TEST BANK for Using MIS, 11e (Global Edition) David Kroenke, Randall Boyle. Answers At The End Of Ea by digitaldownload87

Using MIS, 11e (Global Edition) David Kroenke, Randall Boyle (Test Bank All Chapters, 100% Original Verified, A+ Grade) Using MIS, 11e (Kroenke) Chapter 1 The Importance of MIS 1) ________ states that the number of transistors per square inch on an integrated chip doubles every 18 months. A) Nielsen's Law B) Faraday's Law C) Moore's Law D) Newton's Law E) Metcalfe's Law Answer: C Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 2) According to Moore's Law, the ________. A) price of an integrated chip reduces once in 18 months B) performance of each transistor on a square inch of an integrated chip doubles every year C) number of transistors per square inch on an integrated chip doubles every 18 months D) density of a transistor decreases every year E) rate of innovation increases exponentially Answer: C Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 3) ________ states that network connection speeds for high-end users will increase by 50 percent per year. A) Nielsen's Law B) Kryder's Law C) Moore's Law D) Bell's Law E) Metcalfe's Law Answer: A Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept

4) Which of the following ratios has fallen as a result of Moore's Law? A) price/performance B) demand/supply C) profit/loss D) debt/equity E) price/earnings Answer: A Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 5) In 1972, computer scientist ________ recognized that digital devices would change the world as they evolved and became widely used. A) Gordon Bell B) Robert Metcalfe C) Gordon Moore D) Jakob Nielsen E) Sam Flynn Answer: A Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 6) ________ states that the value of a network is equal to the square of the number of users connected to it. A) Moore's Law B) Metcalfe's Law C) Bell's Law D) Nielsen's Law E) Flynn's Law Answer: B Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept

7) Google's Project Loon is a major effort to ________. A) decrease the size of storage devices, while increasing their capacity B) facilitate the use of Internet on submarines, while they are submerged C) promote the use of virtual machines, that operate on voice command D) bring Internet access to everyone using a network of inflated balloons E) reduce the rate of decay in magnetic disks Answer: D Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 8) According to Bell's Law, ________ will evolve so quickly they will enable new platforms every 10 years. A) systems thinking B) human interactions C) digital devices D) television E) technology companies Answer: C Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 9) Because of Moore's Law, the ________ of data processing is approaching zero. A) cost B) power C) speed D) use E) applications Answer: A Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept

10) A primary metric for social media companies is ________. A) revenue B) the number of monthly active users C) the number of ads shown to users D) the total number of users E) how much it costs the company to maintain social media connections Answer: B Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 11) ________ states the storage density on magnetic disks is increasing at an exponential rate. A) Nielsen's Law B) Faraday's Law C) Moore's Law D) Kryder's Law E) Metcalfe's Law Answer: D Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 12) Despite the rapid growth of technology, digital devices fail to impact the industry. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 13) Gordon Moore was the inventor of Ethernet. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept

14) The Information Age is a period in history where the production, distribution, and control of information is the primary driver of the economy. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 15) Bell's Law states that a new computer class forms roughly each decade establishing a new industry. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 16) The Digital Revolution was the conversion from mechanical and analog devices to digital devices. Answer: TRUE Diff: 2 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 17) Kryder's Law states that the storage density on magnetic disks is increasing at an exponential rate. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 18) The hottest jobs are found in marketing companies. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept

19) Discuss the Digital Revolution. Answer: The Digital Revolution was the conversion from mechanical and analog devices to digital devices. This shift to digital devices meant monumental changes for companies, individuals, and the society as a whole. The problem was, people couldn't really understand how, or even why, this shift was going to affect them. Much like people today, they based their future projections on past events. They knew factories, bureaucracies, mass production, and operational efficiency. But this knowledge didn't prepare them for the changes that were coming. The Digital Revolution didn't just mean that new "digital" equipment was replacing old mechanical, or analog, equipment. These new digital devices could now be connected to other digital devices and share data among themselves. They could also work faster as processor speed increased. Diff: 2 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 20) State Nielsen's Law. What is the implication of Nielsen's Law for managers? Answer: According to Nielsen's Law, "network connection speeds for high-end users will increase by 50 percent per year." Because of this law, the types of services and applications that can be provided over networks (i.e. the Internet) have changed radically. Therefore, it is important for managers to realize that, because of Nielsen's Law, networks will become faster, new companies, new products, and new platforms will emerge. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.1: Why is introduction to MIS the most important class in the business school? Classification: Concept 21) ________ are most likely to be outsourced to the lowest bidder. A) Ability to experiment B) Routine skills C) Ability to collaborate D) Abstract reasoning skill E) Systems thinking Answer: B Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept

