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<b>Chapter Number: 1 --- Question Type: True/False</b>

1) An information system collects, processes, stores, analyzes, and disseminates information for a specific purpose using a computer.

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11) In general, informed users tend to get more value from whatever technologies they use.

Answer: True

12) A combination of your high school grades, application essays, letters of recommendation, and Scholastic Aptitude Test (SAT) scores would be considered information.

Answer: True

13) A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation, and Scholastic Aptitude Test (SAT) scores, would be applying her knowledge in your application process.

17) An ERP system is an inter-organizational information system.Answer: False

18) An organization’s supply chain starts at the supplier and ends at the customer.Answer: True

19) E-commerce systems are a type of inter-organizational information systems.Answer: True

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20) An organization’s IT platform consists of the IT components and IT services.Answer: False

21) IT personnel use the IT infrastructure to develop information systems.Answer: False

22) Information is data that have been organized to provide value.Answer: True

23) Knowledge is data that have been organized to convey accumulated learning.Answer: True

24) Digital dashboards are special information systems that that support all managers of the organization.

Answer: True

25) The two major determinants of information systems support are the functions that employees perform within organizations and the cost of the information systems.Answer: False

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

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31) Transaction processing systems provide the input for the organization’s databases.Answer: True

32) 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.

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41) End user computing is when employees directly use computers in their work.Answer: True

Question Type: Multiple Choice

42) Which of the following is not a benefit of being an informed user of IT?a) Understanding what is “behind” applications you use in your organization.b) Providing input to enhance your organization’s applications

c) Helping to select new applicationsd) Keeping abreast of new technologiese) Working in the IT side of the organization.

43) The title of the executive who is in charge of the people who design and build information systems, the people who use those systems, and the people responsible for managing those systems is the

a) CEOb) CFOc) CIOd) CISe) CIT

44) What does a systems analyst do?a) Manages an IS service

b) Writes computer code.

c) Interfaces between end users and programmersd) Forecasts technology trends

e) Creates Web sites and pages

45) Which of the following statements concerning the management of information resources is not true?

a) They have an enormous strategic value within an organization and therefore are relied on.

b) Information systems are expensive to acquire, operate, and maintain.

c) Computers are decentralized throughout the organization, which makes it harder to manage.

d) Managing mainframes has become more difficult.

e) Managing information resources is divided between the MIS department and end users.

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46) Which of the following is the correct hierarchy from the lowest level to the highest level?

a) Knowledge, information, datab) Information, data, knowledgec) Data, information, knowledged) Data, information, experiencee) Information, experience, wisdom

47) _____ conveys understanding, accumulated learning, and expertise as they apply to acurrent problem.

a) Data

b) Informationc) Knowledged) Experiencee) Wisdom

48) _____ is (are) data that have been organized to have meaning and value to a recipient.

a) Insightsb) Informationc) Knowledged) Experiencee) Wisdom

49) The list of all your purchases from Amazon (books bought, price paid, dates) is defined as ___________.

a) Data

b) Informationc) Knowledged) Experiencee) Wisdom

50) If Amazon uses a list of all your purchases (books bought, price paid, dates) to recommend other books to you, then it is applying its _____.

a) Data

b) Informationc) Knowledge

d) Experience e) Wisdom

51) A listing of all courses offered at your university would be considered _____, whereas a listing of all courses required in your major would be considered _____.

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a) Information, data

b) Knowledge, informationc) Information, knowledged) Data, information e) Data, knowledge

52) You are registering for the next semester at your university. You take into account your major, the courses you need, the prerequisites for each course, the times you take each course, and the professors teaching each section, as well as your work schedule. Youare using _____ to select your class schedule.

a) Informationb) Knowledgec) Experienced) Wisdome) Data

53) A purchase of books in the college bookstore is ___________. The report at the end of the day showing sales totals for the day is ____________.

a) Information, knowledgeb) Information, datac) Data, informationd) Data, database

e) Data item, business intelligence

55) An organization’s IT components include all of the following except:a) A network.

b) Programsc) Proceduresd) A database e) Users

56) A(n) _____________ is a computer program designed to support a specific task or business process.

a) Interfaceb) Applicationc) Functional aread) Networke) Database

57) _____ is/are the computer hardware, software, and communications technologies that are used by IT personnel to produce IT services.

