Introduction to Information Systems, 2nd Canadian Edition Rainer, Cegielski, Splettstoesser-Hogeterp

Introduction to Information Systems, 2nd Canadian Edition BY Rainer, Cegielski, SplettstoesserHogeterp, Sanchez-Rodriguez

Email: richard@qwconsultancy.com

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Introduction to Test Bank to accompany Rainer et al.: Introduction to Management Information Systems, Second Canadian Edition prepared by Ingrid Splettstoesser-Hogeterp There are many different ways of testing students. At our school, York University, we use a mix of multiple choice questions and case questions that use material from the text together with in-class discussions.

In this test bank, you have available True-False questions, Multiple Choice Questions, Short Answer questions, and Case questions that often deal with multiple chapters of the text.

Responses to the first two types of questions are from the text, while for the latter two the responses are more flexible, as students can bring in class discussion material plus their own experience. This means that the answer guides would also be more flexible.

Page references are shown for the Short Answer questions, while suggested answer guides are provided for the Case questions. The latter have been field tested in the midterm or final examinations, and so have been updated to include the potential groups of responses that students might provide.

I would like to thank the instructors at York University who helped to review questions and update answer guides to questions for this Test Bank. At time of writing, these instructors were: Anna Chow, Hila Cohen, Ken Cudeck, John Kucharzuck, Carl Lapp, Anita Patel, Donna Rex, and Mario Vasilkovs.

-Ingrid Splettstoesser-Hogeterp

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 1: The Modern Organization in the Global Web-Based Environment

True/False

1. Prior to acquiring a new information system, the organization simply needs to document its needs and provide these to a potential supplier.

Ans: False. Organizations need to prioritize both potential and exiting systems, as well as consider a match between the potential systems and its strategic plan prior to new acquisitions Feedback: Importance of Planning for IT p.5 Difficulty: Medium

2. The purpose of an IT strategic plan is to provide a set of long-range goals that describe the IT infrastructure and identify the major IT initiatives needed to achieve the organization’s goals.

Ans: True Feedback: Importance of Planning for IT p. 5 Difficulty: Easy

3. After an organization has developed the IS operational plan it should develop an IT strategic plan.

Ans: False. The sequence is reversed. The IT strategic plan should be developed first, then the IS operational plan.

Feedback: Importance of Planning for IT p. 6.

Difficulty: Medium

4. A business process is a collection of related activities that produce a product or a service of value to the organization. Most processes serve a single purpose, and are restricted in use to a single functional area.

Ans: False. The first sentence defining the business process is correct. However, the second sentence is incorrect, since many processes cross functional areas in an organization.

Feedback: Business Processes and Business Process Management p. 7.

Difficulty: Medium

5. Business process reengineering (BPR) is to radically change organizations to reduce costs and increase quality.

Ans: True Feedback: Importance of Planning for IT p. 8 Difficulty: Medium

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6. An organization’s platform consists of the hardware, software, and communications components that the organization uses to process and manage information.

Ans: True Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

7. A combination of your high school grades, application essays, letters of recommendation, and graduate management aptitude test (GMAT) would be considered information.

Ans: True Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

8. A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation and university entrance exams, would be applying her knowledge in your application process.

Ans: True Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

9. A list of football scores with the names of the teams that played the games would be considered information.

Ans: True Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

10. An information system deals with the planning, development, management, and use of management information tools to help people perform all the tasks related to information processing and management.

Ans: False. An information system collects, processes, stores, analyzes and disseminates information for a specific purpose.

Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

11. IT services include data management, systems development, and security concerns.

Ans: True Feedback: Information Systems: Concepts and Definitions p. 6 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

12. According to Thomas Friedman, we are currently in the second era of globalization where multinational companies are a driving force.

Ans: False. According to Friedman we are in the third era.

Feedback: The Global, Web-Based Platform p. 14.

Difficulty: Medium

13. We can consider our world “flat” because the global competitive playing field is being leveled.

Ans: True Feedback: The Global, Web-Based Platform p. 14 Difficulty: Easy

14. The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.

Ans: False. It is the business environment that has these combinations.

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13.

Difficulty: Easy

15. In general, labour costs are higher in developed countries than in developing countries.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Easy

16. Information technology is facilitating the entry of a wide variety of employees into the workforce.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Easy

17. Customers have become more powerful because they can use the Internet to find detailed information about products and services.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Easy

18. Technological innovation improves the product life cycle, making products useful to customers for a longer period of time.

Ans: False. Technological innovation means that more products are being introduced rapidly, increasing the likelihood that products will be rapidly replaced.

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Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Medium

19. In general, government deregulation decreases competition.

Ans: False. Government deregulation increases competition.

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p.13 Difficulty: Easy

20. Ethical issues are important because, if handled poorly, they can damage the image of an organization.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Easy

21. In mass production, a company produces a large quantity of identical items.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p.13 Difficulty: Easy

22. In mass customization, companies produce items in large quantity, with each item tailored to fit the desires of each customer.

Ans: True Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 13 Difficulty: Easy

Multiple Choice

1. When organizations justify acquisitions of new systems this is done in terms of: A. Implementing the most current technology B. Providing benefits greater than costs C. Meeting all user needs D. Matching the functionality of all direct competitors Ans: B Feedback: Importance of Planning for IT p. 4 Difficulty: Medium

2. A document that describes how an organization’s information resources should be used to accomplish its mission called:

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

A. Information systems strategy B. Information technology infrastructure C. Information technology architecture D. Supply chain processes for globalization Ans: C Feedback: Importance of Planning for IT p. 5 Difficulty: Easy

3. A set of long-range goals that describe the IT (information technology) infrastructure and identify the major IT initiatives needed to achieve the goals of the organization is a(n): A. IT architecture B. Feasibility study C. IT strategic plan D. Systems analysis Ans: C Feedback: Importance of Planning for IT p. 5 Difficulty: Easy

4. One of the objectives that must be met by the IT strategic plan is that it must: A. Provide for an IT architecture that enables users, applications, and databases to be seamlessly networked and integrated B. Provide for a high level of services to be available to all users at all times C. Describe the way that an organization’s information resources should be used to accomplish its mission D. Provide a summary of the information needs of the functional areas and of the organization as a whole Ans: A Feedback: Importance of Planning for IT p. 5 Difficulty: Hard

5. The purpose of an IT Steering committee is to: A. Help develop the goals of functional information systems projects B. Conduct customer satisfaction surveys prior to the implementation of new systems C. Evaluate the effectiveness of supply chain management integration with new technology D. Establish IT priorities and to ensure that the MIS function is meeting the enterprise’s needs Ans: D Feedback: Importance of Planning for IT p. 6 Difficulty: Medium

6. Which of the following is a characteristic of a business process? It A. Has inputs and outputs and can be measured B. Is subjective in nature C. Normally is used by a single user or functional area D. Is normally very costly to implement at organizations Ans: A

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Chapter 1: The Modern Organization in the Global Web-Based Environment

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Feedback: Business Processes and Business Process Management p. 7 Difficulty: Medium

7. Information technology is normally the key to radical changes within organizations that can dramatically lower costs and increase quality to become more competitive. Such redesign is called: A. Business process management B. Implementation of supply chain management C. Business process reengineering D. Implementation of customer relationship management Ans: C Feedback: Business Processes and Business Process Management p. 8-9 Difficulty: Easy

8. Janco Company has implemented high-level organizational processes that include methods and tools to support the design, analysis, implementation, management and optimization of business processes. This is called: A. Business process management B. Implementation of supply chain management C. Business process reengineering D. Implementation of customer relationship management Ans: A Feedback: Business Processes and Business Process Management p. 9-10 Difficulty: Hard

9. Which of the following is a data item?

A. Calculated invoice sales taxes due B. Invoice number C. Sorted account balances D. Student grade point average Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty Hard

10. Which of the following is an example of a data item?

A. an invoice B. a student’s name C. a sales analysis report D. a forecast Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

11. Jones Company pays its large suppliers using e-commerce (bank transfers), and pays its smaller suppliers by cheque. All payments are based upon supplier invoices that have been matched to purchase orders and receiving documents proving that goods have been received. Which of the following is an example of a data item that pertains to the accounts payable process?

A. Receiving document details B. Cheque details C. Purchase order number D. List of outstanding invoices Ans: C Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty Hard

12. Jones Company pays its large suppliers using e-commerce (bank transfers), and pays its smaller suppliers by cheque. All payments are based upon supplier invoices that have been matched to purchase orders and receiving documents proving that goods have been received. Which of the following is an example of information that pertains to the accounts payable process?

A. Item number B. Cheque details C. Purchase order number D. Customer name Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Hard

13. The list of all your purchases from Amazon (books bought, price paid, dates) would be considered to be: A. data B. information C. knowledge D. experience Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Easy

14. Which of the following items would be considered to be information?

A. building number B. sales invoice C. invoice number D. supplier name Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Medium

15. If Amazon uses a list of all your purchases (books bought, price paid, dates) to be able to recommend other books to you, then Amazon is using:

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Chapter 1: The Modern Organization in the Global Web-Based Environment

A. data B. information C. knowledge D. experience Ans: C Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Easy

16. You are registering for the next semester at your university. When you use the combination of your major, the courses you need, the prerequisites for each course, the times you need each course, and the professors teaching each section, to select your class schedule, you are using: A. information B. knowledge C. experience D. data Ans: B Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Medium

17. Which of the following is an example of knowledge that pertains to the accounts payable process?

A. Experience that indicates which suppliers provide the best quality products B. Analysis that lists which suppliers provide the highest price products C. List of outstanding invoices D. Comparison of amounts owed to the available cash in bank Ans: A Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Hard

18. A company has decided to hire only those students who have a grade point average of 3.5 or higher.

They have found that such employees seem to learn faster for the type of work that they do. To make this decision, the company is using: A. Data items B. Information C. Knowledge D. Transactions Ans: C Feedback: Information Systems: Concepts and Definitions p. 11 Difficulty: Easy

19. Stef has prepared a document that includes a description of the buildings where the computer equipment is housed, with the related hardware and software. The document also describes the services provided by the information technology (IT) department, and has an organization chart of the IT personnel that support the organization. The document that Stef prepared is called a(n) information technology

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

A. Platform B. Strategic plan C. Architecture D. Infrastructure Ans: D Feedback: Information Systems: Concepts and Definitions p. 12 Difficulty: Hard

20. You have described the physical facilities, IT components, IT services, and IT management that will support your entire organization. This is a(n): A. information technology architecture B. information technology infrastructure C. information technology D. computer-based information system Ans: B Feedback: Information Systems: Concepts and Definitions p. 12 Difficulty: Easy

21. The integration of economic, social, cultural, and ecological facets of life, enabled by information technologies is called: A. regionalization B. nationalization C. globalization D. business environment Ans: C Feedback: The Global, Web-Based Platform p. 13 Difficulty: Easy

22. Friedman’s first flattener was the collapse of the Berlin wall. Why was this flattener important?

A. It helped think of the world as a single economy B. Software and hardware became easier to use in Europe C. Data communications infrastructures were immediately broadened D. The use of the English language increased in Europe Ans: A Feedback: Table 1.2, p. 14 Difficulty: Medium

23. The second flattener described by Friedman popularized the internet and made the web easy to navigate. What was this flattener?

A. Netscape going public B. The ability to upload files to the internet C. The development of FTP, file transfer protocol D. Development of browsers that could handle multiple languages

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Ans: A Feedback: Table 1.2, p. 14 Difficulty: Medium

24. Computer software can communicate and work with other software without human intervention. To be effective, such software needs standards, such as Extensible Markup Language (XML). Friedman described such software that uses less human intervention as one of his flatteners called: A. Uploading B. Supply chaining C. Work-flow software D. Insourcing Ans: C Feedback: Table 1.2, p. 14 Difficulty: Medium

25. Which of the following best describes Friedman’s third flattener, development of work flow software?

A. availability of user friendly internet browser software to the public B. ability to upload content to the internet using open-source software C. having another company perform internal functions for your company D. enabling computer applications to interoperate without human intervention Ans: D Feedback: Table 1.2, p. 14 Difficulty: Medium

26. The fourth flattener described by Friedman led to a shift from a static, passive approach to media, to an active, participatory approach. What was this flattener?

A. Uploading B. Informing C. Outsourcing D. Offshoring Ans: A Feedback: Table 1.2, p. 14 Difficulty: Hard

27. One of Friedman’s forces, that he called “flatteners,” takes the form of open-source software, blogging and wikis. This force is: A. Uploading B. Supply chaining C. Informing D. Outsourcing Ans: A Feedback: Table 1.2, p. 14 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

28. If your university hires a company to manage its entire human resources function, then your university is practicing: A. insourcing B. outsourcing C. offshoring D. temporary hiring Ans: B Feedback: Table 1.2, p. 14 Difficulty: Medium

29. One of Friedman’s flatteners, which he also called forces, helps companies lower costs and concentrate on their core competencies. Which force was it?

A. Uploading B. Supply chaining C. Outsourcing D. Informing Ans: C Feedback: Table 1.2, p. 14 Difficulty: Hard

30. One of Friedman’s flattener’s is described as benefiting organizations by providing cheaper labour, lower taxes, fewer employee benefits due to moving operations to another country. This flattener is known as: A. Uploading B. Supply chaining C. Offshoring D. Outsourcing Ans: C Feedback: Table 1.2, p. 14 Difficulty: Hard

31. Friedman’s sixth force is offshoring, best described as: A. when a company moves an entire operation or certain tasks to another country B. companies and their suppliers collaborating and sharing information C. taking a specific function that your company was doing and having another company perform the same function D. creating content and uploading it to the internet using open source software, with worldwide accessibility Ans: A Feedback: Table 1.2, p. 14 Difficulty: Easy

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Chapter 1: The Modern Organization in the Global Web-Based Environment

32. Which of the following best describes Friedman’s seventh flattener, supply chaining?

A. having suppliers stock the shelves and do traditional employee jobs B. having a specific action that your company was doing done by another company C. companies, their suppliers, and their customers collaborate and share information D. computer applications interoperate, or communicate and work with one another Ans: C Feedback: Table 1.2, p. 14 Difficulty: Hard

33. One of Friedman’s flatteners requires common standards so that companies, their suppliers and their customers can collaborate and share information. This flattener is called: A. Supply chaining B. Offshoring C. The steroids D. Outsourcing Ans: A Feedback: Table 1.2, p. 14 Difficulty: Easy

34. Friedman’s flattener that delegates operations or jobs within a business to another company, which specializes in those operations is called: A. The steroids B. Informing C. Work-flow software D. Insourcing Ans: D Feedback: Table 1.2, p. 14 Difficulty: Easy

35. If UPS is taking Dell computers at the loading dock, and then shipping them to Dell customers, then Dell is practicing which of the following?

A. informing B. insourcing C. offshoring D. outsourcing Ans: B Feedback: Table 1.2, p. 14 Difficulty: Medium

36. The formation of global communities is facilitated by: A. informing B. insourcing C. outsourcing

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

D. offshoring Ans: A Feedback: Table 1.2 p. 14 Difficulty: Medium

37. One of Friedman’s flatteners is about new and dynamic forms of information technology which includes: instant messaging and file sharing, wireless technologies and voice over Internet protocol (VoIP).

This flatter is called: A. The steroids B. Informing C. Work-flow software D. Insourcing Ans: A Feedback: Table 1.2 p. 14 Difficulty: Easy

38. Friedman’s tenth force is called “the steroids” because it: A. is artificial B. is dangerous C. amplifies the other flatteners D. uses research to improve communication Ans: C Feedback: Table 1.2 p. 14 Difficulty: Easy

39. The combination of social, legal economic, physical and political factors that affect business activities comprise the: A. Business pressures from outside the organization B. Organization’s business environment C. Socio-cultural and legal environment D. Leadership Feedbacks undertaken Ans: B Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 16 Difficulty: Easy

40. Market pressures include which of the following?

A. global economy B. moderately strong competition C. homogeneous workforce D. weak customers Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 16-17 Difficulty: Easy

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41. Today’s customers have which of the following characteristics?

A. less knowledge about products B. less sophistication C. difficulty in finding information about products D. higher expectations Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17 Difficulty: Easy

42. Which of the following factors facilitated the move to a global economy?

A. Today’s state-of-the-art products B. Customers knowledgeable about the quality and availability of products C. Increased efforts to acquire and retain customers D. Emergence of the global, web-based platform Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17 Difficulty: Easy

43. Which of the following is an example of a market pressure that could affect businesses?

A. global economy and strong competition B. social responsibility C. technological innovation and obsolescence D. compliance with government regulations Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17 Difficulty: Easy

44. Which of the following is an example of a market pressure that could affect businesses?

A. the changing nature of the workforce B. social responsibility C. technological innovation and obsolescence D. compliance with government and regulations Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17 Difficulty: Easy

45. Consumer sophistication and expectations increase as customers become more knowledgeable about the availability and quality of products and services. What kind of software has been developed to improve the buyer’s experiences and help organizations better anticipate and serve their needs?

A. Less error-prone operating systems B. Transaction processing systems

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Customer relationship management software D. Office automation systems Ans: C Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17 Difficulty: Easy

46. Employees at the Granko Company are heavily involved in research and development. They are currently working on developing smaller, lighter and faster rechargeable batteries. This research is helping Granko Company deal with which of the following technology pressures?

A. Information overload B. Social responsibility C. Compliance with government regulations and deregulation D. Technological innovation and obsolescence Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17-18 Difficulty: Medium

47. Better Company has a unique only product, equipment that can be used to make telephone calls linked to your regular telephone line, as well as being an internet appliance and a television set. Which of the following business pressures would have the greatest effect on Better Company?

A. Social responsibility B. Information overload C. Technological innovation and obsolescence D. Compliance with government regulations and deregulation Ans: C Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 17-18 Difficulty: Medium

48. Effective decision-making requires that managers and others sift through a varying amount of data, information and knowledge. As the amount of data and knowledge increases, managers are more likely to experience which of the following technology pressures?

A. Information overload B. Social responsibility C. Compliance with government regulations and deregulation D. Technological innovation and obsolescence Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 18 Difficulty: Easy

49. Data mining is used to analyze large amounts of data to identify trends and patterns. Data mining and other knowledge management technologies assist managers in dealing with which of the following business pressures?

A. Social responsibility B. Information overload

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Chapter 1: The Modern Organization in the Global Web-Based Environment

C. The changing nature of the workforce D. Powerful customers Ans: B Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 18 Difficulty: Medium

50. Which of the following is an example of organizational social responsibility?

A. having employees work three shifts to ensure 24 hour coverage of duties B. implementing effective password controls over access to internal systems C. taking back used computers and recycling the components into the manufacturing process D. requiring your suppliers to submit all documents using the corporate extranet Ans: C Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 18 Difficulty: Hard

51. The digital divide is associated with which type of societal pressure?

A. social responsibility B. government regulations C. protection against terrorism D. ethics Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p.19 Difficulty: Easy 52. A development that has helped to combat the increasing size of the digital divide worldwide is: A. Easy to use web browsers B. Low cost netbook computers C. Cybercafes in public places D. Readily accessible wireless access points Ans: C Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 19 Difficulty: Easy

53. Grameen Bank established cell phone service centres in remote areas to enable data communications for those who could not afford to purchase a cell phone. Such services help to reduce: A. Communications security problems B. Information overload C. The digital divide D. Threats to competitive entry Ans: C Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 19 Difficulty: Medium

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

54. Private health-care information is governed by what type of legislation in Canada?

A. Federal and provincial B. Federal only C. Provincial only D. Provincial and municipal Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 20 Difficulty: Medium

55. How do strategic systems provide for an effective organizational Feedback to business pressures? Such systems A. increase market share or profits, or prevent competitors from entering their markets B. decrease market share or profits, or prevent competitors from entering their markets C. result in the organization dealing with customers at the transaction level D. provide reports of accounts payable or other systems that aid in the decision making process Ans: A Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 21 Difficulty: Easy

56. The strategy of producing customized products and services is called: A. niche marketing B. computer-aided design C. vertical marketing D. make-to-order Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 23 Difficulty: Medium

57. Bright Blue Jeans Limited has a web site service where you can order jeans in any size and length from four of its styles. This type of service is called: A. Supply chain management B. Customer service hotline system C. Telemarketing international D. Mass customization Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 23 Difficulty: Easy

58. When identical items are produced in large quantities, this is called: A. strategic systems B. customer focus C. mass customization D. mass production

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Ans: D Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 23 Difficulty: Easy

59. Janet works in the information systems department of a large organization. She interfaces between users and programs and determines information requirements and technical specifications for new applications.

Her job title is likely: A. Network manager B. Systems analyst C. Web designer D. Project manager Ans: B Feedback: Table 1.3, p. 26 Difficulty: Easy

60. The person at an organization who manages access to systems and the ethical and legal use of information systems would likely be called the: A. Applications development manager B. Business analyst C. Emerging technologies manager D. Computer security manager Ans: D Feedback: Table 1.3, p. 26 Difficulty: Medium

61. Which of the following departments could best make use of information technology in an organization?

A. all departments B. supply chain management C. customer relationship management D. sales Ans: A Feedback: Table 1.3, p. 26 Difficulty: Easy

Short Answer and Discussion Questions

1. How does continuing technological innovation in payment technology affect retail businesses and financial institutions?

Feedback: Chapter opening case p.2

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

2. Differentiate between management information systems and information technology.

Feedback: Material following chapter opening case p. 4

3. Explain why planning for IT applications is important. Discuss the different components of effective planning for IT. Feedback: Importance of planning for IT p. 4-6

4. Data communications and video conferencing are being used to provide new services to consumers such as those described in IT’s About Business 1.1. Discuss the types of serivces that might be used by such organizations.

Feedback: Importance of planning for IT p. 4-6

5. Discuss the purpose of business process reengineering and its relationship to information technology.

Feedback: Section 1.2

6. Differentiate among data, information, and knowledge.

Feedback: Information Systems: Concepts and Definitions p. 11-13

7. Differentiate between information technology architecture and information technology infrastructure.

Feedback: Information Systems: Concepts and Definitions p. 12

8. Describe the global, Web-based platform proposed by Friedman.

Feedback: The Global, Web-Based Platform p. p 14

9. Discuss Friedman’s three stages of globalization.

Feedback: The Global, Web-Based Platform p. 14

10. Describe what Friedman calls “the steroids.”

Feedback: The Global, Web-Based Platform p. p. 14

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11. Describe Friedman’s 10 flatteners.

Feedback: The Global, Web-Based Platform p. 14

12. Discuss the business pressures that face organizations today.

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 16-21

13. What does social responsibility mean and how does IT contribute to social responsibility?

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 18-19

14. Discuss organizational Feedbacks to today’s business pressures.

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 21-23

15. Differentiate between mass customization and mass production.

Feedback: Business Pressures, Organizational Feedbacks, and IT Support p. 23

16. Describe why information systems and information technologies are integral to your lives.

Feedback: Why Are Information Systems Important to You? p. 24

17. Discuss and debunk four myths about careers in information technology.

Feedback: Why Are Information Systems Important to Me? p. 25

18. The closing cases, Pippalily.com describes how the Internet was used to sell and market a new product, comfortable baby slings. Discuss how the Internet can be used to help a small business market its products.

Feedback: Closing case, p. 33

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Cases

Note that these cases have questions that apply to multiple chapters, and are reproduced in the appendix, which show all parts of the question.

1. Sweety Snacks Limited (SSL) is a coffee shop chain that has hundreds of locations around the world.

Recently, it has been experiencing slumping sales due to the recession, and decided to close some of its stores. The remaining stores have been asked to pay closer attention to their sales and inventory, as well as trying to reduce costs, by using the information available from their computer-based information systems.

A) Describe an information technology (IT) architecture. How would an IT architecture be helpful to SSL? (2 marks) Feedback: p. 12 B) Friedman described ten forcers or ‘flatteners’ as contributing to a ‘flat world.’ For each of the three flatteners listed below, describe the flattener clearly. Use the table below for your answer. (3 marks) Flattener title Work-flow software Uploading Supply chaining

Flattener description (3 marks, 1 mark each)

Feedback: p. 14 2. Happy Pets Company (HPC) is an international company that makes pet food. HPC has many manufacturing locations around the world. It sells its products to a wide variety of outlets – pet stores, grocery stores and department stores. Retailers can order products via the internet using HPC’s secure extranet, or via many other more traditional methods (e-mail, telephone, or paper orders).

HPC produces both dry and wet pet food products, including pet foods for various animals, including special products for older dogs, and for hypo-allergenic diets. It also produces pet food treats, in many different flavours and shapes. The only products that have seasonal demand are the pet food treats, which seem to sell more around holiday times.

HPC conducts research into its brands and about pet food dietary needs, and regularly updates its products, providing at least one new type of pet food every two years.

A) Describe data items, information and knowledge, providing a clear example of how HPC would use each of these during the conduct of its business. Use the table below to record your answer. (6 marks) Feedback: p. 11. Examples are based upon the scenario of the case. Other examples are possible.

Description of data item, information and knowledge Data Items - Elementary descriptions of things, events, activities, and transactions that are recorded, classified and stored but not organized to convey meaning.

-Raw facts about events occurring in the (business) environment that you wish to record

How HPC would use these during the conduct of its business -HPC would collect data from the transactions that occur in the ordering system.

-HPC would use data from individual transactions to provide source data for other reporting systems.

-HPC would use data collected for analysis of seasonal trends.

Notes for markers: Students may take a more specific approach, i.e. discuss individual data items such as Customer Name, Item Code, Price, etc. Alternatively, they may look at

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Chapter 1: The Modern Organization in the Global Web-Based Environment

Information - Data that has been organized to convey meaning/value to the recipient.

Knowledge - Data and/or information that has been organized and processed to convey understanding, experience, learning, and expertise in a particular subject domain (or current business problem.)

22

it from the pov of attributes in an ER model.

Either of these approaches would also be acceptable.

-HPC would organize data regarding customers and sales volumes to ID biggest orders by client.

-HPC would use information from the ordering system to help determine necessary inventory/production levels.

-HPC could use information from the online ordering system to give incentives for frequent or high-volume online orders -HPC would use knowledge about its (previous) products to improve the formulas.

-HPC would use knowledge about its customer relations to provide for an improved quality of service to its customers -HPC would use knowledge about its seasonal sales to improve year-round product sales.

3. Camelot Industries Ltd. (CIL) sells card decks, all kinds of them. Playing cards for children and adults, tarot cards (for self-analysis and fortune telling), and a variety of new age cards such as angel cards, dragon cards, sacred geometry cards and native medicine cards. Traditionally, CIL sold only to retail outlets, although they had factory direct sales at their distribution centre every morning.

Last year, CIL created a web site, camelotcards.com, used to sell cards directly to a broader range of retailers and to the general public. To help its existing dealer network, the web site has a location directory, so that individuals can find out where the card deck of their choice is selling in their area. Also, to help its existing dealer network, sales to the general public are accepted only if the individual is buying at least ten decks of cards. Otherwise, the individual is urged to go their nearest new age book or novelty store.

Camelot Industries Ltd. (CIL) has 35,000 retailers around the world that purchase its products.

CIL uses functional software to handle its transaction processing for sales to these retailers.

A) Using the following table, describe the four listed business pressures and explain how each pressure would affect Camelot Industries Ltd. (8 marks) Feedback: p. 17-21 (explanations of how it affects CIL are examples only, other valid Feedbacks may apply) Pressure Global economy and strong competition

Powerful customers

Description (1 mark each) Highly competitive global marketplace, facilitated by the webbased platform, regional trade agreements and rise of powerful economies such as India and China.

How it affects Camelot Industries Ltd. (1 mark each) Foreign competitors with lower production and labour costs may be able to undercut CIL`s prices, provide competing goods from virtual retail sites. To compete, CIL will need to provide easily available, quality products at competitive prices.

Increasing knowledge about product availability and quality has increased customers`sophistication and expectations.

CIL will need to cater to these greater demands to acquire and retain customers. The new website is necessary to satisfy customers information and purchasing requirements.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Compliance with government regulations and deregulation Protection against fraud or terrorist attacks

Government regulations re. health, safety, environmental control and equal opportunity place constraints on businesses, while deregulation may intensify competition.

Pressure to help protect against terrorist attacks, obliges organizations to secure their computer systems from fraudulent activity that might help fund such activities

While subject to greater competition from foreign firms, CIL will still need to manage the costs of meeting local regulatory requirements.

A retail web presence will further expose CIL to fraudulent activity, so CIL will need to safeguard its computing and information resources from intruders

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 2: Information Systems: Concepts and Management

True/False

1. The two major determinants of information systems support are the functions that employees perform within organizations and the cost of the information systems.

Ans: False. The second determinant should be « organization’s structure. » Feedback: Types and Purposes of Information Systems p. 37 Difficulty: Easy

2. Information systems tend to follow the structure of organizations and they are based on the needs of employees.

Ans: True Feedback: Types and Purposes of Information Systems p. 37 Difficulty: Easy

3. Software is a set of programs that enable the hardware to process data.

Ans: True Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Easy

4. Procedures are the set of instructions about how to use information systems to process information and generate desired output.

Ans: True Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Easy

5. Enterprise resource planning systems tightly integrate the functional area information systems via a common database.

Ans: True Feedback: Types and Purposes of Information Systems p. 42 Difficulty: Easy

6. Transaction processing systems tightly integrate the functional area information systems via a common database.

Ans: False. This describes the role of ERP (enterprise resource planning systems).

1

Chapter 2: Information Systems: Concepts and Management

2

Feedback: Types and Purposes of Information Systems p. 42 Difficulty: Easy

7. Transaction processing systems provide the input for the organization’s databases.

Ans: True Feedback: Types and Purposes of Information Systems p. 42-43 Difficulty: Easy

8. An organization’s supply chain describes the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers.

Ans: True Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Easy

9. Supply chains are composed of only physical product flows.

Ans: False. An organization’s supply chain describes the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers.

Feedback: Types and Purposes of Information Systems p.43 Difficulty: Easy

10. If you order a computer from Dell, the process of approving your credit card is an information flow along Dell’s supply chain.

Ans: True Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Easy

11. Clerical workers are supported mainly by office automation systems.

Ans: True Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

12. Functional area information systems summarize data and prepare reports, and provide the major support for middle-level managers.

Ans: True Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

13. Lower level managers make tactical decisions, which generally deal with activities such as short-term planning, organizing, and control.

Ans: False. This is what middle managers do.

Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

14. Dashboards provide rapid access to timely information and direct access to structured information in the form of reports.

Ans: True Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

15. Competitive advantage helps a company control a market and generate larger-than-average profits.

Ans: True Feedback: Competitive Advantage and Strategic Information Systems p. 45 Difficulty: Easy

16. Michael Porter concludes that the overall impact of the Internet is to increase competition, which positively impacts profitability.

Ans: False. It reduces profitability.

Feedback: Competitive Advantage and Strategic Information Systems p. 46 Difficulty: Easy

17. The Internet increases traditional barriers to entry into a market.

Ans: False. It reduces these barriers.

Feedback: Competitive Advantage and Strategic Information Systems p. 46 Difficulty: Easy

18. The Internet decreases customers’ bargaining power.

Ans: False. It increases bargaining power.

Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Easy

19. Information-based industries face the most danger from substitutes.

Ans: True Feedback: Competitive Advantage and Strategic Information Systems p. 47

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Chapter 2: Information Systems: Concepts and Management

Difficulty: Easy

20. The music industry is a good example of the extremely low variable costs of digital products.

Ans: True Feedback: Competitive Advantage and Strategic Information Systems p. 48 Difficulty: Easy

21. Information technology makes managers more productive.

Ans: True Feedback: Why Are Information Systems So Important to Us? p. 52 Difficulty: Easy

22. Information technology increases the number of employees who can report to a single manager.

Ans: True Feedback: Why Are Information Systems So Important to Us? p. 52 Difficulty: Easy

23. As computers gain in intelligence and capabilities, the competitive advantage of replacing people with machines is decreasing rapidly.

Ans: False. It increases competitive advantages.

Feedback: Why Are Information Systems So Important to Us? p. 53 Difficulty: Easy

24. End user computing includes employees directly using computers in their work.

Ans: True Feedback: Managing Information Resources p. 56 Difficulty: Easy

Multiple Choice

1. One of the reasons that a technology infrastructure is important in the health care industry is so that: A. Data about patients can be shared among doctors and medical organizations B. Information can be readily updated and corrected by all organizations C. Programs can be shared and transformed by multiple organizations D. The same operating systems can be used by doctors and medical organizations Ans: A

4

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

5

Feedback: Information Technology (IT) Governance and Management p. 36 Difficulty: Medium

2. Two major determinants of information systems support in organizations are: A. The functions performed by both executive management and operational management B. The organization’s structure and the functions that employees perform within the organization C. Information technology governance and the nature of strategic information systems used D. The functions that employees perform within the organization and the types of functional systems Ans: B Feedback: Information Technology (IT) Governance and Management p. 37 Difficulty: Hard

3. The purpose of corporate governance is for the board of directors and executives to A. Implement strategic information systems B. Ensure competitive advantage is complete C. Effectively manage the organization D. Respond promptly to consumer complaints Ans: C Feedback: Information Technology (IT) Governance and Management p. 38 Difficulty: Medium

4. IT governance is a structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals and objectives by: A. Approving all information systems that are proposed by the technology group B. Hiring IT management that is technologically the best in its field C. Making sure that users approve all system changes prior to their implementation D. Adding value while balancing risk versus return over IT and its processes Ans: D Feedback: Information Technology (IT) Governance and Management p. 38 Difficulty: Hard

5. A set of programs that enable the hardware to process data is called: A. hardware B. software C. database D. network Ans: B Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Easy

6. A collection of related files, tables, and so on that stores data and the associations among them is called a:

Chapter 2: Information Systems: Concepts and Management

A. hardware B. software C. database D. network Ans: C Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Easy

7. Procedures are an important component of computer-based information systems. In this context, procedures are: A. written, formal procedures telling employees what to do during their time at the company B. the instructions used by computer programs to execute programs and create the desired screen displays and output C. all instructions used to establish and maintain computer based systems so that they are always available D. instructions about how to combine hardware, software, databases and networks in order to process and output information Ans: D Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Medium

8. Programs could be used by the human resources department to screen job applicants and to monitor employee turnover. Such programs would be called: A. enterprise resource planning systems B. decision support systems C. office automation programs D. application programs Ans: D Feedback: Types and Purposes of Information Systems p. 41 Difficulty: Easy

9. Two information systems that support the entire organization are: A. Enterprise resource planning systems, dashboards B. Transaction processing systems, office automation systems C. Enterprise resource planning systems, transaction processing systems D. Expert systems, office automation systems Ans: C Feedback: Types and Purposes of Information Systems p. 42 Difficulty: Medium

10. One of the purposes of ERP (enterprise resource planning) systems is to: A. Help maintain separate systems for functional areas with separate data files B. Correct a lack of communication among the functional area information systems C. Reduce the level of common information provided among departments D. Provide separate databases for the different resource components of organizations

6

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: B Feedback: Types and Purposes of Information Systems p. 42 Difficulty: Hard

11. When your purchases are swiped over the bar-code reader at the point-of-sale terminals at a retailer such as Wal-Mart, the type of system that records the data is called a(n).

A. transaction processing system B. functional area information system C. dashboard D. office automation system Ans: A Feedback: Types and Purposes of Information Systems p.42 Difficulty: Medium

12. The flow of materials, information, money and services from suppliers of raw material through factories and warehouses to the end customers at an organization is called a: A. Supply chain B. Data base C. Decision support system D. Value chain Ans: A Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Easy

13. Supply chain management systems are normally which type of information system?

A. departmental information systems B. enterprisewide information systems C. interorganizational information systems D. end-user computing systems Ans: C Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Easy

14. An inter-organizational system is a system that connects two or more organizations. Which of the following is an inter-organizational system?

A. Functional area information system B. Enterprise resource planning system C. Electronic commerce system D. Transaction processing system Ans: C Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Medium

7

Chapter 2: Information Systems: Concepts and Management

8

15. Electronic commerce systems are which type of information system?

A. departmental information systems B. enterprisewide information systems C. interorganizational information systems D. end-user computing systems Ans: C Feedback: Types and Purposes of Information Systems p. 43 Difficulty: Easy

16. Individuals who deal with the day-to-day functioning of the organization and make routine decisions typically are called: A. clerical workers B. lower-level managers C. middle managers D. senior managers Ans: B Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

17. Professional people who act as advisors and assistants to both top and middle managers and are often subject-area experts in a particular area are called: A. clerical workers B. operational managers C. knowledge workers D. middle level managers Ans: C Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

18. People who make decisions that deal with situations that may significantly change the manner in which business is done.

A. knowledge workers B. middle managers C. operational managers D. executives Ans: D Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

19. Systems that attempt to duplicate the work of human experts by applying reasoning capabilities are called: A. expert systems B. functional area information systems

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. decision support systems D. business intelligence systems Ans: A Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

20. Employees that are considered experts in a particular subject area, often acting as advisors to middle managers and executives are known as: A. knowledge workers B. consultants C. middle management D. transition workers Ans: A Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

21. The purpose of a management information system is to produce: A. software assistance for clerical staff, lower and middle managers B. summarized reports or reports that provide information usually in one functional area C. computer-based support for complex, non-routine decisions for knowledge workers D. data that support all managers and workers in the organization Ans: B Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Easy

22. Which of the following is a DSS (decision support system) characteristic? DSS A. rely on existing data flow B. are relatively inflexible C. support the use of analysis tools D. have little analytical capability Ans: C Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Hard

23. An information system that analyzes credit card applications and suggests approval or denial is a(n): A. expert system B. dashboard C. decision support system D. business intelligence system Ans: A Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Medium

9

Chapter 2: Information Systems: Concepts and Management

10

24. Systems that provide rapid access to timely information and direct access to structured information in the form of reports and graphs are called: A. expert systems B. executive dashboards C. functional area information systems D. decision support systems Ans: B Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Easy

25. Software that provides advanced “what-if” analysis and simulations is called: A. Business intelligence software B. Decision support software C. Knowledge management systems D. Expert systems Ans: B Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Easy

26. What type of support do expert systems provide?

A. Support for complex, non-routine decisions dealing with large volumes of data B. Reasoning capabilities, knowledge, and expertise within a specific domain C. Graphical display of in-depth analysis and trends D. Development of documents in a standard, easy-to-use format Ans: B Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Hard

27. ABC Limited’s sales system has produced a report of sales by department, using the specific criteria of larger sales greater than $500 per customer. What type of information system produced the report?

A. Business intelligence system B. Management information system C. Expert system D. Office automation system Ans: B Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Hard

28. Western Teaching Hospital has acquired an information system that has details about tropical diseases, and helps doctors diagnose these diseases by walking them through a series of questions. This information system is likely a(n): A. Expert system

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. Decision support system C. Business intelligence system D. Executive dashboard Ans: A Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Medium

29. Systems that apply reasoning capabilities, knowledge and expertise within a specific domain, used primarily to support knowledge workers are called: A. Business intelligence systems B. Management information systems C. Executive digital dashboards D. Expert systems Ans: D Feedback: Types and Purposes of Information Systems p. 45 Difficulty: Medium

30. Which of the following typically describes an office automation system? A system that is used to A. Support the monitoring, collection, storage and processing of data B. Develop documents, schedule resources and communicate C. Support “what-if” analysis and simulations D. Analyze data for non-routine decision making Ans: B Feedback: Types and Purposes of Information Systems p. 44 Difficulty: Easy

31. Under Porter’s competitive forces model, the threat of substitution for an organization is high when: A. There are few substitutes for an organization’s products B. The threat of rivalry is low C. Competition in the market is low D. There are many substitutes for an organization’s products Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Easy

32. The threat of new competitor entry is high when it is: A. Easy to enter your market and low when significant barriers to entry exist B. Hard to enter your market and easy when significant barriers to entry exist C. Easy to enter your market and high when significant barriers to entry exist D. Hard to enter your market and high when significant barriers to entry exist Ans: A Feedback: Competitive Advantage and Strategic Information Systems p. 46 Difficulty: Hard

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Chapter 2: Information Systems: Concepts and Management

12

33. How does the World Wide Web affect the threat that new competitors will enter the market?

A. Decreases, by increasing the barriers to entry B. Increases, by reducing traditional barriers to entry C. Decreases, by reducing the bargaining power of customers D. Increases, by reducing the bargaining power of customers Ans: B Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Hard

34. The World Wide Web increases a buyer’s access to information about products and supplies. Internet technologies can also A. Increase customers’ switching costs B. Provide fewer sources of supply C. Reduce customers’ switching costs D. Provide more complex information Ans: C Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Hard

35. There are many different cereal products available on the market from many different companies.

Recently, new products have emerged from small companies that focus on particular ingredients, for example a puffed amaranth grain cereal. With respect to Porter’s competitive forces model, we would say that for the cereal industry: A. The threat from rivalry is low B. The bargaining power of suppliers is high C. The threat from rivalry is high D. The bargaining power of suppliers is low Ans: C Feedback: Competitive Advantage and Strategic Information Systems p. 47-48 Difficulty: Hard

36. The Internet has had which of the following impacts on the way you purchase your textbooks? It A. gives you fewer choices.

B. increases your bargaining power.

C. provides you with less information.

D. decreases your bargaining power.

Ans: B Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Medium

37. Information-based industries are most susceptible to which one of Porter’s five forces?

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. threat of substitute products Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Medium

38. The visibility of Internet applications on the Web makes proprietary systems more difficult to keep secret. This is an example of which of Porter’s five forces?

A. threat of entry of new competitors B. bargaining power of suppliers C. bargaining power of customers D. rivalry among existing firms in an industry Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 47 Difficulty: Medium

39. Porter’s value chain model distinguishes between primary and support activities. Which of the following is a primary activity?

A. procurement B. human resources management C. accounting and finance infrastructures D. Outbound logistics (storage and distribution) Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Hard 40. Porter’s value chain model distinguishes between primary and support activities. Which of the following is a primary activity?

A. procurement B. human resources management C. accounting and finance infrastructures D. marketing and sales Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Medium

41. Porter’s value chain model is used to identify specific activities where a firm can use competitive strategies to achieve the greatest impact. Which of the following activities are those that relate to the production and distribution of the firm’s products and services?

A. Support activities B. Procurement C. Primary activities D. Human resource management

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Chapter 2: Information Systems: Concepts and Management

14

Ans: C Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Medium

42. Porter’s value chain model explains that support activities contribute to a firm’s competitive advantage by supporting the primary activities. Which of the following is a support activity?

A. Outbound logistics (storage and distribution) B. Marketing and sales C. Inbound logistics (inputs) D. Product and technology development (research and development) Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Hard

43. Porter’s value chain model is used to identify specific activities where they can use competitive strategies to achieve the greatest impact. Which of the following activities do not directly add value to the firm’s products or services?

A. Inbound logistics B. Support activities C. Customer service D. Primary activities Ans: B Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Hard

44. Wal-Mart’s automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

A. cost leadership B. differentiation C. innovation E. customer-orientation Ans: A Feedback: Competitive Advantage and Strategic Information Systems p. 49 Difficulty: Medium

45. A major department store chain implemented an automatic inventory replenishment system, which enabled the company to reduce inventory storage requirements below that of other department stores. As a result, the stores use floor space only to sell products, and not to store them, reducing inventory expenses.

This strategy for competitive advantage is called: A. Customer-orientation strategy B. Innovation strategy C. Differentiation strategy D. Cost leadership strategy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

15

Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 49 Difficulty: Easy

46. A strategy for competitive advantage that results in the organization producing products and/or services at the lowest cost in the industry is called a(n): A. Operational effectiveness strategy B. Cost leadership strategy C. Differentiation strategy D. Innovation strategy Ans: B Feedback: Competitive Advantage and Strategic Information Systems p. 48-49 Difficulty: Easy

47. Offering different products, services, or product features is which strategy for competitive advantage?

A. cost leadership B. differentiation C. innovation D. customer-orientation Ans: B Feedback: Competitive Advantage and Strategic Information Systems p. 50 Difficulty: Easy

48. A competitive strategy that concentrates on making customers happy is called a(n): A. innovation strategy B. operational effectiveness strategy C. cost leadership strategy D. customer-orientation strategy Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 50 Difficulty: Easy

49. Jambalaya Company implemented a new information system which improved internal business processes, reducing costs substantially, so that the company could produce products at a lower cost than many of its rivals. This strategy is called a(n): A. Innovation strategy B. Customer-orientation strategy C. Differentiation strategy D. Operational effectiveness strategy Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 50-51 Difficulty: Medium

Chapter 2: Information Systems: Concepts and Management

16

50. Which of the following best describes an operational effectiveness strategy?

A. Improve the manner in which internal business processes are executed B. Introducing new products and services or adding new features to existing products C. Concentrating on making customers happy, improving customer relationships D. Offer different products, services or product features Ans: A Feedback: Competitive Advantage and Strategic Information Systems p. 50-51 Difficulty: Easy

51. Friddle Rock Manufacturing decided to update its product profile, and added many new features to its existing products. These were a success, resulting in increased sales for the company. This strategy is called a(n): A. Innovation strategy B. Customer-orientation strategy C. Cost leadership strategy D. Operational effectiveness strategy Ans: A Feedback: Competitive Advantage and Strategic Information Systems p. 50 Difficulty: Easy

52. Introducing new products and putting new features in existing products is which strategy for competitive advantage?

A. cost leadership B. differentiation C. innovation D. customer-orientation Ans: C Feedback: Competitive Advantage and Strategic Information Systems p. 50 Difficulty: Easy

53. Improving the manner in which internal business processes are executed is which strategy for competitive advantage?

A. cost leadership B. differentiation C. innovation D. operational effectiveness Ans: D Feedback: Competitive Advantage and Strategic Information Systems p 50 Difficulty: Easy

54. When Amazon welcomes you by name back to its Web site on your second visit, this is an example of which strategy for competitive advantage?

A. differentiation

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. innovation C. operational effectiveness D. customer orientation Ans: D Feedback: Competitive Advantage and Strategic Information Systems p. 51 Difficulty: Medium

55. The science of adapting machines and work environments to people is known as: A. ergonomics B. social networking C. robotics D. strategic planning Ans: A Feedback: The Importance of Information Systems and their Management p. 53 Difficulty: Medium

56. The long-term use of keyboards can lead to: A. Better vision from the need to look at bright screen lights daily B. Better quality of life by having light work indoors rather than in heavy industry C. Problems with balance or other inner ear issues D. Repetitive strain injuries such as backaches and muscle tension in the wrists and fingers Ans: D Feedback: The Importance of Information Systems and their Management p. 53 Difficulty: Easy

57. Which of the following is a traditional, major IS function?

A. Managing systems development B. Partnering with the firm’s executives C. Managing outsourcing D. Educating non-IS managers about IT Ans: A Feedback: Table 2.3, p. 57 Difficulty: Medium

58. Which of the following is a traditional major function of the information systems department (as opposed to a new consultative major information systems function)?

A. Supporting end-user computing B. Partnering with the executives C. Providing technical services D. Managing outsourcing Ans: C Feedback: Table 2.3, p. 57 Difficulty: Medium

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Chapter 2: Information Systems: Concepts and Management

18

59. A typical function of a CIO (Chief Information Officer) is to : A. Approval of systems deployment B. Programming new applications C. Setting password access levels D. Development of operating systems Ans: A Feedback: IT’s About Business p. 58 Difficulty: Easy

60. The Intel Reader converts scanned text from written into verbal form. This is an example of using technology to: A. Provide job employment B. Improve productivity C. Establish a position hierarchy D. Increase the level of clerical work Ans: B Feedback: End of chapter case, Letting the Computer Read to You p. 65 Difficulty: Easy

Short Answer and Discussion Questions

1. Using Table 2.2 and our opening case, Electronic Records to Transform Health Care, discuss the types of information systems that might be used by doctors and other medical practitioners.

Feedback: Types and Purposes of Information Systems p. 40

2. Define computer-based information systems and their components.

Feedback: Types and Purposes of Information Systems p. 40

3. Explain why functional area information systems are located at the top of Figure 2.1.

Feedback: Types and Purposes of Information Systems p.40

4. Discuss the classification of information systems by breadth of support in the organization.

Feedback: Types and Purposes of Information Systems p. 40-41 Including Table 2.2

5. Discuss the major capabilities of information systems.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

19

Feedback: Types and Purposes of Information Systems p. 41

6. Differentiate among the various types of employees in the organization.

Feedback: Types and Purposes of Information Systems p. 43-44

7. Discuss the computer support provided for each level of employees in the organization.

Feedback: Types and Purposes of Information Systems p. 43-44

8. Differentiate among transaction processing systems, enterprise resource planning systems, office automation systems, functional area information systems, decision support systems, expert systems, and dashboards.

Feedback: Types and Purposes of Information Systems p. 42-44

9. Describe the five forces of Porter’s competitive forces model and explain how the Internet impacts each one.

Feedback: Competitive Advantage and Strategic Information Systems p. 46-48

10. Discuss why the variable cost of digital products is extremely low.

Feedback: Competitive Advantage and Strategic Information Systems p. 47

11. Differentiate between primary activities and support activities in Porter’s value chain model.

Feedback: Competitive Advantage and Strategic Information Systems p. 48-49

12. Provide an example for each of the five strategies for competitive advantage. (Do not use the examples provided in the book).

Feedback: Competitive Advantage and Strategic Information Systems p. 49-51

13. For each of the five strategies for competitive advantage, discuss whether they would be suitable for a company such as Under Armour.

Feedback: IT’s About Business p. 49-51

Chapter 2: Information Systems: Concepts and Management

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14. Describe several ways that IT is changing the manager’s job.

Feedback: Why Are Information Systems So Important to Us? p. 56-58

15. Describe the management of an organization’s IT resources.

Feedback: Why Are Information Systems So Important to Us? p. 56-58

16. Discuss how the use of the Intel Reader could be used to assist individuals working with different types of information systems.

Feedback: Table 2.2 (p. 44-45) and Closing Case, Letting the Computer Read to You, p. 65

Cases

Note that these cases have questions that apply to multiple chapters, and are reproduced in the appendix, which show all parts of the question.

1. GrameenPhone is using the Internet to help to bridge the digital divide in Bangladesh. Bangladesh has over 150 million people but there are relatively few land-line telephones. Cell phone use is exploding, with more than 16 million cell phone subscribers as of 2007. People use cell phones to hook up to the Internet, gain access to services such as e-mail, weather reports, and health information.

GrameenPhone established cell phone access centres where individuals without telephones could access the Internet using cell telephones for a fee. GrameenPhone is partly owned by Grameen Bank. These cell phone centres have provided access to information and data communications in villages where such access previously was not possible.

As a result, villagers in remote areas are now able to make use of the Internet to boost their local economies. For example, farmers in rural areas are now able to use cell phones to transact with customers and suppliers from other villages to buy and sell crops and animals.

In addition to cellular telephones, one of the cell phone access centres has decided to make computing services (computing, printing, processing) available to residents.

Required: For each of the following information systems, describe the information system and provide an example of how local business persons could use this type of system. (8 marks) • • • •

Office automation system Decision support system Supply chain management system Electronic commerce system

Feedback: p. 44-45 plus applied example

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

21

Suggested Solution: Information system description Office automation system: Are information systems which support the clerical staff, lower and middle managers, and knowledge workers.

Decision support system: an information system that supports knowledge workers with “what-if” analysis and business simulations.

Supply chain management system: is an information system that allows for the organizations in a supply chain to manage the flow of materials, information, money, and services from suppliers of raw material through from factories and warehouses to end customers.

Electronic commerce system: is a type of interorganizational information system.

How local business persons could use the system during the conduct of their business They are used to develop documents (word processing), schedule resources (MS schedule), communicate (email, text messaging, videoconferencing, etc.), and build spreadsheets to maintain sets of numbers for analysis.

Decision support systems could support GrameenPhone in its quest to expand its markets with valuable customer buying habits and other competitive information.

GrameenPhone could ensure that its products and services can be acquired for as low a cost as possible by working more closely with other companies in its supply chain. The flow of information could be shared more closely with the other companies.

These systems can be used to conduct B2B, B2C, and B2G business transactions.

2. Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

Required: Using Porter’s Competitive Forces Model, explain how the Internet has affected competition at organizations like car dealerships. (5 marks) Feedback: p. 46-48 Note that this question could be expanded by asking students to also explain or describe each of the competitive forces.

Suggested Solution: The focus should be on the internet and competition, not just a description of Porter’s competitive forces.

Porter’s five competitive forces Threat of entry of new competitors

The Internet has affected competition at organizations like car dealerships in the following ways The threat of entry of new competitors has increased with the internet as it is easier to sell cars online by setting up a website.

Chapter 2: Information Systems: Concepts and Management

Porter’s five competitive forces Bargaining power of suppliers Bargaining power of buyers Threat of substitute products or services

Rivalry among existing firms in the industry

22

The Internet has affected competition at organizations like car dealerships in the following ways The bargaining power of suppliers is high as the buyers (car dealerships) have few choices of auto manufacturers, which reduces their ability to negotiate price, quality and delivery terms.

The bargaining power of customers (buyers) is high as they have many choices of car models, makes and dealerships that they can negotiate price and quality.

Customers can also purchase a car from the US or overseas where prices are lower.

The threat of substitutions is high as there are many makes, models, fuel types (gas, diesel and hybrid) that customers can choose from. There are also other modes of transport, such as public transport that customers can use, especially in major cities, e.g. subway, train, bus and streetcars.

The threat from rivalry is high as there are many dealerships, with stiff competition between dealerships and even car manufacturers, using frequent marketing campaigns and special promotions to attract customers.

3. BestPay Inc. is an online service provider of payroll processing in Winnipeg, Manitoba, with over 125,000 customers. A review of the web site reveals that the organization is full service: you can purchase payroll software, or access systems online. BestPay provides payroll, human resources, retirement planning and tax services. Employees can even log on and use the systems as an internet-based time clock.

Required: For each of the five strategies for competitive advantage, describe the strategy, and explain how BestPay could implement the strategy. (10 marks) Feedback: p. 49-51

Describe the competitive strategy (one mark for each for a total of 5 marks) Cost leadership strategy: Produce products and/or services at the lowest cost in the industry

Differentiation strategy: Offer different products, services or product features

Innovation strategy: Introduce new products and services, add new features to existing products and

Explain how BestPay could implement the strategy (one mark for each valid example for a total of 5 marks) - Make use of advanced IT tools such as Web Services, Service Oriented architecture to reduce the cost of software development and customization -outsource software development to countries such as India, where labour costs are lower -implement self-serve whereby employees input their own personal, benefit or tax data and download and print their own payslips instead of mailing out paper copies as a means of reducing costs - Offer other new software and services for human resource management that competitors do not offer - offer a variety of methods for customers to access, use and pay for the company’s software products - offer software and services features or packages geared to different industries, types and sizes of businesses - offer advisory services that compliment existing offerings, e.g. tax advice and preparation of returns, retirement planning, benefits and financial planning.

- add features to their existing products for market niches (e.g.

Multi-language capabilities, variety of interface methods for clients with special needs)

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Describe the competitive strategy (one mark for each for a total of 5 marks) services, or develop new ways to produce them Operational effectiveness strategy: Improve the manner in which internal business processes are executed so that the firm performs similar activities better than its rivals

Customer-orientation strategy: Concentrate on making customers happy

23

Explain how BestPay could implement the strategy (one mark for each valid example for a total of 5 marks) - Points from Cost Leadership and Differentiation categories above would also be suitable here - Make use of advanced IT tools such as Web Services, Service Oriented architecture to improve the efficiency and reduce the cost of software development and customization - use IT tools to improve the efficiency and effectiveness of accessing, searching and analyzing customer data to enable faster and more knowledgeable Feedbacks to customer inquiries re payroll processing issues -implement self-serve whereby employees input their own personal, benefit or tax data and download and print their own pay slips instead of mailing out paper copies - monitor and analyze industry trends to anticipate and meet their customers’ needs with new and revised products - customizing software and services to customer requirements (e.g. customized software and service packages, design of user interfaces) -implement self-serve whereby employees input their own personal, benefit or tax data and download and print their own pay slips instead of mailing out paper copies - provide information in real-time, e.g. current pay and tax position instead of pay period to pay period - allow customers to customise pay slips, benefit reports, access benefit statements and set up alerts to track benefit claims - allow customers to file benefit claims with insurance companies electronically and access status of claims

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 3: Ethics, Privacy, and Information Security

True/False

1. A code of ethics is a collection of principles that are intended to guide decision making by members of the organization.

Ans: True Feedback: Ethical Issues p.70 Difficulty: Easy

2. What is unethical is not necessarily illegal.

Ans: True Feedback: Ethical Issues p.70 Difficulty: Easy

3. An individual or organization faced with an ethical decision is basically considering whether to break the law.

Ans: False. Although many illegal activities are also unethical, some unethical activities (such as lying on your resume) are not illegal.

Feedback: Ethical Issues p.70 Difficulty: Easy

4. Improvements in information technologies are leading to a decreasing number of ethical problems.

Ans: False. They lead to increasing numbers of ethical problems.

Feedback: Ethical Issues p.70 Difficulty: Easy

5. Past court decisions have stated that an individual’s privacy outweighs the needs of society.

Ans: False. Privacy must be balanced against the needs of society.

Feedback: Ethical Issues p.73 Difficulty: Easy

6. Past court decisions have stated that the public’s right to know is superior to the individual’s right of privacy.

Ans: True Feedback: Ethical Issues p.73

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Chapter 3: Ethics, Privacy, and Information Security

Difficulty: Easy

7. The process of compiling a digital dossier is called data aggregation.

Ans: False. Data aggregation is the process of collecting and organizing public data.

