MI375-01 Exam 1 Study Help 1) TRUE 1.

Modern digital firms use the Internet and networking technology to make data flow seamlessly among different parts of the organization; streamline the flow of work; and create electronic links with customers, suppliers, and other organizations. 2. It has been proven that information technology can give a firm a longlasting competitive advantage. 3. The Internet and the new markets are changing the cost and revenue structure of traditional firms and are hastening the demise of traditional business models. 4. The Internet and related technologies make it possible to conduct business across firm boundaries almost as efficiently and effectively as it is to conduct business within the firm. 5. The traditional business firm is a flat, decentralized, unstructured arrangement of generalists who typically rely on a fixed set of standard operating procedures to deliver a customized product. 6. Globalization has transformed the conduct of business. 7. A network requires at least three computers. 8. Major industrial powers are being transformed to knowledge- and information-based service economies and leaving manufacturing to the thirdworld countries. 9. Information-intense products require a great deal of knowledge and training to produce. 10. The key elements of an organization are its people, structure, business processes, politics, and culture. 11. The Internet is an international network of commercial networks. 12. To work properly, an information system must balance technology and human behavior and requirements, even if less-than-optimal technology must be used. 13. Computer science, management science, and operations research all contribute to the technical approach to information systems.

2) FALSE 3) TRUE

4) TRUE

5) FALSE

6) TRUE 7) FALSE 8) TRUE

9) TRUE 10) TRUE 11) FALSE 12) TRUE

13) TRUE

14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) FALSE 19) FALSE 20) TRUE 21) TRUE 22) FALSE 23) TRUE 24) TRUE 25) TRUE 26) FALSE

14. The behavioral approach to information systems focuses on changes in attitudes, management and organizational policy, and behavior. 15. Security and control will be an ongoing concern for information systems because these problems can never be eliminated. 16. Operational management is responsible for directing the day-to-day operations of the business. 17. Deciding whether to introduce a new product line or employ a new marketing campaign are the responsibility of operational managers. 18. Operational-level systems often answer "what-if" questions. 19. Management-level systems do not support nonroutine decision making. 20. The principal concern of strategic-level systems is to match changes in the external environment with existing organizational capability. 21. Transaction processing systems are the basic business systems that serve the operational level of the organization. 22. A hotel reservation system is a typical example of a management information system. 23. Managers need TPSs to monitor the status of internal operations and the firm's relations with the external environment. 24. Management information systems primarily serve the functions of planning, controlling, and decision making at the management level. 25. Most MIS use simple routines such as summaries and comparisons, as opposed to sophisticated mathematical models or statistical techniques. 26. Decision support systems generally provide answers to routine questions that have been specified in advance and have a predefined procedure for answering them. 27. The most advanced graphics software in any of the systems discussed is normally found in decision support systems. 28. Product life cycle management (PLM) systems are one type of sales and marketing system that has become increasingly valuable in the automotive industry.

27) FALSE 28) FALSE

29) TRUE 30) TRUE 31) TRUE 32) TRUE 33) TRUE

29. Maintaining online directories of employees with special areas of expertise is one application of knowledge management systems. 30. Supply chain management systems are more externally oriented than enterprise systems. 31. E-mail and instant messaging have become a dominant form of business communication. 32. It is the systems analysts job to translate business problems and requirements into information requirements and systems. 33. By reducing overall management costs, information technology enables firms to increase revenues while shrinking the number of middle managers and clerical workers. 34. In virtual organizations, work is tied to geographic location. 35. Research on project implementation failures demonstrates that the most common reason for failure of large projects to reach their objectives is organizational and political resistance to change. 36. According to bureaucratic models of decision making an organization's most important goal is the preservation of the organization. 37. If an information system is not built with a clear understanding of the organization and a clear understanding of exactly what is expected of it, it will not be able to deliver genuine benefits. 38. 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. 39. Many of information technology-based products and services were developed originally by financial institutions. 40. Digitally enabled networks can be used not only to purchase supplies but also to closely coordinate production of many independent firms. 41. One way an organization can increase profitability and market penetration is to mine existing data. 42. The just-in-time supply method allows stockless inventory. 43. The competitive forces model was created for today's digital firm.

