Test Bank For Information Systems Today Managing in the Digital World 9th Edition By Joseph Valacich by digitaldownload87

Information Systems Today Managing in the Digital World 9e Joseph Valacich, Christoph Schneider, Matthew Hashim (Test Bank All Chapters, 100% Original Verified, A+ Grade) Information Systems Today, 9e (Valacich) Chapter 1 Managing in the Digital World 1) Advances in cloud computing (think Gmail, Evernote, or DropBox) allow for accessing emails, files, notes, and the like from different devices, enhancing portability and mobility in computing. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 2) The use of nearly any information technology or system to support every part of the business is known as e-business. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 3) The trend of using one's own device for communicating in the workplace is an example of consumerization of IT. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 4) The development of low-cost computing platforms and communication technologies is an economic change brought about by globalization enabled by information technology. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

5) Increase in frequency of international travel, tourism, and immigration is a cultural change brought about by globalization enabled by information technology. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 6) Globalization is the integration of economies throughout the world, enabled by innovation and technological progress. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 7) One of the main reasons for a company to outsource its business is to focus on non-core business activities. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 8) Countries such as India remain popular for offshore outsourcing because of rising salaries. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 9) The network effect refers to the notion that the value of a network is based on the number of networks being used. Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

10) Vendors are required by law to respect the privacy of people who make Web purchases. Answer: FALSE AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 11) Knowledge is the ability to understand information, form opinions, and make decisions or predictions based on the information. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 12) An information system is a combination of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute data. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 13) The technical area of competency of an IS professional is the easiest to maintain in the digital world because of the huge popularity of individual technologies. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 14) Transaction processing systems (TPS) are used by a narrow range of organizations only to process customer transactions more efficiently. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

15) The purpose of a knowledge management system is to create, store, analyze, and manage spatial data. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 16) Office automation systems such as Microsoft Office and the OpenOffice.org Productivity Suite provide word processing, spreadsheet, and other personal productivity tools, enabling knowledge workers to accomplish their tasks. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 17) IS personnel with service mentality believe that the customers own the technology and the information and that the technology and information are there for the customers, not for the systems personnel. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 18) The Electronic Communications Privacy Act (ECPA) offered far stronger support for e-mail communications than it did for voice mail. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 19) Data about one's tastes and preferences is an example of demographic data. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 1.5: Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

20) Identify a true statement about the function of knowledge workers. A) They use knowledge to perform their jobs, but do not create knowledge. B) They create, modify, and/or synthesize knowledge as a fundamental part of their jobs. C) They lack the ability to solve non-routine problems at work. D) They modify knowledge created by others, but do not create knowledge themselves. E) They work in a monotonous workplace and lack innovation. Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 21) Which of the following predictions made by Peter Drucker is true? A) Knowledge workers have less bargaining power than workers in other industries. B) Knowledge workers lack valuable real-world skills. C) Knowledge workers lack reliance on formal education. D) Knowledge workers are continually learning how to do their jobs better. E) Knowledge workers are paid less in comparison with their prior industrial counterparts. Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 22) Who among the following coined the term "knowledge worker"? A) Peter Drucker B) Alvin Toffler C) Johannes Gutenberg D) Thomas L. Friedman E) Mark Zuckerberg Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

23) The various services offered by Google, such as Gmail (e-mail), Google Drive (word processing), or Google Calendar, are good examples of ________. A) cloud computing B) computer assembling C) data mining D) systems integration E) internetworking Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 24) Which of the following terms means "knowing how to use a computer"? A) information security B) cloud computing C) computer literacy D) computer compatibility E) collaborative thinking Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 25) The ability to independently learn new technologies as they emerge and assess their impact on your work and life is called ________. A) computer networking B) computer adaptation C) computer fluency D) computer compatibility E) computer assembling Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

26) Which of the following best describes the network effect? A) The value of a network depends on the number of mobile devices that are attached. B) It refers to the type of network an organization employs. C) It refers to the notion that the value of a network increases with the number of users. D) It refers to the effect of the wireless devices that are attached. E) It refers to the idea that networks are attached to each other. Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 27) Which of the following is an economic change brought about by globalization enabled by information technology? A) increase in the frequency of worldwide fads and phenomena B) development of low-cost computing platforms C) availability of low-cost communication systems D) increase in the outsourcing of labor E) decentralization of organizations Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 28) A network of a broad range of physical objects that can automatically share data over the Internet is called ________. A) the Internet of Things B) the Broad Internet C) the Industrial Internet of Things D) the Wireless Internet Network E) the Internet of Big Data Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