Feedback: Ethical Issues p. 73 Difficulty: Easy

8. Employees have limited protection under the law against employers’ surveillance.

Ans: True Feedback: Ethical Issues p.73 Difficulty: Easy

9. The law basically supports an employer’s right to read electronic mail and other electronic documents.

Ans: True Feedback: Ethical Issues p.73 Difficulty: Easy

10. The use of software to block connections to inappropriate Web sites is called electronic surveillance.

Ans: False. This process is called URL filtering.

Feedback: Ethical Issues p.73 Difficulty: Easy

11. The opt-out model of informed consent permits a company to collect personal information until the customer specifically requests that the data not be collected.

Ans: True Feedback: Ethical Issues p.73 Difficulty: Easy

12. Privacy advocates prefer the opt-out model of informed consent.

Ans: False. The opt-in model is preferred.

Feedback: Ethical Issues p.74 Difficulty: Easy

13. There are major differences among countries with respect to privacy regulations.

Ans: True

2

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Ethical Issues p.75-76 Difficulty: Easy

14. The emergence of the Internet has decreased the threats to information security.

Ans: False. It has increased the threats.

Feedback: Threats to Information Security p.76 Difficulty: Easy

15. The security of each computer on the Internet is independent of the security of all other computers on the Internet.

Ans: False. Such systems are interdependent Feedback: Threats to Information Security p.76 Difficulty: Easy

16. Malicious individuals can attack from anywhere in the world at any time.

Ans: True Feedback: Threats to Information Security p. 77 Difficulty: Easy

17. Smaller, more powerful computing devices have increased the threats to information security.

Ans: True Feedback: Threats to Information Security p. 77 Difficulty: Easy

18. The computing skills necessary to be a hacker are decreasing.

Ans: True Feedback: Threats to Information Security p. 77 Difficulty: Easy

19. To defend itself against downstream liability, a company must prove that it practices due diligence in information security.

Ans: True Feedback: Threats to Information Security p. 77 Difficulty: Easy

20. A risk to an information resource is any danger to which a system may be exposed.

3

Chapter 3: Ethics, Privacy, and Information Security

4

Ans: False. Risk is the likelihood (or probability) that a threat will occur.

Feedback: Threats to Information Security p. 78 Difficulty: Easy

21. The exposure of an information resource is the harm, loss, or damage that can result if a threat compromises that resource.

Ans: True Feedback: Threats to Information Security p. 78 Difficulty: Easy

22. The higher the level of an employee in organization, the lower the threat that he or she poses to the organization.

Ans: False. It would result in greater threat to the organization.

Feedback: Threats to Information Security p. 79 Difficulty: Easy

23. Tailgating occurs when an attacker watches an employee’s computer screen from behind him or her.

Ans: False. This is called shoulder surfing.

Feedback: Threats to Information Security p. 80 Difficulty: Easy

24. When an individual builds an inappropriate trust relationship with an employee in order to obtain unauthorized access privileges, he is practicing social engineering.

Ans: True Feedback: Threats to Information Security p. 81 Difficulty: Easy

25. In reverse social engineering, the employees approach the attacker.

Ans: True Feedback: Threats to Information Security p. 81 Difficulty: Easy

26. In pod slurping, perpetrators plug portable devices into the USB port of a computer and download huge amounts of information very quickly.

Ans: True Feedback: Threats to Information Security p. 83 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

27. Dumpster diving is always illegal because it involves trespassing on private property.

Ans: False. It is illegal in some areas but not in others.

Feedback: Threats to Information Security p.83 Difficulty: Easy

28. It is usually reasonably easy to recover from identity theft, provided that you can prove who you are.

Ans: False. It can be costly, time-consuming and difficult to recover.

Feedback: Threats to Information Security p. 84 Difficulty: Easy

29. A trade secret is an intellectual work, such as a business plan, that is a company secret and is not based on public information.

Ans: True Feedback: Threats to Information Security p. 84 Difficulty: Easy

30. College and university students are not immune to identity theft.

Ans: True Feedback: Threats to Information Security p. 84 Difficulty: Easy

31. The most common intellectual property related to IT is computer hardware.

Ans: False. The most common is IT software.

Feedback: Threats to Information Security p. 84 Difficulty: Easy

32. Copying a software program without making payment to the owner is called piracy.

Ans: True Feedback: Threats to Information Security p. 84 Difficulty: Easy

33. Computer viruses are segments of computer code that attach to existing computer programs and perform malicious actions.

Ans: True

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Chapter 3: Ethics, Privacy, and Information Security

6

Feedback: Threats to Information Security p. 85 Difficulty: Easy

34. Computer worms are destructive programs that replicate themselves without requiring another program to provide an environment for replication.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

35. Trojan horses are software programs that hide in other computer programs and reveal their designed behavior only when they are activated.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

36. Logic bombs are segments of computer code that are embedded within another computer program which activate and perform a destructive action at a certain time or date.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

37. A back door is typically a password, known only to the attacker, that allows an attacker to access an information system at will, without having to go through any security procedures.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

38. In a denial-of-service attack, the attacker overwhelms the target system with a flood of information requests.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

39. In a distributed denial-of-service attack, a coordinated stream of requests is launched against a target from many compromised computers at the same time.

Ans: True Feedback: Threats to Information Security p. 85 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

40. Zero-day attacks use descriptive e-mails to acquire sensitive personal information.

Ans: False. Zero-day attacks use vulnerabilities in software.

Feedback: Threats to Information Security p. 86 Difficulty: Easy

41. Phishing attacks take advantage of previously unknown vulnerabilities in a vendor’s software product.

Ans: False. This is a zero-day attack.

Feedback: Threats to Information Security p. 86 Difficulty: Easy

42. Alien software is clandestine software that is installed on your PC through duplicitous channels.

Ans: True Feedback: Threats to Information Security p. 86 Difficulty: Easy

43. Adware is designed to help pop-up advertisements appear on your screen.

Ans: True Feedback: Threats to Information Security p. 87 Difficulty: Easy

44. Spyware collects personal information about users without their knowledge.

Ans: True Feedback: Threats to Information Security p. 87 Difficulty: Easy

45. When companies require users to accurately select characters in turn from a series of boxes, attackers use screen scrapers to capture this information.

Ans: True Feedback: Threats to Information Security p. 87 Difficulty: Easy

46. In most cases, cookies track your path through Web sites and are therefore invasions of your privacy.

Ans: False. Most cookies store very little information.

Feedback: Threats to Information Security p. 87

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Chapter 3: Ethics, Privacy, and Information Security

8

Difficulty: Easy

47. Supervisory control and data acquisition systems control physical devices through electronic means.

Ans: True Feedback: Threats to Information Security p. 87-88 Difficulty: Easy

48. Cyberterrorism and cyberwarefare can attack supervisory control and data acquisition systems to cause widespread physical damage.

Ans: True Feedback: Threats to Information Security p. 88 Difficulty: Easy

49. Risk management identifies, controls, and minimizes the impact of threats.

Ans: True Feedback: Protecting Information Resources p. 90 Difficulty: Easy

50. Risk analysis assesses the value of each information asset, estimates the probability that each asset might be compromised, and compares the probable costs of each asset being compromised with the costs of protecting it.

Ans: True Feedback: Protecting Information Resources p. 90 Difficulty: Easy

51. The organization takes concrete actions against risks in risk analysis.

Ans: False. This is risk mitigation.

Feedback: Protecting Information Resources p. 90 Difficulty: Easy

52. When an organization continues to operate with no controls and plans to absorb damages that occur, it is practicing risk acceptance.

Ans: True Feedback: Protecting Information Resources p. 90 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

53. When an organization continues to operate with no controls and plans to absorb damages that occur, it is practicing risk mitigation.

Ans: False. This is risk acceptance.

Feedback: Protecting Information Resources p. 90 Difficulty: Easy

54. Managing risk by implementing controls to minimize the impact of a threat is risk limitation.

Ans: True Feedback: Protecting Information Resources p. 90 Difficulty: Easy

55. Purchasing insurance is a type of risk acceptance.

Ans: False. This is risk transference.

Feedback: Protecting Information Resources p. 90 Difficulty: Easy

56. Administrative controls prevent unauthorized individuals from gaining access to a company’s computer facilities.

Ans: False. These are physical controls Feedback: Protecting Information Resources p. 91 Difficulty: Easy

57. Doors, locks, and fences are types of physical controls.

Ans: True Feedback: Protecting Information Resources p. 91 Difficulty: Easy

58. Administrative controls restrict unauthorized individuals from using information resources.

Ans: False. These are access controls.

Feedback: Protecting Information Resources p. 92 Difficulty: Easy

59. Biometrics involves a person’s innate physical characteristics.

Ans: True Feedback: Protecting Information Resources p. 92 Difficulty: Easy

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Chapter 3: Ethics, Privacy, and Information Security

60. A retinal scan refers to “something the user knows.”

Ans: False. This is biometrics.

Feedback: Protecting Information Resources p. 92 Difficulty: Easy

61. A password refers to “something the user is.”

Ans: False. A password is something the user has.

Feedback: Protecting Information Resources p. 92 Difficulty: Easy

62. ID cards refer to “something the user has.”

Ans: True Feedback: Protecting Information Resources p. 92 Difficulty: Easy

63. Tokens refer to “something the user knows.”

Ans: False. These are something the user has.

Feedback: Protecting Information Resources p. 93 Difficulty: Easy

64. Voice recognition refers to “something the user does.”

Ans: True Feedback: p. 93 Difficulty: Easy

65. A firewall is a system that prevents a specific type of information from moving between untrusted networks and private networks.

Ans: True Feedback: Protecting Information Resources p. 94 Difficulty: Easy

66. Firewalls are located only between a company’s internal network and the Internet.

Ans: False. They can also be used internally, for example, to create a de-militarized zone.

Feedback: Protecting Information Resources p. 94-95 Difficulty: Easy

10

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

67. A process in which a company identifies the software that it will allow to run is called blacklisting.

Ans: False. This is called whitelisting.

Feedback: Protecting Information Resources p. 96 Difficulty: Easy

68. Encryption is the process of converting an original message into a form that cannot be read by anyone except the intended receiver.

Ans: True Feedback: Protecting Information Resources p. 96-97 Difficulty: Easy

69. The sender and recipient use the same key in public-key encryption.

Ans: False. They use different keys.

Feedback: Protecting Information Resources p. 97 Difficulty: Easy

70. Public-key encryption uses two different keys, one public and one private.

Ans: True Feedback: Protecting Information Resources p. 97 Difficulty: Easy

71. A digital certificate is an electronic document attached to a file certifying that the file is from the organization it claims to be from and has not been modified from its original format and content.

Ans: True Feedback: Protecting Information Resources p. 97 Difficulty: Easy

72. A virtual private network is a private network that uses tunnelling.

Ans: True Feedback: Protecting Information Resources p. 98 Difficulty: Easy

73. A hot site provides rudimentary services and facilities.

Ans: False. The above describes a cold site.

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Chapter 3: Ethics, Privacy, and Information Security

Feedback: Protecting Information Resources p. 99 Difficulty: Easy

Multiple Choice

1. Various organizations that promote fair and responsible use of information systems often develop: A. a code of ethics B. a strategic plan C. a mission statement D. responsibility charters Ans: A Feedback: Ethical Issues p. 70 Difficulty: Easy

2. Which of the following best describes the privacy category of ethical issues? It involves the A. Assessment of access rights to records about property ownership B. Collection, storage and dissemination of information about individuals C. Accumulation and storage of data about businesses and their activities D. Collection, storage and dissemination of information about businesses and business data Ans: B Feedback: Ethical Issues p. 71 Difficulty: Medium

3. Issues that involve collecting, storing and disseminating information about individuals are termed:.

A. privacy issues B. accuracy issues C. property issues D. accessibility issues Ans: A Feedback: Ethical Issues p. 71 Difficulty: Easy

4. Which of the following questions could be found in a framework for ethical issues addressing privacy concerns?

A. What information about oneself should an individual be required to reveal to others?

B. Who is responsible for the authenticity, integrity and accuracy of the information collected?

C. Can corporate computers be used for personal purposes?

D. How should one handle software piracy (copying copyrighted software)?

Ans: A Feedback: Ethical Issues p. 71 Difficulty: Hard

12

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

5. Issues that involve the authenticity and fidelity of information that is collected and processed are about: A. privacy B. accuracy C. property D. accessibility Ans: B Feedback: Ethical Issues p. 71 Difficulty: Easy

6. Which of the following questions could be used in a framework for ethical issues addressing accuracy concerns?

A. What information about individuals should be kept in databases, and how secure is the information there?

B. Who is to be held accountable for errors in information, and how should the injured parties be compensated?

C. What information does a person or an organization have a right or a privilege to obtain, under what conditions, and with what safeguards?

Ans: B Feedback: Ethical Issues p. 71 Difficulty: Hard

7. ABC Company is discussing an ethical framework with its employees. Which of the following questions would be included to address accuracy?

A. Can corporate computers be used for private purposes?

B. How can we ensure that data errors are accidental and not intentional?

C. Who owns the information?

D. Who will be provided with the equipment needed for working with information?

Ans: B Feedback: Ethical Issues p. 71 Difficulty: Medium

8. Issues that involve the ownership and value of information are issues about: A. privacy B. accuracy C. property D. accessibility Ans: C Feedback: Ethical Issues p. 71 Difficulty: Easy

9. Which of the following questions could be used in a framework for ethical issues addressing property issues?

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Chapter 3: Ethics, Privacy, and Information Security

14

A. How much should companies charge for permitting accessibility to information?

B. What kind of surveillance can an employer use on its employees?

C. Who will be provided with the equipment needed for accessing information?

D. Under what circumstances can one an employee use the company’s databases?

Ans: D Feedback: Ethical Issues p. 71-72 Difficulty: Hard

10. Using the framework for ethical issues, what type of issue does the following question pertain to: “Who owns the data a company collects about its customers”?

A. privacy B. property C. accuracy D. accessibility Ans: B Feedback: Ethical Issues p. 71-72 Difficulty: Easy

11. Which of the following questions could be found in a framework for ethical issues addressing accessibility concerns?

A. What kind of surveillance can an employer use on employees?

B. How much should organizations charge for providing copies of information?

C. Who owns the information?

D. Who is responsible for the authenticity, integrity and accuracy of the information collected?

Ans: B Feedback: Ethical Issues p. 71-72 Difficulty: Medium

12. ABC Company is discussing an ethical framework with its employees. Which of the following questions would be included to address accessibility?

A. Can corporate computers be used for private purposes?

B. How can we ensure that data errors are accidental and not intentional?

C. Who owns the information?

D. Who will be provided with the equipment needed for working with information?

Ans: Ethical Issues p. 71-72 Feedback: D Difficulty: Hard

13. Issues that involve who may obtain information and how much they should pay for this information are about: A. privacy B. accuracy C. property D. accessibility

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: D Feedback: Ethical Issues p. 71 Difficulty: Easy

14. The right to be left alone and to be free of unreasonable personal intrusion is known as: A. Information privacy B. Privacy C. Confidentiality D. Access control Ans: B Feedback: Ethical Issues p. 73 Difficulty: Easy

15. An electronic description of a person’s habits is called a(n): A. Electronic profile B. Electronic surveillance C. Digital dossier D. Digital file Ans: C Feedback: Ethical Issues p. 73 Difficulty: Medium

16. The process of profiling: A. increases individual privacy B. decreases individual privacy C. has no effect on individual privacy D. is illegal in over one half of the states Ans: B Feedback: Ethical Issues p. 73 Difficulty: Medium

17. The issues that deal with the collection and use of data about individuals are about: A. ethics B. property C. privacy D. encoding E. access Ans: C Feedback: Ethical Issues p. 73 Difficulty: Medium

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Chapter 3: Ethics, Privacy, and Information Security

16

18. The opt out model of informed consent permits a company to collect personal information until the customer A. requests that the data not be collected B. specifically authorizes it C. requests access to another customer’s information D. provides corrections to the data Ans: A Feedback: Ethical Issues p. 74 Difficulty: Medium

19. Which of the following statements could be used in a privacy policy guideline for addressing data collection?

A. Computer security procedures should be implemented to ensure against unauthorized access to data B. Data should, where and when necessary, be kept current.

C. Data should be relevant and not excessive in relation to the business objective D. The file should be made available so the individual can ensure that the data is correct Ans: C Feedback: Threats to Information Security p. 75 Difficulty: Hard

20. Which of the following would be included in a privacy policy guideline to help ensure accuracy of private information?

A. Data should be collected for a valid business purpose only B. Sensitive data should be verified before it is entered into a database C. Data can be gathered only if individuals have provided explicit or implicit consent D. Collected data may not be sold to marketing organizations Ans: B Feedback: Threats to Information Security p. 75 Difficulty: Easy

21. Which of the following statements could be used in a privacy policy guideline for addressing data confidentiality?

A. Data should be collected on individuals only for the purpose of accomplishing a legitimate business objective B. Data should be disclosed only for reasons compatible with the business objective for which it was collected C. Individuals must give their consent before data pertaining to them can be gathered D. Data should be adequate, relevant and not excessive in relation to the business objective Ans: B Feedback: Threats to Information Security p. 75 Difficulty: Hard

22. PIPEDA (Personal Information Protection and Electronic Documents Act) requires that organizations: A. ensure that physical assets are protected from theft

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. individuals be prevented from accessing the information that they submit C. establish both a privacy policy and procedures to ensure that the policy is adhered to D. prevent all of their employees from accessing customer information Ans: C Feedback: Threats to Information Security p. 75 Difficulty: Hard

23. One of the factors that contribute to the increasing vulnerability of organizational information assets is today’s interconnected, interdependent, wirelessly networked business environment. Which of the following is an example of increased threats for this factor?

A. Untrusted networks B. Government legislation C. Trusted networks D. Downstream liability Ans: A Feedback: Threats to Information Security p. 76 Difficulty: Medium

24. The computing skills necessary to be a hacker are decreasing for which of the following reasons?

A. More information systems and computer science departments are teaching courses on hacking so that their graduates can recognize attacks on information assets.

B. Computer attack programs, called scripts, are available for download from the Internet.

C. International organized crime is training hackers.

D. Cybercrime is much more lucrative than regular white-collar crime.

Ans: B Feedback: Threats to Information Security p. 77 Difficulty: Medium

25. Your company’s computers have been taken over by an attacker and used to attack another organization’s information systems. Your problem is which of the following?

A. poor security policies and procedures B. lack of due diligence C. downstream liability D. poor service-level agreements Ans: c Feedback: Threats to Information Security p. 77 Difficulty: Medium

26. Any danger to which an information resource may be exposed is called a: A. vulnerability B. risk C. control D. threat

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Chapter 3: Ethics, Privacy, and Information Security

18

Ans: D Feedback: Threats to Information Security p. 78 Difficulty: Easy

27. The harm, loss, or damage that can result if an information resource is compromised is called a: A. vulnerability B. risk C. threat D. exposure Ans: D Feedback: Threats to Information Security p. 28 Difficulty: Easy

28. The possibility that the system will suffer harm by a threat is called a: A. vulnerability B. risk C. control D. danger Ans: A Feedback: Threats to Information Security p. 78 Difficulty: Easy

29. Employees in which functional areas of the organization pose particularly grave threats to information security?

A. human resources and finance B. human resources and management information systems C. finance and marketing D. operations management and management information systems Ans: B Feedback: p. 79 Difficulty: Hard

30. The most overlooked people in information security are: A. consultants and temporary hires B. secretaries and consultants C. contract laborers and executive assistants D. janitors and guards Ans: D Feedback: Threats to Information Security p. 80 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

31. The process where someone builds an inappropriate trust relationship with employees for the purpose of gaining sensitive information or unauthorized access privileges is called: A. reverse social engineering B. hacking C. spoofing D. social engineering Ans: D Feedback: Threats to Information Security p. 81 Difficulty: Easy

32. Dumpster diving is: A. always illegal because it is considered trespassing B. never illegal because it is not considered trespassing C. typically committed for the purpose of identity theft D. always illegal because individuals own the material in the dumpster Ans: C Feedback: Threats to Information Security p. 83 Difficulty: Medium

33. An intellectual work that is known only to a company and is not based on public information is called a: A. copyright B. patent C. trade secret D. knowledge base Ans: C Feedback: Threats to Information Security p. 84 Difficulty: Easy

34. A document that grants the holder exclusive rights on an invention for 20 years is called a: A. copyright B. patent C. trade secret D. knowledge base Ans: B Feedback: Threats to Information Security p. 84 Difficulty: Easy

35. A statutory grant that provides the creators of intellectual property with ownership of it for the life of the creator plus 50 years is called a: A. copyright B. patent C. trade secret D. knowledge base

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Chapter 3: Ethics, Privacy, and Information Security

20

Ans: A Feedback: Threats to Information Security p. 84 Difficulty: Easy

36. Segments of computer code that attach to existing computer programs and perform malicious acts are known as: A. viruses B. worms C. Trojan horses D. back doors Ans: A Feedback: Threats to Information Security p. 85 Difficulty: Easy

37. _Destructive computer programs that replicate themselves without requiring a host program are called: A. viruses B. worms C. Trojan horses D. back doors Ans: B Feedback: Threats to Information Society p. 85 Difficulty: Easy

38. Software programs that hide in other computer programs and reveal their designed behaviour only when they are activated are called: A. worms B. Trojan horses C. back doors D. alien software Ans: B Feedback: Threats to Information Security p. 85 Difficulty: Easy

39. A password that allows an attacker to bypass any security procedures is known as a: A. virus B. worm C. Trojan horse D. back door Ans: D Feedback: Threats to Information Security p. 85 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

40. Segments of computer code embedded within an organization’s existing computer programs that activate and perform a destructive action at a certain time or date are called: A. worms B. Trojan horses C. back doors D. logic bombs Ans: D Feedback: Threats to Information Security p. 85 Difficulty: Easy

41. When an attacker sends so many information requests to a target that the target cannot handle them all and may crash, this is called: A. phishing B. denial-of-service C. back door D. Trojan horse Ans: B Feedback: Threats to Information Security p. 85 Difficulty: Easy

42. When a coordinated stream of requests is launched against a target system from many compromised computers at the same time, this is called A. phishing B. denial-of-service C. worm D. distributed denial-of-service Ans: D Feedback: Threats to Information Security p. 85 Difficulty: Easy

43. When deception is used to fraudulently acquire sensitive personal information by masquerading as an official e-mail, this is called: A. zero-day attack B. denial-of-service C. distributed denial-of-service D. phishing Ans: D Feedback: Threats to Information Security p. 85 Difficulty: Easy

44. An organization’s e-mail policy has the least impact on which of the following software attacks?

A. virus B. worm C. phishing

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Chapter 3: Ethics, Privacy, and Information Security

D. zero-day Ans: D Feedback: Threats to Information Security p. 70–83 Difficulty: Medium

45. Clandestine software that is installed on your PC through duplicitous channels, but is not very malicious is called: A. alien software B. virus C. worm D. back door Ans: A Feedback: Threats to Information Security p. 86 Difficulty: Easy

46. The vast majority of pestware is: A. spyware B. spamware C. adware D. viruses Ans: C Feedback: Threats to Information Security p. 87 Difficulty: Easy

47. Software that helps pop-up advertisements appear on your screen is called: A. spyware B. spamware C. adware D. viruses Ans: C Feedback: Threats to Information Security p. 87 Difficulty: Easy

48. An attempt to slow down or stop the computer system by flooding the system with requests for information is called a A. denial of service attack B. worm C. logic bomb D. trojan horse

Ans: A Feedback: Threats to Information Security p. 85 Difficulty: Medium

22

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

49. A program that migrates through networks by attaching itself to programs and databases is called a A. worm B. virus C. logic boom D. spyware Ans: B Feedback: Threats to Information Security p. 85 Difficulty: Easy

50. The process in which an organization assesses the value of each asset being protected, estimates the probability that each asset might be compromised, and compares the probable costs of each being compromised with the costs of protecting it is called risk A. management B. analysis C. mitigation D. acceptance Ans: B Feedback: Protecting Information Resources p. 90 Difficulty: Easy

51. When the organization takes concrete actions against risks, this is called risk A. management B. analysis C. mitigation D. acceptance Ans: C Feedback: Protecting Information Resources p. 90 Difficulty: Easy

52. When the organization accepts risks and continues operating without controls and plans to absorb any damages that occur, this is called risk A. management B. analysis C. mitigation D. acceptance Ans: D Feedback: Protecting Information Resources p. 90 Difficulty: Easy

53. When the organization implements controls that minimize the impact of a threat this is called risk A. limitation B. analysis C. mitigation

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Chapter 3: Ethics, Privacy, and Information Security

24

D. acceptance Ans: A Feedback: Protecting Information Resources p. 90 Difficulty: Easy

54. When the organization purchases insurance as a means to compensate for any loss this is called risk A. management B. analysis C. mitigation D. transference Ans: D Feedback: Protecting Information Resources p.90 Difficulty: Easy

55. Which of the following examples are part of the control environment?

A. Policies and procedures about quality of supervision B. Local area network access passwords C. Editing controls over the accuracy of the date field D. Manager approval of payroll wage rates for new employees Ans: A Feedback: Protecting Information Resources p. 90 Difficulty: Medium

56. Controls that prevent unauthorized individuals from gaining access to a company’s computer facilities are called: A. access controls B. physical controls C. data security controls D. administrative controls Ans: B Feedback: Protecting Information Resources p.91 Difficulty: Easy

57. Which of the following is an example of a logical access control?

A. Bolting a computer to a desk B. Locking the server room C. Requiring visitor sign-in upon building entry D. The use of logins and passwords Ans: D Feedback: Protecting Information Resources p. 92 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

58. Controls that restrict unauthorized individuals from using information resources and are concerned with user identification are called A. access controls B. physical controls C. data security controls D. administrative controls Ans: A Feedback: Protecting Information Resources p. 92 Difficulty: Easy

59. Biometrics are an example of something that the user A. is B. has C. knows D. does Ans: A Feedback: Protecting Information Resources p. 92 Difficulty: Easy

60. Retina scans and fingerprints are examples of something that the user A. is B. has C. knows D. does Ans: A Feedback: Protecting Information Resources p. 92 Difficulty: Easy

61. ID cards, smart cards, and tokens are examples of something that the user A. is B. has C. knows D. does Ans: C Feedback: Protecting Information Resources p. 92-93 Difficulty: Easy

62. Voice and signature recognition are examples of something that the user A. is B. has C. knows D. does

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Chapter 3: Ethics, Privacy, and Information Security

Ans: D Feedback: Protecting Information Resources p. 92-93 Difficulty: Easy

63. Passwords and passphrases are examples of something that the user A. is B. has C. knows D. does Ans: D Feedback: Protecting Information Resources p. 93 Difficulty: Easy

64. Which of the following is the best example of a strong password?

A. 124598kkkk B. Betty C. Sunshine D. ASERTY876pkj Ans: D Feedback: Protecting Information Resources p. 93 Difficulty: Hard

65. A security buffer between a company’s private network and external networks is called a(n) A. anti-virus software B. anti-cookie software C. firewall D. gateway Ans: C Feedback: Protecting Information Resources p. 94 Difficulty: Easy

66. What is the purpose of a firewall?

A. Control information moving between your computer and untrusted computers B. Prevent malware from being sent to your email accounts C. Detect viruses that are attached to your email accounts D. Convert information into a format that can be used by your system Ans: A Feedback: Protecting Information Resources p. 94-95 Difficulty: Medium

67. The term demilitarized zone is used in information systems. It is located: A. Between two firewalls

26

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. On an encrypted server C. On a secure web site D. Behind biometric protection Ans: A Feedback: Protecting Information Resources p. 95 Difficulty: Hard

68. Which of the following is an example of an input edit application control?

A. Product quantity is automatically multiplied by price B. Screen layout should be easy to use C. Birth year should not contain any alphabetic characters D. Report column headers should be repeated on each page Ans: C Feedback: Protecting Information Resources p. 99 Difficulty: Medium

69. Which of the following is an example of an input application control?

A. Calculate the taxes payable on a sales invoice and automatically record the totals B. Customer number should not contain any alphabetic characters C. Screen layout should be easy to use D. Report column headers should be repeated on each page Ans: B Feedback: Protecting Information Resources p. 99 Difficulty: Medium

70. Which of the following is an example of a processing application control?

A. Product quantity is automatically multiplied by price B. Screen layout should be easy to use C. Birth year should not contain any alphabetic characters D. Report column headers should be repeated on each page Ans: A Feedback: Protecting Information Resources p. 99 Difficulty: Medium

71. Which of the following is an example of a processing application control?

A. Calculate the taxes payable on a sales invoice and automatically record the totals B. Screen layout should be easy to use C. Birth year should not contain any alphabetic characters D. Report column headers should be repeated on each page Ans: A Feedback: Protecting Information Resources p. 99 Difficulty: Medium

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Chapter 3: Ethics, Privacy, and Information Security

72. Which of the following is an example of an output application control?

A. Product quantity is automatically multiplied by price B. Sales information is automatically recorded in both the transaction and semi-permanent data tables C. Birth year should not contain any alphabetic characters D. Employees must sign their payroll cheques, confirming receipt Ans: D Feedback: Protecting Information Resources p. 99 Difficulty: Medium

73. Which of the following is an example of an output application control?

A. Product quantity is automatically multiplied by price B. Sales information is automatically recorded in both the transaction and semi-permanent data tables C. Report column headers should be repeated on each page D. Birth year should not contain any alphabetic characters Ans: C Feedback: Protecting Information Resources p. 99 Difficulty: Hard

74. In the context of business continuity planning, a cold site: A. Is a fully configured and functional computer facility B. Requires communications systems to become fully functional C. Is kept at lower than normal temperatures to facilitate effective computing D. Provides only rudimentary services and facilities Ans: D Feedback: Protecting Information Resources p. 99 Difficulty: Easy

Short Answer

1.

Why do privacy policies at organizations such as FaceBook need to be kept updated?

Feedback: Ethical Issues p. 68

2. Discuss the various ethical issues involved with information technology.

Feedback: Ethical Issues p. 70-72

3.

Discuss the relationship between surveillance and privacy.

28

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: p. 73-76

4.

Discuss the factors which are contributing to the increasing vulnerability of organizational information assets.

Feedback: Threats to Information Security p. 77-78

5.

Define downstream liability and describe how an organization could be successfully sued in a downstream liability lawsuit.

Feedback: Threats to Information Security p. 77-78

6. Define the terms: threat, exposure, and vulnerability, and discuss the relationships among them.

Feedback: Threats to Information Security p. 78

7. Describe the unintentional threats to an information resource.

Feedback: Threats to Information Security p. 78-81

8. Define social engineering and reverse social engineering and discuss why these two attacks are so dangerous.

Feedback: Threats to Information Security p. 81

9. Define identity theft and discuss the problems that people have when it happens to them.

Feedback: Threats to Information Security p. 84

10. Discuss the various types of software attacks.

Feedback: Threats to Information Security p. 85-86

11. Explain the role of botnets in Distributed Denial of Service Attacks and discuss how botnets can be prevented.

Feedback: Threats to Information Security p. 85-86

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30

12. Differentiate among the types of alien software.

Feedback: Threats to Information Security p. 86-87

13. Describe how supervisory control and data acquisition systems could be used by terrorists in an attack.

Feedback: Threats to Information Security p. 87-88

14. Describe what it means that anti-malware software is reactive.

Feedback: Protecting Information Resources p. 95

15. Describe public key encryption.

Feedback: Protecting Information Resources p. 97

16. Describe how a digital certificate works.

Feedback: Protecting Information Resources p. 97

17. Discuss how organizations like the International Fund for Animal Welfare need to balance security concerns against sufficient access capabilities.

Feedback: Closing Case p. 107

Cases

Note that these cases have questions that apply to multiple chapters, and are reproduced in the appendix, which show all parts of the question.

1.

GrameenPhone is using the Internet to help to bridge the digital divide in Bangladesh. Bangladesh has over 150 million people but there are relatively few land-line telephones. Cell phone use is exploding, with more than 16 million cell phone subscribers as of 2007. People use cell phones to hook up to the Internet, gain access to services such as e-mail, weather reports, and health information.

GrameenPhone established cell phone access centres where individuals without telephones could access the Internet using cell telephones for a fee. GrameenPhone is partly owned by Grameen Bank.

These cell phone centres have provided access to information and data communications in villages where such access previously was not possible.

As a result, villagers in remote areas are now able to make use of the Internet to boost their local economies. For example, farmers in rural areas are now able to use cell phones to transact with customers and suppliers from other villages to buy and sell crops and animals.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Required: A) Describe the legislation that generally governs privacy in Canada. (1 mark) Feedback: p. 75 •

• • •

Personal Information Protection and Electronic Document Act (PIPEDA. o applies to all businesses and other organizations, such as not for profit o states that organizations are required to establish a privacy policy and procedures to ensure that the policy is adhered to.

Freedom of Information and Protection of Privacy Act in Ontario (FIPPA. – note: not in text Personal Health Information Protection Act, 2004 (PHIPA. o protect personal health record across the health system Municipal Freedom of Information and Protection of Privacy Act (MFIPPA. – note: not in text

Note: the main legislation in Canada is PIPEDA. If students can substantially describe the legislation but make errors in naming the correct Act, a mark will still be awarded.

B.

Why is it important for the company to have privacy policy guidelines? (3 marks)

Feedback: p. 74-76 • • • • • • • •

Help protect the privacy of employees or of clients Codify requirements for employees in protecting privacy Provide a standard set of procedures (for data collection, accuracy, confidentiality) Help protect the company from litigation Can be used as a measurement tool if disciplinary action is required Can be shared with employees, clients and other stakeholders to communicate how the company protects personal information Sets management’s expectations for the protection of personal information Can be used in the design and implementation of new systems that use, process, store or disseminate personal data

C) A business computing service that provides computer services for a fee, such as a cell phone access centre, would need privacy policy guidelines for its employees. For each of the following categories of privacy policy, provide an example of what a computing centre service business might include in its privacy policy. (3 marks) Feedback: p. 75, plus tailored examples Privacy policy guideline category Data Collection

Data Accuracy

Provide an example of what a computing centre service business might include in its privacy policy First of all, information collected on individuals must not be excessive and must be protected. The data centre must safeguard the data by strict security controls with physical location and computer access controls. Secondly, opt-out choices for customers must be administered by informing customers that information is being gathered about them. The customers must be allowed to stop the collection of data. Lastly, the organization must have a privacy policy and publish it on their website.

Data that is gathered must be verified before it is stored. Sources would need to be checked.

Data should be kept current or updated on a regular basis (once per year?).

The files on the individual should be made available to the customer, if the customer requests it.

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Chapter 3: Ethics, Privacy, and Information Security

Data Confidentiality

32

Computer security procedures must be implemented to ensure against unauthorized disclosure of data. These include physical, technical, and administrative security of data.

Third parties should not be given access to the data without the individual’s knowledge or permission.

Disclosures of data should be noted and maintained as long as the data is maintained.

2.

As a summer job you have been hired as an intern in the internal audit department of a large national retail organization. As part of your job, you will be assisting with a vulnerability assessment prior to conducting a risk assessment.

Then, the team will consider how controls in could affect privacy at the organization, prior to testing these controls.

Required: A. Describe four factors that would increase the vulnerability of your organization’s information assets. (4 marks) Feedback: p. 76-78 Factor – any four of the eight listed Connectivity to the business environment (wireless networks, use of Internet)

Government legislation

Smaller, faster, cheaper computers and storage devices

Decreasing skills necessary to be a computer hacker International organized crime taking over cyber crime

Downstream liability

Description One Mark Each -The large number of websites plus connectivity today to these sites is so complex since many methods of access can be used. This has resulted in the increase of hackers, number of untrusted networks and the ease of connecting to non-secure networks (WIFI).

- distributed processing/ open nature of systems today that connect to external computers via the Internet Introduction of – Personal Information Protection and Electronic Document Act (PIPEDA. - more information is considered private - increases accountability of organisations to protect personal information Storage devices and computers today are getting cheaper, smaller and faster in which more of these devices are available for everyone.

Employees can copy key company information on a memory stick in a matter of seconds Computer hacking has become very easy today – most internet web scripts can be downloaded and copied. As a result of this unskilled hackers can attack any information system connected to the internet.

International organized crime is taking over Cybercrime. The ease of entry and the broad access to the web means that the criminal can do the crime from another country without leaving his/her location. Some of the key crimes are cyber extortion and the Nigerian letter, Phishing, Lottery Prize Emails and inheritance schemes -Downstream liability means that one company (A. would be liable to another (Company B. for damages caused by a criminal hacker that hacked into company A’s computer system or network. So whatever damage the hacker causes to Company B then Company A will be held responsible and liable for the actions of the hackers that broke into Company A’s system – this is downstream liability -Made easier as there are more ways to access data, e.g. extranets,

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Factor – any four of the

Description One Mark Each

eight listed

Increased employee use of unmanaged devices

Lack of management support

outsourcing, IT partnering and vendor contracts that complicate liability issues One example of this is when an employee uses non company’s equipment such as computers to log on to the company’s information.

Examples of this are computers that reside in a business centre of a hotel or in internet cafes where nobody is there to supervise the equipment’s use.

Senior and lower level management must lead by example and follow the policies and procedures of the company to the letter, set the tone and security posture of the company.

B. For each of the following types of controls: • define or describe the type of control, and • provide an example of that type of control that might contribute to improved privacy over customer data at the retail organization.

Use the table below to record your answer. (8 marks) Feedback: p. 90-99, plus applied examples Describe the objective of the control (one mark each for a total of 4)

Control environment page 90-91 Are actions that encompass management attitude toward controls, as evidence by stated policies and procedures that address ethical issues and the quality of supervision Access control page 91-93 Controls that restrict unauthorized individuals from using information resources and are concerned with user identification - something the user is - something the user has - something the user knows

Strong passwords page 93 A password that is difficult to guess, longer rather than shorter, contains upper and lower case letters, numbers, and special characters, and is not a recognizable word or string of numbers.

Input application control page 99

Example of a control for each control type that might contribute to improved privacy over customer data or employee data (one mark for each valid example for each control type) -Creating and monitoring a corporate policy manual with methods of controlling information for both private and public companies.

This information will be available for all employees to read, understand and follow. These policies will be managed by both upper and middle management of the company.

-examples include privacy policy, IT security policies, acceptable use policies and email policies Two types – Physical and logical control.

- For physical control you can have designated areas of restriction for employees using pass codes or cards to gain access to given areas, e.g. locked computer rooms - Logical controls will be implemented by software applications which can restrict the number of bad attempts that a password – user id has been used, along with the time a user has been logged on without any activity on the terminal.

-Both physical and logical controls are established for different levels of employees that have authority to the programs and designated areas of the company.

Passwords should: - be difficult to guess - be longer than shorter - contain uppercase letters, lowercase, numbers and special characters - not be a recognisable/ dictionary word - not be the name of someone familiar - not be a recognisable string, e.g. SIN - be pass phrases -Place subtotals of entries (known as Hash totals) when entering

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Chapter 3: Ethics, Privacy, and Information Security

Describe the objective of the control (one mark each for a total of 4)

Controls that protect specific applications and functional areas Input controls are programmed routines that are performed to edit input data for errors before it is processed (example hash totals)

34

Example of a control for each control type that might contribute to improved privacy over customer data or employee data (one mark for each valid example for each control type) large amounts of data. Also have the user enter the numbers or data twice and if they are different they must re-enter it again before they proceed.

-edit and range parameters that check input data for reasonableness and that it is in the correct format - batch totals and record counts that check the number and total value of input data - SIN field should accept numbers only

3.

A fire broke out in the office tower of Place Alexis Nihon, Montreal, across from the Forum, a community gathering centre. The building had stores and restaurants on the main level and a subway platform below. The fire department condemned the building and tenants were unable to retrieve anything from their offices for nearly two weeks. Fully 60% of the companies in this building did not survive more than 6 months, declaring bankruptcy or simply shutting down.

Required: A. You are the IT manager of a company in this building. Your company sells directly to consumers through salesmen. What control measures should you use to prepare for such as disaster? What steps should you have taken after the disaster to minimize its impact on your company? (8 marks) Feedback: p. 99, plus applied examples -

have a disaster recovery plan obtain Management commitment to the DRP DRP should include Ranking of business processes DRP should Identify minimum resources required DRP should include a Data centre and a User plan DRP should be Tested and kept current have a contingency plan to operate without systems during recovery period offsite storage of important backups: data, software, documents regular transport of backup offsite appropriate backup site available (secure, climate controlled, …) have recovery site available recovery site needs to have computers, offices – hot or cold site, based on need move people immediately to temporary offices / recovery site make arrangements for new permanent offices and computers make financial arrangements to tide the company over

(B. Normally, employees use the computer for processing sales orders, customer billing and employee payroll, inventory monitoring, purchase orders and payments to suppliers. What application programs would need to be recovered first? What application recoveries could wait until the situation was less critical? Justify your answers. (4 marks) Feedback: The answer to this part of the question is flexible, with appropriate justification of the Feedbacks. Students could also use the framework of risk analysis described on text, page 90 to organize their answers.

Necessary: • Customer Billing (A/R) and payroll • Justification: to guarantee business continuation (cash receipts to pay expenses, retention of employees and suppliers)

Test Bank for Introduction to Information Systems, 2nd Canadian Edition •

maybe limited accounts payable (A/P) or others, if appropriately justified

Not necessary: • A/P, Order Entry, all the rest.(many possible – max 1 mark for others) • Justification: can continue to operate without these for a short time, since there is need to concentrate limited resources to recover critical systems first • Maybe Payroll if appropriately justified - i.e. short time frame only, recover by next pay date or pay staff manually (NOT - "employees will understand") (C. The fire was a blow to the company but also an opportunity to make improvements to prevent future disasters. Identify 4 other types of disasters and their impacts. Also describe controls that could be implemented to prevent or reduce the impact of each. (8 marks) Feedback: p. 9 (Figure 3.1) and related discussion 1 mark for type of disaster and its impact 1 mark for control (indented below disaster type below) -

Hardware failure – loss of income, unable to ship goods or sell services - Physical security to provide a safe environment (from theft or damage) - Redundant systems

-

Denial of service – due to ‘hacker attack,’ same impact as above - firewalls, logical access controls e.g. password protection

-

Program failure/error – data loss, data error, operational problems or business failure - Follow SDLC for all development, maintenance - Program change controls

-

Unavailability of people who make key decisions, hold key passwords or functions - limited ability to perform all business functions (e.g. IT operations) - Train staff as backups to other employees - Document job descriptions, procedures

-

Deliberate or accidental physical damage to equipment - inability to conduct business - Physical security to provide a safe environment (from theft or damage) - DRP (disaster recovery plan) should cover this case

-

Employee errors or sabotage - data loss, fraud, inability to conduct business, etc - Employee Code of ethics - Supervision

-

Virus or other security penetration - data loss, fraud, inability to conduct business, etc - Virus detection and removal s/w, updated regularly - firewalls, logical access controls e.g. password protection

35

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 4: Data and Knowledge Management

True/False

1. Data are centralized in organizations.

Ans: False. Data is stored in several places.

Feedback: Managing Data p. 112 Difficulty: Easy

2. An increasing amount of external data needs to be considered in making organizational decisions.

Ans: True Feedback: Managing Data p. 112 Difficulty: Easy

3. The end result of the Data Life Cycle is the generation of data.

Ans: False. It results in the generation of knowledge.

Feedback: Managing Data p. 114 Difficulty: Easy

4. Database management systems (DBMS) are software programs (or groups of programs) that provide access to a database.

Ans: True Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

5. A negative value for a student’s grade point average is an example of a data integrity problem.

Ans: True Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

6. It is important for applications and data to be dependent on each other.

Ans: False. They need to be independent of each other so that multiple applications can use the same data.

Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

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Chapter 4: Data and Knowledge Management

7. An entity is a person, place, thing, or event about which information is maintained.

Ans: True Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

8. An attribute is any characteristic or quality describing a particular entity.

Ans: True Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

9. The secondary key is a field that has some identifying information but does not identify a record with complete uniqueness.

Ans: True Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

10. Entity-relationship diagrams are documents that show the entities, attributes, and relationships of a conceptual data model.

Ans: True Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

11. You would be an instance of your university’s STUDENT class.

Ans: True Feedback: The Database Approach and Database Management Systems p. 117-118 Difficulty: Easy

12. The relational database model is based on the concept of two-dimensional tables.

Ans: True Feedback: The Database Approach and Database Management Systems p. 119 Difficulty: Easy

13. Structured query language (SQL) is a relational database language that enables users to perform complicated searches with relatively simple statements.

Ans: True Feedback: The Database Approach and Database Management Systems p. 119

2

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Difficulty: Easy

14. The data dictionary stores definitions of data elements, characteristics that use the data elements, physical representation of the data elements and data ownership.

Ans: True Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Easy

15. When data are normalized, attributes in the table depend on the primary key and any secondary keys.

Ans: False. The purpose of normalization is to minimize redundancy, maintain data integrity and improve processing performance.

Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Easy

16. In a data warehouse, data are constantly purged as new data come in.

Ans: False. A data warehouse contains many years of historical information.

Feedback: Data Warehousing p. 123 Difficulty: Easy

17. Operational data are usually kept in an organization’s data warehouse.

Ans: False. A data warehouse contains many years of historical information, while operational data is kept in a database.

Feedback: Data Warehousing p. 123 Difficulty: Easy

18. Online analytical processing (OLAP) involves the analysis of accumulated data by end users.

Ans: True Feedback: Data Warehousing p. 123 Difficulty: Easy

19. Data marts are designed for the end-user needs in a strategic business unit or department.

Ans: True Feedback: Data Warehousing p. 127 Difficulty: Easy

20. Master data are generated and captured by operational systems.

3

Chapter 4: Data and Knowledge Management

4

Ans: False. They are a set of core data, separate from transaction data.

Feedback: Data Governance p. 128 Difficulty: Easy

21. Tacit knowledge is the more objective, rational, and technical types of knowledge.

Ans: False. This describes explicit knowledge.

Feedback: Knowledge Management p. 131 Difficulty: Easy

22. Explicit knowledge, the cumulative store of subjective learning, is personal and hard to formalize.

Ans: False. This describes tacit knowledge.

Feedback: Knowledge Management p. 131 Difficulty: Easy

Multiple Choice

1. It is very difficult to manage data for which of the following reasons?

A. amount of data stays about the same over time B. data are scattered throughout organizations C. decreasing amount of external data needs to be considered D. data are stored in the same format throughout organizations Ans: B Feedback: Managing Data p. 112 Difficulty: Medium

2. New sources of data are constantly being developed. How does this contribute to difficulties in managing data?

A. The data could be unstructured and not readily represented in a traditional computer record B. This data may not be part of the data life cycle C. It may not be possible to use the data to support decision making D. The data may be copyrighted and not accessible to the organization Ans: A Feedback: Managing Data p. 112 Difficulty: Hard

3. The data life cycle follows which of the following sequences?

A. Collection, storage, processing, usage B. Storage, processing, usage, collection C. Change, collection, storage, processing

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

D. Collection, change, processing, usage Ans: A Feedback: Managing Data p. 114 Difficulty: Medium

4. The end result of the Data Life Cycle is the generation of: A. information B. data C. knowledge D. wisdom Ans: C Feedback: Managing Data p. 112 Difficulty: Easy

5. When the same data are stored in many places, this is called: A. data isolation B. data integrity C. data consistency D. data redundancy Ans: D Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

6. The example below that best illustrates data redundancy as applied to the database approach is: A. Supplier detail information is kept for several years and archived at a backup service location B. Customer information is stored in several places, including email lists, sales data files and maintenance data files C. Customer information in the sales systems cannot be accessed by other applications D. Payroll information is stored on multiple servers in remote locations Ans: B Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Hard

7. When applications cannot access data associated with other applications, this is called: A. data isolation B. data integrity C. data consistency D. data redundancy Ans: A Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

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8. An example that illustrates data isolation is: A. customer information in the sales systems cannot be accessed by other applications B. duplicate payroll information is stored on multiple servers in remote locations C. servers are isolated to improve security over confidential data files D. data is copied onto multiple media and stored in backup libraries Ans: A Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Hard

9. When various copies of the data agree, this is called: A. data isolation B. data integrity C. data consistency D. data redundancy Ans: C Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

10. No alphabetic characters in a Social Insurance Number field is an example of: A. data isolation B. data integrity C. data consistency D. data redundancy Ans: B Feedback: The Database Approach and Database Management Systems p. 115 Difficulty: Easy

11. In the data hierarchy, the smallest element is the: A. record B. bit C. byte D. character Ans: B Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

12. A logical grouping of characters into a word, a small group of words, or a complete number is called a: A. byte B. field C. record D. file Ans: B

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

13. Which of the following statements best describes the relationship between a byte and a field?

A. A logical grouping of fields forms a byte B. Bytes can be comprised of one or more fields C. A logical grouping of bytes forms a field D. Bytes are comprised of zeros and ones, so fields can only be numeric Ans: C Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Hard

14. How much storage space would the word analysis use?

A. Seven bytes B. Seven bits C. Eight bytes D. Eight bits Ans: C Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

15. How much storage space would the work book use?

A. Four fields B. Four records C. Four bytes D. Four bits Ans: C Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

16. Which of the following accurately describes a relationship within the data hierarchy?

A. A bit comprises a group of bytes B. Every field has multiple files C. A byte comprises a group of bits D. Every attribute has multiple entities Ans: C Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Hard

17. A logical grouping of related fields is called a: A. byte B. field

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C. record D. file Ans: C Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

18. A logical grouping of related records is called a: A. byte B. field C. record D. file Ans: D Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

19. A single character, such as a letter, number, or symbol is represented by a: A. byte B. field C. record D. file Ans: A Feedback: The Database Approach and Database Management Systems p. 116 Difficulty: Easy

20. Place the following members of the data hierarchy in the correct order: A. bit – byte – field – record – database – file B. bit – field – byte – record – file – database C. byte – bit – record – field – database D. bit – byte – field – record – file – database Ans: D Feedback: The Database Approach and Database Management Systems p. 116-117 Difficulty: Easy

21. In a university’s relational database, the student record contains information regarding the student’s last name. The last name is a(n): A. attribute B. entity C. primary key D. object Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

22. In a database, the primary key field is used to: A. create linked lists B. identify duplicated data C uniquely identify a record D. uniquely identify an attribute Ans: C Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

23. A primary key A. consists of only one field B. has the same value for all records C. must contain a unique value for each record within a table D. is normally defined automatically Ans: C Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

24. A secondary key is a(n) A. additional key that can be use in addition to the primary key to locate specific data B. alphabet C. value to open relationships D. none of the above Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

25. A field in a record that has some identifying information but typically does not identify the record with complete accuracy is called a: A. Primary key B. Secondary key C. Duplicate key D. Attribute key Ans: B Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

26. As an individual student in your university’s student database, you are part of the STUDENT class, which is called a(n): A. instance B. individual C. representative D. entity

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Chapter 4: Data and Knowledge Management

Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

27. What is the purpose of an entity class?

A. An entity class is a group of items about which information is maintained (such as persons, places, things or events) B. It is a cluster of single characteristics, such as all of the names or all of the addresses C. It is the same as a primary key, used to identify information D. To be the smallest component in the data hierarchy Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

28. In the context of data modeling, which of the following two terms are generally considered to be equivalent?

A. Secondary keys and unique identifiers B. Bit and character C. Instance and field D. Record and entity Ans: D Feedback: The Database Approach and Database Management Systems p. 117-118 Difficulty: Hard

29. A person’s name is an example of a: A. record B. database C. field D. byte Ans: C Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

30. A logical record contains several fields of related data elements that pertain to an event or an entity.

What is a characteristic of the primary key field? It contains A. the disk address of the record B. the password that allows access to the record C. the data dictionary item number D. a unique identifier of the event or entity Ans: D Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

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31. When referring to data stored in a computer file, another name for the word identifier is: A. Primary key B. Secondary key C. Entity D. Instance Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Easy

32. An entity is a(n): A. diagram that represents how data in a database is organized B. key field that uniquely identifies information stored in a file or database C. logical grouping of related records D. person, place, thing, or event about which information is maintained Ans: D Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

33. In the context of data modeling, which of the following two terms are generally considered to be equivalent?

A. Field and attribute B. Entity class and field C. Table and data model D. Primary key and entity Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

34. The following table contains information from sales transactions: Invoice number 12562 12563 12564

Item number AFG101 BEG666 YYT662

Cost

Taxes $25.00 $1.23 $16.99

Which of the above columns would likely be the primary key for the transaction?

A. Invoice number B. Item number C. Cost D. Taxes Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

$3.25 $0.16 $2.21

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35. Using the table from Question (34), which of the following represents an entity?

A. A single cell from the table, e.g. “12562” B. A column from the table C. A row from the table D. The entire table Ans: C Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Hard

36. The following table is extracted from Figure 4.5, page 120 of our text: Student Name Student ID Sally Adams 111-12-4321 John Jones 420-33-9034 “Finance” or “Accounting” is called a(n): A. attribute B. primary key C. record D. entity

Major Finance Accounting

Graduation Date 5/12/2006 15/5/2006

Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

37. The following table is extracted from Figure 4.5, page 120 of our text: Student Name Student ID Major Graduation Date Sally Adams 111-12-4321 Finance 5/12/2006 John Jones 420-33-9034 Accounting 15/5/2006 Which of the following columns of the table would likely correspond to the primary key?

A. student name B. student ID C. major D. graduation date Ans: B Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

38. The following table is extracted from Figure 4.5, page 120 of our text: Student Name Sally Adams John Jones

Student ID 111-12-4321 420-33-9034

Major Finance Accounting

Listed below is part of a relational database. It is called a(n):

Graduation Date 5/12/2006 15/5/2006

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Sally Adams A. attribute B. primary key C. record D. instance

111-12-4321

Finance

13

5/12/2006

Ans: D Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Hard

39. Joe wants to look at one particular data record, belonging to the XYZ Company, a supplier of his. Joe wants to look at a(n): A. Attribute B. Instance C. Entity class D. Data model Ans: B Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Medium

40. In the context of data modeling, which of the following two terms are generally considered to be equivalent?

A. Field and attribute B. Instance and field C. Bit and character D. Secondary keys and unique identifiers Ans: A Feedback: The Database Approach and Database Management Systems p. 117 Difficulty: Hard

41. At your university, students can take more than one class, and each class can have more than one student. This is an example of what kind of relationship?

A. one-to-one B. one-to-many C. many-to-one D. many-to-many Ans: D Feedback: The Database Approach and Database Management Systems p. 119 Difficulty: Easy

42. If you did not have a standard report available to you, but needed to extract data from a database, what would you use?

A. Normalization B. Structured query language (SQL) C. Data dictionary elements

Chapter 4: Data and Knowledge Management

D. Relational database grids Ans: B Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Easy

43. In the relational database model, related tables can be joined when they contain common: A. Primary keys B. Rows C. Records D. Columns Ans: D Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Medium

44. In a relational database, every row represents a: A. file B. record C. attribute D. primary key Ans: B Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Easy

45 To locate records that are joined with others in related tables in a database management system, the system uses the: A. Primary keys B. Secondary keys C. Common attributes D. Common fields Ans: A Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Medium

46. Which of the following uses a series of logically related two-dimensional tables or files to store information in the form of a database?

A. relational database B. data warehouse C. sequential file D. expert system Ans: A Feedback: The Database Approach and Database Management Systems p. 119 Difficulty: Easy

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47. When the user fills out a grid or template (also known as a form) to construct a sample or description of the data he or she wants, this is called: A. data definition B. data dictionary C. query by example (QBE) D. structured query language (SQL) Ans: C Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Medium

48. ABC Company is growing larger, getting more and more customers. It now has 8,500 customers and will soon exceed 10,000 customers. The problem is that the customer number field has a maximum of four characters. What would be the most appropriate way for ABC Company to change the size of its customer numbers from four to five characters? It should change the size using A. Normalization B. Structured query language (SQL) C. Data dictionary D. Query by example (QBE) Ans: C Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Hard

49. Joe created a template illustrating the information that he wanted from the database, dragging and dropping labels to show how he wanted the information organized. This is called: A. Structured query language (SQL) B. Query by example (QBE) C. Data definition D. Data model Ans: B Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Hard

50. The purpose of a data dictionary is to A. Define the format necessary to enter the data into the database B. Provide a method for analyzing and reducing a relational database to its most streamlined form C. Construct queries quickly and easily D. Describe the relationships among the different programs that access the database Ans: A Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Medium

51. Data dictionaries have many advantages to organizations. This is because data dictionaries:

Chapter 4: Data and Knowledge Management

A. Help ensure that the data is structured in a way that provides for rapid access B. Restrict the use of data to certain programming languages, providing security C. Increase programming cost of programs D. Provide names and standard definitions for all attributes Ans: D Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Medium

52. The process of database normalization includes: A. provide samples of input and output forms or screens B. define the format necessary to enter data into the database C. analysis of data to reduce redundant data elements D. provide names of standard definitions of data elements Ans: C Feedback: The Database Approach and Database Management Systems p. 121-122 Difficulty: Hard

53. Relational databases can be slow if the tables created have too many data elements. Which technique will help speed up data processing by streamlining the tables in a relational database?

