quick Look at Chapter 10 AACSB:

2. Enterprise systems are integrated ISs that support core business processes and functions.

How is integration achieved? a. Integration is achieved by connecting wired and wireless computer networks so they can share applications. b. Integration is achieved by outsourcing to vendors that replace stand-alone ISs with a single IS. c. Integration is achieved by linking databases and data warehouses so they can share data. d. Integration is achieved by using cloud computing.

Answer: C Difficulty: Hard Section Ref: Quick Look at Chapter 10 AACSB:

3. When companies need to update mission critical computing systems, they often turn to ______________________ which integrate core business process and functions. a. b. c. d.

Legacy systems Enterprise information systems or enterprise systems Network solutions Custom built software apps

Answer: B Difficulty: Medium Section Ref: Quick Look at Chapter 10 AACSB: Reflective thinking skills

4. Companies use IT systems to manage the ______________ which starts with the acquisition of raw materials or the procurement (purchase) of products and proceeds through manufacture, transport, and delivery—and the disposal or recycling of products. a. b. c. d.

Strategic planning process Sales process Product production Supply chain

Answer: D Difficulty: Medium Section Ref: Opening Case: Managing the U.S. Munitions Supply Chain AACSB: Reflective thinking skills

5. The greatest challenges when implementing enterprise systems are due to _____. a. b. c. d.

The technologies Vendors Process and change management End-users

Answer: C Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB: Reflective thinking skills

6. Enterprise systems help managers and companies improve their performance by enabling them to __________. a. Distribute data and periodic reports via e-mail internally to authorized users b. Integrate internal business processes and improve collaboration with external business partners c. Consolidate data stores into a central data repository. d. Outsource business processes to SaaS vendors and eliminate waste.

Answer: B Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

7. __________ is the ability to thrive in a changing environment, which can be achieved by streamlining processes for quick response. a. b. c. d.

Agility Scalability Reengineering Collaborative planning

Answer: A Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

8. __________ are commercial software packages that integrate business processes, including supply chains, manufacturing, financial, human resources, budgeting, sales, and customer service. a. b. c. d.

CPFR systems ERP systems KM systems SCM software

Answer: B Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

9. With __________, supply chain partners collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them. a. b. c. d.

CPFR systems ERP systems KM systems SCM software

Answer: A Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

10. Which is not one of the reasons why companies might need to migrate from legacy systems to enterprise systems? a. Legacy systems have high maintenance costs. b. Monolithic legacy architectures are inflexible. c. Legacy systems are hardwired by predefined process flows making integration with Internet-based apps difficult or impossible. d. Enterprise systems require retraining of end users whose productivity will slow initially as they adjust to a new way of doing their jobs.

Answer: D Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

11. Implementing an enterprise system is challenging because it requires extensive organizational changes. Which of the following was not one of the required changes identified in your textbook? a. b. c. d.

Redesign of business processes Increased size of IT staff and technical personal Changes in how people perform their jobs Integration of many types of information systems

Answer: B Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

12. Each of the following describes ERP systems except: a. ERP apps interface with business partners through a B2B gateway, but cannot interface with legacy apps. b. From a technology perspective, ERP is the software infrastructure that links an enterprise’s internal apps and supports its external business processes. c. ERP apps are modular, and the modules are integrated with each other to expand capabilities. d. Departments can easily stay informed of what’s going on in other departments that impact its operations or performance.

Answer: A Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

13. Many ERP systems incorporate __________________ principles, which involve minimizing all forms of waste. a. b. c. d.

Eco-Tech Cost-centered Lean manufacturing Profit-focused

Answer: C Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

14. Business-to-business integration (B2Bi) is vital for efficient and accurate flow of data across internal ISs and external business partners. B2Bi and secure data exchange over the Internet is done through __________. a. b. c. d.

Wireless routers B2B gateways Data sources Enterprise application integration (EAI) middleware

Answer: B Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

15. Why are ERP systems strategic weapons for food manufacturers? a. The threats and potential costs associated with food safety have decreased because of data transparency. b. ERP systems have lowered global barriers to entry into the food industry. c. ERP systems are needed for controlling costs, managing inventory, and meeting government regulations given the food industry’s margin pressures. d. ERP systems are needed to monitor competitors’ business practices and quickly respond to them.

Answer: C Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

16. Typically, how are ERP systems acquired? a. b. c. d.

By purchasing or leasing packaged software Built in-house Built with proprietary software Custom built by consulting companies and vendors

Answer: A Difficulty: Easy Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

17. What is the first step toward becoming an agile manufacturer? a. b. c. d.

Reengineer financial business processes Develop the means to monitor the marketplace Develop new products and services for current and prospective customers Implement inventory tracking systems

Answer: B Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

18. Lessons learned from ERP failures include each of the following except: a. Several of the best companies have suffered devastating consequences from ERP failures that had led to multi-million dollar losses, bankruptcy, or lawsuits. b. Most often, ERP failures are eventually fixed and remain in use, which gives the false impression that the ERP was successful from the start. c. The success—as well as failure—of ERP depends on organizational and technological factors that occur prior to, during, and after the implementation. d. Vendor blogs, white papers, and YouTube posts are good sources of objective data for selecting a compatible ERP solution.

Answer: D Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

19. Despite potential benefits, not all companies invest in ERP if they cannot meet requirements or overcome the challenges. Which of the following is not one of those requirements or challenges? a. Applications must be tightly aligned with well-defined and designed business processes. b. Initial costs to purchase or lease and set up the ERP are very low, but maintenance might be extremely high. c. Initial costs to purchase or lease and set up the ERP may be extremely high. d. Apps may be too complex for employees to use correctly to improve efficiency and ROI. Answer: B Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

20. Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to __________. a. b. c. d.

Fraud Compliance failures Supply chain inefficiencies Quality control failures

Answer: C Difficulty: Easy Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

21. Supply chains involve three main flows. Which of the following is not one of those main flows? a. b. c. d.

Financial flow Resource flow Information flow Material or product flow

Answer: B Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

22. Products that are returned make up what is called the __________. a. b. c. d.

Reverse supply chain Return logistics Backflow Reorder fulfillment

Answer: A Difficulty: Easy Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

23. Accounting, inventory management, and shipping are part of order fulfillment and referred to as __________ operations. a. b. c. d.

Back-office Customer-facing Front-office Logistics

Answer: A Difficulty: Easy Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

24. Efficient, effective supply chains are fully dependent on SCM software, which depends on __________. a. b. c. d.

EFT ERP up-to-date and accurate data RFID

Answer: C Difficulty: Easy Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB: Use of information technology

25. The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as__________. a. b. c. d.

Produce-to-stock Build-to-order JIT Safety stock

Answer: B Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

26. The most common solution to supply chain uncertainties is to build inventories or __________ as insurance. a. b. c. d.

Safety stock Stock outs Continuous replenishment Restocking

Answer: A Difficulty: Easy Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

27. __________ is a supply chain relationship in which a vendor continuously monitors the inventory of a retailer or distributor and automatically replenishes their inventory when levels hit the re-order point. a. b. c. d.

Safety stock Stockouts Continuous replenishment Bullwhip effect

Answer: C Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

28. Variability in demand in the supply chain is amplified as orders move up the supply chain.

This phenomenon is called __________. a. b. c. d.

Market shifts The bullwhip effect Continuous replenishment Demand forecasting

Answer: B Difficulty: Easy Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

29. Supply chain collaboration can increase profit margins by as much as __________ percent for supply chain partners, which is a significant improvement. a. b. c. d.

3 6 9 12

Answer: A Difficulty: Easy Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

30. __________ is a set of business practices designed to improve the ability to predict and coordinate with supply chain partners. a. b. c. d.

B2B e-commerce Continuous replenishment Collaborative planning, forecasting, and replenishment (CPFR) Vendor managed inventory (VMI)

Answer: C Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

31. Data transfer between companies is done using __________, which is a communication standard that enables the electronic transfer of routine documents, such as purchase orders, between business partners. a. b. c. d.

RFID collaborative planning, forecasting, and replenishment (CPFR) vendor managed inventory (VMI) electronic data interchange (EDI)

Answer: D Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB: Use of information technology

32. Attracting and acquiring new customers is estimated to costs banks roughly __________ per new customer. a. b. c. d.

$10 $25 $50 $100

Answer: D Difficulty: Easy Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB:

33. Retaining customers that generate revenues in excess of the costs of customer service, returns, promotional items, and the like are critical; and are the underlying reason for __________. a. b. c. d.

EDI ERP CRM SCM

Answer: C Difficulty: Easy Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB: Use of information technology

34. What is the purpose of frequent purchase programs offered by airlines, supermarkets, credit card issuers, retailers, casinos, and other companies? a. b. c. d.

To track customers for CRM purposes To build customer loyalty to improve financial performance To deter customer attrition All of the above

Answer: D Difficulty: Medium Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB: Use of information technology

35. According to the loyalty effect, a five percent reduction in customer attrition can improve profits by as much as __________ percent. a. b. c. d.

5 10 15 20

Answer: D Difficulty: Easy Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB: 36. Apple’s iPhone and iPod are best examples of __________ business strategies because demand was so high that many customers were even willing to camp out on sidewalks to guarantee getting one on the day of their releases. a. b. c. d.

customer-centric product-centric upselling cross-selling

Answer: A Difficulty: Medium Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB:

37. There have been many CRM failures reported in the media. Major issues relating to CRM failures include each of the following except: a. Customers rejecting loyalty programs or attempts to build loyalty. b. Failure to identify and focus on specific business problems that the CRM can solve. c. Lack of active senior management sponsorship. d. Trying to automate a poorly defined business process in the CRM implementation.

Answer: A Difficulty: Medium Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB:

True/False 1. Companies use IT systems to manage the supply chain which starts with the acquisition of raw materials or the procurement (purchase) of products and proceeds through manufacture, transport, and delivery—and the disposal or recycling of products.

Answer: True Difficulty: Easy Section Ref: Opening Case: Managing the U.S. Munitions Supply Chain AACSB: Use of information technology

2. Enterprise systems allow workers to access and analyze real-time information and transaction processes across the entire organization.

Answer: True Difficulty: Easy Section Ref: 10.1 Enterprise Systems AACSB: Use of information technology

3. A limitation of enterprise systems is that finance processes cannot be totally automated.

Answer: False Difficulty: Easy Section Ref: 10.1 Enterprise Systems AACSB: Use of information technology 4. SCM is the software infrastructure that links an enterprise’s internal applications and supports its external business processes.

Answer: False Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB: Use of information technology

5. CPFR is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners.

Answer: True Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB:

6. In a survey conducted by Food Engineering magazine, the top concern of the agri-food industry was food safety in large part because worldwide distribution systems have increased the risk and range of contaminated food entering the food supply.

Answer: True Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

7. Many ERP systems incorporate Eco-Tech (ET) principles, which involve minimizing all forms of waste.

Answer: False Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

8. Organizations are implementing CRM systems to meet requirements of the Bioterrorism Act and other regulations for accurate record keeping.