22) Which of the following is categorized as a nonroutine cognitive skill? A) symbolic thinking B) marketing knowledge C) tax accounting D) systems thinking E) data entry Answer: D Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 23) Dallas is an analyst at an online retailer. He is great at creating representative diagrams showing the relationships between customer purchases, billing, and shipment. This indicates that he has ________ skills. A) abstract reasoning B) collaborative C) experimental D) systems thinking E) spatial intelligence Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Application 24) Abstract reasoning is the ability to ________. A) develop ideas and plans with others when performing tasks B) make and manipulate models C) act quickly on a problem D) provide and receive critical feedback E) identify the crux of an argument Answer: B Diff: 1 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept

25) ________ is the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed. A) Abstract reasoning B) Systems thinking C) Collaboration D) Experimentation E) Function modeling Answer: B Diff: 1 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 26) A manager will essentially require ________ skills to test ideas clearly on a small scale, before taking bigger risks or committing significant resources to a larger project. A) collaboration B) experimentation C) interpersonal D) systems thinking E) social Answer: B Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 27) Lindsay is an analyst at a large power company. She creates a custom spreadsheet showing how cold weather might affect the company's profitability. This shows her ________ skills. A) abstract reasoning B) experimentation C) systems thinking D) problem-solving E) risk ordering Answer: C Diff: 2 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Application

28) After making minor changes to a team report, Jeff felt like he had done enough work on the project. When he was asked to contribute more, he got offended and quit responding to requests from some team members. Jeff's inability to receive critical feedback indicates a lack of ________ skills. A) systems thinking B) collaboration C) abstract reasoning D) experimentation E) ideation Answer: B Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Application 29) ________ is the activity of two or more people working together to achieve a common goal, result, or work product. A) Systems thinking B) Abstract reasoning C) Collaboration D) Experimentation E) Competition Answer: C Diff: 1 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 30) Cami is the marketing manager for a regional furniture maker. She closely monitors the impact of each marketing campaign on overall sales. She routinely tries novel promotional offers to reach first-time customers. Which of the following skills does Cami exhibit? A) systems thinking B) experimentation C) abstract reasoning D) collaboration E) troubleshooting Answer: B Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Application

31) ________ is defined as making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources one has. A) Troubleshooting B) Abstract reasoning C) Problem-solving D) Experimentation E) Cognition Answer: D Diff: 1 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 32) Which of the following is an example of systems thinking? A) Working with colleagues in other countries. B) Testing a new product before presenting it to management. C) Looking at a can of beans in the grocery store and connecting it to U.S. immigration. D) Creating a model of how customers are created. E) Providing and receiving critical feedback. Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 33) ________ is the single most important skill for effective collaboration. A) Being nice B) Experimentation C) Being able to connect the inputs with the outputs D) Giving and receiving feedback E) Fearlessness Answer: D Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept

34) The mismatch between the high level of tech skills demanded by employers and the low level of tech skills held by employees is called ________. A) the technology skills gap B) the digital divide C) under demand training D) systems thinking E) social re-engineering. Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 35) Bryce, a floor manager at an industrial plant, works well with all of his line employees. Bryce's ability to collaborate is a routine skill. Answer: FALSE Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Application 36) A person's strong abstract reasoning skills won't be able to easily construct models. Answer: FALSE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 37) According to The U.S. Bureau of Labor Statistics, the demand for information systems and business jobs are low and future wage growth appears stagnant. Answer: FALSE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept

38) What job prospects are available for professionals who know how to use information systems (ISs)? Answer: Information systems and computer technology provide job and wage benefits beyond just IS professionals. As the price of computer technology plummets, the value of jobs that benefit from it increases dramatically. For example, plentiful, high-paying jobs are available to business professionals who know how to use information systems to improve business process quality, or those who know how to interpret data mining results for improved marketing, or those who know how to use emerging technology like 3D printing to create new products and address new markets. Diff: 3 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 39) Explain the four nonroutine cognitive skills that are key to a successful career today. Answer: The four nonroutine cognitive skills identified as critical for organizations in the current scenario are as follows: (1) Abstract reasoning–the ability to make and manipulate models. (2) Systems thinking–the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed. (3) Collaboration–the activity of two or more people working together to achieve a common goal, result, or work product. (4) Ability to experiment–making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources you have. Diff: 3 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept 40) Why does the author feel this course is the most important course in the business school? Answer: 1. It will give you the background you need to assess, evaluate, and apply emerging information systems technology to business. 2. It can give you the ultimate in job security–marketable skills–by helping you learn abstraction, systems thinking, collaboration, and experimentation. 3. Many well-paid MIS-related jobs are in high demand. Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.2: How will MIS affect me? Classification: Concept

41) Which of the following is an example of computer hardware? A) a monitor B) a browser C) a spreadsheet D) an operating system E) a variable Answer: A Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 42) The storage disks in a computer are an example of the ________ component of information systems. A) hardware B) software C) intangible D) virtual E) bootable Answer: A Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 43) An operating system like Windows or Linux is an example of the ________ component of an information system. A) software B) hardware C) tangible D) physical E) virtual Answer: A Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application