34) FALSE 35) TRUE

36) TRUE 37) TRUE

38) TRUE

39) TRUE 40) TRUE 41) TRUE 42) FALSE 43) FALSE

44) TRUE 45) FALSE 46) TRUE

44. Customers are one of the competitive forces that affect an organization's ability to compete. 45. The competitive advantages strategic systems confer usually last long enough to ensure long-term profitability. 46. One advantage of using Internet technology is that it provides the infrastructure to allow information to flow seamlessly from one part of the organization to another. 47. The time and money spent locating a suitable product and determining the best price for that product defines location costs. 48. Information asymmetry exists when one party in a transaction has more information for the transaction than the other party. 49. Dynamic pricing is online bidding. 50. A banner ad opens automatically and does not disappear until the user clicks on it. 51. A syndicator is a business that aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to thirdparty Web sites. 52. It is unusual for companies to use Web pages to analyze customer information. 53. Amazon.com uses Web personalization as a major marketing tool. 54. Accumulated balance digital payment systems allow consumers to make instant online payments to merchants and other individuals based on conventional credit card payments. 55. Digital checks are more expensive than credit cards but faster than paperbased checking. 56. Intranets are useful in all the major functional areas of business. 57. TransCanada Pipeline employees use the company intranet to process timesheets and expense reports. 58. Internet technology has changed value propositions and business models.

47) FALSE 48) TRUE 49) TRUE 50) FALSE 51) TRUE

52) FALSE 53) TRUE 54) FALSE

55) FALSE 56) TRUE 57) TRUE 58) TRUE

59) TRUE

59. In order for electronic commerce to flourish there must be an atmosphere of trust established among buyers, sellers, and other partners involved in online transactions. 60. The unbundling of information from traditional channels has enhanced old business models. 61. Ethical, social, and political issues are closely linked. 62. Ethics are the principles and standards that guide our behavior toward other people. 63. Standards for ensuring the accuracy and reliability of information systems are universally accepted and enforced. 64. The use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals is called cataloging. 65. The Utilitarian Principle states that if an action is not right for everyone to take it is not right for anyone to take. 66. Professionals take on special rights and obligations because of their special claims to knowledge, wisdom, and respect. 67. Privacy is the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent. 68. Claims to privacy are irrelevant to the workplace. 69. The FIP principles require Web sites to disclose their information practices before collecting data. 70. Fair Information Practices says that you may not use copyrighted material in certain situationsfor example, in the creation of new work or, within certain limits, for teaching purposes. 71. A cookie is a small record deposited on your hard disk by a Web site containing information about you and your Web activities. 72. Web sites using "cookies" can directly obtain the names and addresses of their visitors. 73. Spyware is software that comes hidden in free downloadable software and

60) FALSE 61) TRUE 62) TRUE 63) FALSE 64) FALSE 65) FALSE 66) TRUE 67) TRUE

68) FALSE 69) TRUE 70) FALSE

71) TRUE 72) FALSE 73) TRUE

can track your online movements. 74) TRUE 75) TRUE 76) C 74. Most Internet businesses do very little to protect the privacy of individuals who use the Net. 75. Accessing a computer system without authorization is a federal crime. 76. Internet culture is: a. domestic. b. regional. c. global. d. local. 77. What term is used to refer to all of the computer-based information systems used by organizations and their underlying technologies? a. information technology b. network technology c. digital technology d. productivity technology 78. The ultimate end product of the new ways of conducting business electronically is: a. a more complicated tax structure. b. the digital firm. c. more government oversight. d. the extinction of the traditional bureaucracy. 79. The largest component of capital investment for firms in the United States and many industrialized societies is: a. information technology. b. machinery. c. buildings. d. inventory. 80. In 2005, U.S. firms alone will spend nearly $1.8 ________ on IT and telecommunications equipment and software. a. thousand b. trillion c. billion d. million 81. The use of the Internet and digital technology to execute all of the activities in the enterprise is referred to as:

77) A

78) B

79) A

80) B

81) B

a. b. c. d. 82) D

digital business. electronic business. digital processes. electronic commerce.