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a) IT componentsb) IT services

c) Information technologyd) An information system

e) A computer-based information system

58) An organization’s _____ consists of the physical facilities, IT components, IT services, and IT management that will support the entire organization.

a) Information technology architectureb) Information technology infrastructurec) Information technology

d) Information system

e) computer-based information system

59) IT personnel use _____ to produce _____. a) IT components, IT services

b) computer-based information systems, IT architecturec) IT infrastructure, IT architecture

d) IT infrastructure, IT platforme) IT components, IT architecture

60) The IT infrastructure is comprised of _______ and ________. a) IT components, IT personnel

b) IT components, IT servicesc) IT services, IT personnel

d) IT personnel, computer-based information systemse) Computer-based information systems, IT personnel61) Which of the following statements is false?

a) An application is a computer program designed to support a specific business process.b) Each functional area within an organization has only one application.

c) A functional area information system is the same as a departmental information system.

d) A functional area information system can obtain data from other functional area information systems.

e) App, application, and application program all mean the same thing.

62) Enterprise resource planning systems a) Were designed to process transactions faster.

b) Evolved because newer technologies made older systems obsolete.

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c) Use a common database for all functional areas.d) Are utilized to conduct site analyses.

e) All the above statements are true.63) Knowledge workers

a) Handle day-to-day operations within an organization.b) Make tactical decisions.

c) Advise middle managersd) Make routine decisions.e) Are generalists

64) Office automation systemsa) Support only the clerical staff.

b) Are comprised of software that is used to develop documents and spreadsheetsc) Include report generators.

d) Are a type of inter organizational system.e) Are usually developed in-house.

65) ___________ include B2B and B2C.a) Enterprise resource planning systemsb) Computer-based information systemsc) Functional area information systemsd) Inter organizational information systems

66) A collection of related files, tables, and so on that stores data and the associations among them is _____.

a) Hardwareb) Software c) A databased) A networke) Procedures

67) A set of programs that enable the hardware to process data is _____. a) Hardware

b) Application c) A databased) A networke) Procedures

68) Two information systems that support the entire organization are:

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a) Enterprise resource planning systems, dashboards

b) Transaction processing systems, office automation systems

c) Enterprise resource planning systems, transaction processing systemsd) Expert systems, office automation systems

e) Expert systems, transaction processing systems

69) _____ systems are designed to correct a lack of communications among _____.a) Office automation systems, expert systems

b) Transaction processing systems, functional area information systemsc) Enterprise resource planning systems, functional area information systems. d) Dashboards, office automation systems

e) Functional area information systems, enterprise resource planning systems70) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data.

a) Transaction processing systemb) Functional area information systemc) Dashboard

d) Enterprise resource planning systeme) Office automation system

71) Supply chain systems are which type of information system? a) Departmental information systems

b) Enterprise wide information systemsc) Inter organizational information systemsd) End-user computing systems

e) Individual information systems

72) Which information system is the most closely associated with the Internet?a) Transaction processing systems

b) Functional area information systemsc) Electronic commerce systemsd) Office automation systemse) Individual information systems

73) _____ attempt to duplicate the work of human experts by applying reasoning capabilities.

a) Expert systemsb) Dashboards

c) Functional area information systemsd) Decision support systems

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e) Business intelligence systems

74) An information system that analyzes credit card applications and suggests approval ordenial is a(n):

a) Expert systemb) Dashboard

c) Functional area information systemd) Decision support system

e) Business intelligence system

75) Which of the following statements is false?

a) IT ultimately decreases the number of managers and experts.b) IT makes managers more productive.

c) IT increases the number of employees who can report to a single manager.d) IT reduces stress by giving managers more time to make decisions. e) IT decreases the number of promotional opportunities.

76) Which of the following statements about the potential impact of IT on managerial workers is true?

non-a) IT will create more jobs than it eliminates.

b) Employees will feel a higher degree of loyalty towards their company.c) IT could cause employees to experience a loss of identity.

d) The flexibility of IT can minimize stress on the job.