29) A dataset comprised of extremely large amounts of complex data would best be described as ________. A) mega data B) network data C) extreme data D) big data E) a database Answer: D AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 30) Identify a key factor of globalization. A) evolution of technology B) anchor point milestones C) concept development projects D) timeboxing strategies E) external interface requirements Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 31) Joe and Megan know how to use a computer. Which of the following describes this fact? A) computer knowledge worker B) expert computer user C) computer expert D) computer fluency E) computer literacy Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

32) Which of the following best explains the process of moving business processes or tasks to another company? A) offshoring B) liquidating C) cloud computing D) downsizing E) outsourcing Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 33) Which of the following can be cited as an example of outsourcing? A) Microsoft hands over its customer service function to Convergys, located in India. B) Volkswagen acquires a steel manufacturing plant to reduce its overall production costs. C) Dell sources computer parts from suppliers located in Russia. D) Audi starts a manufacturing facility in China to take advantage of low labor costs. E) P&G acquires a retail outlet to reduce its distribution costs. Answer: A AACSB: Analytical thinking Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Application 34) The Internet of Things and the massive amounts of data generated enabled the creation of service-oriented business models. Identify this model. A) service B) servitization C) extreme data D) big data E) a database Answer: B AACSB: Analytic skills Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

35) Outsourcing has seen a huge increase because of the ________. A) increase in decentralization B) increase in the use of cloud computing C) increase in advertising costs D) decrease in telecommunication costs E) decrease in the cost of raw materials Answer: D AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 36) TransCorp is an IT firm that is looking to outsource its payroll processes. Which of the following statements, if true, would most strengthen the decision to outsource? A) Companies in other countries can do the same amount of work at a comparable cost. B) Outsourcing has become a trend among most firms in developed nations. C) Companies in other countries are more efficient in all aspects of work and are also cost effective. D) Firms across the globe are adopting cloud computing systems. E) The firm is enjoying good profit margins. Answer: C AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Application 37) Which of the following is a governmental challenge of operating in the digital world? A) differences in power distance and uncertainty avoidance B) import and export regulations C) aging population in the United States D) videoconferences across different time zones E) availability of labor force and salary differences Answer: B AACSB: Analytical thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

38) Peter Drucker stated that a knowledge society would emerge in the future that meant ________. A) knowledge workers are typically professionals who are well educated B) processing knowledge would be as important as processing land, labor, or capital C) a society would be computer literate D) professionals would possess many different computer devices E) knowledge workers would lead society Answer: B AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 39) Which of the following is a geoeconomic challenge of operating in the digital world? A) differences in network infrastructures B) differences in the concept of time and life focus C) differences in measurement units D) differences in export and import regulations E) differences in languages Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 40) The term urbanization is best described as ________. A) the expansion of city boundaries B) the movement of urban areas to the country C) the movement of rural populations to urban areas D) the movement of people between cities E) the loss of people in major cities Answer: C AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

41) The convergence of information technology and operations technology, offering the potential for tremendous improvements in efficiency, product quality, agility, and flexibility, allowing companies to mass-produce customized products and better monitor supply chains, refers to which term below? A) Industrial Internet of Things B) Internet of Things C) Applications in the Cloud D) The Technology Effect E) The Technology of Things Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 42) Identify a major ethical challenge society faces today when considering the strong linkage between computer literacy and a person's ability to compete in the information age. A) horizontal disparity B) digital divide C) electronic gap D) power distance E) knowledge divide Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 43) Which of the following can be cited as an example of a digital divide? A) Unlike Joey, Ryan has access to more books and good advice because he studies in a better school. B) Unlike Ben, Claudia possesses superior analytical skills that make her better at mathematics. C) Kevin has better chances of promotion when compared to Vincent because of his people skills. D) Lora has access to more information than Frank because she knows how to operate a computer. E) Sam has better multitasking skills than Neal that make him a better manager. Answer: D AACSB: Analytical thinking; Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Application

44) A global project called One Laptop per Child is attempting to distribute low-cost laptop computers to children in developing countries around the world in an attempt to shrink the ________. A) digital divide B) systems integration C) power distance D) horizontal disparity E) information privacy Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Application 45) One of the key drivers of continuous innovations and new business models has been the rise of APIs which stands for ________. A) application program installer B) assembler program interface C) application programming interface D) assembler plugin interface E) application processing installer Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 46) The drivers of digital density include ________. A) Connections, Data, Interactions B) Connections, Data, Internet of Things C) Class, Data, Interactions D) Class, Developer, Internet of Things E) Connections, Developer, Interactions Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