82. Buying and selling of goods and services electronically with computerized business transactions using the Internet, networks, and other digital technologies is called: a. electronic exchanges. b. electronic communications. c. electronic business. d. electronic commerce. 83. The application of the Internet and related technologies to digitally enable government and public sector agencies' relationships with citizens, businesses, and other arms of government is called: a. e-government. b. e-business. c. e-commerce. d. e-technology. 84. These two companies are close to becoming fully digital firms: a. GKN Aerospace North America and Flextronics. b. Wal-Mart and Sears. c. DaimlerChrysler and General Motors. d. Cisco Systems and Dell Computers. 85. Information is: a. the best form of knowledge. b. the accumulation of raw data. c. data shaped into meaningful form. d. the way we analyze problems. 86. Input: a. allows the analysis of problems faced by the organization. b. is data shaped into meaningful form. c. captures or collects raw data from within the organization or from the external environment. d. converts raw data into meaningful form. 87. Converting raw data into a more meaningful form is called: a. capturing. b. feedback.

83) A

84) D

85) C

86) C

87) D

c. controlling. d. processing. 88) C 88. Sets of operating instructions that direct and control computer processing are called: a. protocols. b. procedures. c. computer programs. d. policies. 89. Creating products and services is a business function of: a. human resources. b. finance and accounting. c. sales and marketing. d. manufacturing and production. 90. Engineers or architects who design products or services are called: a. information specialists. b. service workers. c. data workers. d. knowledge workers. 91. The principal purpose of ________ is to answer routine questions and to track the flow of transactions through the organization. a. knowledge management systems b. strategic-level systems c. management-level systems d. operational-level systems 92. Management-level systems are information systems that support the: a. long-range planning activities of senior management. b. knowledge and data workers in an organization. c. day-to-day processes of production. d. decision-making and administrative activities of middle managers. 93. A relocation control system that reports on the total moving, househunting, and home financing costs for employees in all company divisions is an example of a(n): a. strategic-level system. b. operational-level systems. c. management-level system. d. knowledge management system.

89) D

90) D

91) D

92) D

93) C

94) A

94. ________ systems often answer "what-if" questions. a. Management-level b. Strategic-level c. Operational-level d. Knowledge management 95. Strategic-level systems are information systems that support the: a. knowledge and data workers in an organization. b. long-range planning activities of senior management. c. day-to-day processes of production. d. decision-making and administrative activities of middle managers. 96. TPSs are the basic business systems that serve which level of the organization? a. knowledge management systems b. operational-level systems c. strategic-level systems d. management-level systems 97. Managers need ________ to monitor the status of internal operations and the firm's relations with the external environment. a. knowledge systems b. high-volume model data c. office systems d. transaction processing systems 98. These systems are especially suited to situations in which the procedure for arriving at a solution may not be fully predefined in advance: a. management information systems. b. decision-support systems. c. transaction processing systems. d. knowledge management systems. 99. These systems are designed to summarize and report on the company's basic operations: a. executive information systems. b. management information systems. c. transaction processing systems. d. decision-support systems. 100. Decision-support systems are often referred to as: a. business information systems. b. business model systems.

95) B

96) B

97) D

98) B

99) B

100) D

c. business support systems. d. business intelligence systems. 101) C 101. These systems often deliver information to senior executives through a portal, which uses a Web interface to present integrated personalized business content: a. transaction processing systems. b. decision-support systems. c. executive support systems. d. management information systems. 102. Promoting the organization's products or services is a function of: a. manufacturing/production systems. b. marketing systems. c. human resources systems. d. finance/accounting systems. 103. Identifying customers for the firm's products and preparing five-year forecasts are examples of: a. sales and marketing information systems. b. manufacturing and production information systems. c. human resources information systems. d. enterprise application information systems. 104. Budgeting and cost accounting are functions of: a. finance/accounting systems. b. sales marketing systems. c. manufacturing/production systems. d. decision support systems. 105. ________ is the process that integrates supplier, manufacturer, distributor, and customer logistics processes. a. Supply chain management b. Enterprise planning c. Reverse logistics d. Collaborative distribution 106. The interaction between information technology and organizations is very complex and is influenced by a great many mediating factors, including the organization structure, business processes, politics, culture, management decisions and: a. the availability of trained employees. b. the cash flow within the company.