77) Which of the following statements about your future role as a manager is false?a) The people I manage will likely be dispersed geographically.

b) The size of my team will likely be smaller than teams of today.c) There will be less emphasis on office politics.

d) Many of my decisions will be “real time”.

e) I will need IT tools to handle the data I utilize to make decisions.78) Which of the following statements about IT’s role in society is false?a) IT has created employee flexibility.

b) Robots can do many routine tasks.c) Robots can handle unfamiliar situations.

d) IT can be used to help doctors diagnose diseases.

e) Telepresence robots can act as the eyes and ears of a business manager.

79) Refer to Opening Case – Warby Parker: Warby Parker uses information technology in its business model to

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a) Allow consumers to upload photos and “try on” frames virtually. b) Raise money from investors.

c) Support its social mission.d) Support its showroom.e) Produce its products

80) Refer to IT’s About Business 1.1 – Businesses Create Their Own Apps: Small business owners who wish to create an app for their business have to

a) Build the app themselves.

b) Decide what they want the app to do

c) Hire programmers to build the app for them.d) Wait a long time for the app to be built

81) Refer to IT’s About Business 1.2 – The Digitization of Railroads: The Positive Train Control (PTC) systems

a) Works off existing light signal systems.b) Can stop trains by remote control.c) Measures a train’s braking space.d) Can be overridden by an engineer

82) Refer to IT’s About Business 1.3 – Telepresence Robots: Telepresence robots a) Have to be carried from room to room.

b) Are controlled from a central location.

c) Make it awkward in person-to-person meetings.d) Allow an employee to have “presence” in an office.

83) Refer to Closing Case #1– Today, Every Company Is a Technology Company – Software disruption

a) Only happens in technology companies.

b) Has not occurred in the automobile industry yet.c) Requires organizations to be agile.

d) Has not occurred in the financial services industry yet.

84) Refer to Closing Case #2– The Arab Spring – The demonstrations and protests in the Arab world mentioned

a) Succeeded despite a lack of connectivity among protestors. b) Were masterminded by IT programmers.

c) Relied heavily on the use of the Internet.d) Were carried out by politicians.

e) Gained most of their support from older, more experienced segments of the population.

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<b>CH1. Question Type: Short Answer</b>

85) Differentiate between information systems and information technology.86) Differentiate among data, information, and knowledge.

87) Differentiate between information technology and information technology infrastructure.

88) Discuss why information systems and information technologies are integral to your lives.

89) Discuss three ways in which information technology can impact managers.Question Type: Essay

90) Explain how information technology impacts individuals, organizations, and the world. Support your answer with concrete examples.

91) Discuss three positive and three negative societal effects of the increased use of information technology.

Apply Your Knowledge QuestionsQuestion Type: Multiple Choice

92) You have just been hired by the largest manufacturer in your area to join their management trainee program. You enjoyed your “computer course” in college and hope that you’ll be able to put that knowledge to good use. Which of the following might you expect to do during the management training program?

a) Code a new application

b) Recommend new technologies that might impact the organizationc) Design a new application

d) Become familiar with tools to support using data for decision makinge) Work 9-5 in your office.

93) As a manager in your company, you expect to retrieve ______ from operational systems and present it as _________ to your boss, who will react based on his ____________.

a) Knowledge, information, datab) Information, data, knowledgec) Data, information, knowledge

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d) Data, information, experiencee) Information, experience, wisdom

94) In your new position, you are told that you will be working with a business analyst. What would you expect this work to entail?

a) Review computer codeb) Explain the business processc) Test programs

d) Identify new technology that might benefit the organizatione) Create Web sites and pages

95) You are really excited about your new job in the finance area of a mid-size firm. One of your tasks requires you to look at the inventory that is on hand, the total amount of orders to be filled, and the cash balances. It took you a little time to realize that these are all accessible in the common database used by the company’s

a) FAIS systemb) B2C systemc) ERP systemd) BI systeme) ES systemf)

96) You are really excited about your new job in the finance area of a mid-size firm. One of your tasks requires you to look at the inventory that is on hand, the total amount of orders to be filled, and the cash balances. You need to dive deeper into the data to understand trends. The tools used for this are provided by the company’s

a) FAIS systemb) B2C systemc) ERP systemd) BI systeme) ES systemf)

97) A ____________ collects and processes data to support the business functions.a) FAIS system

b) B2C systemc) ERP systemd) BI systeme) TPS system

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<b>Chapter Number: 2</b>

<b>Question Type: True/False</b>

1) Competitive advantage leads to control of a market Answer: True

2) The business environment refers to the industry that a company is in.Answer: False

3) Globalization is the integration and interdependence of many facets of life made possible by rapid advances in information technology.

