Deck 1: Foundations of Information Systems in Business

Question 1

Information systems that focus on operational and managerial applications in support of basic business functions, such as accounting, are known as strategic information systems.

Answer 1

False

Question 2

Expert systems can serve as consultants to users by providing expert advice in limited subject areas.

Answer 2

True

Question 3

Integration of business systems allows greater flexibility and provides greater business support than any of the individual systems could provide alone.

Answer 3

True

Question 4

The term "information technology" refers to all of the components and resources necessary to deliver the information and functions of a system to an organization.

Question 5

Management information systems (MIS) provide information in the form of reports and displays.

Question 6

An expert system can provide advice for operational chores, such as equipment diagnostics or loan portfolio management.

Question 7

Smoke signals and library card catalogs are examples of an information system.

Question 8

Decision support systems (DSS) provide managerial end users with ad hoc and interactive support of their decision-making processes.

Question 9

Enterprise collaboration systems involve the use of software tools to support e-commerce functions with customers and suppliers.

Question 10

An extranet is an Internet-like network inside the enterprise; an intranet is between the enterprise and its trading partners.

Question 11

Most retail stores now use computer-based information systems to keep track of inventory, but few use them to evaluate sales trends.

Question 12

Having a basic understanding of information systems is good, but not nearly as important as understanding other functional business areas.

Question 13

Information technology can help all kinds of businesses improve the efficiency and effectiveness of their business processes and managerial decision making.

Question 14

Maintenance is one of the key activities in the development and management of a business information system.

Question 15

In real-time processing, data are processed immediately after a transaction occurs.

Question 16

An information system that supports accounting is an example of a functional business system.

Question 17

Gaining a strategic advantage over competition requires the innovative application of information technologies.

Question 18

A process control system is an example of an operation support system that records and processes data resulting from business transactions.

Question 19

One system can be made up of other systems or can be a part of a bigger system.

Question 20

An information system can use hardware as simple as a pencil and paper to capture and store its data.

Question 21

Mismanagement or misapplication of information systems can ultimately result in business failure.

Question 22

A sales manager exercises control when reassigning salespersons to new territories after evaluating feedback about their sales performance.

Question 23

Falling prices of computer hardware and software should continue to induce more businesses to expand their computerized operations.

Question 24

Increased importance placed on cyber-security will reduce the need for workers skilled in information security.

Question 25

Optical disks and plastic cards are examples of hardware resources, but paper forms are not.

Question 26

In the context of the information systems model, computer peripherals typically consist of hardware devices, such as keyboards, and productivity tools, such as word processing software.

Question 27

Information systems are just like any other system, but their value to the modern organization is unlike any other system ever created.

Question 28

Data are raw facts or observations, typically about physical phenomena or business transactions.

Question 29

A large-scale movement to outsource basic software programming functions to India, the Middle East, and Asia-Pacific countries has resulted because U.S. programmers have been inadequately trained.

Question 30

In order for something to be classified as a "system", a computerized environment must be involved.

Question 31

Most end users in business are referred to as knowledge workers, people who spend most of their time communicating, collaborating, and creating, using, and distributing information.

Question 32

An organization is considered an open system when it interfaces and interacts with other systems in its environment.

Question 33

In the context of the information systems model, data resources are typically organized as databases and expert systems.

Question 34

Anyone who uses an information system or the information it produces can be referred to as an end user.

Question 35

Data can be thought of as context independent. This means that a list of numbers or name by themselves do not provide an understanding of the context in which they were recorded.

Question 36

A home temperature control system is an example of a cybernetic system.

Question 37

The human body and an oil refinery can both be classified as systems.

Question 38

In the context of the information systems model, information is subjected to a "value-added" process that converts it to data that meet the needs of end users.

Question 39

In information systems activities, the processing of data resources typically takes the form of data entry activities.

Question 40

Multiple systems never share an environment; each has its own.

Question 41

After data has been entered into a computerized information system, it is usually not necessary to correct or update it. That is the benefit of a computerized system-once entered, always correct.

Question 42

Which of the following is a false statement?