44) The method used to start a program is part of the ________ component in the fivecomponent framework. A) hardware B) software C) people D) procedures E) data Answer: D Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application 45) Even if you are not a programmer or a database designer, you still should take a(n) ________ in the systems development process. A) interest B) active role C) positive outlook D) your opinion E) matter of fact attitude Answer: B Diff: 2 AACSB: Information Technology; Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application 46) Zach follows the instructions that show him how to create a custom Web site in his school's learning management system. These steps that he follows are examples of the ________ component of an information system. A) procedure B) data C) software D) hardware E) memory Answer: A Diff: 3 AACSB: Information Technology; Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application

47) Noel creates a table listing the number of students in his biology class, their names, age, and phone numbers. His table is an example of the ________ component of an information system. A) program B) data C) information D) hardware E) process Answer: B Diff: 2 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application 48) The ________ component of the five-component framework of an information system includes individuals who maintain the data and support the networks of computers. A) procedural B) people C) data D) networking E) storage Answer: B Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 49) Which of the following statements is TRUE of business users who administer the development of information systems? A) It is mandatory that they hold a degree in database management. B) They should take an active role in the system's development. C) They should refrain from specifying the system's requirements. D) When the system fails, they must refrain from performing tasks related to system recovery. E) They are skilled programmers. Answer: B Diff: 2 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.3: What is MIS? Classification: Concept

50) As a business professional, what is one of the reasons you should be involved in information systems (IS) development? A) Information technology professionals know exactly what the business needs. B) To understand the business requirements. C) Because you are in upper management and must decide all of the information technology requirements. D) You do not have to be involved. E) You have to know what to do in case the system fails. Answer: B Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 51) All of the following are examples of ancillary functions you may be asked to do in your department as a user of information systems (IS) except: ________. A) Create a database B) Protect the security of the system C) Back up data D) Perform tasks while the system is down. E) Employ the system Answer: A Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 52) According to the five-component framework, the five components of an information system are present in every information system. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 53) The five-component framework applies to simple and complex information systems. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept

54) Information systems exist to help people who work in an organization to achieve the strategies of that business. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 1.3: What is MIS? Classification: Concept 55) Social networking has all the components in the Five-component framework. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 56) Information systems are created for the sheer joy of exploring new technologies. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 57) Define the terms system, information system, and management information system. Answer: A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. A management information system is defined as a system that helps organizations achieve their strategies. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept

58) List and briefly explain the five-component model of an information system with examples. Answer: The five components described in the model are: computer hardware, software, data, procedures, and people. These five components are present in every information system, from the simplest to the most complex. For example, when one uses a computer to write a class report, he/she is using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in the report), procedures (the methods used to start the program, enter the report, print it, and save and back up the file), and people (the user). Diff: 3 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Concept 59) List the three key elements of management information systems. Answer: Management and use, information systems, and strategies. Diff: 3 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.3: What is MIS? Classification: Concept 60) What is the difference between information systems (IS) and information technology (IT)? Answer: An information system (IS) is an assembly of hardware, software, data, procedures, and people that produces information. In contrast, information technology (IT) refers to the products, methods, inventions, and standards used for the purpose of producing information. Diff: 2 AACSB: Information Technology; Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.3: What is MIS? Classification: Application 61) According to the five-component model of information systems, the ________ component provides instructions for the people who use information systems. A) software B) data C) hardware D) procedure E) storage Answer: D Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept

62) In the five-component model, the process of automation is a process of moving work from ________. A) processes to procedures B) procedures to people C) the digital mode to the analog mode D) the human side to the computer side E) processing to storage Answer: D Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 63) In the five-component model of information systems, which of the following components is considered an actor? A) software B) hardware C) data D) procedure E) information Answer: B Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 64) The hardware components of an information system will act as a(n) ________. A) bridge between the computer side and the human side B) actor on the human side C) instruction on the computer side D) actor on the computer side E) functional anchor on the human side Answer: D Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept

65) BigBank uses a custom customer management system to manage all of its interactions with retail clients. This system is an ________ of the company's information system. A) instruction on the computer side B) actor on the human side C) instruction on the human side D) actor on the computer side E) instruction for the hardware Answer: A Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Application 66) The ________ component in the five-component model of information systems is considered a bridge that connects the computer side and the human side. A) software B) procedure C) data D) hardware E) virtual Answer: C Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 67) Which of the following pairs of components constitutes the computer side of information systems? A) software and data B) data and hardware C) people and procedures D) hardware and software E) data and memory Answer: D Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept

68) Which of the following pairs of components constitutes the human side of information systems? A) software and procedures B) software and people C) people and procedures D) hardware and people E) instructions and code Answer: C Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 69) Which of the following is an example of a low-tech information system? A) an inventory tracking system that stores millions of records and produces reports every 24 hours B) a file of email addresses stored in an email program C) a customer support system that keeps track of product issues D) a decision support system that analyzes multiple variables E) an enterprise data loss prevention system that monitors the flow of data over a network Answer: B Diff: 2 AACSB: Information Technology; Analytical Thinking Course LO: Discuss the role of information systems in supporting business processes LO: 1.4: How can you use the five-component model? Classification: Concept 70) Which of the following components of an information system is the easiest to change and results in the least amount of organizational disruption? A) hardware B) software C) database D) procedures E) protocols Answer: A Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept

71) Drudgen Fitness Inc. is a fitness equipment provider that markets its products through a chain of retail outlets in four states. As part of its expansion strategy, the company decides to open outlets in four more states and decides to revise its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization? A) collecting demographic data from the new markets B) developing new CRM software for the existing and new outlets C) relocating existing employees and hiring new employees D) buying and installing new computers in the new outlets E) changing the sales, reporting, and compensation procedures Answer: D Diff: 3 AACSB: Information Technology; Reflective Thinking Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Application 72) Which of the following would be the most disruptive to an organization when implementing an information system? A) installing new hardware components B) creating new databases C) developing new programs D) changing reporting relationships E) setting up online data backups Answer: D Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept 73) It is generally more difficult to make changes to the ________ of an information system than to the database itself. A) software B) hardware C) programs D) procedures E) memory Answer: D Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept

74) A large retailer loses millions of customer records in a major data breach. They must develop and implement a new system which includes new hardware, applications, and storage. Which of the following actions will be most difficult to perform when implementing the new information system? A) upgrading the computer systems used by the retail chain B) writing the programs to create the software C) changing the structure of existing databases that reflect supplier and customer data D) training the employees to use and manage the new system E) installing new transaction processing hardware Answer: D Diff: 3 AACSB: Reflective Thinking Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Application 75) You cannot increase your basic IQ, but you can increase the quality of your ________. A) thinking B) procedures C) life D) habits E) IS system Answer: A Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept 76) The five-component framework can be used when assessing the scope of ________. A) new systems B) hiring new people C) life D) habits E) organization disruption Answer: A Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept

77) According to the five-component model of information systems, the data and software components of information systems are capable of performing actions. Answer: FALSE Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 78) In the five-component model of an information system, data is the bridge between the computer and the human sides. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 79) In the five-component model of an information system, hardware and software are part of the human side. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 80) According to the five-component model of an information system, software is the most important component of an information system. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 81) The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system. Answer: FALSE Diff: 2 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.4: How can you use the five-component model? Classification: Concept

82) Obtaining or developing new programs is more difficult than ordering additional hardware. Answer: TRUE Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept 83) Changing personnel responsibilities to suit an information system is more disruptive to an organization than ordering additional hardware for the information system. Answer: TRUE Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept 84) Changing the structure of existing databases causes more organizational disruption than changing working procedures. Answer: FALSE Diff: 2 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept 85) Ordering additional hardware creates the least amount of organizational disruption compared to changes in the four components of an information system. Answer: TRUE Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 86) It is only humans that produce information. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Discuss the key issues involved in managing the components of IT infrastructure LO: 1.4: How can you use the five-component model? Classification: Concept

87) Which is the most important component of an information system? Why? Answer: People are part of every information system that they use. The user's mind and thinking are not merely a component of the information systems they use; they are the most important component. This is so because, even if users have the perfect information system, if they do not know what to do with the data that it produces, they are wasting both their time and money. The quality of users' thinking is what determines the quality of the information that is produced. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 88) Explain how the five components of an information system are arranged in terms of ease of change and organizational disruption. Answer: The five components of the information systems framework are: computer hardware, software, data, procedures, and people. The five components are arranged in order of ease of change and the amount of organizational disruption. It is usually a simple matter to order new hardware and install it. Obtaining or developing new programs is more difficult. Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are both very difficult and very disruptive to an organization. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.4: How can you use the five-component model? Classification: Concept 89) Which of the following is considered as information rather than mere data? A) a list of property prices in a neighborhood B) the return on investment of an advertising campaign C) the total number of students in a school D) the price of a company's shares on a given day E) the weight of a car Answer: B Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept

90) Which of the following is a common description of information? A) collection of unprocessed data B) unbiased, unrelated data C) knowledge derived from data D) list of recorded facts or figures E) an array of related variables Answer: C Diff: 1 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept 91) Which of the following best describes data? A) information presented in a meaningful context B) processed information C) recorded facts or figures D) knowledge derived from facts or figures E) the ability to use knowledge Answer: C Diff: 1 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept 92) Which of the following terms is described as processed data or data presented in a meaningful context? A) questionnaires B) scenarios C) illustrations D) information E) forms Answer: D Diff: 1 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Application

