2) 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 hardware and software needed. Answer: FALSE 5) Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: FALSE 13) Which of the following choices may lead to competitive advantage (1) new products, services, and business models; (2) charging less for superior products; (3) responding to customers in real-time? A) 1 only B) 1 and 2 C) 2 and 3 D) 1, 2, and 3 Answer: D 14) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the information system business objective of: A) improved efficiency. B) customer and supplier intimacy. C) survival. D) competitive advantage. Answer: C 1) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE 3) The dimensions of information systems are people, organizations, and information technology. Answer: TRUE 15) Order data for baseball tickets and bar code data are examples of: A) raw input. B) raw output. C) customer and product data. D) sales information. Answer: A 6) The decision to grant credit to a customer is normally made by a senior manager. Answer: FALSE 18) Knowledge management systems are used to gather and distribute the firm's essential operational data, such as sales reports. Answer: FALSE 20) The five basic entities that make up any business are suppliers, customers, employees, products and services, and: A) its environment. B) manufacturing and production. C) sales and marketing. D) invoices and payments. Answer: D24) Employees that assist with paperwork at all levels of the firm are called:

A) data workers. B) knowledge workers. C) operational management. D) service workers. Answer: A 26) Key forces in a business's immediate environment include: A) regulations. B) technology. C) economy. D) politics. Answer: A 1) Senior management is responsible for directing the day-to-day activities of the business. Answer: FALSE 7) Transaction processing systems are the basic business systems that serve the operational level of the organization. Answer: TRUE 25) The three principal levels of hierarchies within a business organization are: A) management, knowledge workers, and service workers. B) senior management, middle management, and operational management. C) management, data workers, and operational management. D) senior management, operational management, and workers. Answer: B 3) Strong linkages to customers and suppliers increase switching costs. Answer: TRUE 7) Which of the following is not one of the competitive forces of Porter's model? A) Suppliers B) Other competitors C) External environment D) Customers. Answer: C 16) When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits it is often referred to as creating: A) value webs. B) value chains. C) synergies. D) core competencies. Answer: C 1) The competitive forces model was created for today's digital firm. Answer: FALSE 8) Which of the following industries has the lowest barrier to entry? A) Automotive B) Computer-chip C) Restaurant D) Airline

Answer: C 3) In the strategy of product differentiation, information systems are used to enable new products and services. Answer: TRUE 2) Today, most system and application software is custom built by in-house programmers. Answer: FALSE 4) One of the main benefits of moving to mobile business computing platforms is the dramatically lower costs of hardware. Answer: FALSE 18) Total cost of ownership components include costs for downtime, training and support. Answer: TRUE 21) Software that organizes, manages, and processes business data, such as data concerned with inventory, customers, and vendors, is called: A) system software. B) application software. C) data management software. D) network software. Answer: C 79) ________ is the process of predicting when a computer hardware system becomes saturated. Answer: Capacity planning 1) Each characteristic or quality describing a particular entity is called an attribute. Answer: TRUE 3) Every record in a file should contain at least one key field. Answer: TRUE 2) A grouping of characters into a word, a group of words, or a complete number is called a record. Answer: FALSE 6) Many applications today require databases that can store and retrieve multimedia. Answer: TRUE 24) Which of the following best illustrates the relationship between entities and attributes? A) The entity CUSTOMER with the attribute PRODUCT B) The entity CUSTOMER with the attribute ADDRESS C) The entity PRODUCT with the attribute PURCHASE D) The entity PRODUCT with the attribute CUSTOMER Answer: B 2) Computers using cable modems to connect to the Internet are more open to penetration than those connecting via dial-up. Answer: TRUE 6) Viruses can be spread through e-mail. Answer: TRUE 9) Sniffers enable hackers to steal proprietary information from anywhere on a network, including e-mail messages, company files, and confidential reports. Answer: TRUE 10) DoS attacks are used to destroy information and access restricted areas of a companys information system. Answer: FALSE

12) Zero defects cannot be achieved in larger software programs because fully testing programs that contain thousands of choices and millions of paths would require thousands of years. Answer: TRUE 23) Large amounts of data stored in electronic form are ________ than the same data in manual form. A) less vulnerable to damage B) more secure C) vulnerable to many more kinds of threats D) more critical to most businesses Answer: C 27) Specific security challenges that threaten corporate servers in a client/server environment include: A) tapping; sniffing; message alteration; radiation. B) hacking; vandalism; denial of service attacks. C) theft, copying, alteration of data; hardware or software failure. D) unauthorized access; errors; spyware. Answer: B 43) You have been hired as a security consultant for a law firm. Which of the following constitutes the greatest source of security threats to the firm? A) Wireless network B) Employees C) Authentication procedures D) Lack of data encryption Answer: B 2) Enterprise systems are typically built around one or two major business workflows. Answer: FALSE 4) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. Answer: FALSE 6) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain. Answer: FALSE 15) All CRM packages contain modules for PRM and ERM. Answer: FALSE 19) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firms customer touch points and from other sources. Answer: TRUE 30) Why is overstocking warehouses not an effective solution for a problem of low availability? A) It does not speed product time to market. B) It is an inefficient use of raw materials. C) It increases sales costs. D) It increases inventory costs. Answer: D 55) SFA modules in CRM systems would provide tools for: A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers.