Answer: False Difficulty: Easy Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

9. Database vendors such as Oracle and IBM are also enterprise system vendors.

Answer: True Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

10. Business-to-business integration (B2Bi) is vital for efficient and accurate flow of data across internal ISs and external business partners. B2Bi and secure data exchange over the Internet is done through Enterprise application integration (EAI) middleware Answer: False Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

11. The journey that a product travels starting with raw material suppliers onto manufacturers or assemblers, then forward to distributors and retail sales shelves and ultimately to customers is its product life cycle.

Answer: False Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

12. The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as build-to-order.

Answer: True Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

13. The most common solution to supply chain uncertainties is to build inventories or safety stock as insurance, but that can cause the bullwhip effect in the supply chain.

Answer: True Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB: Use of information technology

14. CPFR systems generate demand forecasts for a planning period, such as a quarter, month, or week.

Answer: True Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB: Use of information technology

15. According to management guru Peter Drucker, “Those companies who know their customers, understand their needs, and communicate intelligently with them will always have a competitive advantage over those that don’t."

Answer: True Difficulty: Easy Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB:

16. CRM software enabled Travelocity to analyze clickstream data and discover how customers use their Web site. This information is leveraged to provide meaningful personalized messages in real-time, that is, while customers are using the site.

Answer: True Difficulty: Medium Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB: Use of information technology

Short Answer 1. Companies use IT systems to manage the _____________ which starts with the acquisition of raw materials or the procurement (purchase) of products and proceeds through manufacture, transport, and delivery—and the disposal or recycling of products.

Answer: Supply chain Difficulty: Easy Section Ref: Opening Case: Managing the U.S. Munitions Supply Chain AACSB: Use of information technology

2. Older information systems (IS), called __________, have been built with various outdated technologies.

Answer: legacy systems Difficulty: Medium Section Ref: Quick Look at Chapter 10 AACSB: Use of information technology

3. With __________ systems, suppliers and retailers collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them.

Answer: CPFR Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB: Use of information technology

4. An ERP interfaces with legacy applications through a(n) __________ layer.

Answer: enterprise application integration (EAI) Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

5. Many ERP systems incorporate __________________ principles, which involve minimizing all forms of waste.

Answer: Lean manufacturing Difficulty: Hard Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB:

6. __________ connect the ERP in the enterprise to external business partners.

Answer: B2B gateways Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: 7. The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as ___________________.

Answer: build-to-order Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

8. The __________ occurs when companies significantly cut or add inventories because even small increases in demand can cause a big increase in the need for parts and materials further down the supply chain.

Answer: Bullwhip effect Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB:

9. The transfer of data and document between supply chain partners is done using __________, which is a communication standard.

Answer: electronic data interchange (EDI) Difficulty: Medium Section Ref: 10.4 Collaborative Planning, Forecasting, and Replenishment (CPFR) Systems AACSB: Use of information technology

10. _________ refers to the methodologies and software tools to leverage customer information in order to achieve customer loyalty and profits, deter customer attrition, upsell, cross-sell, and reduce inefficiencies that waste advertising dollars.

Answer: CRM Difficulty: Medium Section Ref: 10.5 Customer Relationship Management (CRM) Systems AACSB:

Essay 1. List and describe three types of enterprise systems.

Answer: See Table 10.1 Table 10.1

Descriptions of Enterprise Systems

Name Enterprise Resource Planning

Abbreviation

Description

ERP

Supply Chain Management

SCM

Collaborative Planning, Forecasting, and Replenishment

CPFR

Customer Relationship Management

CRM

ERP software apps integrate all departments and functions across an organization onto a single information system that can serve each department’s particular needs.

ERP systems are commercial software packages that integrate business processes, including supply chains, manufacturing, financial, human resources, budgeting, sales, and customer service.

SCM software supports procurement, manufacturing, storage, inventory control, scheduling, and transportation.

CPFR is an extension of SCM and ERP—and focuses on improving prediction (or reducing uncertainty).With better prediction, members of the supply chain have the right amount of raw materials and finished goods when they need them.

CRM systems create a total view of customers to maximize share-of-wallet and profitability. CRM is also a business strategy to segment and manage customers to optimize customer lifetime value (CLV).

Difficulty: Easy Section Ref: 10.1 Enterprise Systems AACSB:

2. Why do companies migrate to enterprise systems from their existing legacy systems? List and briefly describe three reasons.

Answer: •

High maintenance costs. Maintaining and upgrading legacy systems are some of the most difficult challenges facing CIOs (chief information officers) and IT departments.

•

Business value deterioration. Technological change weakens the business value of legacy systems that have been implemented over many years and at huge cost.

•

Inflexibility. Monolithic legacy architectures are inflexible. That is, these huge systems cannot be easily re-designed to share data with newer systems unlike modern architectures.

•

Integration obstacles. Legacy systems execute business processes that are hardwired by rigid, predefined process flows. Their hardwiring makes integration with other systems such as CRM and Internet-based applications difficult and sometimes impossible.

•

Lack of staff. IT departments find it increasingly difficult to hire staff who are qualified to work on applications written in languages no longer used in modern technologies.

Difficulty: Medium Section Ref: 10.1 Enterprise Systems AACSB: Reflective thinking skills

3. Why are ERP systems worth their cost? That is, how do companies justify ERP investments?

Answer: Decisions are only as good as the timeliness and completeness of the data on which they’re based. The more complete the data, the less the uncertainty and risk involved in the decision process. An ERP provides the integration and automation that makes timely and complete data possible. So it’s not surprising that establishing a reliable pipeline of data from internal functions and external business partners is a priority for businesses in every industry and of all sizes.

Difficulty: Medium Section Ref: 10.2 Enterprise Resource Planning (ERP) Systems AACSB: Use of information technology

4. Identify and briefly describe the three types of flows in supply chains.

Answer: Supply chains involve the flow of materials, data, and money. Descriptions of these three main flows are: 1. Material or product flow: This is the movement of materials and goods from a supplier to its consumer.

2.

Information flow: This is the movement of detailed data among members of the supply chain, e.g., order information, customer information, order fulfillment, delivery status, and proof-of-delivery confirmation. Most information flows are done electronically although paper invoices or receipts are still common for non-commercial customers.

3.

Financial flow: This is the transfer of payments and financial arrangements, e.g., billing payment schedules, credit terms, and payment via electronic funds transfer (EFT).

Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB: Use of information technology

5.

Identify and discuss four of the steps in the order fulfillment process.

Answer: Step 1: Make sure the customer will pay. Depending on the payment method and prior arrangements with the customer, verify that the customer can and will pay and the payment terms. This activity is done by the finance department for B2B sales or an external company, such as PayPal or a credit card issuer such as Visa for B2C sales.

Step 2: Check in-stock availability, and re-order as necessary. As soon as an order is received, the stock (inventory) is checked to determine the availability of the product or materials. If there’s not enough stock, the ordering system places an order, typically automatically using EDI (electronic data interchange).

Step 3: Arrange shipments. When the product is available, shipment to the customer is arranged. Products can be digital or physical. If the item is physical and it’s readily available, packaging and shipment arrangements are made. Both the packaging/shipping department and internal shippers or outside transporters may be involved.

Step 4: Insurance. Sometimes the contents of a shipment need to be insured. Both the finance department and an insurance company could be involved, and again, information needs to flow, not only inside the company, but also to and from the customer and insurance agent.

Step 5: Replenishment. Customized orders will always trigger a need for some manufacturing or assembly operation. Similarly, if standard items are out of stock, they need to be produced or procured.

Step 6: In-house production. In-house production needs to be planned and actual production needs to be scheduled. Production planning involves people, materials, components, machines, financial resources, and possibly suppliers and subcontractors.

Step 7: Use suppliers. A manufacturer may opt to buy products or subassemblies from suppliers. Similarly, if the seller is a retailer, such as in the case of Amazon.com or Walmart.com, the retailer must purchase products from its manufacturers. In this case, appropriate receiving and quality assurance of incoming materials and products must take place.

Step 8: Contacts with customers. Sales representatives need to keep in close contact with customers, especially in B2B, starting with notification of orders received and ending with notification of a shipment or a change in delivery date. These contacts are usually done via email and are frequently generated automatically.

Step 9: Returns. In some cases, customers want to exchange or return items. The movement of returns from customers back to vendors is reverse logistics.

Difficulty: Medium Section Ref: 10.3 Supply Chain Management (SCM) Systems AACSB:

Chapter 11: Performance Management using Data Visualization, Mashups, and Mobile Intelligence Test Bank Multiple Choice 1. _______________________________pull data from business intelligence (BI) systems, data warehouses, and other internal and external data stores; then display them in meaningful graphics with drill-down capabilities. a. b. c. d.

Info-graphics Spread-sheet graphics Design systems Visualization (viz) technologies

Answer: D Difficulty: Medium Section Ref: Quick Look at Chapter 11 AACSB: Use of information technology

2. _________________ refers to the process of discovering relationships using data analytics tools, such as statistical software, statistical graphing, and mapping software. a. b. c. d.

Pattern mapping Configuration assessment Data discovery Statistical testing

Answer: C Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

3. Companies are investing in the latest data discovery solutions largely because of ____________________. a. b. c. d.

Dramatically lower costs Increased speed and flexibility The ability to run on PC (Windows) and Apple computers Ease of deployment

Answer: B Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

4. Rows and rows of data on their own are boring and take a lot of time and effort to understand. _____________________ presents data in engaging ways and helps communicate complex ideas quicker. a. b. c. d.

Statistical models Data discovery Data visualization Data models

Answer: C Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

5. Which of the following is not one of the data visualization trends discussed in your textbook? a. As viz software tools get easier, everyone will be able to design or develop visualizations. b. As the need to measure, assess, and report results increase, data viz will become more important in business, health care, society, and government. c. Data art will lead to better aesthetics in functional visualizations. d. Future data viz apps will include sound as an additional feature, adding even more depth and clarity to the information.

Answer: D Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

6. For the business intelligence (BI) industry, tablets and data visualization apps are considered ______________ technologies. a. b. c. d.

Disruptive Expanded Speculative Mainstream

Answer: A Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology 7. A “heat map” uses _____________ to indicate trends or patterns in data. a. b. c. d.

Temperature Trend lines Color Dials or gauges

Answer: C Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

8. Which of the following is not one of the three characteristics of successful data visualization apps described in your textbook? a. b. c. d.

Accuracy Aesthetically pleasing Low cost Flexible

Answer: C Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

9. A(n) ______________ is a technique for building applications that combine data from multiple sources to create an integrated experience. a. b. c. d.

Integrated data graphic Mashup Multi-media presentation Enterprise graphic

Answer: B Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

10. An application that integrates data from operational data stores, business systems, external data (economic data, suppliers; information, competitors’ activities) and real-time news feeds is referred to as a(n) _____________________. a. b. c. d.

Enterprise mashup Enterprise graphic Operational systems mashup (OSM) Multi-source/Multi-media presentation

Answer: A Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 11. According to your text, mashup apps are designed based on three “tiers”. Which of the following is not one of the three tiers or layers of a mashup app? a. b. c. d.

Presentation tier Media tier Logic tier Data tier

Answer: B Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

12. Which of the following is not an example of an enterprise data mashup discussed in your textbook? a. b. c. d.

Interactive dashboard Drillable report Heat map GPS

Answer: D Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

13. In terms of benefits, mashup apps decrease _____________________ compared to traditional, custom software development. a. b. c. d.