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21) Michael Porter concludes that the overall impact of the Internet is to increase competition, which generally diminishes a firm’s profitability.

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Answer: True

32) It's a good idea for a company to select two competitive advantage strategies.Answer: False

Question Type: Multiple Choice

33) Which of the following statements is false?

a) Competitive advantage is based on some measurement such as cost, quality, or speed.b) Competitive advantage enables a company to function effectively within a market.c) Competitive advantage leads to higher-than-average profits.

d) Competitive advantage requires the use of technology.e) Competitive advantage applies to companies of all sizes.

34) Business pressures on organizations are created when there are changes ina) Social factors

b) Economic factorsc) Legal factorsd) Political factors

e) Changes in all of the above will create business pressures.

35) Market pressures include which of the following? a) the global economy

b) weak competition

c) a homogeneous workforced) weak customers

e) high-cost offshore labor

36) The workforce in developed countries is exhibiting all of the following trends except:a) It is becoming more diversified.

b) It includes more women.c) It includes more single parents.

d) It includes fewer persons with disabilities.e) It includes more minority-group members.

37) Today’s customers have ________ .

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a) less knowledge about productsb) less sophistication

c) difficulty in finding information about productsd) higher expectations

e) difficulty in comparing prices

38) Which of the following statements concerning technology pressures on modern businesses is true?

a) Technology changes so rapidly that organizations should wait before they release new technology-based products.

b) New technologies offer alternative service options.

c) New technologies will never replace existing technologies.

d) The amount of information on the Internet remains stable from year to year.e) The important information on the Internet is fee-based.

<i>39) Which of the following is not an example of the growing initiative called green IT?</i>

a) Designing an IT infrastructure to support sustainability.

b) Building systems that monitor carbon throughout the organization.c) Asking vendors about compliance on environmental standards.d) Building computer applications that use less energy

e) Designing energy-efficient data centers.

40) The digital divide is an example of which type of societal pressure? a) social responsibility

b) government regulationsc) protection against terrorismd) ethics

e) information overload

41) Which one of the following statements is false?

a) Businesses tend to view government regulations as expensive constraints on their activities.

b) Government deregulation reduces competition.

c) IT support is essential for compliance with many new regulations.

d) IT has been used to identify patterns of behavior associated with terrorist activities.e) Information ethics can destroy the morale of a company’s employees.

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42) Which of the following is not a response by organizations to business pressures?a) Delay releases of innovated products.

b) Build strategic systems that enable an organization to increase market share or profits.c) Provide tools that satisfy customers so they don’t go to a competitor.

d) Manufacture customized goods at a lower cost.

e) Conduct business electronically with customers and business partners.

43) Producing identical items in large quantities is called:a) strategic systems.

b) customer focus.

c) continuous improvement.d) Mass production.

e) Mass customization.

<i>45) The Body metrics body scanner is best characterized as an example of:</i>

a) mass production.b) customer focus.

c) real-time customer input.d) Mass customization.e) continuous improvement.

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

a) threat of entry of new competitorsb) bargaining power of suppliersc) bargaining power of customersd) Threat of substitute products

e) rivalry among existing firms in an industry

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47) Competitive advantage for an organization manifests itself as all of the following except:

a) Lower costsb) Higher quality

c) Increased time to marketd) Increased profits

e) Increased speed

48) For most companies, the Web _____ the threat that new competitors will enter the market by _____ traditional barriers to entry.

a) decreases, increasingb) Increases, decreasingc) increases, increasingd) decreases, decreasing

49) _____ is a feature that must be offered by a competing organization in order to survive in the marketplace.

a) Competitive advantageb) An entry barrier

c) Strategic advantaged) Rapid time-to-markete) One-to-one marketing

50) The threat of competitors’ entering the automobile manufacturing industry is _____ because barriers to entry are so _____.

a) low, lowb) high, highc) high, lowd) Low, high

51) The threat of competitors’ entering a market is very high in industries that perform a(n) _____ role and in industries where the primary product or service is _____.a) intermediation, physical

b) broker, physicalc) sales, financial

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d) financial, digitale) Intermediation, digital

52) How does the Internet affect the way you purchase your textbooks? a) The Internet gives you fewer choices.

b) The Internet increases your bargaining power.c) The Internet provides you with less information.d) The Internet decreases your bargaining power.e) The Internet increases your switching costs.