102) B

103) A

104) A

105) A

106) C

c. the surrounding environment. d. the economic basis of the company. 107) B 107. Collections of routines for producing goods and services are referred to as: a. work with routine tasks. b. business processes. c. mediating factors. d. standard reporting procedures. 108. Fundamental assumptions about what products the organization should produce, how it should produce them, where, and for whom is known as: a. organizational culture. b. motivational factors. c. business processes. d. standard operating procedures. 109. According to Mintzberg, a ________ is an example of a professional bureaucracy structure. a. small start-up business b. midsize manufacturing firm c. consulting firm d. law firm or school system 110. These information specialists constitute the principal liaisons between the information systems groups and the rest of the organization: a. end users. b. programmers. c. Web-page developers. d. systems analysts. 111. The role of ________ is a senior management position that oversees the use of information technology in the firm. a. CIO b. CEO c. CFO d. CTO 112. Information systems managers are: a. in change of the information systems function in the organization. b. leaders of the various specialists in the information system department. c. highly-trained technical specialists who write computer software instructions.

108) A

109) D

110) D

111) A

112) B

d. specialists who translate business problems and requirements into information requirements and systems. 113) C 113. ________ are representatives of departments outside of the information systems group for whom applications are developed. a. Analysts b. IS managers c. End users d. Programmers 114. Although ________ theories try to explain how large numbers of firms act in the marketplace, ___________ theories are more useful in describing the mechanics of actual firms. a. behavioral; transaction b. economic; agency c. economic; behavioral d. agency; behavioral 115. ________ organizations use networks to link people, assets, and ideas. Work is no longer tied to geographic location. a. Manufacturing b. Hierarchical c. Virtual d. Vertical 116. For the manager, no technological support systems exist for the managerial roles of: a. entrepreneur or nerve center. b. liaison or negotiator. c. figurehead or disturbance handler. d. spokesperson or resource allocator. 117. At the business level the most common analytical tool for identifying opportunities for strategic systems is: a. the value web. b. value chain analysis. c. ESS. d. DSS. 118. A ________ is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. a. portal b. business link

114) C

115) C

116) C

117) B

118) D

c. primary activity d. value web 119) A 119. Which of the following is most likely to raise switching costs? a. stockless inventory method b. vendor-supported supply method c. just-in-time supply method d. traditional delivery method 120. This traditional model assumes a relatively static industry environment, relatively clear-cut industry boundaries, and a relatively stable set of suppliers, substitutes, and customers, with a focus on industry players in a market environment: a. Porter's competitive forces model. b. Porter's generic strategy model. c. Porter's model of diminishing returns. d. Porter's value chain model. 121. Internet technology is providing the infrastructure for electronic business because: a. it is less complex than traditional infrastructures. b. the emergence of the digital firm has created so many new markets. c. it is easier to understand. d. its technology and technology standards can be used to make information flow seamlessly throughout the organization. 122. The driving force behind the explosion of electronic business and the emergence of the digital firm is: a. the emergence of a worldwide global economy, which cannot be affected by politics. b. the low-cost connectivity and universal standards provided by Internet technology. c. new business models. d. TCP/IP. 123. An abstraction of what an enterprise is and how the enterprise delivers a product or service, showing how the enterprise creates wealth best describes: a. critical success factor. b. business model. c. strategic plan. d. information systems plan. 124. The time and money spent locating a suitable product and determining the best price for that product best describes:

120) A

121) D

122) B

123) B

124) B

a. b. c. d. 125) D

research and development costs. search costs. alternative costs. location costs.

125. A measurement of how many people a business can connect with and how many products it can offer those people best defines: a. micromarketing. b. intensity. c. richness. d. reach. 126. Online communities: a. allow members to post their own Web pages. b. provide a place where people of like interests can exchange ideas regardless of their location. c. are providing the foundations for new businesses. d. All of the above 127. Which of the following Internet business models does Amazon.com use? a. transaction broker b. information broker c. virtual storefront d. online service provider 128. Which of the following businesses utilizes the content provider Internet business model? a. CNN.com b. eBay.com c. Amazon.com d. Motocross.com 129. Which of the following is an ad that opens automatically and does not disappear until the user clicks on it? a. controlled display b. banner ad c. pop-up ad d. controlled ad 130. The online marketplace Internet business model: a. sells physical products directly to consumers or individual businesses. b. creates revenue by providing digital content over the Web.