47) ________ refers to physical computer equipment, such as the computer monitor, central processing unit, or keyboard. A) Adware B) Malware C) Stealware D) Hardware E) Spyware Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 48) ________ refer(s) to a program or set of programs that tell the computer to perform certain tasks. A) Software B) Firmware C) Hardware logic D) Data E) Networks Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 49) Which of the following statements is true about information systems (IS) and information technology (IT)? A) IT programs have a stronger managerial focus than IS programs. B) IS programs have a stronger data retrieval capacity than IT programs. C) Software and telecommunications are present in IS, but excluded from IT. D) The difference between IT and IS is increasing due to globalization. E) IT programs are more technical than IS programs. Answer: E AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

50) Which of the following statements is true about data? A) It can be defined as a representation of reality. B) It is the ability to understand information. C) It has no meaning in and of itself. D) It is the ability to make decisions or predictions based on information. E) It organizes or manipulates information to make it suitable for a given task. Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 51) Which of the following statements is true about information? A) It has no meaning in and of itself. B) It organizes or manipulates knowledge to make it suitable for a given task. C) It is a set of unformatted words and numbers. D) It is a representation of reality. E) It is the ability to make predictions based on data. Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 52) Which of the following statements is true about knowledge? A) It has no meaning in and of itself. B) It is a set of unformatted words and numbers. C) It is the ability to understand information. D) It helps to convert information into raw data. E) It has little value in comparison with raw data. Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

53) Which of the following is true about the responsibility of an IS manager in the context of information systems management? A) He is the highest-ranking official and is responsible for IS use throughout the firm. B) He is responsible for managing an existing information system. C) He is the lowest-ranking official responsible for managing databases throughout the organization. D) He is responsible for managing security measures of a newly installed information system. E) He is the highest-ranking official and is responsible for strategic planning throughout the organization. Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 54) Which of the following IS personnel is responsible for managing disaster recovery within an organization? A) IS security manager B) IS auditor C) Webmaster D) programmer E) database administrator Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 55) Which of the following is the highest-ranking IS personnel responsible for strategic planning and IS use throughout a firm? A) chief information officer B) IS security manager C) IS auditor D) systems analyst E) database administrator Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

56) In information systems management, a systems consultant is responsible for ________. A) analyzing business requirements and selecting information systems that meet those needs B) coding, testing, debugging, and installing programs C) auditing information systems for compliance with internal and external standards D) managing security measures and disaster recovery E) providing information systems knowledge to external clients Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 57) Which of the following core competencies are part of an IS personnel's technical knowledge and skills? A) systems analysis and design B) integrating subsystems and systems C) interpersonal skills and group dynamics D) network administration E) technological communication and presentation Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 58) Which of the following core competencies is part of an IS personnel's business knowledge and skills? A) cloud computing B) technological communication and presentation C) systems development life cycle D) integrating subsystems and systems E) virtualization Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

59) Which of the following core competencies is part of an IS personnel's systems knowledge and skills? A) hardware platforms B) virtualization C) information gathering and analysis D) cabling and network interface cards E) application software Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 60) Connecting host computers and their networks together to form even larger networks is called ________. A) data mining B) internetworking C) Ethernet framing D) network simulation E) queuing Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 61) The process of connecting separate information systems and data to improve business processes and decision making is known as ________. A) database development B) business intelligence C) systems integration D) cloud computing E) data mining Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

62) Which of the following types of information systems facilitates collaboration and knowledge sharing? A) visualization system B) word processor C) intelligent system D) electronic commerce system E) social software Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 63) Which of the following types of information systems enables people to communicate, team up, and coordinate with each other? A) electronic commerce system B) geographic information system C) virtualization system D) intelligent system E) collaboration system Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 64) Which of the following types of information systems creates, stores, analyzes, and manages spatial data? A) electronic commerce system B) collaboration system C) virtualization system D) geographic information system E) decision support system Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

65) Which of the following types of information systems enables customers to buy goods and services from a firm's Web site? A) supply chain management system B) electronic commerce system C) geographic information system D) collaboration system E) customer relationship management system Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 66) Which of the following types of information systems supports the coordination of suppliers, product or service production, and distribution? A) supply chain management system B) electronic commerce system C) intelligent system D) collaboration system E) geographic information system Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 67) Identify the purpose of a transaction processing system used in organizations. A) to support the activities within a specific functional area of the firm B) to handle day-to-day business event data at the operational level of the organization C) to produce detailed information to help manage a firm or part of a firm D) to support the coordination of suppliers, product or service production, and distribution E) to enable customers to buy goods and services from a firm's Web site Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