IT implementation costs System downtime Computational errors Interpretational errors

Answer: A Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

14. Which of the following is not a benefit of enterprise mashup apps identified in your textbook? a. Dramatically reduces time and effort needed to combine disparate data sources b. Users can define their own data mashups by combining fields from different data sources that were not previously modeled c. Users can access data from multiple competitor data warehouses to gain business intelligence (BI) d. Enables the building of complex queries by non-experts with a drag-and-drop query-building tool Answer: C Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

15. Using ________________________, nontechnical users can easily and quickly access, integrate, and display BI data from a variety of operational data sources, including those that are not integrated into the existing data warehouse, without having to understand the intricacies of the underlying data infrastructures, or schemas. a. b. c. d.

Self-service data mashup apps Modular software Object programming language (OPL) Flexible mashup programming (FMP)

Answer: A Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 16. ____________________ give visual snapshots of an organization’s critical operational data or key performance indicators (KPIs) to spot problems, trends, outliers, opportunities, and patterns. a. b. c. d.

Enhanced spreadsheets Business dashboards Cloud based graphics Enterprise graphics

Answer: B Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

17. According to your textbook, the two key components of a business dashboard are design and _________________. a. b. c. d.

Functionality Mobility Performance metrics Accessibility

Answer: C Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

18. The real value of business dashboards (compared to reports) is that they provide users with a clear view of the ________________ of KPIs and other operational metrics. a. b. c. d.

Past performance Current performance Projected performance Desired performance

Answer: B Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

19. According to research by Gartner, a recent advance in the area of business intelligence and the use of dashboards is the increasing popularity of ____________________. a. b. c. d.

Mobile dashboards Social dashboards Analytic dashboards Multi-media dashboards

Answer: A Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

20. Which of the following was not listed in your textbook as a current limitation or challenge related to mobile intelligence? a. b. c. d.

Insufficient analytic capabilities BYOD (bring your own device) policies and practices Insufficient data sources Screen size

Answer: C Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

21. Which of the following factors was not listed in your textbook as a reason for increased adoption of mobile intelligence apps? a. b. c. d.

Reduced costs and increased analytic capabilities Increased interest on the part of chief executives Increase adoption of tablets, in particular, the iPad Potential benefits for use by line-of-business managers and team leaders

Answer: A Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

22. Which of the following factors was not listed in your textbook as a reason for increased adoption of mobile intelligence apps? a. b. c. d.

Reduced costs and increased analytic capabilities Increased interest on the part of chief executives Increase adoption of tablets, in particular, the iPad Potential benefits for use by line-of-business managers and team leaders

Answer: A Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

True/False 1. Visualization (viz) technologies pull data from business intelligence (BI) systems, data warehouses, and other internal and external data stores; then display them in meaningful graphics with drill-down capabilities.

Answer: True Difficulty: Easy Section Ref: Quick Look at Chapter 11 AACSB: Use of information technology

2. Infographics pull data from business intelligence (BI) systems, data warehouses, and other internal and external data stores; then display them in meaningful picture format with drilldown capabilities.

Answer: False Difficulty: Easy Section Ref: Quick Look at Chapter 11 AACSB: Use of information technology

3. Data discovery refers to the process of discovering relationships using data analytics tools, such as statistical software, statistical graphing, and mapping software.

Answer: True Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

4. The process of discovering relationships using data analytics tools, such as statistical software, statistical graphing, and mapping software is referred to as pattern mapping.

Answer: False Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

5. Companies are investing in the latest data discovery solutions largely because of increased speed and greater flexibility.

Answer: True Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

6. Rows and rows of data on their own are boring and take a lot of time and effort to understand. Data discovery presents data in engaging ways and helps communicate complex ideas quicker.

Answer: False Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

7. Rows and rows of data on their own are boring and take a lot of time and effort to understand. Data visualization presents data in engaging ways and helps communicate complex ideas quicker.

Answer: True Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB:

8. As viz software tools get easier, everyone will be able to design or develop visualizations.

Answer: True Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

9. As the need to measure, assess, and report results increase, data viz will become more important in business, health care, society, and government.

Answer: True Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

10. As the need to measure, assess, and report results increase, data viz will become less important in business, health care, and government.

Answer: False Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

11. In the near future data viz apps will include sound as an additional feature, adding even more depth and clarity to the information.

Answer: False Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

12. For the business intelligence (BI) industry, tablets and data visualization apps are considered disruptive technologies.

Answer: True Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology 13. A “heat map” uses color to indicate trends or patterns in data.

Answer: True Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology 14. A “heat map” uses dials and gauges to indicate trends or patterns in data.

Answer: False Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

15. According to your textbook, successful data visualization apps are accurate, aesthetically pleasing and flexible.

Answer: True Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

16. According to your textbook, the three most important characteristics of successful data visualization apps are low cost, low maintenance and require minimal amounts of data.

Answer: False Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

17. A mashup is a technique for building applications that combine data from multiple sources to create an integrated experience.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

18. Integrated data graphic programming is a technique for building applications that combine data from multiple sources to create an integrated experience.

Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

19. An application that integrates data from operational data stores, business systems, external data (economic data, suppliers; information, competitors’ activities) and real-time news feeds is referred to as an enterprise mashup.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

20. An application that integrates data from operational data stores, business systems, external data (economic data, suppliers; information, competitors’ activities) and real-time news feeds is referred to as an multi-media multi-source (M3S) presentation .

Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 21. According to your text, mashup apps are designed based on three “tiers”. The presentation tier represents the user interface.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 22. According to your text, mashup apps are designed based on three “tiers”. The logic tier coordinates the application, processes commands, makes logical decisions and evaluations, and performs calculations.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 23. According to your text, mashup apps are designed based on three “tiers”. The data tier is where information is stored and retrieved from a database or file system.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 24. According to your text, mashup apps are designed based on three “tiers”. The primary tier represents the user interface.

Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

25. According to your text, mashup apps are designed based on three “tiers”. The analytical tier coordinates the application, processes commands, makes logical decisions and evaluations, and performs calculations.

Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 26. According to your text, mashup apps are designed based on three “tiers”. The warehouse tier is where information is stored and retrieved from a database or file system.

Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

27. Interactive dashboards and drillable reports are examples of enterprise data mashup apps discussed in your textbook.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

28. In terms of benefits, mashup apps decrease IT implementation costs compared to traditional, custom software development.

Answer: True Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

29. In terms of benefits, mashup apps decrease computational errors compared to traditional, custom software development.

Answer: False Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

30. One benefit of enterprise mashup apps listed in your textbook is that they dramatically reduce the time and effort needed to combine disparate data sources Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

31. One benefit of enterprise mashup apps listed in your textbook is that users can define their own data mashups by combining fields from different data sources that were not previously modeled Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

32. One benefit of enterprise mashup apps listed in your textbook is that users can access data from multiple competitor data warehouses to gain business intelligence (BI) Answer: False Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

33. One benefit of enterprise mashup apps listed in your textbook is that they enable the building of complex queries by non-experts with a drag-and-drop query-building tool Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

34. Using self-service data mashup apps, nontechnical users can easily and quickly access, integrate, and display BI data from a variety of operational data sources, including those that are not integrated into the existing data warehouse, without having to understand the intricacies of the underlying data infrastructures, or schemas.

Answer: True Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 35. Business dashboards give visual snapshots of an organization’s critical operational data or key performance indicators (KPIs) to spot problems, trends, outliers, opportunities, and patterns.

Answer: True Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology 36. Enhanced spreadsheets give visual snapshots of an organization’s critical operational data or key performance indicators (KPIs) to spot problems, trends, outliers, opportunities, and patterns.

Answer: False Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

37. According to your textbook, the two key components of a business dashboard are design and performance metrics.

Answer: True Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

38. According to your textbook, the two key components of a business dashboard are functionality and accessibility.

Answer: False Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

39. The real value of business dashboards (compared to reports) is that they provide users with a clear view of the current performance of KPIs and other operational metrics.

Answer: True Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

40. The real value of business dashboards (compared to reports) is that they provide users with a clear view of the projected performance of KPIs and other operational metrics.

Answer: False Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

41. According to research by Gartner, a recent advance in the area of business intelligence and the use of dashboards is the increasing popularity of mobile dashboards.

Answer: True Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

42. According to your textbook, insufficient data sources was listed as a current limitation or challenge related to mobile intelligence.

Answer: False Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

Short Answer 1. _______________________________pull data from business intelligence (BI) systems, data warehouses, and other internal and external data stores; then display them in meaningful graphics with drill-down capabilities.

Answer: Visualization (viz) technologies Difficulty: Medium Section Ref: Quick Look at Chapter 11 AACSB: Use of information technology

2. _________________ refers to the process of discovering relationships using data analytics tools, such as statistical software, statistical graphing, and mapping software.

Answer: Data discovery Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

3. Rows and rows of data on their own are boring and take a lot of time and effort to understand.

Data _____________________ apps present data in engaging ways and helps communicate complex ideas quicker.

Answer: Visualization Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

4. For the business intelligence (BI) industry, tablets and data visualization apps are considered ______________ technologies, replacing static business reports with real-time data, analytics, and interactive reporting tools.

Answer: Disruptive Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

5. A “heat map” uses _____________ to indicate trends or patterns in data.

Answer: Color Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

6. The three characteristics of successful data visualization apps described in your textbook include _________________ , aesthetically pleasing and flexibility.

Answer: Accuracy Difficulty: Medium Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

7. A(n) ______________ is an application that combines data from multiple sources to create an integrated experience or new functionality.

Answer: Mashup Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

8. An business application that integrates data from operational data stores, business systems, external data (economic data, suppliers; information, competitors’ activities) and real-time news feeds is referred to as a(n) _____________________ mashup.

Answer: Enterprise Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 9. According to your text, mashup apps are designed based on three “tiers”. The ______________ tier represents the user interface.

Answer: Presentation Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

10. According to your text, mashup apps are designed based on three “tiers”. The ______________ tier coordinates the application, processes commands, makes logical decisions and evaluations, and performs calculations.

Answer: Logic Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 11. According to your text, mashup apps are designed based on three “tiers”. The ______________ tier is where information is stored and retrieved from a database or file system.

Answer: Data Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology 12. Interactive dashboards, drillable reports, heat maps and tree maps are all examples of _______________ applications.

Answer: Mashup (or Data visualization) Difficulty: Easy Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

13. In terms of benefits, mashup apps decrease _____________________ over traditional, custom software development.

Answer: IT implementation costs Difficulty: Hard Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

14. Using ________________________, nontechnical users can easily and quickly access, integrate, and display BI data from a variety of operational data sources, including those that are not integrated into the existing data warehouse, without having to understand the intricacies of the underlying data infrastructures, or schemas.

Answer: Self-service data mashup apps Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

15. ____________________ give visual snapshots of an organization’s critical operational data or key performance indicators (KPIs) to spot problems, trends, outliers, opportunities, and patterns.

Answer: Business dashboards Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

16. According to your textbook, the two key components of a business dashboard are design and _________________.

Answer: Performance metrics Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

17. The real value of business dashboards (compared to reports) is that they provide users with a clear view of the ________________ of KPIs and other operational metrics.