A. normalization B. structured queries C. object-oriented programming D. query by example Ans: A Feedback: The Database Approach and Database Management Systems p. 121-122 Difficulty: Medium

54. A method for analyzing and reducing a relational database to its most streamlined form is: A. Structured query B. Normalization C. Query by example D. Joining Ans: B Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Easy

55. When data are normalized, attributes in the table depend only on the: A. Secondary key B. Common attribute C. Primary key D. Common row Ans: C Feedback: The Database Approach and Database Management Systems p. 121

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Difficulty: Easy

56. DBMSs allow you to request information from your database by using a A. Query language B. Table generator C. Wizard D. Record generator Ans: A Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Easy

57. Which of the following is a characteristic of a RDBM (relational database management system)?

A. It cannot use SQL B. Queries are possible on individual or groups of tables C. Tables are linked by common data known as keys D. Keys may be unique or have multiple occurrences in the database Ans: B Feedback: The Database Approach and Database Management Systems p. 120 Difficulty: Easy

58. A process designed to ensure the data within the relations (tables) in a relational database contains the least amount of duplication is called: A. Normalization B. Validation C. Verification D. Modeling Ans: A Feedback: The Database Approach and Database Management Systems p. 121 Difficulty: Medium

59. The data in a data warehouse have which of the following characteristics? They are A. organized by subject B. coded in different formats C. updated in real time D. typically retained for a defined, but limited, period of time Ans: A Feedback: Data Warehousing p. 123 Difficulty: Medium

60. The data in a data warehouse are A. updated constantly in real time B. updated in batch mode, approximately once per day

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C. not updated D. purged constantly as new data enter Ans: C Feedback: Data Warehousing p. 123 Difficulty: Medium

61. OLAP (online analytical processing) systems generally provide which of the following features?

A. High-speed transaction processing B. Interactive querying and exploration of multi-dimensional data C. Automated data calibration D. All of the above Ans: B Feedback: Data Warehousing p. 123 Difficulty: Medium

62. HAL Limited has offices around the world in 15 different countries, that joined the company at different times, with many different database structures and many different transaction processing systems.

To improve access to consistent data, the organization should implement a(n): A. Data warehouse or data mart B. Decision support system C. Workflow management system D. Data hierarchy for each office Ans: A Feedback: Data Warehousing p. 123 Difficulty: Medium

63. Which of the following organizes data by business dimension or subject so that the data is consistent and non-volatile?

A. database management system B. transaction processing system C. sequential file system D. data warehouse Ans: D Feedback: Data Warehousing p. 123 Difficulty: Easy

64. XYZ Company used middleware and other translation software to transfer data from many systems into a repository of historical data. This type of repository is called a(n): A. Database management system B. Data dictionary C. Data warehouse D. Relational database Ans: C

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Data Warehousing p. 123-124 Difficulty: Hard

63. The process(es) of moving data from various sources into the data warehouse is(are) called: A. Upload B. Extract, transform, load C. Online transaction processing D. Master data management Ans: B Feedback: Data Warehousing p. 124 Difficulty: Medium

64. Compared to data warehouses, data marts have which one of the following characteristics?

A. cost less B. have longer lead time for implementation C. have central rather than local control D. contain more information Ans: A Feedback: Data Warehousing p. 127 Difficulty: Medium

65. The purpose of a good quality data mart is to: A. provide rapid Feedback to data inquiries, and be easy to learn and navigate B. support the activities within a specific functional area C. integrate all functional areas of the organization D. present structured, summarized information about aspects of business important to management Ans: A Feedback: Data Warehousing p. 127-128 Difficulty: Medium

66. One of the advantages of a data mart is that it A. Is easily implemented by any organization, no matter the size B. Facilitates the development of internet-based processing C. Can be implemented more rapidly than a data warehouse D. Provides rudimentary services and facilities Ans: C Feedback: Data Warehousing p. 124-128 Difficulty: Easy

67. A formal approach to managing data consistently across an entire organization is called: A. Database management B. Enterprise information management

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C. Data warehousing D. Data governance Ans : D Feedback : Data Governance p. 128 Difficulty: Easy

68. Master data management is used for A. The management of end users B. The proper storage, maintenance and synchronization of data C. Standardizing geographic naming conventions D. The help items to be used by end users.

E. The proper generation, storage, and retrieval of information.

Ans: B Feedback: Data Governance p. 129 Difficulty: Medium

69. A process that provides companies with a single version of the truth for their data is called: A. Data warehouse B. Data mart C. Database D. Master data management

Ans: D Feedback: Data Governance p. 129 Difficulty: Easy

70. POM Corporation has had numerous problems with data quality over the last few years. The corporation has also been fined for privacy violations and has had increasing costs of program maintenance due to poor quality documentation and standards. POM Corporation likely needs better A. Normalization of its databases B. Backup and recovery processes C. Middleware between application layers D. Data governance Ans: D Feedback: Data Governance p. 128 Difficulty: Hard

71. As part of the sales cycle processing, customer name and address are printed on the invoice, then the item quantity, item description and price are entered, and the dollar amount calculated, including taxes.

Which of the data described above is master data?

A. Item quantity sold B. Item description C. Dollar amount calculated D. Customer name and address

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Ans: D Feedback: Data Governance p. 128 Difficulty: Hard

72. A planned approach to data management that involves managing information across an entire organization is called: A. transaction planning B. data governance C. risk management D. knowledge management Ans: B Feedback: Data Governance p. 128 Difficulty: Easy

73. One of the reasons that organizations are turning to data governance is that: A. They have too little data.

B. They are responding to federal regulations.

C. Their data are typically structured.

D. Their data are usually located in the organizations’ databases.

Ans: B Feedback: Data Governance p. 128 Difficulty: Hard

74. A process that helps organizations identify, select, organize, disseminate, transfer, and apply expertise that are part of the organization’s memory and typically reside inside the organization in an unstructured manner is called: A. discovery B. knowledge management C. decision support D. online analytical processing Ans: B Feedback: Data Governance p. 130 Difficulty: Easy

75. Explicit knowledge deals with: A. more objective, rational and technical knowledge B. the accumulation of subjective or experiential knowledge C. the use of information technology to manipulate knowledge D. the development of intellectual property Ans: A Feedback: Knowledge Management p. 131 Difficulty: Easy

Chapter 4: Data and Knowledge Management

76. Which of the following is an example of explicit knowledge?

A. Customer credit limit related to unpaid balances B. An organizational culture that encourages honesty C. Ordering needs and feelings about particular customers D. Sales best practices that are provided to new salespersons by the sales manager Ans: A Feedback: Knowledge Management p. 131 Difficulty: Medium

77. Which of the following is an example of tacit knowledge?

A. Customer credit limit and unpaid balances B. List of invoices billed for a particular customer C. Ordering needs and preferences for particular customers D. Cost of product ordered and stored in the warehouse Ans: C Feedback: Knowledge Management p. 131 Difficulty: Hard

78. Tacit knowledge: A. deals with more objective, rational and technical knowledge B. consists of policies, procedural guides, reports and strategies C. is the cumulative store of subjective or experiential learning D. has been codified in a form that can be distributed to others Ans: C Feedback: Knowledge Management p. 131 Difficulty: Hard

79. A functioning knowledge management system follows a cycle that consists of six steps. Which of the following actions would be part of the fifth step, manage knowledge?

A. Identify knowledge and represent it in a reasonable way B. Review the knowledge regularly to verify that it is relevant and current C. Make the knowledge available in a useful format to those in the organization who need it D. Store the knowledge in a repository so that others in the organization can access it Ans: B Feedback: Knowledge Management p. 133 Difficulty: Hard

80. What is the purpose of a knowledge management system? To A. Ensure that transaction processing systems are effectively managed B. Create, capture and work with both tacit qualities and explicit facts C. Hold customer and supplier data in a structured way D. Help the organization manage its different types of data bases knowledgably

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: B Feedback: Knowledge Management p. 131.

Difficulty: Easy

81. Explicit knowledge has which of the following characteristics?

A. objective B. personal C. costly to transfer D. ambiguous Ans: A Feedback: Knowledge Management p. 131 Difficulty: Medium

82. Tacit knowledge has which of the following characteristics?

A. codified B. objective C. unstructured D. rational Ans: C Feedback: Knowledge Management p. 131 Difficulty: Medium

83. Historically, management information systems have focused on capturing, storing, managing, and reporting which type of knowledge?

A. tacit B. explicit C. managerial D. geographical Ans: B Feedback: Knowledge Management p. 131 Difficulty: Medium

84. The most important benefit of knowledge management systems is: A. Improved customer service B. Make best practices available to employees C. Retention of scarce knowledge if employees retire D. Improved morale Ans: B Feedback: Knowledge Management p. 131 Difficulty: Medium

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Chapter 4: Data and Knowledge Management

Short Answer and Discussion Questions

1. Discuss the advantages and disadvantages of implementing a database management system at a large international food industry organization such as COFCO Group.

Feedback: Chapter opening case p. 110 and p. 115

2. Describe the various new sources for data and give an example of each.

Feedback: p. 111-112

3. Discuss the difficulties in managing data.

Feedback: Managing Data p. 112-114

4. Discuss the advantages of the database approach.

Feedback: The Database Approach and Database Management Systems p. 115-116

5. Define each element of the data hierarchy, in order from smallest to largest.

Feedback: The Database Approach and Database Management Systems p. 116-117

6. Describe entity-relationship modeling.

Feedback: The Database Approach and Database Management Systems p. 117-119

7. Describe the relational database model.

Feedback: The Database Approach and Database Management Systems p. 119-120

8. Describe the characteristics of a data warehouse.

Feedback: Data Warehousing p. 123-127

9. What are the advantages of a data mart?

Feedback: Data Warehousing p. 127-128

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

25

10. Differentiate between master data and transaction data.

Feedback: Knowledge Management p. 128-129

11. Why is data governance so important for organizations?

Feedback: Knowledge Management p. 128-129

12. Discuss the nature and purpose of data governance. Explain how it helped Panasonic manage its data.

Feedback: p. 128-129 and IT’s About Business 4.1

13. Differentiate between explicit knowledge and tacit knowledge. Use examples of each.

Feedback: p. 131

14. Describe the six steps of the knowledge management system cycle.

Feedback: IT’s About Business 4.1 p. 132-133

Cases

Note that these cases have questions that apply to multiple chapters, and are reproduced in the appendix, which show all parts of the question.

1. BestPay Inc. is an online service provider of payroll processing in Winnipeg, Manitoba, with over 125,000 customers. A review of the web site reveals that the organization is full service: you can purchase payroll software, or access systems online. BestPay provides payroll, human resources, and retirement planning and tax services. Employees can even log on and use the systems as an internet-based time clock.

Required: You have been asked to assist with the design of the payroll database for BestPay Inc. Explain the purpose of each of the following components of the database design and provide an example of how they would apply to the payroll database. (10 marks) • • • • •

Data model Entity Attribute Primary Key Secondary Key

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Feedback: p. 117 Suggested Solution: Provide explanation of database design component Data model: - A diagram that represents entities in the database and their relationships

Example from payroll database

Entity: - A person, place, thing or event about which information is maintained also known as record

-

-

-

Attribute: - each characteristic or quality of a particular entity, in the context of data modeling (previously called a field) Primary key: - an attribute/field that uniquely identifies one record in a table / one instance of an entity class Secondary key: - an attribute/field that has some identifying information but does not identify the entity/record with complete accuracy

-

The payroll database data model would show relationships between employees and other related entities such as their position or payroll category (e.g. salary or hourly), their benefits elections, their length of service and related eligibilities Employee – including employee number, name, address and personal information Payroll category – including rate of pay, salary or hourly, commission, …

Pay period – hours worked, vacation and sick days taken, overtime hours the Employee entity might include attributes such as employee number, name, address, job title or category, and other personal information

-

employee number – a unique identifier of each employee

-

employee name – enables searching for an employee if employee numbers not known, but may include additional information if numerous employees have the same name job title – could be used find all employees with the same type of job in the organization employee address

-

2. Camelot Industries Ltd. (CIL) sells card decks, all kinds of them. Playing cards for children and adults, tarot cards (for self-analysis and fortune telling), and a variety of new age cards such as angel cards, dragon cards, sacred geometry cards and native medicine cards. Traditionally, CIL sold only to retail outlets, although they had factory direct sales at their distribution centre every morning.

Last year, CIL created a web site, camelotcards.com, used to sell cards directly to a broader range of retailers and to the general public. To help its existing dealer network, the web site has a location directory, so that individuals can find out where the card deck of their choice is selling in their area. Also, to help its existing dealer network, sales to the general public are accepted only if the individual is buying at least ten decks of cards. Otherwise, the individual is urged to go their nearest new age book or novelty store.

Camelot Industries Ltd. (CIL) has 35,000 retailers around the world that purchase its products. CIL uses functional software to handle its transaction processing for sales to these retailers.

Required: A) Camelot Industries Ltd. (CIL) is thinking of implementing new software for its data management that would include a relational database. Provide CIL with four advantages or disadvantages for the use of a relational database management system. (4 marks) Feedback: 115-116 and 119-120

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Suggested Solution: Advantages: DBMS minimizes problems such as: - Data redundancy – storing data in many places - Data isolation – application cannot access data associated with other applications - Data inconsistency – various copies of the data do not agree RDBMS design, with numerous related tables and unique primary keys, allow users flexibility in the variety of queries that can be made.

DBMS maximizes issues such as: - Data security - Data integrity – data meets constraints, such as no alphabetic characters in a numeric field such as Student number - Data independence – applications and data are independent of one another. Since not linked to each other, numerous applications can be designed to access the same data Disadvantages: - Can be complex and costly to set up and maintain - Complex structure can result in slow processing of of high-volume applications RDBMS design can be complex, resulting in slow search and access times B) Following is an example of what the sales transaction information at CIL looks like: Customer number

Invoice number 00095235 00085632 00195732

Ang852 Ojk685 Zee153

Invoice date

Invoice amount

August 12,2009 August 31, 2009 October 14, 2009

1596.35 680.66 6011.00

Clearly describe the following terms and provide an example from the table for each term. Clearly explain why your example is appropriate. (8 marks) • • • •

Attribute Record Instance Secondary key

Feedback: p. 117-118 Suggested Solution: Term

Description

Attribute

Each characteristic or quality of a particular entity (a.k.a. field)

Record

Logical grouping of related fields(attributes)

Instance

One particular entity in an entity class (one specific record)

Secondary key

Fields (attributes) with some identifying information, but do not uniquely identify an record (entity)

Example with explanation stating why the example is appropriate Any field name, recognizing this information is a characteristic that describes a particular transaction A row of data in the table above – each row contains all the data describing a single sales transaction A single row of data in the table above – each row describes a different sales transaction Invoice amount – may be used to identify an invoice, but multiple invoices could have the same amount

Chapter 4: Data and Knowledge Management

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Customer number – could search and find invoices associated with a particular customer number 3. Your firm, ABM Inc., is an international software developer and hardware manufacturer. The company has locations around the world and employs thousands of people. It markets software in all sectors – by industry (for example, banking and retail) and by software type (for example operating systems, database management systems, functional software).

ABM’s software can be used with a variety of infrastructures (small and large) and for different types of data communications. This means that organizations can purchase ABM’s software for use internally, or for external use, and for small internal systems through to larger systems that involve international data communications.

A) Describe three reasons why it may be difficult for ABM Inc. to manage its data. (3 marks) Feedback: p. 112 Suggested Solution: • Amount of data increases exponentially over time • Data is scattered throughout organisations and collected by many individuals using various methods and devices.

• Data comes from many sources, internal, external and from the web • New sources of data, such as blogs, podcasts, video casts and RFID tags are constantly devoted.

Much of this data is unstructured and cannot truly be represented in a computer record • Data decays and changes over time • Data security, quality and integrity are easily jeopardised

B) For each of the following aspects of a relational database management system, explain the term, and provide an example of how ABM Inc. could use it. (3 marks) Feedback: p. 120-122 Suggested Solution: Database management system aspect or component Query language (e.g. SQL)

Description

Explain how ABM Inc. could use it

A tool/program used to request information from (or manipulate data in) a database.

Data dictionary

Defines the format necessary to enter the data into the database. (describes the data in the database.)

Provides information on

To query the financial database to find out the fastest paying customers To query the customer database to find out the top 20 customers by sales To query the supplier database to find the suppliers that have the least number of delivery issues.

A variety of answers are possible that relate to non-routine and ad hoc queries routine queries would likely be handled by standard system reports.

To assist programmers develop new programs more quickly as the data dictionary provides names and standard definitions for all attributes To determine how often an attribute should be updated To find out what programs use an attribute and why

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Normalization

each attribute, such as name, key or not, type of data expected, etc.

Method for analyzing and reducing a relational database to its most streamlined form for minimum redundancy, maximum data integrity and optimal processing performance.

ABM can reduce the number and size of its databases by eliminating redundant data items ABM can improve the processing speed of its databases ABM can increase data integrity as attribute in a table depend only on the primary key

29

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 5: Network Computing

True/False

1. Computers can exchange data over networks of clearly delineated size.

Ans: False. Networks of any size can be used to exchange data.

Feedback: p. 143 Difficulty: Easy

2. Standalone computers increase employee productivity as much as computer networks.

Ans: False. Networks provide for exchange of data and access to many data sources.

Feedback: p. 143 Difficulty: Easy

3. The major problem of discovery is the huge amount of information available.

Ans: True Feedback: Network Applications p. 144 Difficulty: Easy

4. Metasearch engines search several engines at once and integrate the findings of the various search engines.

Ans: True Feedback: Network Applications p. 144 Difficulty: Easy

5. The quality of automatic translation of Web pages is usually just as good as human translation.

Ans: False. Although automatic translation of Web pages is improving in quality, it is not as good as human translation.

Feedback: Network Applications p. 144 Difficulty: Easy

6. Commercial portals are intended for broad audiences and offer fairly routine content.

Ans: True Feedback: Network Applications p. 147 Difficulty: Easy

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Chapter 5: Network Computing

2

7. Industrywide portals are intended for broad audiences and offer fairly routine content.

Ans: False. They serve specific industries.

Feedback: Network Applications p. 148 Difficulty: Easy

8. Electronic mail is the largest-volume application running over the Internet.

Ans: True Feedback: Network Applications p.148 Difficulty: Easy

9. With Voice-over-IP, every call opens up a dedicated circuit for the duration of the call.

Ans: False. In VoIP, a call is just any other data.

Feedback: Network Applications p. 149 Difficulty: Easy

10. Web 1.0 sites were interactive, where Web 2.0 sites deliver information to users, who receive it passively.

Ans: False. This should be reversed : Web 1.0 sites are passive, where Web 2.0 sites are interactive.

Feedback: Web 2.0 p. 154 Difficulty: Easy

11. A blog is a personal Web site, open to the public, in which the site creator expresses his or her feelings or opinions.

Ans: True Feedback: Web 2.0 p. 156 Difficulty: Easy

12. Businesses should pay close attention to what bloggers are writing about them and their products.

Ans: True Feedback: Web 2.0 p. 156 Difficulty: Medium

13. A Wiki is a personal Web site, open to the public, in which the site creator expresses his or her feelings or opinions.

Ans: False. A wiki is a web site where anyone can post or edit material.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3

Feedback: Web 2.0 p. 156 Difficulty: Easy

14. Really simple syndication is a Web development technique that allows portions of Web pages to reload with fresh data instead of requiring the entire Web page to reload.

Ans: False. RSS provides notification of web site content changes.

Feedback: Web 2.0 p. 158 Difficulty: Easy

15. If you want to construct your own customized newspaper, you would use really simple syndication.

Ans: True Feedback: Web 2.0 p. 158 Difficulty: Medium

16. Social networking sites can be a useful way to find like-minded people online.

Ans: True Feedback: Web 2.0 p. 159 Difficulty: Easy

17. Aggregators take content from other Web sites and combine that content to create a new kind of content.

Ans: False. They simply provide collections of content from the Web. Feedback: Web 2.0 p. 161 Difficulty: Easy

18. Technorati is a good example of a mashup.

Ans: False. It is an aggregator Web site.

Feedback: Web 2.0 p. 161 Difficulty: Easy

19. E-learning is only done in virtual classrooms, where all coursework is done online.

Ans: False. It can also be used in the classroom.

Feedback: E-Learning and Distance Learning p. 162 Difficulty: Easy

Chapter 5: Network Computing

20. Virtual universities are online universities from which students take classes from home or at an off-site location, via the Internet.

Ans: True Feedback: E-Learning and Distance Learning p. 162 Difficulty: Easy

21. Employees who telecommute have generally found that the experience enhances their careers.

Ans: False. Lack of workplace visibility is a disadvantage of telecommuting.

Feedback: Telecommuting p. 164 Difficulty: Easy

Multiple Choice

1. Organizations such as Del Monte can effectively use social networking to: A. Help customers collaborate in searching the internet B. Design the types of products that customers want C. Develop better chat software that could be used by many companies D. Reduce the company’s reliance upon networks Ans: B Feedback: p. 142, Chapter opening case Difficulty: Easy

2. A network application that enables users to access information located in databases all over the world is called: A. Discovery B. Communications C. Collaboration D. Web services Ans: A Feedback: Network Applications p. 144 Difficulty: Easy

3. Search engines and metasearch engines are examples of which network application?

A. Discovery B. Communications C. Collaboration D. Web services Ans: A Feedback: Network Applications p. 144 Difficulty: Easy

4

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

4. Software that searches several search engines at once and integrates the findings is called a(n): A. search engine B. metasearch engine C. wiki D. blog Ans: B Feedback: Network Applications p. 144 Difficulty: Easy

5. Approximately how quickly does the amount of information on the Web increase each year.?

A. stays about the same B. doubles C. quadruples D. triples Ans:B Feedback: Network Applications p. 144 Difficulty: Easy

6. Portals are an example of which network application?

A. Discovery B. Collaboration C. Communications D. Web services Ans: A Feedback: Network Applications p. 144, 146 Difficulty: Easy

7. A gateway to different types of systems using internet standards is called a(n): A. Portal B. Chat room C. Wiki D. Uniform resource locator (URL) Ans: A Feedback: p. Network Applications 146-147 Difficulty: Easy

8. The purpose of a portal is to: A. provide a web-based personalized gateway to information and knowledge B. translate documents from office automation systems C. communicate information to all parties on a distribution list D. be a distribution point for multiple retail outlets

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Chapter 5: Network Computing

6

Ans: A Feedback: p. Network Applications 146-147 Difficulty: Medium

9. The type of portal that offers content for diverse communities and is intended for broad audiences is called: A. industrywide portal B. Affinity portal C. corporate portal D. Commercial portal Ans: D Feedback: Network Applications p. 147 Difficulty: Easy

10. Portals that offer content for diverse communities intended for broad audiences are called: A. Mobile portals B. Commercial portals C. Affinity portals D. Corporate portals Ans: B Feedback: Network Applications p. 147 Difficulty: Easy

11. Portals that support communities such as hobby groups or a political party are called: A. industrywide portal B. Affinity portal C. corporate portal D. commercial portal Ans: B Feedback: Network Applications p. 147 Difficulty: Easy

12. The internet is being used to access a personalized gateway to information and knowledge for a student alumni group. This gateway is called a(n): A. affinity portal B. corporate access point C. software agent D. mobile portal Ans: A Feedback: Network Applications p. 147 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

13. The portals that coordinate content within relatively narrow organizational and partners’ communities are called: A. publishing portals B. affinity portals C. corporate portals D. commercial portals Ans: C Feedback: Network Applications p. 147 Difficulty: Easy

14. A portal that offers a personalized, single point of access through a web browser to critical business information located inside and outside of an organization, is called a(n): A. commercial portal B. corporate portal C. affinity portal D. industrywide portal Ans: B Feedback: Network Applications p. 147 Difficulty: Easy

15. A virtual meeting place where individuals can regularly exchange informal text and symbolic communication is called a (n): A. Virtual group B. Internet telephony C. Teleconference D. Chat room Ans: D Feedback: Network Applications p. 149 Difficulty: Easy

16. Every call opens up a dedicated circuit for the duration of the call when you use: A. Voice over IP B. Plain old telephone service C. Chat room D. Teleconference Ans: B Feedback: Network Applications p. 149 Difficulty: Easy

17. What is a disadvantage of using VoIP (Voice over internet protocol)?

A. You can implement teleconferencing via the internet B. Long distance charges may be drastically reduced C. Software may be available to do long distance at no charge D. If the internet is unavailable, you will be unable to make a telephone call

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Chapter 5: Network Computing

Ans: D Feedback: Network Applications p. 149 Difficulty: Medium

18. Workflow, groupware, and telepresence systems are examples of which network application?

A. Discovery B. Communications C. Collaboration D. Web services Ans: C Feedback: Network Applications p. 150 Difficulty: Easy

19. The use of digital technologies that enable organizations or individuals to collaboratively plan, design, develop, manage and research products, services and innovative applications is called: A. workflow management B. virtual collaboration C. web-based call centre D. industry wide portal Ans: B Feedback: Network Applications p. 150 Difficulty: Easy

20. The newest type of videoconferencing technology is: A. Teleconferencing B. Telepresence C. Work group analysis software E. Groupware Ans: B Feedback: Network Applications p. 153 Difficulty: Easy

21. Users typically have little interaction with which of the following sites that provide information that users receive passively?

A. Affinity portals B. Web 1.0 sites C. Web 2.0 sites D. Wikis Ans: B Feedback: Web 2.0 p. 154 Difficulty: Easy

8

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

22. The difference between Web 1.0 and Web 2.0 is that A. Web 1.0 sites offer secure services while Web 2.0 sites are fully open to access B. Web 1.0 sites are places to visit while Web 2.0 sites are places to get something done C. Web 2.0 is restricted to foreign language or multi-language sites D. Web 1.0 is now primarily used by the financial services sector for e-commerce Ans: B Feedback: Web 2.0 p. 154 Difficulty: Medium

23. AJAX is a web development technique that: A. allows portions of web pages to reload with fresh data instead of reloading the entire web page B. is used to describe keywords or pieces of important information to facilitate classification C. enables construction of business applications using web services rather than dedicated computing equipment D. permits users to select and combine almost any device, from personal computers to mobile phones Ans: A Feedback: Web 2.0 p. 156 Difficulty: Hard

24. One way to speed up Feedback time when using the web is to have only portions of web pages reload with fresh data instead of requiring the entire web page to reload. This development technique is called: A. Ajax B. Virtual group C. Tagging D. Refreshing Ans: A Feedback: Web 2.0 p. 156 Difficulty: Hard

25 A Web development technique that allows portions of Web pages to reload with fresh data rather than requiring the entire page to reload is called: A. AJAX B. Tagging C. Wikis D. Blogging Ans: A Feedback: Web 2.0 p. 156 Difficulty: Easy

26. A process that allows users to place information in multiple, overlapping associations is called: A. AJAX B. Tagging C. Really simple syndication

9

Chapter 5: Network Computing

10

D. Blogging Ans: B Feedback: Web 2.0 p. 156 Difficulty: Easy

27. A keyword or term that describes a piece of meaningful information is: A. blog B. ajax C. wiki D. tag Ans: D Feedback: Web 2.0 p. 156 Difficulty: Medium

28. Blogosphere is the term used for the A. Millions of blogs on the web B. Intention of gradually improving quality on personal blogs C. Professional blog writers, such as journalists D. Collection of blogs focused on an individual topic or category Ans: A Feedback: Web 2.0 p. 156 Difficulty: Medium

29. A process that enables users to create a personal Web site containing his or her thoughts, feelings, and opinions is called: A. Tagging B. Really simple syndication C. Wikis D. Blogging Ans: D Feedback: Web 2.0 p. 156 Difficulty: Easy

30. A personalized website, open to the public, in which the site creator expresses his or her feelings or opinions is a(n): A. web service application B. podcast C. wiki D. weblog Ans: D Feedback: Web 2.0 p. 156-157 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

31. A Web site on which anyone can post material and make changes to other material is a(n): A. Blog B. Wiki C. Affinity portal D. Really simple syndication feed Ans: B Feedback: Web 2.0 p. 156-157 Difficulty: Easy

32. The purpose of a wiki web site is to A. Promote individual expression B. Provide highly credible evidence on a variety of topics C. Reduce the likelihood of unauthorized changes D. Harness the collective intelligence of internet users Ans: D Feedback: Web 2.0 p. 156-157 Difficulty: Medium

33. Which of the following technologies would be most suited for project management?

A. Blogs B. AJAX C. Wikis D. Really simple syndication feeds Ans: C Feedback: Web 2.0 p. 158 Difficulty: Medium

34. The purpose of RSS (really simply syndication) is to: A. provide collections of content from multiple web sites in summarized form B. allow users to upload their content to the web in the form of text files C. provide subscribers with notification of blog or other website changes D. create a personal web site accessible to the entire internet community Ans: C Feedback: Web 2.0p. 158 Difficulty: Hard

35. Charlie receives information about new sports postings daily from his favourite sports blog. To do so, he signed up at the blog and asked to be notified about any new postings. Charlie is receiving: A. An email B. A Wiki C. A Podcast D. RSS (really simple syndication)

11

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12

Ans: D Feedback: Web 2.0 p. 158 Difficulty: Easy

36 Which of the following allows users to receive customized information when they want it, without having to surf thousands of Web sites?

A. AJAX B. Tagging C. Blogging D. Really simple syndication Ans: D Feedback: Web 2.0 p. 158 Difficulty: Easy

37. What media is part of a podcast?

A. Text and images B. Digital audio C. Graphics only D. Moving images (video) Ans: B Feedback: Web 2.0 p. 159 Difficulty: Medium

38. A digital audio file that is distributed over the Web for playback on portable media players or personal computers is called a: A. Really simple syndication feed B. Blog C. Podcast D. Videocast Ans: C Feedback: Web 2.0 p. 159 Difficulty: Easy

39. Which of the following is an example of a Web 2.0 application?

A. Office automation B. Social networking C. Transaction processing D. Enterprise resource planning systems Ans: B Feedback: Web 2.0 p. 159 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

40. Web sites that allow users to upload their content to the Web, in the form of text, voice, images, and videos are called: A. Aggregators B. Mashups C. Social networking D. Affinity portals Ans: C Feedback: Web 2.0 p. 159 Difficulty: Easy

41. A particularly valuable business-oriented social networking site is: A. MySpace B. FaceBook C. LinkedIn D. Twitter Ans: C Feedback: Web 2.0 p. 159 Difficulty: Easy

42. Web sites that provide collections of content from the web are known as: A. Blogs B. Mashups C. Social networking sites D. Aggregators Ans: D Feedback: Web 2.0 p. 161 Difficulty: Medium

43. Technorati (www.technorati.com) contains information on all blogs in the blogosphere. It shows how many blogs link to a particular blog, and it ranks blogs by type. Technorati is a(n): A. Mashup B. Wiki C. Podcast D. Aggregator Ans: D Feedback: Web 2.0 p. 161 Difficulty: Easy

44. Web sites that provide collections of content from all over the Web are known as: A. Aggregators B. Social networks C. Mashups D. Corporate portals

13

Chapter 5: Network Computing

14

Ans: A Feedback: Web 2.0 p. 161 Difficulty: Easy

45. A web site that takes content from a number of other web sites and mixes them together to create a new kind of content is called a(n); A. RSS (really simply syndication) B. podcast C. mashup D. videocast Ans: C Feedback: Web 2.0 p. 161 Difficulty: Medium

46. A Web site that takes content from other Web sites and puts it together to create a new type of content is called a A. Aggregator B. Social network C. Mashup D. Corporate portal Ans: C Feedback: Web 2.0 p. 161 Difficulty: Easy

47. Skibonk is a Web site that provides a clearinghouse of skiing information (e.g., locations, snow conditions, weather, equipment, rentals, etc.). Skibonk is which kind of a Web 2.0 site?

A. Aggregators B. Social networks C. Mashups D. Corporate portals Ans: C Feedback: Web 2.0 p. 161 Difficulty: Medium

48. TheRecord.com is a Web site that combines road construction project information with Google Maps to provide a guide to drivers of traffic congestions in the Waterloo region. TheRecord.com is an example of which kind of Web 2.0 site?

A. Aggregators B. Social networks C. Mashups D. Really simple syndication Ans: C Feedback: Web 2.0 p. 161 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

49. What is one of the major drawbacks of e-learning?

A. Most participants take longer to do the learning when it is in electronic format B. Online materials tend to be less current than classroom learning C. Instructors do not really know who completed the assignments D. E-learning is used to fully replace the classroom learning, resulting in unemployment Ans: C Feedback: E-Learning and Distance Learning p. 162 Difficulty: Medium

50. Which of the following is an advantage of e-learning?

A. Students must be computer literate B. Face-to-face interaction is reduced C. Reduce training costs, such as facility space D. It may be difficult to determine who has completed assigned work Ans: C Feedback: E-Learning and Distance Learning p. 162 Difficulty: Medium

51. Which of the following is a disadvantage of telecommuting?

A. Ability for employers to retain skilled employees B. Reduced stress and improved family life C. Decreased travel time D. The potential for slower promotions due to reduced face time Ans: D Feedback: Telecommuting p. 164 Difficulty: Medium

52. Which of the following is a disadvantage of telecommuting?

A. ability for employers to retain skilled employees B. reduced stress and improved family life C. decreased travel time D. feelings of isolation and loss of workplace visibility Ans: D Feedback: Telecommuting p. 164 Difficulty: Medium

53. Which of the following is an advantage of telecommuting?

A. employer increased productivity and retention of skilled employees B. increased feelings of isolation from fellow employees C. possible loss of fringe benefits such as employee lunches at the cafeteria D. the potential for slower promotions due to reduced face time

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Ans: A Feedback: Telecommuting p. 164 Difficulty: Medium

Short Answer and Discussion Questions

1. What does the following statement mean: “Without networks, the computer on your desk would be merely another productivity tool, just like the typewriter once was.”

Feedback: p. 143-144

2. Describe the benefits of networks to organizations.

Feedback: p. 143-144

3. Describe the four network applications.

Feedback: Network Applications p. 139–148

4. Describe the various types of portals.

Feedback: Network Applications p. 139–148

5. Discuss the different ways that Del Monte used Web 2 to improve customer service. Explain how these techniques benefited Del Monte.

Feedback: p. 142-143

6. Discuss the advantages of voice over IP for organizations.

Feedback: p. 149

7. What are the implications of telepresence systems? Include in your answer the uncertain safety in many parts of the world.

Feedback: p. 153-154

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

17

8. What are the implications of Web 2.0 sites harnessing collective intelligence? Include in your answer marketing applications, product development applications, and others.

Feedback: p. 154-159

9. What are the impacts of AJAX on Web 2.0 sites and visitors who access these sites?

Feedback: p. 156

10. What is blogging and how might blogging affect organizations?

Feedback: Web 2.0 p. 156

11. Describe social networking sites, aggregators, and mashups. How are they used?

Feedback: Web 2.0 p. 159-161

12. Think of a mashup that your university could use. Describe it and the impacts that you envision it would have on your university.

Feedback: Web 2.0 p. 161

13. What are the benefits and limitations of telecommuting? For individuals? For organizations?

Feedback: p. 163-164

14. Explain how games implemented on social networking sites can be used by corporations to promote product awareness and improve sales.

Feedback: p. 169, end of chapter case

Cases

1. Globoha Company sells rare books and antiques made of brass and other metals. The company has a physical location in Kolkata, West Bengal, India and in Montreal, Quebec, Canada. It also has a secure web site.

Globoha has an inventory system that requires each item to have a serial number, as well as providing detailed information about the product (for example, age, description, author or artist), the product cost and product selling price.

Typical inventory information looks like this:

Chapter 5: Network Computing

Serial number* 345560987 149567369

Supplier B. Smith Able Antiques

222234569

S. Saal

18

Status Good quality Needs refurbishing Damaged, medium

Product Type* BookHard AntiqueBrass BookSoft

Cost 15.00 225.00

Sales Price 32.00 0.00

196.32

425.00

Notes: • The Product Type* and Serial number* are used to link the inventory information to other tables that contain detailed information about the product, such as age, author, artist or publisher. There are separate tables for BookHard products (hardcover books), BookSoft (softcover books), AntiqueBrass (antiques made of brass), as well as fifteen other product types that each have different tables.

• Products that are not ready for sale (such as antiques that need fixing or refurbishing) are given a zero sales price.

Required: For each of the following two types of portals, describe the nature or purpose of this type of portal and provide an example of how Globoha Company could use the portal.

(4 marks) • Affinity portal • Corporate portal Feedback: p. 147 Suggested Solution: Describe the nature or purpose of this type of portal Affinity portal: Offers a single point of entry to an entire community of people with affiliated interests

Provide an example of how Globoha Company could use the portal 1) Globoha could set up a portal for its customers, i.e. brass/antique or rare book collectors. The portal could provide links to -sources of information on how to care for and preserve antiques, -services offering chat rooms, blogs, wikis where collectors could discuss their collections, -experts or information sources to help them identify origins of their items, etc.

2) Globoha could use a portal for antique or rare book collectors to seek out people or organizations that have items of interest to Globoha

Corporate portal: Offers a personalized, single point of access through a web browser to critical business information inside and outside an organization

1) Globoha could create a portal for use by its employees to help them locate other dealers of rare books and brass/metal antiques, appraisers who could determine authenticity and value of rare objects, sources of authoritative information about rare books and antiques, auctions and events related to their products, etc.

2) Globoha could create a portal for use by customers, where they could search for information about, or help them locate rare books and brass/metal antiques in which they have interest.

Globoha could charge a fee for use of their search services

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

19

and/or transact the purchase and delivery of an item for their customer.

2. As a summer job you have been hired as an intern in the internal audit department of a large national retail organization. As part of your job, you will be assisting with a vulnerability assessment prior to conducting a risk assessment.

Then, the team will consider how controls in could affect privacy at the organization, prior to testing these controls.

Required: Your internal audit team members will be working at two different locations at the organization: some of you will be working in Toronto, while others will be in Montreal. Provide four examples of how your team could use information technology to collaborate during the completion of your work. (4 marks) Feedback: p. 150-154 Suggested Solution: Method Workflow

Virtual group (team) or Virtual collaboration

Groupware

Electronic Teleconferencing – video conferencing

Example – one mark each max four DESCRIPTION: Workflow is the movement of information as it flows through the sequence of required steps that make up an organization’s work procedures -pass documents, information and tasks across team members - manage team availability and calendars DESCRIPTION: Group – a work group whose members are in different locations and who meet electronically – using the internet or intranet.

Collaboration – the use of digital technologies that enable organizations or individuals to collaboratively plan, design, develop, manage, and research products, services, and innovative information systems and electronic commerce applications.

Software product that supports groups of people collaborating on a common task or goal and that provides a way for groups to share resources and information - use group email to broadcast information - use instant messaging (IM) to communicate and collaborate with others - use distributed databases to share data - use whiteboards to brainstorm ideas and draw plans - edit documents and text electronically - share applications with team members doing similar work - take votes and polls on major decisions, build consensus across the team Teleconferencing – the use of electronic communication that allows two or more people at different locations to have a simultaneous conference - telephone conference calls - weekly team conference calls to share information and project status - regular conference calls with management Video conferencing – a virtual meeting in which participants in one location can see and hear participants at other locations and can share data , comments, and graphics by electronic means - video conference calls that also allow team members to share charts, presentations and other visual aids

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3. The federal government has many surplus goods, and also seizes goods for a variety of reasons (at the international border, or stolen goods, for example). It recently set up a web site called GCSurplus (Government of Canada Surplus) where individuals and organizations can bid for and purchase these items.

There are hundreds of items listed at gcsurplus.ca, organized into product categories, including automobiles and computer equipment .

Required: For each of the following two types of applications, describe the application and explain how the federal government could use the application to support the success of its surplus sales web site. (4 marks) • Tagging • RSS (Really simply syndication) Feedback: p. 156, 158 Suggested Solution: Application description Tagging: - it’s a keyword or term, chosen by the users, that describes a piece of relevant information (for example, a blog, a picture, an article, part name, item type or a video clip)

RSS (Really simple syndication): Allows users to receive the information they want (customized information) when they want it, without having to surf thousands of websites – this is done by adding RSS to your tool bar - Allows anyone to syndicate (publish) his or her blog, or any other content, to anyone who has interest in subscribing

How the federal government could use the application to support the success of the surplus sales web site Placing key words on the web so that when possible customers looking for items will go to the Government surplus site. The words could be – surplus – item names – item category – items used for – manufacturer of the items that is available for sale The government would could set up blog features in its web site and start having the public subscribe to it based on item attributes, or have types or purchase interests so that they will be notified when the products are available to bid on

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

1

Chapter 6: E-Business and E-Commerce

True/False

1. In traditional commerce, one or more of the product or service, the process, and the delivery agent can be digital.

Ans: False. The above are examples of e-business.

Feedback: Overview of E-Business and E-Commerce p. 174 Difficulty: Easy

2. Going to the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Ans: True Feedback: Overview of E-Business and E-Commerce p. 174 Difficulty: Easy

3. eBay is a good example of business-to-consumer electronic commerce.

Ans: False. eBay is an example of consumer-to-consumer electronic commerce.

Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

4. Forward auctions are used mainly as a selling channel.

Ans: True Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

5. Even though B2C EC is much larger by volume, B2B is more complex.

Ans: False. B2B is larger by volume than B2C. Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 179 Difficulty: Easy

6. An electronic storefront is a Web site on the Internet representing a single store.

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Easy

Chapter 6: E-Business and E-Commerce

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7. You can make a purchase in a referral mall.

Ans: False. You are transferred to a particular storefront.

Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Easy

8. Selling products such as books and computers on the Internet may reduce vendors’ selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Easy

9. E-Commerce applications enable a person to pay his bills, trade stocks, take out loans, mortgage his home and manage his assets online.

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 181 Difficulty: Easy

10. Virtual banks are those banks dedicated only to Internet transactions.

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 181 Difficulty: Easy

11. Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 183 Difficulty: Easy

12. Internet advertising is impersonal, one-way mass communication.

Ans: False. Advertisements such as banner scan be customized to the target audience.

Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 185 Difficulty: Easy

13. Banners are the most common form of advertisement on the Internet.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: True Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 185 Difficulty: Easy

14. Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Ans: False. The above describes spamming.

Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 185 Difficulty: Easy

15. Business-to-consumer applications comprise the majority of electronic commerce volume.

Ans: False. B2B is about 85% of the volume of e-commerce.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 186 Difficulty: Easy

16. Most E-Commerce companies are owned by the large organizations Ans: False. There are 100’s of thousands of companies.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 186 Difficulty: Easy

17. In the digital economy, Internet-based applications are used only for sales and procurement support Ans: False. There are also electronic exchanges in a variety of business models.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 186 Difficulty: Easy

18. The key mechanisms in the sell-side marketplace are customized electronic catalogues and reverse auctions.

Ans: False. It is forward auctions and electronic catalogues that are the key mechnanisms.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 186 Difficulty: Easy

19. The buy-side marketplace is similar to the business-to-consumer model.

Ans: False. Organizations use a variety of methods such as the reverse auction.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

20. Horizontal exchanges connect buyers and sellers across many industries.

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Chapter 6: E-Business and E-Commerce

Ans: True Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

21. In most cases, traditional payment systems are not effective for electronic commerce.

Ans: True Feedback: Electronic Payments p. 189 Difficulty: Easy

22. Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Ans: True Feedback: Electronic Payments p. 191 Difficulty: Easy

23. Each buyer needs only one e-wallet for all merchants.

Ans: False Feedback: Electronic Payments p. 192 Difficulty: Easy

Multiple Choice

1. Which of the following best describes the ability of FaceBook to generate income?

A. The web site has a high level of advertising income B. FaceBook is not yet profitable C. FaceBook makes substantial profits for corporate “friends” D. Multiple alternatives such as games and contests are highly successful Ans: B Feedback: Chapter Opening Case, p. 172-173 Difficulty: Medium

2. How does electronic commerce (e-commerce) affect an organization’s reach?

A. The volume of information that can be stored about a person increases B. It decreases the number of potential customers to whom the company can market its products C. It increases the number of potential customers to whom the company can market its products D. The diversity of information that can be provided to customers increase Ans: C Feedback: Chapter preview, p. 173 Difficulty: Hard

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3. How does electronic commerce (e-commerce) affect competition? It A. Makes it easier for large corporations to drown out the services provided by smaller organizations B. Provides for sophisticated web sites that make it difficult for new organizations to get established C. Costs large sums of money to set up effective web sites to sell products to consumers D. Removes many of the barriers that previously impeded entrepreneurs who started businesses Ans: D Feedback: Chapter preview, p. 173 Difficulty: Medium

4. Which of the following is an example of pure-play electronic commerce? A company that A. Sells video games via the internet and does not have a physical presence B. Has both a physical and online presence, with the use of an online catalogue C. Sells all of its physical products via an online catalogue, accepting electronic payments D. Engages in auctions to sell damaged goods and services Ans: A Feedback: Overview of E-Business and E-Commerce, p. 174 Difficulty: Hard

5. Which of the following is an example of a clicks and mortar business? A company that A. Sells video games via the internet and does not have a physical presence B. Has both a physical and online presence, with the use of an online catalogue C. Sells all of its physical products via an online catalogue, accepting electronic payments D. Engages in auctions to sell damaged goods and services Ans: B Feedback: Overview of E-Business and E-Commerce, p. 174 Difficulty: Medium

6. How does Twitter help business communications? IT A. Sends hundreds of millions of web standard documents rapidly and effectively B. Provides for workflow management by linking different types of documents C. Distributes SMS (short message service) messages to organizational subscribers D. Is a social networking site that specializes in posting pictures for media advertising Ans: C Feedback: Overview of E-Business and E-Commerce, IT’s About Business 6.1, p. 175 Difficulty: Hard

7. When electronic commerce is used by an individual to sell products or services to other consumers, this is called: A. business-to-business (B2B) B. consumer-to-consumer (C2C) C. business-to-employee (B2E) D. government-to-consumer (G2C)

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Chapter 6: E-Business and E-Commerce

Ans: B Feedback: Overview of E-Business and E-Commerce, p. 176 Difficulty: Easy

8. In this type of e-commerce, the sellers and buyers are organizations.

A. government-to-citizen B. consumer-to-consumer C. business-to-business D. business-to-consumer Ans: C Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

9. eBay is an example of what type of e-commerce?

A. government-to-citizen B. consumer-to-consumer C. consumer-to-business D. business-to-business Ans: B Feedback: Overview of E-Business and E-Commerce, p. 176 Difficulty: Easy

10. In this type of e-commerce, an organization provides information and services to its workers.

A. business-to-employee B. consumer-to-consumer C. consumer-to-business D. business-to-consumer Ans: A Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

11. Direct payment of Social Insurance benefits is an example of which type of e-commerce?

A. government-to-citizen B. consumer-to-consumer C. consumer-to-business D. business-to-consumer Ans: A Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

12. If you are an employee managing your fringe benefits over your company’s intranet, you are engaging in which of the following?

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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A. business-to-business B. business-to-consumer C. consumer-to-consumer D. business-to-employee Ans: D Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

13 Amazon.com is a good example of A.C2C (consumer-to-consumer e-commerce) B. Brick and mortar C. B2B (business-to-business e-commerce) D. B2C (business-to-consumer e-commerce) Ans: D Feedback: Overview of E-Business and E-Commerce p. 176 Difficulty: Easy

14. A company such Dell, which sells directly to customers has which type of e-commerce business model ?

A. Electronic tendering system B. Find-the-best price C. On-line direct marketing D. Viral marketing Ans: C Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

15. When B2B is used with a reverse auction mechanism and businesses request quotes from suppliers, this is called a(n) ; A. Electronic tendering system B. Name-your-own price C. Find-the-best price D. Electronic marketplace and exchange Ans: A Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

16. When an intermediary works with customers, trying to match what the customer is willing to pay to a provider, this is called : A. Find-the-best-price B. Group purchasing (e-coop) C. Deep discounting D. Name-your-own-price

Chapter 6: E-Business and E-Commerce

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Ans: D Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Easy

17. An intermediary helping customers to find a site with the lowest prices is called : A. Find-the-best-price B. Group purchasing (e-coop) C. Deep discounting D. Name-your-own-price Ans: A Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Easy

18. Jack’s Manufacturing has asked its suppliers to place Jack’s pop-up add on their websites. Jack will pay a commission to his suppliers for each sale made from the pop-up on their sites. This is an example of: A. online direct marketing B. affiliate marketing C. viral marketing D. find-the-best-price Ans: B Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

19. General Cookie Company is has a FaceBook page with a contest, encouraging other FaceBook users to tell other people how they like General Cookie cookies. When users do so, they are engaging in: A. online direct marketing B. affiliate marketing C. viral marketing D. find-the-best-price Ans: C Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

20. Jennie and her friends regularly connect with other individuals looking for deals that require a minimum number of purchasers. Then they they get a volume discount. Jennie and her friends are engaging in: A. online direct marketing B. affiliate marketing C. viral marketing D. group purchasing Ans: D Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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21. Trucking Company is selling end of the line trucks from last year using an Internet auction. This type of business model is called: A. online direct marketing B. reverse auction C. online auction D. group purchasing Ans: C Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Easy

22. Chuck purchased a purple blender online, because only white blenders were available in the store.

Chuck’s purchase is an example of : A. mass customization B. membership C. electronic marketplace D. deep discounting Ans: A Feedback: Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: easy

23. ElectricaHappyPlace.com is an organization where electricians and electrical suppliers list excess materials that they have available for exchange. Electricians pick up the materials from a central depot and receive points for materials that they drop off. ElectricaHappyPlace.com is an example of: A. viral marketing B. name-your-own-price C. electronic marketplace or exchange D. bartering online Ans: D Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

24. A web site that appeals to customers who consider only price in their purchasing decisions would likely be a(n); A. viral marketing B. name-your-own-price C. deep discounter D. bartering online Ans: C Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Medium

Chapter 6: E-Business and E-Commerce

25. After paying a $50 fee at BooksRUs.com, you are entitled to purchase all books at a 15% discount.

BooksRUs.com has what type of e-commerce business model?

A. viral marketing B. membership C. deep discounter D. bartering online Ans: B Feedback: Overview of E-Business and E-Commerce, p. 177 Difficulty: Easy

26. eBay uses a what type of auction?

A. forward B. static C. reverse D. physical Ans: A Feedback: Overview of E-Business and E-Commerce p. 178 Difficulty: Easy

27. When, there is one buyer who wants to buy a product and suppliers submit bids and the lowest bid wins, this is what type of auction?

A. forward B. static C. reverse D. physical Ans: C Feedback: Overview of E-Business and E-Commerce p. 178 Difficulty: Easy

28. Which of the following type of auction employs a request for quotation?

A. forward B. static C. reverse D. physical Ans: C Feedback: Overview of E-Business and E-Commerce p. 178 Difficulty: Easy

29. In which of the following business models do businesses request quotes from suppliers and use B2B (business-to-business e-commerce) with a reverse auction mechanism?

A. find-the-best-price B. electronic tendering system C. name-your-own-price D. online direct marketing

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: B Feedback: Overview of E-Business and E-Commerce p. 177 Difficulty: Easy

30. Vendors ask partners to place logos or banners on partners’ site. If customers click on the logo, go to the vendor’s site and buy, then the vendor pays commissions to partners. This is which business model?

A. find-the-best-price B. electronic tendering system C. name-your-own-price D. affiliate marketing Ans: D Feedback: Overview of E-Business and E-Commerce p. 177 Difficulty: Easy

31. Which of the following type of auction is the most common auction model for large purchases?

A. forward B. static C. reverse D. physical Ans: C Feedback: Overview of E-Business and E-Commerce p. 178-179 Difficulty: Easy

32. e-Tailing is an example of A. Web server B. B2C (business-to-consumer e-commerce) C. brick and mortar D. C2C (consumer-to-consumer e-commerce) Ans: B Feedback: Business to Consumer (B2C) Electronic Commerce p. 179 Difficulty: Easy

33. Which type of electronic commerce is the largest by volume?

A. business-to-employee B. consumer-to-consumer C. business-to-business D. business-to-consumer Ans: C Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 179 Difficulty: Easy

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Chapter 6: E-Business and E-Commerce

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34. Which type of electronic commerce does Amazon practice?

A. business-to-employee B. consumer-to-consumer C. consumer- to-business D. business-to-consumer Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 179 Difficulty: Easy

35. This type of e-commerce is known as e-tailing.

A. business-to-business B. collaborative commerce C. intrabusiness D. business-to-consumer Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Easy

36. TheWonderWorld.com is a single internet address that allows a consumer to access about 150 different retailers selling a variety of different products. TheWonderWorld.com is an example of a(n): A. electronic marketplace B. electronic mall C. affiliate marketing D. bartering online Ans: B Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Medium

37. Difficulties in order fulfillment are most closely associated with which of the following?

A. business-to-business EC B. business-to-consumer EC C. government-to-citizen EC D. business-to-employee EC Ans: B Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180 Difficulty: Medium

38. Which of the following transactions represents pure E-Commerce ?

A.Mark orders a computer online from the online catalogue at Gateway, and receives the computer three days later by mail B. Sam buys a gift for his wife through the eBay Web Site by clicking on a special ad, and giving credit information electronically. The gift is delivered the following day by UPS C. Pierre makes an online reservation for a business trip through a major airline’s Web site, and gets the ticket from the help desk at the airport

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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D. Isabelle selects some songs from an online play list, pays online using her credit card, and downloads the songs to her desktop Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180-181 Difficulty: Medium

39. When middlemen are eliminated in a fully automated electronic commerce transaction, this is called : A. Disintegration B. Supply chain integration C. Direct sales D. Disintermediation Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 181 Difficulty: Medium

40. Which of the following is the major motivator for banks to go online?

A. very low transaction cost B. high security C. superb customer service D. ability to print stocks online Ans: A Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 181 Difficulty: Medium

41. With regard to travel services and the airlines, one of the problems that can arise is A. Too many fare options displayed B. Mistakes in fares C. Too few fare options displayed D. No fares offered on certain routes Ans: B Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 183 Difficulty: Medium

42. When Ford Motor Company decided to avoid direct online sales, the company was trying to eliminate which of the following?

A. federal sales taxes B. customer irritation C. channel conflict D. channel integration Ans: C Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 183 Difficulty: Medium

Chapter 6: E-Business and E-Commerce

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43. A(n) automatically launched display caused by some trigger that appears behind the active window is called a(n): A. keyword banner B. random banner C. pop-up ad D. pop-under ad Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 185 Difficulty: Easy

44. A method that offers consumers incentives to accept advertising and e-mail voluntarily is called: A. viral marketing B. personalized marketing C. permission marketing D. paper catalogues Ans: C Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 185 Difficulty: Easy

45. Online word-of-mouth marketing is called: A. permission marketing B. one-to-one marketing C. personalized marketing D. viral marketing Ans: D Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 186 Difficulty: Easy

46. A marketplace model where organizations attempt to sell their products or services to other organizations electronically is called a: A. buy-side B. sell-side C. group purchasing D. electronic exchange Ans: B Feedback: Business-to-Business (B2B) Electronic Commerce p. 186 Difficulty: Easy

47. A marketplace model that has electronic catalogues that can be customized for each large buyer and for forward auctions is called: A. buy-side B. sell-side

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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C. group purchasing D. electronic exchange Ans: B Feedback: Business-to-Business (B2B) Electronic Commerce p. 186-187 Difficulty: Easy

48. In the following marketplace model, electronic commerce technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and purchasing cycle time: A. buy-side B. sell-side C. auctions D. electronic exchange Ans: A Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

49. In the following B2B application, the orders of many buyers are aggregated so that they total to a large volume, in order to merit more seller attention.

A. sell-side B. auctions C. group purchasing D. electronic exchange Ans: C Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

50. Direct and indirect materials in one industry are purchased on an as-needed basis when using: A. horizontal exchanges B. vertical exchanges C. buy-side marketplaces D. sell-side marketplaces Ans: B Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

51. An industry-specific Web resource created to provide a convenient centralized platform for B2B ECommerce among manufacturers, suppliers and customers is called A. E-Commerce site B. Cyber site C. Exchange D. Vertical Exchange Ans: E

Chapter 6: E-Business and E-Commerce

Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Medium

52. Which of the following connects buyers and sellers across many industries and are used mainly for indirect materials?

A. horizontal exchanges B. vertical exchanges C. buy-side marketplaces D. functional exchanges Ans: A Feedback: Business-to-Business (B2B) Electronic Commerce p. 188 Difficulty: Easy

53. A payment mechanism that is similar to regular bank cheques but transmitted electronically, with a signature in digital form is called A. electronic cheques B. electronic credit cards C. electronic cash D. electronic wallet Ans: A Feedback: Electronic Payments p. 189 Difficulty: Easy

54. A method typically used for unplanned B2B purchases for amounts under $2000is a(n): A. electronic cheque B. stored-value money card C. purchasing card D. smart card Ans: C Feedback: Electronic Payments p. 190 Difficulty: Easy

55. A form of e-cash, that allows you to store a fixed amount of prepaid money and then spend it as necessary is: A. electronic cheques B. stored-value money cards C. purchasing cards D. smart cards Ans: B Feedback: Electronic Payments p. 191 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

56. A card with a chip that can store information and can be used for several purposes is called a(n): A. electronic cheque B. stored-value money card C. purchasing card D. smart card Ans: D Feedback: Electronic Payments p. 191 Difficulty: Easy

57. A process that enables two individuals to transfer funds without using a credit card is called a(n): A. electronic cheque B. purchasing card C. smart card D. person-to-person payment Ans: D Feedback: Electronic Payments p. 191 Difficulty: Easy

58 Software mechanisms that provide security measures and convenience for electronic commerce purchasing are: A. electronic cheques B. digital wallets C. purchasing cards D. smart cards Ans: B Feedback: Electronic Payments p. 192 Difficulty: Easy

59. The practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else is called: A. Domain spoofing B. Domain masquerading C. Cybersquatting D. Domain fraud Ans: C Feedback: Ethical and Legal Issues in E-Business p. 194 Difficulty: Easy

60. The practice of using similar but not identical domain names is called: A. Domain spoofing B. Domain masquerading C. Domain tasting D. Cybersquatting

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Chapter 6: E-Business and E-Commerce

Ans: C Feedback: Ethical and Legal Issues in E-Business p. 194 Difficulty: Easy

61. Why did Sears Canada decide to do its web site development inhouse rather than continue selling its products via Amazon ? It wanted A. more flexible methods in responding to customers B. to have a lower cost internet platform with basic functions C. so that electronic payments could be handled on the web site D. to have a web presence similar to other businesses Ans: A Feedback: Chapter closing case, p. 202-203 Difficulty: Medium

Short Answer and Discussion Questions

1. Discuss how corporations can use social networking sites.

Feedback: Opening Case, p. 172-173

2. Differentiate between pure and partial electronic commerce. Give examples of companies in each category.

Feedback: Overview of E-Business and E-Commerce p. 174-175

3. Discuss the benefits and limitations of electronic commerce.

Feedback: Overview of E-Business and E-Commerce p.173-175

4. Discuss the various types of electronic commerce.

Feedback: Overview of E-Business and E-Commerce p. 171–176

5. Discuss the following electronic commerce business models and give examples of each type: online direct marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate marketing, and viral marketing.