68) The purpose of a(n) ________ is to support and integrate all facets of the business, including planning, manufacturing, sales, marketing, and so on. A) intelligent system B) functional area information system C) electronic commerce system D) enterprise resource planning system E) management information system Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 69) The purpose of an intelligent system is to ________. A) enable people to communicate, collaborate, and coordinate with each other B) create, store, analyze, and manage spatial data C) emulate or enhance human capabilities D) support the coordination of suppliers, product or service production, and distribution E) produce detailed information to help manage a part of the firm Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 70) Which of the following can be cited as an example of a supply chain management system? A) procurement planning B) market analysis C) knowledge portal D) sales force automation E) product demand forecasting system Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

71) Identify the purpose of an office automation system. A) to create, store, analyze, and manage spatial data B) to provide access to databases in order to support quantitative decision making C) to support a wide range of predefined day-to-day activities of individuals and small groups D) to support interaction between the firm and its customers E) to enable customers to buy goods and services from a firm's Web site Answer: C AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 72) With respect to the types of information systems used in organizations, a grocery store checkout cash register with a connection to a network is an example of a(n) ________. A) intelligent system B) functional area information system C) decision support system D) transaction processing system E) electronic commerce system Answer: D AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 73) Microsoft's Exchange/Outlook and Lotus Notes provide people with e-mail, automated calendaring, and online, threaded discussions, enabling close contact with others, regardless of their location. Identify this type of information system. A) collaboration system B) office automation system C) data mining and visualization system D) functional area information system E) geographic information system Answer: A AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

74) With respect to the types of information systems used in organizations, Amazon.com is an example of a(n) ________ system. A) electronic commerce B) geographic information C) virtualization and data mining D) supply chain management E) office automation Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 75) With respect to the types of information systems used in organizations, a word processor is an example of a(n) ________ system. A) electronic commerce B) supply chain management C) office automation D) geographic information E) data mining and virtualization Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 76) With respect to the types of information systems used in organizations, an automated system for analyzing bank loan applications is an example of a(n) ________ system. A) geographic information B) electronic commerce C) social software D) visualization E) intelligent Answer: E AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

77) With respect to types of information systems used in organizations, an inventory management and planning system is an example of a(n) ________ system. A) geographic planning B) management information C) electronic commerce D) virtualization E) social software Answer: B AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 78) With respect to the types of information systems used in organizations, an Online Analytical Processing (OLAP) system is an example of a(n) ________ system. A) business intelligence B) geographic information C) electronic commerce D) office automation E) social software and collaboration Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 79) With respect to the types of information systems used in organizations, a product demand forecasting system is an example of a(n) ________ system. A) visualization B) geographic information C) decision support D) social software E) electronic commerce Answer: C AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept

80) With respect to the types of information systems used in organizations, sales force automation is an example of a(n) ________ system. A) customer relationship management B) electronic commerce C) geographic information D) supply chain management E) data mining and visualization Answer: A AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 81) With respect to the types of information systems used in organizations, financial, operations, and human resource management is an example of a(n) ________ system. A) social software B) data mining and visualization C) geographic information D) enterprise resource planning E) electronic commerce Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 82) Both Sony's PlayStation Network and FedEx's systems were developed and are continuously updated to help the companies ________. Choose the option that best fits. A) maximize their profit B) ensure the systems operate at peak performance C) gain a competitive advantage over their competitors D) be sure their systems are not ubiquitous E) maintain efficiency Answer: C AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 1.3: Describe the dual nature of information systems in the success and failure of modern organizations. Classification: Concept

83) Select the statement below that best describes computer ethics. A) It is used to describe moral issues and standards of conduct as they pertain to the use of information systems. B) It is used to describe moral issues and standards of conduct as they pertain to the use of networks. C) It is used to describe moral issues and standards of conduct as they pertain to the users of networks. D) It is used to describe the moral issues of how users interact with other users. E) It is used to describe how issues are resolved between knowledge workers. Answer: A AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 84) Mike is at Jim's house and admires his digital music collection. He then downloads the entire collection for his own personal use. A) It is legal for Mike because he has Jim's agreement. B) Mike must pay Jim for the right to download the music. C) Mike can download the music if the value is less than $100. D) Mike commits a misdemeanor. E) Mike commits an ethical intellectual property violation. Answer: E AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Application 85) Which of the following is used to describe the issues and standards of conduct as they pertain to the use of information systems? A) virtual ethics B) social informatics C) cyber security D) cloud computing E) computer ethics Answer: E AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