Answer: Current performance or real-time view Difficulty: Medium Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

18. According to research by Gartner, a recent advance in the area of business intelligence and the use of dashboards is the increasing popularity of ____________________.

Answer: Mobile dashboards Difficulty: Easy Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

Essay Questions 1. Briefly describe the difference between “Data Visualization” and “Data Discovery”.

Answer: Data visualization is a broad term referring both to the visual representation of data and to the study of the presentation of data in a visual way.

Data discovery refers to the process of discovering relationships using data analytics tools, such as statistical software, statistical graphing, and mapping software. Data visualization tools can be used to “discover” trends and relationships in the data because the graphic tools make these relationships easier to observe.

Difficulty: Easy Section Ref: 11.1 Data Visualization and Data Discovery AACSB: Use of information technology

2. Sketch or describe the architecture of an enterprise mashup application.

Answer: Presentation Tier: The main function of the interface is to translate tasks and results to something the user can understand.

Logic Tier: This layer coordinates the application, processes commands, makes logical decisions and evaluations, and performs calculations. It also moves and processes data between the two surrounding layers.

Data Tier: Here information is stored and retrieved from a database or file system. The information is then passed back to the logic tier for processing, and then eventually back to the user.

Business logic (logic tier ) manages the data exchange between a database (data tier ) and the user interface (presentation tier ), as shown in Figure 11.9 in the textbook.

Difficulty: Medium Section Ref: 11.2 Enterprise Data Mashups AACSB: Use of information technology

3. Explain how business dashboards are superior to traditional business reports in terms of providing information to managers.

Answer: The purpose of dashboards is to give users a clear view of the current state of KPIs, real-time alerts, and other metrics about operations. Having real-time, or near-real time, data is essential to keep users aware of any meaningful changes in the metrics as they occur and to provide information for making decisions in real time. Users can take corrective actions promptly. The best dashboards are optimized for real-time alerts and feedback.

Difficulty: Easy Section Ref: 11.3 Business Dashboards AACSB: Use of information technology

4. List and briefly describe 2 current limitations/challenges affecting adoption of mobile intelligence.

Answer: Analytics not available. Most mobile intelligence apps let users view, but not manipulate data.

The inability to do analytics will eventually be overcome. Most dashboards allow the user to drill down, but interactive capabilities are less common.

Mobile intelligence linked to BI platform. Typically, mobile intelligence is sold as an add-on module to a specific BI platform. Companies that have more than one BI platform can buy and implement a module for each platform, which can be expensive and complex.

BYOD (bring your own device) policies and practices. Another challenge for organizations is how to integrate mobile intelligence with BYOD policies for employees. The iPad is the device of choice for mobile intelligence, but not everyone uses an iPad. Trying to support iPhones, Android handsets and BlackBerrys, and iPads increases complexity and costs.

Screen size. Naturally, screen size limits what can be displayed, such as being able to show only one data element in a chart. But users’ touch-interface speed and agility compensate for that limitation.

Difficulty: Hard Section Ref: 11.4 Mobile Dashboards and Intelligence AACSB: Use of information technology

Chapter 12: IT Strategy, Sourcing, and Vendor Relationships Test Bank Multiple Choice 1. What can managers expect from making IT investments on the basis of an immediate need that is isolated from business strategy? a. b. c. d.

Maximize ROI. Minimize long-term costs.

Suboptimal outcomes Competitive advantage

Answer: C Difficulty: Hard Section Ref: Quick Look at Chapter 12 AACSB:

2. By aligning IT strategic planning with the business strategy, companies can __________. a. b. c. d.

Build differentiating capabilities Reduce planning time Define their operating plan Increase their use of cloud computing

Answer: A Difficulty: Medium Section Ref: Quick Look at Chapter 12 AACSB:

3. Cloud computing and software-as-a-service (SaaS) are two __________ options. a. b. c. d.

In-house development Offshoring Sourcing BYOD

Answer: C Difficulty: Hard Section Ref: Quick Look at Chapter 12 AACSB: Use of information technology

4. The effectiveness of the IT function relies heavily on each of the following except: a. b. c. d.

Relationships with vendors Implementing the latest social networks Relationships with third-party suppliers IT governance

Answer: B Difficulty: Medium Section Ref: Quick Look at Chapter 12 AACSB:

5. Consumer banks need to reassess their business strategies because of pressures and challenges, which include all of the following except ________________. a. b. c. d.

Limited growth opportunities PayPal, Mint, and Prosper are eroding their customer base Fierce competition has decreased revenues Lower risk and regulatory constraints

Answer: D Difficulty: Medium Section Ref: Chapter 12 Opening case AACSB:

6. Which of the following is not a customer-centric technology? a. b. c. d.

Mobility High-end analytics SaaS Big data management

Answer: C Difficulty: Medium Section Ref: Chapter 12 Opening case AACSB:

7. ________________ refers to anytime/anywhere connectivity to clients, customers, and employees. a. b. c. d.

Mobility High-end analytics SaaS Big data management

Answer: A Difficulty: Medium Section Ref: Chapter 12 Opening case AACSB:

8. __________ results in faster development of new apps because by reusing services or functions. a. b. c. d.

Mobility High-end analytics Service-oriented architecture (SO Cloud computing

Answer: C Difficulty: easy Section Ref: Chapter 12 Opening case AACSB:

9. Typically, ITs that provide competitive advantages, or that contain proprietary or confidential data are developed and maintained by __________. a. b. c. d.

Consulting companies The in-house IT function A single vendor Multiple vendors

Answer: B Difficulty: Hard Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: Reflective thinking skills

10. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies' strategic success. In addition, the survey reported that __________. a. Most business leaders work with IT to achieve success b. Most IT staff are very involved in the process of developing business strategy c. Only about one-third of business executives responsible for strategy work closely with the IT department d. IT projects are rarely abandoned Answer: C Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

11. Which is not one of the reasons why an IT project is discontinued or abandoned? a. b. c. d.

The project was under-budget The business strategy changed Technology changed The project sponsors did not work well together

Answer: A Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

12. An organization’s __________ define(s) why it exists. a. b. c. d.

Strategy Objectives Targets Mission statement

Answer: D Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

13. __________ are the desired levels of performance. a. b. c. d.

Strategy Objectives Targets Visions

Answer: C Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: 14. An organization’s __________ are action-oriented statements, such as achieve a 10 percent ROI in 2015, which define the continuous improvement activities that must be done to be successful. a. b. c. d.

Strategies Objectives Targets Mission statement

Answer: B Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

15. ____________________ are the most essential things that must go right or be closely tracked in order to ensure the organization's survival and success. a. b. c. d.

Critical success factors (CSFs) Data services Application services Balanced scorecard

Answer: A Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

16. IT governance is concerned with insuring that organizational investments in IT __________. a. b. c. d.

Support operations Provide sustainable competitive advantage Deliver full value Are audited quarterly

Answer: C Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

17. It is the duty of the __________ to insure that information systems, technology, and other critical activities are effectively governed. a. b. c. d.

IT function Board of Directors (BO End users HR function

Answer: B Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

18. IT governance covers each of the following areas except: a. b. c. d.

Inventory management Resource management Risk management Strategy support

Answer: A Difficulty: Easy Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

19. Characteristics of resources that can help firms create a competitive advantage include all of the following except: a. b. c. d.

Appropriability Governance Rarity Value

Answer: B Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

20. Why is it necessary to develop a long-term IT strategy and reexamine the strategy on a regular basis? a. b. c. d.

Systems need to be maintained To keep the CIO part of the executive team Organizational goals change over time To automate business processes

Answer: C Difficulty: Hard Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

21. The __________ is a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the IS department is meeting the needs of the enterprise. a. b. c. d.

Steering committee Board of directors Executive suite Audit team

Answer: A Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

22. Based on case studies, which type of work is not readily offshored? a. Work that has been routinized b. Business activities that rely on common knowledge c. Situations that would expose the client company to too much data security or privacy risks d. Office work Answer: C Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: 23. For best results, an organization’s strategic IT plan is based on __________. a. b. c. d.

IT governance Cloud computing The latest mobile technologies The strategic business plan

Answer: D Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: Use of information technology

24. All of the following are tools or methodologies that managers use for IT strategic planning except: a. b. c. d.

Business service management Business systems planning model Balanced scorecard Dashboards

Answer: D Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

25. Business service management is an approach for linking __________ or metrics of IT to business goals to determine the impact on the business. a. b. c. d.

Key performance indicators (KPIs) Critical success factors (CSFs) Scorecards Financials

Answer: A Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

26. What do managers use KPIs for? a. b. c. d.

To measure real-time performance To predict future results To measure results of past activity All of the above

Answer: D Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

27. __________ are the most essential things that must go right, or be closely tracked, to ensure the organization's survival and success. a. b. c. d.

Key performance indicators (KPIs) Critical success factors (CSFs) Scorecards Financials

Answer: B Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

28. Which is not one of the characteristics of critical success factors (CSFs)? a. Organizations in the same industry have the same CSFs. b. The CSF approach was developed to help identify the information needs of managers. c. The fundamental assumption is that in every organization there are three to six key factors that, if done well, will result in the organization's success. d. The failure of these factors will result in some degree of failure at the organization.

Answer: A Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

29. __________ is used in planning situations that involve much uncertainty, like that of IT in general and e-commerce in particular. a. b. c. d.

Key performance indicators (KPIs) Scenario planning Critical success factors (CSFs) Balanced scorecard

Answer: B Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: Use of information technology

30. Resource allocation is a contentious process in most organizations because opportunities and requests for spending far exceed the available funds. This can lead to __________ among organizational units, which makes it __________ to objectively identify the best investments. a. b. c. d.

Highly political competition; difficult Highly political competition; easier Cooperation; simple Cooperation; difficult

Answer: A Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

31. The __________ of organizations are the things they do best and that represent their competitive strengths. a. b. c. d.

Competitive advantages Customer-facing activities Core competencies Back office functions

Answer: C Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

32. Outsourcing can be done __________. a. b. c. d.

Domestically or offshore Via cloud computing or SaaS Via business processing a and b

Answer: D Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: Use of information technology

33. Cloud computing is for outsourcing of __________. a. b. c. d.

Routine tasks Routine tasks and the delivery of real business services Proprietary systems Nonproprietary applications

Answer: B Difficulty: Hard Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: Use of information technology

34. __________ is the process of hiring another company to handle business activities for you. a. b. c. d.

Cloud computing Business processing outsourcing (BPO) SaaS IT outsourcing

Answer: B Difficulty: Hard Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: Use of information technology

35. __________ includes many functions that are considered non-core to the primary business strategy, such as financial and administration processes, human resource functions, call center and customer service activities, and accounting. a. b. c. d.