53) Buyer power is _____ when buyers have many choices from whom to buy and _____when buyers have few choices.

a) high, the sameb) High, lowc) low, lowd) low, highe) low, the same

54) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.

a) e-commerce, digitalb) digital, e-commercec) digital, physicald) physical, financiale) Physical, digital

55) Porter’s competitive forces model helps organizations identify _____, whereas his value chain model helps organizations identify specific _____.

a) competitive opportunities, activitiesb) General strategies, activities

c) activities, competitive opportunitiesd) activities, general strategies

e) primary activities, support activities

56) _____ activities create value for which customers are willing to pay, whereas _____ activities do not add value directly to the firm’s products or services.

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a) Support, primary

b) Human resource management, inbound logisticsc) Procurement, operations

d) Primary, support

e) Accounting, outbound logistics

57) If there are _____ substitutes for an organization’s products or services, then the threat of substitutes is _____.

a) Many, highb) few, lowc) few, highd) many, low e) few, negligible

58) New technologies can produce new products very _____, which _____ the threat from substitute products.

a) slowly, decreasesb) slowly, increasesc) slowly, does not affectd) quickly, increasese) quickly, does not affect

59) 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 competitorsb) bargaining power of suppliersc) bargaining power of customersd) threat of substitute products

e) Rivalry among existing firms in an industry

60) Walmart’s automatic replenishment system, which enables the company to reduce inventory storage requirements, is an example of which strategy for competitive advantage?

a) Cost leadershipb) differentiationc) innovation

d) operational effectivenesse) customer-orientation

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61) Which strategy for competitive advantage involves offering different products, services, or product features?

a) cost leadershipb) Differentiationc) innovation

d) operational effectivenesse) customer-orientation

62) Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

a) cost leadershipb) differentiationc) Innovation

d) operational effectivenesse) customer-orientation

63) The introduction of ATM machines by Citibank was a classic example of which strategy for competitive advantage?

a) cost leadershipb) Innovationc) differentiation

d) operational effectivenesse) customer-orientation

64) Southwest Airlines’ low-cost, short-haul strategy is an example of which strategy for competitive advantage?

a) cost leadershipb) Differentiationc) innovation

d) operational effectivenesse) customer-orientation

65) Which strategy for competitive advantage involves improving the manner in which an organization executes its internal business processes?

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a) cost leadershipb) differentiationc) innovation

d) Operational effectivenesse) customer-orientation

66) When Amazon welcomes you by name back to its Web site on your second visit, it is employing which strategy for competitive advantage?

a) cost leadershipb) differentiationc) innovation

d) operational effectivenesse) customer-orientation

67) IT will impact managers’ jobs in all of the following ways except: a) managers will have time to get into the field

b) managers can spend more time planning

c) Managers can spend more time “putting out fires”d) managers can gather information more quickly

68) Porter’s _____ help(s) companies identify general strategies, whereas his _____ help(s) to identify specific activities where companies can use the strategies for greatest impact.

a) value chain model, competitive forces modelb) primary activities, support activities

c) competitive forces model, primary activitiesd) Competitive forces model, value chain modele) value chain model, support activities

69) Which of the following is not an example of business – IT alignment?a) The company goals are clear to every IT and business employee.

b) The company ensures that IT employees understand how the company makes money.c) The company views IT as a way to support the business but not as a way to create new revenue streams.

d) IT professionals rotate into business departments.

e) The company views customer service as extremely important.