86) ________ is concerned with what information an individual should have to reveal to others in the workplace or through other transactions, such as online shopping. A) Information accessibility B) Information accuracy C) Information privacy D) Information asymmetry E) Information piracy Answer: C AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 87) Information about one's identity and place of living is an example of ________. A) behavioral data B) geographic data C) psychographic data D) demographic data E) attitudinal data Answer: D AACSB: Information technology Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 88) Which of the following statements is true about the companies operating in the online world and a customer's online privacy? A) The vendor cannot track the web pages a customer looks at. B) The vendor cannot track what products a customer examines in detail. C) The vendor is not capable of knowing the method of payment a customer chooses to use. D) The vendor is not required by law to respect a customer's privacy. E) The vendor cannot know where a customer is having the product delivered. Answer: D AACSB: Information technology; Ethical understanding and reasoning Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

89) The ________ Act of 1986 made it much more difficult for anyone, including the government, to eavesdrop on phone conversations. A) Electronic Communication Modernization B) Internet Privacy C) Sarbanes-Oxley D) Gramm-Leach-Bliley E) Electronic Communications Privacy Answer: E AACSB: Information technology; Ethical understanding and reasoning Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 90) WorldTravel (www.worldtravel.com) is a travel Web site that provides detailed information about the different places that tourists can visit across the globe. Additionally, it also helps visitors to book tickets and hotels in these destinations. Which of the following, if true, would most assure the customers of their online privacy? A) When collecting personal information, WorldTravel explicitly states the purpose of the information and that it will not be used for anything else. B) WorldTravel informs its members that it is following the best practices in the industry. C) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected will be protected by a third party who specializes in this domain. D) WorldTravel decides not to send any spam mails to any of its members. E) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected is protected under the Electronic Communications Privacy Act. Answer: A AACSB: Reflective thinking Difficulty: Difficult Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Application 91) Which of the following steps should be taken by a person to ensure his or her privacy online? A) Avoid Web sites that are monitored by independent organizations. B) Visit Web sites anonymously. C) Adjust his or her Web browser settings to save cookies. D) Ensure he or she receives a confirmation e-mail whenever he or she buys products online. E) Maintain only one e-mail account and use it when making online purchases. Answer: B AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

92) Discuss Peter Drucker's predictions about knowledge workers and the knowledge society. Answer: In 1959, Peter Drucker predicted the rise in the importance of information and of information technology (IT) and coined the term knowledge worker. Knowledge workers are professionals who are relatively well educated and who create, modify, and/or synthesize knowledge as a fundamental part of their jobs. Drucker's predictions about knowledge workers were very accurate. As he predicted, they are generally paid better than their prior agricultural and industrial counterparts; they rely on and are empowered by formal education, yet they often also possess valuable real-world skills; they are continually learning how to do their jobs better; they have much better career opportunities and far more bargaining power than workers ever had before; they make up about a quarter of the workforce in the United States and in other developed nations; and their numbers are rising quickly. Drucker also predicted that, with the growth in the number of knowledge workers and with their rise in importance and leadership, a knowledge society would emerge. He reasoned that, given the importance of education and learning to knowledge workers and the firms that need them, education would become the cornerstone of the knowledge society. Possessing knowledge, he argued, would be as important as possessing land, labor, or capital. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept

93) Discuss the five IT Megatrends that shape the Digital Future. Answer: The five IT Megatrends that shape the Digital Future are: A) Mobile. One of the biggest trends we're seeing today is the move toward mobile devices. In most developed countries, most adults have a mobile phone, and typically, people have their mobile phones within their reach 24/7. Compare that with the access to your laptop or PC. In the developing world, mobile devices are frequently seen leapfrogging traditional PCs; owing to the lack of stable, reliable power or landline telephone infrastructure, mobile devices are often the primary means of accessing the Internet. For organizations, this increase in mobility has a wide range of implications, from increased collaboration to the ability to manage a business in real time–at any time, from anywhere–to changes in the way new (or existing) customers can be reached. Users are increasingly using mobile devices as part of their work-related activities using the "bring your own device" (BYOD) policy. B) Social Media. A second megatrend is social media. The rise of social media is largely based on the network effect–referring to the notion that the value of a network (or tool or application based on a network) increases with the number of other users. In other words, if a network has few users, it has little or no value. You may be one of the more than 1.6 billion (and growing) Facebook users who share status updates or pictures with friends and family, or you may use apps such as Snapchat, Twitter, or WhatsApp to communicate with your friends. Today, the use of social media has gone way beyond friends and families. University professors use social networks to provide students with updates about course-related topics, and organizations use social media to encourage employee collaboration or to connect with their customers. In addition, companies can harness the power of the crowd by using social media to get people to participate in innovation and other activities. C) The Internet of Things. A third megatrend is the Internet of Things (IoT)–a network of a broad range of physical objects that can automatically share data over the Internet. Such objects (or "things") can range from an automobile tire equipped with a pressure sensor to a smart meter enabling remote monitoring of energy consumption to a cow with an injectable ID chip. Already in 2008, more devices were connected to the Internet than there were people living on earth. Fueled by advances in chips and wireless radios and decreasing costs of sensors (devices that can detect and respond to changes in the physical environment), in the not-too-distant future everything that can generate useful information will be equipped with sensors and wireless radios. In other words, anything that can generate data or uses data can be connected, accessed, or controlled via the Internet (sometimes referred to as "pervasive computing"). With the ability to connect "things" such as sensors, meters, signals, motors, actuators, or cameras, the potential for gathering useful data is almost limitless. D) Cloud Computing. The fourth megatrend is cloud computing. Whereas traditionally each user would install a number of different applications for various tasks–from creating documents to listening to music–as well as store documents, pictures, and other data on his or her computer, web technologies enable using the Internet as the platform for applications and data. Now, much of the functionality previously offered by applications installed on each individual computer is offered by applications "in the cloud," accessed via a web browser. Increasingly, not only the applications, but also the data, reside in the cloud to be accessed at anytime from anywhere.

E) Big Data. Together, these transformations of our social and work interactions enabled by 24/7 connectivity have given rise to a fifth trend, Big Data. Big Data are typically described as extremely large and complex datasets, which are characterized as being of high volume, variety, and velocity (i.e., the data are being collected and analyzed at ever-increasing rates). Following the old adage that information is power, organizations are continuously seeking to get the right information to make the best business decisions. Yet organizations are generating and collecting ever more data from internal and external sources. The rise of social media has further increased the amount of unstructured data available to organizations. AACSB: Analytic skills Difficulty: Moderate Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal issues of the digital world, and IT megatrends shaping the digital future. Classification: Concept 94) Define data—the most basic element of an information system. Give an example. Answer: Unformatted data, or simply data, are raw symbols, such as words and numbers. Data have no meaning in and of itself, and are of little value until processed. For example, if a person was asked what 465889727 meant or stood for, he or she would be unable to say. However, if the same data was presented as 465-88-9727 and the person was told it was located in a certain database, in John Doe's record, in a field labeled "SSN," he or she might rightly surmise that the number was actually the Social Security number of someone named John Doe. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 95) Briefly describe transaction processing systems. Answer: Transaction processing systems (TPS) are used by a broad range of organizations to not only more efficiently process customer transactions, but also generate a tremendous amount of data that can be used by the organization to learn about customers or ever-changing product trends. Your local grocery store uses a TPS at the checkout that scans bar codes on products; as this occurs, many stores will print discount coupons on the backs of receipts for products related to current purchases. Every hour, online retailer Amazon.com's Web site processes thousands of transactions from around the world. This massive amount of data is fed into large data warehouses and is then analyzed to provide purchase recommendations to future customers. In addition, TPS data are sorted and organized to support a broad range of managerial decision making using a variety of systems; the most common of these is generally referred to as a management information system. TPS data also provide input into a variety of information systems within organizations, including decision support systems, intelligent systems, data mining and visualization systems, knowledge management systems, social software, geographic information systems, and functional area information systems. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 31

96) Describe the technical, business, and systems competencies that IS personnel should possess. Answer: The technical competency area includes knowledge and skills in hardware, software, networking, and security. In a sense, this is the "nuts and bolts" of information systems. This is not to say that the IS professional must be a high-level technical expert in these areas. On the contrary, the IS professional must know just enough about these areas to understand how they work and how they can and should be applied. Typically, the IS professional manages or directs those who have deeper, more detailed technical knowledge. The technical area of competency is the most difficult to maintain because of the rapid pace of technological innovation in the digital world. The business competency area is one that sets the IS professional apart from others who have only technical knowledge and skills. It is absolutely vital for IS professionals to understand the technical areas and the nature of the business as well. IS professionals must also be able to understand and manage people and projects, not just the technology. These business skills propel IS professionals into project management and, ultimately, high-paying middle- and upper-level management positions. Systems competency is another area that sets the IS professional apart from others with only technical knowledge and skills. Those who understand how to build and integrate systems and how to solve problems will ultimately manage large, complex systems projects as well as manage those in the firm who have only technical knowledge and skills. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology, people, and organizational components. Classification: Concept 97) Discuss the guidelines given by the Computer Ethics Institute regarding ethical use of computers. Answer: The guidelines prohibit the following: -Using a computer to harm others -Interfering with other people's computer work -Snooping in other people's files -Using a computer to steal -Using a computer to bear false witness -Copying or using proprietary software without paying for it -Using other people's computer resources without authorization or compensation -Appropriating other people's intellectual output In addition, the guidelines recommend the following: -Thinking about social consequences of programs you write and systems you design -Using a computer in ways that show consideration and respect for others AACSB: Reflective thinking Difficulty: Easy Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