Cloud computing Business processing outsourcing (BPO) SaaS IT outsourcing

Answer: B Difficulty: Hard Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

36. Outsourcing deals are typically __________. a. b. c. d.

Multi-year contracts Short-term service level agreements Temporary arrangements One-year projects

Answer: A Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

37. Lessons that eBay and Genpact learned from the BPO implementation include each of the following except: a. b. c. d.

Manage change by securing the commitment of senior leaders Set realistic expectations and manage them actively Focus on minimizing costs Anticipate risks and formulate a plan for mitigating them

Answer: C Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

38. Which is not one of the lessons that eBay learned from its BPO implementation? a. Challenges can be avoided by partnering with a global leader in business process and technology management. b. Build a project-management infrastructure c. Create a governance mechanism d. Properly define how success will be measured Answer: A Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

39. Since the late 1980s, many organizations have outsourced __________. a. b. c. d.

Supply chain functions The majority of their IT functions Only incidental parts of their IT function Marketing functions

Answer: B Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

40. The trend in outsourcing has been toward the __________. a. b. c. d.

Single vendor Use of short term contracts Mega-deal Multi-vendor approach

Answer: D Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB: Use of information technology

41. The major reasons why organizations are increasingly outsourcing include each of the following except: a. b. c. d.

To focus on core competency It’s a faster way to gain or enhance IT capabilities To support supply chain transactions Cloud computing and SaaS have proven to be effective IT strategies

Answer: C Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

42. Which of the following statements about outsourcing is false? a. Increasingly, organizations are leveraging existing global cloud infrastructures from companies such as Amazon and Google. b. Established companies are less willing to outsource company-critical functions in an effort to reduce costs. c. New start-up companies typically outsource and rely on SaaS to avoid upfront IT costs. d. Outsourcing companies have started to offer interesting new business models and services around cloud computing.

Answer: B Difficulty: Hard Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

43. Which is not one of the risks associated with outsourcing? a. b. c. d.

Flexibility Shirking Poaching Opportunistic re-pricing

Answer: A Difficulty: Easy Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

44. When selecting a vendor, two criteria to assess first are _________________. a. b. c. d.

Experience and stability Cost and delivery time Location and product mix Reputation and trial run

Answer: A Difficulty: Medium Section Ref: 12.5 IT Vendor Relationships AACSB:

45. Before entering into any service contract with an IT vendor, get __________. a. b. c. d.

A demo or trial run Everything in writing The hardware installed References

Answer: B Difficulty: Medium Section Ref: 12.5 IT Vendor Relationships AACSB:

True/False 1. Making IT investments on the basis of an immediate need or threat is not a smart strategy because it can result in incompatible, redundant, or failed systems.

Answer: True Difficulty: Easy Section Ref: Quick Look at Chapter 1 AACSB:

2. The two basic types of IT strategies are offshoring often with help from a consulting firm and/or vendor; and outsourcing to a third-party that resides either in the same country or is offshore.

Answer: False Difficulty: Easy Section Ref: Quick Look at Chapter 1 AACSB:

3. For more productive service level agreements, companies may hire an outsource relationship management company to monitor and manage the outsourcing relationships.

Answer: True Difficulty: Hard Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

4. Two of the biggest risks and concerns of top management are (1) failing to align IT to real business needs and, as a result, (2) failing to deliver value to the business.

Answer: True Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: Use of information technology

5. IT strategic plans should be made within the context of the business strategy that it needs to support, which is how most companies do their IT planning.

Answer: False Difficulty: Easy Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

6. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies' strategic success, but few business leaders work with IT to achieve that success.

Answer: True Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB:

7. Business strategy sets the overall direction for the business; while the IT strategy defines what information, ISs, and architecture are needed to support the business and how infrastructure and services are to be delivered.

Answer: True Difficulty: Easy Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: 8. Ultimately, it is the CIO’s duty to insure that IT and other critical activities are effectively governed.

Answer: False Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: Ethical understanding and reasoning abilities

9. IT plays a key role in improving corporate governance practices because most critical business processes are automated and provide the information that managers rely for their decision making.

Answer: True Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

10. IT performance management refers to being able to predict and anticipate failures before it is too late and is a big part of IT governance.

Answer: True Difficulty: Medium Section Ref: 12.2 IT Governance AACSB:

11. IT governance deals with one function, which is risk management.

Answer: False Difficulty: easy Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

12. When companies run into legal problems or regulatory challenges, how effectively they managed IT governance is what saves or dooms them.

Answer: True Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

13. IT is an enabler of core competencies or competitive strengths; and it is complex, expensive, and constantly changing.

Answer: True Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

14. The most effective CIOs are highly technical and software-focused, Answer: False Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

15. Imitability is the feature that determines whether a competitor can imitate or copy the resource.

Answer: True Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

16. It is not typical for a CIO to routinely work with business leaders on their strategy and translate it into action, and then be asked by the CEO to manage business strategy worldwide.

Answer: True Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

17. Cloud computing is simply about outsourcing routine computing tasks.

Answer: False Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

18. Business processing outsourcing (BPO) is the process of hiring another company to handle business activities for you.

Answer: True Difficulty: Medium Section Ref: 12 .4 IT Operating Plans and Sourcing Strategies AACSB:

19. Risks associated with outsourcing are minimal because of service level agreements.

Answer: False Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

20. A benefit of sourcing is lower costs because of economies of scale and from sharing hardware, software, and personnel.

Answer: True Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

21. When selecting a vendor, two criteria to assess first are experience and stability.

Answer: True Difficulty: Medium Section Ref: 12.4 IT Vendor Relationships AACSB:

22. Businesses need to understand the terms of the service level agreement (SLA), or contract, and to not expect the vendor to do anything more.

Answer: True Difficulty: Medium Section Ref: 12.4 IT Vendor Relationships AACSB:

Short Answer 1. Cloud computing and software as a service (SaaS) have expanded __________ options.

Answer: Sourcing Difficulty: Easy Section Ref: Chapter 12 Quick Look AACSB: 2. __________ means “no surprises”—just clear communication of fee structures, terms, restrictions, and deadlines to customers.

Answer: Transparency Difficulty: Hard Section Ref: Chapter 12 Quick Look AACSB:

3. IT __________ is concerned with insuring that organizational investments in IT deliver full value.

Answer: governance Difficulty: Easy Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

4. IT governance, like security, is an __________ and cannot be achieved by a mandate or set of rules.

Answer: ongoing process Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

5. The CIO must understand and buy into the corporate _________ so that IS planning does not occur in isolation.

Answer: Culture Difficulty: Easy Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

6. __________ refers to the degree to which another resource can be used instead of the original resource to achieve the same value, Answer: Substitutability Difficulty: Medium Section Ref: 12.3 Aligning IT with Business Strategy AACSB:

7. __________ of software development has become a common practice due to global markets, lower costs, and increased access to skilled labor.

Answer: Offshoring Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

8. The risk of opportunistic __________ occurs when a client enters into a long-term contract with a vendor, but the vendor changes financial terms at some point or over-charges for unanticipated enhancements.

Answer: repricing Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

Essay Questions 1. What are the four main points of IT strategic plans?

Answer: The four main points of IT strategic plans are to: -improve management’s understanding of IT opportunities and limitations -assess current performance -identify capacity and human resource requirements, and -clarify the level of investment required.

Difficulty: Medium Section Ref: 12.1 IT Strategy and the Strategic Planning Process AACSB: Use of information technology

2. What are three issues driving the need for IT governance?

Answer: Issues driving the need for IT governance are: -There is a general lack of accountability and not enough shared ownership and clarity of responsibilities for IT services and projects.

-There is a gap between what IT departments think the business needs and what the business thinks the IT department can deliver.

-Organizations need to better understand the value IT can deliver.

-Top management wants to understand “how is my organization doing with IT in comparison with other peer groups?”

-Because organizations are relying more and more on IT. Difficulty: Hard Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

3. List four types of individuals concerned about IT governance.

Answer: Individuals concerned about IT governance are: -Top level business leaders, which are the Board, executives, managers, and heads of finance, operations, and IT -Public relations and investor relations managers -Internal and external auditors and regulators -Middle level business and IT management -Supply chain and business partners -Customers and shareholders Difficulty: Easy Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

4. Identify and briefly describe three important skill sets of CIOs. Answer: (From Table 12.4) Skills that CIOs need to improve IT governance and the IT-business alignment include: • Political savvy. Effectively understand managers, workers, and their priorities and use that knowledge to influence others to support organizational objectives.

• Influence, leadership, and power. Inspire a shared vision and influence subordinates and superiors.

• Relationship management. Build and maintain working relationships with coworkers and those external to the organization. Negotiate problem solutions without alienating those impacted.

Understand others and get their cooperation in non-authority relationships.

• Resourcefulness. Think strategically and make good decisions under pressure. Can set up complex work systems and engage in flexible problem resolution.

• Strategic planning. Capable of developing long-term objectives and strategies, and translating vision into realistic business strategies.

• Doing what it takes. Persevering in the face of obstacles.

• Leading employees. Delegating work to employees effectively; broadening employee opportunities; and interacting fairly with employees.

Difficulty: Medium Section Ref: 12.2 IT Governance AACSB: Ethical understanding and reasoning abilities

5. What are the major reasons why organizations are increasingly sourcing?

Answer: The major reasons why organizations are increasingly sourcing are: -To focus on core competency.

-It’s a cheaper and/or faster way to gain or enhance IT capabilities.

-To cut operational costs.

-Offshoring has become a more accepted IT strategy.

-Cloud computing and SaaS have proven to be effective IT strategies.

Difficulty: Medium Section Ref: 12.4 IT Operating Plans and Sourcing Strategies AACSB:

Chapter 13: Business Process and Project Management Test Bank Multiple Choice 1. __________ are the building blocks of each functional area, for example billing and inventory management. a. b. c. d.

IT procedures Business processes Business strategies Competitive forces

Answer: B Difficulty: Medium Section Ref: Quick Look at Chapter 13 AACSB:

2. Autotrader.com shortened the__________ of its order fulfillment process from over 8 days to about 1 day by implementing BPM. a. b. c. d.

Cycle time Legacy Life cycle SOA

Answer: A Difficulty: Medium Section Ref: Chapter 12 Case #1 AACSB: Use of information technology

3. Which is not one of the benefits of Autotrader.com’s electronic sales order system and BPMS? a. b. c. d.

Decrease in errors in sales orders More satisfied dealers Simplified processes Reduced time to measure KPIs to one day

Answer: D Difficulty: Medium Section Ref: Chapter 13 Case #1 AACSB:

4. Before any process can be improved, the __________ and the tasks involved in the process need to be clarified. a. b. c. d.

Team members Budget Time frame Desired outcomes

Answer: D Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

5. When you break it down, you see that a business process is actually __________. a. b. c. d.

A project of known scope with an assigned budget A loosely defined approach to solving an unstructured problem A series of individual tasks executed in a specific order Clearly defined and automated by software

Answer: C Difficulty: Hard Section Ref: 13.1 Business Process Management (BPM) AACSB: Reflective thinking skills

6. A process has inputs and outputs that are __________, which is necessary so it can be managed. a. b. c. d.

Qualitative Measurable Visual Summary metrics

Answer: B Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

7. Business processes integrate __________. a. b. c. d.

Software and hardware ISs and people Data and models Dashboards and scoreboards

Answer: B Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

8. The __________ spec, also called the technical spec, is important to managers because it identifies how the business process will be implemented in as much detail as possible. a. b. c. d.

Evaluation Implementation Project Design

Answer: D Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

9. During the implementation stage, __________ tests are critical because they determine whether the process is designed well from users’ perspective. a. b. c. d.

user acceptance functional acceptance system acceptance integration

Answer: A Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

10. A(n) __________ is a set of technologies used for exchanging data between applications and for connecting processes with other systems across the organization, and with business partners. a. b. c. d.

