1.

War driving occurs when eavesdroppers drive by or park outside buildings and try to intercept
wireless network traffic. True
2. A computer virus is a rogue software that attaches itself to other software programs or data files
without user knowledge or permission. True
3. Canadian Sarbanes-Oxley Act (CSOX) and Personal Information Protection and Electronic
Documents Act (PIPEDA) are guidelines that Canadian companies may follow to improve security
and control. False
4. The CSOX imposes responsibility on companies and their management to safeguard the
accuracy and integrity of information that is used internally and released externally. True
5. Computer forensics is the scientific collection, examination, authentication, preservation, and
analysis of data held on or retrieved from computer storage media in such a way that the
information can be used as evidence in a court of law. True
6. The acceptable use policy defines acceptable use of the firm's information; however, the
acceptable use of hardware and software resources is covered under federal laws. False
7. When developing a security policy, management must estimate how much it will cost to achieve
the level of acceptable risk. True
8. Biometric authentication is a totally reliable method of authentication. False
9. Network Address Translation (NAT) conceals the IP (Internet protocol) addresses of the
organization's internal host computer(s) to prevent sniffer programs outside the firewall from
getting them. True
10. Most antivirus software is effective against all types of viruses and, once installed, will remain
effective for years. False
11. The methods, policies, and organizational procedures that ensure the safety of the
organization's assets, the accuracy and reliability of its accounting records, and operational
adherence to management standards are known as:
a. Security.
b. Protection.
c. Controls.
d. Prevention.
12. Because the Internet is so huge and so fast, when abuses occur:
e. Special security systems are deployed to stop the abuse.
f. They can be easily stopped in a matter of minutes.
g. They can have a widespread impact in a matter of minutes.
h. None of the above.
13. Which of the following statements about worms is not true?
i. Worms are independent computer programs that copy themselves from one computer
to other computers over a network.
j. Worms destroy data, but they cannot alter programs.
k. Worms can even halt the operation of computer networks.
l. Unlike viruses, worms operate on their own without attaching to other computer
program files.
14. A Trojan horse is:
m. A software program that appears to be benign but then does something unexpected.
 n. Often a way for viruses or other malicious code to be introduced into a computer
system.
o. Not a virus because it does not replicate.
p. All of the above.
15. The intentional disruption, defacement, or even destruction of a Web site or corporate
information system is called:
q. Spoofing.
r. Cybervandalism.
s. Logging.
t. Sniffing.
16. Setting up fake Web sites or sending e-mail messages that look like those of legitimate
businesses to ask users for confidential personal data is called:
u. Pharming.
v. Identity theft.
w. Evil twins.
x. Phishing.
17. According to the recent study cited in the textbook, when the security of a large firm is
compromised, the company loses an average of almost:
y. $1.65 billion in stock market value per incident.
z. $1.65 million in stock market value per incident.
aa. $165,000 in stock market value per incident.
bb. $165 in stock market value per incident.
18. Plans for the restoration of computing and communications services after they have been
disrupted by a catastrophic event, such as an earthquake, flood, or terrorist attack, are called:
cc. Authorization management systems.
dd. Disaster recovery plans.
ee. Fault-tolerant systems.
ff. None of the above.
19. Which of the following is not included in the management information system (MIS) audit?
gg. An estimate of the probability of the occurrence of control weaknesses.
hh. A list of all control weaknesses.
ii. An assessment of financial and organizational impacts of each threat.
jj. Potential weaknesses of future projects.
20. Which of the following statements about tokens is not true?
kk. They are small gadgets that typically fit on key rings, and they display passcodes that
change frequently.
ll. They are physical devices similar to an identification card.
mm. They are designed to prove the identity of a single user.
nn. They are typically affixed to a computer and valid only on that computer.
21. Companies cannot rewrite the enterprise software to support the way their business processes
work. False
22. Enterprise systems have become more externally oriented and capable of communicating with
customers, suppliers, and other organizations. True
23. The lack of flexibility in the supply chain forces many firms to keep excess inventory on hand.
True
24. Supply chain planning systems manage the flow of products through distribution centres and
warehouses to ensure that products are delivered to the right locations in the most efficient
manner. False
25. In some industries, total supply chain costs represent approximately 75% of the total operating
budget. True
26. Sales force automation modules in customer relationship management (CRM) systems help
sales staff focus on the most profitable customers rather than on all customers. True
27. CRM systems are not designed to support direct-marketing campaigns. False
28. Operational CRM includes applications that analyze customer data generated by operational
CRM applications to provide information for improving business performance management.
False
29. Customer lifetime value determinations are an output of operational CRM systems. False
30. Enterprise applications involve complex pieces of software that are very expensive to purchase
and implement. True