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70) Which of the following is not a cause of inadequate alignment between IT and business?

a) A lack of communicationb) Different objectives

c) Not understanding each group’s expertise

d) Lack of IT knowledge on the part of the business executivese) Lack of funds

71) Refer to Opening Case – Sharing Bicycles: What was Sharing Bicycles’s competitive advantage?

a) They rent bikes by the hour.

b) Three companies work together to make the sharing of bikes feasible.c) The entry barrier for new competitors is high. .

d) It doesn’t require a lot of employees.

e) It plays on society’s efforts to be more “green”.

72) Refer to IT’s About Business 2.1 – Schneider National Simulates Business Operations: Which of Porter’s competitive forces does the simulator help Schneider address?

a) The threat of entry of new competitorsb) The bargaining power of suppliers

c) The bargaining power of customers (buyers)d) The threat of substitute products or servicese) The rivalry among existing firms in the industry

73) Refer to IT’s About Business 2.1 – Schneider National Simulates Business Operations: Which business pressure does the simulator help Schneider address?a) Globalization

b) The Changing Nature of the Workforcec) Powerful Customers

d) Information Overload

e) Compliance with Government Regulations

74) Refer to IT'S About Business 2.2 – The Surui Tribe of the Amazon: The success of the Sunui tribe’s efforts to sustain their traditions and lands was in part due to which business pressure?

a) Globalization

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b) The Changing Nature of the Workforcec) Social Responsibility

d) Information Overload

e) Compliance with Government Regulations

75) Refer to IT’s About Business 2.3 – Two Strategic Information Systems: Hilton World Wise's Light Stay system is a response to which business pressure?

a) Globalization

b) The Changing Nature of the Workforcec) Social Responsibility

d) Information Overload

e) Compliance with Government Regulations

76) Refer to Closing Case #1 – A Tool to Combat Terrorism and Fight Crime: Palantic software was originally develop by PayPal to

a) Process transactions.b) Detect fraud

c) Identify new markets.

d) Allow PayPal to operate globally.e) Experiment with new technology.

77) Refer to Closing Case #2 – The Information Technology Behind the World’s Largest Airline: The United/Continental merger required integrating three major systems. The primary reason this needed to be done was

a) to correct problems in each of the individual systems.b) to provide a flexible passenger information system.c) the data was different in the individual systemsd) To obtain a single operating certificate.

e) ensure flights arrived on time.

Question Type: Short Answer

78) Identify the three types of business pressures, and explain how organizations can use IT to respond to each one.

79) Using Porter’s competitive forces model, contrast the bargaining power of suppliers and the bargaining power of customers (buyers).

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<i>80) What are switching costs, and why would a company care about them?</i>

81) Differentiate between Porter’s competitive forces model and his value chain model.82) Differentiate between primary activities and support activities in Porter’s value chain model.

83) Evaluate the assertion that an information system by itself can rarely provide a sustainable competitive advantage.

Question Type: Essay

84) Explain what a business environment is and what factors within the environment put pressure on the business.

85) Explain how changes in social responsibility, government regulation/deregulation, social programs, protection against terrorism, and ethics put pressure on modern businesses.

86) Identify the five forces of Porter’s competitive forces model, and explain how the Internet impacts each one.

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

Question Type: Multiple Choice

88) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. Ted wants to build a Web site for the business that will allow customers to order cookies and cupcakes for later pickup. This idea represents:a) An organizational response to business pressures.

b) A technology response to business pressures.c) A response to powerful customers

d) A response to globalization.e) An effort to “go green.”

89) Ted works in his family’s bakery business. They supply bread and rolls to neighboring restaurants, and have their own store-front where they sell breads, rolls, pastries, cookies, and cupcakes. Ted thinks he should put free Wi-Fi in the store front (which seats about 15 people). This idea reflects which one of Porter’s five competitive forces?

a) threat of entry of new competitorsb) bargaining power of suppliers

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c) bargaining power of customersd) threat of substitute products

e) Rivalry among existing firms in an industry

90) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start a Cookie Club that gives each member (joining is free) a free cookie after they have purchased a dozen. This idea reflects which one of Porter’s five competitive forces?

a) threat of entry of new competitorsb) bargaining power of suppliersc) Bargaining power of customersd) threat of substitute products

e) rivalry among existing firms in an industry

91) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start offering gluten free products.