ERP mashup SOA Web service

Answer: D Difficulty: Hard Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

11. During the implementation stage, __________ tests are critical because that is when analysts test whether the process performs its functions. a. b. c. d.

user acceptance functional acceptance system acceptance technical acceptance

Answer: B Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

12. During the implementation stage, __________ tests are conducted by technical experts who attest that the process is integrated correctly with inputs and outputs of other processes and data sources and data stores a. b. c. d.

user acceptance functional acceptance system acceptance integration acceptance

Answer: C Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

13. In the short term, business process management (BPM) helps companies __________. a. b. c. d.

improve profitability by reducing waste and costs become more responsive to business changes increase sales revenues and profit margins all of the above

Answer: A Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

14. In the long term, business process management (BPM) helps companies __________. a. b. c. d.

improve profitability by reducing waste and costs become more responsive to business changes increase sales revenues and profit margins all of the above

Answer: B Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

15. After decades of business process reengineering attempts, organizations still have problems with their business operations. What are those problems? a. They duplicate processes b. They perform hundreds of non-core tasks that should be outsourced c. They spend vast amounts on proprietary process-management software that's difficult to update d. All of the above Answer: D Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

16. British Telecom, United Airlines, and other companies that focused their BPM initiatives on process automation and cost savings had achieved significant operational efficiencies __________. a. b. c. d.

And higher market share But lost their competitive edge and fell short of their performance targets But only for a short time as competitors copied their efforts Because they were linked to their business strategies.

Answer: B Difficulty: Hard Section Ref: 13.1 Business Process Management (BPM) AACSB:

17. Changes to business apps that were needed prior to year 2000 were tedious and timeconsuming because they were tightly coupled programs written in __________. a. b. c. d.

COBOL Java Visio Flash

Answer: A Difficulty: Easy Section Ref: 13.2 Software Architecture and IS Design AACSB: Use of information technology

18. __________ components have minimal dependence on each other, which simplifies testing, maintenance and troubleshooting because problems are easy to isolate and unlikely to spread. a. b. c. d.

Tightly coupled Hardwired Loosely connected COBOL

Answer: C Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

19. The advantage of the __________ is that any tier can be upgraded or replaced independently as business requirements or technology change. a. b. c. d.

Tightly coupled architecture Middleware and graphical user-interface Three-tier software architecture Four-module tiered architecture

Answer: C Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB: 20. What was the underlying reason for the failure of the 2010 U.S. Census Bureau’s Handheld Project? a. Failure of top management in the bureau to assess and mitigate risks of such a major project b. Technical and database failures c. Poor project management approach d. Insufficient training of the census takers on how to use the handheld devices Answer: A Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

21. Options for the acquisition of complex IT applications are all of the following except: a. b. c. d.

Built in-house Custom-made by a vendor Leased from an application service provider (ASP) Out-of-the-box

Answer: D Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

22. For in-house development, the __________ option should be considered only for specialized IT apps for which components are not available because this option is expensive and slow. a. b. c. d.

Build from components Build from scratch Integrating applications Prototyping

Answer: B Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

23. End-user development has risks and limitations, which include each of the following except: a. End users may not be skilled enough in computers, so quality and cost may be jeopardized. b. End users may not take time to document their work c. End users may neglect proper security measures. d. There may be an endless loop of prototype revisions.

Answer: D Difficulty: Easy Section Ref: 13.2 Software Architecture and IS Design AACSB:

24. Projects are managed by managing the triple constraints. Which is not one of those constraints? a. b. c. d.

Approval Scope Time Budget

Answer: A Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

25. A project plan is specified in a __________. a. b. c. d.

Resource pool Gantt chart Work breakdown structure (WBS) Critical path

Answer: C Difficulty: Easy Section Ref: 13.3 IT Project Management AACSB:

26. Project managers need to recognize the risk of __________, which is the piling up of small changes that by themselves are manageable, but collectively can cause significant project growth. a. b. c. d.

Over allocation Critical path Triple constraints Scope creep

Answer: D Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

27. Project management includes three basic operations. Which is not one of those operations? a. b. c. d.

Planning Budgeting Organizing Controlling

Answer: B Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

28. Project managers must manage the __________, which consists of tasks that must start and finish on schedule or the project will be delayed unless corrective action is taken. a. b. c. d.

Over allocation Critical path Triple constraints Scope creep

Answer: B Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

29. The success of a project manager depends on all of the following except: a. b. c. d.

Use of the critical path method and Gantt charts Clear, open, and timely communication Accurate, timely, and complete information Commitment from team members

Answer: A Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

30. The __________ is the traditional systems development method used by organizations for large IT projects such as IT infrastructure. a. b. c. d.

Prototyping method Systems development life cycle (SDL Critical path method Sourcing method

Answer: B Difficulty: Easy Section Ref: 13.4 Systems Development AACSB:

31. Systems development involves __________, which is the revising of results of any development process when new information makes revision the smart thing to do. a. b. c. d.

Iteration Scope creep Constraints Prototyping

Answer: A Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

32. The first stage of the SDLC is __________ to understand the business problem or opportunity. a. b. c. d.

Systems analysis Systems investigation Prototyping Systems design

Answer: B Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

33. During the systems investigation stage, __________ studies are done to determine if the hardware, software, and communications components can be developed and/or acquired to solve the business problem. a. b. c. d.

Economic feasibility Technical feasibility ROI NPV

Answer: B Difficulty: Easy Section Ref: 13.4 Systems Development AACSB:

34. During the systems investigation stage, __________ studies are done to assess the skills and the training needed to use the new IS. a. b. c. d.

Economic feasibility Technical feasibility Organizational feasibility Behavioral feasibility

Answer: D Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

35. Covert resistance to a new IS from employees may take the form of __________. a. b. c. d.

Sabotaging the new system by entering data incorrectly Continuing to do their jobs using their old methods Complaining about the new system for extended time All of the above

Answer: A Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

36. __________ specifications include the design of outputs, inputs, processing, databases, telecommunications, controls, security, and IS jobs. a. b. c. d.

Physical design Logical design End-user Systems analysis

Answer: B Difficulty: Medium Section Ref: 13.4 Systems Development AACSB: 37. When the system’s logical and physical designs specifications are agreed upon and approved by all participants, they __________. a. b. c. d.

Should not be changed Should be flexible to changes Are used to develop the prototype Determine the budget and timeline for development

Answer: A Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

38. To add rigor to the programming process, programmers use __________ that improve the flow of the program by decomposing the computer code into modules. a. b. c. d.

GOTO statements Flowcharts Structured programming techniques All of the above

Answer: C Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

39. Which is not a characteristic of program testing? a. Testing verifies that computer code works correctly under various conditions. b. Syntax errors are easier to find than logic errors because they prevent the program from running. c. Logic errors are difficult to detect because they permit the program to run but result in incorrect output. d. Proper testing can be done quickly and with little effort.

Answer: D Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

40. __________ conversion is the least expensive and highest risk IS conversion strategy because the old system is cut off and the new system is turned on at a certain point in time. a. b. c. d.

Parallel Direct Pilot Phased

Answer: B Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

True False 1. A business process, such as the credit approval process, accomplishes or produces something of value to the organization.

Answer: True Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

2. In order to manage a process, the process needs to have outputs that are measurable.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

3. Process design is typically mapped and documented using a modeling tool, such as Microsoft Excel.

Answer: False Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

4. Not only is the development of the process important, the testing is equally as critical.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

5. The BPM approach has its roots in just-in-time (JIT), which is the radical redesign of an organization's business processes.

Answer: False Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

6. The BPR and JIT approaches were both based on assumptions. And if those assumptions are not met, then they will fail to achieve the great expected results.

Answer: True Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

7. Many JIT implementations in the U.S. actually increased inventory costs because JIT is based on the assumption that warehousing costs are extremely high, as they were in Japan where JIT was initiated by Toyota.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

8. When applying business process reengineering (BPR), managers first attempt to automate or semi-automate an organization's business processes.

Answer: False Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

9. An advantage of JIT is that it significantly decreases transportation and ordering costs.

Answer: False Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

10. In the 1990s, most organizations failed to achieve fundamental business process improvements because they attended a BPR seminar and then made mistakes in the implementation.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

11. After decades of reengineering attempts, organizations no longer duplicate processes or perform non-core tasks that should be outsourced.

Answer: False Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

12. If organizations focus exclusively on automation and cost savings, they might achieve significant operational efficiencies but lose their competitive edge.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

13. SOA is a confusing concept, even for practitioners, because SOA is mistakenly described like BPM or the definition is incomprehensible.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

14. An important aspect of SOA is the separation of the service interface (the what) from its implementation (the how).

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

15. SOA and BPM both focus on creating a more flexible IT architecture and optimizing the way actual work gets done.

Answer: False Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

16. Web services can connect processes with other systems across the organization, and with business partners. The resulting integrated BPM systems are BPM mashups.

Answer: True Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB: Use of information technology

17. The goal of loose coupling of apps is to reduce dependencies between systems to improve flexibility and agility.

Answer: True Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

18. Project resources must be managed according to the Gantt chart.

Answer: False Difficulty: Easy Section Ref: 13.3 IT Project Management AACSB:

19. The SDLC is a structured framework that consists of sequential processes by which information systems are developed.

Answer: True Difficulty: Medium Section Ref: 13.4 Systems Development AACSB:

20. For many organizations, custom software is more expensive than packaged applications.

However, if a package does not closely fit the company‘s needs, the savings are often diluted when the information systems staff or consultants must extend the functionality of the purchased packages.

Answer: True Difficulty: Medium Section Ref: 13.4 Systems Development AACSB: Use of information technology

Short Answer 1. A __________ is the smallest unit of work and management accountability that is not split into more detailed steps.

Answer: task Difficulty: Easy Section Ref: 13.1 Business Process Management (BPM) AACSB:

2. __________ are pre-configured, ready-to-go integrations between different business software packages. They streamline information sharing among systems.

Answer: Mashups Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

3. __________ refers to a broad range of software or services that enable communication or data exchange between applications across networks.

Answer: Middleware Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB: Use of information technology

4. __________ testing is important because it determines whether the app meets the original business objectives and vision.

Answer: Acceptance Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

5. Large IT projects, especially ones that involve infrastructure, are developed according to the __________ methodology using several tools.

Answer: SDLC Difficulty: Easy Section Ref: 13.2 Software Architecture and IS Design AACSB:

6. A __________ is a type of bar chart that shows a project schedule.

Answer: Gantt chart Difficulty: Easy Section Ref: 13.3 IT Project Management AACSB:

7. __________ is the growth of the project after the scope has been defined and is a serious issue because it can cause the project to fail.

Answer: Scope creep Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB:

8. The purpose of the __________ is to recognize which activities are on the critical path so that managers know where to focus their efforts.

Answer: Critical path method (CPM) Difficulty: Medium Section Ref: 13.3 IT Project Management AACSB: Use of information technology

9. __________ are information systems professionals who specialize in analyzing and designing information systems.

Answer: Systems analysts Difficulty: Easy Section Ref: 13.4 Systems Development AACSB:

10. In a __________ conversion, the old system and the new system operate simultaneously for a period of time, which is the most expensive, but also the least risky approach.