31. Business process(es) supported by enterprise systems include:
a. Sales and marketing processes.
b. Manufacturing and production processes.
c. Human resources processes.
d. All of the above.
32. Which of the following statements about enterprise systems is not true?
e. Enterprise systems allow senior management to determine which products are most or
least profitable.
f. Enterprise systems help firms respond rapidly to customer requests for information or
products.
g. Enterprise systems allow senior management to easily find out at any moment how a
particular organizational unit is performing.
h. Enterprise systems allow senior management to accurately forecast sales.
33. A network of organizations used for procuring raw materials, transforming these materials into
products, and distributing the products to customers is called a(n):
i. Supply chain.
j. Process chain.
k. Value chain.
l. Enterprise system.
34. The portion of the supply chain responsible for distributing and delivering products to the final
customers is referred to as:
m. The downstream portion.
n. The upstream portion.
o. The activity chain.
p. The internal supply chain.
35. "A supply chain driven by production master schedules based on forecasts or best guesses of
demand for products" best describes a(n):
q. Innovation-based model.
 r. Replenishment-based model.
s. Pull-based model.
t. Push-based model.
36. A method of interacting with customers, such as a Web site or a wireless device, is called a:
u. Touch point.
v. Demand point.
w. Customer service model.
x. Sales force point.
37. Studies have shown that it costs _____ times more to sell to a new customer than to an existing
customer.
y. Ten
z. Five
aa. Three
bb. Six
38. Which of the following is a powerful instrument for achieving operational excellence and
enhancing decision making?
cc. Customer relationship management systems.
dd. Supply chain management systems.
ee. Enterprise systems.
ff. All of the above.
39. Enterprise applications are based on:
gg. Organization-wide data definitions.
hh. Local data definitions.
ii. Dynamic data definitions.
jj. No data definitions.
40. The major enterprise software vendors have created what they call ______ to make their
customer relationship management, supply chain management, and enterprise systems work
closely with each other.
kk. E-business suites.
ll. Enterprise solutions.
mm. Enterprise suites.
nn. All of the above.
41. Electronic commerce (e-commerce) continues to grow rapidly and transform the way companies
do business. true
42. The technical standards for conducting e-commerce are universal standards. true
43. Information density in e-commerce markets make prices and costs less transparent. false
44. The Internet is causing an increase in information asymmetry, richness, and reach. false
45. Privacy advocates support advertising networks because they protect the privacy of individual
users. false
46. Mobile commerce (m-commerce) technology is required for consumer-to-consumer e-
commerce transactions to take place. false
47. Google, Bing, Yahoo!, MSN, and AOL are all examples of e-tailers. true
48. Private industrial networks rely on intranets to coordinate processes between a business and its
suppliers and other key business partners. false
49. M-commerce sales represent the majority of total e-commerce sales. false
50. An example of wireless advertising occurs when Yahoo!-sponsored advertisers appear on the list
of search results. true
51. Because e-commerce is ubiquitous, it reduces:
a. Transaction costs.
b. Dynamic pricing.
c. Price discrimination.
d. Marketspace.
52. "Richness" refers to:
e. The complexity and content of a message.
f. How many people a business can connect with and how many products it can offer to
those people.
g. The ability of an Internet client to provide payment.
h. The extent of interconnectedness between retailers and suppliers.
53. Removing the middleman and selling directly to a consumer in a digital marketplace is called:
i. Disintermediation.
j. Marketspace.
k. Ubiquity.
l. Reintermediation.
54. Which of the following are examples of digital goods?
m. Music tracks, videos, and books.
n. Smart phones, microwave ovens, and cars.
o. 3-D TVs, iPods, and digital cameras.
p. All of the above.
55. A content provider:
q. Provides a digital environment where buyers and sellers can meet, search for products,
display products, and establish prices for those products.
r. Creates revenue by providing digital content, such as digital news, music, photos, or
video, over the Web.
s. Provides product, pricing, and availability information to individuals and businesses.
t. None of the above.
56. A method of publishing audio broadcasts via the Internet, which can later be downloaded to
portable music players, is called:
u. Uploading.
v. Podcasting.
w. Streaming.
x. Blogging.
57. A Web site that generates revenue by attracting a large audience of visitors who can then be
exposed to advertisements can best be described as a(n):
y. Advertising Revenue Model.
z. Subscription Revenue Model.
aa. Affiliate Revenue Model.
bb. Transaction Fee Revenue Model.
58. Which of the following modifies the Web pages presented to each customer?
 cc. Infomarketing.
dd. Electronic customized marketing.
ee. Personalization.
ff. Micromarketing.
59. Which of the following is not included among location-based m-commerce services?
gg. Obtaining driving instructions.
hh. Searching for local businesses.
ii. Searching for movies and restaurants.
jj. None of the above.
60. Which of the following is a function of peer-to-peer payment systems?
kk. Referring to digital currency that can be used for micropayments.
ll. Supporting electronic payment for online and physical store purchases of goods or
services after the purchase has taken place.
mm. Sending money using the Web to individuals who are not set up to accept credit
card payments.
nn. Providing secure services for credit card payments on the Internet