98) Discuss the Electronic Communications Privacy Act and its implications for e-mail privacy. Answer: In 1986, Congress passed the Electronic Communications Privacy Act (ECPA), which offered far stronger support for voice mail than it did for e-mail communications. This act made it much more difficult for anyone (including the government) to eavesdrop on phone conversations. E-mail privacy is, therefore, much harder to protect. In addition, no other laws at the federal or state levels protect e-mail privacy. The ECPA and the court case judgments thus far on e-mail monitoring suggest that companies must be prudent and open about their monitoring of e-mail messages and Internet usage. Companies should use good judgment in monitoring e-mail and should make public their policy about monitoring messages. One primary reason that employees perceive their e-mail to be private is the fact that they are never told otherwise. In addition, employees should use e-mail only as appropriate, based on their company's policy and their own ethical standards. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 99) With respect to online privacy, list the widely accepted fair information practice principles outlined by the U.S. Federal Trade Commission which must be followed by businesses operating online. Answer: When surveyed about concerns related to Internet use, most consumers list issues of information privacy as a top concern. As a result, governments have pressured businesses to post their privacy policies on their Web sites. As outlined in the U.S. Federal Trade Commission "Fair Information Practice Principles" widely accepted fair information practices include: 1. Notice/Awareness – Providing information about what data are gathered, what the data are used for, who will have access to the data, whether provision of the data is required or voluntary, and how confidentiality will be ensured. Such information is typically contained in data privacy statements on a Web site. 2. Choice/Consent – Providing options about what will be done with the data (e.g., subscription to mailing lists after a purchase). Typically, consumers are given a choice to opt-in (i.e., signal agreement to the collection/further use of the data, e.g., by checking a box) or opt-out (i.e., signal that data cannot be collected/used in other ways). 3. Access/Participation – Providing customers with means to access data collected about them, check for accuracy, and request correction of inaccuracies. 4. Integrity/Security – Ensuring integrity of the data (e.g., by using only reputable sources of data), as well as implementing safeguards against unauthorized access, disclosure, or destruction of data. 5. Enforcement/Redress – Providing means to enforce these practices, and/or for customers to receive remedies, for example, through self-regulation or appropriate laws and regulations. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept

100) What is the digital divide? Identify its challenges. Answer: The gap between those individuals in our societies who are computer literate and have access to information resources like the Internet and those who do not is referred to as the digital divide. The digital divide is one of the major ethical challenges facing society today when you consider the strong linkage between computer literacy and a person's ability to compete in the information age. The digital divide in America is rapidly shrinking, but there are still major challenges to overcome. In particular, people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages for Internet access and computer literacy. Outside the United States, the gap gets even wider and the obstacles get much more difficult to overcome, particularly in the developing countries where infrastructure and financial resources are lacking. For example, most developing countries are lacking modern informational resources such as affordable Internet access or efficient electronic payment methods like credit cards. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.4: Describe how computer ethics affect the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 101) Discuss a few steps taken to maintain one's privacy when shopping online. Answer: To make sure one's online shopping experience is a good one, a customer can take a few additional steps to maintain their privacy: 1. Choose Web Sites That Are Monitored by Independent Organizations – Several independent organizations monitor the privacy and business practices of Web sites (e.g., www.truste.com). 2. Avoid Having "Cookies" Left on the Machine – Many commercial Web sites leave cookies on the user's machine so that the owner of the site can monitor where the user goes and what he does on the site. To enhance one's privacy, a user should carefully manage his browser's cookie settings or get special "cookie management" software. 3. Visit Sites Anonymously – There are ways to visit Web sites anonymously. Using services provided by companies such as Anonymizer (www.anonymizer.com), one has a high degree of privacy from marketers, identity thieves, or even coworkers when surfing the Web. 4. Use Caution When Requesting Confirmation E-Mail – When one buys products online, many companies will send them a confirming e-mail message to let them know that the order was received correctly. A good strategy is to have a separate e-mail account, such as one that is available for viewing via a Web browser that one uses when making online purchases. 5. Beware What You Post or Say Online – As an old adage goes, "the Internet never forgets"; anything from status updates to Twitter messages to blog posts can be stored forever, and most information remains somewhere on the Web, even after the original page has long been taken down. It is safe to say that probably almost everybody engages in some regrettable activities at some point in time. Yet, having such activities appear on the Web can be devastating for one's career. AACSB: Information technology Difficulty: Moderate Learning Objective: 1.5: Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. Classification: Concept 34