A) Today's information systems are doing the same basic things that they did over 40 years ago.
B) Today there is a much higher level of integration of system functions.
C) Today there is greater connectivity across dissimilar system components.
D) None of the statements is false.

Question 43

The rapid development of microcomputer processing power, application software packages, and telecommunications networks gave birth to the phenomenon of _______________.

A) manufacturer-to-public direct sales
B) MIS departments
C) end user computing
D) electronic monitoring

Question 44

According to the Real World Case, the big problem facing the Bryan Cave law firm in 2002 was:

A) Communications between all their lawyers and offices.
B) Dealing with the differences in laws around the world.
C) Billing their clients correctly.
D) Making the highest profits from their resources while delivering the highest customer value.

Question 45

Information technology can be used to support _______________.

A) product development teams
B) customer support processes
C) any other business activity
D) All the choices are correct.

Question 46

According to the text, most retail stores today use computer-based information systems to support business processes and operations. This support falls broadly into the categories of:

A) Business decisions and strategies for competitive advantage.
B) Operations and support strategies.
C) Business decisions and operations.
D) Strategic business decisions and tactical business decisions.

Question 47

How do information systems aid in decision making?

A) Information systems help companies determine investments.
B) Information systems help companies determine which products to sell or discontinue.
C) Information systems can be used to gain competitive advantage.
D) All of the choices are correct.

Question 48

According to the Real World Case, the Bryan Cave law firm had difficulty billing its real estate customers because:

A) The developers could not afford their rates.
B) Developers think in terms of square feet, not hours worked.
C) Their lawyers did not understand the real estate profession.
D) None of the above.

Question 49

All the following are examples of an information system, except:

A) A day planner
B) A cash register
C) A group of marbles in a box
D) A paper-based accounting ledger

Question 50

According to the Real World case, eCourier uses SeeWhy software to:

A) Track packages that have not been delivered.
B) Provide business intelligence in terms of customer satisfaction.
C) Interface with their accounting software.
D) All of the above.

Question 51

All of the following are fundamental reasons for business applications of information technology except:

A) Support of strategies for competitive advantage
B) Support of business processes and operations
C) Compliance with environmental regulations
D) Decision making support

Question 52

According to the Real World case, eCourier embraced technology by:

A) Doing the same things that all their competitors were doing successfully.
B) Installing a new computerized bar-scanning system for packages.
C) Enabling a new telephone system for customers.
D) Giving all their couriers handheld GPS units for tracking and communication. Lufthansa plans to phase out the desktop computers that it had previously deployed in airports, thereby streamlining its infrastructure and cutting costs.

Question 53

Companies generally rely on e-business applications to do all of the following except:

A) Re-engineer internal business processes
B) Implement electronic commerce systems
C) Monitor employee productivity
D) Promote enterprise collaboration among business teams and workgroups

Question 54

According to the textbook case, Welch's uses BI software from Oco to:

A) manage their gasoline usage.
B) decide which products should be produced.
C) ensure that its carriers are shipping full truckloads to customers.
D) follow new competitive trends from its competitors.

Question 55

According to the Real World Case, the goal of Bryan Cave is:

A) To have the best value for their customers.
B) To create increased profit per customer.
C) To build the best long-term relationships in the world.
D) All the above.

Question 56

In its simplest form, a system consists of all the following except:

A) A group of cooperative users
B) A set of interrelated components
C) A clearly defined boundary
D) A common set of objectives

Question 57

The expanding role of information systems from the 1950s to the present, in sequential order, are:

A) Management reporting, decision support, electronic business and commerce, data processing, strategic and end user support
B) Data processing, management reporting, strategic and end user support, electronic business and commerce, decision support
C) Data processing, management reporting, decision support, strategic and end user support, electronic business and commerce
D) Electronic business and commerce, management reporting, data processing, strategic and end user support, decision support

Question 58

Calculating employees' pay, federal taxes, and other payroll deductions is a business example of a computerized processing activity.

Question 59

According to the textbook case, the Oco BI software used by Welch's:

A) increases the number of deliveries made on Fridays.
B) assures that most deliveries are not made on Fridays.
C) assures that most deliveries are made on Fridays.
D) helps them even out the number of delivery trucks used each day of the week.