93) ________ skills determine the ability to conceive information from data. A) Cognitive B) Abstract reasoning C) Symbolic thinking D) Experimentation E) Spatial Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept 94) A furniture manufacturer keeps details of its current inventory including weight, quantity, and price. These details can be called ________. A) an analysis B) data C) information D) an assessment E) knowledge Answer: B Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Application 95) Silway Travels organizes tours to a number of cities in Illinois. The manager of the company examines a spreadsheet which is an annual record of airfares to different cities from Chicago. The contents of the spreadsheet will be used to determine the difference in peak season and offseason airfares. The spreadsheet, in this case, represents ________. A) a survey B) data C) information D) an analysis E) a system Answer: B Diff: 3 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Application

96) Data becomes information when it is presented in a meaningful context. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept 97) The statement that the average computer network architect makes $98,430, is information. Answer: TRUE Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Application 98) Because you can determine if a graph is useful information further proves that you are the most important part of the five-component model. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Application 99) Discuss the common definitions of information. Answer: The most common definition of information is that information is knowledge derived from data, whereas data is defined as recorded facts or figures. Another common definition is that information is data presented in a meaningful context. A third definition of information that one often hears is that information is processed data, or sometimes, information is data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. The fundamental idea of this definition is that individuals do something to data to produce information. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept

100) Explain the relation between data and information. Answer: The relation between data and information can be understood with the help of a graph. The graph is data that humans perceive, and from that perception conceive information. In short, if it's on a piece of paper or on a digital screen, it's data. If it's in the mind of a human, it's information. The quality of thinking, or ability to conceive information from data, is determined by one's cognitive skills. The data is just the data; the information conceived from it is the value that one adds to the information system. People have different perceptions and points of view, not surprisingly, then, they will conceive different information from the same data. Diff: 3 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.5: What is information? Classification: Concept 101) Which of the following is a critical characteristic of good information? A) abundance of details B) accuracy C) inexpensive D) ease of creation E) quantity Answer: B Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 102) Sandra is a production manager at a soda manufacturing and bottling plant. One of her duties is to create a monthly inventory report based on the list of material received from the supplier on delivery. Sandra's report for the previous month, however, turned out to be invalid as the supplier provided an erroneous list. In this scenario, her report cannot be considered good information as it was lacking in ________. A) accuracy B) effectiveness C) method D) content E) quantity Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Application

103) Which of the following statements is TRUE of good information? A) Good information should go well beyond the scope of the purpose for which it is generated. B) Information should be relevant to the subject, not necessarily to the context. C) Good information should be based on correct and complete data. D) Good information is only received from sources that provide data for free. E) Good information comes from large data sets. Answer: C Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 104) John Carter, the CEO of Carter Steels, is concerned about the sudden rise in employee attrition in his organization. He asks Walter, the human resources manager, to provide him with the last quarter's report showing the rate of attrition. Walter, however, sends the salary details of the new hires for the last quarter. This report is of no use to Carter as it is ________. A) inaccurate B) not timely C) irrelevant D) miscalculated E) uncleaned Answer: C Diff: 3 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Application 105) The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the list of products sold in the previous quarter. These details do NOT qualify as good information because they are ________. A) too narrow in scope B) too expensive C) not timely D) not relevant E) too large Answer: D Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Application

106) In the context of information systems, which of the following statements is TRUE of data characteristics? A) Data generated should be in excess of what is required. B) An appropriate relationship should exist between the cost of data and its value. C) Data should be relevant to the context, not necessarily to the subject. D) Freely available data is always accurate and timely. E) Larger data sets yield more accurate information. Answer: B Diff: 2 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 107) Will decides to gift his wife a house for their 10th wedding anniversary. He contacts his real estate agent about a specific house that he wants to buy. The realtor assures him that he will contact the owners immediately to find out the asking price. The agent, however, informs Will about the price two months after the anniversary. The information provided by the agent is most likely to be useless because it lacked ________. A) sufficiency B) relevance C) timeliness D) accuracy E) precision Answer: C Diff: 3 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Application 108) Kevin is the manager over the southern part of the country. The administrative assistant provided him a report for the northern part of the country. Kevin thanked his assistant but noted the data was ________ because he only requested the report for his region. A) not accurate B) created too early C) not sufficient D) not relevant E) not worth the cost Answer: D Diff: 1 AACSB: Analytical Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept

109) Which of the following is the least critical aspect of good information? A) data accuracy B) timeliness of data C) additional data D) relevance of data E) sufficiency of data Answer: C Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 110) Caroline asks her secretary to send information on the meetings that she needs to attend next month. Her secretary, Joanne, provides her with the details immediately, but leaves out certain additional details that are irrelevant to Caroline's requirements. Which of the following statements is TRUE about this scenario? A) The information that Joanne provided was partly good, as it was timely but inaccurate. B) Joanne provided adequate and timely information, but the information was of no value to Caroline. C) The information that Joanne gave was accurate and sufficient for Caroline's purpose. D) The information that Caroline obtained through Joanne was not timely or worth its cost. E) The information that Caroline obtained through Joanne was not accurate. Answer: C Diff: 3 AACSB: Reflective Thinking Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Application 111) Robert is a strategic planner for a consulting firm. He receives countless reports for daily analysis, but he avoids being inundated with information by selecting only the few reports that actually serve his purpose. Which principle of data characterization is Robert following? A) Information should be just barely sufficient for its purpose. B) Data that arrives after a prolonged period of time is of the highest quality. C) Information needs to be relevant to the subject, not necessarily to the context. D) Freely available data is always accurate and timely. E) Collecting as much data as possible is always preferable. Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Discuss the role of information systems in supporting business processes LO: 1.6: What are necessary data characteristics? Classification: Application

112) Accuracy is ________ because business professionals must be able to rely on the results of their information systems. A) an analysis B) data C) information D) crucial E) knowledge Answer: D Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 113) The marketing director asks James to bring her the sales data from the last quarter; however, he misunderstood and brought her sales data from 2010. The information is not useful because it is not ________. A) timely B) worth the cost C) necessary D) crucial E) knowledge Answer: A Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 114) As you go higher in management the more data you will be given, but your time will be limited so you will have to ________ some of the data. A) ignore B) sort C) manipulate D) add to E) take to look over Answer: A Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept

115) A good information system is one that provides the users with more information than what is required. Answer: FALSE Diff: 2 AACSB: Information Technology Course LO: Discuss the role of information systems in supporting business processes LO: 1.6: What are necessary data characteristics? Classification: Concept 116) Data is worth its cost when an appropriate relationship exists between the cost of data and its value. Answer: TRUE Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 117) Data is free. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 118) Information systems should be subject to the same financial analyses other assets are subjected. Answer: TRUE Diff: 1 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept

119) What are the five characteristics of good data? Answer: The five characteristics of data are as follows: (1) Accurate–Good information is based on correct and complete data, and it has been processed correctly as expected. (2) Timely–Good data is produced in time for its intended use. (3) Relevant–Good data is relevant both to the context and to the subject. (4) Just barely sufficient–Good data is sufficient for the purpose for which it is generated, but just barely so. (5) Worth its cost–For good data to be worth its cost, there must be an appropriate relationship between the cost of data and its value. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 120) Explain why data accuracy is crucial to the success of an information system. Answer: Good information is conceived from accurate, correct, and complete data that has been processed correctly as expected. The IS function can develop a bad reputation in the organization if a system is known to produce inaccurate data. In such a case, the information system becomes a waste of time and money as users develop work-arounds to avoid the inaccurate data. Diff: 3 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept 121) Explain the concept of "just barely sufficient" data. Answer: Data needs to be sufficient for the purpose for which it is generated, but just barely so. We are inundated with data; one of the critical decisions that each of us has to make each day is what data to ignore. The higher one rises into management, the more data one will be given, and because there is only so much time, the more data one will need to ignore. So, data should be sufficient, but just barely. Diff: 2 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.6: What are necessary data characteristics? Classification: Concept

122) Which of the following statements is TRUE about the changes and developments foreseen by the year 2029? A) Smartphones may fade away. B) Desktop and portable computers will increase in popularity. C) Processing image data would be difficult. D) Mobile devices would have to be charged multiple times a day. E) Mainframes will overtake servers. Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Discuss the role of information systems in supporting business processes LO: 1.7: 2029? Classification: Concept 123) By 2029, your data will be safer and more private. Answer: FALSE Diff: 1 AACSB: Information Technology Course LO: Describe different methods of managing IS security LO: 1.7: 2029? Classification: Concept 124) In the year 2029, you may be able to turn off your smart bulbs by pointing at them. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Discuss the role of information systems in supporting business processes LO: 1.7: 2029? Classification: Concept 125) What are some potential downsides of advances in technology in the future? Answer: By 2029, privacy may be increasingly difficult to maintain. Your data will be collected by new kinds of apps, flowing through the cloud, and be packaged for sale by companies providing "free" services. Social relationships may suffer as well. We may become less connected to people as we become more connected to systems. Diff: 3 AACSB: Information Technology Course LO: Describe the components of an information system (IS) LO: 1.7: 2029? Classification: Concept

Using MIS, 11e (Kroenke) Chapter 2 Strategy and Information Systems 1) Which of the following factors determines the structure, features, and functions of an information system used in a company? A) the competitive strategy B) the value of its brands C) the size of the company D) the number of competitors E) the company's PE ratio Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.1: How does organizational strategy determine information systems structure? Classification: Concept 2) Competitive strategy determines all of the following except ________. A) structure of the information system B) goals and objectives C) features D) functions E) the company's PE ratio Answer: E Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.1: How does organizational strategy determine information systems structure? Classification: Concept 3) An organization's goals and objectives are determined by its competitive strategy. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.1: How does organizational strategy determine information systems structure? Classification: Concept 4) The collective technical capability of an organization determines its competitive strategy. Answer: FALSE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.1: How does organizational strategy determine information systems structure? Classification: Concept

