Chapter 1 Information Systems in Global Business Today 1) Internet advertising is growing at approximately 10 percent a year.

Answer: TRUE 2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Answer: TRUE 3) A fully digital firm produces only digital goods or services. Answer: FALSE 4) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE 5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. Answer: FALSE 6) Computers are only part of an information system. Answer: TRUE 7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. Answer: FALSE 8) The dimensions of information systems are management, organizations, and information technology. Answer: TRUE 9) Knowledge workers assist with paperwork at all levels of the firm. Answer: FALSE 10) There are four major business functions: Sales and marketing; manufacturing and production; finance and accounting; and information technology. Answer: FALSE 11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. Answer: TRUE

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12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: FALSE 13) A substantial part of management responsibility is creative work driven by new knowledge and information. Answer: TRUE 14) Intranets allow firms to work easily with third-party suppliers and vendors. Answer: FALSE 15) An IT infrastructure provides the platform on which the firm can build its information systems. Answer: TRUE 16) UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. Answer: TRUE 17) Studies have consistently shown that firms who invest greater amounts in information technology receive greater benefits than firms that invest less. Answer: FALSE 18) Government and private sector standards are examples of complementary social assets required to optimize returns from IT investments. Answer: TRUE 19) A firm that invests in efficient business processes is making an investment in organizational complementary assets. Answer: TRUE 20) The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems. Answer: TRUE Chapter 2 Global E-Business and Collaboration 1) Operational management is responsible for directing the day-to-day operations of the business and therefore needs transaction-level information. Answer: TRUE 2) You would use an MIS to help decide whether to introduce a new product line. Answer: FALSE 3) Online collaboration tools eliminate the need for global firms to have synchronous

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collaboration. Answer: TRUE 4) Transaction processing systems are most commonly used by the senior management level of an organization. Answer: FALSE 5) A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. Answer: TRUE 6) A hotel reservation system is a typical example of a management information system. Answer: FALSE 7) Management information systems typically support nonroutine decision making. Answer: FALSE 8) Enrolling employees in benefits plans is a business process handled by the finance and accounting function. Answer: FALSE 9) Functional systems that support business processes within a single functional group, such as human resources, are being phased out in favor of cross-functional systems. Answer: TRUE 10) Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment. Answer: TRUE 11) Most MISs use sophisticated mathematical models or statistical techniques. Answer: FALSE 12) Decision-support systems help managers make decisions that are unique, rapidly changing, and not easily specified in advance. Answer: TRUE 13) Decision-support systems use internal information as well as information from external sources. Answer: TRUE 14) ESSs are designed to serve the middle management of the organization. Answer: FALSE 15) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS. Answer: TRUE

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16) A Skype conference call using VOIP and webcams is an example of a remote, synchronous collaboration tool. Answer: TRUE 17) ESSs are designed primarily to solve specific problems. Answer: FALSE 18) Information supplied by an enterprise system is structured around cross-functional business processes. Answer: TRUE 19) Enterprise systems often include transactions with customers and vendors. Answer: TRUE 20) Supply chain management systems are more externally oriented than enterprise systems. Answer: TRUE Chapter 3 Information Systems, Organizations, and Strategy 1) An adhocracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. Answer: FALSE 2) From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor. Answer: TRUE 3) A firm can be said to have competitive advantage when they have higher stock market valuations than their competitors. Answer: TRUE 4) The competitive forces model was created for today's digital firm. Answer: FALSE 5) Research has shown that only 25% of firms are able to align their information technology with their business goals. Answer: TRUE 6) Customers are one of the competitive forces that affect an organization's ability to compete. Answer: TRUE 7) A transparent marketplace means that there is high product differentiation. Answer: FALSE 8) The effect of the Internet has been to raise bargaining power over suppliers.