Customers have been asking for them and leaving when he tells them he doesn’t have any. This idea reflects which one of Porter’s five competitive forces?

a) threat of entry of new competitorsb) bargaining power of suppliersc) bargaining power of customersd) Threat of substitute products

e) rivalry among existing firms in an industry

92) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own store front where they sell breads, rolls, pastries, cookies and cupcakes. Ted wants to start being able to ship an order that comes in from their Web site. This idea reflects

a) An organizational response to business pressures.b) A technology response to business pressures.c) A response to powerful customers

d) A response to globalization.e) An effort to “go green.”

93) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own store front where they sell breads, rolls,

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pastries, cookies and cupcakes. At the end of each day, Ted drives the day old products to the local homeless shelter and donates them. This idea reflects

a) An organizational response to business pressures.b) A technology response to business pressures.c) A response to powerful customers

d) A response to globalization.e) Social responsibility.

94) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. Ted wants to modify the Web site for the business to allow customers to order cookies and cupcakes for later pickup. This idea represents:a) An organizational response to business pressures.

b) A technology response to business pressures.c) A response to powerful customers

d) A response to globalization.e) An effort to “go green.”

95) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. Ted knows he needs to understand more about his customers to anticipate their needs. This is called:

a) Customer datab) Customer knowledgec) Customer intimacyd) Customer informatione) Customer processing

96) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. They’ve started making cupcakes but not frosting them. When a customer buys a cupcake, he/she specifies the flavor of frosting. This idea represents:

a) Customer serviceb) Mass-productionc) Made-to-orderd) Customizatione) Mass-customization.

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97) Ted works in his family’s bakery business. They supply bread and rolls to

neighboring restaurants, and they have their own storefront where they sell breads, rolls, pastries, cookies, and cupcakes. They’ve started making cupcakes but not frosting them. When a customer buys a cupcake, he/she specifies the flavor of frosting. This idea represents:

a) Customer serviceb) Mass-productionc) Made-to-orderd) Customizatione) Mass-customization.

<b>Chapter Number: 3</b>

<b>Question Type: True/False</b>

1) It is easy to manage all the data coming into an organization.Answer: False

2) The best way to capture the data in an organized format is to use a database.Answer: True

3) Increasing amounts of external data need to be considered in making organizational decisions.

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16) When data are normalized, attributes in the table depend on the primary key and any secondary keys.

Answer: False

17) In a data warehouse, existing data are constantly purged as new data come in. Answer: False

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18) An organization’s data warehouse generally maintains its operational data. Answer: False

19) Online analytical processing (OLAP) involves the analysis of accumulated data by end users.

Question Type: Multiple Choice

23) Which of the following has (have) the broadest impact on an organization?a) Decisions about hardware.

b) Decisions about softwarec) Decisions about datad) A and B

e) All of the above have an equal impact.

24) Which of the following is not a reason why managing data is difficult over time?a) New systems are developed.

b) The media the data are stored on becomes problematic.c) New sources of data are created.

d) The amount of data increases exponentially.

e) All of these are reasons why managing data is difficult over time.

25) _____ is a formal approach to managing data consistently across an entire organization.

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a) Database management

b) Enterprise information managementc) Data warehousing

d) Data governancee) Data mart

26) _____ provide(s) companies with a single version of the truth for their data.a) Data warehouses

b) Data martsc) Databases

d) Master data management

e) Enterprise information management

27) Organizations are turning to data governance for which of the following reasons?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 organization’s databases.e) Data across their organizations are generally consistent.

28) _____ describes the activities of the business, whereas _____ categorize(s), aggregate(s), and evaluate(s) data generated by the organization’s activities.a) Transaction data, master data

b) Source data, transaction datac) Operational data, master datad) Master data, source data

e) Business dimensional data, databases

29) Not including alphabetic characters in a Social Security Number field is an example of _____ .

a) Data isolation.b) Data integrity.c) Data consistency.d) Data redundancy.

e) Application/data dependence.