Feedback: Overview of E-Business and E-Commerce 177-186

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6. Differentiate between forward and reverse auctions.

Feedback: Overview of E-Business and E-Commerce 178-179

7. Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic malls).

Feedback: Business-to-Consumer (B2C) Electronic Commerce 179-180

8. Differentiate between electronic storefronts and electronic malls and give examples of each.

Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 180

9. Discuss the various methods of online advertising.

Feedback: Business-to-Consumer (B2C) Electronic Commerce p. 184-185

10. Differentiate between sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Feedback: Business-to-Business (B2B) Electronic Commerce p. 186-188

11. Discuss the advantages and disadvantages of Google’s Apps Marketplace web site.

Feedback: IT’s About Business 6.3 and p. 186-188

12. Describe the various types of electronic payments and provide an example of how they would be used.

Feedback: Electronic Payments p. 189-192

13. What is domain tasting? Should it be made illegal?

Feedback: Ethical and Legal Issues in E-Business p. 194-195

14. Describe features in a retail web site that can improve sales and customer satisfaction.

Feedback: End of chapter case, p. 202-203

Chapter 6: E-Business and E-Commerce

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Cases 1. Bellwood College has switched to using electronic readers rather than paper-based textbooks. Students are issued a reader that gives them access to the textbooks that are listed as required for their courses at no additional charge. The publishing fee for the texts, paid to one Canadian publisher, means that the College is now using textbooks from only that publisher. It also means that the College will be spending less on new library acquisitions, since the licence fee for the books is coming from the College library budget.

Students at the College also have access to the College’s email systems, web sites, and a computer lab with a variety of software, as well as a wireless network.

The College Store sells a variety of products in addition to books: these include uniforms, stationary and art supplies. There is also a full service restaurant on campus, which is open to the public, run by students.

Recently, the College has started a campaign for students to bring non-students to the restaurant, by offering free deserts to students who bring a new person to the restaurant.

The College Student Council has set up a web site where students can sell their art work or other products that they have developed or created. Five percent of the sale price goes to the Student Council, and the rest goes to the student.

Required: A) Provide examples of how Bellwood College could engage in or provide the following types of ecommerce: [Note that your examples must indicate a clear understanding of the type of e-commerce listed.] (3 marks) Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C) Feedback: Overview of E-Business and Ecommerce, p. 176.

Suggested Solution: Note: many examples are possible. Note that the italicized part below is a definition and is not worth a mark; the example only is worth a mark as long as it is clear and illustrates the concept that is italicized. To make this question worth additional marks, you could also ask for a definition.

Business-to-consumer (B2C) – organizations sell directly to the consumers examples – the publisher is selling and loading the eBooks directly to the students devices – the restaurant taking reservation from the students online Business-to-business (B2B) – electronic commerce in which both the sellers and the buyers are business organizations - examples -- sale of uniforms, art supplies, stationary and other items for the College Store.

– The restaurant ordering supplies from the suppliers of meats, fruits, vegetables, and restaurant equipment Consumer-to-consumer (C2C) – electronic commerce in which the buyers and sellers are individuals and not businesses.

Example – students selling their eBooks to other students, -- posting of adds for Subletting of apartments or looking for roommates to split the rent, or just general items that students put up for sale for other students to buy.

B) For the following four e-commerce business models, describe the business model and explain how the College or the Student Council could use the business model. (8 marks) • Online direct marketing

Test Bank for Introduction to Information Systems, 2nd Canadian Edition • • •

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Electronic tendering system Viral marketing Electronic marketplace or exchange

Feedback: Overview of E-Business and Ecommerce, p. 177 Suggested solution: Note that many valid examples are possible.

Describe the following e-commerce business models •

•

• •

•

Online direct marketing: Businesses (retailers, manufacturers) selling directly to students – customers. This is very effective for product and service customization.

Electronic tendering system: Businesses request quotations from suppliers for items wanted.

This is also known as a reverse auction in which the purchaser gets pricing of the items they want. The purchaser will take the lowest price Viral marketing: Receivers send information about your product to their friends – willingly Electronic marketplaces and exchanges: Transactions are conducted efficiently (more information to buyers and sellers, lower transactions costs) in electronic marketplaces that can be private or public.

This streamlines the buying and selling side of products and services.

Explain how the College or the Student Council could use the business model • The selling of the eBooks with the students required textbook information – also the downloading of the textbooks based on the students enrolment in courses.

• Restaurant tendering for new equipment. The College tendering for one supplier of the eBooks.

•

College Restaurant menus, specials to their students friends, product selections that the students recommend to their friends • The College store, or restaurant would be making purchases of the products for their business from either the suppliers’ websites or a third party website to sell to the students.

2. Lovely Hands Company (LHC) is a jewelry store that specializes in diamond rings, Rolex watches and precious stone ornaments, such as diamond earrings. LHC’s products start at $500 and go upwards to a few high end items that sell for hundreds of thousands of dollars. The in-store jeweler, a master craftsman, designs products for his customers, and is world-renowned for his original designs.

LHC is considering embedding tiny RFID chips, called the Memory Spot, on the inside of each jewelry item in inconspicuous locations. At a size only slightly larger than the tip of a pencil, the Memory Spot can easily be placed upon products in places where they are difficult to remove without the proper tools. The jeweler would be responsible for embedding and removing these chips. For low-end products (those that sell for less than $2,000), the chips would be permanently installed, while for high-end products they would be removed after customer payment by the jeweler, at the option of the customer.

The Memory Spot does not require a power source, as it uses power from the magnetic field generated by the wireless sensor network or by some wireless devices. The Memory Spot will contain information such as the materials present in the item (e.g. gold, platinum, emerald, or diamond), the item serial number, and its sales price. It will also contain the name and address of the store, and tracking software that can be remotely triggered in the event that the item is stolen. Since the Memory Spot reader must be very close to the item, the inside of the display cases will be fitted with readers, and trigger devices that can be turned on by employees with a foot button in the event of a robbery. The software will also be activated when the store closes at the end of the day, and deactivated when the store opens.

At time of purchase, store equipment will read the Memory Spot, match the information to the customer invoice, and transfer to the Memory Spot the customer’s name and address. In addition to using wireless systems for the Memory Spot, the store’s local area network is also enabled using wireless technology.

Chapter 6: E-Business and E-Commerce

22

Required: Describe three different types of electronic payments that LHC could accept. (3 marks) Feedback: Electronic payments, p. 189-193 Suggested Solution: Credit card: credit cards allow customers to charge payments to their credit card account Debit card: debit cards allow customers to charge payments to their bank account Purchasing card: - payments made with purchasing cards are settled within a week.

- Purchasing cards typically are used for unplanned B2B purchases, and corporations generally limit the amount per purchase (usually $1,000 to $2,000). Purchasing cards can be used on the Internet, much like regular credit cards.

Stored-value money card: The cards you use to pay for photocopies in your library, for transportation, and for telephone calls are stored-value money cards. They are called “stored-value” because they allow you to store a fixed amount of prepaid money and then spend it as necessary. Each time you use the card, the amount is reduced by the amount you spent.

Smart card: - contain a chip that can store a considerable amount of information (more than 100 times that of a stored-value money card) - Smart cards are frequently multipurpose; that is, you can use them as a credit card, a debit card, or a stored-value money card. In addition, when you use a smart card in department store chains as a loyalty card, it may contain your purchasing information.

E-cheque *** or wire transfer direct to bank: - similar to regular paper cheques. They are used mostly in B2B. - A customer who wishes to use e-cheques must first establish a chequing account with a bank. Then, when the customer buys a product or a service, he or she e-mails an encrypted electronic cheque to the seller. The seller deposits the cheque in a bank account, and funds are transferred from the buyer's account into the seller's account.

Digital wallet *** or third party provider such as PayPal: - are software mechanisms that provide security measures, combined with convenience, to EC purchasing.

- The wallet stores the financial information of the buyer, such as credit card number, shipping information, and so on. Thus, the buyer does not need to reenter sensitive information for each purchase.

Note: person-to-person does not apply since these are transactions with a business.

3. Ogly Company produces baking and cooking equipment that is sold around the world and used by restaurants and bakeries. In addition, it produces parts that are sold to distributors who maintain and service the many different types of ovens and fryers. Some distributors are also authorized sales representatives who sell Ogly products.

Ogly sells a large variety of parts by means of its inter-organizational information system (IOS), based upon an extranet. The company web site lists products and their prices. Distributors order the products via the extranet, can check the status of their order and also make payments via the secure services offered.

Ogly also has a public portion to its web site, which can be searched by the general public. On these web pages, individuals and organizations can locate the distributor nearest them to help them service their

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

23

existing baking and cooking equipment or buy new equipment. If a customer wants to sell used equipment, they can take it to a distributor, who will have it listed on the Ogly web site for resale.

Ogly’s web site is friendly to small processors (such as personal digital assistants and smart phones). This means that both a full version of the web site is available, as well as a less-memory intensive version that can be used on hand-held devices.

Required: For the following three e-commerce business models, describe the business model, and explain how Ogly Company could use the business model. (6 marks) • • •

Online auction Product customization Membership

Feedback: Overview of E-Business and E-Commerce, p. 177 Suggested Solution: Note that multiple examples are possible.

Describe the following e-commerce business models Online auction: - Various types of auctions on the internet (e.g. forward, reverse) - Popular in C2C (e.g. EBay), also in B2B

Product customization: - Customers use internet to self-configure products or services - Sellers then price and fulfill them quickly

Membership: - Only members can use the service provided, including access to certain information, conducting trades, etc.

Explain how Ogly Company could use the business model OGLY can run on-line auctions of various types of products or services (e.g. customers selling used equipment) – this can add new members to the system since you must become a member if you win the bid or to bid on the items in the auction.

- OGLY can introduce new products or sell discontinued items - in the case of equipment, buying a group of the top line at a special price may be “bundled” per customer needs, cheaper than regular price – If you price the service plan for the equipment it can be cheaper if you have more than one equipment purchase Ogly could require that you must be a member to obtain certain product information, participate in online auctions – then offer Membership pricing, sales, free delivery, first choice of new products, receipts, now information, advanced product information, newsletter, etc

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 7: Wireless, Mobile Computing and Mobile Commerce

True/False

1. Wireless is a term used to describe telecommunications in which electromagnetic waves carry the signal between communicating devices.

Ans: True Feedback: Material following chapter opening case p. 207 Difficulty: Easy

2. Wireless computing does not really affect productivity.

Ans: False. It increases productivity.

Feedback: Material following chapter opening case p. 207 Difficulty: Easy

3. Wireless technologies are not changing the ways that organizations are doing business, but they are enabling organizations to do business faster.

Ans: False. Many changes in business practices are possible.

Feedback: Material following chapter opening case p. 207-208 Difficulty: Easy

4. Short message service allows for the sending of short text messages on digital cell phones.

Ans: True Feedback: Wireless Technologies p. 209 Difficulty: Easy

5. Microwave transmissions are affected by environmental conditions such as storms.

Ans: True Feedback: Wireless Technologies p. 211, Table 7.2 Difficulty: Easy

6. The higher the orbit of a satellite, the larger its footprint.

Ans: True Feedback: Wireless Technologies p. 212 Difficulty: Easy

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

7. The global positioning system is supported by GEO (Geostationary Earth Orbit) satellites.

Ans: False. They are supported by MEO (Medium Earth Orbit) satellites Feedback: Wireless Technologies p. 213 Difficulty: Easy

8. Radio transmissions are highly secure.

Ans: False. They are susceptible to snooping by anyone with similar equipment on the same frequency.

Feedback: Wireless Technologies p. 214 Difficulty: Easy

9. Bluetooth is a wireless standard that enables short-range connection between mobile devices.

Ans: True Feedback: Wireless Computer Networks and Internet Access p. 215 Difficulty: Easy

10. A hotspot is a small geographical perimeter within which a wireless access point provides service to a number of users.

Ans: True Feedback: Wireless Computer Networks and Internet Access p. 216 Difficulty: Easy

11. Setting up wireless systems in organizations such as hospitals is easy.

Ans: False. It is difficult due to older buildings and legal issues.

Feedback: Wireless Computer Networks and Internet Access, IT’s About Business 7.1 p. 217 Difficulty: Easy

12. Wi-Fi provides excellent security.

Ans: False. Since signals are in the airwaves, they are easy to intercept.

Feedback: Wireless Computer Networks and Internet Access p. 217 Difficulty: Easy

13. Micropayment technology has a limited number of possible applications.

Ans: False. It can be applied to many types of small payments.

Feedback: Mobile Computing and Mobile Commerce p. 222 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3

14. Mobile wallets enable users to make purchases with a single click from a mobile device.

Ans: True Feedback: Mobile Computing and Mobile Commerce p. 223 Difficulty: Easy

15. Telemetry is the science that measures physical remoteness by means of wireless transmission from a remote source to a receiving station.

Ans: True Feedback: Mobile Computing and Mobile Commerce p. 226 Difficulty: Easy

16. Pervasive computing and virtual reality are just different names for the same thing.

Ans: False. Pervasive computing refers to the fact that every object would be wired while virtual reality is a type of software.

Feedback: Pervasive Computing p. 226 Difficulty: Easy

17. In a wireless sensor network, the motes must transmit their data to a central computer.

Ans: False. Each mote performs storage and processing.

Feedback: Pervasive Computing p. 228 Difficulty: Easy

18. Mesh networks are reliable, efficient, and fault tolerant.

Ans: True Feedback: Pervasive Computing p. 229 Difficulty: Easy

19. Rogue access points can be set up by employees.

Ans: True Feedback: Wireless Security p. 229 Difficulty: Easy

20. War driving is the act of locating wireless networks while driving around a certain area.

Ans: True

Chapter 7: Wireless, Mobile Computing and Mobile Commerce

Feedback: Wireless Security p. 229 Difficulty: Easy

Multiple Choice

1. How can merchants in developing countries benefit from the use of cellular telephones?

A. Reduce the number of employees B. find out about product movement C. Spend less on data communications D. Replace land-based telephone systems Ans: B Feedback: Chapter opening case, p. 206-207 Difficulty: Hard

2. What is the relationship between the terms “wireless” and “mobile?”

A. Mobile equipment is equipment that does not have wires B. Wireless networks change their location over time C.Wireless technologies enable mobile computing and mobile commerce D. Microwave towers form mobile wireless networks Ans: C Feedback: Chapter Preview, p. 207 Difficulty: Medium

3. Of the following, which is the major problem with smart phones?

A. They are too expensive.

B. They can be used to compromise security.

C. Their screens are too small.

D. Their browsers are not fully functional.

Ans: B Feedback: Wireless Technologies p. 209 Difficulty: Medium

4. Which of the following is a disadvantage of microwave wireless media?

A. Must use encryption for security B. Expensive C. Signals experience propagation delay D. Are susceptible to environmental interference Ans: D Feedback: Wireless Technologies, p. 211 Difficulty: Hard

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

5. Which of the following is an advantage of microwave wireless media?

A. Easy to install B. Signals pass through lights C. Large coverage area D. High bandwidth Ans: D Feedback: Wireless Technologies, p. 211 Difficulty: Medium

6. Which of the following is an advantage of satellite transmissions?

A. Large coverage area B. Relatively inexpensive C. Easy to install D. Useful for short distances Ans: A Feedback: Wireless Technologies, p. 211 Difficulty: Easy

7. Which of the following is a disadvantage of satellite transmissions?

A. Susceptible to environmental interference B. Must have unobstructed line of sight C. Creates electrical interference problems D. Slow bandwidth Ans: B Feedback: Wireless Technologies, p. 211 Difficulty: Medium

8. Which of the following is a disadvantage of satellite transmissions?

A. Susceptible to environmental interference B. Signals experience propagation delay C. Creates electrical interference problems D. Slow bandwidth Ans: B Feedback: Wireless Technologies, p. 211 Difficulty: Medium

9. Which of the following is a disadvantage of satellite transmissions?

A. Susceptible to environmental interference B. Must use encryption for security C. Creates electrical interference problems D. Slow bandwidth Ans: B

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

Feedback: Wireless Technologies, p. 211 Difficulty: Medium

10. Which of the following is an advantage of radio wave transmissions?

A. Large coverage area B. Usable in all kinds of weather C. Inexpensive and easy to install D. Best for extremely long distances Ans: C Feedback: Wireless Technologies, p. 211 Difficulty: Medium

11. Which of the following is a disadvantage of radio wave transmissions?

A. Creates electrical interference problems B. Must have unobstructed line of sight C. Signals experience propagation delay D. Expensive to install Ans: A Feedback: Wireless Technologies, p. 211 Difficulty: Medium

11. Which of the following is a disadvantage of radio wave transmissions?

A. Susceptible to snooping unless encrypted B. Must have unobstructed line of sight C. Signals experience propagation delay D. Expensive to install Ans: A Feedback: Wireless Technologies, p. 211 Difficulty: Medium

12. Which of the following is an advantage of infrared transmissions?

A. High bandwidth B. Large coverage area C. Signals pass through walls D. Best for short distances Ans: D Feedback: Wireless Technologies, p. 211 Difficulty: Medium

13. Which of the following is a disadvantage of infrared transmission?

A. Susceptible to environmental interference B. Must have unobstructed line of sight

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Expensive D. Must use encryption for security Ans: B Feedback: Wireless Technologies, p. 211 Difficulty: Medium

14. Which type of satellite has the largest footprint?

A. low earth orbit B. medium earth orbit C. geostationary D. polar orbit Ans: C Feedback: Wireless Technologies p. 212 Difficulty: Easy

15. The area of the earth reached by a satellite’s transmission is called: A. Hotspot B. Coverage C. Footprint D. Zone Ans: C Feedback: Wireless Technologies p. 212 Difficulty: Easy

16. The greatest problem with GEO satellites is which of the following?

A. Propagation delay B. Expense C. Orbital life D. Size of footprint Ans: A Feedback: Wireless Technologies p. 212 Difficulty: Easy

17. A satellite-based tracking system that enables the determination of a person’s position is called: A. Bluetooth B. wireless application protocol C. short message service D. global positioning system Ans: D Feedback: Wireless Technologies p. 213 Difficulty: Easy

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

18. A common wireless technology for TV and DVD remote control devices is: A. Bluetooth B. Ultra wideband C. Near field communications D. Infrared Ans: D Feedback: Wireless Technologies p. 214 Difficulty: Easy

19. Which of the following is the most appropriate wireless networking standard for creating personal area networks?

A. Wi-Fi B. Cellular radio C. Microwave D. Bluetooth Ans: D Feedback: Wireless Computer Networks and Internet Access p. 215 Difficulty: Easy

20. The major application area that Bluetooth aims to address is A. short-range connection between mobile devices B. long-range connection between the computers and PDA C. connections between micro-browser and cell phone D. mid-range connection between the computers Ans: A Feedback: Wireless Computer Networks and Internet Access p. 215 Difficulty: Medium

21. The advantages of ultra-wideband networks make it a good choice for which of the following types of transmissions?

A. Short message service B. Basic electronic mail C. Streaming multimedia D. Mouse or keyboard signals Ans: C Feedback: Wireless Computer Networks and Internet Access p. 215 Difficulty: Easy

22. With the shortest range of any wireless network, which of the following is designed to be used with contactless credit cards?

A. Near field communications B. Bluetooth C. Wi-Fi

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

D. Infrared Ans : A Feedback: Wireless Computer Networks and Internet Access p. 215 Difficulty: Easy

23. A small geographical perimeter within which a wireless access point provides service to a limited number of users is called: A. transceiver B. hotspot C. local reception D. wireless network Ans: B Feedback: Wireless Computer Networks and Internet Access p. 216 Difficulty: Easy

24. A major benefit of Wi-Fi is its: A. The many applications available from smart phones B. Extensive, complex user interface functions C. The use of infrared to rapidly move data D. Ability to provide simple Internet access Ans: D Feedback: Wireless Computer Networks and Internet Access p. 216 Difficulty: Easy

25. What is the problem with roaming?

A. There are not enough standard hotspots available B. The data communication speed at hotspots is too slow C. Users cannot readily move from hotspot to hotspot D. Multiple network services offer free service Ans: C Feedback: Wireless Computer Networks and Internet Access p. 216 Difficulty: Easy

26. War chalking is the practice of marking sidewalks and walks to indicate the presence of a A. Wi-Fi Internet hub B. Wi-Max antenna system C. Bluetooth antenna system D. Distributed antenna system Ans: A Feedback: Wireless Computer Networks and Internet Access p. 217 Difficulty: Medium

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

27. Which of the following communicate via radio waves using radio antennas placed within adjacent geographic areas?

A. Bluetooth B. Cell phones C. Satellite D. Ultra-wideband Ans: B Feedback: Wireless Computer Networks and Internet Access p. 218 Difficulty: Easy

28. First generation (1G) cellular technology had which of the following characteristics?

A. Communication of analog signals B. Use of digital signals for low speeds (up to 10 Kbps) C. Support for web browsing D. Instant messaging enabled Ans: A Feedback: Wireless Computer Networks and Internet Access, p. 219 Difficulty: Easy

29. Second generation (2G) cellular technology has which of the following characteristics?

A. Communication of analog signals B. Use of digital signals for low speeds (up to 10 Kbps) C. Support for web browsing D. Instant messaging enabled Ans: B Feedback: Wireless Computer Networks and Internet Access, p. 219 Difficulty: Medium

30. Third generation (3G) cellular technology has which of the following characteristics?

A. Communication of analog signals B. Use of digital signals for low speeds (up to 10 Kbps) C. Support for web browsing and instant messaging D. Digital signals primarily for voice communication Ans: C Feedback: Wireless Computer Networks and Internet Access, p. 219 Difficulty: Medium

31. Mobile computing has two major characteristics that differentiate it from other forms of computing.

What are these two characteristics?

A. Mobility, broad reach B. Mobility, lack of expense C. Security, broad reach

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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D. Security, mobility Ans: A Feedback: Mobile Computing and Mobile Commerce p. 220 Difficulty: Medium

32. With regard to mobile computing knowing where a user is physically present enables a key to offering relevant products and services. Which of the following terms describes this concept?

A. ubiquity B. convenience C. instant connectivity D. localization of products and services Ans: D Feedback: Mobile Computing and Mobile Commerce p. 221 Difficulty: Easy

33. Parking meters that you can pay via your mobile telephone are an example of: A. mobile banking B. wireless electronic payment C. wireless wallet D. brokerage service Ans: B Feedback: Mobile Computing and Mobile Commerce p. 222 Difficulty: Easy

34. If you buy a hot dog at a concession stand using your contactless credit card, you are using a” A. wireless money transfer B. wireless wallet C. wireless bill payment D. wireless electronic payment system Ans: D Feedback: Mobile Computing and Mobile Commerce p. 222 Difficulty: Medium

35. Which of the following best describes an m-wallet (mobile wallet)?

A. It stores all of your personal information B. Analog communication is used to make rapid payments C. Phone bills and utility bills can be paid direct from your phone D. It enables authentication of transactions and payments Ans: D Feedback: Mobile Computing and Mobile Commerce p. 223 Difficulty: Easy

Chapter 7: Wireless, Mobile Computing and Mobile Commerce

12

36. Putting ads on top of taxicabs in Toronto that change as the cabs travel around the city is an example of: A. viral marketing B. permission advertising C. geographical advertising D. location-based advertising Ans: D Feedback: Mobile Computing and Mobile Commerce p. 224 Difficulty: Medium

37. When data communications and information technology are used to provide clinical care to individuals located at a distance and to transmit the information that clinicians need in torder to provide that care, this is called: A. telemedicine B. telemetry C. location-based applications D. mobile portals Ans: A Feedback: Mobile Computing and Mobile Commerce p. 224 Difficulty: Easy

38. The science that measures physical remoteness by means of wireless transmission from a remote source to a receiving station is called: A. telemetry B. wireless access point C. cellular radio D. microwave Ans: A Feedback: Mobile Computing and Mobile Commerce p. 226 Difficulty: Easy

39. The generic term for technologies that use radio waves to automatically identify individual items is: A. telemetry B. bar codes C. shipping labels D. radio-frequency identification Ans: D Feedback: Pervasive Computing p. 226 Difficulty: Easy

40. Which of the following best describes an Active RFID tag?

A. It relies on readers for its power and can be read up to 6 metres B. Rapidly moved around from product to product, these tags are easy to program C. It uses internal batteries for power and broadcasts radio waves to a reader

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

D. They are used for tracking digital images for telemedicine Ans: C Feedback: Pervasive Computing p. 227 Difficulty: Easy

41. Which of the following best describes a Passive RFID tag?

A. It relies on readers for its power and can be read up to 6 metres B. Rapidly moved around from product to product, these tags are easy to program C. It uses internal batteries for power and broadcasts radio waves to a reader D. They are used for tracking digital images for telemedicine Ans: A Feedback: Pervasive Computing p. 227 Difficulty: Easy

42. The major problem with RFID has been: A. expense B. bandwidth C. location D. RFID reader quality Ans: A Feedback: Pervasive Computing p. 227 Difficulty: Easy

43. Networks that collect data from many points over an extended space are called A. Bluetooth networks B. Ultra-wideband networks C. Wireless sensor networks D. Wi-Max networks Ans: C Feedback: Pervasive Computing p. 228 Difficulty: Easy

44. When are motes active?

A. During unusual weather conditions B. At all times, to keep the network stable C. When the neighbouring motes are no longer functional D. When they have data to transmit Ans: D Feedback: Pervasive Computing p. 228 Difficulty: Easy

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

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45. Which of the following wireless communication protocols may be used for reading utility meters without a person having to get out of a truck?

A. RuBee B. ZigBee C. Wi-Fi D. Near field communications Ans: B Feedback: Pervasive Computing p. 229 Difficulty: Easy

46. Which of the following allows unauthorized entry into a wireless network?

A. Lack of encryption B. Disgruntled employee C. Open node D. Rogue access point Ans: D Feedback: Wireless Security p. 229 Difficulty: Easy

47. Although rogue access devices can be installed innocently, these devices can be installed by an attacker trying to gain unauthorized access to a wireless network. In such cases, these devices are called: A. Unencrypted node B. Evil twin C. Open node D. Illegal server Ans: B Feedback: Wireless Security p. 229 Difficulty: Easy

48. The act of locating wireless local area networks while moving around a city is called: A. war dialing B. war driving C. war hacking D. war cracking Ans: B Feedback: Wireless Security p. 229 Difficulty: Easy

49. When unauthorized users attempt to access data traveling over wireless networks, this is called: A. RF jamming B. War driving C. Eavesdropping D. Installing rogue access points

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: C Feedback: Wireless Security p. 230 Difficulty: Easy

50. When a person or a device intentionally or unintentionally interferes with your wireless network transmissions, this is called: A. Radio frequency jamming B. War driving C. Eavesdropping D. War chalking Ans: A Feedback: Wireless Security p. 230 Difficulty: Easy

Short Answer and Discussion Questions

1. Describe the difference between the traditional working environment and the wireless working environment.

Feedback: Material following chapter opening case p. 207-208

2. Describe the convergence of functions in today’s smart phones.

Feedback: Wireless Technologies p. 208-210

3. Differentiate among the three types of satellite.

Feedback: Wireless Technologies p. 211-213

4. Define Bluetooth and give examples of its uses.

Feedback: Wireless Technologies p. 215

5. Describe the 802.11 family of standards.

Feedback: Wireless Computer Networks and Internet Access p. 217

6. What are the problems with Wi-Fi?

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Chapter 7: Wireless, Mobile Computing and Mobile Commerce

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Feedback: Wireless Computer Networks and Internet Access p. 217

7. What are the two characteristics of mobile computing and what are the five value-added attributes of mobile computing?

Feedback: Mobile Computing and Mobile Commerce p. 220-221

8. Describe the services that telemedicine can provide. Would you want to be a patient being treated via telemedicine? Why or why not?

Feedback: Mobile Computing and Mobile Commerce p. 225

9. Describe pervasive computing and the two technologies that provide its infrastructure.

Feedback: Pervasive Computing p. 229

10. Define the four major threats to wireless networks.

Feedback: Wireless Security p. 229-230

Cases

1. GrameenPhone is using the Internet to help to bridge the digital divide in Bangladesh. Bangladesh has over 150 million people but there are relatively few land-line telephones. Cell phone use is exploding, with more than 16 million cell phone subscribers as of 2007. People use cell phones to hook up to the Internet, gain access to services such as e-mail, weather reports, and health information.

GrameenPhone established cell phone access centres where individuals without telephones could access the Internet using cell telephones for a fee. GrameenPhone is partly owned by Grameen Bank. These cell phone centres have provided access to information and data communications in villages where such access previously was not possible.

As a result, villagers in remote areas are now able to make use of the Internet to boost their local economies. For example, farmers in rural areas are now able to use cell phones to transact with customers and suppliers from other villages to buy and sell crops and animals.

Required: Why is m-commerce (mobile commerce) using cellular telephones expanding rapidly around the world? (3 marks) Feedback: Mobile Computing and Mobile Commerce, p. 221 Suggested Solution:

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

• • • • • •

17

Creates opportunities for businesses to deliver new services and attract new customers Widespread availability of mobile devices There is no need for a PC which costs more than a cell phone Cell phone culture is a social phenomenon, especially among young people, increasing use of SMS and text Declining prices of cell phones Bandwidth improvements that provide necessary speed and capacity for m-commerce

2. Ogly Company produces baking and cooking equipment that is sold around the world and used by restaurants and bakeries. In addition, it produces parts that are sold to distributors who maintain and service the many different types of ovens and fryers. Some distributors are also authorized sales representatives who sell Ogly products.

Ogly sells a large variety of parts by means of its inter-organizational information system (IOS), based upon an extranet. The company web site lists products and their prices. Distributors order the products via the extranet, can check the status of their order and also make payments via the secure services offered.

Ogly also has a public portion to its web site, which can be searched by the general public. On these web pages, individuals and organizations can locate the distributor nearest them to help them service their existing baking and cooking equipment or buy new equipment. If a customer wants to sell used equipment, they can take it to a distributor, who will have it listed on the Ogly web site for resale.

Ogly’s web site is friendly to small processors (such as personal digital assistants and smart phones). This means that both a full version of the web site is available, as well as a less-memory intensive version that can be used on hand-held devices.

Required: Ogly is considering implementing RFID (radio frequency identification) tagging systems on its inventory.

Identify advantages and disadvantages to Ogly of using RFID to track and manage its inventory. (5 marks) Feedback: Pervasive Computing, p. 220-229 Suggested Solution: Advantages of using RFID to track and manage inventory: - More durable than bar codes, so they won’t get damaged, will remain useful in tracking items longer, through multiple moves, ...

- Do not require line-of-sight with readers, so will be more easily and effectively read through various movements of inventory - Contains more information than bar codes, including identification of the actual item, increasing accuracy in inventory monitoring and control, accurate sales information recording - Can be Embedded in merchandise to prevent theft -

Can be Attached to merchandise for tracking shipment and receipt, less costly than having people track and record inventory movement

-

Embedded in inventory items for identification, and automatically update inventory and sales records when item passes through ‘check-out’

Disadvantages of using RFID to track and manage inventory:

Chapter 7: Wireless, Mobile Computing and Mobile Commerce

18

-

RFID tags can be PASSIVE (have to be within three feet of a reader) or ACTIVE (can be up to 25 feet away from a reader) – may need to re-design warehouse and store premises to accommodate placement of RFID readers to reliably obtain information from incoming and outgoing inventory items/shipments

-

Much more costly than bar-codes/UPC codes, not practical for low-priced items, particularly if attached to individual inventory items

-

Active requires a power source – will be more costly if this type is used

-

So many types of tags to choose from (Passive RFID, Active RFID, RuBee, Memory spot) - What happens when they are no longer available or maintained?

3. Lovely Hands Company (LHC) is a jewelry store that specializes in diamond rings, Rolex watches and precious stone ornaments, such as diamond earrings. LHC’s products start at $500 and go upwards to a few high end items that sell for hundreds of thousands of dollars. The in-store jeweler, a master craftsman, designs products for his customers, and is world-renowned for his original designs.

LHC is considering embedding tiny RFID chips, called the Memory Spot, on the inside of each jewelry item in inconspicuous locations. At a size only slightly larger than the tip of a pencil, the Memory Spot can easily be placed upon products in places where they are difficult to remove without the proper tools. The jeweler would be responsible for embedding and removing these chips. For low-end products (those that sell for less than $2,000), the chips would be permanently installed, while for high-end products they would be removed after customer payment by the jeweler, at the option of the customer.

The Memory Spot does not require a power source, as it uses power from the magnetic field generated by the wireless sensor network or by some wireless devices. The Memory Spot will contain information such as the materials present in the item (e.g. gold, platinum, emerald, or diamond), the item serial number, and its sales price. It will also contain the name and address of the store, and tracking software that can be remotely triggered in the event that the item is stolen. Since the Memory Spot reader must be very close to the item, the inside of the display cases will be fitted with readers, and trigger devices that can be turned on by employees with a foot button in the event of a robbery. The software will also be activated when the store closes at the end of the day, and deactivated when the store opens.

At time of purchase, store equipment will read the Memory Spot, match the information to the customer invoice, and transfer to the Memory Spot the customer’s name and address. In addition to using wireless systems for the Memory Spot, the store’s local area network is also enabled using wireless technology.

Required: A)

Describe two security threats that could occur with wireless networks. (2 marks)

Feedback: Wireless Security, p. 229-230 Suggested Solution: Rogue access point: A rogue access point is an unauthorized access point to a wireless network. The rogue could be someone in your organization who sets up an access point meaning no harm but fails to tell the IT department. In more serious cases the rogue is an “evil twin,” someone who wishes to access a wireless network for malicious purposes.

Evil twin attack: The attacker is in the vicinity with a Wi-Fi-enabled computer and a separate connection to the Internet. The attacker simulates a wireless access point with the same wireless network name (called an SSID) as the one that authorized users expect. If the signal is strong enough, users will connect to the attacker's system instead of the real access point. The attacker can then serve them a web page asking for

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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them to provide confidential information such as user names, passwords, and account numbers. In other cases the attacker simply captures wireless transmissions.

War driving: This is the act of locating WLANs while driving (or walking) around a city or elsewhere. To war drive or walk, you simply need a Wi-Fi detector and a wirelessly enabled computer. If a WLAN has a range that extends beyond the building in which it is located, then an unauthorized user might be able to intrude into the network. The intruder can then obtain a free Internet connection and possibly gain access to important data and other resources.

Eavesdropping: Refers to efforts by unauthorized users to access data that is travelling over wireless networks.

Jamming: A person or a device intentionally or unintentionally interferes with your wireless network transmissions.

B) The Memory Spot is a passive tag. Describe an active tag, and provide two advantages or disadvantages of active tags for LHC. (3 marks) Feedback: Pervasive Computing, p. 227 Suggested Solution: Active tags have a power source so that they can transmit data.

Advantages: - longer/farther range for reading - could be better used for tracking the jewelry if the item is lost or stolen Disadvantages: - higher cost - larger, and may be difficult or impossible to embed in the jewelry

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 8: Organizational Information Systems

True/False

1. The functional area information systems are the most fundamental information systems in the organization.

Ans: False. Transaction processing systems (TPSs) are the most fundamental.

Feedback: Chapter opening case, p.239 Difficulty: Easy

2. The data processed by transaction processing systems provide the inputs for other organizational information systems.

Ans: True Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

3. In general, organizations try to automate data entry as much as possible.

Ans: True Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

4. Functional information systems support the entire enterprise or major portions of it.

Ans: False. They provide information to managers in functional areas.

Feedback: Functional Area Information Systems, p. 242 Difficulty: Easy

5. Information systems can be function-specific.

Ans: True Feedback: Functional Area Information Systems, p.242 Difficulty: Easy

6. Exception reports show a greater level of detail than is included in routine reports.

Ans: False Feedback: Functional Area Information Systems, p.249 Difficulty: Easy

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Chapter 8: Organizational Information Systems

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7. Historically, functional area information systems were developed independently of one another.

Ans: True Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Easy

8. Information silos were particularly efficient when business processes crossed functional boundaries in an organization.

Ans: False. Such lack of communication results in inefficiencies.

Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Easy

9. Business processes may be located within one functional area, or may span multiple functional areas.

Ans: True Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Easy

10. Best practices are the most successful solutions or problem-solving methods for achieving a business objective.

Ans: True Feedback: Enterprise Resource Planning Systems, p. 252 Difficulty: Easy

11. Enterprise resource planning is an enterprise-wide effort to acquire and retain customers.

Ans: False. The objective is to tightly integrate the functional areas of the organization.

Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Easy

Multiple Choice

1. The most fundamental information systems within organizations are:A. transaction processing systems B. management information systems C. enterprise resource planning systems D. decision support systems Ans: A Feedback: Chapter preview, p. 239 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

2. Which of the following statements best describes a transaction?

A. The process of entering information into a database for storage B. Any business event that generates data worthy of being captured and stored in a database C. Having someone turn on a computer so that they can look at information D. Providing a “snapshot” of the status of a customer’s account Ans: B Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

3. Which of the following is an example of a transaction?

A. Credit limit B. Wage rate C. Shipping address D. Payroll cheque Ans: D Feedback: Transaction Processing Systems, p. 240 Difficulty: Hard

4. Which of the following is an example of a transaction?

A. Credit limit B. Wage rate C. Sales invoice D. Due date Ans: C Feedback: Transaction Processing Systems, p. 240 Difficulty: Hard

5. Which of the following is particularly critical for transaction processing systems?

A. Avoiding entry of errors B. Relating information to other systems C. Backing up data on a monthly basis D. Retaining effective batch processing Ans: A Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

6. What is the purpose of source data automation? To A. locate the source cause of transactions B. speed up transaction processing data entry C. automate processing of reports for reading D. provide information about the source of transactions

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Chapter 8: Organizational Information Systems

Ans: B Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy 7. Which of the following is an example of batch processing?

A. Recording the sale of three pairs of shoes to a single person B. Entering airline reservations into the system as required C. Entering all of the hours worked in a week by all employees D. Depositing cash into an automated teller machine Ans: C Feedback: Transaction Processing Systems, p. 240 Difficulty: Hard

8. When an organization collects data from transactions as they occur, placing them in groups for processing, this is called: A. Batch processing B. Daily processing C. Data control D. Regular processing Ans: A Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

9. Which of the following is an example of batch processing?

A. Recording the sale of four sweaters to a single person B. Entering airline reservations into the system as required C. Recording all of the lease payments due for monthly car payments D. Depositing cash into an automated teller machine Ans: C Feedback: Transaction Processing Systems, p. 240 Difficulty: Hard

10. When business transactions are processed immediately as they occur, this is called: A. batch processing B. on-line transaction processing C. enterprise system processing D. event processing Ans: B Feedback: Transaction Processing Systems, p. 240 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

11. Which of the following is an example of on-line transaction processing?

A. Recording all of the lease payments due for monthly car payments B. Entering airline reservations into the system as they occur C. Entering all of the hours worked in a week by all employees D. Processing monthly interest payments for loans Ans: B Feedback: Transaction Processing Systems, p. 240 Difficulty:

12. Elevon is a financial services company. How are transaction processing systems relevant to Elevon?

They are A. Critical to its success B. Considered periodically (primarily at month end) C. A system that slows down with high volumes D. Basic, unchanging systems.

Ans: A Feedback: Transaction Processing Systems, IT’s About Business 8.1, p. 241 Difficulty: Medium

13. Elevon is a financial services company that processes millions of transactions. Which of the following describes a software issue relevant to Elevon’s transaction processing systems? They A. Must be frequently corrected, causing systems to be unavailable B. Frequently fail, causing the systems to be difficult to use C. Are unreliable due to the many software changes D. Require as many as 500 source code updates and error fixes per month Ans: D Feedback: Transaction Processing Systems, IT’s About Business 8.1, p. 241 Difficulty:

14. What is the purpose of a functional area information system? To A. Integrate information across multiple departments in the organization B. Provide exception reports that can be used across organizational boundaries C. Provide support by increasing internal effectiveness and efficiency D. Link the organization’s internal and external transaction systems Ans: C Feedback: Functional Area Information Systems, p. 242 Difficulty: Easy

15. Which of the following types of software can assist decisions about sources of funds for financing ongoing operations and for decisions about capital investment?

A. Neural network systems, business intelligence systems and office automation B. Decision support systems, business intelligence systems and expect systems C. Decision support systems, business intelligence systems and office automation D. Expert systems, neural networks and decision support system

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Chapter 8: Organizational Information Systems

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Ans: B Feedback: Functional Area Information Systems, p. 242 Difficulty: Hard

16. How can software packages support budget preparation and control?

A. They can automatically monitor exceptions for patterns and trends B. Record transactions as they are received C. Group transactions into batches for monthly processing D. Calculate the rate of return on investments Ans: A Feedback: Functional Area Information Systems, p. 242 Difficulty: Hard

17. Which of the following is an example of an activity supported by functional are information systems in accounting or finance? Providing information about A. Handling multiple currencies B. Sales force automation C. Controlling defects in incoming material D. Product development design collaboration Ans: A Feedback: Functional Area Information Systems, p. 242, and Table 8.1, p. 248 Difficulty:

18. Which of the following is an example of an activity supported by functional are information systems in accounting or finance? Providing the A. Customer profiles and preferences B. Sales force automation C. Ability to close the books at any time on short notice D. Product development design collaboration Ans: C Feedback: Functional Area Information Systems, p. 243, and Table 8.1, p. 248 Difficulty: Medium

19. Which of the following is an example of an activity supported by functional are information systems in accounting or finance? Managing the organization’s A. Customer profiles and preferences B. Sales force automation C. Manufacturing research process to improve effectiveness D. Investments in shares, bonds, real estate and other investments Ans: D Feedback: Functional Area Information Systems, p. 243, and Table 8.1, p. 248 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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20. Which of the following is an example of an activity supported by functional are information systems in accounting or finance?

A. Evaluating controls and corporate governance B. Sales force automation C. Manufacturing research process to improve effectiveness D. Finding employees and evaluating their performance Ans: A Feedback: Functional Area Information Systems, p. 243, and Table 8.1, p. 248 Difficulty: Medium

21. Which of the following is an example of an activity supported by functional are information systems in accounting or finance?

A. Tracking medical and retirement benefits B. Processing paycheques C. Manufacturing research process to improve effectiveness D. Finding employees and evaluating their performance Ans: B Feedback: Functional Area Information Systems, p. 242-3, and Table 8.1, p. 248 Difficulty: Medium

22. Which of the following is an example of an activity supported by a functional area information system in marketing and sales?

A. Knowing who customers are and treating them like royalty B. Allocating financial resources among participants and activities C. Financing capital asset acquisitions D. Handling multiple currencies for accounting transactions Ans: A Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Medium

23. Which of the following is an example of an activity supported by a functional area information system in marketing and sales?

A. Manufacturing research process to improve effectiveness B. Allocating financial resources among participants and activities C. Creating customer profiles and tracking customer preferences D. Handling multiple currencies for accounting transactions Ans: C Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Medium

24. What types of decisions are supported by the economic order quantity (EOQ) model?

A. When and how much inventory to ship

Chapter 8: Organizational Information Systems

8

B. Which employees to hire and how much to pay them C. Which products to assign to research and development D. When and how much inventory to order Ans: D Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Hard

24. A strategy where companies allow their suppliers to monitor their inventory levels and ship products as they are needed is called: A. Product life cycle management B. Shelf management system C. Vendor managed inventory D. Inventory reduction practices Ans: C Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Hard

25. Systems that generate information such as percentage of manufacturing defects or percentage of rework needed are called: A. Production planning systems B. Quality control information systems C. Vendor-managed systems D. Manufacturing life cycle management Ans: B Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Hard

26. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Knowing how much inventory to order or to keep B. Finding employees and deciding which ones to hire C. Administering employee benefits, such as unemployment D. Planning the availability and cost of money Ans: A Feedback: Functional Area Information Systems, p. 244, and Table 8.1, p. 248 Difficulty: Medium

27. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Financing of capital asset acquisitions B. Controlling for defects in incoming material C. Administering employee benefits, such as unemployment D. Planning the availability and cost of money

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: B Feedback: Functional Area Information Systems, p. 244-245, and Table 8.1, p. 248 Difficulty: Medium

28. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Financing of capital asset acquisitions B. Managing financial transactions C. Materials requirements planning D. Planning the availability and cost of money Ans: C Feedback: Functional Area Information Systems, p. 245, and Table 8.1, p. 248 Difficulty: Medium

29. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Financing of capital asset acquisitions B. Managing financial transactions C. Tracking employee human resource records D. Providing just in time inventory management Ans: D Feedback: Functional Area Information Systems, p. 245, and Table 8.1, p. 248 Difficulty: Medium

30. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Integration of computer aided design with computer-aided manufacturing B. Managing financial transactions C. Tracking employee human resource records D. Being able to close the books at any time on short notice Ans: A Feedback: Functional Area Information Systems, p. 245, and Table 8.1, p. 248 Difficulty: Medium

31. Which of the following is an example of an activity supported by a functional area information system in production, operations or logistics?

A. Processing of payroll transactions B. Collaborate with other manufacturers on product design and development C. Tracking employee human resource records D. Being able to close the books at any time on short notice Ans: B Feedback: Functional Area Information Systems, p. 245, and Table 8.1, p. 248 Difficulty: Medium

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Chapter 8: Organizational Information Systems

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32. Which of the following is an example of an activity supported by a functional area information system in human resource management?

A. Collaborate with other manufacturers on product design and development B. Managing financial transactions C. Providing just in time inventory management D. Finding employees and deciding which ones to hire Ans: D Feedback: Functional Area Information Systems, p. 245-248 Difficulty: Medium

33. Which of the following is an example of an activity supported by a functional area information system in human resource management?

A. Periodic employee evaluation by supervisors B. Managing financial transactions C. Providing just in time inventory management D. Being able to close the books at any time on short notice Ans: A Feedback: Functional Area Information Systems, p. 245-248 Difficulty: Medium

34. Which of the following is an example of an activity supported by a functional area information system in human resource management?

A. Financing of capital asset acquisitions B. Training employees C. Providing just in time inventory management D. Being able to close the books at any time on short notice Ans: B Feedback: Functional Area Information Systems, p. 245-248 Difficulty: Easy

35. Which of the following is an example of an activity supported by a functional area information system in human resource management?

A. Financing of capital asset acquisitions B. Controlling for defects in incoming material C. Maintaining employee records D. Being able to close the books at any time on short notice Ans: C Feedback: Functional Area Information Systems, p. 245-248 Difficulty: Easy

36. Which of the following is an example of an activity supported by a functional area information system in human resource management?

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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A. Financing of capital asset acquisitions B. Controlling for defects in incoming material C. Integration of computer aided design with computer-aided manufacturing D. Administration of medical and retirement benefits Ans: D Feedback: Functional Area Information Systems, p. 245-248 Difficulty: Easy

37. Reports contain special information not found in routine reports are called A. Ad hoc B. Summary C. Drill-down D. Key-indicator Ans: A Feedback: Functional Area Information Systems, p. 247-248 Difficulty: Easy

38. When a manager examines sales by region and then wants more detail, for example sales by store and then sales by person, this is what type of report?

A. Drill-down B. Key-indicator C. Comparative D. Exception Ans: A Feedback: Functional Area Information Systems, p. 249 Difficulty: Easy

39. A report that summarizes the performance of critical activities, such as gross profit by store, or payroll costs by store, is what type of report?

A. Drill-down B. Key-indicator C. Comparative D. Exception Ans: B Feedback: Functional Area Information Systems, p. 249 Difficulty: Easy

40. A report that lists performance of difference business units during different time periods is what type of report?

A. Drill-down B. Key-indicator C. Comparative D. Exception

Chapter 8: Organizational Information Systems

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Ans: C Feedback: Functional Area Information Systems, p. 249 Difficulty: Easy

41. Reports that include only information that falls outside certain threshold standards are called: A. Drill-down B. Key-indicator C. Comparative D. Exception Ans: D Feedback: Functional Area Information Systems, p. 249 Difficulty: Easy

42. Which of the following reports is an example of an exception report?

A. The list of all employee wages for a week B. A list of all employees who have worked more than 60 hours per week C. Store benefits summarizing taxes, pension, and unemployment insurance D. Sales by store, listing hours worked by employees Ans: B Feedback: Functional Area Information Systems, p. 249 Difficulty: Hard

43 To effectively manage by exception (i.e., use exception reports), the company must first create: A. Performance standards B. Best practices C. User information requirements D. A database Ans: A Feedback: Functional Area Information Systems, p. 249 Difficulty: Medium

44. Systems that integrate the planning, management, and use of all of an organization’s resources, and are designed to tightly integrate the functional areas of the organization are called: A. Transaction processing systems B. Supply chain management systems C. Functional area information systems D. Enterprise resource planning systems Ans: D Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Easy

45. What were the first functional areas that used ERP (enterprise resource planning systems)?

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

A. Customer relationship management B. Manufacturing business processes C. Human resource management D. Accounting and finance Ans: B Feedback: Enterprise Resource Planning Systems, p. 250 Difficulty: Medium

46. Which of the following is an example of an ERPII (enterprise resource planning – II) system?

A. Payroll cheques B. Inventory control C. Internet-based sales D. Financial statements Ans: C Feedback: Enterprise Resource Planning Systems, p. 251 Difficulty: Medium

47. Which of the following is an advantage of ERP (enterprise resource planning) systems?

A. Need to change existing business practices B. Lengthy implementation processes C. Complex operating processes D. Organizational flexibility and agility Ans: D Feedback: Enterprise Resource Planning Systems, p. 251 Difficulty: Easy

48. Which of the following is an advantage of ERP (enterprise resource planning) systems?

A. Need to change existing business practices B. Lengthy implementation processes C. Complex operating processes D. Improved data for decision support Ans: D Feedback: Enterprise Resource Planning Systems, p. 252 Difficulty: Easy

49. Which of the following is an advantage of ERP (enterprise resource planning) systems?

A. Need to change existing business practices B. Lengthy implementation processes C. Complex operating processes D. Improved integration for better quality and efficiency Ans: D Feedback: Enterprise Resource Planning Systems, p. 252 Difficulty: Easy

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Chapter 8: Organizational Information Systems

50. Which of the following is an advantage of ERP (enterprise resource planning) systems?

A. Need to change existing business practices B. Lengthy implementation processes C. Complex operating processes D. Decreased transaction processing costs Ans: D Feedback: Enterprise Resource Planning Systems, p. 252 Difficulty: Easy

51. Which of the following is a disadvantage of ERP (enterprise resource planning systems)?

A. Decreased transaction processing costs B. A need to change existing business practices to fit predefined processes C. Improved integration for better quality and efficiency D. Organizational flexibility and agility Ans: B Feedback: Enterprise Resource Planning Systems, p. 252 Difficulty: Easy

52. Which of the following is a disadvantage of ERP (enterprise resource planning systems)?

A. Decreased transaction processing costs B. Complex operating procedures with high training costs C. Improved integration for better quality and efficiency D. Organizational flexibility and agility Ans: B Feedback: Enterprise Resource Planning Systems, p. 254 Difficulty: Easy

53. Which of the following is a disadvantage of ERP (enterprise resource planning systems)?

A. Decreased transaction processing costs B. Expensive and time-consuming implementation C. Improved integration for better quality and efficiency D. Organizational flexibility and agility Ans: B Feedback: Enterprise Resource Planning Systems, p. 254 Difficulty: Easy

Short Answer and Discussion Questions

1. Describe how UPS used functional information systems.

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Feedback: Opening Case, p. 238-239

2. Explain the importance and use of transaction processing systems.

Feedback: Transaction Processing Systems, p. 240

3. Differentiate between transaction processing systems and functional area information systems.

Feedback: Transaction Processing Systems and Functional Area Information Systems, p. 240-242

4. Describe how a typical retail organization, such as your favourite store, would use functional information systems.

Feedback: Functional Area Information Systems, p. 242-249

5. Describe the various reports that can be obtained from functional area information systems.

Feedback: Functional Area Information Systems, p. 247-249

6. Define enterprise resource planning systems and discuss why they were developed.

Feedback: Enterprise Resource Planning Systems, p. 250-254

7. Discuss the benefits and limitations of ERP systems.

Feedback: Enterprise Resource Planning Systems, p. 240-254

8. Explain how information systems helped the World Bank implement best practices.

Feedback: Enterprise Resource Planning Systems, p. 240-254, IT’s About Business 8.3, p. 253

9. Discuss the types of organizations that may not be suited for the implementation of ERP systems.

Feedback: Enterprise Resource Planning Systems, p. 240-254

Cases

Chapter 8: Organizational Information Systems

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1. Your firm, ABM Inc., is an international software developer and hardware manufacturer. The company has locations around the world and employs thousands of people. It markets software in all sectors – by industry (for example, banking and retail) and by software type (for example operating systems, database management systems, functional software).

ABM’s software can be used with a variety of infrastructures (small and large) and for different types of data communications. This means that organizations can purchase ABM’s software for use internally, or for external use, and for small internal systems through to larger systems that involve international data communications.

Required: For each of the following information systems, describe the information system and provide an example of how ABM employees could use the system. (6 marks) • • •

Transaction processing system Enterprise resource planning system Functional area information system

Feedback: Transaction processing systems, p. 240; Enterprise Resource Planning Systems, p. 250; Functional Area Information Systems, p. 242 Suggested Solution: Note that many examples are possible Information system description

Transaction processing system: Monitor, collect, store and process data generated from business transactions or events.

Enterprise resource planning system: systems that integrate the planning, management and use of all of an organization’s resources, employing a common software platform and database Functional area information system: support a functional area by increasing its internal effectiveness and efficiency

How ABM employees could use the system reasonable answers that match the purpose of the system are acceptable - pay employees - produce or record sales invoices - record supplier invoices and pay suppliers - provide information about sales from multiple locations and integrate it into a common platform - enable the company to view payroll costs for all locations - manage financial assets - provide investment management - handle product logistics and materials management

2. Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

Required:

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17

Provide four types of reports that could be used by functional area information systems. For each report, describe the nature of the report and provide an example of how each report could be used by a car dealership in its sales systems. (8 marks) Feedback: Functional Area Information Systems, p. 248-249 Suggested Solution: [Note that other examples are possible.]

Type of report Drill-down report: shows a greater level of detail

Key-indicator: summarizes the performance of critical activities Comparative: shows performance of different business units or during different time periods

Exception report: includes only information that falls outside certain thresholds

Example of report that could be used by a car dealership - Sales for the store, with more detail by sales person or by type of vehicle - Payroll costs by department, with greater detail showing hours worked or costs by employee - Number of times that vehicles could not be repaired the same day in a given period (e.g. a month) - Number of vehicles sold in a period (e.g. a week) - comparative financial statements showing the current month and the prior month or the current year to date and the prior year to date - vehicle sales listing for the month, showing also the last six months in each column - list of employees who did not sell at least five cars in a month - maintenance mechanics whose vehicles were returned for rework within two weeks (i.e. the repairs did not function effectively or other repairs were also required that the mechanic did not notice)

3. Sweety Snacks Limited (SSL) is a coffee shop chain that has hundreds of locations around the world.

Recently, it has been experiencing slumping sales due to the recession, and decided to close some of its stores. The remaining stores have been asked to pay closer attention to their sales and inventory, as well as trying to reduce costs, by using the information available from their computer-based information systems.

Required: A) Describe three ways that enterprise systems (also known as ERP or enterprise systems) could benefit the company. (3 marks) Feedback: Enterprise Resource Planning Systems, p. 251-252 Suggested Solution: Note: students could also provide examples that embody the concepts below: B)

Organizational flexibility and agility More precise and timely information Potential for better decision making Unified technology platform Efficient and customer driven operations Describe two limitations of enterprise systems to the company. (2 marks)

resource planning

Chapter 8: Organizational Information Systems

Feedback: Enterprise Resource Planning Systems, p. 252-4 Suggested Solution: Note: students could also provide examples that embody the concepts below: - Way of doing things must be changed - High technology and training costs - Complex and inflexible – frustrating?

Potential loss of strategic advantage by moving to a standard software system

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 9: Customer Relationship Management

True/False

1. Over time, the customer relationship with vendors has become more personal.

Ans: False. It has become more impersonal.

Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

2. The real problem with interacting with customers over the Web is that the company does not have an opportunity to make a good first impression in person.

Ans: True Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

3. Today, customers are supremely important to all organizations.

Ans: True Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

4. CRM systems focus on marketing to large amounts of people.

Ans: False. The focus is to market to each customer individually.

Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

5. CRM systems are designed to achieve customer intimacy.

Ans: True Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

6. The basic idea of CRM is to treat all customers in the same excellent way.

Ans: False. Information is used about each customer.

Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

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Chapter 9: Customer Relationship Management

7. CRM means that a company should interact with its customers as a group.

Ans: False. Businesses market to and interact with each customer individually.

Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Easy

8. In the past, customer data has been located all over the company, typically in the functional areas.

Ans: True Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

9. Properly designed CRM systems provide a single, enterprise-wide view of each customer.

Ans: True Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

10. For purposes of efficiency, customer data are best stored in the functional areas of the organization.

Ans: False. The data should be centralized and available to every business unit.

Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

11. Blogs and wikis can be used as customer touch points.

Ans: True Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

12. Collaborative CRM systems provide interaction with customers throughout the entire organization.

Ans: True Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

13. Transactional CRM systems provide interactive communication with the customer throughout the organization.

Ans: False. It is blogs and wikis that provide interactive communication.

Feedback: Defining Customer Relationship Management, p. 266 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

14. Operational CRM systems support the front-office business processes which directly interact with customers.

Ans: True Feedback: Operational CRM, p. 267 Difficulty: Easy

15. Some companies conduct live chat with customers using a computer with natural language processing software, rather than a real person.

Ans: True Feedback: Operational CRM, p. 268 Difficulty: Easy

16. Sales force automation is a process that records all aspects of the sales transaction process.

Ans: True Feedback: Operational CRM, p. 269 Difficulty: Easy

17. If you have visited Amazon’s Web site previously and then return, Amazon recommends other books that you might like. This is called cross-selling.

Ans: True Feedback: Operational CRM, p. 270 Difficulty: Easy

18. Electronic CRM applications are the same thing as customer-touching CRM. Ans: True Feedback: Operational CRM, p. 270 Difficulty: Easy

Multiple Choice

1. Which of the following describes a function that CRM (customer relationship management) has enabled at Harry Rosen?

A. Improve the speed of entering individual transactions, such as sales of shirts B. Allowing managers to develop marketing campaigns and target individual customers C. Increase the company’s market share by lowering prices to match competitors D. Develop client-centred information systems using customized software

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Chapter 9: Customer Relationship Management

Ans: B Feedback: Chapter Opening Case, p. 262 Difficulty: Hard

2. What was one of the goals of Harry Rosen’s new CRM (customer relationship management) system?

A. Immediately update inventory for all sales transactions made B. Reduce the amount of time that sales representatives spent with customers C. Improve the ordering process so that fashionable products were available in store D. Being able to access real-time information from other stores Ans: D Feedback: Chapter Opening Case, p. 262 Difficulty: Hard

3. Which of the following describes recent trends in customer relationships?

A. They have become more impersonal due to large establishments that achieve economies of scale B. Better customer relationships arose as people moved from the country to the city C. Faster service provided more personal customer relationships as well as product variety D. With lower prices and uniform quality of product, it was easier to provide personal customer relationships Ans: A Feedback: Chapter Preview, p. 263 Difficulty: Hard

4. How has the Internet affected customer relationships with organizations?

A. Poor quality service has resulted in customer insignificance B. Customers are losing the ability to be selective C. Customers are increasingly powerful D. Customers have difficulty changing where they purchase their products from Ans: C Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Hard

5. What is an important goal of customer relationship management? To A. Increase customer turnover B. Aid in product evaluation C. Reduce inventory costs D. Return to personal marketing Ans: D Feedback: Defining Customer Relationship Management, p. 263 Difficulty: Hard

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

5

6. Overall, what duration of relationship are organizations seeking with their customers when they use customer relationship management?

A. Long term B. Short term C. Medium term D. At least six months Ans: A Feedback: Defining Customer Relationship Management, p. 264 Difficulty: Easy

7. What does the CRM (customer relationship management) process start with?

A. Lowering prices to entice the largest number of people to contact the organization B. A public awareness campaign to inform people of the importance of products C. Marketing effort where the organization solicits prospects from a target population D. Having employees try out products to see what their reaction would be Ans: C Feedback: Defining Customer Relationship Management, p. 264 Difficulty: Medium

8. To obtain the most benefit from customer relationship management, the organization should: A. Remove low-value customers from its mass marketing e-mail campaigns B. Segment its repeat customers into low-value and high-value repeat customers C. Make sure that high-value customers are inundated with frequent detailed emails D. Work on improving low-value customers so that they can all become high-value Ans: B Feedback: Defining Customer Relationship Management, p. 264 Difficulty: Medium

9. Researchers at the National Quality Research Center at the University of Michigan found that a 1 percent increase in customer satisfaction could lead to a significant increase in a company’s market capitalization (the number of shares of the company’s stock outstanding multiplied by the price per share of the stock).

How large was this increase?

A. 500 percent B. 300 percent C. 200 percent D. 100 percent Ans: B Feedback: Defining Customer Relationship Management, p. 264 Difficulty: Hard

10. The most important action taken by U.S. Airways after Flight 1549 landed on the Hudson River was which of the following?

A. providing ticket refunds to passengers B. not requiring passengers to waive their legal rights

Chapter 9: Customer Relationship Management

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C. arranging rental cars and train tickets for passengers who did not want to fly D. dispatching more than 100 employees to assist passengers Ans: B Feedback: IT’s About Business 9.1, p, 265 Difficulty: Hard

11. Which of the following is an important enabler of CRM? Recognizing A. that there are many customer touch points B. the necessity of treating all customers the same C. the need for sophisticated CRM information systems D. the need for sophisticated customer databases Ans: A Feedback: Defining CRM, p. 265 Difficulty: Medium

12. Which of the following is the most important enabler of the 360-degree view of the customer across an organization? The organization’s A. database B. data warehouse C. CRM systems D. collaborative CRM systems Ans: B Feedback: Defining CRM Difficulty: Hard

13. The complete data on a customer is called: A. a profile B. a record C. a 360-degree view D. a file Ans: C Feedback: Defining CRM, p. 266 Difficulty: Easy

15.CRM systems that provide interactive communication with the customer throughout the organization are called A. Collaborative CRM B. Operational CRM C. Analytical CRM D. Transactional CRM Ans: A Feedback: Defining CRM, p. 266 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

16. CRM systems that support the front-office business processes which directly interact with customers are called A. CRM B. Collaborative CRM C. Operational CRM D. Analytical CRM E. Transactional CRM Ans: C Feedback: Defining CRM, p. 267 Difficulty: Hard

17. CRM that includes those areas where customers directly interact with the company are called A. Analytical CRM B. Customer-facing CRM C. Customer-touching CRM D. Transactional CRM Ans: B Feedback: Operational CRM,p. 267 Difficulty: Easy

18. The sales, marketing, and service functions are part of: A. analytical CRM B. operational CRM C. collaborative CRM D. transactional CRM Ans: B Feedback: Operational CRM, p. 267 Difficulty: Easy

19. When company representatives use multiple communication channels to support the communications preferences of customers, they are using: A. telesales rooms B. group decision support rooms C. sales team meetings D. customer interaction centers Ans: D Feedback: Operational CRM, p. 267 Difficulty: Easy

20. When organizations use a customer interaction centre to create a call list for the sales team, this is called:

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Chapter 9: Customer Relationship Management

A. Inbound telesales B. Outbound teleservice C. Outbound telesales D. Inbound teleservice Ans: C Feedback: Operational CRM, p. 268 Difficulty: Hard

21. When the customer and the sales team collaborate in discussions of products and services that can satisfy customers’ needs and generate sales, this is called?

A. Inbound telesales B. Outbound teleservice C. Outbound telesales D. Inbound teleservice Ans: C Feedback: Operational CRM, p. 268 Difficulty: Hard

22. When customers contact a customer interaction centre directly to initiate a sales order, this is part of which process?

A. Inbound telesales B. Outbound teleservice C. Outbound telesales D. Inbound teleservice Ans: D Feedback: Operational CRM, p. 268 Difficulty: Hard

23. When customers contact a customer interaction centre directly to inquire about products and services before placing an order, this is part of which process?

A. Inbound telesales B. Outbound teleservice C. Outbound telesales D. Inbound teleservice Ans: D Feedback: Operational CRM, p. 268 Difficulty: Hard

24. When customers contact a customer interaction centre to obtain information about a transaction that they have already made, this is part of which process?

A. Inbound telesales B. Outbound teleservice C. Outbound telesales D. Inbound teleservice

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Ans: D Feedback: Operational CRM, p. 268 Difficulty: Hard

25. Which of the following allows customers to connect to a company representative and conduct an instant messaging session?

A. information help desk B. live chat C. customer interaction center D. teleconference Ans: B Feedback: Operational CRM, p. 268 Difficulty: Easy

26. Amazon wants to be the exception rather than the rule for: A. customer service B. customer transactions C. customer experience D. customer satisfaction Ans: A Feedback: IT’s About Business 9.2, p. 269 Difficulty: Medium

27. When merchants send their products to Amazon’s warehouses, and Amazon does the rest, these organizations are engaging in what type of process?

A. web services B. search C. fulfillment D. shopping Ans: C Feedback: IT’s About Business 9.2, p. 269 Difficulty: Medium

28. In improving its relationship with its customers, Amazon’s ultimate goal is which of the following? To A. gain more control over the shopping experience B. reduce transaction costs C. improve customer satisfaction D. make better decisions Ans: A Feedback: IT’s About Business 9.2, p. 269 Difficulty: Medium

Chapter 9: Customer Relationship Management

29. The component of an operational CRM system that automatically records all aspects of a sales transaction process is called: A. Inbound telesales B. Outbound telesales C. Sales team efforts D. Sales force automation Ans: D Feedback: Operational CRM, p. 269 Difficulty: Easy

30. A process that helps organizations plan so that the right messages are sent to the right people through the right channels, this is called: A. Cross-selling B. Campaign management C. Point-to-point campaigns D. Bundling Ans: B Feedback: Operational CRM, p. 270 Difficulty: Easy

31. The practice of marketing additional related products to customers based on a previous purchase is called: A. Bundling B. Up-selling C. Re-selling D. Cross-selling Ans: D Feedback: Operational CRM, p. 270 Difficulty: Easy

32. You are in the market for a small economy car. The salesperson has you drive the economy car, and then hands you the keys to a mid-size car of the same brand for you to drive. The salesperson is engaged in: A. up-selling B. cross-selling C. bundling D. customer relationship management Ans: A Feedback: Operational CRM, p. 270 Difficulty: Medium

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

33. A sales strategy where the business person will provide to customers the opportunity to purchase higher-value related products is called: A. Bundling B. Up-selling C. Re-selling D. Additional selling Ans: B Feedback: Operational CRM, p. 270 Difficulty: Easy

34. AT&T sells telephone services that include local and long-distance service, voice mail service, caller ID, and digital subscriber line access to the Internet. This is a form of: A. up-selling B. cross-selling C. bundling D. customer relationship management Ans: C Feedback: Operational CRM, p. 270 Difficulty: Medium

35. When a business sells a group of products or services together at a lower price than the combined individual prices of the products, this is called A. Bundling B. Up-selling C. Re-selling D. Cross-selling Ans: A Feedback: Operational CRM, p. 270 Difficulty: Easy

36. When customers help themselves, often through electronic touch points, this process is called: A. analytical CRM B. customer-facing CRM C. customer-touching CRM D. transactional CRM Ans: C Feedback: Operational CRM, 270 Difficulty: Easy

37. Applications and technologies with which customers interact and typically help themselves are called A. Customer facing CRM applications B. Up-selling activities C. Inbound telesales D. Customer touching applications

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Chapter 9: Customer Relationship Management

Ans: D Feedback: Operational CRM, p. 270 Difficulty: Easy

38. A check-in kiosk at the airport would be what type of CRM application?

A. Inbound telesales B. Customer touching C. Outbound telesales D. Customer facing Ans: B Feedback: Operational CRM, p. 270 Difficulty: Medium

39. Electronic CRM applications are considered to be what type of CRM application?

A. Inbound telesales B. Customer touching C. Outbound telesales D. Customer facing Ans: B Feedback: Operational CRM, p. 270 Difficulty: Easy

40. A process in which customers can configure their own products, for example, The Gap allows customers to “mix and match” an entire wardrobe, is called: A. Search and comparison B. Personalized web pages C. Mass customization D. Campaign management Ans: C Feedback: Operational CRM, p. 271 Difficulty: Medium

41. One of the simple tools for answering repetitive customer questions is called: A. Personalized Web pages B. Customized products and services C. Frequently asked questions D. Automated Feedback systems Ans: C Feedback: Operational CRM, p. 271 Difficulty: Easy

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42. The most popular tool for customer service is: A. Personalized Web pages B. Customized products and services C. Frequently asked questions E. E-mail Ans: D Feedback: Operational CRM, p. 271 Difficulty: Easy

43. When an organization has a program that recognizes customers who repeatedly use a vendor’s products or services, this is called a(n): A. Loyalty program B. Marketing campaign C. Cross-selling D. Up-selling Ans: A Feedback: Operational CRM, p. 271 Difficulty: Easy

44. Subway’s new loyalty card program was difficult for the company’s IT department to implement.

Which of the following is the main reason for this difficulty?

A. The program provided too much data for the IT department to handle.

B. The program was too expensive for the IT department budget.

C. The program included too many Subway stores.

D. Subway stores are owned by franchisees. .

Ans: D Feedback: IT’s About Business 9.3, p. 272 Difficulty: Hard

45. The main reason for Subway’s implementation of its new loyalty card program was which of the following?

A. fraud in its old loyalty program B. lack of participation in its old program C. old program was too expensive to maintain D. no IT support for the old program Ans: A Feedback: IT’s About Business 9.3, p. 272 Difficulty: Hard

46. When an organization uses CRM to provide efficient, personalized marketing, sales and service, what type of process is the organization using?

A. Operational CRM B. Analytical CRM C. Provision of active business intelligence

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D. Statistical models of customer behaviour Ans: A Feedback: Operational CRM, p. 273 Difficulty: Easy

47. When an organization uses CRM to provide a 360-degree view of each customer, what type of process is the organization using?

A. Operational CRM B. Analytical CRM C. Provision of active business intelligence D. Statistical models of customer behaviour Ans: A Feedback: Operational CRM, p. 273 Difficulty: Easy

48. When an organization provides the ability of sales and servie employees to access a complete history of customer interaction with the organization, regardless of the touch point, what type of process is the organization using?

A. Operational CRM B. Analytical CRM C. Provision of active business intelligence D. Statistical models of customer behaviour Ans: A Feedback: Operational CRM, p. 273 Difficulty: Easy

49. CRM systems that study customer behavior and perceptions to provide business intelligence are called: A. Collaborative CRM B. Operational CRM C. Analytical CRM D. Transactional CRM Ans: C Feedback: Defining CRM, p. 273 Difficulty: Easy

50. Statistical models of customer behavior and the value of customer relationships over time are part of: A. Analytical CRM B. Operational CRM C. Collaborative CRM D. Transactional CRM Ans: A Feedback: Analytical CRM, p. 273 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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51. Systems that analyze customer data for designing and executing targeted marketing campaigns are part of A. Analytical CRM B. Operational CRM C. Collaborative CRM D. Transactional CRM Ans: A Feedback: Analytical CRM, p. 273 Difficulty: Easy

52. A CRM system that is hosted by an external vendor in the vendor’s data centre is called: A. Mobile CRM B. Analytical CRM C. Operational CRM D. On-demand CRM Ans: D Feedback: Other Types of CRM, p. 275 Difficulty: Easy

53. Which of the following is an advantage of on-demand CRM? A. Vendor reliability issues B. Lack of customization to vendor software C. Saving costs associated with purchase of a system D. Provision of strategic customer data to vendors Ans: C Feedback: Other Types of CRM, p. 275 Difficulty: Easy

54. Which of the following is an advantage of on-demand CRM? A. Vendor reliability issues B. Lack of customization to vendor software C. Employees need to know how to access and use it D. Provision of strategic customer data to vendors Ans: C Feedback: Other Types of CRM, p. 275 Difficulty: Hard

Short Answer and Discussion Questions

Chapter 9: Customer Relationship Management

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1. Describe how a CRM system helped Harry Rosen.

Feedback: Chapter Opening Case, p. 262-263

2. Describe why the customer – vendor relationship has become more impersonal.

Feedback: Material following the chapter opening case, p. 263

3. Explain why data consolidation is important for CRM. Feedback: Defining Customer Relationship Management, p. 266

4. Describe the various customer-facing applications in an organization.

Feedback: Operational CRM, p. 267-268

5. Describe how sales force automation works at Nike.

Feedback: Operational CRM, p. 269-270

6. Describe the various customer touch points in any organization. Which ones are more effective for you as college students?

Feedback: Defining Customer Relationship Management, p. 270-273

7. What are the problems associated with on-demand CRM? Feedback: Other Types of CRM, p. 275

8. Describe the reasons that so many companies think mobile CRM is the CRM system of the future.

Feedback: Other Types of CRM, p. 275

9. Describe the Disney mobile CRM effort.

Feedback: IT’s About Business 9.5, p. 276

10. What are the benefits of open-source CRM?

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Feedback: Other Types of CRM, p. 275

11. Why did Tesco’s new way of thinking about its customers draw comparisons with England’s corner grocers of 40 years ago?

Feedback: Chapter closing case, p. 281-282

Cases

1. Camelot Industries Ltd. (CIL) sells card decks, all kinds of them. Playing cards for children and adults, tarot cards (for self-analysis and fortune telling), and a variety of new age cards such as angel cards, dragon cards, sacred geometry cards and native medicine cards. Traditionally, CIL sold only to retail outlets, although they had factory direct sales at their distribution centre every morning.

Last year, CIL created a web site, camelotcards.com, used to sell cards directly to a broader range of retailers and to the general public. To help its existing dealer network, the web site has a location directory, so that individuals can find out where the card deck of their choice is selling in their area. Also, to help its existing dealer network, sales to the general public are accepted only if the individual is buying at least ten decks of cards. Otherwise, the individual is urged to go their nearest new age book or novelty store.

Camelot Industries Ltd. (CIL) has 35,000 retailers around the world that purchase its products. CIL uses functional software to handle its transaction processing for sales to these retailers.

Required: A) What is operational CRM? (1 mark) Feedback: Operational CRM, p. 267 Suggested Solution: - Operational CRM is the component of CRM that supports the front-office business processes, OR - Operational CRM processes are those that directly interact with customers, i.e. sales, marketing and service B) Provide five examples of how CIL could provide customer service and support to its customers. (5 marks) Feedback: Operational CRM, p. 267-268 Suggested Solution: The company could: • Use CIC (customer interaction centres) where organizational employees provide support to customers • Use multiple communication channels such as the web, telephone, fax and face-to-face interactions to support customers

Chapter 9: Customer Relationship Management • • • • •

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Outbound telesales could be used where the sales team and the customer collaborate in discussions of products and services that can satisfy customers needs Customer support staff can answer customer queries, such as queries about products and services Customer support staff can take orders for products or services [Note that this item and the previous one comprise inbound teleservice] Customer support staff can provide an Information Help Desk to respond to customer queries The company could provide automated services, such as automated e-mail replies or live chat

2. Lovely Hands Company (LHC) is a jewelry store that specializes in diamond rings, Rolex watches and precious stone ornaments, such as diamond earrings. LHC’s products start at $500 and go upwards to a few high end items that sell for hundreds of thousands of dollars. The in-store jeweler, a master craftsman, designs products for his customers, and is world-renowned for his original designs.

LHC is considering embedding tiny RFID chips, called the Memory Spot, on the inside of each jewelry item in inconspicuous locations. At a size only slightly larger than the tip of a pencil, the Memory Spot can easily be placed upon products in places where they are difficult to remove without the proper tools. The jeweler would be responsible for embedding and removing these chips. For low-end products (those that sell for less than $2,000), the chips would be permanently installed, while for high-end products they would be removed after customer payment by the jeweler, at the option of the customer.

The Memory Spot does not require a power source, as it uses power from the magnetic field generated by the wireless sensor network or by some wireless devices. The Memory Spot will contain information such as the materials present in the item (e.g. gold, platinum, emerald, or diamond), the item serial number, and its sales price. It will also contain the name and address of the store, and tracking software that can be remotely triggered in the event that the item is stolen. Since the Memory Spot reader must be very close to the item, the inside of the display cases will be fitted with readers, and trigger devices that can be turned on by employees with a foot button in the event of a robbery. The software will also be activated when the store closes at the end of the day, and deactivated when the store opens.

At time of purchase, store equipment will read the Memory Spot, match the information to the customer invoice, and transfer to the Memory Spot the customer’s name and address. In addition to using wireless systems for the Memory Spot, the store’s local area network is also enabled using wireless technology.

Required: Provide five specific examples of customer-touching applications that LHC could use. (5 marks) Feedback: Operational CRM, p. 271-272 Suggested Solution: LHC could provide: [Note that other examples are possible.]

• search and comparison capabilities on its web sites so that consumers can clearly obtain products and know their prices • technical information about its products, such as specifications about watches • customization orders from its web sites; for example particular models of jewelry could be available with different stones • personalized web pages so that consumers can receive suggestions about suitable products based upon products that they have already purchased • FAQs, frequently asked questions about watches or jewelry and precious metals • E-mail Feedback to customer queries • Loyalty programs for frequent customers, perhaps providing a discount after a certain number of purchases

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3. BLOSS is a retailer of jeans and casual clothing. It operates over 180 retail and factory stores in Canada, over 1,000 in-store shops in other retailers, and sells merchandise in over 70 countries worldwide. In order to support its operating activities BLOSS implemented an information system for its suppliers and independent retailers in Canada and 230 other countries called Apparel Buying Network. The company can use the Apparel Buying Network to purchase direct items such as trim, fabric, and finished goods and indirect items such as office and maintenance supplies. Store buyers can order merchandise directly from BLOSS by entering their purchases on a private web site called ApparelBuy.com, which is integrated with the firm’s core order processing system.

BLOSS maintains a public web site for retail customers called BLOSS.com, which offers product catalogues and merchandise ordering on-line. This e-commerce site generates as many sales as one of the BLOSS flagship stores. BLOSS established www.babybloss.com and www.blosskids.com as e-commerce sites for retailing infants’ and children’s clothing and accessories. BLOSS is also using Internet technology to streamline its internal business processes. BLOSSExpress is an internal private network based on internet technology that is used for purchasing from suppliers, reviewing architectural plans for new stores, making travel arrangements, and broadcasting messages to managers about operating instructions and company and industry trends.

Required: A) Describe analytical CRM and explain how BLOSS could use it. (3 marks) Feedback: Analytical CRM, p. 273 Suggested Solution: - Analytical CRM systems analyze customer behaviour and perceptions in order to provide actionable business intelligence - Examples of how BLOSS could use analytical CRM include: [Note that other examples are possible.]

• Analyzing purchase patterns of customers: for example, how many customers purchase both adult and children’s clothing at the same time?

• Determining seasonal purchase patterns, for example, are more children’s clothing purchased before start of school or just before Christmas?

• Comparing the types of purchases made online versus in the stores to help determine what should be advertised on the web site B) What is Mobile CRM? Explain how BLOSS could use mobile CRM. (3 marks) Feedback: Other Types of CRM, p. 275 Suggested Solution: - Mobile CRM is an interactive CRM system that enables an organization to conduct communications related to sales, marketing and customer service activities through a mobile medium - Mobile CRM is used for the purpose of building and maintaining relationships with its customers Examples of how BLOSS could use mobile CRM include: [Note that other examples are possible:] • Have a direction-finder that provides directions on the cell phone to the nearest store • Send SMS (short message service) text messages to people about BLOSS products when they are within range of a store

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 10: Supply Chain Management

True/False

1. Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.

Ans: True Feedback: Chapter Preview, p. 285 Difficulty: Easy

2. To utilize supply chains effectively, a business must become loosely integrated with its suppliers, business partners, distributors and customer.

Ans: False. They must be tightly integrated.

Feedback: Chapter Preview, p. 285 Difficulty: Medium

3. Information systems facilitate the exchange of information among the participants in the supply chain.

Ans: True Feedback: Chapter Preview, p. 285 Difficulty: Easy

4. Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

Ans: False Feedback: The Structure of Supply Chains, p. 285 Difficulty: Easy

5. Sourcing from external suppliers occurs in the upstream portion of the supply chain.

Ans: True Feedback: The Structure of Supply Chains, p. 285 Difficulty: Easy

6. Packaging and assembly take place in the downstream portion of the supply chain.

Ans: False Feedback: Supply Chains Difficulty: Easy

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Chapter 10: Supply Chain Management

7. There are typically four flows in the supply chain: materials, information, returns, and financial.

Ans: False. These are three. Returns does not belong, it is part of reverse logistics.

Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

8. In the chapter opening case, Disney is transitioning from traditional film making to digital film making.

Ans: True Feedback: IT’s About Business 10.1, p. 287 Difficulty: Easy

9. The biggest problem with digital film making is the added time necessary to produce a motion picture.

Ans: False. The biggest problem is the huge amount of data.

Feedback: IT’s About Business 10.1, p. 287 Difficulty: Easy

10. The push model begins with a forecast.

Ans: True Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Easy

11. Whether forecasters overestimate or underestimate demand, the company still faces problems.

Ans: True Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Easy

12. A major source of supply chain uncertainty is the supply forecast.

Ans: False. It is the sales forecast that causes problems.

Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Easy

13. Vertical integration is a business strategy in which a company buys its suppliers.

Ans: True Feedback: Problems along the Supply Chain and their Solutions, p. 290 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

14. The most common solution to supply chain problems is building inventories.

Ans: True Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

15. Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.

Ans: False. They try to minimize inventories.

Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

16. The pull model is make-to-stock.

Ans: False. The pull model is make-to-order.

Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

17. The goal of SCM systems is to reduce friction along the supply chain.

Ans: True Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

18. Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents.

Ans: False. EDI (Electronic Data Interchange) is the relevant communications standard.

Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

19. Unfortunately, electronic data interchange does not help much in reducing paper.

Ans: False. It minimizes paper usage.

Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

20. Electronic data interchange requires only a small initial investment.

Ans: False. It requires a significant investment.

Feedback: Supply Chain Management Systems and Related Technologies, p. 293

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Chapter 10: Supply Chain Management

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Difficulty: Easy

21. Electronic data interchange is a problem for small businesses.

Ans: True Feedback: Supply Chain Management Systems and Related Technologies, p 294 Difficulty: Easy

22. The Internet-based extranet is much less costly than proprietary networks.

Ans: True Feedback: Supply Chain Management Systems and Related Technologies, p. 296 Difficulty: Easy

Multiple Choice

1. Which of the following trends led to the supply chain concept?

A. The increasing complexity of business transactions B. Advanced ability to send information electronically to suppliers C. Relying on an increasing number of suppliers D. Relying on an increasingly diverse group of suppliers Ans: C Feedback: Chapter Preview, p. 285 Difficulty: Medium

2. To utilize supply chains effectively, what relationship should a business have with its suppliers, business partners, distributors and customers?

A. Tightly integrated B. Loosely coupled C. Effectively matched D. Efficiently organized Ans: A Feedback: Chapter Preview, p. 285 Difficulty: Medium

3. One of the most critical aspects of effective supply chain integration is the use of: A. Data communications and the use of EDI (electronic data interchange) B. Information systems to facilitate the exchange of information C. Enterprise resource planning systems to track sales and purchase orders D. Point-of-sales systems to have current data on sales Ans: B

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Chapter Preview, p. 285 Difficulty: Medium

5. The flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end customers is called: A. demand chain B. business process C. manufacturing process D. supply chain Ans: D Feedback: The Structure of Supply Chains, p. 285 Difficulty: Easy

6. Sourcing or procurement from external suppliers occurs in which segment of the supply chain?

A. Upstream B. Internal C. Downstream D. As part of financial information flows Ans: A Feedback: The Structure of Supply Chains, p. 285 Difficulty: Easy

7. A company’s suppliers, suppliers’ suppliers, and the processes for managing them is the: A. suppliers’ chain B. external supply chain C. upstream portion of the supply chain D. downstream portion of the supply chain Ans: C Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

8. Packaging, assembly, or manufacturing take place in which segment of the supply chain?

A. upstream B. internal C. downstream D. external Ans: B Feedback: Structure of Supply Chains, p. 286 Difficulty: Easy

9. Supply chain managers monitor quality levels, production output, and worker productivity. These activities are included in which segment of the supply chain?

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Chapter 10: Supply Chain Management

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A. upstream B. internal C. downstream D. external Ans: B Feedback: Structure of Supply Chains, p. 286 Difficulty: Easy

10. A company’s organization and processes for distributing and delivering products to its final customers is the: A. internal supply chain B. external supply chain C. upstream portion of the supply chain D. downstream portion of the supply chain Ans: D Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

11. Distribution or dispersal takes place in which segment of the supply chain?

A. upstream B. internal C. downstream D. external Ans: C Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

12. Supply chain managers coordinate the receipt of orders from customers, develop a network of warehouses, select carriers to deliver their products to customers, and develop invoicing systems to receive payments from customers. This is which segment of the supply chian?

A. upstream B. internal C. downstream D. financial Ans: C Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

13. The physical products, raw materials, and supplies that flow along a supply chain are called: A. Reverse flows B. Reverse logistics C. Material flows D. Information flows

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

7

Ans: C Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

14. Returned products, recycled products, and disposal of materials or products are called: A. reverse flows B. returns C. material flows D. information flows Ans: A Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

15. Data that are related to demand, shipments, orders, returns, and schedules are part of: A. Reverse flows B. Reverse logistics C. Material flows D. Information flows Ans: D Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

16. Money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data are part of A. Reverse flows B. Reverse logistics C. Material flows D. Financial flows Ans: D Feedback: The Structure of Supply Chains, p. 286 Difficulty: Easy

17. The ability for all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks is called: A. Supply chain visibility B. Horizontal integration C. Vertical integration D. Supply chain intelligence Ans: A Feedback: The Structure of Supply Chains, p. 288 Difficulty: Medium

Chapter 10: Supply Chain Management

18. The time between the receipt of incoming goods and the dispatch of finished, outbound products is called: A. Inventory turnover B. Inventory velocity C. Inventory speed D. Inventory time Ans: B Feedback: The Structure of Supply Chains, p. 288 Difficulty: Easy

19. One major consequence of ineffective supply chains is: A. More available suppliers B. Frequent issue of orders C. A variety of inventory D. Poor customer service Ans: D Feedback: Problems along the Supply Chain and their Solutions, p. 288 Difficulty: Easy

20. Which of the following are the primary two reasons that problems along the supply chain occur?

A. lack of employee training and poor set up of data communications infrastructure B. uncertainties and the need to coordinate several activities, internal units and business partners C. good supply chain visibility but problems with inventory velocity D. demand forecasts that are done too late to affect production schedules Ans: B Feedback: Problems along the Supply Chain and their Solutions, p. 288 Difficulty: Medium

21. The potential problems with demand forecasts are that: A. They can be affected by numerous factors such as weather and technological developments B. Frequent errors in spreadsheet calculations make them unreliable C. The use of inventory velocity in their calculation helps improve the numbers D. Their accuracy usually falls within five to ten percent of what is needed Ans: A Feedback: Problems along the Supply Chain and their Solutions, p. 288-289 Difficulty: Medium

22. One uncertainty that is affected by production machine failures, road construction, and traffic jams is: A. Product quality B. Demand forecast C. Delivery times D. Product shelf life

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

9

Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Hard

23. Quality problems in materials and parts can create: A. Demand forecast issues B. Problems with supply chain visibility C. Changes in technology developments D. Production delays Ans: D Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Medium

24. Erratic shifts in orders up and down the supply chain are called the: A. demand forecast effect B. supply forecast effect C. bullwhip effect D. inventory effect Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

25. The production process begins with a forecast when using the A. supply chain model B. inventory model C. pull model D. push model Ans: A Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Easy

26. The model that is known as make-to-stock is: A. supply chain model B. inventory model C. pull model D. push model Ans: D Feedback: Problems along the Supply Chain and their Solutions , p. 289 Difficulty: Easy

27. The business model of large automobile manufacturers would be best known as which of the following?

Chapter 10: Supply Chain Management

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A. Supply chain model B. Inventory model C. Pull model D. Push model Ans: D. Feedback: Problems along the Supply Chain and their Solutions, p. 289 Difficulty: Easy

28. When using the following process, individual OfficeMax stores purchased goods in minimum quantities, which were determined by the supplier’s minimum-order quantities rather than the store’s needs.

A. direct-to-forecast environment B. direct-to-stock environment C. direct-to-store environment D. direct-to-warehouse environment Ans: C Feedback: IT’s About Business 10.2, p. 290 Difficulty: Medium

29. The strategy of purchasing upstream suppliers, in order to ensure availability of supplies is called: A. Horizontal integration B. Vertical integration C. Just-in-time inventory management D. Supply chain integration Ans: B Feedback: Problems along the Supply Chain and their Solutions, p. 290 Difficulty: Easy

30. The most common solution to supply chain problems is: A. Reducing inventory B. Improving customer service C. Building inventory D. Vertical integration Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Medium

31. A system whose purpose is to arrange for the delivery of the precise number of parts to be assembled into a finished product with the purpose of minimizing inventories is called: A. work-in-progress inventory B. vertical integration C. integrating data communications D. just-in-time inventory Ans: D

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

32. The production process begins with a customer order when using the: A. supply chain model B. inventory model C. pull model D. push model Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

33. The model that is known as make-to-order is also called the: A. supply chain model B. inventory model C. pull model D. push model Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

34. Dell’s business model would be best known as which of the following?

A. Supply chain model B. Inventory model C. Pull model D. Push model Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Easy

35. When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits that data to the company that makes the diapers. When it is necessary, the diaper company restocks the diapers in that Wal-Mart store. This process is called: A. supply chain management B. demand chain management C. vendor-managed inventory D. just-in-time inventory Ans: C Feedback: Problems along the Supply Chain and their Solutions, p. 291 Difficulty: Medium

36. What type of information system is a supply chain management system?

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Chapter 10: Supply Chain Management

A. inter-organizational B. office automation C. artificial intelligence D. executive dashboard Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

37. Which of the following is an advantage of supply chain management systems?

A. Increase the proportion of paper-based transactions B. Decrease the ability to satisfy customers C. Incur excess costs of automating data processing D. Reduce the costs of routine business transactions Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

38. Which of the following is an advantage of supply chain management systems?

A. Increase the proportion of paper-based transactions B. Decrease the ability to satisfy customers C. Incur excess costs of automating data processing D. Improve the quality of information flows Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

39. Which of the following is an advantage of supply chain management systems?

A. Increase the proportion of paper-based transactions B. Decrease the ability to satisfy customers C. Incur excess costs of automating data processing D. Compress the cycle time involved in fulfilling business transactions Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

40. Which of the following is an advantage of supply chain management systems?

A. Increase the proportion of paper-based transactions B. Decrease the ability to satisfy customers C. Incur excess costs of automating data processing D. Eliminate paper processing and its associated costs Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

41. Which of the following is an advantage of supply chain management systems?

A. Increase the proportion of paper-based transactions B. Decrease the ability to satisfy customers C. Incur excess costs of automating data processing D. Make the transfer and processing of information easier for users Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 292 Difficulty: Easy

42. What is the purpose of EDI (Electronic Data Interchange)? It provides A. a communication standard that enables business partners to exchange routine documents B. standards for sending data via the internet C. e-mail protocols used for sending purchase orders and invoices D. a protocol for using electronic funds transfer to make payments Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

43. In addition to the Internet, what is the other common method of using EDI (electronic data interchange)?

A. VPN (virtual private network) B. VAN (value added network) C. PBX (private branch exchange) D. WAN (wide area network) Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Medium

44. What is one of the advantages of EDI? A. It minimizes data entry errors B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

45. What is one of the advantages of EDI? A. Messages are shorter B. High investment costs C. Ongoing operating costs

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Chapter 10: Supply Chain Management

D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

46. What is one of the advantages of EDI? A. Messages are secured B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

47. What is one of the advantages of EDI? A. Reduces cycle time B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

48. What is one of the advantages of EDI? A. Increases productivity B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

49. What is one of the advantages of EDI? A. Enhances customer service B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

50. What is one of the advantages of EDI? A. Minimizes paper usage and storage B. High investment costs C. Ongoing operating costs D. Long start-up period Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

51. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. Involves a significant initial investment C. Improves productivity D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

52. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. Ongoing operating costs are high C. Improves productivity D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

53. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. Traditional EDI is inflexible C. Improves productivity D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

54. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. Requires a long start-up period C. Improves productivity

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Chapter 10: Supply Chain Management

D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

55. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. Business processes may need to be restructured C. Improves productivity D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

56. Which one of the following is a disadvantage of EDI that has prevented it from being more widely used?

A. Minimizes paper usage and storage B. There are many EDI standards C. Improves productivity D. Reduces cycle time Ans: B Feedback: Supply Chain Management Systems and Related Technologies, p. 293 Difficulty: Easy

57. The primary goal of extranets is to do which of the following?

A. foster collaboration between and among business partners B. to provide security for corporate intranets C. to provide effective communications inside corporate intranets D. to enable corporate employees to view inventory information for their companies Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 296 Difficulty: Medium

58. To make communication over the Internet more secure extranets use: A. telepresence B. anti-malware C. virtual private network D. voice-over IP Ans: C Feedback: Supply Chain Management Systems and Related Technologies, p. 296 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

17

59. The FedEx extranet that allows customers to track the status of a package is an example of which type of extranet application?

A. a company and its dealers, customers, and/or suppliers B. an industry’s extranet C. joint venture D. B2B exchange Ans: A Feedback: Supply Chain Management Systems and Related Technologies, p. 296 Difficulty: Medium

60. The Bank of America extranet for commercial loans links lenders, loan brokers, escrow companies, title companies, and others. This is an example of which type of extranet application?

A. a company and its dealers, customers, and/or suppliers B. an industry’s extranet C. B2B exchange D. joint venture Ans: D Feedback: Supply Chain Management Systems and Related Technologies, p. 297 Difficulty: Medium

Short Answer and Discussion Questions

1. Describe the supply chain of your university. Be sure to include all three segments.

Feedback: The Structure of Supply Chains, p. 285-286

2. Describe the three flows along a supply chain.

Feedback: The Structure of Supply Chains, p. 286

3. Describe supply chain visibility and explain why it is important to an organization.

Feedback: The Structure of Supply Chains, p. 288

4. Describe inventory velocity and explain why it is important to an organization.

Feedback: The Structure of Supply Chains, p. 288

Chapter 10: Supply Chain Management

18

5. What is the bullwhip effect?

Feedback: Problems along the Supply Chain and their Solutions, p. 289

6. Differentiate between the pull model and the push model.

Feedback: Problems along the Supply Chain and their Solutions, p. 289-291

7. Describe vertical integration. How does this concept relate to supply chain management?

Feedback: Problems along the Supply Chain and their Solutions, p. 290

8. Describe the various methods that companies use to solve problems along their supply chains.

Feedback: Problems along the Supply Chain and their Solutions, p. 290-291

9. Define EDI and how it works.

Feedback: Supply Chain Management Systems and Related Technologies, p. 293

10. Describe the three main types of extranets.

Feedback: Supply Chain Management Systems and Related Technologies, p. 296-297

Cases

1. Alcoa is a manufacturer of aluminum products. It has three mines around the world, smelters, storage facilities, and manufacturing plants to produce different types of aluminum products sold to distributors and other manufacturing companies. It employs about 2,500 people in fourteen countries, has twelve mainframe computing systems, several server farms, and thousands of desktop computer systems in addition to its manufacturing systems. It reduced inventories by a quarter of a billion dollars in one year, while increasing sales by just under $1 billion. Alcoa did all of this because they implemented new e-business systems for the transmission of documents and funds, using new standards that were common to all locations.

Managing in real time – making decisions now, on the basis of accurate, live information delivered via the Internet and corporate intranets and extranets; producing to actual orders rather than to forecast or budget – these are some of the capabilities of the new systems.

Required:

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

19

A) Describe the three segments of the supply chain. For each segment, provide an example of how it applies to Alcoa. (6 marks) Feedback: The Structure of Supply Chains, p. 285-286 Suggested Solution: [Note that other examples are possible] Description of supply chain segment Upstream: sourcing or procurement from external suppliers occurs

Internal: packaging, assembly, or manufacturing takes place Downstream: distribution takes place

Example of how the segment applies to Alcoa - Alcoa could use the system to compare pricing from multiple suppliers - Determine delivery dates from suppliers and establish a delivery schedule - ore could be sorted into grades for further refining - processed ore could be formed or packaged for shipping - Alcoa receives orders from manufacturing companies who use the ore and readies goods for shipping - manufacturing companies are prioritized with respect to when shipping should occur

B) Describe the three types of flows in the supply chain. For each type of flow, provide an example for Alcoa. (6 marks) Feedback: The Structure of Supply Chains, p. 286 Suggested Solution: [Note that other examples are possible.]

Description of supply chain flows Material flow: physical products, raw materials and supplies that flow along the chain Also includes: Reverse logistics: returned products, recycled products and disposal of materials or products Information flows: data that are related to demand, shipments, orders, returns and schedules, as well as changes in these data Financial flows: involve money transfers, payments, credit cad information and authorization, payment schedules and related data

An example of the flow for Alcoa - raw ore comes from the mine to the smelters - smelters produce a variety of products that are shipped to customers - slag and byproducts of the refining process are disposed of - orders are received from customers - customers provide changes to shipping addresses - customers pay for their products - Alcoa pays its suppliers

2. Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Chapter 10: Supply Chain Management

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Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

Required: A) How could the bullwhip effect affect a car dealership? (3 marks) Feedback: Problems along the Supply Chain and their Solutions, p. 289 Suggested Solution: Definition: The bullwhip effect refers to erratic shifts in orders up and down the supply chain.

How it could affect a car dealership: - the car dealership could overestimate demand and have too many cars on hand - the manufacturing company could produce too many cars and try to pressure the car dealership to take them - too many cars could be produced and held in storage, increasing the cost of the vehicle - this would mean that prices would need to be reduced to sell off excess inventory, reducing profits for the car dealership B) What is the push model (also known as make-to-stock)? Describe the advantages and disadvantages of the push model. (3 marks) Feedback: Problems along the Supply Chain and their Solutions, p. 289 Suggested Solution: Description: In the push model, the production process begins with a demand forecast, which is an educated guess as to what the customer will purchase.

Advantages: - this provides the company with an estimated amount of what should be produced Disadvantages: - the demand forecast is often incorrect, resulting in over or under production - organizations along the supply chain may stock inventory to help prevent stock-out in the event of underproduction, causing the bullwhip effect 3. BLOSS is a retailer of jeans and casual clothing. It operates over 180 retail and factory stores in Canada, over 1,000 in-store shops in other retailers, and sells merchandise in over 70 countries worldwide. In order to support its operating activities BLOSS implemented an information system for its suppliers and independent retailers in Canada and 230 other countries called Apparel Buying Network. The company can use the Apparel Buying Network to purchase direct items such as trim, fabric, and finished goods and indirect items such as office and maintenance supplies. Store buyers can order merchandise directly from BLOSS by entering their purchases on a private web site called ApparelBuy.com, which is integrated with the firm’s core order processing system.

BLOSS maintains a public web site for retail customers called BLOSS.com, which offers product catalogues and merchandise ordering on-line. This e-commerce site generates as many sales as one of the BLOSS flagship stores. BLOSS established www.babybloss.com and www.blosskids.com as e-commerce

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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sites for retailing infants’ and children’s clothing and accessories. BLOSS is also using Internet technology to streamline its internal business processes. BLOSSExpress is an internal private network based on internet technology that is used for purchasing from suppliers, reviewing architectural plans for new stores, making travel arrangements, and broadcasting messages to managers about operating instructions and company and industry trends.

Required: Both BLOSS and its suppliers using the Apparel Buying Network used EDI (electronic data interchange).

What is EDI and what are the advantages and disadvantages to BLOSS of using EDI? (10 marks) Feedback: Supply Chain Management Systems and Related Technologies, p. 293-294 Suggested Solution: Definition: EDI is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically Advantages to BLOSS: - minimizes data entry errors - messages can be shorter - messages are secured - reduces cycle time - increases productivity - enhances customer service - minimizes paper usage and storage Disadvantages to BLOSS: - high ongoing operating costs - inflexible when adapting to new suppliers or multiple standards - company may need to change business processes to fit EDI requirements - many standards increase costs

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Chapter 11: Managerial Support Systems

True/False

1. The ratio between organizational inputs and outputs is an indication of the organization’s productivity.

Ans: True Feedback: Managers and Decision Making, p. 305 Difficulty: Easy

2. A manager’s primary role is strategic planning.

Ans: False. Managers have three basic roles: interpersonal, informational and decisional.

Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

3. Modern information systems support all three managerial roles.

Ans: True Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

4. In the implementation phase of the decision-making process, managers set criteria for the evaluation of alternative potential solutions.

Ans: False. Criteria is set during the design phase.

Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

5. In the choice phase of the decision-making process, managers construct a model that simplifies the problem.

Ans: False. The choice phase involves selecting a solution.

Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

6. The number of alternatives to be considered in decisions today is increasing.

Ans: True Feedback: Managers and Decision Making, p. 307 Difficulty: Easy

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Chapter 11: Managerial Support Systems

7. Structured decisions address routine, repetitive problems for which standard solutions exist.

Ans: True Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

8. Human intuition often plays a role in making unstructured decisions.

Ans: True Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

9. Unstructured decisions require a combination of standard solution procedures and individual judgment.

Ans: False. This describes semi-structured problems.

Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

10. Management control is the acquisition and efficient use of resources in accomplishing organizational goals.

Ans: True Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

11. Targeted marketing is a good example of discovery of previously unknown patterns.

Ans: False. Targeted marketing can occur once detailed customer demographics are analyzed, which is what business intelligence can accomplish.

Feedback: Business Intelligence, p. 314 Difficulty: Easy

12. A group decision support system is an interactive, computer-based system that facilitates a group’s efforts to find solutions to semistructured and unstructured problems.

Ans: True Feedback: Business Intelligence, p. 314 Difficulty: Easy

13. Decision support systems support only lower and middle level managers.

Ans: False

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Business Intelligence p. 314 Difficulty: Easy

14. Goal-seeking analysis attempts to find the value of the inputs necessary to achieve a desired level of output.

Ans: True Feedback: Business Intelligence, p. 315 Difficulty: Easy

15. Executive dashboards provide support primarily to analytical, quantitative types of decisions.

Ans: False. They focus on information needs of top executives.

Feedback: Business Intelligence, p. 315 Difficulty: Easy

16. An executive dashboard is very user friendly, supported by graphics; it provides exception reporting and drill down, and provides information related to critical success factors.

Ans: True Feedback: Business Intelligence, p. 315 Difficulty: Easy

17. The management cockpit room contains an elaborate set of digital dashboards that enable low-level managers to better pilot the business.

Ans: False. It is for top-level decision makers.

Feedback: Business Intelligence, p. 317 Difficulty: Easy

18. Artificial intelligence is perishable, whereas natural intelligence is permanent from an organizational point of view.

Ans: False. These should be reversed.

Feedback: Intelligent Systems, p. 321, Table 11.3 Difficulty: Easy

19. It is difficult to document the knowledge in artificial intelligence systems, but easy to document the knowledge of natural intelligence.

Ans: False. These should be reversed.

Feedback: Intelligent Systems, p. 321, Table 11.3 Difficulty: Easy

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Chapter 11: Managerial Support Systems

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20. Expertise refers to the extensive, task-specific knowledge acquired from training, reading, and experience.

Ans: True Feedback: Intelligent Systems, p. 322 Difficulty: Easy

21. Expert systems attempt to mimic human experts by applying expertise in a specific domain.

Ans: True Feedback: Intelligent Systems, p. 322 Difficulty: Easy

Multiple Choice

1. The business intelligence system at Blue Mountain was used to: A. Conduct analysis using spreadsheet software B. Hold historical data and current data for thorough analysis C. Collect data for manual reporting systems D. Provide data to disparate financial systems Ans: B Feedback: Chapter Opening Case, p. 304 Difficulty: Medium

2. The process by which organizational goals are achieved through the use of organizational resources best describes: A. Organizational decision making B. Operations C. Organizational strategy D. Management Ans: D Feedback: Managers and Decision Making, p. 305 Difficulty: Easy

3. How is a manager’s success often measured? By: A. Looking at the amount that they earn (i.e. their salary) B. Considering how frequently he or she is promoted C. Examining how frequently jobs are changed D. The ratio between inputs and outputs for which he or she is responsible Ans: D Feedback: Managers and Decision Making, p. 305

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Difficulty: Easy

4. Being a figurehead and leader is part of which managerial role?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: A Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

5. Today Joe was responsible for representing the company at an important meeting, where he led discussions about a new product. He also coordinated work between his employees at different locations, liaising the communications. What type of roles did Joe perform today?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: A Feedback: Managers and Decision Making, p. 306 Difficulty: Hard

6. A manager who performs the roles of monitor, disseminator, spokesperson or analyzer is performing what type of role?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: C Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

7. This week Lucy carefully supervised the completion of a major project, monitoring the quality of the work of her staff. She also disseminated the results of the project to her superiors by writing a report, and analyzed the costs to see whether the project was on budget. What type of role was Nancy performing this week?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: C Feedback: Managers and Decision Making, p. 306 Difficulty: Medium

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Chapter 11: Managerial Support Systems

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8. Being an entrepreneur, disturbance handler, and negotiator is part of which managerial role?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: D Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

9. This month Chang created a new division at the organization, handled conflicts among his employees, decided how the company’s budget would be allocated among departments and divisions, and also negotiated a new contract with a major supplier. What role was Chang performing this month?

A. interpersonal B. entrepreneurial C. informational D. decisional Ans: D Feedback: Managers and Decision Making, p. 306 Difficulty: Medium

10. When individuals and groups make a choice among two or more alternatives they are completing a: A. Development B. Decision C. Project D. Support system Ans: B Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

11. Herbert Simon proposed that decision making was a systematic process that has three major phases.

What are these phases?

A. Data collection, design and choice B. Intelligence, design and choice C. Intelligence, setting criteria, choice D. Data collection, setting criteria, sensitivity analysis Ans: B Feedback: Managers and Decision Making, p. 306 Difficulty: Hard

12. In which phase of the decision-making process do managers examine a situation and identify and define the problem?

A. implementation

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. choice C. design D. intelligence Ans: D Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

13. Managers at all levels acquire vital information to make decisions. With Simon’s model, this task is accomplished in the A. design phase B. implementation phase C. choice phase D. intelligence phase Ans: D Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

14. During which phase of Simon’s decision-making model do managers classify the problem and provide a clear problem statement?

B. implementation phase C. choice phase D. intelligence phase Ans: D Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

15. In which phase of the decision-making process do managers construct a model that simplifies the problem?

A. implementation B. choice C. design D. intelligence Ans: C Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

16. In which phase of Simon’s decision-making model do managers set criteria and search for alternatives?

A. implementation B. choice C. design D. intelligence Ans: C Feedback: Managers and Decision Making, p. 306

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Chapter 11: Managerial Support Systems

Difficulty: Medium

17. In which phase of the decision-making process do managers test potential solutions “on paper?”

A. implementation B. choice C. design D. intelligence Ans: B Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

18. In which phase of Simon’s decision-making model do managers conduct sensitivity analysis?

A. implementation B. choice C. design D. intelligence Ans: B Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

19. In which phase of Simon’s decision-making model do managers design a control system associated with the decision?

A. implementation B. choice C. design D. intelligence Ans: B Feedback: Managers and Decision Making, p. 306 Difficulty: Easy

20. Success in which phase of the decision-making process results in resolving the original problem, while failure leads to a return to previous phases.

A. implementation B. choice C. design D. intelligence Ans: A Feedback: Managers and Decision Making, p. 270–273 Difficulty: Easy

21. Which of the following trends is making it increasingly difficult for managers to make decisions?

A. The number of alternatives to be considered is constantly changing

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. More time is available to make decisions, to enable using more information C. The number of alternatives to be considered is constantly increasing D. Decisions are simpler, although considering many different variables Ans: C Feedback: Managers and Decision Making, p. 307 Difficulty: Hard

22. Which of the following trends is making it increasingly difficult for managers to make decisions?

A. The number of alternatives to be considered is constantly changing B. More time is available to make decisions, to enable using more information C. Decisions are being made under time pressure, making it difficult to process information D. Decisions are simpler, although considering many different variables Ans: C Feedback: Managers and Decision Making, p. 307 Difficulty: Hard

23. Which of the following trends is making it increasingly difficult for managers to make decisions?

A. The number of alternatives to be considered is constantly changing B. More time is available to make decisions, to enable using more information C. Increased uncertainty requires the use of sophisticated analysis to make a good decision D. Decisions are simpler, although considering many different variables Ans: C Feedback: Managers and Decision Making, p. 307 Difficulty: Hard

24. To support a structured decision such as how to order inventory, which type of information systems support is required?

A. Management information system (MIS) B. Decision support system (DSS) C. Expert system (ES) D. Office automation system (OAS) Ans: A Feedback: Managers and Decision Making, p. 308 Difficulty: Hard

25. To support a structured decision such as identifying which accounts receivable need collection followup, which type of information systems support is required?

A. Management information system (MIS) B. Decision support system (DSS) C. Expert system (ES) D. Office automation system (OAS) Ans: A Feedback: Managers and Decision Making, p. 308

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Chapter 11: Managerial Support Systems

Difficulty: Hard

26. To support a semi-structured decision such as how much credit to give to a new customer, which type of information systems support is required?

A. Management information system (MIS) B. Decision support system (DSS) C. Expert system (ES) D. Office automation system (OAS) Ans: B Feedback: Managers and Decision Making, p. 308 Difficulty: Hard

27. To support a semi-structured decision such as how to schedule jobs for a development project, which type of information systems support is required?

A. Management information system (MIS) B. Decision support system (DSS) C. Expert system (ES) D. Office automation system (OAS) Ans: B Feedback: Managers and Decision Making, p. 308 Difficulty: Hard

28. To support an unstructured decision such as buying new software, which type of information systems support is required?

A. Management information system (MIS) B. Transaction processing system (TPS) C. Decision support system (DSS) D. Office automation system (OAS) Ans: C Feedback: Managers and Decision Making, p. 308 Difficulty: Hard

29. To support an unstructured decision such as research and development planning, which type of information systems support is required?

A. Management information system (MIS) B. Decision support system (DSS) C. Expert system (ES) D. Office automation system (OAS) Ans: C Feedback: Managers and Decision Making, p. 308 Difficulty: Hard

10

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

30. The type of decision that can be made by following a definite procedure is called a(n) A. structured decision B. unstructured decision C. undocumented decision D. semistructured decision Ans: A Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

31. When there is no well-understood or agreed-on procedure for making a decision, it is said to be A. undocumented B. structured C. unstructured D. semistructured Ans: C Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

32. If an international automotive company is considering where to build a new manufacturing plant in Canada, their executives were making which type of decision?

A. structured B. semistructured C. unstructured D. informational Ans: C Feedback: Managers and Decision Making, p. 309 Difficulty: Medium

33. Which type of decision requires a combination of standard solution procedures and individual judgment?

A. structured B. semistructured C. unstructured D. informational Ans: B Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

34. Annual evaluation of employees best fits which type of decision?

A. unstructured B. structured C. semistructured D. confrontational

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Chapter 11: Managerial Support Systems

Ans: C Feedback: Managers and Decision Making, p. 309 Difficulty: Medium

35. The efficient and effective execution of specific tasks is called: A. Operational control B. Management control C. Strategic planning D. Expertise E. Wisdom Ans: A Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

36. The acquisition and efficient use of resources in accomplishing organizational goals is called: A. Operational control B. Management control C. Strategic planning D. Expertise Ans: B Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

37. These types of decisions are more common at lower organizational levels.

A. Structured B. Unstructured C. Undocumented D. Semistructured Ans: A Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

38. These types of decisions are most common at higher levels of management.

A. Structured B. Unstructured C. Undocumented D. Semistructured Ans: B Feedback: Managers and Decision Making, p. 309 Difficulty: Easy

39. Computer support is greatest for which of the following problems?

12

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

A. Semistructured and strategic planning B. Unstructured and operational control C. Structured and operational control D. Semistructured and management control Ans: C Feedback: Managers and Decision Making, p. 310 Difficulty: Easy

40. Calculating gross pay for hourly workers falls into which category of decision making?

A. Structured B. Unstructured C. Undocumented D. Semistructured Ans: A Feedback: Managers and Decision Making, p. 310 Difficulty: Medium

41. When an organization performs complex multi-dimensional analysis of data stored in a database or data warehouse, this is called: A. Decision processing B. Decision analysis C. Cubic analysis D. Online analytical processing Ans: D Feedback: Business Intelligence, p. 312 Difficulty: Easy

42. Searching for valuable business information in a database, data warehouse, or data mart refers to : A. structured queries B. database queries C. data mining D. query by example Ans: C Feedback: Business Intelligence p. 313 Difficulty: Easy

43. Credit card companies would most likely use which of the following to forecast levels of fraudulent credit card use?

A. Data mining B. Expert systems C. Neural networks D. Multidimensional data analysis Ans: A

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Chapter 11: Managerial Support Systems

14

Feedback: Business Intelligence, p. 314 Difficulty: Medium

44. A company wants to use data from past promotional mailings to identify people who would likely respond favorably to future mailings. This company would most likely use A. structured query language B. multidimensional data analysis C. neural networks D. data mining Ans: D Feedback: Business Intelligence, p. 314 Difficulty: Medium

45. The study of the impact that changes in one (or more) parts of a model would have on other parts of the model is: A. drill-down B. sensitivity analysis C. forecasting D. goal-seeking Ans: B Feedback: Business Intelligence, p. 314 Difficulty: Medium

46. Which of the following attempts to find the value of the inputs necessary to achieve a desired level of output?

A. What-if analysis B. Statistical analysis C. Sensitivity analysis D. Goal-seeking analysis Ans: D Feedback: Business Intelligence, p. 315 Difficulty: Easy

47. A model that helps find the inputs necessary to achieve a goal, such as a desired level of output, is called: A drill-down B. sensitivity analysis C. goal-seeking analysis D. what-if analysis Ans: D Feedback: Business Intelligence, p. 315 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

48. Which of the following provides rapid access to timely information and direct access to management reports?

A. decision support system B. expert system C. neural network D. digital dashboard Ans: D Feedback: Business Intelligence, p. 315 Difficulty: Easy

49. Which of the following information systems are supported by graphics and provide exception reporting and drill down?

A. Decision support systems B. Digital dashboards C. Functional area information systems D. Group decision support systems Ans: B Feedback: Business Intelligence, p. 315 Difficulty: Easy

50. What is meant by drill-down capability?

A. the ability to look at information from different perspectives B. the ability to go to details at several levels C. the ability the aggregate information and feature simple roll-ups to complex groupings of interrelated information D. short, medium and long term trends of KPI or some other metric, which are projected using forecasting methods Ans: B Feedback: Business Intelligence, p. 315 Difficulty: Medium

51. A key performance indicator is used to calculate specific measures of: A. Critical success factors B. Trend analysis C. Adhoc analysis D. Exception reporting Ans: A Feedback: Business Intelligence, p. 315 Difficulty: Hard

52. Which capability of digital dashboards enables users to obtain the latest data available on key performance indicators or some other metric, ideally in real time?