D) managing sales prospect and contact information. Answer: D 57) Marketing modules in CRM systems would provide tools for: A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information. Answer: C 4) Information asymmetry exists when one party in a transaction has more information for the transaction than the other party. Answer: TRUE 6) Disintermediation provides major benefits to the distributor. Answer: FALSE 7) In general, for digital goods, the marginal cost of producing another unit is about zero. Answer: TRUE 22) Based on your reading of the chapter, e-commerce is: A) still in a revolutionary phase. B) widely accepted by consumers, although technology is still quickly changing. C) not yet fully accepted by consumers, although much of its driving technology is firmly in place. D) well entrenched as a form of modern commerce. Answer: A 23) The quality of ubiquity, as it relates to e-commerce, is illustrated by: A) the same set of standards being used across the globe. B) the spread of plentiful, cheap information. C) the enabling of commerce worldwide. D) the availability of the Internet everywhere and anytime. Answer: D 24) A marketplace extended beyond traditional boundaries and removed from a temporal and geographic location is called a(n): A) exchange. B) marketspace. C) online marketplace. D) e-hub. Answer: B 2) Management information systems provide information on the firm's performance. Answer: TRUE 4) The earliest DSS were heavily data-driven. Answer: FALSE 6) Executive support systems focus on using OLAP and data mining to analyze large pools of data in major corporate systems. Answer: FALSE 7) GDSS are designed to display data in the form of digitized maps. Answer: FALSE 14) Because genetic algorithms produce generalized solutions, they are best used as aids or guides to human decision makers instead of substitutes for them.

Answer: FALSE 26) The type of decision that can made by following a definite procedure is called a(n) ________ decision. A) structured B) unstructured C) semistructured D) procedural Answer: A 28) ________ decisions are most common at higher levels of management. A) Semistructured B) Unstructured C) Structured D) Undocumented Answer: B 31) Estimating the number of direct goods to reorder falls into which category of decisionmaking? A) Structured B) Documented C) Unstructured D) Procedural Answer: A 33) Simon's four different stages in decision making are, in order from first to last: A) identification, choice, design, and implementation. B) identification, design, choice, and finalization. C) intelligence, choice, design, and implementation. D) intelligence, design, choice, and implementation. Answer: D

3) Prototyping is more iterative than the conventional lifecycle. Answer: TRUE 4) End-user-developed systems can be completed more rapidly than those developed through the conventional programming tools. Answer: TRUE 5) In one form of outsourcing, a company hires an external vendor to create the software for its system, but operates the software on its own computers. Answer: TRUE 11) Order the following steps in the systems development process in the correct sequence. A) Systems analysis, systems design, hardware and software acquisition, testing, training and documentation, conversion, production, and maintenance B) Systems analysis, systems design, hardware and software acquisition, training and documentation, conversion, testing, production, and maintenance C) Systems analysis, systems design, hardware and software acquisition, testing, training and documentation, production, conversion, and maintenance

D) Systems design, hardware and software acquisition, testing, training and documentation, conversion, production, maintenance, and systems analysis Answer: A 20) In the traditional systems development lifecycle, end users: A) are important and ongoing members of the team from the original analysis phase through maintenance. B) are important only in the testing phases. C) have no input. D) are limited to providing information requirements and reviewing the technical staff's work. Answer: D 5) The oldest method for building information systems is: A) component-based development. B) prototyping. C) object-oriented development. D) the systems development lifecycle. Answer: D 7) Fourth-generation tools cannot replace conventional development tools because they: A) cannot handle large numbers of transactions or extensive procedural logic. B) are not designed to integrate with legacy systems. C) do not incorporate methods for documentation. D) do not incorporate methods for testing. Answer: A 8) If an organization's requirements conflict with the software package chosen and the package cannot be customized, the organization will have to: A) change its procedures. B) outsource the development of the system. C) redesign the RFP. D) change the evaluation process. Answer: A 3) The oldest method for building information systems is prototyping. Answer: FALSE 6) It is important for all systems development activities to place in sequential order. Answer: FALSE 12) Which of the following is not part of the implementation process? A) Evaluating the system B) Testing C) Systems analysis D) Creating detailed design specifications Answer: C
3) A major criterion in deciding the most important perspectives of a business problem is: A) change management. B) usefulness. C) organizational needs. D) implementation. Ans:B) Usefulness 4) Inadequate database capacity is an example of the ________ dimension of business problems.

A) people B) management C) organizational D) technology Ans:D) Technology 5) The owners of Speed-EZ, a new bike messenger service, are concerned about how they will manage their messengers once they have left the office. This is a business problem that falls into the: A) management dimension. B) technology dimension. C) people dimension. D) organizational dimension. Ans:C) People Dimension 6) Aging hardware and outdated software are examples of the ________ dimension of business problems. A) management B) technology C) organizational D) information systems. Ans:B) Technology 7) One of the most frequent errors in problem solving is: A) following a rote pattern of decision making. B) not being aware of personal limitations. C) rushing to judgment. D) being too doubtful. Ans:C)...