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Answer: TRUE 9) In an efficient customer response system, digital answering systems are used to monitor and respond to customer inquiries. Answer: FALSE 10) In the strategy of product differentiation, information systems are used to enable new products and services. Answer: TRUE 11) Mass customization is a form of mass production. Answer: TRUE 12) Strong linkages to customers and suppliers decrease switching costs. Answer: FALSE 13) In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense. Answer: TRUE 14) In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer. Answer: TRUE 15) The value chain model classifies all company activities as either primary or support. Answer: TRUE 16) The idea driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits. Answer: TRUE 17) All organizations have bedrock, unassailable assumptions that define their goals and products. Answer: TRUE 18) In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software. Answer: TRUE 19) The term business ecosystem describes the interplay between the various organizational forces within a firm. Answer: FALSE 20) The use of Internet technologies allows companies to more easily sustain competitive advantage. Answer: FALSE

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Chapter 4 Ethical and Social Issues in Information Systems 1) Advances in data storage have made routine violation of individual privacy more difficult. Answer: FALSE 2) The last step in analyzing an ethical issue should be to identify the stakeholders have a vested interest in the outcome of the decision. Answer: FALSE people who

3) Professionals take on special rights and obligations because of their special claims to knowledge, wisdom, and respect. Answer: TRUE 4) Privacy is the right to be left alone when you want to be, without surveillance or interference from other individuals or organizations. Answer: TRUE 5) Most American and European privacy law is based on a set of five principles called COPPA. Answer: FALSE 6) A cookie is a small file containing information about you and your Web activities that is deposited on your hard disk by a Web site. Answer: TRUE 7) Spyware is software that comes hidden in downloaded applications and can track your online movements. Answer: TRUE 8) Most Internet businesses do very little to protect the privacy of their customers. Answer: TRUE 9) P3P encrypts or scrambles e-mail or data so that it cannot be read illicitly. Answer: FALSE 10) Protection for trade secrets is enforced at the federal level. Answer: FALSE 11) Copyright is the legal protection afforded intellectual property, such as a song, book, or video game. Answer: TRUE 12) Trade secret law protects the actual ideas in a work product, not just their manifestations. Answer: TRUE 13) The drawback to copyright protection is in passing stringent criteria of nonobviousness.

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Answer: FALSE 14) According to the courts, in the creation of software, unique concepts, general functional features, and even colors are protectable by copyright law. Answer: FALSE 15) The key concepts in patent law are originality, novelty, and value. Answer: FALSE 16) Despite the passage of several laws defining and addressing computer crime, accessing a computer system without authorization is not yet a federal crime. Answer: FALSE 17) Insofar as software is essentially an intangible good, producers of software cannot be held liable for any damages that their software unintentionally causes. Answer: FALSE 18) The European Parliament has passed a ban on unsolicited commercial messaging. Answer: TRUE 19) The most common type of computer-related RSI is CTS. Answer: TRUE 20) Technostress is a computer-related malady whose symptoms include fatigue. Answer: TRUE Chapter 5 IT Infrastructure and Emerging Technologies 1) IT infrastructure technology is purely a set of physical devices and software applications that are required to operate the entire enterprise. Answer: FALSE 2) Client/server computing is a widely used form of centralized processing. Answer: FALSE 3) In green computing, reducing computer power consumption is a top priority. Answer: TRUE 4) N-tier computing is a multi-tier, load-balancing scheme for Web-based applications in which significant parts of Web site content, logic, and processing are performed by smaller, less expensive servers located nearby the user. Answer: TRUE 5) Application server software is responsible for locating and managing stored Web pages. Answer: FALSE

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6) An application server may reside on the same computer as a Web server or on its own dedicated computer. Answer: TRUE 7) Enterprise integration requires software that can link disparate applications and enable data to flow freely among different parts of the business. Answer: TRUE 8) The mainframe market has grown steadily over the past decade. Answer: TRUE 9) The operating system is used to manage the computer's activities. Answer: TRUE 10) Like an ASP, a Web hosting service provides shared applications to subscribed users, but does this through a Web portal. Answer: FALSE 11) SANs create large central pools of storage that can be rapidly accessed and shared by multiple servers. Answer: TRUE 12) Autonomic computing is implemented primarily with enterprise or ISP servers. Answer: FALSE 13) Java software is designed to run on any computer or computing device, regardless of the specific microprocessor or operating system it uses. Answer: TRUE 14) Web services can exchange information between two different systems regardless of the operating system or programming languages on which the systems are based. Answer: TRUE 15) Whereas XML is limited to describing how data should be presented in the form of Web pages, HTML can perform presentation, communication, and data storage tasks. Answer: FALSE 16) Hypertext markup language specifies how text, graphics, video, and sound are placed on a Web page document. Answer: TRUE 17) The collection of Web services that are used to build a firm's software systems constitutes what is known as a service-oriented architecture. Answer: TRUE 18) Today most business firms have discontinued operating their legacy systems, replacing these