A. Drill down

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B. Key performance indicators C. Status access D. Trend analysis E. Exception reporting Ans: C Feedback: Digital Dashboards, p. 279–281 Difficulty: Easy

53. Analyses made any time, upon demand and with any desired factors and relationships are called: A. Critical success factors B. Trend analysis C. Adhoc analysis D. Exception reporting Ans: C Feedback: Business Intelligence, p. 315 Difficulty: Medium

54. Reports that highlight deviations larger than certain thresholds or may include only deviations are called: A. Critical success factors B. Trend analysis C. Adhoc analysis D. Exception reporting Ans: D Feedback: Business Intelligence, p. 315 Difficulty: Medium

55. The management cockpit is an application of which type of system?

A. Decision support system B. Expert system C. Digital dashboard D. Functional area information system Ans: C Feedback: Business Intelligence, p. 317 Difficulty: Medium

56. The most distinguishing characteristic of geographical information systems is that every record or digital object A. has a unique identifier B. is visible to the user C. must be accessed by programmers D. has an identified geographical location Ans: D

16

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Feedback: Data Visualization Technologies, p. 317 Difficulty: Medium

57. Geocoding is A. integrating maps with spatially oriented databases and other databases B. encrypting spatial information C. accessing geographical information D. integrating organizational transactions with spatially oriented databases Ans: A Feedback: Data Visualization Technologies, p. 318 Difficulty: Medium

58. When comparing the capabilities of natural vs. artificial intelligence with respect to the preservation of knowledge: A. Natural intelligence is permanent, while artificial intelligence is perishable from an organizational point of view B. Artificial intelligence is permanent, while natural intelligence is perishable from an organizational point of view C. There is no difference between artificial and natural intelligence for this characteristic D. The cost of storing artificial intelligence is very high compared to natural intelligence Ans: B Feedback: Intelligent Systems, p. 321 Difficulty: Hard

59. When comparing the capabilities of natural vs. artificial intelligence with respect to duplication and dissemination of knowledge: A. Artificial intelligence is expensive and takes time to duplicate and disseminate B. Natural intelligence is easier and faster to disseminate since it is consistent C. Natural intelligence must be interpreted quickly while artificial intelligence is slower D. Natural intelligence is difficult and takes time ro duplicate, while artificial intelligence is fast and easy Ans: D Feedback: Intelligent Systems, p. 321 Difficulty: Medium

60. When comparing the capabilities of natural vs. artificial intelligence with respect to total cost of knowledge: A. Natural intelligence can be erratic and inconsistent, incomplete at times B. Natural intelligence is low cost and has better quality C. Artificial intelligence is always of high quality and stays that way D. Artificial intelligence is direct and rich in possibilities Ans: A Feedback: Intelligent Systems, p. 321 Difficulty: Hard

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18

61. When comparing the capabilities of natural vs. artificial intelligence with respect to documentability of process and knowledge: A. Natural intelligence requires a structured process and well trained staff B. Artificial intelligence is difficult and expensive C. Natural intelligence can be the most costly D. Natural intelligence is difficult and expensive Ans: D Feedback: Intelligent Systems, p. 321 Difficulty: Hard

62. When comparing the capabilities of natural vs. artificial intelligence with respect to creativity: A. Natural intelligence can be very high B. Artificial intelligence can be very high C. Natural intelligence is low and uninspired D. Artificial intelligence is fast and easy to explain Ans: A Feedback: Intelligent Systems, p. 321 Difficulty: Hard

63. When comparing the capabilities of natural vs. artificial intelligence with respect to use of sensory experiences: A. Natural intelligence must be interpreted first and is limited B. Artificial intelligence must be interpreted first and is limited C. Artificial intelligence is direct and rich in possibilities D. Natural intelligence is good only in narrow, focused and stable domains Ans: B Feedback: Intelligent Systems, p. 321 Difficulty: Hard

64. Expert systems A. solve problems too difficult for human experts B. are based on procedural computer programming languages C. work in specific domains D. can apply to any business problem Ans: C Feedback: Intelligent Systems, p. 322 Difficulty: Medium

65. Computer reasoning that deals with uncertainties by simulating the process of human reasoning is called: A. Expert systems B. Artificial neural networks

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Speech understanding systems D. Fuzzy logic Ans: D Feedback: Intelligent Systems, p. 326 Difficulty: Medium

Short Answer and Discussion Questions

1. Describe the three major roles of managers.

Feedback: Managers and Decision Making, p. 306

2. Describe why managers need IT support.

Feedback: Managers and Decision Making, p. 307

3. Discuss information technologies that are available to support managers.

Feedback: Managers and Decision Making and Business Intelligence, p. 308-317

4. Discuss the structure of problems, the nature of decisions, and the framework for computerized decision analysis.

Feedback: Managers and Decision Making, p. 308-310

5. Describe data mining and provide examples of its application in organizations.

Feedback: Business Intelligence, p. 313-314

6. Compare and contrast decision support systems and expert systems.

Feedback: Business Intelligence, and Intelligent Systems, p. 314-315, 322-323

7. Compare and contrast decision support systems and dashboards.

Feedback: Business Intelligence, p. 314-317

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20

8. Provide examples of the uses of virtual reality and describe how it can benefit organizations.

Feedback: Data Visualization Technologies, p. 313-314

9. Define expert systems and describe their components, benefits, and limitations.

Feedback: Intelligent Systems, p. 322-323

10. Describe neural networks and fuzzy logic.

Feedback: Intelligent Systems, p. 324-326

11. Compare and contrast fuzzy logic and neural networks.

Feedback: Intelligent Systems, p. 324-326

Cases

1. Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

A) A dealership owner has many different types of roles throughout the day when conducting his work.

List and describe the three basic roles of managers (described by Mintzberg). For each of the three basic roles, describe an example of how the dealership owner would perform these roles with his or her employees. (6 marks) Feedback: Managers and Decision Making, p. 306 Suggested Solution: [Note: Other examples are possible.]

List and describe basic role Interpersonal role: includes figurehead, leader, liaison Informational role: includes monitor, disseminator, spokesperson, arbitrator

Example of role in flower shop The owner decides which vehicles to order and display on the dealership floor.

The owner supervises employees, to make sure that they are knowledgeable of vehicles and know how to

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Decisional role: includes entrepreneur, disturbance handler, resource allocator, negotiator

effectively answer customer queries.

The owner negotiates with suppliers to obtain a good price for parts or office supplies.

B) The car manufacturer uses software called digital dashboards (also called an executive dashboard or management cockpit) to monitor warranty claims on cars. Identify and provide examples of three capabilities of digital dashboard software that would be useful to a car manufacturer in monitoring warranty claims. (3 marks) Feedback: Business Intelligence, Table 11.1, p. 315 Suggested Solution: [Note: other examples are possible.]

Capability Drill down

Critical success factor (CSF)

Key performance indicator (KPI)

Status access

Trend analysis

Ad hoc analysis

Exception reporting

Examples of the capabilities of digital dashboard software that would be useful to a car manufacturer Warranty claims can be reviewed in detail and at several levels to determine: • what types of claims are made most frequently • what are the major reasons for claims • which makes and models have the highest claims • which groups of customers are most likely to make claims Factors that are critical to the success of the business can be calculated: • which warranty products are the most profitable (highest sales compared to least claims) • which dealerships are responsible for the most claims • which makes and models of cars have the most problems KPIs allow dealerships to calculate specific measures of CSFs: • number of warranties sold/ number of cars sold • % of claims made by the dealership over total number of claims for all dealerships • % of claims by problem or issue type, e.g. sticking gas pedal % of claims by car make and model Provide the latest data on KPIs or other metrics, ideally in real time: • Monitoring in real time of issues logged by dealerships, and claims related to, sticking gas pedals (or other high severity issue) • Warranty sales versus budget • Warranty claims versus forecast/ budget Short, medium and long term trending of KPIs or other metrics: • Warranty claim trends over time • Warranty reimbursement costs over time • Trends by make and model to track progress made to address manufacturing defects • Tracking of high severity issues against a zero tolerance target Analyses conducted on as needed basis: • Reasons for rise in warranty claims • Relationship of claims to car make and model, e.g. sticking gas pedal and hybrid cars • Number of claims after a recall announcement Reporting of deviations larger than expected thresholds: • Number of claims above a certain dollar amount, e.g. $5,000 • % of claims +/- 5% of last year’s total claims

2. Ogly Company produces baking and cooking equipment that is sold around the world and used by restaurants and bakeries. In addition, it produces parts that are sold to distributors who maintain and service

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22

the many different types of ovens and fryers. Some distributors are also authorized sales representatives who sell Ogly products.

Ogly sells a large variety of parts by means of its inter-organizational information system (IOS), based upon an extranet. The company web site lists products and their prices. Distributors order the products via the extranet, can check the status of their order and also make payments via the secure services offered.

Ogly also has a public portion to its web site, which can be searched by the general public. On these web pages, individuals and organizations can locate the distributor nearest them to help them service their existing baking and cooking equipment or buy new equipment. If a customer wants to sell used equipment, they can take it to a distributor, who will have it listed on the Ogly web site for resale.

Ogly’s web site is friendly to small processors (such as personal digital assistants and smart phones). This means that both a full version of the web site is available, as well as a less-memory intensive version that can be used on hand-held devices.

A) Provide three examples of how Ogly Company could use data mining. (3 marks) Feedback: Business Intelligence, p. 313-314 Suggested Solution: [Note: other examples are possible.]

• • • • • • • •

Predicting trends and customer behaviours – what customers buy, when, why, also profile types of customers high sales and low sales Identifying previously unknown patterns – where customers are located – weather patterns with product sales, seasonal items, Target marketing –what customers have purchased in the past – they may need to purchase replacements, new customers – increase sales by giving step up discounts or coupons to infrequent customers sales predictions, theft and fraud prevention, prediction of inventory levels and future sales for purchasing larger and time purchases from OGLY suppliers, Staffing levels for warehouses, customer service support and service department for repairs.

Manufacturing and Production – predicting machinery failures, capacity planning Insurance/warrantees – forecasting claims, employee benefits, medical coverage, predicting which customers will purchase warranty for equipment – and service plans Marketing – Classifying customer demographics for expansion in foreign and current markets, who to mail or email to for special offers, development of new products and prediction of who will purchase it and at what price.

3. Insurance companies and credit card providers are concerned with preventing fraud and theft. To do so, they often use advanced information systems.

Insurance companies are diversified companies that sell a wide variety of products. Often, they discontinue products and then decide to add new ones. For example, individuals may be subject to mortgage fraud, where an individual may have identity theft occur and an unauthorized mortgage is placed against his/her property. To help protect individuals, some insurance companies are starting to sell title insurance. The insurance would cover the costs associated with the individual removing the unauthorized mortgage from his/her records.

A) For each of the following intelligent systems listed in the text, describe how the intelligent system functions, and explain how an insurance company could use the system to prevent or detect fraud.

(4 marks)

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Expert system Neural network Feedback: Intelligent Systems, p. 322-323, 324-325 Suggested Solution: [Note: other examples are possible.]

Intelligent system description

How an insurance company could use the system to prevent or detect fraud - The company could load into the system past fraudulent transactions, and the characteristics of those transactions.

- An exception reporting system could be used to identify large transactions and have the expert system indicate whether they might be fraudulent transactions.

-would be very good at examining past patterns of transactions by customer to determine whether there are any transactions that appear to be fraudulent.

Expert system: - An expert system learns from experience - designed to mimic human experts by applying expertise in a specific domain

Neural network: - Neural networks are programmed to learn from past history, - a system of programs and data structures that stimulate the underlying concepts of the human brain

B) Insurance Company is thinking of offering title insurance as one of its products.

Describe the three phases of Simon’s decision making model (intelligence, design and choice). For each of these three phases, provide an example of how information systems could be used during the phase to help the insurance company decide whether or not it should offer title insurance as one of its products. (6 marks) Feedback: Managers and Decision Making, p. 305-307 Suggested Solution: [Note: other examples are possible.]

Phase of decision making model

Intelligence phase, in which managers examine a situation and identify and define the problem

Design phase, decision makers construct a model that simplifies the problem. They do this by making assumptions that simplify reality and by expressing the relationships among all the relevant

How an insurance company could use the information system to decide whether it should offer title insurance - consider how much the company charges for its current products, and how much it might charge for the new product (use cost data from existing TPS) - gather information about what other insurance companies are charging for this information (use search engines) - examine profits for each of the existing insurance products (perhaps having gross margin reports from an MIS) - gather information about how much it costs people to clear their accounts if a false mortgage is placed on their property and record in a spreadsheet - use a spreadsheet to incorporate costs and revenue to see if this would be profitable

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variables. Managers then validate the model by using test data. Finally, decision makers set criteria for evaluating all potential solutions that are proposed.

Choice phase involves selecting a solution, which is tested “on paper.”

24

- use simulation functions in spreadsheets to consider different cost and profit scenarios

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

1

Chapter 12: Acquiring Information Systems and Applications

True/False

1. Organizations typically move slowly to acquire new information technologies due to the risks involved.

Ans: False Feedback: Chapter previews, p. 335 Difficulty: Easy

2. Decisions and approvals required throughout projects are called milestones.

Ans: True Feedback: Information Technology Project Management, p. 337 Difficulty: Easy

3. The second phase in the management of a process is to clearly define the problem.

Ans: False. This is the first phase.

Feedback: Information Technology Project Management, p. 337 Difficulty: Easy

4. The Purpose of project monitoring and control is to determine whether a project is progressing as planned.

Ans: True Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

5. Costs are harder to quantify than benefits.

Ans: False. Benefits are harder to quantify.

Feedback: Justifying IT Applications, p. 339 Difficulty: Easy

6. The return on investment (ROI) method of cost-benefit analysis measures the effectiveness of management in generating profits with its available assets.

Ans: True Feedback: Justifying IT Applications, p. 340 Difficulty: Easy

Chapter 12: Acquiring Information Systems and Applications

2

7. The buy option for applications is particularly attractive if the software vendor allows the company to modify the package to meet its needs.

Ans: True Feedback: Strategies for Acquiring IT Applications, p. 340 Difficulty: Easy

8. Acquiring IT applications from outside contractors or external organizations is known as outsourcing.

Ans: True Feedback: Strategies for Acquiring IT Applications, p. 343 Difficulty: Easy

9. Insourcing application development (building applications inhouse) is usually less time consuming and less expensive than buying or leasing.

Ans: False. It is more expensive.

Feedback: Strategies for Acquiring IT Applications, p. 344 Difficulty: Easy

10. The SDLC is relatively inflexible.

Ans: True Feedback: The Traditional Systems Development Life Cycle, p. 344-345 Difficulty: Easy

11. Technical feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project.

Ans: False. The above describes economic feasibility.

Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

12. Systems analysis describes how a system will solve the business problem.

Ans: False. This is the purpose of systems design.

Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

13. The SDLC encourages changes to user requirements once they have been established.

Ans: False. Once requirements or specifications are agreed upon, they are frozen.

Feedback: The Traditional Systems Development Life Cycle, p. 347

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3

Difficulty: Easy

14. Writing computer code is as much art as it is science.

Ans: True Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

15. Programming and testing teams often include users.

Ans: True Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

16. Pilot conversion is the process where the new system is introduced in one part of the organization.

Ans: True Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

17. Maintenance ends when the new system is implemented and has run long enough for a systems audit.

Ans: False. Maintenance continues for the life of the software.

Feedback: The Traditional Systems Development Life Cycle, p. 349 Difficulty: Easy

18. Prototyping allows the users to clarify their information requirements as they use the prototype.

Ans: True Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Easy

19. The most difficult task in evaluating a vendor and software package is to determine the financial health and “staying power” of the vendor.

Ans: False. It is the most difficult to select a detailed set of evaluation criteria.

Feedback: Vendor and Software Selection, p. 354 Difficulty: Easy

Multiple Choice

Chapter 12: Acquiring Information Systems and Applications

4

1. To obtain better control of its information systems, The Leukemia and Lymphoma Society decided to select which method of implementation?

A. Service-oriented architecture (SOA) B. Application service provider (ASP) C. Prototyping D. Rapid application development (RAD) Ans: A Feedback: Chapter Opening Case, p. 334 Difficulty: hard

2. What were the advantages to The Leukemia and Lymphoma Society of bringing its information systems developed inhouse?

A. Software processes were significantly simplified B. Website performance and user satisfaction improved C. Hardware performance was modified and custom tailored D. Donation costs increased Ans: B Feedback: Chapter Opening Case, p. 334 Difficulty: hard

3. What is the description of a project?

A. Efforts to achieve organizational goals B. Matching of organization objectives with operational tasks C. Short-term efforts to create a specific business-related outcome D. Clearly define problems that need to be solved Ans: C Feedback: Information Technology Project Management, p. 336 Difficulty: Medium

4. A directed effort to plan, organize and manage resources to bring about the successful achievement of specific IS goals is known as: A. IS project planning B. IS project initiation C. The project management process D. IS project management Ans: D Feedback: Information Technology Project Management, p. 336 Difficulty: Hard 5. The triple constraints of project management are: A. time, cost and effort B. time, cost and scope C. cost, scope and approvals

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

5

D. cost, scope and planning Ans: B Feedback: Information Technology Project Management, p. 336 Difficulty: Medium

6. With respect to the constraints of project management, time refers to: A. The window of opportunity in which a project must be completed to provide a benefit to the organization B. Budgeted times and costs allocated to the project (i.e. programming resources) C. Length of time allocated to complete the project, from initiation to completed implementation D. Time required for approval of the idea by the information systems steering committee Ans: A Feedback: Information Technology Project Management, p. 336 Difficulty: Hard

7. With respect to the constraints of project management, cost refers to the: A. Amount spent by the organization in purchasing a software package from an outsourcing organization B. Amount spent by the organization to program the software if it is developed internally C. Actual amount of resources, including cash and labour, that an organization can commit to completing a project D. Total estimated costs of hardware used for the infrastructure of the project Ans: C Feedback: Information Technology Project Management, p. 336 Difficulty: Hard

8. With respect to the constraints of project management, scope refers to: A. The breadth of the initial specifications of the project B. Processes used to finalize the contract for development of the project C. The depth of detail required when preparing record information details D. Processes used to ensure that all and only required work is completed Ans: D Feedback: Information Technology Project Management, p. 336 Difficulty: Hard

9. When projects have decisions and approvals required frequently throughout the project, these are called: A. effective authorizations B. project milestones C. rapid decisions D. active involvement Ans: B Feedback: Information Technology Project Management, p. 337 Difficulty: Easy

Chapter 12: Acquiring Information Systems and Applications

6

10. The phase of the project management process that clearly defines the problem that the project is intended to solve and the goals that it is intended to achieve is called: A. project planning B. project milestone C. project initiation D. project execution Ans: C Feedback: Information Technology Project Management, p. 337 Difficulty: Easy

11. In which phase of the project management process does the organization identify and secure the resources needed for the project, analyze the costs and benefits of the project, and identify potential risks?

A. project planning B. project completion C. project initiation D. project execution Ans: C Feedback: Information Technology Project Management, p. 337 Difficulty: Easy

12. The phase of the project management process that has every project objective and every activity associated with that objective identified and sequenced is called: A. project planning B. project milestone C. project initiation D. project execution Ans: A Feedback: Information Technology Project Management, p. 337 Difficulty: Medium

13. During which phase of the project management process would developers use tools such as a timeline diagram called the Gantt chart?

A. project planning B. project completion C. project initiation D. project execution Ans: A Feedback: Information Technology Project Management, p. 337 Difficulty: Medium

14. During which phase of the project management process is the work defined in the project management plan performed to accomplish the project’s requirements?

A. project planning B. project completion

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

7

C. project initiation D. project execution Ans: D Feedback: Information Technology Project Management, p. 338 Difficulty: Medium

15. Which of the following is a reason that an IT (information technology) project fails to achieve its desired results?

A. Provision of just the amount of resources B. Lack of sufficient planning at the start of the project C. Implementing all the work, and only the work that is required D. Careful definition of what is and is not included in the project Ans: B Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

16. Which of the following is a reason that an IT (information technology) project fails to achieve its desired results?

A. Provision of just the amount of resources B. Difficulties with technology compatibility C. Implementing all the work, and only the work that is required D. Careful definition of what is and is not included in the project Ans: B Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

17. Which of the following is a reason that an IT (information technology) project fails to achieve its desired results?

A. Provision of just the amount of resources B. Lack of commitment by management in providing the necessary resources C. Implementing all the work, and only the work that is required D. Careful definition of what is and is not included in the project Ans: B Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

18. Which of the following is a reason that an IT (information technology) project fails to achieve its desired results?

A. Provision of just the amount of resources B. Poorly defined project scope C. Implementing all the work, and only the work that is required D. Careful definition of what is and is not included in the project Ans: B Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

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19. Which of the following is a reason that an IT (information technology) project fails to achieve its desired results?

A. Provision of just the amount of resources B. Lack of sufficient time to complete the project C. Implementing all the work, and only the work that is required D. Careful definition of what is and is not included in the project Ans: B Feedback: Information Technology Project Management, p. 338 Difficulty: Easy

20. Which of the following is an example of a fixed cost?

A. Electricity for equipment B. Programming costs from an outsourcer C. Repair to a malfunctioning printer D. Salary of the IT director Ans: D Feedback: Justifying IT Applications Difficulty: Medium

21. Which method converts future values of benefits to today’s value by “discounting” them at the organization’s cost of funds?

A. net present value B. cost-benefit analysis C. return on investment D. internal rate of return Ans: A Feedback: Justifying IT Applications, p. 340 Difficulty: Easy

22. Which method measures the effectiveness of management in generating profits with its available assets?

A. net present value B. cost-benefit analysis C. return on investment D. internal rate of return Ans: C Feedback: Justifying IT Applications, p. 340 Difficulty: Easy

23. Which of the following methods determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project?

A. net present value B. break-even analysis C. return on investment D. internal rate of return

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Ans: B Feedback: Justifying IT Applications, p. 340 Difficulty: Easy

24. An organization should acquire software (off-the-shelf) from software vendors when: A. system software and utilities are needed B. the task requires custom support and the system cannot be built internally C. the resources and staff are available and the system must be built from scratch D. the supported task is standard Ans: D Feedback: Strategies for Acquiring IT Applications, p. 344 Difficulty: Medium

25. Which of the following systems acquisition methods results in software that can be tried out, has been used for similar problems in other organizations, and can save time?

A. systems development life cycle B. prototyping C. end-user development D. buy the application Ans: D Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

26. Which of the following systems acquisition methods result in software that is controlled by another company, may be difficult to enhance or modify, and may not support desired business processes?

A. Systems development life cycle B. Prototyping C. End-user development D. Buy the application Ans: D Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

27. Which of the following is an advantage of the “buy” option of standard software?

A. Vendors may drop a product or go out of business B. The company can know what it is getting before it invests in the product C. Purchased software can be difficult to integrate with existing systems D. The purchaser may not know the software well Ans: B Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

Chapter 12: Acquiring Information Systems and Applications

28. Which of the following is an advantage of the “buy” option of standard software?

A. Vendors may drop a product or go out of business B. There are other users of the software, so the software has been tested C. Purchased software can be difficult to integrate with existing systems D. The purchaser may not know the software well Ans: B Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

29. Which of the following is a disadvantage of the “buy” option of standard software?

A. Software can be tried out before purchases B. The company is not the first and only user of the software C. Vendors may drop a product or go out of business D. There may not be a need to dedicated personnel to the project Ans: C Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

30. Which of the following is a disadvantage of the “buy” option of standard software?

A. Software can be tried out before purchases B. The company is not the first and only user of the software C. Purchased software may be difficult to integrate with existing systems D. There may not be a need to dedicated personnel to the project Ans: C Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

31. Which of the following is a disadvantage of the “buy” option of standard software?

A. Software can be tried out before purchases B. The company is not the first and only user of the software C. The company will not have control over software improvements and new versions D. There may not be a need to dedicated personnel to the project Ans: C Feedback: Strategies for Acquiring IT Applications, p. 340-341 Difficulty: Easy

32. What is one of the disadvantages of the “lease” option for acquiring software?

A. Software can be tried out before purchases B. The company is not the first and only user of the software C. The software may not exactly fit the company’s application requirements D. There may not be a need to dedicated personnel to the project Ans: C

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Feedback: Strategies for Acquiring IT Applications, p. 341 Difficulty: Easy

33. Which of the following is a reason why a company might decide to acquire software using the “lease” option?

A. It may not fit the company’s needs B. It can be difficult to integrate with existing systems C. The software owner priorities for software maintenance could be uncertain D. It cannot afford major investments in IT software Ans: D Feedback: Strategies for Acquiring IT Applications, p. 341 Difficulty: Easy

34. Which of the following is a reason why a company might decide to acquire software using the “lease” option?

A. It may not fit the company’s needs B. It can be difficult to integrate with existing systems C. The software owner priorities for software maintenance could be uncertain D. It may want to test out the solution before committing to heavy investments Ans: D Feedback: Strategies for Acquiring IT Applications, p. 341 Difficulty: Easy

35. Which of the following is a reason why a company might decide to acquire software using the “lease” option?

A. It may not fit the company’s needs B. It can be difficult to integrate with existing systems C. The software owner priorities for software maintenance could be uncertain D. It may have a shortage of IT personnel with appropriate skills for developing custom applications Ans: D Feedback: Strategies for Acquiring IT Applications, p. 341 Difficulty: Easy

36. Which of the following types of services is “an agent or a vendor that assembles te software needed by enterprises and package the software with services such as development, operations and maintenance. The customer then accesses these applications via the Internet.”

A. Application service provider B. Cloud computing C. Open-source software D. Off-the-shelf approach Ans: A Feedback: Strategies for Acquiring IT Applications, p. 342 Difficulty: Medium

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37. A method of delivering software, in which a vendor hosts the applications, and customers access these applications over the Internet is called: A. Software-as-a-service B. Prototyping C. Leasing applications D. Service oriented architecture Ans: A Feedback: Strategies for Acquiring IT Applications, p. 342 Difficulty: Easy

38. The practice of turning over responsibility of some of an organization’s information systems applications and operations to an outside firm is referred to as: A. realignment B. downsizing C. hitching D. outsourcing Ans: D Feedback: Strategies for Acquiring IT Applications, p. 343 Difficulty: Medium

39. Hiring a company to run your applications at your site is an example of: A. a turnkey system B. extension system C. outsourcing D. realignment Ans: C Feedback: Strategies for Acquiring IT Applications, p. 343 Difficulty: Medium

40. The act of contracting a service or function to an external third party is called: A. expansion B. contracting C. outsourcing D. recruiting Ans: C Feedback: Strategies for Acquiring IT Applications, p. 343 Difficulty: Medium

41. Which of the following systems acquisition methods force staff to systematically go through every step in the development process and has a lower probability of missing important user requirements?

A. Traditional systems development life cycle B. Prototyping C. End-user development D. External acquisition

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Ans: A Feedback: The Traditional Systems Development Cycle, p. 344 Difficulty: Easy

42. Which of the following systems acquisition methods is time-consuming, costly, and may produce excessive documentation?

A. Traditional systems development life cycle B. Prototyping C. End-user development D. External acquisition Ans: A Feedback: The Traditional Systems Development Cycle, p. 344 Difficulty: Easy

43. One of the main concerns of using traditional SDLC methods in developing application systems is: A. inaccuracies in identifying user information requirement B. identifying user information requirements C. user requirements for the finished system D. the extended time required Ans: D Feedback: The Traditional Systems Development Cycle, p. 345 Difficulty: Medium

44. An organization should use in-house software developers when: A. the supported task is generic B. system software and utilities are needed C. the task requires custom support and the system cannot be built internally D. the resources and staff are available and the system must be built from scratch Ans: D Feedback: The Traditional Systems Development Cycle, p. 344 Difficulty: Medium

45. Place the stages of the systems development life cycle in order.

A. Systems investigation – systems analysis – systems design – programming and testing – implementation – operation and maintenance B. Systems investigation – systems design – systems analysis – programming and testing – implementation – maintenance and operation C. Systems analysis – systems design – systems investigation – operation and maintenance – programming and testing – implementation D. Systems investigation – systems analysis – systems design – programming and testing – maintenance and operation – implementation Ans: A Feedback: The Traditional Systems Development Life Cycle, p. 344

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Difficulty: Easy

46. Which type of feasibility determines if the hardware, software and communications components can be developed and/or acquired to solve the business problem?

A. Technical B. Economic C. Organizational D. Behavioural Ans: A Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

47. Which type of feasibility determines whether the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project?

A. Technical B. Economic C. Organizational D. Behavioural Ans: B Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

48. Which type of feasibility addresses the human issues of an information systems project?

A. Technical B. Economic C. Organizational D. Behavioural Ans: D Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

49. Any systems acquisition effort is mainly driven by A. organizational change B. feasibility studies C. data needs D. user information requirements Ans: D Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Medium

50. Which of the following refers to tasks where information is gathered about the existing system in order to determine the requirements for an enhanced system or a new system?

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A. system programming B. systems design C. systems implementation D. systems analysis Ans:D Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

51. The end product of the systems analysis phase is called: A. data requirements B. user requirements C. programming requirements D. systems analysis report Ans: B The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

52. The systems development stage that determines how the information system will do what is needed to solve the business problem is called: A. Systems design B. Systems analysis C. Systems implementation D. Systems development Ans: A Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

53. When users ask for added functionality during a systems development project, this is called A. user-defined software B. scope creep C. bloatware D. out-of-control project Ans: B Feedback: The Traditional Systems Development Life Cycle, p. 347 Difficulty: Easy

54. The process where the old system is cut off and the new system is turned on at a certain point in time is which type of implementation?

A. Parallel B. Direct C. Pilot D. Phased Ans: B

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Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

55. The riskiest type of conversion process is A. parallel B. direct C. pilot D. phased Ans: B Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

56. If a firm shuts down its old COBOL legacy system and starts up the new PeopleSoft ERP system immediately, this is what type of implementation?

A. phased B. direct C. parallel D. pilot Ans: B Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

57. When an organization introduces a new system in one part of the organization, such as in one plant or in one functional area, what type of implementation is this?

A. phased B. direct C. parallel D. pilot Ans: D Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

58. When an organization introduces components of a new system, such as individual modules, in stages, what type of implementation is this?

A. phased B. direct C. parallel D. pilot Ans: A Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

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59. Where an organization implements a new system by having the old and new systems operate simultaneously for a time, which type of implementation is this?

A. phased B. direct C. parallel D. pilot Ans: C Feedback: The Traditional Systems Development Life Cycle, p. 348 Difficulty: Easy

60. Which of the following systems acquisition methods helps clarify user requirements, promotes genuine user participation, and may produce part of the final system?

A. systems development life cycle B. prototyping C. end-user development D. external acquisition Ans: B Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Easy

61. A technique for quickly building a functioning model of the information system is called: A. modeling B. information system activities C. CASE D. prototyping Ans: D Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Easy

62. Which of the following systems acquisition methods may encourage inadequate problem analysis, is not practical when there are a large number of users, and may result in a system with lower quality.

A. systems development life cycle B. prototyping C. end-user development D. external acquisition Ans: B Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Easy

63. As an MIS analyst, you have decided to use a prototyping methodology for a small, web-based design project.

What is the order of steps that you will follow in the project?

A. Develop the prototype; use the prototype; revise and enhance the prototype B. Identify user requirements; develop the prototype; use the prototype; revise and enhance the prototype C. Develop the prototype; identify user requirements; use the prototype; revise and enhance the prototype

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D. Identify user requirements; develop solutions; select the best prototype; implement the prototype Ans: B Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Medium

64. Which approach to systems development is a group-based tool for collecting user requirements?

A. integrated computer-assisted software engineering B. joint application design C. rapid application development D. prototyping Ans: B Feedback: Alternative Methods and Tools for Systems Development, p. 350 Difficulty: Easy

65. Which of the following is a disadvantage of computer-assisted software engineering tools?

A. can produce systems with longer effective operational lives B. can produce systems that more closely meet user requirements C. are difficult to customize D. can speed up the development process Ans: C Feedback: Alternative Methods and Tools for Systems Development, p. 350-351 Difficulty: Easy

66. Which of the following is an advantage of computer-assisted software engineering tools?

A. produces initial systems that are more expensive to build and maintain B. require more extensive and accurate definition of user requirements C. produces a system that more closely meets user requirements D. difficult to customize Ans: C Feedback: Alternative Methods and Tools for Systems Development, p. 350-351 Difficulty: Easy

67. Which application development method combines joint application design (JAD), prototyping and iCASE (integrated computer-assisted software engineering) to produce a high-quality system?

A. Agile development B. End-user development C. Object-oriented programming D. Rapid application development Ans: D Feedback: Alternative Methods and Tools for Systems Development, p. 351 Difficulty: Medium

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68. Which of the following systems acquisition methods may eventually require maintenance assistance from the IT department, produce inadequate documentation, and result in a system with inadequate interfaces to existing systems?

A. Systems development life cycle B. Prototyping C. End-user development D. Object-oriented Ans: C Feedback: Alternative Methods and Tools for Systems Development, p. 346, 352 Difficulty: Easy

69. Which of the following is the most difficult and crucial task in evaluating a vendor and a software package?

A. Identifying potential vendors B. Determining the evaluation criteria C. Recruiting vendors and packages D. Choosing the vendor and package Ans: B Feedback: Vendor and Software Selection, p. 354 Difficulty: Medium

Short Answer and Discussion Questions

1. Describe the project management process.

Feedback: Information Technology Project Management, p. 336-338

2. Explain why projects fail.

Feedback: Information Technology Project Management, p. 338

3. Describe the various methods of conducting cost-benefit analyses.

Feedback: Justifying IT Applications, p. 340

4. Compare and contrast the various strategies for acquiring IT applications.

Feedback: Strategies for acquiring IT Applications, p. 340-344

5. What are application service providers and how do they differ from outsourcing?

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Feedback: Outsourcing and Application Service Providers, p. 342-343

6. Describe the traditional systems development life cycle.

Feedback: The Traditional Systems Development Life Cycle, p. 344

7. Describe the feasibility study of the SDLC (systems development life cycle) and explain why it is so important.

Feedback: The Traditional Systems Development Life Cycle, p. 346-347

8. Compare and contrast rapid application development and joint application design.

Feedback: Alternative Methods and Tools for Systems Development, p. 350-351

9. Describe the vendor selection process.

Feedback: Vendor and Software Selection, p. 353-355

Cases

1. Vocera is a multi-purpose intercom that can be worn about a person’s neck or clipped to clothing. It uses wireless technology and operates the same way that the communications devices in ‘Star Trek’ worked – you tap the device to activate it. The system uses voice recognition to initiate calls to others, and can also send text messages.

Since the system was recently implemented by East General Hospital, staff can now talk to others who are in isolation, and obtain emergency help if they tap the device’s grey button twice. It cost the hospital several million dollars to implement the system. The older city hospital is about one million square feet in size, with thick brick walls and special concrete protection around rooms that handle radiation, such as medical imaging.

Now, the hospital is thinking of implementing electronic document systems for its patient records. This would mean that existing hospital records would be scanned and placed into electronic files, while any new records would be created electronically or added to patient records as prepared.

The hospital is looking at two different options for its acquisition of the patient record system – purchasing a packaged system that is in use by hospitals in the U.S., or having a customized system developed.

(Rererences: “A new badge of honour,” by T. Burgmann, Toronto Star, p. B1, B4, Nov 16/09); and www.vocera.com (accessed January 29, 2011) Required: A)

What are the advantages of purchasing ready-made packaged software? (3 marks)

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Feedback: Strategies for Acquiring IT Applications, p. 340-341 Suggested Solution: • • • • • • • •

B)

Many different types of packages software are available Software can be tried out first The hospital can get detailed technical information about the product before it makes an investment There are many other users of the software that can provide user feedback, the hospital is not the first and only user Saves time and money building a customized system Do not need to hire IT personnel specifically to implement and maintain the system Vendor support for the product is readily available The hospital can join communities of other users and share product knowledge, technical know-how and solve problems collaboratively What are the disadvantages of purchasing ready-made packaged software? (3 marks)

Feedback: Strategies for Acquiring IT Applications, p. 340-341 Suggested Solution: • • • • • • • • C)

Software may not exactly meet the hospitals needs, requiring some customization at additional expense Software may be difficult to modify or may require significant business process changes to implement Lose control over new versions, upgrades and software modifications, creates ‘vendor dependency’ May be difficult to integrate with existing systems Vendors may go out of business or no longer support the product Hospital does not have access to the underlying source code and loses control of future changes to the software The software is controlled by the vendor who has different priorities and strategies Lack of knowledge of how the software works What are the advantages of developing customized software? (3 marks)

Feedback: Strategies for Acquiring IT Applications, p. 344 and The Traditional Systems Development Life Cycle, p.

344-345 Suggested Solution: • • • • • • • • D)

System is fully tailored to the hospital’s needs and can be made to fit existing business processes, rather than the other way around Better fit with the hospital’s specific organizational requirements and strategies Can build tighter integration with existing systems Enables the hospital to implement innovative and emerging technologies that others are not using Hospitals retains full control as it owns the source code and can make all decisions relating to the software, future changes or modifications Forces staff to treat the system implementation as a structured project and work through implementation in a systematic way Note: This is only true if management is using a structured approach to the project.

Has lower probability of missing important issues in collecting user requirements Note: this depends on methods used. We should probably say something like: Increases the probability of addressing important issues in user requirements The hospital is able to build a good understanding of the software and how it works What are the disadvantages of developing customized software? (3 marks)

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Feedback: Strategies for Acquiring IT Applications, p. 344 and The Traditional Systems Development Life Cycle, p.

344-345 Suggested Solution: • • • • • • • •

Time-consuming and takes longer to implement More costly than buying or leasing Users may have trouble describing their requirements for the new system Requires good documentation to be produced for ongoing maintenance of the software Users may be unwilling or unable to understand the specifications they provide and/or approve Requires employees to be trained in the use of one of many various SDLC methodologies Requires extensive IT project management skills and resources; the track record for successful SDLC projects is historically very poor (e.g. Standish Group research) Will require dedicated IT personnel who understand the inner workings of the software to maintain it in the future

2. Great West Canadian Bank (GWC) comprises a group of companies that employs over 3,000 people in 108 locations. GWC has grown by acquiring other smaller banks and financial service organizations. To reduce costs and improve information systems services, the organization has several projects planned for the coming year.

The first of these projects is server consolidation. Some of the bank;s servers are at a main data centre in Edmonton, while many others are distributed in regional banking centres as part of the branch network. The bank plans on reducing the number of locations with servers from fifteen to three over the next year. As part of this project, the bank will be implementing an enterprise storage system and improving the way it manages data access and sharing amongst the bank branches.

GWC is also looking to improve turn-around and provide greater consistency in its loan and credit approval processes. Loan applications are currently recorded manually or using standard word processing templates. The printed version of the loan application document is then sent to a central credit risk group for approval, often resulting in delays of two to six days before a loan is approved or declined. By automating this process and integrating the credit granting process with external credit checks and an expert system-based credit evaluation system, the bank hopes to reduce time for credit granting and reduce credit losses. Rather than sending paper documents for credit approval, the bank will use an expanded intranet to provide access to internal documents by authorized employees.

Required: A) The new credit granting system will likely be custom-developed. The bank would like to engage in best practices during the acquisition and development of this software. Describe three activities that the bank needs to complete within each of the following two phases of the traditional systems development life cycle. (6 marks) Systems investigation Systems design Feedback: The Traditional Systems Development Life Cycle, p. 346-347 Suggested Solution: Phase Systems investigation

Actions They should do Feasibility Study to decide which option is the best or whether the project should proceed. This study determines the best fit and documents costs and benefits. There are four types of feasibility study: 1) Technical Feasibility study – determine if the hardware, software and communications components can be developed and/or acquired

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to solve the problem.

- determines whether existing technology can be used for the proposed system 2) Economic feasibility study – takes into account the risk, costs involved and time to complete the project. Using different methods such as NPV, ROI, BEP and more.

- Do the benefits outweigh the costs?

- Can the company afford the project?

3) Behavioral feasibility study – address the human issues of the project (e.g: union resistance).

Systems design

Go/No-Go Decision: based on the studies management will decide if to continue with the project or not.

Describe how the system will resolve the business problem, by preparing a set of technical system specification. These would include • System outputs, inputs and user interfaces • Hardware, software, databases, telecommunications, personnel and procedures • A blueprint of hwo these components are integrated When the system specifications are approved by all participants, they are frozen.

B) Describe two conversion strategies that would be suitable for the bank to use in the implementation of the new credit-granting system. For each conversion method strategy, describe an advantage associated with that conversion strategy. (4 marks) Feedback: The Traditional Systems Development Life Cycle, p. 348 Suggested Solution: Conversion method with description Direct conversion - Implementation process in which the old system is cut-off and the new system turned on at a certain point in time.

Pilot conversion - Implementation process that introduces the new system in one part of the organization on a trial basis.

Advantage of conversion method Least expensive

The system can be assessed and if the assessment is confirm that the system run properly, then it’s introduced to the other part of the organization. If the assessment confirms the system runs properly, then it is introduced to other parts of the organization.

Phased conversion-Implementation process that introduces components of the new system in stages, until the entire new system is operational.

Each module is assessed and if it is working properly then they introduced other module. It is very safe process and allows their employee to learn and work with the system in stages which are less stressful.

Parallel conversion - Implementation process in which the old system and the new system operate simultaneously for a period of time.

A historic parallel can be used in which real transactions are run through the new system and compared to the old system results before the new system is turned on for full-time use. (p. 314)

Very safe way to check the new system and compare between the results but also very expensive and time consuming.

Note that – THE BANK IS UNLIKELY TO

Note that – THE BANK IS UNLIKELY TO PROCESS A SINGLE CREDIT APPLICATION TWO WAYS

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PROCESS A SINGLE CREDIT APPLICATION TWO WAYS 3. Men R Us Limited (MRU) is a large men’s wear store with locations in Canada and the U.S. MRU has been in business for over 50 years, and has resisted the development of an online store, as it felt that its customers prefer to try on and buy their clothing, rather than purchase over the internet. MRU has a basic web site that provides information about store locations and the different lines of clothing that it offers.

The number of telephone calls to the store about prices has increased, as customers seem to be comparison shopping much more before deciding to buy. MRU believes that a web site online store presence could increase its sales, because it could advertise its products online, even if it was only for the purpose of comparison shopping.

Accordingly, it has decided that it will have its web site upgraded to provide for secure shopping.

MRU is considering several different development approaches in the development of its online store, and would like a further explanation of the advantages and disadvantages of these approaches before proceeding. In particular, it is considering outsourcing, the use of an application service provider, and prototyping.

Required: A) marks)

Describe the advantages and disadvantages to MRU of outsourcing the development of its online store. (3

Feedback: Strategies for Acquiring IT Applications, p. 343 Suggested Solution: Advantages Saves costs of having inhouse technology personnel Relies on experts, providing a potentially better solution Can experiment with new information technologies at a lower cost Disadvantages During system development, programmers in another company could put malicious computer code (for example, back doors) in applications.

B)

Describe the advantages and disadvantages to MRU of the use of an application service provider. (4 marks)

Feedback: Strategies for Acquiring IT Applications, p. 343 Suggested Solution: Advantages Reduces software maintenance and upgrades.

Makes the company more competitive by reducing time-to-market and enhances the company's ability to adapt to changing market conditions.

Disadvantages Software might not be a perfect fit for the desired application.

• application service provider might go out of business and shut down its web site when it does; client could lose data and lose access

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Advantages

C)

Describe the advantages and disadvantages to MRU of the use of prototyping.

(5 marks)

Feedback: Alternative Methods and Tools for Systems Development, p. 350 Suggested Solution: Advantages Helps clarify user requirements.

Helps verify or test the feasibility of the design.

Promotes genuine user participation.

Promotes close working relationship between systems developers and users.

Works well for ill-defined problems.

May produce part of the final system.

Disadvantages May encourage inadequate problem analysis.

Not practical with a large number of users.

User may not give up the prototype when the system is completed.

May generate confusion about whether the system is complete and maintainable.

System may be built quickly, which may result in lower quality.

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Technology Guide 1: Computer Hardware

True/False

1. Computer technologies become obsolete faster than other technologies in the organization.

Ans: True Feedback: Technology Guide Overview, p. 364 Difficulty: Easy

2. Grid computing involves applying the resources of many computers in a network to a single problem at the same time.

Ans: True Feedback: Innovations in Hardware Utilization, p. 367 Difficulty: Easy

3. Nanotechnology involves applying the resources of many computers in a network to a single problem at the same time.

Ans: False. The above describes grid computing.

Feedback: Creative Methods in Hardware Utilization, p. 367 Difficulty: Easy

4. Each generation of computer hardware has exhibited increased processing power and decreased costs.

Ans: True Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

5. Minicomputers are relatively small, inexpensive computers that perform the same functions as mainframe computers, but to a more limited extent.

Ans: True Feedback: The Computer Hierarchy, p. 372 Difficulty: Easy

6. Embedded computers are computers placed inside another product to add features and capabilities.

Ans: True Feedback: The Computer Hierarchy, p. 374 Difficulty: Easy

1

Technology Guide 1: Computer Hardware

2

7. Source-data automation uses various technologies to input data with minimal human intervention.

Ans: True Feedback: Input and Output Technologies, p. 375 Difficulty: Easy

8. A byte represents a particular alphanumeric character or simple mathematical operation.

Ans: True Feedback: Computer Memory and Storage Systems, p. 346 Difficulty: Easy

9. There are only three types of primary storage: register, cache, and ROM. Ans: False. There are also others, for example RAM. Feedback: Computer Memory and Storage Systems, p. 380-382 Difficulty: Easy

10. Random access memory is that part of primary storage that holds a software program (or portion of it) and small amounts of data when they are brought from secondary storage.

Ans: True Feedback: Computer Memory and Storage Systems, p. 381 Difficulty: Easy

11. If most types of computers lose their power supply, they would lose the contents of their random access memory, because it is volatile.

Ans: True Feedback: Computer Memory and Storage Systems, p. 381 Difficulty: Easy

12. Sequential access is a type of data access most associated with magnetic disks.

Ans: False. It is associated with magnetic tape.

Feedback: Computer Memory and Storage Systems, p. 382 Difficulty: Easy

13. Magnetic tape provides faster access to data than magnetic disks.

Ans: False

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3

Feedback: Computer Memory and Storage Systems, p. 382 Difficulty: Easy

14. An optical storage device is a form of secondary storage device on which data are recorded by laser and read by laser in a computer’s disk drive.

Ans: True Feedback: Computer Memory and Storage Systems, p. 383 Difficulty: Easy

15. Digital video disks (DVDs) have higher storage capacities than CD-ROMs. Ans: True Feedback: Computer Memory and Storage Systems, p. 384 Difficulty: Easy

16. The cost per megabyte of storage is greater for traditional hard disk storage than for PC memory cards (flash memory devices).

Ans: False. It is greater for flash devices, as they store less.

Feedback: Computer Memory and Storage Systems, p. 384 Difficulty: Easy

17. An enterprise storage system is an independent, external, intelligent system that includes two or more storage devices.

Ans: True Feedback: Computer Memory and Storage Systems, p. 385 Difficulty: Easy

20. Active badges are clip-on devices that contain a microprocessor that transmits its location to a computer via sensors on the premises.

Ans: True Feedback: Computer Hierarchy, p. 345–348 Difficulty: Easy

21. The mouse is the most common input device.

Ans: False Feedback: Input and Output Technologies, p. 348–350 Difficulty: Easy

Technology Guide 1: Computer Hardware

Multiple Choice

1. Which of the following three factors need to be considered when making hardware decisions?

A. size, speed and cost B. memory capacity, speed and cost C. appropriateness for task, delivery time and cost D. appropriateness for task, speed, and cost Ans: D Feedback: Technology Guide Overview, p. 264 Difficulty: Easy

2. Which of the following best describes the overall trends in hardware?

A. larger, faster, cheaper and more powerful B. smaller, faster, more expensive and more powerful C. smaller, faster, cheaper and more powerful D. smaller, more memory, cheaper and more powerful Ans: C Feedback: Technology Guide Overview, p. 264 Difficulty: Easy

3. Which of the following best describes the central processing unit (CPU)?

A. Manipulates the data and controls the tasks performed by the other components B. Temporarily stores data and program instructions during processing C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: A Feedback: Introducing Hardware Components, p. 365 Difficulty: Medium

4. Which of the following best describes primary storage?

A. Manipulates the data and controls the tasks performed by the other components B. Temporarily stores data and program instructions during processing C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: B Feedback: Introducing Hardware Components, p. 365 Difficulty: Medium

5. Which of the following best describes secondary storage?

A. External to the CPU; stores data and programs for future use B. Temporarily stores data and program instructions during processing

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: A Feedback: Introducing Hardware Components, p. 365 Difficulty: Easy

6. Which of the following best describes input technologies?

A. Manipulates the data and controls the tasks performed by the other components B. Temporarily stores data and program instructions during processing C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: C Feedback: Introducing Hardware Components, p. 365 Difficulty: Easy

7. Which of the following best describes output technologies?

A. Manipulates the data and controls the tasks performed by the other components B. Temporarily stores data and program instructions during processing C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: D Feedback: Introducing Hardware Components, p. 365 Difficulty: Easy

8. Which of the following best describes communication technologies?

A. Manipulates the data and controls the tasks performed by the other components B. Provides for the flow of data from external computer networks to the CPU, and from the CPU to computer networks C. Accepts data and instructions and converts them to a form that the processor can understand D. Presents data and information in a form that people can understand Ans: B Feedback: Introducing Hardware Components, p. 365 Difficulty: Medium

9. Which of the following is an important strategic hardware issue?

A. How much the hardware can store B. How much the hardware costs C. What the hardware enables D. The communication speed that the hardware can handle Ans: C Feedback: Strategic Hardware Issues, p. 365 Difficulty: Medium

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Technology Guide 1: Computer Hardware

10. A massive data centre that contains hundreds of thousands of networked computer servers is called a: A. Virtual set of systems B. Grid computing C. Hard disk farm D. Server farm Ans: D Feedback: Innovations in Hardware Utilization, p. 366 Difficulty: Easy

11. How do server farms benefit hardware usage in organizations? By providing A. Faster processing and redundancy B. Redundancy and fault tolerance C. Redundancy and greater storage capacity D. Fault tolerance and faster processing Ans: B Feedback: Innovations in Hardware Utilization, p. 366 Difficulty: Medium

12. To be most effective, server farms should be located near: A. Coaxial cable communications links B. Internet service providers C. Virtualization technology suppliers D. Fibre optic communications links Ans: D Feedback: Innovations in Hardware Utilization, p. 366 Difficulty: Medium

13. Which of the following is a benefit of virtualization?

A. Inability to access applications individually B. Cost savings in equipment, energy, and maintenance C. More energy cost since more hard drives are used D. More technical support needed to handle application development Ans: B Feedback: Innovations in Hardware Utilization, p. 367 Difficulty: Medium

14. Which of the following is a benefit of virtualization?

A. Inability to access applications individually B. Enhanced organizational agility, able to quickly modify systems C. More energy cost since more hard drives are used D. More technical support needed to handle application development

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: B Feedback: Innovations in Hardware Utilization, p. 367 Difficulty: Medium 15. Which of the following is a benefit of virtualization?

A. Inability to access applications individually B. Shifting technology focus from technology to the services provided C. More energy cost since more hard drives are used D. More technical support needed to handle application development

Ans: B Feedback: Innovations in Hardware Utilization, p. 367 Difficulty: Medium

16. Which of the following applies the unused processing resources of many geographically dispersed computers in a network to form a virtual supercomputer?

A. Server farm B. Virtualization C. Grid computing D. Cache memory Ans: C Feedback: Innovations in Hardware Utilization, p. 367 Difficulty: Easy

17. When a service provider makes computing resources and infrastructure management available to a customer as needed, this is called: A. server farm B. virtualization C. cache memory D. utility computing Ans: D Feedback: Innovations in Hardware Utilization, p. 368 Difficulty: Easy

18. Advantages of utility computing (also known as on-demand computing) are that it provides: A. More jobs as more staff are needed for support B. The ability to train employees in more current technology C. Fault tolerance, redundancy and scalability D. Fault tolerance, redundancy, and the ability to use more hard drives Ans: C Feedback: Innovations in Hardware Utilization, p. 368 Difficulty: Easy

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Technology Guide 1: Computer Hardware

19. When tasks are performed by computers physically removed from the user and accessed over the Internet, this is called: A. Virtualization B. Server farms C. Enterprise computing D. Cloud computing Ans: D Feedback: Innovations in Hardware Utilization, p. 368 Difficulty: Easy

20. The process in which parts of website content and processing are located close to the user to decrease Feedback time and lower processing costs is called: A. Edge computing B. Virtualization C. Grid computing D. Utility computing Ans: A Feedback: Innovations in Hardware Utilization, p. 370 Difficulty: Easy

21. When a system configures itself optimally to meet the requirements, finds and repairs hardware and software problems, and protects itself against attacks and failures, it is called?

A. Autonomic computing B. Virtualization C. Grid computing D. Utility computing Ans: A Feedback: Innovations in Hardware Utilization, p. 370 Difficulty: Easy

22. The creation of materials, devices, and systems on a scale of billionths of a metre is called: A. Nanotechnology B. Ultra-large scale integration C. Very-large scale integration D. Utility computing Ans: A Feedback: Innovations in Hardware Utilization, p. 370 Difficulty: Easy

23. To model the weather or simulate nuclear weapons testing, you would most likely use a A. mainframe computer B. workstation C. supercomputer D. personal computer

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Ans: C Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

24. Which of the following refers to computers with the most processing power available?

A. Supercomputer B. Mainframe C. Midrange computer D. Microcomputer Ans: A Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

25. An example of a computer system designed to accommodate multiple users simultaneously is a A. microcomputer B. mainframe C. laptop D. palmtop Ans: B Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

26. Which type of computer is used in large enterprises for extensive computing applications that are accessed by thousands of concurrent users?

A. supercomputer B. mainframe C. midrange computer D. microcomputer Ans: B Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

27. When organizations that used mainframes shifted to distributed systems and then returned to mainframes, this is called?