Information Systems Today, 9e (Valacich) Chapter 2 Gaining Competitive Advantage Through Information Systems 1) Someone with an automating perspective thinks of technology as a way to help complete a task. Answer: TRUE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 2) Unstructured decisions can be programmed directly into operational information systems so that they can be made with little or no human intervention. Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 3) At the executive level, information systems are typically used to optimize processes and to better understand the underlying causes of any performance problems. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 4) Tactical-level decision making is more structured and routine than operational-level decision making. Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 5) Managerial-level decision making is referred to as semistructured decision making. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 1

6) Executive-level decisions are referred to as unstructured decisions. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 7) With respect to the organizational decision making levels, top-level managers typically focus on problems within a specific business function, such as marketing or finance. Answer: FALSE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 8) For unstructured organizational decisions, few, or no procedures to follow for a given situation can be specified in advance. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 9) Most organizations have three general decision-making levels: operational, managerial, and executive. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 10) Operational, managerial, and executive decision-making levels are all supported by a single type of information system. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept

11) In an organizational setup, a functional area represents a discrete area of an organization that focuses on a specific set of activities. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 12) Organizational learning is the ability of an organization to use past behavior and information to improve its business processes. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 13) Organizational strategy is a firm's plan to accomplish its mission and goals as well as to gain or sustain competitive advantage over rivals. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 14) In an organization, managers use value chain analysis to identify opportunities where information systems can be used to develop a competitive advantage. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 15) The set of activities that add value throughout the organization is known as the value chain within an organization. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept

16) The use of information systems has become one of the primary ways that organizations improve their value chains. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 17) Choosing and implementing an emerging information system is not sufficient to gain or sustain competitive advantage. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 18) Functional area information systems are designed to support decision making. Answer: FALSE AACSB: Reflective thinking Difficulty: Easy Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 19) Choosing and implementing new or innovative information systems is sufficient to gain or sustain competitive advantage. Answer: FALSE AACSB: Analytic skills Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 20) To achieve superior returns, a company needs to position itself within the geographic area it operates in to be able to counter the effects of the five forces and gain a competitive advantage. Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept

21) Managers look at information systems as a asset to be nurtured and invested in. Answer: TRUE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 22) A business model reflects what a company does. Answer: TRUE AACSB: Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 23) Key employees is a component of a Business Model. Answer: FALSE AACSB: Information technology Difficulty: Moderate Learning Objective: 2.1: Discuss how information systems can be used for automation, organizational learning, and strategic advantage. Classification: Concept 24) Many business models functioned like pipes, where products were pulled by customers. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world. Classification: Concept 25) A sharing economy is sometimes referred to as a collaborative economy. Answer: TRUE AACSB: Analytical thinking Difficulty: Easy Learning Objective: 2.2: Describe how information systems support business models used by companies operating in the digital world. Classification: Concept

26) Sir John Maddox, a physicist, was quoted in Scientific American in 1999 saying, "The most important discoveries of the next 50 years are likely to be ones of which we cannot now even conceive." Answer: TRUE AACSB: Analytic skills Difficulty: Difficult Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage. Classification: Concept 27) Innovation is key for organizations to gain or sustain a competitive advantage through cost or differentiation. Answer: TRUE AACSB: Analytical thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage. Classification: Concept 28) According to the text most innovations are enabled by or would not even be possible without, a business model. Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage. Classification: Concept 29) One of the ten types of innovation is customer engagement. Answer: TRUE AACSB: Concept Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage. Classification: Concept 30) Organizations increasingly realize that potential for innovation often exists inside of their own boundaries and look for employee creativity. Answer: FALSE AACSB: Reflective thinking Difficulty: Moderate Learning Objective: 2.3: Explain why and how companies are continually looking for innovative ways to use information systems for competitive advantage. Classification: Concept