5) Explain the relation between competitive strategies and information systems. Answer: An organization's goals and objectives are determined by its competitive strategy. Thus, ultimately, competitive strategy determines the structure, features, and functions of every information system. In short, organizations examine the structure of their industry and determine a competitive strategy. That strategy determines value chains, which, in turn, determine business processes. The structure of business processes determines the design of supporting information systems. Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.1: How does organizational strategy determine information systems structure? Classification: Concept 6) Porter's five forces model is used to assess ________. A) industry structure B) market share C) internal competition D) life cycles of products E) future product demand Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept 7) According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes? A) a used car dealership in New York B) a convenience store that sells retail products C) a firm that sells the only drug for a disease D) a corner latte shop in Atlanta E) a food vendor at a county fair Answer: C Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Application

8) According to Porter's five forces model, a student's choice of lunch options at a large food court would be an example of a strong force for ________. A) rivalry B) threat of new entrants C) threat of substitutions D) bargaining power of customers E) industry power Answer: C Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept 9) According to Porter's five forces model, in which of the following situations would the supplier have the highest bargaining power? A) a dealer of a patented material for smartphone manufacturers B) a fashion designer catering to a niche market C) a restaurant owner who serves only army veterans D) a retailer who buys finished goods from many small suppliers E) a defense contractor that only makes products for the U.S. Navy Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Application 10) According to Porter's five forces model, in which of the following examples would rivalry be considered as a weak force affecting the market? A) search engine designers B) used car dealers C) holiday tour agents D) packaged food manufacturers E) insurance providers Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Application

11) A mining company develops a new processing technique using only light and patents the process. This situation is characterized by ________. A) low threat of substitutions B) high bargaining power of customers C) high threat of new entrants D) low bargaining power of suppliers E) low threat of new entrants Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Application 12) According to Porter's five forces model, an oil producer will have increased ________ if the supply of oil drops sharply. A) bargaining power B) threat of substitutes C) risk of rivalry D) threat of new entrants E) industry coalescence Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept 13) Bargaining power of customers is likely to be the highest for markets involving ________. A) limited edition apparel B) industrial products C) patented drugs D) vintage cars E) rare paintings Answer: B Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept

14) The automobile industry is characterized by many manufacturers and intense competition among them. According to Porter's five forces model, this statement illustrates ________. A) low threat of substitutions B) high bargaining power of suppliers C) high levels of rivalry D) low bargaining power of customers E) low levels of rivalry Answer: C Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept 15) LNG is a large multinational appliance manufacturer. The company gets raw materials from many vendors. In this case, LNG is characterized by ________. A) very low threat of substitute products B) high bargaining power over its suppliers C) very low threat of new entrants in the market D) very high bargaining power over its customers E) low bargaining power over its suppliers Answer: B Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Application 16) A major drawback of Porter's five forces model is that it ignores the rivalry among firms in the industry. Answer: FALSE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept

17) Briefly explain Porter's five forces model. Answer: Porter's five forces model is used to assess an industry structure. According to this model, five competitive forces determine industry profitability: bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrants, and rivalry among existing firms. The intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be. Diff: 3 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.2: What five forces determine industry structure? Classification: Concept 18) I-scream-4 Ice Cream recently faced competition against their flagship brand of "Orange peel ice cream." A competitor made significant in-roads into the market by offering three varieties of "Orange peel ice cream." I-scream-4 Ice Cream decided to counter this threat by introducing five new varieties of ice creams. Which competitive strategy is I-scream-4 Ice Cream implementing? A) cost leadership B) product differentiation C) cost differentiation D) service focus E) innovation focus Answer: B Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Application 19) An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________. A) focused cost leadership B) industry-wide differentiation C) industry-wide cost leadership D) focused differentiation E) broad differentiation Answer: B Diff: 2 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Application

20) According to Porter, all of the following must be consistent with the organization's strategy except ________. A) the budget B) the culture C) the activities D) the goals E) the objectives Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept 21) Focused cost leadership is observed when a product has the lowest cost ________. A) within an industry segment B) across the product mix offered by a company C) across the entire industry D) among a group of competitors E) across multiple product categories Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept 22) According to Porter, to be effective all of the following must be consistent with the organization's strategy except ________. A) goals B) objectives C) culture D) activities E) budget Answer: E Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept

23) An organization responds to the structure of its industry by choosing a competitive strategy. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept 24) An automobile manufacturer focusing on low-end buyers is following an industry-wide differentiation strategy. Answer: TRUE Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Application 25) According to Porters five forces model, companies compete in one of five strategies. Answer: FALSE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept 26) According to Porter's four competitive strategy model, what are the four competitive strategies from which firms can choose? Answer: An organization responds to the structure of its industry by choosing a competitive strategy. According to Porter's competitive strategy model, firms engage in one of these four strategies. An organization can focus on being the cost leader, or it can focus on differentiating its products or services from those of the competition. Further, the organization can employ the cost or differentiation strategy across an industry or it can focus its strategy on a particular industry segment. Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.3: How does analysis of industry structure determine competitive strategy? Classification: Concept

27) The difference between the value that an activity generates and the cost of the activity is called the ________. A) margin B) turnover C) revenue D) profit E) quick ratio Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 28) Porter defined value as the ________. A) amount of money that a customer is willing to pay for an offering B) extent of after-sale service provided to customers C) perceived satisfaction of the customers and sellers after a transaction D) actual money exchanged in return of a product/service E) perceived quality differences across products Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 29) Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product. A) inbound logistics B) procurement C) manufacturing D) outbound logistics E) optimized ordering Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept

30) The difference between the total value added and the total costs incurred is called the ________ of the value chain. A) actual value B) total margin C) total revenue D) gross turnover E) taxable income Answer: B Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 31) A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________. A) outbound logistics B) inbound logistics C) operational management D) internal marketing E) customer service Answer: B Diff: 2 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Application 32) Which of the following statements best describes the role of operations in a value chain? A) transforming inputs into the final products B) collecting, storing, and distributing products to buyers C) inducing buyers to purchase products and providing a means for them to do so D) receiving, storing, and disseminating inputs to products E) assisting customers' use of products Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept

33) Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers? A) inbound logistics B) operations C) customer service D) outbound logistics E) sales and marketing Answer: D Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 34) Which of the following value chain activities involves inducing buyers to purchase a product and providing a means for them to do so? A) inbound logistics B) operations C) sales and marketing D) outbound logistics E) customer service Answer: C Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 35) Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value? A) inbound logistics B) customer service C) operations D) outbound logistics E) sales and marketing Answer: B Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept

36) Which of the following is a primary activity in the value chain? A) receiving and handling of raw materials and other inputs B) negotiating prices with vendors C) finding suitable vendors to supply raw materials D) setting up contractual arrangements with various suppliers E) investigating new designs Answer: A Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 37) Kai runs a local auto parts store. A customer comes in and asks for special supercharger. Kai orders it from the factory. This activity can be classified under ________. A) inbound logistics B) operations C) customer service D) marketing E) outbound logistics Answer: A Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Application 38) Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each executive of the delivery team, and also contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing? A) inbound logistics B) marketing C) sales D) outbound logistics E) customer service Answer: D Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Application

39) Madison, the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming months. He advises the procurement department to order raw material accordingly to ensure minimum wastage. This intercommunication that facilitates smooth operations is called ________. A) market research B) outbound logistics C) strategizing D) linkages E) interoperation Answer: D Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Application 40) Which of the following employees performs a support activity in the value chain? A) Jackson is involved in the development of technological infrastructure. B) Sofia is a member of the recruitment team. C) Nathaniel is in charge of setting up contractual agreements with vendors. D) Nora is a financial analyst who rates and gives investment advice. E) Noah is the corporate accountant who manages tax liabilities. Answer: C Diff: 3 AACSB: Reflective Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Application 41) Which of the following paved the way for the creation of a business process design? A) support activities B) triggers C) linkages D) primary activities E) electronic data interchanges Answer: C Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept

42) Which of the following statements is consistent with the central idea of business process design? A) Technology should be used to supplement the existing value chain. B) Business processes should focus on improving individual functional systems. C) Organizations should create new business processes instead of improving existing systems. D) Technology should be used to modify and improve standard business processes. E) Experimental technology can drive innovative business processes. Answer: C Diff: 2 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 43) The ________ created by Porter states that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain. A) Six Sigma methodology B) product differentiation model C) Lean Manufacturing method D) business process design E) Lean Innovation model Answer: D Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 44) In the value chain, which of the following is an example of a primary activity? A) service customers B) procurement C) human resources D) manage company resources E) support employees Answer: A Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept

45) Porter recognized a movement to create integrated, cross-departmental systems. His work lead to the creation of a new discipline called ________. A) value chaining B) business process design C) cost reduction planning D) linkages E) supporting activities Answer: B Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 46) According to Porter, most of the value in service-oriented companies is generated by all of the following activities except ________. A) operations B) marketing C) inbound logistics D) sales E) service activities Answer: C Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 47) Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept 48) The difference between the value that an activity generates and the cost of the activity is called margin. Answer: TRUE Diff: 1 AACSB: Analytical Thinking Course LO: Explain how IS can be used to gain and sustain competitive advantage LO: 2.4: How does competitive strategy determine value chain structure? Classification: Concept