A. Edge computing B. Simplifying administration C. Enterprise computing D. Recentralization Ans: D Feedback: The Computer Hierarchy, p. 371 Difficulty: Easy

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Technology Guide 1: Computer Hardware

10

28. When a system that is part of a client-server network does not offer the full functionality of a personal computer, it is called a A. Netbook client B. Portable client C. Thin client D. Fat client Ans: C Feedback: The Computer Hierarchy, p. 373 Difficulty: Easy

29. Which of the following is the most common input device for text or numerical data?

A. Pointing stick B. Mouse C. Trackball D. Keyboards Ans: D Feedback: Input and Output Technologies Difficulty: Easy

30. Which of the following is a human data-entry device (as opposed to a source-data automation input device)?

A. Graphics tablet B. Magnetic stripe reader C. Point-of-sale terminal D. Camera Ans: A Feedback: Input and Output Technologies, p. 375-6 Difficulty: Easy

31. Which of the following is a source-data automation input device (as opposed to a human data-entry device)?

A. Digital pen B. Mouse C. Voice recognition D. Barcode scanner Ans: D Feedback: Input and Output Technologies, p. 375-6 Difficulty: Easy

32. Which of the following is a combination of an electronic cash register, bar code reader, and printer?

A. automated teller machine (ATM) B. touch pad C. point of sale (POS) terminal

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

D touch screen E. digital pen Ans: C Feedback: Input and output technologies, p. 376 Difficulty: Easy

33. Which of the following devices is used to convert text into digital form for input into a computer?

A. Automated teller machine B. Optical character recognition sensors C. Voice recognition D. Radio frequency identification (RFID) Ans: B Feedback: Input and output technologies, p. 376 Difficulty: Medium

34. The hardware that processes input data into processed information is called: A. disk drive B. router C. memory D.CPU Ans: D Feedback: The Central Processing Unit, p. 378 Difficulty: Medium

35. Gordon Moore (with Moore’s Law) predicted that microprocessor complexity would do which of the following?

A. Double every year B. Double every two years C. Increase slowly D. Decrease slowly Ans: B Feedback: The Central Processing Unit, p. 378 Difficulty: Medium

36. When multiple processors are placed on a single chip, this is called: A. Multiprocessing B. Multithreading C. Multitasking D. Multicore Ans: D Feedback: Computer Memory and Storage Systems, p. 379 Difficulty: Hard

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Technology Guide 1: Computer Hardware

12

37. The type of storage that stores small amounts of data and information that will be used immediately by the CPU is called: A. Primary B. Secondary C. Tertiary D. Virtual Ans: A Feedback: Computer Memory and Storage Systems, p. 379 Difficulty: Easy

38. The type of storage which can store large amounts of data and information for extended periods of time is called: A. Primary B. Secondary C. Blocked D. Cache Ans: B Feedback: Computer Memory and Storage Systems, p. 379 Difficulty: Easy

39. Information is stored and transmitted inside a computer in A. binary form B. ASCII code form C. decimal form D. alphanumeric form Ans: A Feedback: Computer Memory and Storage Systems, p. 379 Difficulty: Easy

40. When a device stores about 1 billion bytes of information, this capacity is described as aA. Kilobyte B. Megabyte C. Gigabyte D. Terabyte Ans: C Feedback: Computer Memory and Storage Systems, p. 80 Difficulty: Easy

41. When a device stores about 1 thousand bytes of information, this capacity is described as a A. Kilobyte B. Megabyte C. Gigabyte D. Terabyte

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

13

Ans: A Feedback: Computer Memory and Storage Systems, p. 80 Difficulty: Easy

42. Arrange in the correct sequence, from smallest to largest: A. megabyte – kilobyte – gigabyte – terabyte – exabyte – petabyte B. exabyte – petabyte – terabyte – gigabyte – megabyte – kilobyte C. kilobyte – megabyte – gigabyte – terabyte – petabyte – exabyte D. petabyte – exabyte – kilobyte – gigabyte – kilobyte – terabyte Ans: C Feedback: Computer Memory and Storage Systems, p. 380 Difficulty: Easy

43. There is a type of storage that stores three types of information: data to be processed by the CPU, instructions for the CPU as to how to process the data, and operating system programs that manage various aspects of the computer’s operation. This type of storage is called: A. Primary B. Secondary C. Blocked D. Cache Ans: B Feedback: Computer Memory and Storage Systems, p. 380 Difficulty: Easy

44. The part of primary storage that holds a software program (or portion of it) and small amounts of data when they are brought from secondary storage is called A. read-only memory B. random access memory C. cache memory D. registers Ans: B Feedback: Computer Memory and Storage Systems, p. 381 Difficulty: Easy

45. When the electrical power is disrupted or cut off, data and programs are lost if it is stored in A. hard disk B. secondary storage C. USB memory D. RAM Ans: D Feedback: The Central Processing Unit, p. 381 Difficulty: Easy

Technology Guide 1: Computer Hardware

46. The type of primary storage, closest to the CPU where the computer can temporarily store blocks of data used most often is called A. read-only memory B. registers C. random access memory D. cache memory Ans: D Feedback: Computer Memory and Storage Systems, p. 381 Difficulty: Easy

47. Cache memory enhances: A. memory capacity B. access time C. magnetic storage capacity D. optical storage access time Ans: B Feedback: Computer Memory and Storage Systems, p. 381 Difficulty: Easy

48. The type of primary storage where certain critical instructions are safeguarded because the storage is nonvolatile and the instructions can be read only by the computer and not changed by the user is called A. read-only memory B. random access memory C. cache memory D. registers Ans: A Feedback: Computer Memory and Storage Systems, p. 382 Difficulty: Easy

49. If you wished to store a large amount of archival data for a long period of time, you would likely choose which of the following?

A. Magnetic disk B. Magnetic tape C. Read-only chips D. Thumb drives Ans: B Feedback: Computer Memory and Storage Systems, p. 382 Difficulty: Medium

50. Electronic storage devices that contain no moving parts are called A. Hard drives B. Flash memory devices

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Magnetic tape D. Optical disk drives Ans: B Feedback: Computer Memory and Storage Devices, p. 384-385 Difficulty: Easy

51. A type of enterprise storage system that links groups of hard drives to a specialized microcontroller, which coordinates the drives so they appear to be a single, logical drive is called A. Redundant array of independent disks B. Storage area network C. Network-attached storage D. Primary storage Ans: A Feedback: Computer Memory and Storage Systems, p. 385 Difficulty: Easy

52. A type of enterprise storage system that is an architecture for building dedicated networks that allow rapid and reliable access to storage devices by multiple servers is called: A. Redundant array of independent disks B. Storage area network C. Network-attached storage D. Primary storage Ans: B Feedback: Computer Memory and Storage Systems, p. 385 Difficulty: Easy

Short Answer and Discussion Questions

1. Discuss why it is difficult to make hardware decisions today.

Feedback: Technology Guide Overview and Strategic Hardware Issues, p. 364-365

2. Describe the components that make up hardware.

Feedback: Introducing Hardware Components, p. 365

3. Describe strategic hardware issues that organizations need to consider.

Feedback: Strategic Hardware Issues, p. 365

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Technology Guide 1: Computer Hardware

16

4. Describe server farms. What would be the differences in how small organizations and large organizations use server farms? (Hint: Consider Google, Yahoo, and Amazon, and the services they provide with their server farms.)

Feedback: Innovations in Hardware Utilization, p. 366-367

5. Compare and contrast grid computing, utility computing, and cloud computing.

Feedback: Innovations in Hardware Utilization, p. 367-368

6. Describe edge computing and the advantages it provides to individuals and organizations.

Feedback: Innovations in Hardware Utilization, p. 370

7. Compare and contrast supercomputers, mainframes, midrange computers, and microcomputers.

Feedback: The Computer Hierarchy, p. 371-374

8. What are the types of primary storage?

Feedback: Computer Memory and Storage Systems, p. 380-382

9. What are the types of secondary storage?

Feedback: Computer Memory and Storage Systems, p. 382-386

10. Describe the nature and purpose of enterprise storage systems.

Feedback: Computer Memory and Storage Systems, p. 385

Cases

1. Bellwood College has switched to using electronic readers rather than paper-based textbooks. Students are issued a reader that gives them access to the textbooks that are listed as required for their courses at no additional charge. The publishing fee for the texts, paid to one Canadian publisher, means that the College is now using textbooks from only that publisher. It also means that the College will be spending less on new library acquisitions, since the licence fee for the books is coming from the College library budget.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

17

Students at the College also have access to the College’s email systems, web sites, and a computer lab with a variety of software, as well as a wireless network.

The College Store sells a variety of products in addition to books: these include uniforms, stationary and art supplies. There is also a full service restaurant on campus, which is open to the public, run by students.

Recently, the College has started a campaign for students to bring non-students to the restaurant, by offering free deserts to students who bring a new person to the restaurant.

The College Student Council has set up a web site where students can sell their art work or other products that they have developed or created. Five percent of the sale price goes to the Student Council, and the rest goes to the student.

Required: A) What is cloud computing and how could Bellwood college use cloud computing? (3 marks) Feedback: Innovations in Hardware Utilization, p. 368 Suggested Solution: Description: Cloud computing is where the computing work is done on computers that are not on the premises of the organization, stored on the Internet.

Examples: [Note, other examples are possible] - the textbooks that students use could be stored on Internet servers provided by the publisher - students and faculty could use free email services that are provided by search engine providers (such as Yahoo or Google) - course web sites and course reference materials could be posted on Internet web sites that are hosted by Internet service providers B) Discuss two examples of computing devices from the computer hierarchy that students or faculty could use to access their textbooks and course content. (2 marks) Feedback: The Computer Hierarchy, p. 372-373 Suggested Solution: [Note that other uses of all of these devices could also be listed, such as use of email, internet browsing, word processing and spreadsheets] - desktop computers, which have a central processing unit (CPU), with a separate monitor and keyboard would likely be used by faculty or by students at fixed locations, such as the library or at home - the reader device could be considered to be an ultra-mobile device, as it has limited size and functionality, but runs a mobile operating system and can be used wirelessly to read textbooks - netbooks (or laptops or notebooks), which are portable computers with built in screen and keyboard, could also be used to retrieve course materials

2. BLOSS is a retailer of jeans and casual clothing. It operates over 180 retail and factory stores in Canada, over 1,000 in-store shops in other retailers, and sells merchandise in over 70 countries worldwide. In order to support its operating activities BLOSS implemented an information system for its suppliers and independent retailers in Canada and 230 other countries called Apparel Buying Network. The company can use the Apparel Buying Network to purchase direct items such as trim, fabric, and finished goods and indirect items such as office and maintenance supplies. Store buyers can order merchandise directly from BLOSS by entering their purchases on a private web site called ApparelBuy.com, which is integrated with the firm’s core order processing system.

Technology Guide 1: Computer Hardware

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BLOSS maintains a public web site for retail customers called BLOSS.com, which offers product catalogues and merchandise ordering on-line. This e-commerce site generates as many sales as one of the BLOSS flagship stores. BLOSS established www.babybloss.com and www.blosskids.com as e-commerce sites for retailing infants’ and children’s clothing and accessories. BLOSS is also using Internet technology to streamline its internal business processes. BLOSSExpress is an internal private network based on internet technology that is used for purchasing from suppliers, reviewing architectural plans for new stores, making travel arrangements, and broadcasting messages to managers about operating instructions and company and industry trends.

Required: A) Provide three examples of input technologies that could be used at BLOSS retail stores. For each input device, explain how BLOSS employees could use them. (3 marks) Feedback: Input and Output Technologies, p. 375-376, Table TG1.1 Suggested Solution: [Note that other examples are possible.]

Keyboards: Employees could enter details of sales using a keyboard.

Mouse or Optical Mouse or Pointing stick or Touchpad: The mouse could be used to click on menu options.

Barcode Scanner or Optical character recognition sensors: These devices could be used to automatically read information from product price tags for inclusion in the customer invoice or receipt.

B) Provide three examples of output technologies that could be used at BLOSS retail stores. For each output device, explain how BLOSS employees could use them. (3 marks) Feedback: Input and Output Technologies, p. 377, Table TG1.2 Suggested Solution: [Note that other examples are possible.]

Cathode ray tube screens or Liquid crystal display: these screens would be attached to the terminals used by employees when they are processing a sale or obtaining information about products in the store Thermal printer: [not on the table list] heat-based printer that would be used to print receipts from automated payment devices, such as debit card receipts or credit card receipts Laser printer: laser-based printer that could be used to print reports or customer invoices or receipts

3. Great West Canadian Bank (GWC) comprises a group of companies that employs over 3,000 people in 108 locations. GWC has grown by acquiring other smaller banks and financial service organizations. To reduce costs and improve information systems services, the organization has several projects planned for the coming year.

The first of these projects is server consolidation. Some of the bank’s servers are at a main data centre in Edmonton, while many others are distributed in regional banking centres as part of the branch network. The bank plans on reducing the number of locations with servers from fifteen to three over the next year. As part of this project, the bank will be implementing an enterprise storage system and improving the way it manages data access and sharing amongst the bank branches.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

19

GWC is also looking to improve turn-around and provide greater consistency in its loan and credit approval processes. Loan applications are currently recorded manually or using standard word processing templates.

The printed version of the loan application document is then sent to a central credit risk group for approval, often resulting in delays of two to six days before a loan is approved or declined. By automating this process and integrating the credit granting process with external credit checks and an expert system-based credit evaluation system, the bank hopes to reduce time for credit granting and reduce credit losses. Rather than sending paper documents for credit approval, the bank will use an expanded intranet to provide access to internal documents by authorized employees.

Required: A) Provide two advantages to the bank of using an enterprise wide storage system. (2 marks) Feedback: Computer Memory and Storage Systems, p. 385 Suggested Solution: Any 2 of the following advantages: 1) 2) 3) 4) 5)

Large amount of storage (capacity) High performance data transfer High degree of availability Protection against data loss Sophisticated data management tools

B) There are three different types of enterprise storage systems. Name and describe these. (3 marks) Feedback: Computer Memory and Storage Systems, p. 385 Suggested Solution: Redundant Arrays of independent disks (RAID)

•

Combine multiple small, inexpensive disk drives into an array which yields performance exceeding that of one large and expensive drive. This array of drives will appear to the computer as a single logical storage unit or drive. RAID is a method in which information is spread across several disks, by storing data redundancy, lower time delay and/or higher bandwidth for reading and/or writing to disks, and maximizes recoverability from hard-disk crashes.

Storage area network (SAN)

•

Network attached storage

•

A high-speed special-purpose network (or subnetwork) that interconnects different kinds of data storage devices with associated data servers on behalf of a larger network of users. Typically, a storage area network is part of the overall network of computing resources for an enterprise.

A computer connected to a network that only provides file-based data storage services to other devices on the network. Although it may technically be possible to run other software on a NAS unit, it is not designed to be a general purpose server. For example, NAS units usually do not have a keyboard or display, and are controlled and configured over the network, often using a browser.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Technology Guide 2: Computer Software

True/False

1. Software is typically quite complex.

Ans: True Feedback: Significance of Software, p. 392 Difficulty: Easy

2. As hardware costs have decreased over the past twenty years, software costs have also decreased.

Ans: False. The price of software has increased.

Feedback: Significance of Software, p. 392 Difficulty: Easy

3. Software consists of computer programs, which are sequences of instructions for the computer.

Ans: True Feedback: Significance of Software, p. 392 Difficulty: Easy

4. Computer code is generally efficient, well designed, and contains very few errors.

Ans: False Feedback: Significance of Software, p. 393 Difficulty: Easy

5. Computer hardware and software are designed to be general purpose.

Ans: False. Application software is special purpose.

Feedback: Significance of Software, p. 393 Difficulty: Easy

6. Application software cannot be run on computer hardware without systems software.

Ans: True Feedback: Significance of Software, p. 393. Fig TG2.1 Difficulty: Easy

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Technology Guide 2: Computer Software

7. The operating system supervises the overall operation of the computer.

Ans: True Feedback: Systems Software, p. 394 Difficulty: Easy

8. The user interface is most sophisticated on large, older computer systems and least sophisticated on current desktop operating systems.

Ans: False. New, smaller systems have a better user interface.

Feedback: Systems Software, p. 395 Difficulty: Easy

9. Performance monitors and security monitors are examples of system control programs.

Ans: False. They are system support programs.

Feedback: Systems Software, p. 397 Difficulty: Easy

10. Proprietary application software addresses a specific or unique business need for a company.

Ans: True Feedback: Application Software, p. 397 Difficulty: Easy

11. Off-the-shelf application software consists of specific software programs developed for a particular company by a software vendor.

Ans: False. No, it is useable by many organizations, and available for purchase in a prepackaged form.

Feedback: Application Software, p. 397 Difficulty: Easy

12. Personal application software consists of widely used packages such as word processing, spreadsheet, communications, and graphics software.

Ans: True Feedback: Application Software, p. 398 Difficulty: Easy

13. Open systems refers to a model of computing products that work together.

Ans: True Feedback: Open Systems, p. 399 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

3

14. Machine languages allow the user to specify the desired result of a computer program without having to specify step-by-step procedures.

Ans: False. They use 0s and 1s.

Feedback: Programming Languages, p. 402, Table TG2.2 Difficulty: Easy

15. Assembly language is a lower-level programming language that is slightly more user-friendly than machine language.

Ans: True Feedback: Programming Languages, p. 402, Table TG2.2 Difficulty: Easy

16. Assembly language consists entirely of 0s and 1s.

Ans: False. It uses mnemonics.

Feedback: Programming Languages, p. 402, Table TG2.2 Difficulty: Easy

17. Assembly languages are languages used within a graphical environment.

Ans: False. They are an older form of text-based programming.

Feedback: Programming Languages, p. 402, Table TG2.2 Difficulty: Easy

18. Hypertext Markup Language is designed to improve the functionality of Web documents by providing more flexible and adaptable information identification.

Ans: False. It is used to create web pages.

Feedback: Programming Languages, p. 402 Difficulty: Easy

19. Extensible Markup Language (XML) describes where an item appears on a page, where Hypertext Markup Language (HTML) describes what the item is.

Ans: False. XML describes data and information, while HTML is used to help build web pages and display data on web pages.

Feedback: Programming Languages, p. 403 Difficulty: Easy

Technology Guide 2: Computer Software

20. XML can be used to send complex messages that include different files.

Ans: True Feedback: Programming Languages, p. 403 Difficulty: Easy

Multiple Choice

1. Sequences of instructions used to direct the workings of a computer are called: A. Computer programs B. Microcode instructions C. Assembler commands D. XML Ans: A Feedback: Significance of Software, p. 392 Difficulty: Easy

2. Modern computers work by accessing programs and executing them in the computer’s CPU. Once the program has finished executing, a new program is loaded into the main memory, and the computer hardware addresses another task. This process is called: A. Task manager system B. Stored program concept C. Flow-through processing D. Program management Ans: B Feedback: Significance of Software, p. 392 Difficulty: Easy

3. A written description of a computer program’s functions is called: A. Explanatory instructions B. Documentation C. Graphical user interface D. Plug and play Ans: B Feedback: Significance of Software, p. 393 Difficulty: Easy

4. Computer hardware is general purpose. Operating systems together with application software enable a system to: A. Perform specific functions that add business value B. Provide most tasks required by modern businesses C. Perform specific functions that apply to all businesses D. Provide versatile systems that will function in all business areas

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Ans: A Feedback: Significance of Software, p. 393 Difficulty: Easy

5. Which of the following is a set of instructions that serves primarily as an intermediary between computer hardware and application programs?

A. Application details B. Configuration maps C. Searching systems D. System software Ans: D Feedback: Significance of Software, p. 393 Difficulty: Easy

6. Which of the following provides important self-regulatory functions for computer system, such as loading itself when the computer is first turned on, and providing commonly used sets of instructions?

A. Application software B. Configuration maps C. Searching systems D. System software Ans: D Feedback: Significance of Software, p. 393 Difficulty: Easy

7. The set of computer programs used that controls and supports the computer system and its informationprocessing activities is called: A. Microsoft Office Suite B. application software C. general software D. systems software Ans: D Feedback: Systems Software, p. 394 Difficulty: Easy

8. The main system control program is the A. operating system B. cache software C. virtual memory D. security monitor Ans: A Feedback: Systems Software, p. 394 Difficulty: Easy

Technology Guide 2: Computer Software

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9. System software that acts as the master controller for all of the activities that take place within a computer system is called: A. operating system B. system support program C. system utility program D. system performance monitor Ans: A Feedback: Systems Software, p. 394 Difficulty: Medium

10. When two or more programs can run on the computer system at the same time, this is called: A. Multithreading B. Multitasking C. Scalability D. Multiprocessing Ans: B Feedback: Systems Software, p. 394 Difficulty: Medium

11. When the operating system provides process and memory management services that allow two or more programs to run simultaneously, this is called: A. virtual B. multi-user C. network D. multitasking Ans: D Feedback: Systems Software, p. 394 Difficulty: Easy

12. When several parts of the same application can work simultaneously this is called: A. Multithreading B. Multitasking C. Time-sharing D. Multiprocessing Ans: A Feedback: Systems Software, p. 394 Difficulty: Easy

13. When a computer system with two or more processors runs more than one program, or thread, at a given time by assigning them to different processors this is called: A. Multithreading B. Multitasking

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

C. Scalability D. Multiprocessing Ans: D Feedback: Systems Software, p. 395 Difficulty: Easy

14. Which process divides an application program or module into fixed-length portions called pages?

A. Virtual memory B. Application programs C. System performance monitors D. System security monitors Ans: A Feedback: Systems Software, p. 395 Difficulty: Medium

15. Which of the following has a large effect on the ease or difficulty of the interaction between the user and the computer?

A. Programming language B. Interface design C. Operating system speed D. Age of application program Ans: B Feedback: Systems Software, p. 396 Difficulty: Easy

16. Which of the following types of interfaces uses short-form (cryptic) commands?

A. GUI (graphical user interface) B. Visual interface C. Natural user interface D. DOS (Disk operating system) Ans: D Feedback: Systems Software, p. 395 Difficulty: Medium

17. Which of the following allows users to exert direct control of visual objects such as icons on the computer screen?

A. systems software B. application software C. graphical user interface D. plug-and-play Ans: C Feedback: Systems Software, p. 395 Difficulty: Easy

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18. Which interface provides virtual reality, head-mounted displays, speech input and output, pen and gesture recognition and animation?

A. GUI (graphical user interface) B. Visual interface C. Natural user interface D. Social interface Ans: C Feedback: Systems Software, p. 395 Difficulty: Easy

19. Which interface guides the user through computer applications by using cartoon-like characters, graphic, animation and voice commands?

A. GUI (graphical user interface) B. Visual interface C. Natural user interface D. Social interface Ans: D Feedback: Systems Software, p. 395 Difficulty: Easy

20. Which interface is one that allows the user to feel a sense of touch by applying forces, vibrations and/or motions to the user?

A. GUI (graphical user interface) B. Haptic interface C. Natural user interface D. Social interface Ans: B Feedback: Systems Software, p. 395 Difficulty: Hard

21. The Wiki video game console by Nintendo, which recognizes movements, is a good example of which type of interface?

A. GUI (graphical user interface) B. Haptic interface C. Natural user interface D. Social interface Ans: B Feedback: Systems Software, p. 395 Difficulty: Hard

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22. Which type of operating environment is a user interface where the user stands or sits in front of one or more computer screens, and gestures with gloved hands to move images around, touch virtual objects, trace shapes or navigate complex data?

A. graphical B. Haptic C. Natural D. Spatial Ans: B Feedback: Systems Software, p. 395 Difficulty: Hard

23. Programs that sort records and create directories and sub-directories are called: A. System utilities B. General application software C. Personal application software D. System performance monitors Ans: A Feedback: Systems Software, p. 397 Difficulty: Easy

24. Programs that manage the processing of jobs on a computer system are called: A. System utilities B. General application software C. Personal application software D. System performance monitors Ans: D Feedback: Systems Software, p. 397 Difficulty: Easy

25. Programs that protect a computer system from unauthorized use, fraud, and destruction are called: A. System utilities B. Personal application software C. System performance monitors D. System security monitors Ans: D Feedback: Systems Software, p. 397 Difficulty: Easy

26. The set of computer instructions that provides specific functionality to a user is called A. transaction processing software B. application software C. general software D. systems software

Technology Guide 2: Computer Software

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Ans: B Feedback: Application Software, p. 397 Difficulty: Easy

27. Which of the following programs are often used when analyzing financial data?

A. Database B. Word processing C. Spreadsheet D. Graphics Ans: C Feedback: Application Software, p. 398 Difficulty: Easy

28. Which of the following category of personal application software is used to manipulate primarily text with many writing and editing features?

A. Presentation B. Word processing C. Spreadsheet D. Graphics Ans: B Feedback: Application Software, p. 398 Difficulty: Easy

29. Which of the following category of personal application software extends word processing software to allow for the production of finished, camera ready documents which may contain photographs, diagrams, and other images combined with text in different fonts?

A. Desktop publishing B. Word processing C. Spreadsheet D. Graphics Ans: A Feedback: Application Software, p. 398 Difficulty: Easy

30. Which of the following categories of personal application software allows users to store, retrieve and manipulated related data?

A. Presentation B. Data management C. Personal finance management D. Graphics Ans: B Feedback: Application Software, p. 398 Difficulty: Easy

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31. Which of the following categories of personal application software allows users to create and maintain calendars, appointments, to-do lists, and business contacts?

A. Presentation B. Word processing C. Personal information management D. Graphics Ans: C Feedback: Application Software, p. 398 Difficulty: Easy

32. Which of the following categories of personal application software allows users to maintain chequebooks, track investments, monitor credit cards and bank and pay bills electronically?

A. Presentation B. Word processing C. Spreadsheet D. Personal finance Ans: D Feedback: Application Software, p. 398 Difficulty: Easy

33. Which of the following refers to competing computing products working together?

A. open source software B. software-as-a-service C. object oriented software D. open systems Ans: D Feedback: Open Systems, p. 399 Difficulty: Easy

34. Software whose source code is available at no cost to developers and users is called: A. Freeware B. Shareware C. Open systems D. Open source software Ans: D Feedback: Open Systems, p. 400 Difficulty: Easy

35. Which of the following types of no cost software does not allow access to the underlying source code?

A. Freeware B. Shareware C. Open systems

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D. Open source software Ans: B Feedback: Open Systems, p. 400 Difficulty: Easy

36. Which of the following types of software is no cost software that is copyrighted yet is made available to the user at no cost for an unlimited time?

A. Freeware B. Shareware C. Open systems D. Open source software Ans: A Feedback: Open Systems, p. 400 Difficulty: Easy

37. What do developers use to write new application and systems software?

A. code generators B. applets C. programming languages D. developer workbenches Ans: C Feedback: Programming Languages, p. 401 Difficulty: Easy

38. A computer’s microprocessor only understands which of the following languages?

A. high-level B. machine C. script D. source Ans: B Feedback: Programming Languages, p. 401 Difficulty: Easy

39. When a small amount of data and the instructions about what to do with that data are combined, the result is a(n): A. utility program B. object C. template D. applet Ans: B Feedback: Programming Languages, p. 401 Difficulty: Easy

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40. Place the following programming languages in order of programmer ease of use, from easiest to most difficult: A. machine language – assembly language – procedural language – non-procedural language B. assembly language – machine language – procedural language – non-procedural language C. non-procedural language – procedural language – assembly language – machine language D. non-procedural language – procedural language – machine language – assembly language Ans: C Feedback: Programming Languages, p. 402 Difficulty: Medium

41. Which programming language consists entirely of 0’s and 1’s?

A. Machine language B. Assembly language C. Procedural language D. Non-procedural language Ans: A Feedback: Programming Languages, p. 402 Difficulty: Easy

42. Which programming language uses mnemonics to help users with programming?

A. Machine language B. Assembly language C. Procedural language D. Non-procedural language Ans: B Feedback: Programming Languages, p. 402 Difficulty: Easy

43. Which programming language requires the programmer to specify, step by step, exactly how the computer must accomplish a task? For example: Basic and COBOL. A. Machine language B. Assembly language C. Procedural language D. Non—procedural language Ans: C Feedback: Programming languages, p. 402 Difficulty: Medium

44. Which programming language simplifies and accelerates the programming process by allowing the user to specify the desired result without having to specify step-by-step procedures?

A. Machine language B. Assembly language

Technology Guide 2: Computer Software

C. Procedural language D. Non—procedural language Ans: D Feedback: Programming languages, p. 402 Difficulty: Easy

45. Languages that use icons, symbols, and pull-down menus to develop applications are called: A. object-oriented languages B. second generation languages C. visual programming languages D. third generation languages Ans: C Feedback: Programming Languages, p. 402 Difficulty: Easy

46. One of the primary advantages of an object is that it contains the following feature: A. reusable code B. reusable data C. embedded graphics D. messages Ans: A Feedback: Programming Languages, p. 402 Difficulty: Easy

47. Java is an object-oriented language which enables programmers to develop applications that work across the Internet. Java can handle text, data, graphics, sound and video. What type of programming language is Java?

A. Assembly language B. Procedural language C. Non—procedural language D. Visual programming language Ans: D Feedback: Programming languages, p. 402 Difficulty: Easy

48. Small applications developed using the Java programming language, which can be included in an HTML page on the internet are called: A. Objects B. Applets C. Pages D. Tags Ans: B Feedback: Programming languages, p. 402

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Difficulty: Easy

49. Which of the following languages is used for creating and formatting documents on the World Wide Web? A. Basic B. Java C. HTML D. XML Ans: C Feedback: Programming languages, p. 402 Difficulty: Easy

50. Which of the following languages improves the functionality of web documents by describing what the data in the documents actually mean, ad identifying the business purpose of the documents themselves?

A. Basic B. Java C. HTML D. XML Ans: D Feedback: Programming languages, p. 402 Difficulty: Easy

Short Answer and Discussion Questions

1. Discuss the reasons that software is now more costly than hardware in today’s information systems.

Feedback: Significance of Software, p. 392-394

2. Discuss the impact of software defects.

Feedback: Significance of Software, p. 392-394

3. Explain the relationship between systems software and application software.

Feedback: Significance of Software and Systems Software, p. 394-399

4. Differentiate between the various types of operating systems.

Feedback: Systems Software, p. 395-396

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5. Describe the types of system support programs.

Feedback: Systems Software, p. 397

6. Describe the various types of application software.

Feedback: Application Software, p. 397-399

7. What are the advantages and disadvantages of open-source software?

Feedback: Open Systems, p. 399-400

8. Describe the five generations of programming languages.

Feedback: Programming Languages, p. 401-402

9. Differentiate between XML and HTML. Feedback: Programming Languages, p. 402-403

10. Describe the benefits of object-oriented programming languages.

Feedback: Programming Languages, p. 401-402

Cases

1. Your firm, ABM Inc., is an international software developer and hardware manufacturer. The company has locations around the world and employs thousands of people. It markets software in all sectors – by industry (for example, banking and retail) and by software type (for example operating systems, database management systems, functional software).

ABM’s software can be used with a variety of infrastructures (small and large) and for different types of data communications. This means that organizations can purchase ABM’s software for use internally, or for external use, and for small internal systems through to larger systems that involve international data communications.

Required: A) Describe the role of application systems versus operating systems for the software that ABM sells.

(2 marks)

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Feedback: Significance of Software, p. 393-394 Suggested Solution: - since ABM sells to a variety of sizes and complexity of systems, this means that its software needs to work with multiple types of operating systems - its applications will need to be written and tested to work on multiple types of operating systems - all applications require operating systems to run effectively B) For each of the following types of interfaces, describe the interface and discuss why (or why not) ABM should incorporate the interface into its software. (6 marks) • Text-based interface • Graphical user interface • Haptic interface Feedback: Systems Software, p. 395 Suggested Solution: Description of interface Text-based interface: uses typed text which could be cryptic commands to provide instructions to the software

Graphical user interface: allows users to use icons (visible objects) to control the application

Haptic interface: allows the user to feel a sense of touch by applying forces, vibrations or motions

Discussion of why (or why not) ABM should incorporate the interface into its software - this would be suitable as long as the commands are easy to use, for some limited use software such as communications software - for other types of software that are used by many individuals, this would likely slow down usage and frustrate users to learn many text-based commands - this interface may be the most appropriate for larger mainframe clients - since this makes software easy to use, this would be the most appropriate interface for ABM to incorporate into its software - for clients using mainframes, the extent of GUI interface may be limited due to the capabilities of mainframe operating systems - this would not be suitable for ABM, since force or movement could affect the ability of software and hardware to function effectively - it might be suitable for some software for emergency actions, such as shut down procedures

2. As a summer job you have been hired as an intern in the internal audit department of a large national retail organization. As part of your job, you will be assisting with a vulnerability assessment prior to conducting a risk assessment.

Then, the team will consider how controls in could affect privacy at the organization, prior to testing these controls.

Required: Describe how you could use personal application software to assist you in your job. (5 marks) Feedback: Application Software, p. 398

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Suggested Solution: [Note that other examples are possible] Spreadsheets: could be used to summarize time spent or details of transactions that are examined Word processing: could be used to write up audit programs or document work that has been completed or used to write reports Desktop publishing: could be used to prepare internal company newsletters or training materials Presentation software: could be used to prepare presentations to summarize the results of the audit Graphics software: could be used to prepare graphical summarizes of work done and results Personal information management: could be used to schedule appointments, such as interviews Communications: could be used to communicate with team members 3. Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

Required: The car dealership uses open-source software (Linux) on its network servers. State three advantages or disadvantages of open source software for the dealership. (3 marks) Feedback: Open Systems, p. 399-400 Suggested Solution: Advantages • Source code is freely available at no cost to developers and users • High quality, flexible code, considered to be more reliable • Access to worldwide communities of developers who write and maintain the code so bugs are discovered and fixed quickly • Support available for education, training and technical support by firms that provide products derived from the software Disadvantages • May not have in-house technical experts which creates dependency on maintenance support contracts from third parties • May have compatibility issues with existing systems and with systems used by business partners • Extensive time and expense to train users • Open source software is not considered to be easy to use

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Technology Guide 3: Protecting Your Information Assets

True/False

1. As businesses improve their information security, organized crime is turning its attention to home users.

Ans: True Feedback: Technology Guide Overview, p. 408 Difficulty: Easy

2. You will face social engineering attacks at work but not typically at home.

Ans: False. Both home and business users are vulnerable.

Feedback: Technology Guide Overview, p. 408 Difficulty: Easy

3. You should ask whether or not your social insurance number is necessary for identification, or if any combination of nine numbers and letters will do just as well.

Ans: True Feedback: Behavioural Actions, p. 409 Difficulty: Easy

4. Using credit cards with your photographs on them will decrease your information security because clerks will look for your signature.

Ans: False. It increases security because the photo can be matched to your face.

Feedback: Behavioural Actions, p. 409 Difficulty: Easy

5. Virtual credit cards cannot be used for in-store purchases that require a traditional plastic card.

Ans: True Feedback: Behavioural Actions, p. 409 Difficulty: Easy

6. You should keep close track of your credit card billing cycles.

Ans: True Feedback: Behavioural Actions, p. 409 Difficulty: Easy

Technology Guide 3: Protecting Your Information Assets

7. You should use debit cards online, because they are directly linked to your bank account and therefore, you cannot overspend.

Ans: False. The use of your debit card should be limited to prevent access to your cash Feedback: Behavioural Actions, p. 410 Difficulty: Easy

8. Your credit card company bears the liability for fraudulent charges, regardless of when you notify them.

Ans: False. The credit card company needs to be notified within 60 days.

Feedback: Behavioural Actions, p. 410 Difficulty: Easy

9. You should limit the use of a mailbox at your home.

Ans: True Feedback: Behavioural Actions, p. 410 Difficulty: Easy

10. A single-cut shredder is sufficient to shred your documents at home, where a cross-cut (confetti) shredder is necessary at work because of the sensitivity of the documents there.

Ans: False. A confetti shredder should be used for all confidential documents.

Feedback: Behavioural Actions, p. 410 Difficulty: Easy

11. Companies that provide proactive protection of your personal information state that they allow customers to lock their credit files.

Ans: True Feedback: Behavioural Actions, p. 410 Difficulty: Easy

12. It is possible for criminals to gain information about many people from social networking sites.

Ans: True Feedback: Computer-Based Actions, p. 413 Difficulty: Easy

13. Installing a security suite on your system is ample protection for your data and programs.

Ans: False. The malware definitions should be updated frequently to keep the security suite effective.

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Feedback: Computer-Based Actions, p. 416 Difficulty: Easy

14. You should update your definitions before scanning your system with anti-malware software.

Ans: True Feedback: Computer-Based Actions, p. 416 Difficulty: Easy

15. One way to help with spam is to set up multiple free e-mail accounts.

Ans: True Feedback: Computer-Based Actions, p. 418 Difficulty: Easy

Multiple Choice

1. Which of the following is the first step that should be taken before implementing security actions?

A. Take a backup copy of all programs and data and store it off site B. Make an inventory of the types of information being used, stored or accessed C. Encrypt all of your information so that it can only be accessed by you D. Make sure that you have difficult to guess passwords for your systems Ans: B Feedback: Technology Guide Overview, p. 408 Difficulty: Easy

2. Which of the following is an important general behavioural action that will improve benefit your information security?

A. Take frequent backup of your data and programs, and make sure that it is encrypted B. Use good quality security software that is updated frequently C. Avoid providing personal information to strangers in any format (physical, verbal or electronic) D. Change your passwords and make sure that they are a combination of letters and numbers Ans: C Feedback: Behavioural Actions, p. 409 Difficulty: Easy

3. What is an action that you can take to protect your social insurance number?

A. Ask if an alternative number, such as your telephone number, would be sufficient B. Provide the incorrect social insurance number, to avoid identifying yourself C. Refuse to provide your social insurance number under any circumstances D. Use your friend’s social insurance number instead of your own

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Technology Guide 3: Protecting Your Information Assets

Ans: A Feedback: Behavioural Actions, p. 409 Difficulty: Easy

4. Which of the following improves security over the use of credit cards?

A. Use a signature on the back of the card that is very difficult to read B. Write the words “ask for photo identification” in the signature space C. Sign the credit card in pen so that it cannot be erased or altered D. Remove the RFID (radio frequency identification) chip from your cards Ans: B Feedback: Behavioural Actions, p. 409 Difficulty: Easy

5. Which of the following offers you the option of shopping online with a disposable credit card number?

A. credit card B. debit card C. driver’s license D. virtual credit card Ans: D Feedback: Behavioural Actions, p. 409 Difficulty: Easy

6. If your credit card is stolen and is being used fraudulently, the first thing the thief does is change the address on the account. How can you protect yourself?

A. Pay all of your credit cards using e-banking B. Pay close attention to your credit card billing cycles C. Destroy your credit card statements as soon as you have paid your bill D. Use a confetti shredder for all of your personal documents Ans: B Feedback: Behavioural Actions, p. 409 Difficulty: Medium

7. When you make purchases online, which of the following types of payment method should you avoid?

A. Debit card B. Credit card C. Smart card D. Virtual credit card Ans: A Feedback: Behavioural Actions, p. 410 Difficulty: Easy

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8. If your credit card is taken over by someone else (i.e. credit card identity theft), when should you notify your credit card company?

A. As soon as you find out, there is no time limit B. When the amount stolen exceeds $50 C. Immediately, but it must be within 60 days D. Within one year Ans: C Feedback: Behavioural Actions, p. 410 Difficulty: Easy

9. What is the best way to get rid of old confidential documents?

A. Recycle them B. Use a confetti shredder C. Burn them D. Mark up the confidential parts and then recycle them Ans: B Feedback: Behavioural Actions, p. 410 Difficulty: Easy

10. If your identity is stolen, what is the first thing you should do?

A. Contact Service Canada.

B. Cancel all affected credit cards and obtained new cards if necessary.

C. Open a file with all your paperwork.

D. File a detailed police report.

Ans: A Feedback: Behavioural Actions, p. 411 Difficulty: Medium

11. Which of the following tools could you use to determine whether someone else has used your computer for Internet browsing?

A. Anti-virus software (check history) B. Internet Explorer (check history) C. Operating system software (check logs) D. System utilities (check logs) Ans: B Feedback: Computer-Based Actions, p. 413 Difficulty: Medium

12. Which of the following are a good source of personal information for individuals who would like to steal your identity?

A. Social networks B. Library records C. Disk drive logs D. Internet browsing history

Technology Guide 3: Protecting Your Information Assets

Ans: A Feedback: Computer-Based Actions, p. 413 Difficulty: Easy

13. To improve security when you use a social networking site, what should you do?

A. Avoid using your real name B. Do not post pictures of yourself C. Keep your schedule private D. Set your profiles to private Ans: D Feedback: Computer-Based Actions, p. 413 Difficulty: Easy

14. Which of the following software can you use to determine if your computer is infected with malicious software that is using memory?

A. Word processing B. DOS (Disk operating systems) C. Spreadsheet D. Windows utility software Ans: B Feedback: Computer-Based Actions, p. 414 Difficulty: Medium

15. Which of the following is a possible indicator that your computer is infected with malicious software?

A. You receive notifications that software updates need to be installed B. Software patches for your operating system have not been installed C. Your anti-malware software has not been updated for two months D. Your computer shuts down unexpectedly by itself Ans: D Feedback: Computer-Based Actions, p. 414 Difficulty: Easy

16. Which of the following is a possible indicator that your computer is infected with malicious software?

A. You receive notifications that software updates need to be installed B. Software patches for your operating system have not been installed C. Your anti-malware software has not been updated for two months D. Your computer refuses to start normally Ans: D Feedback: Computer-Based Actions, p. 414 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

17. Which of the following is a possible indicator that your computer is infected with malicious software?

A. You receive notifications that software updates need to be installed B. Software patches for your operating system have not been installed C. Your anti-malware software has not been updated for two months D. Your monitor displays strange graphics or messages Ans: D Feedback: Computer-Based Actions, p. 414 Difficulty: Easy

18. Software that has anti-malware software, spam protection and spyware detection is called: A. Security software B. Office software C. Artificial intelligence D. Security gate software Ans: A Feedback: Computer-Based Actions, p. 414 Difficulty: Easy

19. Before running anti-malware software, to improve its effectiveness you should: A. Take a backup of your data files B. Update the malware definitions C. Install operating system patches D. Install application software patches Ans: B Feedback: Computer-Based Actions, p. 415 Difficulty: Easy

20. Software installed on your computer that controls communications to and from your computer by permitting or denying communications based on your security settings is best described as: A. proactive monitoring package B. anti-spyware package C. anti-malware package D. personal firewall Ans: D Feedback: Computer-Based Actions, p. 416 Difficulty: Medium

21. Which software logs keystrokes, e-mails, applications, windows, websites, Internet connection, passwords, chat conversations, web cams, and screenshots?

A. Firewall B. Anti-malware C. Monitoring D. Content filtering

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Technology Guide 3: Protecting Your Information Assets

Ans: C Feedback: Computer-Based Actions, p. 417 Difficulty: Easy

22. Software that can block access to undesirable websites and record and view all websites visited is called: A. Content filtering software B. Monitoring software C. Firewall D. Antispyware Ans: A Feedback: Computer-Based Actions, p. 417 Difficulty: Easy

23. Software that can record both sides of chat conversations from messenger services is called: A. Content filtering software B. Monitoring software C. Firewall D. Antispyware Ans: A Feedback: Computer-Based Actions, p. 417 Difficulty: Easy

24. In addition to installing anti-spam software, to reduce spam you should: A. Use different names when you send out email B. Set up multiple free e-mail accounts C. Use anti-virus software D. Install content filtering software Ans: B Feedback: Computer-Based Actions, p. 418 Difficulty: Easy

25. Which of the following attacks is the one most closely associated with downloading and installing patches immediately?

A. Denial of service B. Zero day attacks C. Distributed denial-of-service D. Viruses Ans: B Feedback: Computer-Based Actions, p. 418 Difficulty: Hard

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26. Why is it important to download and install software patches immediately?

A. To receive less unwanted emails (spam) B. For more efficient computer operations C. For effective hard disk usage D. To avoid zero-day attacks Ans: D Feedback: Computer-Based Actions, p. 418 Difficulty: Easy

27. Why would you use a browser other than Internet Explorer?

A. They provide faster web site access B. They are more frequently upgraded C. Hackers pay less attention to them D. It results in less spam emails Ans: C Feedback: Computer-Based Actions, p. 419 Difficulty: Easy

28 Why would you use Apple’s Mac OS X or Linux as your operating system? What makes them secure is that A. You will get less spam emails B. They are harder to operate C. It will be easier to manage your system D. They are UNIX based Ans: D Feedback: Computer-Based Actions, p. 419 Difficulty: Easy

29. When you use both a token and a personal password to access your laptop or computing system you are using: A. Two-factor authentication B. Two-factor identification C. Two-factor protection D. Multi-factor identification Ans: A Feedback: Computer-Based Actions, p. 420 Difficulty: Medium

30. Which of the following devices generates a one-time password that you must enter within a specified time limit?

A. Packet B. Token C. Tag D. Page

Technology Guide 3: Protecting Your Information Assets

Ans: B Feedback: Computer-Based Actions, p. 420 Difficulty: Easy

31. When you turn data into meaningless symbols, decipherable only by an authorized person, you are using: A. Two-factor authentication B. Biometrics C. Encryption D. Multi-factor authentication Ans: C Feedback: Computer-Based Actions, p. 420 Difficulty: Easy

32. When you implement Protected Mode in your browser (such as Internet Explorer), what do you prevent?

A. Having your system flooded with too many emails B. Inefficient use of memory in your main central processing unit C. Having your email distribution list read by unauthorized users D. Unauthorized implementation or execution of software Ans: D Feedback: Computer-Based Actions, p. 421 Difficulty: Medium

33. Which of the following is an indicator that your system may be infected by a worm? Your A. System exhibits unexplained hard disk activity B. System is being flooded with too many emails C. In-basket for your email has a lot of spam as well as regular mail D. Time clock on the computer is incorrect Ans: A Feedback: Computer-Based Actions, p. 423 Difficulty: Medium

34. Which of the following is an indicator that your system may be infected by a worm? Your A. System connects to the Internet by itself without any action on your part B. System is being flooded with too many emails C. In-basket for your email has a lot of spam as well as regular mail D. Time clock on the computer is incorrect Ans: A Feedback: Computer-Based Actions, p. 423 Difficulty: Medium

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

35. Which of the following is an indicator that your system may be infected by a worm? Your A. System seems to be short of available memory B. System is being flooded with too many emails C. In-basket for your email has a lot of spam as well as regular mail D. Time clock on the computer is incorrect Ans: A Feedback: Computer-Based Actions, p. 423 Difficulty: Medium

36. Malicious programs disguised as, or embedded within legitimate software are called: A. Worms B. Trojan horses C. Zero-day D. Spam Ans: B Feedback: Computer-Based Actions, p. 423 Difficulty: Easy

37. One characteristic of peer-to-peer networks is that they A. Use central file servers to distribute songs or music B. Have many different clients retrieving music C. Act as both clients and servers D. Have many different servers available for rapid service Ans: C Feedback: Computer-Based Actions, p. 423 Difficulty: Easy

38. Which of the following either originates on, or is sent to, the website that you are currently viewing?

A. tracking cookie B. monitoring cookie C. second-party cookie D. first-party cookie Ans: D Feedback: Computer-Based Actions, p. 426 Difficulty: Easy

39. Which of the following either originates on, or is sent to, a different website than the one you are currently viewing?

A. tracking cookie B. monitoring cookie C. second-party cookie D. third-party cookie

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Technology Guide 3: Protecting Your Information Assets

Ans: D Feedback: Computer-Based Actions, p. 426 Difficulty: Easy

40. Which of the following usually provide some content on the web site you are viewing, such as advertising?

A. first-party cookie B. monitoring cookie C. second-party cookie D. third-party cookie Ans: D Feedback: Computer-Based Actions, p. 426 Difficulty: Easy

41. Which of the following would be used to track your web page use?

A. first-party cookie B. monitoring cookie C. second-party cookie D. third-party cookie Ans: D Feedback: Computer-Based Actions, p. 426 Difficulty: Easy

42. Which of the following is a computer to which you connect, that in turn connects to the website you wish to visit?

A. proxy server B. Internet server C. intermediate server D. backbone server Ans: A Feedback: Computer-Based Actions, p. 427 Difficulty: Easy

43. To provide anonymous access to the internet, a proxy server is used as the computer A. with external access B. acting as a backup C. performing file handling D. accessing user permissions Ans: A Feedback: Computer-Based Actions, p. 427 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

Short Answer and Discussion Questions

1. Why is it so important to protect your information assets?

Feedback: Technology Guide Overview, p. 408

2. Discuss the pros and cons of using credit cards or debit cards in an online environment.

Feedback: Behavioural Actions, p. 409-411

3. Discuss the benefits of using the services of companies who provide proactive protection of your personal information.

Feedback: Behavioural Actions, p. 410-411

4. Describe the actions you should take if your identity is stolen.

Feedback: Behavioural Actions, p. 411-412

5. Discuss the dangers of social networking websites.

Feedback: Computer-Based Actions, p. 413-414

6. Describe the functions of anti-malware software on your computer.

Feedback: Computer-Based Actions, p. 414-416

7. What functions should a personal firewall provide for you?

Feedback: Computer-Based Actions, p. 416-417

8. What functions should you expect from monitoring software on your computer?

Feedback: Computer-Based Actions, p. 417

9. What functions should you expect from content filtering software on your computer?

Feedback: Computer-Based Actions, p. 417-418

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Technology Guide 3: Protecting Your Information Assets

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10. Describe the steps you should take to protect yourself when computing wirelessly.

Feedback: Computer-Based Actions, p. 430-432

Cases

1. Bellwood College has switched to using electronic readers rather than paper-based textbooks. Students are issued a reader that gives them access to the textbooks that are listed as required for their courses at no additional charge. The publishing fee for the texts, paid to one Canadian publisher, means that the College is now using textbooks from only that publisher. It also means that the College will be spending less on new library acquisitions, since the licence fee for the books is coming from the College library budget.

Students at the College also have access to the College’s email systems, web sites, and a computer lab with a variety of software, as well as a wireless network.

The College Store sells a variety of products in addition to books: these include uniforms, stationary and art supplies. There is also a full service restaurant on campus, which is open to the public, run by students.

Recently, the College has started a campaign for students to bring non-students to the restaurant, by offering free deserts to students who bring a new person to the restaurant.

The College Student Council has set up a web site where students can sell their art work or other products that they have developed or created. Five percent of the sale price goes to the Student Council, and the rest goes to the student.

Required: A) What are some warning signs that a Bellwood College student’s reader might be infected with a virus or other malware? (3 marks) Feedback: Computer-Based Actions, p. 423 Suggested Solution: Characteristics of malicious programs include: - unexplained hard disk activity - connection to the Internet without any action on the student’s part - apparently not enough memory - unusual emails being distributed to people on your email list without your knowledge B) One of the students at Bellwood College has just recently discovered that he is the victim of identity theft. What should he do? (5 marks) Feedback: Behavioural Actions, p. 411-412 Suggested Solution: - Determine the scope or nature of the identify theft (i.e. was a credit card compromised, a bank account, social insurance number or all of these?)

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- Contact the appropriate organization to have the documentation corrected or replaced; close affected bank accounts and credit cards and have new numbers issued - Determine whether refunds are possible and fill in necessary reports and documents to obtain refunds: this will likely require the filing of a police report - Stay organized, and keep all paperwork and details of those you contact - If necessary, contact and obtain the assistance of a lawyer - If your credit is affected (depending upon how much was stolen), contact credit rating agencies to issue a fraud alert [Refer to pages 411-412 for additional examples.]

2. BestPay Inc. is an online service provider of payroll processing in Winnipeg, Manitoba, with over 125,000 customers. A review of the web site reveals that the organization is full service: you can purchase payroll software, or access systems online. BestPay provides payroll, human resources, retirement planning and tax services. Employees can even log on and use the systems as an internet-based time clock.

Required: Your company is a small employer with ten employees that uses BestPay Inc. for payroll processing.

Explain to your boss the different types of anti-malware protection that are available and their purpose. (5 marks) Feedback: Computer-Based Actions, p. 415-418) Suggested Solution: Security suite: These packages contain a variety of security products such as anti-malware, spam protection, e-mail fraud protection, spyware detection, intrusion detection, monitoring software and others.

They provide broad protection.

Anti-malware product: By using this product and updating the anti-malware definitions frequently, the company could protect itself from viruses.

Firewall: Firewalls control communications and have security settings that can be used to permit or deny communications. They could be used to prevent access from unauthorized web sites or prevent employees from accessing unauthorized web sites.

Antispyware: thes can be used to prevent spyware software.

Monitoring software: These can be used to log keystrokes. These can be used by the company to monitor productivity or to see where employees go when they use the Internet.

Content Filtering software: This can be used to block access to undesirable web sites and record and view web sites visited.

Anti-spam software: This can be used to prevent excessive spam.

3. Lovely Hands Company (LHC) is a jewelry store that specializes in diamond rings, Rolex watches and precious stone ornaments, such as diamond earrings. LHC’s products start at $500 and go upwards to a few high end items that sell for hundreds of thousands of dollars. The in-store jeweler, a master craftsman, designs products for his customers, and is world-renowned for his original designs.

LHC is considering embedding tiny RFID chips, called the Memory Spot, on the inside of each jewelry item in inconspicuous locations. At a size only slightly larger than the tip of a pencil, the Memory Spot can easily be placed upon products in places where they are difficult to remove without the proper tools. The jeweler would be responsible for embedding and removing these chips. For low-end products (those that sell for less than $2,000), the chips would be permanently installed, while for high-end products they would be removed after customer payment by the jeweler, at the option of the customer.

The Memory Spot does not require a power source, as it uses power from the magnetic field generated by the wireless sensor network or by some wireless devices. The Memory Spot will contain information such as the materials present in the item (e.g. gold, platinum, emerald, or diamond), the item serial number, and its sales price. It will also contain the name and address of the store, and tracking software that can be

Technology Guide 3: Protecting Your Information Assets

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remotely triggered in the event that the item is stolen. Since the Memory Spot reader must be very close to the item, the inside of the display cases will be fitted with readers, and trigger devices that can be turned on by employees with a foot button in the event of a robbery. The software will also be activated when the store closes at the end of the day, and deactivated when the store opens.

At time of purchase, store equipment will read the Memory Spot, match the information to the customer invoice, and transfer to the Memory Spot the customer’s name and address. In addition to using wireless systems for the Memory Spot, the store’s local area network is also enabled using wireless technology.

Required: Describe actions that the company can take to protect its wireless systems.

Feedback: Computer-Based Actions, p. 430-432 Suggested Solution: Hide the Service Set Identifier (SSID): The company’s wireless network will have an identifier associated with its router. The default SSID should be changed and the network configured so that it does not broadcast the SSID. Use encryption: All data sent via the network should be encrypted using current encryption standards.

Filter out MAC (Media Access Control) addresses: Since each piece of equipment has a unique identification number called a MAC, the network should be configured so that only authorized equipment can use the network. The router can be instructed (programmed) to accept only authorized equipment.

Limit IP (Internet Protocol) addresses: The router should be programmed to accept only specific IP addresses.

Sniff out intruders: The company should have intrusion detection software to detect unauthorized traffic on the network.

Wireless security programs: The company should purchase and use anti-malware software.

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Technology Guide 4: Telecommunications, Networks, and the World Wide Web

True/False

1. Telecommunications systems can transmit text, data, graphics, voice, documents, and full motion video information.

Ans: True Feedback: The Telecommunications System, p. 436 Difficulty: Easy

2. Digital signals are continuous waves that transmit information by altering the characteristics of the waves.

Ans: False. Digital signals are discrete pulses that are either on or off.

Feedback: The Telecommunications System, p. 436 Difficulty: Easy

3. Digital signals have two parameters, frequency and amplitude.

Ans: False. This applies to analog signals.

Feedback: The Telecommunications System, p. 436 Difficulty: Easy

4. The basic components of a telecommunications system are devices, communications processors, communications channels and media, and networking software.

Ans: True Feedback: The Telecommunications System, p. 437 Difficulty: Easy

5. Multiplexers are expensive and raise communications costs by allowing devices to maximize the use of communications channels.

Ans: False. They lower costs by allowing devices to share communications channels.

Feedback: The Telecommunications System, p. 437 Difficulty: Easy

6. Twisted-pair wire is the most prevalent form of communications wiring.

Ans: True Feedback: The Telecommunications System, p. 438 Difficulty: Easy

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

7. Coaxial cable media use wires or cables to transmit data and information.

Ans: True Feedback: The Telecommunications System, p. 438-439 Difficulty: Easy

8. Cladding is the coating that surrounds fibre-optic cables and prevents light from leaking out of the fibre.

Ans: True Feedback: The Telecommunications System, p. 439 Difficulty: Easy

9. Integrated services digital network uses existing telephone lines.

Ans: True Feedback: The Telecommunications System, p. 440 Difficulty: Easy

10. Modems are not necessary with digital subscriber lines.

Ans: False. Modems are needed because the signals are analog.

Feedback: The Telecommunications System, p. 440 Difficulty: Easy

11. Asynchronous transfer mode is cheaper than ISDN and DSL. Ans: False. It is more expensive.

Feedback: The Telecommunications System, p. 440 Difficulty: Easy

12. Currently, ATM networks operate only on fibre-optic cable.

Ans: True Feedback: The Telecommunications System, p. 440 Difficulty: Easy

13. A local area network connects two or more communicating devices in a limited geographical area.

Ans: True Feedback: Types of Networks, p. 441 Difficulty: Easy

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14. Network interface cards are special adapters that link an individual device to the communications medium on a local area network.

Ans: True Feedback: Types of Networks, p. 441 Difficulty: Easy

15. The network interface card typically houses the LAN’s network operating system.

Ans: False. It enables connection to the LAN’s communications medium.

Feedback: Types of Networks, p. 441 Difficulty: Easy

16. Gateways are special adapters that link an individual device to the communications medium on a local area network.

Ans: False. It is a communications processor that connects dissimilar networks by translating from one set of protocols to another.

Feedback: Types of Networks, p. 442 Difficulty: Easy

17. A bridge connects two networks of the same type.

Ans: True Feedback: Types of Networks, p. 442 Difficulty: Easy

18. Wide area networks have large capacity, and they typically use a single communications channel.

Ans: False. They typically combine multiple channels Feedback: Types of Networks, p. 442.

Difficulty: Easy

19. Value-added networks are types of LANs. Ans: False. They are a type of WAN. Feedback: Types of Networks, p. 442 Difficulty: Easy

20. An enterprise-wide network is the interconnection of multiple LANs and WANs to form a network that completely spans an entire organization.

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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Ans: True Feedback: Types of Networks, p. 442-443 Difficulty: Easy

21. TCP/IP is a suite of protocols governing the exchange of data on the Internet.

Ans: True Feedback: Network Fundamentals, p. 443 Difficulty: Easy

22. Packets carry the IP address of the sender and the receiver.

Ans: True Feedback: Network Fundamentals, p. 443 Difficulty: Easy

23. The network layer of the TCP/IP model places packets on the network.

Ans: True Feedback: Network Fundamentals, p. 4444 Difficulty: Medium

24. In client/server computing, the bulk of the processing is done on the client machine.

Ans: False. It is done on powerful servers that can be accessed by less powerful client machines.

Feedback: Network Fundamentals, p. 444-445 Difficulty: Medium

25. The Internet is a global network of computer networks.

Ans: True Feedback: The Internet, p. 446 Difficulty: Easy

26. An intranet is a network that uses Internet technologies and is designed to serve the information needs of a single organization.

Ans: True Feedback: The Internet, p. 446 Difficulty: Easy

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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27. Intranets give employees easy access to corporate information but are not used by employees to access corporate applications.