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with inexpensive Web services and hosted software. Answer: FALSE 19) Scalability refers to the ability of a computer, product, or system to expand to serve a large number of users without breaking down. Answer: TRUE 20) TCO refers to the original cost of purchased technology: both hardware and software. Answer: FALSE Chapter 6 Foundations of Business Intelligence: Databases and Information Management 1) A grouping of characters into a word, a group of words, or a complete number is called a record. Answer: FALSE 2) Each characteristic or quality describing a particular entity is called an attribute. Answer: TRUE 3) Program-data dependence refers to the coupling of data stored in files and software programs that use this data such that changes in programs require changes to the data. Answer: TRUE 4) A DBMS separates the logical and physical views of data. Answer: TRUE 5) Every record in a file should contain at least one key field. Answer: TRUE 6) Many applications today require databases that can store and retrieve multimedia. Answer: TRUE 7) One of the drawbacks to OODBMS are that they cannot work with applets. Answer: FALSE 8) OODBMS are slower than relational DBMS. Answer: TRUE 9) A data dictionary is a language associated with a database management system that end users and programmers use to manipulate data in the database. Answer: FALSE 10) In a relational database, complex groupings of data must be streamlined to eliminate awkward many-to-many relationships. Answer: TRUE

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11) A data warehouse may be updated by a legacy system. Answer: TRUE 12) A data warehouse is typically comprised of several smaller data marts. Answer: FALSE 13) OLAP is a key tool of BI. Answer: TRUE 14) OLAP enables users to obtain online answers to ad-hoc questions in a fairly rapid amount of time, except when the data are stored in very large databases. Answer: FALSE 15) Predictive analysis is synonymous with data mining. Answer: FALSE 16) In a Web-based database, middleware is used to transfer information from the organization's internal database back to the Web server for delivery in the form of a Web page to the user. Answer: TRUE 17) The disadvantage of using a Web interface for a database is that it typically requires substantial changes to the internal database. Answer: FALSE 18) Common Gateway Interface is a specification for processing data on a Web server. Answer: TRUE 19) Data administration is a special organizational function that manages the policies and procedures through which data can be managed as an organizational resource. Answer: TRUE 20) Data cleansing is the same process as data scrubbing. Answer: TRUE Chapter 7 Telecommunications, the Internet, and Wireless Technology 1) Telephone networks are fundamentally different from computer networks. Answer: TRUE 2) Increasingly, voice, video, and data communications are all based on Internet technology. Answer: TRUE 3) To create a computer network, you must have at least two computers. Answer: TRUE 4) An NOS must reside on a dedicated server computer in order to manage a network.

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Answer: FALSE 5) A hub is a networking device that connects network components and is used to filter and forward data to specified destinations on the network. Answer: FALSE 6) In a client/server network, a network server provides every connected client with an address so it can be found by others on the network. Answer: TRUE 7) Central large mainframe computing has largely replaced client/server computing. Answer: FALSE 8) Circuit switching makes much more efficient use of the communications capacity of a network than does packet switching. Answer: FALSE 9) A protocol is a standard set of rules and procedures for the control of communications in a network. Answer: TRUE 10) Two computers using TCP/IP can communicate even if they are based on different hardware and software platforms. Answer: TRUE 11) In a ring topology, one station transmits signals, which travel in both directions along a single transmission segment. Answer: FALSE 12) Coaxial cable is similar to that used for cable television and consists of thickly insulated copper wire. Answer: TRUE 13) Fiber-optic cable is more expensive and harder to install than wire media. Answer: TRUE 14) The number of cycles per second that can be sent through any telecommunications medium is measured in kilobytes. Answer: FALSE 15) The Domain Name System (DNS) converts IP addresses to domain names. Answer: TRUE 16) VoIP technology delivers video information in digital form using packet switching. Answer: TRUE

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17) Web 3.0 is a collaborative effort to add a layer of meaning to the existing Web in order to reduce the amount of human involvement in searching for and processing Web information. Answer: TRUE 18) Wi-Fi enables users to freely roam from one hotspot to another even if the next hotspot is using different Wi-Fi network services. Answer: FALSE

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19) WiMax has a wireless access range of up to 31 miles. Answer: TRUE 20) RFID has been exceptionally popular from the technology's inception because of its low implementation costs. Answer: FALSE

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