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30) _____ occurs when applications cannot access data associated with other applications.

a) Data isolationb) Data integrityc) Data consistencyd) Data redundancy

e) Application/Data dependence

31) _____ occurs when the same data are stored in many places.a) Data isolation

b) Data integrityc) Data consistencyd) Data redundancy

e) Application/Data dependence

32) _____ occurs when various copies of the data agree.a) Data isolation

b) Data integrityc) Data consistencyd) Data redundancy

34) In the data hierarchy, the smallest element is the _____.a) Record.

b) Bit.c) Byte.d) Character.e) File.

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35) A(n) _____ is a logical grouping of characters into a word, a small group of words, ora complete number.

a) Byteb) Fieldc) Recordd) Filee) Database

36) A(n) _____ is a logical grouping of related fields.a) Byte

b) Fieldc) Recordd) Filee) Database

37) A(n) _____ is a logical grouping of related records.a) Byte

b) Fieldc) Recordd) Filee) Database

38) A(n) _____ represents a single character, such as a letter, number, or symbol.a) Byte

b) Fieldc) Recordd) Filee) Database

39) In a database, the primary key field is used to _____. a) specify an entity

b) create linked listsc) identify duplicated datad) uniquely identify a recorde) uniquely identify an attribute

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40) _____ are fields in a record that have some identifying information but typically do not identify the record with complete accuracy.

a) Primary keysb) Secondary keysc) Duplicate keysd) Attribute keyse) Record keys

41) As an individual student in your university’s student database, you are a(n) _____ of the STUDENT class.

a) instanceb) individualc) representatived) entity

e) relationship

42) 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-oneb) one-to-manyc) many-to-oned) many-to-manye) some-to-many

43) 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.e) file.

44). A database management system is primarily a(n) _____.a) file-handling program

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45) In the relational database model, related tables can be joined when they contain common _____.

a) primary keysb) rows

c) recordsd) columns e) files

46) _____ tell the database management system which records are joined with others in related tables.

a) Primary keysb) Secondary keysc) Common attributesd) Common filese) Common fields

47) Data dictionaries perform all of the following functions except:a) Providing information on each record.

b) Providing information on why attributes are needed in the database.c) Defining the format necessary to enter data into the database.d) Providing information on the name of each attribute.

e) Providing information on how often attributes should be updated.48) In a relational database, every row represents a(n) _____.a) file

b) recordc) attributed) primary keye) secondary key

49) A standardized language used to manipulate data is _____.a) MS-Excel

b) Oracle

c) query-by-example languaged) Structured Query Languagee) data-manipulation language

50) Data dictionaries provide which of the following advantages to the organization? a) They display data values.

b) They enable faster program development.

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c) They make it easier to input data.d) They can be used by end users.

51) _____ is a method for analyzing and reducing a relational database to its most streamlined form.

a) Structured queryb) Normalizationc) Query by exampled) Joining

e) Relational analysis

52) When data are normalized, attributes in the table depend only on the _____.a) secondary key

b) common attributec) primary keyd) common rowe) common record

53) The data in a data warehouse have which of the following characteristics? a) They are organized by subject.

b) They are coded in different formats.c) They are updated in real time.

d) They are typically retained for a defined, but limited, period of time.e) They are organized in a hierarchical structure.

54) The data in a data warehouse:a) are updated constantly in real time.

b) are updated in batch mode, approximately once per day.c) are not updated.

d) are purged constantly as new data enter.e) are available for MIS analysts, but not users.

55) The process of moving data from various sources into the data warehouse is called:a) uploading.

b) extracting, transforming, and loading.c) online transaction processing.

d) master data management.e) online analytical processing.

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56) Compared to data warehouses, data marts have which one of the following characteristics?

a) They cost less.

b) They have longer lead times for implementation.c) They provide for central rather than local control.d) They contain more information.

e) They are more difficult to navigate.

57) _____ is 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.

a) Discovery

b) Knowledge managementc) Decision support

d) Online analytical processinge) Data mining

58) _____ can be exercised to solve a problem, whereas _____ may or may not be able to be exercised to solve a problem.

a) Knowledge, informationb) Data, informationc) Information, datad) Information, knowledgee) Data, knowledge

59) Explicit knowledge has which of the following characteristics? a) objective

b) personalc) slow

d) costly to transfere) ambiguous

60) Tacit knowledge has which of the following characteristics?a) codified

b) objectivec) unstructuredd) rationale) technical

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