61. The approval of the capital budget is a structured decision. False

62. Operational management typically make most of the unstructured decisions. False

63. Information quality, management filters, and organizational culture are the three main reasons
why investments in information technology do not always produce positive results. True

64. Business intelligence replaces the management team with a strong database foundation and a
set of analytical tools. False

65. The management information system (MIS) primarily addresses structured problems, and the
decision support system (DSS) supports semistructured and unstructured problem analysis. true

66. Only large databases or large data warehouses may be used in a DSS. False

67. Data visualization tools help users see patterns and relationships in large amounts of data. True

68. The people element of group decision support systems (GDSSs) refers to participants only. False

69. The executive support system (ESS) has significant drill-down capabilities if managers need more
detailed views of data. True

70. Through their ESS, many managers have access to news services, financial market databases,
economic information, and whatever other external data they may require. True

71. In which stage of Simon's Model does problem discovery happen?

a. Implementation
 b. Design
c. Intelligence
d. Choice

72. The questions "Is the solution working?" and "Can we make it work better?" are asked in the:
e. Design stage.
f. Choice stage.
g. Implementation stage.
h. Intelligence stage.

73. The managerial roles identified by Mitzberg are:

i. Interpersonal, informational, and decisional.
j. Planning, organizing, coordinating, deciding, and controlling.
k. Input, process, output, and feedback.
l. None of the above.

74. To which of the following information quality dimensions is the question "Are all the data
present?" related?
m. Timeliness.
n. Accessibility.
o. Validity.
p. None of the above.

75. Studies of business restructuring find that firms tend not to:
q. Blame senior management for poor business judgment.
r. Ignore poor performance until threatened by outside takeovers.
s. Blame economic conditions, foreign competition, and rising prices for poor
performance.
t. Systematically blame poor performance on external forces beyond their control.

76. The system that typically produces fixed, regularly scheduled reports based on data extracted
and summarized from the TPS (transaction processing system) is the:
u. Management information system (MIS).
v. Group decision support system (GDSS).
w. Decision support system (DSS).
x. Executive supportive system (ESS).

77. Which of the following is a question that would be asked when conducting a backward
sensitivity analysis?
y. What happens if we keep the price and advertising budgets the same?
z. If we want to sell one million product units next year, by how much must we reduce the
price of the product?
aa. What happens if we raise the product price by 5% or increase the advertising budget by
$100,000?
 bb. All of the above.

78. Which of the following is a question that a pivot table could help management answer?
cc. Where do our customers come from?
dd. How many customers come from each region?
ee. Does the source of the customer make a difference in addition to the region?
ff. All of the above.

79. Which of the following is not a characteristic of GDSSs?

gg. They are designed for decision makers working together as a group.
hh. They are paper based.
ii. They are interactive and computer based.
jj. They are used to facilitate the solution of unstructured problems.

80. The system that helps senior executives monitor organizational performance, track activities of
competitors, spot problems, identify opportunities, and forecast trends is called:
kk. The executive support system (ESS).
ll. The transaction processing system (TPS).
mm. The management information system (MIS).
nn. The decision support system (DSS).