Answer: parallel Difficulty: Easy Section Ref: 13.4 Systems Development AACSB:

Essay Questions 1. Sketch or list the four stages of the business process lifecycle.

Answer: (See Figure 13.6.)

-Process Design -Process Implementation -Process “In Action” -Process Evaluation Difficulty: Medium Section Ref: 13.1 Business Process Management (BPM) AACSB:

2. List and briefly describe the four tests performed on modules that have been installed before going live.

Answer: Modules that have been installed need to be tested. The required series of tests are: • Unit testing: testing the modules one at a time • Integration testing: testing the combination of modules interacting with other applications • Usability testing: testing the quality of the user’s experience when interacting with the portal or Web site • Acceptance testing: determining whether the application meets the original business objectives and vision.

Difficulty: Medium Section Ref: 13.2 Software Architecture and IS Design AACSB:

3. Identify the tiers of the Three-tier architecture. Describe or give an example of each tier.

Answer: Three-tier architecture has the following tiers: 1. Presentation or client tier. This is the topmost level of the application, an example of which is a Web browser.

2. Application or business logic tier. Detailed processing is performed in this tier. This middle tier consists of middleware. By performing some of the tasks that an application

would have performed, middleware eliminates the need for an application that is shared by multiple clients to function differently for each different type of client.

3. Data tier. This tier consists of the data sources, such as the database and data warehouse servers. Here information is stored and retrieved.

Difficulty: Hard Section Ref: 13.2 Software Architecture and IS Design AACSB:

1. List and describe the triple constraints of project management.

Answer: Projects are managed by managing the triple constraints, which are: 1. Scope: The project scope is the definition of what the project is supposed to accomplish—its outcomes or deliverables. Scope is measured in terms of the project size, goals, and requirements.

2. Time: A project is made of up tasks. In defining the tasks, they should start with an active verb, such as: purchase servers, apply for permits, and interview vendors. Each task is assigned a duration—which is the difference between the task’s start date and its end date. The project’s time is determined by task durations and task dependencies.

3. Budget: Projects are approved subject to their costs.

Difficulty: Easy Section Ref: 13.3 IT Project Management AACSB:

2. Select a standard business process, such as payroll. Draw a flowchart of an app for that business process.

Answer: Answers will vary. See Figure 13.7 Difficulty: Hard Section Ref: 13.4 Systems Development AACSB:

Chapter 14: Global Ecology, Ethics, and Social Responsibility Test Bank Multiple Choice 1. What is a potential disadvantage of social recruiting methods? a. b. c. d.

Increases cost of in-house recruiting Increases candidates control of their privacy Increases risk of discrimination Decreases the pool of good candidates

Answer: C Difficulty: Medium Section Ref: Chapter 14 Opening case AACSB: Ethical understanding and reasoning abilities

2. ________ is a term used in several laws to describe characteristics that cannot be targeted for discrimination and harassment. a. b. c. d.

Civil rights Protected class Genome Negligent hiring

Answer: B Difficulty: Medium Section Ref: Chapter 14 Opening case AACSB: Ethical understanding and reasoning abilities

3. ________ is a claim made by an injured party against an employer who knew or should have known about an employee's background that indicates a dangerous or untrustworthy character. a. b. c. d.

Civil rights Protected class Genome Negligent hiring

Answer: D Difficulty: Medium Section Ref: Chapter 14 Opening case AACSB: Ethical understanding and reasoning abilities

4. Steps that companies can take to manage social media recruiting risks include each of the following except: a. b. c. d.

Ask candidates to relax privacy settings to allow review by the employer.

Ask candidates to sign a disclosure statement.

Training Create a standard process and document it.

Answer: A Difficulty: Medium Section Ref: Chapter 14 Opening case AACSB: Ethical understanding and reasoning abilities

5. Carbon footprint refers to the amount of __________ emitted by a particular activity, industry, or value chain. a. b. c. d.

CO CO2 CO2 and other GHGs Coal and biofuels

Answer: C Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

6. Carbon footprint is typically measured in __________. a. b. c. d.

Gigatonnes (Gt) Degrees Celsius Global mean temperature (GMT) Climate change

Answer: A Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

7. The IT sector is responsible for an estimated __________ of the global carbon footprint as a result of emissions from the energy used to run servers, computers, and other hardware. a. b. c. d.

0.10 to 0.20 percent 0.50 percent 2 to 3 percent 10 percent

Answer: C Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

8. The IT sector can cut its carbon footprint cut in half by each of the following practices except: a. b. c. d.

Switching to low emission data centers Buying eco-friendly hard drives that consume less power Placing data center in cold climates Manufacturing equipment outside the U.S.

Answer: D Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

9. What is global warming? a. The buildup of CO2. b. The upward trend in the Earth atmosphere's global mean temperature (GMT). c. The holding of heat within Earth's atmosphere by certain GHGs that absorb infrared radiation. d. The sea level rise and melting of polar caps.

Answer: B Difficulty: Hard Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

10. What is the greenhouse effect? a. The buildup of CO2. b. The upward trend in the Earth atmosphere's global mean temperature (GMT). c. The holding of heat within Earth's atmosphere by certain GHGs that absorb infrared radiation. d. The sea level rise and melting of polar caps.

Answer: C Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

11. Better use of IT to shift away from energy-intensive work habits and lifestyles to low carbon habits and lifestyles depends on _____. a. Mobile technologies b. Commitment of senior managers c. Government policy, incentives for companies, and active participation of consumers d. Cloud computing Answer: C Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

12. In environmental terms, a process or industry is __________ when it uses up natural resources faster than they can be replenished. a. b. c. d.

Low carbon Unsustainable Green Renewable

Answer: B Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

13. Routers, switches, and modems operated by end users have been inefficient power guzzling machines mostly because __________. a. b. c. d.

They are built at the lowest possible cost Eco-friendly manufacturing did not exist Performance speeds were higher than green ones Such machines were more reliable than green ones

Answer: A Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

14. Why are mobile handsets a threat to the environment? a. b. c. d.

They consume a lot of electric power.

They emit infrared radiation.

The renewal rates of mobiles tend to be very slow.

Millions of phones are disposed of, but recycling practices are very poor.

Answer: D Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

15. Industry standards __________ change. Those standards keep ramping up and will again. a. b. c. d.

EPEAT and ENERGY STAR Green STAR SIM EPA

Answer: A Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: 16. The “Next Generation Data Center” strategy is based on the ability to deliver and support secure IT applications through __________. a. b. c. d.

Mobile devices Wireless networks Green IT Virtualization

Answer: D Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB:

17. Data center virtualization means that servers are __________. a. b. c. d.

Integrated so that they can be shared Condensed to increase processing power Consolidated so they are more secure Distributed to reduce cost

Answer: A Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB:

18. __________ or sniffing out and mapping the physical location of Wi-Fi routers is a hacking technique, an invasion of privacy, and an information security risk. a. b. c. d.

IP monitoring Spear fishing Wardriving Snooping

Answer: C Difficulty: Easy Section Ref: 14.2 Responsible Conduct AACSB:

19. The FCC determined that Google's Street View actions and snooping on unencrypted wireless data were: a. b. c. d.

An unfair advantage Environmentally harmful Spying and intolerable invasions of privacy Not technically illegal

Answer: D Difficulty: Medium Section Ref: 14.2 Responsible Conduct AACSB: Ethical understanding and reasoning abilities

20. Despite the challenges and lack of clear answers, ethics is important because it has become clear that relying on __________ alone to safeguard the community is insufficient. a. b. c. d.

Corporate policy The law Audit trails Moral behavior

Answer: B Difficulty: Hard Section Ref: 14.2 Responsible Conduct AACSB: Ethical understanding and reasoning abilities

21. Blogging to influence financial markets may be deemed by the FTC or SEC as a(n) __________, particularly when done by the CEO hiding his identity. a. b. c. d.

Federal crime Invasion of privacy Insider trading Money laundering

Answer: A Difficulty: Easy Section Ref: 14.2 Responsible Conduct AACSB: Ethical understanding and reasoning abilities 22. IT’s capability to add growing amounts of data into our lives can exceed our capacity to keep up with the data, leading to __________. a. b. c. d.

Digital divide Net neutrality Large carbon footprint Information overload

Answer: D Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

23. Bloomberg BusinessWeek reported that knowledge workers are distracted __________ at work—texting, posting on Facebook, and so on. a. b. c. d.

Every three minutes Every 15 minutes Every hour At least twice a day

Answer: A Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB:

24. Which statement about information quality is false? a. Information quality is mandated by several laws. b. Information quality is a subjective measure of the utility, objectivity, and integrity of gathered information. c. The most common problem with online information sources is outdated content. d. Millions of individuals face information quality issues on a daily basis as they try to find information online.

Answer: C Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB:

25. Fewer employees, business process reengineering, and the ability of lower-level employees to perform higher-level jobs may result in __________. a. b. c. d.

An increase in the number of special units Increased spans of control Centralization of authority Flatter organizational hierarchies

Answer: D Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB:

26. There is a trend toward __________ which can identify where you are and what you are doing. a. b. c. d.

Cloud computing Context-based services Fluid collaboration Service oriented architecture

Answer: B Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB:

27. New IT capabilities that are paving the way for more capable Web apps include each of the following except: a. b. c. d.

RFID sensors QR codes Social media Bluetooth Smart technology

Answer: C Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB:

28. ____________ transforms our way of interacting with the world; it has its own language, taboos, interaction styles, communication channels, customs, habits, preferences, and pace. a. b. c. d.

RFID sensors QR codes Social media Bluetooth Smart technology

Answer: C Difficulty: Hard Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB:

29. Which of the following is not one of the new vulnerability points for hackers to target as those systems and devices get connected to corporate IT? a. b. c. d.

Cars Assembly lines Pumps Web sites

Answer: D Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB:

30. Accenture reports that the next wave of IT will be more __________ than previous ones. a. b. c. d.

Disruptive Expensive Interactive Siloed

Answer: A Difficulty: Hard Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB:

True/False 1. Most major retailers rely on 'predictive analytics to understand consumers' shopping habits and also their personal habits to more efficiently market to them.

Answer: True Difficulty: Easy Section Ref: Quick Look at Chapter 14 AACSB: Ethical understanding and reasoning abilities

2. Many U.S. companies and recruiters look at Facebook, YouTube, Twitter, Flickr, and blogs to get a clearer picture of job candidates to avoid discrimination.

Answer: False Difficulty: Easy Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

3. Depending on how job candidates control their privacy and how much they reveal by checking-in and posting, recruiters learn a great deal of information that should be used in their decision to interview, recommend, or hire someone.

Answer: False Difficulty: Medium Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

4. Genetic Information Nondiscrimination Act of 2008 (GIN make it illegal to discriminate in any aspect of employment, including recruitment, hiring and firing.

Answer: True Difficulty: Medium Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

5. When information about protected classes is used to weed out candidates, it can lead to corporate social media discrimination.

Answer: True Difficulty: Easy Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

6. Almost all employers do some form of background screening in order to avoid the risk of negligent hiring claims.

Answer: True Difficulty: Easy Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

7. Heat-trapping greenhouse-gas (GHG) emissions worldwide hit record lows in 2011, according to the International Energy Agency.