Ans: False. They do both.

Feedback: The Internet, p. 446 Difficulty: Easy

28. An extranet is a network that uses Internet technologies and is designed to serve the information needs of a single organization.

Ans: False. It connects the intranets of multiple organizations.

Feedback: The Internet, p. 446 Difficulty: Easy

29. Extranets offer limited accessibility to the intranets of participating companies.

Ans: True Feedback: The Internet, p. 446 Difficulty: Easy

30. Darknets are private networks that run on the Internet but are open only to users who belong to the network.

Ans: True Feedback: The Internet, p. 446 Difficulty: Easy

31. An Internet service provider is a company that offers Internet connections for a fee.

Ans: True Feedback: The Internet, p. 447 Difficulty: Easy

32. Internet kiosks are terminals located in public places like libraries and airports for use by people who do not have their own computers.

Ans: True Feedback: The Internet, p. 447 Difficulty: Easy

33. A domain name is the official name assigned to an Internet site, consisting of multiple parts, separated by dots, which are translated from right to left in locating the site.

Ans: True Feedback: The Internet, p. 448

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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Difficulty: Easy

34. The rightmost part of an Internet name is the top-level domain specification, or the zone.

Ans: True Feedback: The Internet, p. 448 Difficulty: Easy

35. The World Wide Web is a global network of computer networks.

Ans: False. The World Wide Web is an application that uses the transport functions of the Internet.

Feedback: The World Wide Web, p. 450 Difficulty: Easy

36. The World Wide Web is a system with universally accepted standards for storing, retrieving, formatting, and displaying information via a client/server architecture.

Ans: True Feedback: The World Wide Web, p. 450 Difficulty: Easy

37. Uniform resource locators point to the address of a specific resource or site on the Web. Ans: True Feedback: The World Wide Web, p.450 Difficulty: Easy

38. Uniform resource locators are software applications through which users access the Web. Ans: False. They point to the address of a specific resource or site on the web.

Feedback: The World Wide Web, p. 450 Difficulty: Easy

Multiple Choice

1. Signals that are continuous waves that transmit information by altering the characteristics of the waves are called: A. Analog B. Digital C. Modular D. Discrete

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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Ans: A Feedback: The Telecommunications System, p. 436 Difficulty: Easy

2. Analog signals have two parameters. What are they?

A. Amplitude, height B. Amplitude, frequency C. Frequency, pitch D. Pitch and duration Ans: B Feedback: The Telecommunications System, p. 436 Difficulty: Medium

3. Signals that discrete pulses that are either on or off are called: A. Analog B. Digital C. Modular D. Discrete Ans: B Feedback: The Telecommunications System, p. 436 Difficulty: Easy

4. The basic components of any telecommunications system are: A. peer-to-peer, videoconferencing, online conferencing, net optical B. sending and receiving devices, communication channel, connection device, and data transmission specifications C. telephone line, coaxial cables, fibre-optic cables, and communication channel D. software, hardware, communication channel, network Ans: B Feedback: The Telecommunications System, p. 437 Difficulty: Easy

5. Which hardware devices support data transmission and reception across a telecommunications system?

A. Integrated services digital network B. Digital subscriber line C. Communications channels D. Communications processors Ans: D Feedback: The Telecommunications System, p. 437 Difficulty: Easy

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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6. Which device converts digital signals to analog signals and vice-versa?

A. Modems B. Multiplexers C. Front-end processors D. Servers Ans: A Feedback: The Telecommunications System, p. 437 Difficulty: Easy

7. Standard telephone lines and conventional modems provide A. bluetooth service B. dial-up service C. wireless service D. Wi-Fi service Ans: B Feedback: The Telecommunications System, p. 437 Difficulty: Medium

8. Modems that operate over coaxial cable, offering high-speed access to the Internet or corporate intranets are called: A. Dial-up modems B. Analog cable models C. Cable modems D. Digital subscribe lines Ans: C Feedback: The Telecommunications System, p. 437 Difficulty: Easy

9. Which of the following is a disadvantage of cable modems?

A. Voice signals must be run separately from data signals B. They normally have low transmission speeds C. They only do modulation, not demodulation D. Access speed can slow down since it is a shared line Ans: D Feedback: The Telecommunications System, p. 437 Difficulty: Medium

10. Which of the following allows a single communications channel to carry data transmissions simultaneously from many sources?

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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A. Modems B. Multiplexers C. Front-end processors D. Servers Ans: B Feedback: The Telecommunications System, p. 437 Difficulty: Easy

11. Which of the following manages all routing communications with peripheral devices for a large computer system?

A. Modems B. Multiplexers C. Front-end processors D. Servers Ans: C Feedback: The Telecommunications System, p. 438 Difficulty: Medium

12. Which of the following are advantages of twisted-pair wire as a communications channel?

A. It has limited susceptibility to electromagnetic interference B. It is difficult to tap C. It can be readily moved from one location to another D. It is inexpensive and easy to work with Ans: D Feedback: The Telecommunications System, p. 438 Difficulty: Medium

13. Which of the following is a disadvantage of twisted-pair wire as a communications channel?

A. It is easily tapped (provides low security) B. It is relatively expensive and inflexible C. It is somewhat difficult to work with D. It is difficult to splice Ans: A Feedback: The Telecommunications System, p. 438 Difficulty: Medium

14. Which of the following is a disadvantage of coaxial cable as a communications channel? It is A. Difficult to work with (difficult to splice) B. Relatively expensive and inflexible C. Slow (very low bandwidth) D. Very expensive

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

Ans: B Feedback: The Telecommunications System, p. 438 Difficulty: Medium

15. Which of the following is an advantage of coaxial cable as a communications channel? It is A. Inexpensive B. Widely available C. Less susceptible to electromagnetic interference D. Easy to work with Ans: C Feedback: The Telecommunications System, p. 438 Difficulty: Medium

16. The cable medium with the highest bandwidth is: A. Twisted-pair wire B. Coaxial cable C. Fibre-optic cable D. Cellular radio Ans: C Feedback: The Telecommunications System, p. 438 Difficulty: Easy

17. One of the advantages of fibre-optic cables as a communication channel is that it: A. Has good security because it is difficult to tap B. Is widely available and inexpensive C. Is easy to work with and unobtrusive D. Is the most prevalent form of communications wire Ans: A Feedback: The Telecommunications System, p. 438 Difficulty: Medium

18. Data is sent through a fibre-optic cable by: A. Optical switch B. Electromagnetic switch C. Laser D. Optical modem Ans: C Feedback: The Telecommunications System, p. 439 Difficulty: Easy

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Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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19. Fibre-optic cable is normally used for which part of a communications system?

A. Connecting printers to computers B. Linking computers to the network C. Linking routers to computers D. Backbone for a network Ans: D Feedback: The Telecommunications System, p. 439 Difficulty: Hard

20. When data is sent along a communications line, the strength of the signal reduces. This is called: A. Attenuation B. Backbone breakage C. Data leakage D. Channel flux Ans: A Feedback: The Telecommunications System, p. 439 Difficulty: Medium

21. Which of the following refers to the range of frequencies available in any communications channel?

A. Protocol B. Broadband C. Capacity D. Bandwidth Ans: D Feedback: The Telecommunications System, p. 439 Difficulty: Easy

22. Which of the following refers to an older international telephone standard for network access that uses existing telephone lines and allows users to transfer voice, video, image, and data simultaneously?

A. T-Carrier System B. Integrated Services Digital Network C. Digital Subscriber Line D. Asynchronous Transfer Mode Ans: B Feedback: The Telecommunications System, p. 439 Difficulty: Hard

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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23. Which of the following refers to a high-speed, digital transmission process used from homes and businesses over existing telephone lines?

A. T-Carrier System B. Integrated Services Digital Network C. Digital Subscriber Line D. Asynchronous Transfer Mode Ans: C Feedback: The Telecommunications System, p. 439 Difficulty: Hard

24. Which of the following transmission technologies allows for almost unlimited bandwidth on demand?

A. T-Carrier System B. Integrated Services Digital Network C. Digital Subscriber Line D. Asynchronous Transfer Mode Ans: D Feedback: The Telecommunications System, p. 439 Difficulty: Hard

25. Which of the following transmission technologies requires fibre-optic cable?

A. T-Carrier System B. Integrated Services Digital Network C. Digital Subscriber Line D. Asynchronous Transfer Mode Ans: D Feedback: The Telecommunications System, p. 439 Difficulty: Hard

26. Which transmission technology is an interface standard for transporting digital signals over fibre-optic lines that allows the integration of transmissions from multiple vendors?

A. Digital subscriber line B. Asynchronous transfer mode C. Synchronous optical network D. T-carrier system Ans: C Feedback: The Telecommunications System, p. 440 Difficulty: Medium

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

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27. Which digital transmission system defines circuits that operate at different rates, all of which are multiples of the basic 64 Kbps used to transport a single voice call?

A. Digital subscriber line B. Asynchronous transfer mode C. Synchronous optical network D. T-carrier system Ans: D Feedback: The Telecommunications System, p. 440 Difficulty: Medium

28. Special high-speed lines used by large companies to support digital communications are known as: A. satellite service lines B. cable modems C. digital subscriber lines D.T-Carrier system Ans: D Feedback: The Telecommunications System, p. 440 Difficulty: Easy

29. Which of the following is an advantage of computer networks? They A. Enable organizations to be more flexible so that they can adapt to rapidly changing business conditions B. Require large amounts of technical support, providing a good training ground for information systems staff C. Have a very large investment in hardware and software, requiring companies to borrow more money D. Need stable software, so that organizations can retain the same policies and procedures, reducing training costs for users Ans: A Feedback: Types of Networks, p. 441 Difficulty: Medium

30. Which of the following is an advantage of computer networks? They A. Enable companies to share hardware, computer applications and data across the organization and among different organizations B. Require large amounts of technical support, providing a good training ground for information systems staff C. Have a very large investment in hardware and software, requiring companies to borrow more money D. Need stable software, so that organizations can retain the same policies and procedures, reducing training costs for users Ans: A Feedback: Types of Networks, p. 441 Difficulty: Medium

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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31. Which of the following is an advantage of computer networks? They A. Make it possible for geographically dispersed employees and work groups to share documents, ideas and creative insights B. Require large amounts of technical support, providing a good training ground for information systems staff C. Have a very large investment in hardware and software, requiring companies to borrow more money D. Need stable software, so that organizations can retain the same policies and procedures, reducing training costs for users Ans: A Feedback: Types of Networks, p. 441 Difficulty: Medium

32. Which of the following connects two or more devices in a limited geographical area?

A. local area network B. wide area network C. personal area network D. enterprise network Ans: A Feedback: Types of Networks, p. 441 Difficulty: Easy

33. Which of the following is a network that connects computers and devices in a limited geographical area, such as a home, school computer laboratory, or office building?

A. Local area network (LAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Value-added Network (VAN) Ans: A Feedback: Types of Networks, p. 441 Difficulty: Medium

34. Which of the following allows a device to physically connect to a local area network’s communications medium?

A. file server B. network interface card C. network operating system D. communications channel Ans: B Feedback: Types of Networks, p. 441 Difficulty: Easy

35. A network server is a dedicated server that: A. stores and manages network files

Test Bank for Introduction to Information Systems, 2nd Canadian Edition

B. manages network traffic activity C. stores and provides access to a network database D. manages network printer and print jobs Ans: B Feedback: Types of Networks, p. 442 Difficulty: Medium

36. Which of the following connects dissimilar networks?

A. Ethernet B. network interface card C. bridge D. gateway Ans: D Feedback: Types of Networks, p. 442 Difficulty: Easy

37. Which of the following connects similar networks?

A. router B. network interface card C. bridge D. gateway Ans: C Feedback: Types of Networks, p. 442 Difficulty: Medium

38. Which of the following sends messages through several connected LANs or to a wide area network?

A. router B. network interface card C. bridge D. gateway Ans: A Feedback: Types of Networks, p. 442 Difficulty: Medium

39. Networks that cover a large geographic area are known as a A. Local area network (LAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Value-added Network (VAN) Ans: C Feedback: Types of Networks, p. 442 Difficulty: Easy

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Technology Guide 4: Telecommunications, Networks, and the World Wide Web

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40. Networks that have a large capacity, and typically combine multiple channels are often used by international networks of global communications services providers. There networks are known as: A. Local area network (LAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Value-added Network (VAN) Ans: C Feedback: Types of Networks, p. 442 Difficulty: Easy

41. Networks that are private, data-only networks managed by outside third parties are called a: A. Local area network (LAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Value-added Network (VAN) Ans: D Feedback: Types of Networks, p. 442 Difficulty: Easy

42. When organizations interconnect multiple LANs and WANs what have they created?

A. Local area network (LAN) B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Enterprise network Ans: D Feedback: Types of Networks, p. 442 Difficulty: Easy

43. When organizations create a high-speed central network to which multiple smaller networks are connected, what would we call the high-speed central network?

A. Backbone network B. Metropolitan area network (MAN) C. Wide area network (WAN) D. Enterprise network Ans: A Feedback: Types of Networks, p. 442 Difficulty: Easy

44. The part of a network that handles the major traffic is the A. front end B. network interface C. multiplexer

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D. backbone E. front end processor Ans: D Feedback: Network Fundamentals, p. 408–411 Difficulty: Easy

45. When organizations create a high-speed central network to which multiple smaller networks are connected, what would we call the multiple smaller networks?

A. Backbone network B. Embedded LANs (Local Area Networks) C. Wide area network (WAN) D. Enterprise network Ans: B Feedback: Types of Networks, p. 442 Difficulty: Easy

46. In order to ensure that computers developed by different manufacturers can communicate, we would use: A. protocols B. client/server architectures C. WANs D. application software packages Ans: A Feedback: Network Fundamentals, p. 443 Difficulty: Easy

47. A protocol is A. a device that handles the switching of voice and data in a local area network B. a standard set of rules and procedures for control of communications in a network C. a communications service for the connection of devices in a local area network D. the main communications channel in a wide area network Ans: B Feedback: Network Fundamentals, p. 443 Difficulty: Easy

48. The transmission protocol used by the Internet is called: A. Ethernet B. IP C. TCP/IP D. 802.11 Ans: C Feedback: Network Fundamentals, p. 443 Difficulty: Easy

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49. In TCP/IP, IP is responsible for A. disassembling and reassembling of packets during transmission B. establishing the Internet connection between two computers C. moving packets over the network D. sequencing the transfer of packets across the network Ans: A Feedback: Network Fundamentals, p. 443 Difficulty: Easy

50. TCP/IP (transmission control protocol/Internet protocol) functions in for layers. Which layer enables client application programs to access the other layers and defines the protocols that applications use to exchange data?

A. Application layer B. Transport layer C. Internet layer D. Network interface layer Ans: A Feedback: Network Fundamentals, p. 443 Difficulty: Easy

51. TCP/IP (transmission control protocol/Internet protocol) functions in for layers. Which layer provides the application layer with communication and packet services?

A. Application layer B. Transport layer C. Internet layer D. Network interface layer Ans: B Feedback: Network Fundamentals, p. 444 Difficulty: Medium

52. TCP/IP (transmission control protocol/Internet protocol) functions in for layers. Which layer is responsible for addressing, routing and packaging data packets?

A. Application layer B. Transport layer C. Internet layer D. Network interface layer Ans: C Feedback: Network Fundamentals, p. 444 Difficulty: Medium

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53. TCP/IP (transmission control protocol/Internet protocol) functions in for layers. Which layer places packets on and receives them from the network medium, which could e any networking technology?

A. Application layer B. Transport layer C. Internet layer D. Network interface layer Ans: C Feedback: Network Fundamentals, p. 444 Difficulty: Easy

54. A type of processing that links two or more computers in an arrangement in which some machines provide computing services for user computers is best described as A. open systems B. client/server C. peer-to-peer D. centralized Ans: B Feedback: Network Fundamentals, p. 444 Difficulty: Easy

55. There are several types of peer-to-peer processing. A scientific experiment using Internet-connected computers to search for extraterrestrial intelligence would use which type?

A. Real-time, person-to-person collaboration B. Advanced search and file sharing C. Some more powerful machines provide services to less powerful machines D. Accessing unused CPU power among networked computers Ans: D Feedback: Network Fundamentals, p. 445 Difficulty: Medium

56. There are several types of peer-to-peer processing. When you use Google Talk to exchange ideas to complete a research project you would use which type?

A. Real-time, person-to-person collaboration B. Advanced search and file sharing C. Some more powerful machines provide services to less powerful machines D. Accessing unused CPU power among networked computers Ans: A Feedback: Network Fundamentals, p. 445 Difficulty: Easy

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57. There are several types of peer-to-peer processing. When you use natural language searches to find other users, data and web pages, you would use which type?

A. Real-time, person-to-person collaboration B. Advanced search and file sharing C. Some more powerful machines provide services to less powerful machines D. Accessing unused CPU power among networked computers Ans: B Feedback: Network Fundamentals, p. 445 Difficulty: Easy

58. The process that BitTorrent uses which eliminates file-sharing bottlenecks by having everyone share little pieces of a file at the same time is called: A. leeching B. collaboration C. packet switching D. swarming Ans: D Feedback: Network Fundamentals, p. 445 Difficulty: Medium

59. Which of the following is a global wide-area network that connects approximately one million organizational computer networks?

A. extranet B. Internet C. intranet D. World Wide Web Ans: D Feedback: The Internet, p. 446 Difficulty: Easy

60. Which of the following is a network designed to serve the internal informational needs of a single organization?

A. global network B. extranet C. Internet D. intranet Ans: D Feedback: The Internet, p. 446 Difficulty: Easy

61. Which of the following connects parts of the intranets of different organizations and allows secure communications among business partners?

A. global network

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B. extranet C. Internet D. intranet Ans: B Feedback: The Internet, p. 446 Difficulty: Easy

62. Which of the following are private networks that run on the Internet but are open only to users who belong to the network?

A. Darknets B. Extranets C. Value-added networks D. Intranets Ans: A Feedback: The Internet, p. 411–415 Difficulty: Easy

63. If you are wanted to have a high level of security and privacy, you might use which of the following to communicate?

A. darknet B. Internet C. intranet D. extranet Ans: A Feedback: The Internet, p. 446 Difficulty: Medium

64. Internet service providers connect to one another through A. Internet connection points B. common carrier connection points C. network access points D. network connection points Ans: C Feedback: The Internet, p. 447 Difficulty: Easy

65. Which of the following are used to access the Internet that are located in public places, such as libraries and airports?

A. Darknets B. Internet access computers C. Network computer D. Internet kiosks Ans: D

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Feedback: The Internet, p. 447 Difficulty: Easy

66. Consider this domain name, www.business.gsu.edu. The “edu” is the A. top-level domain B. URL (uniform resource allocator) C. web site locator D. name of the computer Ans: A Feedback: The Internet, p. 448 Difficulty: Easy

67. Consider this domain name, www.business.gsu.edu. The “gsu” is the A. top-level domain B. name of the organization C. name of the specific computer D. address of the Webmaster Ans: B Feedback: The Internet, p. 448 Difficulty: Easy

68. Which of the following is a system with universally accepted standards for storing, retrieving, formatting, and displaying information via a client/server architecture?

A. USENET B. FTP C. World Wide Web D. the Internet Ans: C Feedback: The World Wide Web, p. 450 Difficulty: Easy

Short Answer and Discussion Questions

1. Differentiate between analog signals and digital signals.

Feedback: The Telecommunications System, p. 436-437

2. Describe the various communications processors.

Feedback: The Telecommunications System, p. 437-438

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3. Describe the components of a telecommunications system.

Feedback: The Telecommunications System, p. 437-441

4. Differentiate among twisted-pair wire, coaxial cable, and fibre-optic cable.

Feedback: The Telecommunications System, p. 438-439

5. What are the implications of having fibre-optic cable connections to everyone’s home?

Feedback: The Telecommunications System, p. 439

6. Differentiate among local area networks, wide area networks, value-added networks.

Feedback: Types of Networks, p. 441-442

7. Define what network protocols are and why they are important.

Feedback: Network Fundamentals, p. 443-444

8. Describe the functions of the TCP/IP protocol.

Feedback: Types of Networks, p. 443-444

9. Differentiate between client/server computing and peer-to-peer processing.

Feedback: Network Fundamentals, p. 444-445

10. Describe the three basic types of peer-to-peer processing.

Feedback: Network Fundamentals, p. 445

Cases

1. Alcoa is a manufacturer of aluminum products. It has three mines around the world, smelters, storage facilities, and manufacturing plants to produce different types of aluminum products sold to distributors and other

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manufacturing companies. It employs about 2,500 people in fourteen countries, has twelve mainframe computing systems, several server farms, and thousands of desktop computer systems in addition to its manufacturing systems.

It reduced inventories by a quarter of a billion dollars in one year, while increasing sales by just under $1 billion.

Alcoa did all of this because they implemented new e-business systems for the transmission of documents and funds, using new standards that were common to all locations.

Managing in real time – making decisions now, on the basis of accurate, live information delivered via the Internet and corporate intranets and extranets; producing to actual orders rather than to forecast or budget – these are some of the capabilities of the new systems.

Required: Define an intranet and provide four examples of how Alcoa could use an intranet for improving its decision making with respect to inventory or sales. (5 marks) Feedback: The Internet, p. 446 Suggested Solution: Definition: The intranet is an internal network for use by a single organization.

OR It is an internal network that uses the internet and web-based standards.

Examples: The text states (p. 446) that the intranet supports activities around discovery, communication and collaboration.

Note that other examples are possible.

- the intranet could be used to coordinate sales to the same customer in multiple countries, i.e. have a bulletin board that lists information for sales representatives - sales representatives could post information about new customers for use by other locations - sales presentations or tips could be posted for use by other individuals - the intranet could be used to post information such as online training courses for sales staff or names of individuals with specific expertise with certain kinds of customers - tips on inventory handling or efficiency techniques could be posted on the intranet 2. Globoha Company sells rare books and antiques made of brass and other metals. The company has a physical location in Kolkata, West Bengal, India and in Montreal, Quebec, Canada. It also has a secure web site.

Globoha has an inventory system that requires each item to have a serial number, as well as providing detailed information about the product (for example, age, description, author or artist), the product cost and product selling price.

Typical inventory information looks like this: Serial number* 345560987 149567369

Supplier B. Smith Able Antiques

222234569

S. Saal

Status Good quality Needs refurbishing Damaged, medium

Product Type* BookHard AntiqueBrass

Cost 15.00 225.00

Sales Price 32.00 0.00

BookSoft

196.32

425.00

Notes: • The Product Type* and Serial number* are used to link the inventory information to other tables that contain detailed information about the product, such as age, author, artist or publisher. There are separate tables for BookHard products (hardcover books), BookSoft (softcover books), AntiqueBrass (antiques made of brass), as well as fifteen other product types that each have different tables.

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Products that are not ready for sale (such as antiques that need fixing or refurbishing) are given a zero sales price.

Required: For each of the following network technologies, explain how Globoha Company could use the technology.

(5 marks) Feedback: Network Fundamentals, p. 443-446 Suggested Solution: Network technology Network server

Explain how Globoha Company could use the technology

Gateway

Globoha would use a Gateway to connect two dissimilar networks (if the networks at its Kolkata and Montreal offices have different protocols) by translating from one set of protocols to the other.

Value-added network (VAN)

Globoha might use a VAN, managed by an outside party that will provide data communications between Globoha’s Kolkata and Montreal offices/networks. Then Globoha will not need to create and manage their own network.

Backbone network

Globoha could use a high-speed central Backbone network to connect multiple LAN’s in its Montreal and Kolkata offices (and in more offices if the company increases its number of locations)

Ethernet protocol

Ethernet LAN protocol might be used by Globoha if its business communications (between Montreal and Kolkata offices) require high speed data transmissions (e.g. one to 10 gigabits per second). Such high speeds would enable them to transfer large amounts of data describing and illustrating product items

Globoha would use a network server to route and manage communications on a LAN (local area network) in its Montreal or Kolkata location, OR … on a WAN (wide area network) that links its Montreal and Kolkata locations.

(The server would contain the operating system for the network and quite likely a harddrive containing software and data for the network.)

3. The federal government has many surplus goods, and also seizes goods for a variety of reasons (at the international border, or stolen goods, for example). It recently set up a web site called GCSurplus (Government of Canada Surplus) where individuals and organizations can bid for and purchase these items. There are hundreds of items listed at gcsurplus.ca, organized into product categories, including automobiles and computer equipment.

Required: For each of the following network technologies, explain how the federal government could use the technology.

(5 marks) Feedback: Network Fundamentals and The Internet, p. 443-446 and p. 446-449 Suggested Solution:

Technology Guide 4: Telecommunications, Networks, and the World Wide Web

Network technology Bridge

Packet switching

Client/server computing

Extranet

Internet service provider

26

Explain how the federal government could use the technology A communications processor that connects two networks of the same type – (to technical of a question for the students to answer) – joining the Extranet with other government’s intranets (federal, provincial, municipal) – this will add more products available for the public to bid on and not leaving the surplus website.

The transmission technology that breaks up blocks of text into packets – by using packet switching its breaking up the many users that log on into the website – instead of having them log on a dedicated users and using hardware resources – this method allows you to have many users sharing the same connection. Each packet has to and from information plus data inside of it and can travel along the internet in the less restricted route (using the lower volume routes to the website) each packet can travel a different route but joined together at the receiving end Form of distribution processing in which some machines (servers) perform computing functions for end-user PCs – (clients) – Example – one server would be used to approval buying information – credit card processing for payment approval, membership (logon information), Items for sale (database sever), - so severs can be broken out to do many functions and be secure – just a few examples A network that connects parts of the intranets of different organizations – (the detailed information for this question would be found on pages 256-258 (chapter 8) which is outside the material for this exam) So the closest example for the exam would be – the connecting of other government surplus sites without leaving gcsurplus - this will add more products available for the public to bid on and not leaving the surplus website.

A company that provides Internet connections for a fee- find the cheapest, fastest and highest volume of an ISP to service-host the website

Suggested Solution: Uses material from Text, Technology Guide 4, p. 407-412

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Case Appendix Case Distribution and Index The following provides a list of the cases provided in this Appendix, and the Chapters or Technology Guides to which the case pertains. Use these cases as assignments, midterm questions or final examination questions.

The Case Appendix contains the entire case with references to the chapters or technology guides to which they pertain. You will find a suggested solution in the individual chapters and technology guides to which the questions pertain.

Case Title ABM Inc.

1

2

3

4 x

5

6

7

8 x

9

Alcoa

11

12

TG1

TG2 x

TG3

x

Bellwood College x

x

x

BLOSS

x

Car Dealerships

x

x

x

TG4

x

x

BestPay

Camelot Industries

10

x

x

x

x

x

x

x

x

East General Hospital

x x

Globoha Company

x

x

Government of Canada Surplus

x

x

GrameenPhone

x

x

x

Great West Canadian Bank Happy Pets

x

x

x

Insurance Company

x

Internal Audit Summer Job

x

x x

Lovely Hands Company

x

x

x

x

Men R US

x

Ogly Company

x

Place Alexis Nihon Sweety Snacks

x

x

x x

x

Note that these cases have questions that apply to multiple chapters. Detailed suggested solutions are provided in the chapters listed. Cases are listed below alphabetically by case name.

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2

ABM Inc. Your firm, ABM Inc., is an international software developer and hardware manufacturer. The company has locations around the world and employs thousands of people. It markets software in all sectors – by industry (for example, banking and retail) and by software type (for example operating systems, database management systems, functional software).

ABM’s software can be used with a variety of infrastructures (small and large) and for different types of data communications. This means that organizations can purchase ABM’s software for use internally, or for external use, and for small internal systems through to larger systems that involve international data communications.

A) Describe three reasons why it may be difficult for ABM Inc. to manage its data. (3 marks) Response: Chapter 4, Managing Data, p. 112 B) For each of the following aspects of a relational database management system, explain the term, and provide an example of how ABM Inc. could use it. (3 marks) Response: Chapter 4, Relational Database Management Systems, pp. 120-122 C) For each of the following information systems, describe the information system and provide an example of how ABM employees could use the system. (6 marks) • • •

Transaction processing system Enterprise resource planning system Functional area information system

Response: Chapter 8, Transaction processing systems, p. 240; Enterprise Resource Planning Systems, p. 250; Functional Area Information Systems, p. 242 D) Describe the role of application systems versus operating systems for the software that ABM sells. (2 marks) Response: Technology Guide 2, Significance of Software, pp. 393-394 E) For each of the following types of interfaces, describe the interface and discuss why (or why not) ABM should incorporate the interface into its software. (6 marks) • Text-based interface • Graphical user interface • Haptic interface Response: Technology Guide 2, Systems Software, p. 395

Alcoa Alcoa is a manufacturer of aluminum products. It has three mines around the world, smelters, storage facilities, and manufacturing plants to produce different types of aluminum products sold to distributors and other manufacturing

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companies. It employs about 2,500 people in fourteen countries, has twelve mainframe computing systems, several server farms, and thousands of desktop computer systems in addition to its manufacturing systems. It reduced inventories by a quarter of a billion dollars in one year, while increasing sales by just under $1 billion. Alcoa did all of this because they implemented new e-business systems for the transmission of documents and funds, using new standards that were common to all locations.

Managing in real time – making decisions now, on the basis of accurate, live information delivered via the Internet and corporate intranets and extranets; producing to actual orders rather than to forecast or budget – these are some of the capabilities of the new systems.

Required: A) Describe the three segments of the supply chain. For each segment, provide an example of how it applies to Alcoa. (6 marks) Response: Chapter 10, The Structure of Supply Chains, pp. 285-286

B) Describe the three types of flows in the supply chain. For each type of flow, provide an example for Alcoa. (6 marks) Response: Chapter 10, The Structure of Supply Chains, p. 286 C) Define an intranet and provide four examples of how Alcoa could use an intranet for improving its decision making with respect to inventory or sales. (5 marks)

Response: Technology Guide 4, The Internet, p. 446

Bellwood College Bellwood College has switched to using electronic readers rather than paper-based textbooks. Students are issued a reader that gives them access to the textbooks that are listed as required for their courses at no additional charge. The publishing fee for the texts, paid to one Canadian publisher, means that the College is now using textbooks from only that publisher. It also means that the College will be spending less on new library acquisitions, since the licence fee for the books is coming from the College library budget.

Students at the College also have access to the College’s email systems, web sites, and a computer lab with a variety of software, as well as a wireless network.

The College Store sells a variety of products in addition to books: these include uniforms, stationary and art supplies. There is also a full service restaurant on campus, which is open to the public, run by students. Recently, the College has started a campaign for students to bring non-students to the restaurant, by offering free deserts to students who bring a new person to the restaurant.

The College Student Council has set up a web site where students can sell their art work or other products that they have developed or created. Five percent of the sale price goes to the Student Council, and the rest goes to the student.

Case Appendix

4

Required: A) Provide examples of how Bellwood College could engage in or provide the following types of e-commerce: [Note that your examples must indicate a clear understanding of the type of e-commerce listed.] (3 marks) Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C) Response: Chapter 6, Overview of E-Business and Ecommerce, p. 176.

B) For the following four e-commerce business models, describe the business model and explain how the College or the Student Council could use the business model. (8 marks) • Online direct marketing • Electronic tendering system • Viral marketing • Electronic marketplace or exchange Response: Chapter 6, Overview of E-Business and Ecommerce, p. 177 C) What is cloud computing and how could Bellwood college use cloud computing? (3 marks) Response: Technology Guide 1, Innovations in Hardware Utilization, p. 368 D) Discuss two examples of computing devices from the computer hierarchy that students or faculty could use to access their textbooks and course content. (2 marks) Response: Technology Guide 1, The Computer Hierarchy, pp. 372-373 E) What are some warning signs that a Bellwood College student’s reader might be infected with a virus or other malware? (3 marks) Response: Technology Guide 3, Computer-Based Actions, p. 423 F) One of the students at Bellwood College has just recently discovered that he is the victim of identity theft. What should he do? (5 marks) Response: Technology Guide 3, Behavioural Actions, pp. 411-412

BestPay BestPay Inc. is an online service provider of payroll processing in Winnipeg, Manitoba, with over 125,000 customers. A review of the web site reveals that the organization is full service: you can purchase payroll software, or access systems online. BestPay provides payroll, human resources, retirement planning and tax services.

Employees can even log on and use the systems as an internet-based time clock.

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Required: A) For each of the five strategies for competitive advantage, describe the strategy, and explain how BestPay could implement the strategy. (10 marks) Response: Chapter 2, Competitive Advantages and Strategic Information Systems, pp. 49-51 B) You have been asked to assist with the design of the payroll database for BestPay Inc. Explain the purpose of each of the following components of the database design and provide an example of how they would apply to the payroll database. (10 marks) • • • • •

Data model Entity Attribute Primary Key Secondary Key

Response: Chapter 4, p. 117 C) Your company is a small employer with ten employees that uses BestPay Inc. for payroll processing. Explain to your boss the different types of anti-malware protection that are available and their purpose. (5 marks) Response: Technology Guide 3, Computer-Based Actions, pp. 415-418)

BLOSS BLOSS is a retailer of jeans and casual clothing. It operates over 180 retail and factory stores in Canada, over 1,000 in-store shops in other retailers, and sells merchandise in over 70 countries worldwide. In order to support its operating activities BLOSS implemented an information system for its suppliers and independent retailers in Canada and 230 other countries called Apparel Buying Network. The company can use the Apparel Buying Network to purchase direct items such as trim, fabric, and finished goods and indirect items such as office and maintenance supplies. Store buyers can order merchandise directly from BLOSS by entering their purchases on a private web site called ApparelBuy.com, which is integrated with the firm’s core order processing system.

BLOSS maintains a public web site for retail customers called BLOSS.com, which offers product catalogues and merchandise ordering on-line. This e-commerce site generates as many sales as one of the BLOSS flagship stores.

BLOSS established www.babybloss.com and www.blosskids.com as e-commerce sites for retailing infants’ and children’s clothing and accessories. BLOSS is also using Internet technology to streamline its internal business processes. BLOSSExpress is an internal private network based on internet technology that is used for purchasing from suppliers, reviewing architectural plans for new stores, making travel arrangements, and broadcasting messages to managers about operating instructions and company and industry trends.

Required: A) Describe analytical CRM and explain how BLOSS could use it. (3 marks)

Case Appendix

6

Response: Chapter 9, Analytical CRM, pp. 273 B) What is Mobile CRM. Explain how BLOSS could use mobile CRM. (3 marks) Response: Chapter 9, Other Types of CRM, pp. 275 C) Both BLOSS and its suppliers using the Apparel Buying Network used EDI (electronic data interchange). What is EDI and what are the advantages and disadvantages to BLOSS of using EDI? (10 marks) Response: Chapter 10, Supply Chain Management Systems and Related Technologies, pp. 293-294 D) Provide three examples of input technologies that could be used at BLOSS retail stores. For each input device, explain how BLOSS employees could use them. (3 marks) Response: Technology Guide 1, Input and Output Technologies, pp. 375-376, Table TG1.1 E) Provide three examples of output technologies that could be used at BLOSS retail stores. For each output device, explain how BLOSS employees could use them. (3 marks) Response: Technology Guide 1, Input and Output Technologies, p. 377, Table TG1.2 Camelot Industries Camelot Industries Ltd. (CIL) sells card decks, all kinds of them. Playing cards for children and adults, tarot cards (for self-analysis and fortune telling), and a variety of new age cards such as angel cards, dragon cards, sacred geometry cards and native medicine cards. Traditionally, CIL sold only to retail outlets, although they had factory direct sales at their distribution centre every morning.

Last year, CIL created a web site, camelotcards.com, used to sell cards directly to a broader range of retailers and to the general public. To help its existing dealer network, the web site has a location directory, so that individuals can find out where the card deck of their choice is selling in their area. Also, to help its existing dealer network, sales to the general public are accepted only if the individual is buying at least ten decks of cards. Otherwise, the individual is urged to go their nearest new age book or novelty store.

Camelot Industries Ltd. (CIL) has 35,000 retailers around the world that purchase its products. CIL uses functional software to handle its transaction processing for sales to these retailers.

A) Using the following table, describe the four listed business pressures and explain how each pressure would affect Camelot Industries Ltd. (8 marks) Response: Chapter 1, Business Pressures, Organizational Responses, and IT Support, pp. 17-21 B) Camelot Industries Ltd. (CIL) is thinking of implementing new software for its data management that would include a relational database. Provide CIL with four advantages or disadvantages for the use of a relational database management system. (4 marks) Response: Chapter 4, The Database Approach and Relational Database Management Systems, pp. 115-116 and pp.

119-120

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B) Following is an example of what the sales transaction information at CIL looks like: Customer number Ang852 Ojk685 Zee153

Invoice number 00095235 00085632 00195732

Invoice date

Invoice amount

August 12,2009 August 31, 2009 October 14, 2009

1596.35 680.66 6011.00

Clearly describe the following terms and provide an example from the table for each term. Clearly explain why your example is appropriate. (8 marks) • • • •

Attribute Record Instance Secondary key

Response: Chapter 4 The Database Approach, pp. 117-118 C)

What is operational CRM? (1 mark)

Response: Chapter 9, Operational CRM, p. 267 D)

Provide five examples of how CIL could provide customer service and support to its customers. (5 marks)

Response: Chapter 9, Operational CRM, pp. 267-268

Car Dealerships Car dealerships are heavily linked to their suppliers and their customers by means of automation. When a customer orders a car, the dealership can link to the vehicle production schedule or to other dealerships to obtain the appropriate model and colour. Then, customer transactions are tracked in internal information systems, while service department software helps the dealership remind users about when they should bring their vehicle in for service such as an oil change.

Lesser known systems help dealerships collect money when customers do not pay for their lease or their car loans that are financed via the dealership. Vehicle on-board computing systems can have remote access systems installed that enable the dealer to prevent the car from being started or have its horn honk incessantly. Then, the customer must pay amounts owed before the vehicle will start or to have the horn honking turned off.

Required: A) Using Porter’s Competitive Forces Model, explain how the Internet has affected competition at organizations like car dealerships. (5 marks) Response: Chapter 2 Competitive Advantage and Strategic Information Systems, pp. 46-48

Case Appendix

8

Note that this question could be expanded by asking students to also explain or describe each of the competitive forces.

B) Provide four types of reports that could be used by functional area information systems. For each report, describe the nature of the report and provide an example of how each report could be used by a car dealership in its sales systems. (8 marks) Response: Chapter 8, Functional Area Information Systems, pp. 248-249 C) How could the bullwhip effect affect a car dealership? (3 marks) Response: Chapter 10, Problems along the Supply Chain and their Solutions, p. 289 D) What is the push model (also known as make-to-stock)? Describe the advantages and disadvantages of the push model. (3 marks) Response: Chapter 10, Problems along the Supply Chain and their Solutions, p. 289 E) A dealership owner has many different types of roles throughout the day when conducting his work. List and describe the three basic roles of managers (described by Mintzberg). For each of the three basic roles, describe an example of how the dealership owner would perform these roles with his or her employees. (6 marks) Response: Chapter 11, Managers and Decision Making, p. 306 F) The car manufacturer uses software called digital dashboards (also called an executive dashboard or management cockpit) to monitor warranty claims on cars. Identify and provide examples of three capabilities of digital dashboard software that would be useful to a car manufacturer in monitoring warranty claims. (3 marks) Response: Chapter 11, Business Intelligence, Table 11.1, p. 315 G) The car dealership uses open-source software (Linux) on its network servers. State three advantages or disadvantages of open source software for the dealership. (3 marks) Response: Technology Guide 2, Open Systems, pp. 399-400

East General Hospital Vocera is a multi-purpose intercom that can be worn about a person’s neck or clipped to clothing. It uses wireless technology and operates the same way that the communications devices in ‘Star Trek’ worked – you tap the device to activate it. The system uses voice recognition to initiate calls to others, and can also send text messages.

Since the system was recently implemented by East General Hospital, staff can now talk to others who are in isolation, and obtain emergency help if they tap the device’s grey button twice. It cost the hospital several million dollars to implement the system. The older city hospital is about one million square feet in size, with thick brick walls and special concrete protection around rooms that handle radiation, such as medical imaging.

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Now, the hospital is thinking of implementing electronic document systems for its patient records. This would mean that existing hospital records would be scanned and placed into electronic files, while any new records would be created electronically or added to patient records as prepared.

The hospital is looking at two different options for its acquisition of the patient record system – purchasing a packaged system that is in use by hospitals in the U.S., or having a customized system developed.

(Rererences: “A new badge of honour,” by T. Burgmann, Toronto Star, p. B1, B4, Nov 16/09); and www.vocera.com (accessed January 29, 2011) Required: A)

What are the advantages of purchasing ready-made packaged software? (3 marks)

Response: Chapter 12, Strategies for Acquiring IT Applications, pp. 340-341 B)

What are the disadvantages of purchasing ready-made packaged software? (3 marks)

Response: Chapter 12, Strategies for Acquiring IT Applications, pp. 340-341 C)

What are the advantages of developing customized software? (3 marks)

Response: Chapter 12, Strategies for Acquiring IT Applications, p. 344 and The Traditional Systems Development Life Cycle, pp. 344-345 D)

What are the disadvantages of developing customized software? (3 marks)

Response: Chapter 12, Strategies for Acquiring IT Applications, p. 344 and The Traditional Systems Development Life Cycle, pp. 344-345

Globoha Company Globoha Company sells rare books and antiques made of brass and other metals. The company has a physical location in Kolkata, West Bengal, India and in Montreal, Quebec, Canada. It also has a secure web site.

Globoha has an inventory system that requires each item to have a serial number, as well as providing detailed information about the product (for example, age, description, author or artist), the product cost and product selling price.

Typical inventory information looks like this: Serial number* 345560987 149567369

Supplier B. Smith Able Antiques

222234569

S. Saal

Status Good quality Needs refurbishing Damaged, medium

Product Type* BookHard AntiqueBrass BookSoft

Cost 15.00 225.00

Sales Price 32.00 0.00

196.32

425.00

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Notes: • The Product Type* and Serial number* are used to link the inventory information to other tables that contain detailed information about the product, such as age, author, artist or publisher. There are separate tables for BookHard products (hardcover books), BookSoft (softcover books), AntiqueBrass (antiques made of brass), as well as fifteen other product types that each have different tables.

• Products that are not ready for sale (such as antiques that need fixing or refurbishing) are given a zero sales price.

Required: A) For each of the following two types of portals, describe the nature or purpose of this type of portal and provide an example of how Globoha Company could use the portal.

(4 marks) • Affinity portal • Corporate portal Response: Chapter 5 Network Applications, p. 147 B) For each of the following network technologies, explain how Globoha Company could use the technology. (5 marks) Response: Technology Guide 4, Network Fundamentals, pp. 443-446

Government of Canada Surplus The federal government has many surplus goods, and also seizes goods for a variety of reasons (at the international border, or stolen goods, for example). It recently set up a web site called GCSurplus (Government of Canada Surplus) where individuals and organizations can bid for and purchase these items. There are hundreds of items listed at gcsurplus.ca, organized into product categories, including automobiles and computer equipment.

Required: A) For each of the following two types of applications, describe the application and explain how the federal government could use the application to support the success of its surplus sales web site. (4 marks) • Tagging • RSS (Really simply syndication) Response: Chapter 5, Web 2.0, p. 156, 158 B) For each of the following network technologies, explain how the federal government could use the technology. (5 marks) Response: Technology Guide 4, Network Fundamentals and The Internet, pp. 443-446 and pp. 446-449

GrameenPhone GrameenPhone is using the Internet to help to bridge the digital divide in Bangladesh. Bangladesh has over 150 million people but there are relatively few land-line telephones. Cell phone use is exploding, with more than 16

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million cell phone subscribers as of 2007. People use cell phones to hook up to the Internet, gain access to services such as e-mail, weather reports, and health information.

GrameenPhone established cell phone access centres where individuals without telephones could access the Internet using cell telephones for a fee. GrameenPhone is partly owned by Grameen Bank. These cell phone centres have provided access to information and data communications in villages where such access previously was not possible.

As a result, villagers in remote areas are now able to make use of the Internet to boost their local economies. For example, farmers in rural areas are now able to use cell phones to transact with customers and suppliers from other villages to buy and sell crops and animals.

A) For each of the following information systems, describe the information system and provide an example of how local business persons could use this type of system. (8 marks) • • • •

Office automation system Decision support system Supply chain management system Electronic commerce system

Response: Chapter 2 Types and Purposes of Information Systems, pp. 44-45 B) Describe the legislation that generally governs privacy in Canada. (1 mark) Response: Chapter 3 Ethical Issues, p. 75 C) Why is it important for the company to have privacy policy guidelines? (3 marks) Response: Chapter 3Ethical Issues, pp. 74-76 D) A business computing service that provides computer services for a fee, such as a cell phone access centre, would need privacy policy guidelines for its employees. For each of the following categories of privacy policy, provide an example of what a computing centre service business might include in its privacy policy. (3 marks) • Data collection • Data accuracy • Data confidentiality Response: Chapter 3 Ethical Issues, p. 75 E) Why is m-commerce (mobile commerce) using cellular telephones expanding rapidly around the world? (3 marks) Response: Chapter 7, Mobile Computing and Mobile Commerce, p. 221

Great West Canadian Bank Great West Canadian Bank (GWC) comprises a group of companies that employs over 3,000 people in 108 locations. GWC has grown by acquiring other smaller banks and financial service organizations. To reduce costs and improve information systems services, the organization has several projects planned for the coming year.

The first of these projects is server consolidation. Some of the bank’s servers are at a main data centre in Edmonton,

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while many others are distributed in regional banking centres as part of the branch network. The bank plans on reducing the number of locations with servers from fifteen to three over the next year. As part of this project, the bank will be implementing an enterprise storage system and improving the way it manages data access and sharing amongst the bank branches.

GWC is also looking to improve turn-around and provide greater consistency in its loan and credit approval processes. Loan applications are currently recorded manually or using standard word processing templates. The printed version of the loan application document is then sent to a central credit risk group for approval, often resulting in delays of two to six days before a loan is approved or declined. By automating this process and integrating the credit granting process with external credit checks and an expert system-based credit evaluation system, the bank hopes to reduce time for credit granting and reduce credit losses. Rather than sending paper documents for credit approval, the bank will use an expanded intranet to provide access to internal documents by authorized employees.

Required: A) The new credit granting system will likely be custom-developed. The bank would like to engage in best practices during the acquisition and development of this software. Describe three activities that the bank needs to complete within each of the following two phases of the traditional systems development life cycle. (6 marks) Systems investigation Systems design Response: Chapter 12, The Traditional Systems Development Life Cycle, pp. 346-347 B) Describe two conversion strategies that would be suitable for the bank to use in the implementation of the new credit-granting system. For each conversion method strategy, describe an advantage associated with that conversion strategy. (4 marks) Response: Chapter 12, The Traditional Systems Development Life Cycle, p. 348 C) Provide two advantages to the bank of using an enterprise wide storage system. (2 marks) Response: Technology Guide 1, Computer Memory and Storage Systems, p. 385 D) There are three different types of enterprise storage systems. Name and describe these. (3 marks) Response: Technology Guide 1, Computer Memory and Storage Systems, p. 385

Happy Pets Happy Pets Company (HPC) is an international company that makes pet food. HPC has many manufacturing locations around the world. It sells its products to a wide variety of outlets – pet stores, grocery stores and department stores. Retailers can order products via the internet using HPC’s secure extranet, or via many other more traditional methods (e-mail, telephone, or paper orders).

HPC produces both dry and wet pet food products, including pet foods for various animals, including special products for older dogs, and for hypo-allergenic diets. It also produces pet food treats, in many different flavours and

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shapes. The only products that have seasonal demand are the pet food treats, which seem to sell more around holiday times.

HPC conducts research into its brands and about pet food dietary needs, and regularly updates its products, providing at least one new type of pet food every two years.

Required: A) Describe data items, information and knowledge, providing a clear example of how HPC would use each of these during the conduct of its business. (6 marks) Response: Chapter 1 Information Systems: Concepts and Definitions, p. 11 Insurance Company Insurance companies and credit card providers are concerned with preventing fraud and theft. To do so, they often use advanced information systems.

Insurance companies are diversified companies that sell a wide variety of products. Often, they discontinue products and then decide to add new ones. For example, individuals may be subject to mortgage fraud, where an individual may have identity theft occur and an unauthorized mortgage is placed against his/her property. To help protect individuals, some insurance companies are starting to sell title insurance. The insurance would cover the costs associated with the individual removing the unauthorized mortgage from his/her records.

A) For each of the following intelligent systems listed in the text, describe how the intelligent system functions, and explain how an insurance company could use the system to prevent or detect fraud. (4 marks) Expert system Neural network Response: Chapter 11, Intelligent Systems, pp. 322-323, 324-325 B) Insurance Company is thinking of offering title insurance as one of its products.

Describe the three phases of Simon’s decision making model (intelligence, design and choice). For each of these three phases, provide an example of how information systems could be used during the phase to help the insurance company decide whether or not it should offer title insurance as one of its products. (6 marks) Response: Chapter 11, Managers and Decision Making, pp. 305-307 Internal Audit Summer Job As a summer job you have been hired as an intern in the internal audit department of a large national retail organization. As part of your job, you will be assisting with a vulnerability assessment prior to conducting a risk assessment.

Then, the team will consider how controls in could affect privacy at the organization, prior to testing these controls.

A) Describe four factors that would increase the vulnerability of your organization’s information assets. (4 marks)

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Response: Chapter 3 Threats to Information Privacy, pp. 76-78 B) For each of the following types of controls: • define or describe the type of control, and • provide an example of that type of control that might contribute to improved privacy over customer data at the retail organization.

(8 marks) Response: Chapter 3 Protecting Information Resources, pp. 90-99 C) Your internal audit team members will be working at two different locations at the organization: some of you will be working in Toronto, while others will be in Montreal. Provide four examples of how your team could use information technology to collaborate during the completion of your work. (4 marks) Response: Chapter 5 Network Applications, pp. 150-154 D) Describe how you could use personal application software to assist you in your job. (5 marks) Response: Technology Guide 2, Application Software, p. 398

Lovely Hands Company Lovely Hands Company (LHC) is a jewelry store that specializes in diamond rings, Rolex watches and precious stone ornaments, such as diamond earrings. LHC’s products start at $500 and go upwards to a few high end items that sell for hundreds of thousands of dollars. The in-store jeweler, a master craftsman, designs products for his customers, and is world-renowned for his original designs.

LHC is considering embedding tiny RFID chips, called the Memory Spot, on the inside of each jewelry item in inconspicuous locations. At a size only slightly larger than the tip of a pencil, the Memory Spot can easily be placed upon products in places where they are difficult to remove without the proper tools. The jeweler would be responsible for embedding and removing these chips. For low-end products (those that sell for less than $2,000), the chips would be permanently installed, while for high-end products they would be removed after customer payment by the jeweler, at the option of the customer.

The Memory Spot does not require a power source, as it uses power from the magnetic field generated by the wireless sensor network or by some wireless devices. The Memory Spot will contain information such as the materials present in the item (e.g. gold, platinum, emerald, or diamond), the item serial number, and its sales price. It will also contain the name and address of the store, and tracking software that can be remotely triggered in the event that the item is stolen. Since the Memory Spot reader must be very close to the item, the inside of the display cases will be fitted with readers, and trigger devices that can be turned on by employees with a foot button in the event of a robbery. The software will also be activated when the store closes at the end of the day, and deactivated when the store opens.

At time of purchase, store equipment will read the Memory Spot, match the information to the customer invoice, and transfer to the Memory Spot the customer’s name and address. In addition to using wireless systems for the Memory Spot, the store’s local area network is also enabled using wireless technology.

Required:

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A) Describe three different types of electronic payments that LHC could accept. (3 marks) Response: Chapter 6, Electronic payments, pp. 189-193 B) Describe two security threats that could occur with wireless networks. (2 marks) Response: Chapter 7, Wireless Security, pp. 229-230 C) The Memory Spot is a passive tag. Describe an active tag, and provide two advantages or disadvantages of active tags for LHC. (3 marks) Response: Chapter 7, Pervasive Computing, p. 227 D) Provide five specific examples of customer-touching applications that LHC could use. (5 marks) Response: Chapter 9, Operational CRM, pp. 271-272 E) Describe actions that the company can take to protect its wireless systems.

Response: Technology Guide 3, Computer-Based Actions, pp. 430-432

Men R Us Men R Us Limited (MRU) is a large men’s wear store with locations in Canada and the U.S. MRU has been in business for over 50 years, and has resisted the development of an online store, as it felt that its customers prefer to try on and buy their clothing, rather than purchase over the internet. MRU has a basic web site that provides information about store locations and the different lines of clothing that it offers.

The number of telephone calls to the store about prices has increased, as customers seem to be comparison shopping much more before deciding to buy. MRU believes that a web site online store presence could increase its sales, because it could advertise its products online, even if it was only for the purpose of comparison shopping.

Accordingly, it has decided that it will have its web site upgraded to provide for secure shopping.

MRU is considering several different development approaches in the development of its online store, and would like a further explanation of the advantages and disadvantages of these approaches before proceeding. In particular, it is considering outsourcing, the use of an application service provider, and prototyping.

Required: A) marks)

Describe the advantages and disadvantages to MRU of outsourcing the development of its online store. (3

Response: Chapter 12, Strategies for Acquiring IT Applications, p. 343 B)

Describe the advantages and disadvantages to MRU of the use of an application service provider. (4 marks)

Response: Chapter 12, Strategies for Acquiring IT Applications, p. 343

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C)

16

Describe the advantages and disadvantages to MRU of the use of prototyping.

(5 marks)

Response: Chapter 12, Alternative Methods and Tools for Systems Development, p. 350

Ogly Company Ogly Company produces baking and cooking equipment that is sold around the world and used by restaurants and bakeries. In addition, it produces parts that are sold to distributors who maintain and service the many different types of ovens and fryers. Some distributors are also authorized sales representatives who sell Ogly products.

Ogly sells a large variety of parts by means of its inter-organizational information system (IOS), based upon an extranet. The company web site lists products and their prices. Distributors order the products via the extranet, can check the status of their order and also make payments via the secure services offered.

Ogly also has a public portion to its web site, which can be searched by the general public. On these web pages, individuals and organizations can locate the distributor nearest them to help them service their existing baking and cooking equipment or buy new equipment. If a customer wants to sell used equipment, they can take it to a distributor, who will have it listed on the Ogly web site for resale.

Ogly’s web site is friendly to small processors (such as personal digital assistants and smart phones). This means that both a full version of the web site is available, as well as a less-memory intensive version that can be used on hand-held devices.

Required: A) For the following three e-commerce business models, describe the business model, and explain how Ogly Company could use the business model. (6 marks) • • •

Online auction Product customization Membership

Response: Chapter 6, Overview of E-Business and E-Commerce, p. 177 B) Ogly is considering implementing RFID (radio frequency identification) tagging systems on its inventory.

Identify advantages and disadvantages to Ogly of using RFID to track and manage its inventory. (5 marks) Response: Chapter 7, Pervasive Computing, p. 220-229 C) Provide three examples of how Ogly Company could use data mining. (3 marks) Response: Chapter 11, Business Intelligence, p. 313-314

Place Alexis Nihon

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A fire broke out in the office tower of Place Alexis Nihon, Montreal, across from the Forum, a community gathering centre. The building had stores and restaurants on the main level and a subway platform below. The fire department condemned the building and tenants were unable to retrieve anything from their offices for nearly two weeks. Fully 60% of the companies in this building did not survive more than 6 months, declaring bankruptcy or simply shutting down.

A) You are the IT manager of a company in this building. Your company sells directly to consumers through salesmen. What control measures should you use to prepare for such as disaster? What steps should you have taken after the disaster to minimize its impact on your company? (8 marks) Response: Chapter 3 Protecting Information Resources, p. 99 B) Normally, employees use the computer for processing sales orders, customer billing and employee payroll, inventory monitoring, purchase orders and payments to suppliers. What application programs would need to be recovered first? What application recoveries could wait until the situation was less critical? Justify your answers. (4 marks) Response: Chapter 3 Protecting Information Resources, p. 90 C) The fire was a blow to the company but also an opportunity to make improvements to prevent future disasters.

Identify 4 other types of disasters and their impacts. Also describe controls that could be implemented to prevent or reduce the impact of each. (8 marks) Response: Chapter 3 Protecting Information Resources, p. 90 (Figure 3.1)

Sweety Snacks.

Sweety Snacks Limited (SSL) is a coffee shop chain that has hundreds of locations around the world. Recently, it has been experiencing slumping sales due to the recession, and decided to close some of its stores. The remaining stores have been asked to pay closer attention to their sales and inventory, as well as trying to reduce costs, by using the information available from their computer-based information systems.

A) Describe an information technology (IT) architecture. How would an IT architecture be helpful to SSL? (2 marks) Response: Chapter 1, Information Systems: Concepts and Definitions, p. 12 B) Friedman described ten forcers or ‘flatteners’ as contributing to a ‘flat world.’ For each of the three flatteners listed below, describe the flattener clearly. Use the table below for your answer. (3 marks) Response: Chapter 1, The Global Web-Based Platform, p. 14 C) Describe three ways that enterprise systems (also known as ERP or enterprise resource planning systems) could benefit the company. (3 marks) Response: Chapter 8, Enterprise Resource Planning Systems, pp. 251-252

Case Appendix

D)

Describe two limitations of enterprise systems to the company. (2 marks)

Response: Chapter 8, Enterprise Resource Planning Systems, pp. 252-4

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