Question 60

In information systems activities, a user interface commonly refers to a more convenient and efficient method of end-user input and output with a computer system.

Question 61

When employees in a project team use email to send and receive messages and use video conferences to hold electronic meetings and coordinate their activities, they are using _______________.

A) transaction processing systems
B) process control systems
C) enterprise collaboration systems
D) decision support systems

Question 62

A functional business system supports all of the following types of applications except:

A) Accounting
B) Customer problem resolution
C) Marketing
D) Human resource management

Question 63

Success in today's dynamic business environment depends heavily on maximizing the use of Internet-based technologies and Web-enabled information systems to meet the competitive requirements of _______________.

A) customers
B) suppliers
C) business partners
D) All of the choices are correct.

Question 64

Most information systems are designed to _______________.

A) produce information and support decision making
B) handle record-keeping
C) handle transaction processing chores
D) All the choices are correct.

Question 65

Electronic commerce systems generally include all of the following except:

A) Internet websites for online sales
B) Direct links to credit reporting services
C) Extranet access of inventory databases
D) Intranets that allow sales reps to access customer records

Question 66

A database of customer purchases that provides end-user managers with interactive and ad hoc decision-making support is referred to as _______________.

A) a transaction processing system
B) a decision support system
C) an information reporting system
D) an executive information system

Question 67

Process control systems monitor and control _______________ processes.

A) physical
B) transactional
C) inter-departmental
D) mechanical

Question 68

Which of the following systems acts as a consultant to users?

A) Knowledge
B) Integrated information
C) Executive information
D) Expert

Question 69

According to the textbook case on responsibility and accountability, even if a project is not an IT project, who is held responsible for optimizing returns on IT-related investments?

A) CEO
B) CFO
C) COO
D) CIO

Question 70

The text classifies information systems as either operations or management support information systems. Which one of the following would not be classified as an operations support system?

A) Transaction processing systems
B) Process control systems
C) Enterprise collaboration systems
D) Decision support systems

Question 71

In an e-business enterprise, an intranet refers to:

A) An Internet-like network inside the enterprise
B) A network between an enterprise and its trading partners
C) A network between the members of a single workgroup
D) All the choices are correct.

Question 72

E-commerce ____________________.

A) involves buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks
B) uses the Internet, intranets, and extranets to support every step of the commercial process, such as multimedia advertising, product information, and customer support
C) involves Internet security and payment mechanisms that ensure completion of delivery and payment processes
D) All of the choices are correct.

Question 73

Executive information systems (EIS) are tailored to meet the strategic information needs of which of the following management levels?

A) Top management (strategic)
B) Middle management (tactical)
C) Lower management (operational)
D) All of the choices are correct.

Question 74

Business applications of information systems are typically combinations of several types of information systems. This integration is referred to as _______________ systems.

A) information reporting
B) decision support
C) cross-functional informational
D) end user computing

Question 75

A nuclear power plant uses electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the power generation process. This is an example of a(n) _______________.

A) transaction processing system
B) decision support system
C) enterprise collaboration system
D) process control system

Question 76

Information systems that focus on operational and managerial applications in support of basic business functions, such as accounting or marketing, are known as _______________.

A) functional business systems
B) strategic information systems
C) executive information systems
D) knowledge management systems

Question 77

When information system applications focus on providing information and support for effective decision making by managers, they are called _______________ support systems.

A) decision
B) management
C) collaboration
D) process

Question 78

An information system that supports the business functions of accounting, finance, human resource management, marketing, or operations would be classified as a(n) _______________ system.

A) functional business
B) executive information
C) management information
D) decision support

Question 79

A production manager needs a system to help determine how much product to manufacture based on the expected sales associated with a future promotion, plus the location and availability of the raw materials necessary to manufacture the product. What type of system would meet this manager's needs?

A) Transaction processing system
B) Process control system
C) Enterprise collaboration system
D) Decision support system

Question 80

E-business uses Internet technologies to work and empower _______________.

A) business processes
B) electronic commerce
C) collaboration among business teams
D) All of the choices are correct.