Answer: False Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

8. Global warming refers to the upward trend in GMT and is one of the most complicated issues facing world leaders.

Answer: True Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

9. Using social media to inform consumers of the grams of carbon emissions associated with the products they buy could change buyer behavior and ultimately have a positive eco-effect.

Answer: True Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities 10. “Smart” means that wasted-energy and materials are minimized; and procurement, manufacturing, distribution, service, and recycling are done in an environmentally-friendly manner.

Answer: True Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

11. The greenhouse effect refers to the holding of heat within Earth's atmosphere by certain GHGs such as CO2, methane, and nitrous oxide that absorb infrared radiation.

Answer: True Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

12. To reduce fossil fuel consumption by telecom operators, they are switching to diesel fuel and other biofuels.

Answer: False Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

13. Mobiles are not a threat to the environment because they consume very little electric power.

Answer: False Difficulty: Hard Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

14. When a Street View car encountered an open Wi-Fi network—a non-password protected router—it recorded all the digital traffic traveling across that router, which was illegal.

Answer: False Difficulty: Medium Section Ref: Chapter 14.2 Responsible conduct AACSB: Ethical understanding and reasoning abilities

15. Given that Google manages so much of our personal data, their Street View initiative is a privacy invasion and an example of irresponsible conduct.

Answer: True Difficulty: Medium Section Ref: Chapter 14.2 Responsible conduct AACSB: Ethical understanding and reasoning abilities

16. The FTC defined a clear cut framework for deciding what is ethical and what’s not.

Answer: False Difficulty: Medium Section Ref: Chapter 14.2 Responsible conduct AACSB: Ethical understanding and reasoning abilities

17. Globalization, the Internet, and connectivity have the power to undermine moral responsibility because it becomes relatively easy to ignore harm.

Answer: True Difficulty: Hard Section Ref: Chapter 14.2 Responsible conduct AACSB: Ethical understanding and reasoning abilities 18. People adapt to new ITs—many of which become must have and can’t function without gadgets rather quickly.

Answer: True Difficulty: Easy Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

19. Business users are more likely to suffer from too much data, rather than from data scarcity.

Answer: True Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

20. A negative impact of information overload is that people are continuously paying partial attention or skimming instead of being fully engaged in what they are doing.

Answer: True Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

21. Information quality is a quantitative measure of the utility, objectivity, and integrity of gathered information.

Answer: False Difficulty: Easy Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

22. The advantage of online materials that are available from reputable sources is their assurance of information quality.

Answer: False Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

23. The impacts of increased data volumes and use of IT are greater job satisfaction, humanization, and reduced stress.

Answer: False Difficulty: Easy Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

24. The ratio of white- to blue-collar workers decreases as computers replace clerical jobs.

Answer: False Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

25. Knowledge is power, and those who control information and knowledge are likely to gain power.

Answer: True Difficulty: Medium Section Ref: 14.3 Connectivity Overload and a Culture of Distraction AACSB: Ethical understanding and reasoning abilities

26. Facebook, LinkedIn, Twitter, and other social media are primarily just new communication channels to customers.

Answer: False Difficulty: Easy Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB: Ethical understanding and reasoning abilities

27. Companies not actively engaged with or experimenting with social media, or planning ways to move it beyond marketing are putting themselves at risk.

Answer: True Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB: Ethical understanding and reasoning abilities

28. The platform-as-a-service (PaaS) market is shifting the emphasis from cost-cutting to business innovation.

Answer: True Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB: Ethical understanding and reasoning abilities

29. Although most companies have huge IT security systems investments, they are still largely unprepared for the scope, severity, and sophistication of today’s attacks.

Answer: True Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB: Ethical understanding and reasoning abilities 30. High performing business leaders now accept that their organizations’ future success is tied to their ability to keep pace with technology.

Answer: True Difficulty: Medium Section Ref: 14.4 On the Verge of a New Tech Revolution AACSB: Ethical understanding and reasoning abilities

Short Answer

1. __________ means using things at a rate that does not deplete its availability in future generations.

Answer: Sustainability Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

2. __________ technology optimizes the capacity and processing power of servers so that fewer servers are needed to provide the necessary processing power.

Answer: Virtualization Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB:

3. __________ refers to the upward trend in GMT. Answer: Global warming Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB:

4. __________ or virtual work, offers many green benefits, including reducing rush-hour traffic, improving air quality, improving highway safety, and even improving healthcare.

Answer: Telecommuting Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Use of information technology

5. __________ refers to use of social media to find, screen, and select job candidates. Often it entails searching information the job candidate did not want considered.

Answer: Social recruiting Difficulty: Medium Section Ref: Chapter 14 opening case AACSB:

6. When information about protected classes is used to weed out candidates, it can lead to corporate social media________.

Answer: Discrimination Difficulty: Medium Section Ref: Chapter 14 opening case AACSB: Ethical understanding and reasoning abilities

7. Global warming occurs because of the ________ effect, which is the holding of heat within Earth's atmosphere.

Answer: greenhouse Difficulty: Easy Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

8. To reduce fossil fuel consumption, companies are switching to solar, wind, and sustainable ________.

Answer: Biofuels Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB:

9. __________ and privacy rights collide in a world populated by anonymous critics, vengeful people, personal agendas, and malcontents.

Answer: Free speech Difficulty: Medium Section Ref: 14.2 Responsible Conduct AACSB:

10. Google's engineers realized the cars could be used for ________ which is also a hacking technique, an invasion of privacy, and an information security risk.

Answer: wardriving Difficulty: Medium Section Ref: 14.2 Responsible Conduct AACSB:

Essay 1. Describe social recruiting. Explain how it can lead to discrimination. Give an example.

Answer: Social recruiting refers to use of social media to find, screen, and select job candidates. Often it entails searching information the job candidate did not want considered. But when information about protected classes is used to weed out candidates, it can lead to corporate social media discrimination. Examples will vary.

Difficulty: Medium Section Ref: Chapter 14 Opening case AACSB: Ethical understanding and reasoning abilities

2. Identify and explain two myths about green IT. Answer: See IT at Work 14.1 Myths are: •

•

•

The business case for green IT is clear. Trying to quantify the cost savings of green IT may be impossible or non-applicable if cloud computing is used. The beneficiary of energy-efficient servers is not the company, but their outsourcer. So the issue of who realizes the cost benefits is unclear, and that makes it tricky to pinpoint the real payback drivers for a given green project.

Green IT is an achievable outcome. Green IT is an ongoing process and includes policies that define a way of operating over the long-term. Companies don’t achieve green and then quit. Energy efficiency and environmentally responsible manufacturing need to be made a part of hardware procurement policy.

Everyone cares about green IT. Of managers’ top 20 priorities for 2010, green IT wasn’t one of them. The two top priorities were cost reduction because of the recession and alignment of IT and the business. Companies are concerned with costs—and so are the public and nonprofit sectors. Green IT initiatives should be described in terms of reducing waste and inefficiency to get management’s attention. But even that tactic may be a tough sell if prior IT investments touted as reducing waste and inefficiency did not achieve those objectives.

Difficulty: Hard Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

3. What are the benefits of telework to individuals, organizations, and the community/society?

Give two benefits to each.

Answer: See Table 14.1 Table 14.1 Benefits of Telework Individuals Organizations Reduces or eliminates travelReduces office space needed related time and expenses • Increases labor pool and • Improves health by reducing competitive advantage in stress related to compromises recruitment made between family and • Provides compliance with work responsibilities Americans with Disabilities • Allows closer proximity to Act and involvement with family • Decreases employee • Allows closer bonds with the turnover, absenteeism, and family and the community sick leave usage • Decreases involvement in • Improves job satisfaction office politics and productivity • Increases productivity despite distractions

Community and Society • Conserves energy and lessens dependence on foreign oil • Preserves the environment by reducing traffic-related pollution and congestion • Reduces traffic accidents and resulting injuries or deaths • Reduces the incidence of disrupted families when people do not have to quit their jobs if they need to move because of a spouse’s new job or family obligations • Increased employment opportunities for the homebound • Allows the movement of job opportunities to areas of high unemployment

Difficulty: Medium Section Ref: 14.1 Can IT Cut its Global Carbon Footprint? Can Users?

AACSB: Ethical understanding and reasoning abilities

4. Discuss the competing interests and tradeoffs at work when the issue is privacy.

Answer: There are competing interests and tradeoffs at work when the issue is privacy. And there’s not a clear cut framework for deciding what is ethical and what’s not. The personal privacy vs. public’s security debate is a prime example. Typically, privacy invasion is considered unethical.

An ethically conscious corporate attitude sounds politically correct, but managers also have responsibility to stakeholders. Monitoring may be the responsible thing to do. And with intense competition, marketers naturally want to use every tool or technique to gain an edge or nullify a risk.

Globalization, the Internet, and connectivity have the power to undermine moral responsibility because it becomes relatively easy to ignore the harm that might be done to others. Despite the

challenges and lack of clear answers, ethics is important because it has become clear that relying on the law alone to safeguard the community is insufficient. The law has its limits in large part because it changes so slowly.

Difficulty: Medium Section Ref: 14.2 Responsible Conduct AACSB: Ethical understanding and reasoning abilities

5. Discuss the impacts of IT on each of the following: organizational structure, authority, power, and job content.

Answer: See Table 14.2.

Table 14.2 Impact Flatter organizational hierarchies

Change in blue-collarto white-collar staff ratio

Growth in number of special units

Centralization of authority

Changes in power and status

Changes in job content and skill sets

Impacts of IT on Structure, Authority, Power, and Job Content Effect of IT IT increases span of control (more employees per supervisor), increases productivity, and reduces the need for technical experts (due to expert systems).

Fewer managerial levels will result, with fewer staff and line managers. Reduction in the total number of employees, reengineering of business processes, and the ability of lower-level employees to perform higher-level jobs may result in flatter organizational hierarchies.

The ratio of white- to blue-collar workers increases as computers replace clerical jobs, and as the need for information systems specialists increases. However, the number of professionals and specialists could decline in relation to the total number of employees in some organizations as intelligent and knowledge-based systems grow.

IT makes possible technology centers, e-commerce centers, decision-support systems departments, and/or intelligent systems departments. Such units may have a major impact on organizational structure, especially when they are supported by or report directly to top management Centralization may become more popular because of the trend toward smaller and flatter organizations and the use of expert systems. On the other hand, the web permits greater empowerment, allowing for more decentralization. Whether use of IT results in more centralization or in decentralization may depend on top management’s philosophy.

Knowledge is power, and those who control information and knowledge are likely to gain power. The struggle over who controls the information resources has become a conflict in many organizations. In some countries, the fight may be between corporations that seek to use information for competitive advantage and the government (e.g., Microsoft vs. the Justice Dept.). Elsewhere, governments may seek to hold onto the reins of power by not letting private citizens access some information.

Job content is interrelated with employee satisfaction, compensation, status, and productivity. Resistance to changes in job skills is common, and can lead to unpleasant confrontations between employees and management.

Difficulty: Medium Section Ref: 14.3 Connectivity Overload and Culture of Distraction AACSB: Ethical understanding and reasoning abilities