126) D

127) C

128) A

129) C

130) C

c. provides a digital environment where buyers and sellers can establish prices for products. d. saves users money and time by processing online sales dealings. 131) A 131. Pure-play business models are businesses that: a. did not have an earlier existing bricks-and-mortar business before they went to the Internet. b. are an example of business-to-business electronic commerce. c. are extensions of traditional bricks-and-mortar businesses. d. do not sell a physical product. 132. eBay is an example of: a. business-to-consumer electronic commerce. b. a click-and-mortar business. c. consumer-to-consumer electronic commerce. d. an online exchange 133. Thanks to the Web, ________ have become powerful business tools for testing and improving products and services. a. pop-up advertisements b. collaborative competitors c. customers d. sales personnel 134. A credit card-size plastic card that stores digital information and that can be used for electronic payments in place of cash best describes: a. digital cash. b. microcard. c. smart card. d. stored value payment system. 135. An example of the use of intranets in human resources is: a. allowing employees to manage their own health and pension benefits accounts. b. the provision of data on quality measurements, such as defects and rejects, as well as maintenance and training schedules. c. the ability to monitor un-invoiced income or outstanding debt each day. d. the use of intranet collaboration tools for contact management, discussion forums, document management, and calendars. 136. New technologies can be used to a. achieve social progress. b. commit crimes.

132) C

133) C

134) C

135) A

136) D

c. threaten social values. d. all of the above. 137) A 137. Advances in data storage techniques and rapidly declining storage costs have: a. made routine violations of privacy cheap and effective. b. made universal access possible. c. doubled every 18 months. d. doubled humanity's knowledge. 138. Immanuel Kant's Categorical Imperative states that: a. one can put values in rank order and understand the consequences of various courses of action. b. if an action cannot be taken repeatedly, then it is not right to be taken at any time. c. if an action is not right for everyone to take, it is not right for anyone to take. d. one should take the action that produces the least harm or incurs the least cost. 139. The ethical "no free lunch" rule states that: a. if an action cannot be taken repeatedly, then it is not right to be taken at any time. b. everything is owned by someone else, and that the creator wants compensation for this work. c. one can put values in rank order and understand the consequences of various courses of action. d. one should take the action that produces the least harm or incurs the least cost. 140. Which U.S. act restricts what information the federal government can collect and what they can do with it? a. Freedom of Information Act b. Bork Bill c. Communications Assistance for Law Enforcement Act d. Privacy Act 141. European privacy protection is ________ than in the United States. a. much more stringent b. less liable to laws c. less far-reaching d. much less stringent 142. When a cookie is created during a Web site visit, it is stored:

138) C

139) B

140) D

141) A

142) B

a. b. c. d. 143) A

on the ISP's computer. on the visitor's computer. on the Web site computer. in a Web directory.

143. The Online Privacy Alliance: a. encourages self-regulation to develop a set of privacy guidelines for its members. b. protects user privacy during interactions with Web sites. c. discourages the use of online seals. d. lobbies for better privacy legislation for the consumer. 144. P3P stands for: a. Preferences for Personal Privacy b. Platform for Privacy Preferences. c. Privacy for Personal Protection. d. Protection of Personal Privacy. 145. Intellectual property can best be described as: a. software that is copied and distributed without permission. b. the Fair Use Doctrine that allows for the use of copyrighted materials. c. intangible creative work that is embodied in physical form. d. the legal protection afforded an expression of an idea. 146. Copyright can best be described as: a. the Fair Use Doctrine that allows for the use of copyrighted materials. b. software that is copied and distributed without permission. c. the legal protection afforded to intellectual property. d. intangible creative work that is embodied in physical form. 147. Which of the following adjusts copyright laws to the Internet age by making it illegal to make, distribute, or use devices that circumvent technology-based protections of copyrighted materials? a. Digital Millennium Copyright Act b. Electronic Communications Privacy Act c. Freedom of Information Act d. Privacy Act 148. The "do anything anywhere" computing environment can: a. create economies of efficiency. b. make work environments much more pleasant. c. centralize power at corporate headquarters.

144) B

145) C

146) C

147) A

148) D

d. blur the traditional boundaries between work and family time. 149) C 149. Computer abuse is: a. illegal and unethical. b. most common in the business environment. c. sometimes legal but always unethical. d. mostly a personal problem. 150. The U.S. CAN-SPAM Act of 2003: a. requires spammers to identify themselves. b. makes spamming illegal. c. does not override state anti-spamming laws. d. has dramatically cut down spamming

150) A