Chap01 (Answers) PDF

Chapter 1
The Information Age in Which You Live

True/False Questions
12
F 1. Knowledge workers work with and produce information as a product.

Answer: True Level: Easy Page: 26
F 4. Online banking is growing in popularity.

F 6. Information may be information for one person but data for another.
Answer: True Level: Medium Page: 28
F 7. Business intelligence refers solely to information about your competitors.

Answer: False Level: Hard Page: 28
F 8. M-commerce relies on wireless technology.

Answer: True Level: Medium Page: 40
F 9. Information is raw facts that describe a particular phenomenon.

Answer: False Level: Easy Page: 28
F 10. Information is simply data that have a particular meaning within a specific context.
2. Ten years ago, knowledge workers outnumbered all other workers by a four-to-one
margin.
3. Management information systems deals with the planning for, development, management,
and use of knowledge workers to help people perform all tasks related to information
processing and management.
Answer: False Level: Medium Page: 26
5. The financial services industry will probably never adopt information technology for
customer service.
Test Bank, Chapter 1
F 11. An executive information system (EIS) is a highly interactive IT system that allows you to
first view highly summarized information and then choose how you would like to see
greater detail, which may alert you to potential problems or opportunities.
F 12. Information technology is any computer-based tool that people use to work with
information and support the information and information-processing needs of an
organization.
F 13. Copying software so that your neighbor can install it on their machine is completely legal
and ethical, unless you charge a fee for the software.
F 14. Hardware consists of the instructions executed by the computer to complete a specific task.
F 15. Examples of input devices include a keyboard, mouse, or speaker.

F 16. Software such as Microsoft Word, Excel, PowerPoint, or Access are all considered
examples of utility software.
F 17. The concept of shared information suggests putting all of the organization's information
into one or more central locations in order to enhance security and protect the information
by only allowing access to a limited number of authorized people.
F 18. Mobile computing refers to your ability to transport mobile equipment, such as laptops or
PDAs, to any location.
F 19. Transaction processing systems are simply information systems that process transactions.
F 20. Supply chain management involves tracking office supply usage.

Haag/Cummings, Information Systems Essentials
13
14
F 21. A knowledge management system is used to train new employee.

F 22. OLAP refers to the new ONline Application Program utilized by many companies to
automatically process job applications.
F 23. An application service provider is an e-commerce software distributor that installs

software directly from the internet to the customers' hard drive.
F 24. Sharing information with your coworkers through an information system can create a
competitive advantage.
F 25. Competitive advantages are permanent.

F 26. Losses from identity theft were about $300 billion in the United States in 2003.
F 27. Random Access Memory is a temporary holding space for data and applications.
F 28. The sole focus of MIS is technology.

F 29. Telecommuting is the use of communications technologies to work in a place other than a
central location.
F 30. The time dimension of information has only one aspect - having access to information
when you need it.
F 31. Personal dimensions of information include information flows and information

granularity.
F 32. Information in an organization flows in four basic ways including up, down, inward, and
outward.
F 33. Tactical management provides an organization with overall direction and guidance.
F 34. Strategic management is the second level in the traditional organization pyramid.
F 35. The horizontal flow of information consists of information that is communicated to

customers, suppliers, distributors, and other partners for the purpose of doing business.
F 36. Objective information attempts to describe something that is unknown.

F 37. A storage device is a tool you use to send information to and receive it from another
business or location.
F 38. Online transaction processing is the manipulation of information to support decision

making.
F 39. Electronic data interchange automates the flow of information between organizations to
support the planning, design, development, production, and delivery of products and
services.
Multiple Choice Questions

40. Which of the following majors are preparing to enter the business world as knowledge workers?
A) Accounting
B) Information technology
C) Human resource management
D) All of the above
Answer: D Level: Easy Page: 26
15
41. What is power in the information age?

A) Data
B) Knowledge
C) Computer
D) None of the above
Answer: B Level: Easy Page: 26
42. A computer-based tool that people use to work with information and support the information and
information-processing needs of an organization is:.
A) Management Information Systems
B) Computer Security
C) Collaboration System
D) Information Technology
Answer: D Level: Medium Page: 26
43. Which of the following refers to using communications technologies to work in a location other
than a central location (such as an office building)?
A) Wireless networks
B) Business Intelligence
C) Telecommuting
D) Remote desktop
Answer: C Level: Medium Page: 27
44. Which of the following are additional risks faced by a business when workers telecommute?
A) Internet Usage
B) Wireless Communications
C) Virus Attacks
D) All of the above
Answer: D Level: Hard Page: 27
45. Management information systems deals with the coordination and use of three very important
organizational resources including:
A) Information, Internet, and information-literate knowledge workers
B) Internet, information-literate knowledge workers, and people
C) Information, information technology, and people
D) Information, information technology, and Internet
46. Which term refers to the planning for, development, management, and use of information
technology tools to help people perform all tasks related to information processing and
management?
A) Management information systems
B) Information age
C) Customer-integrated systems
D) Online analytical processing systems
Answer: A Level: Medium Page: 26
16
47. Which of the following is not a reason that information is important?

A) Information is one of the three key components of MIS
B) Knowledge can be a source of income
C) We are in the information age, a time when knowledge is power
D) Knowledge comes from having timely access to information and knowing what to do with it
Answer: B Level: Hard Page: 28
48. Business Intelligence includes which of the following?

A) Knowledge about your customers
B) Knowledge about your business partners
C) Knowledge about competitive environment
D) All of the above
49. What are people called who use communications technologies to work in a place other than a
central location?
A) Telecommuters
B) Virtual workplace workers
C) Artificial intelligence workers
D) Management information system workers
Answer: A Level: Hard Page: 27
50. Which term describes electronic commerce conducted over a wireless device such as a cell phone
or PDA?
A) CIS
B) EIS
C) Now economy
D) M-commerce
51. Which of the following do customers, businesses, suppliers, distributors, and manufacturers
operate without regard to in a global economy?
A) Physical and technical boundaries
B) Physical and geographical boundaries
C) Technical and geographical boundaries
52. What are raw facts that describe a particular phenomenon?

A) Data
B) Information
C) Dimension
Answer: A Level: Easy Page: 28
17
53. What is information?

A) Data that has a particular meaning within a specific context
B) Information with a particular meaning within a specific context
C) Data that has no particular meaning
54. Which of the following is included in the three personal dimensions of information?
A) Time
B) Location
C) Form
D) All of the above
55. The time dimension of information includes two aspects: having access to information when you
need it and ?
A) Having access to information at the right moment in time
B) Having information that describes the appropriate time period
C) Having information about the most recent time period
Answer: B Level: Medium Page: 28
56. Which dimension of information describes the price of a stock in order to make a trade?
A) Time dimension
B) Location dimension
C) Form dimension
57. Which dimension of information describes being able to access information from a hotel room?
A) Time dimension
C) Form dimension
58. Which dimension of information requires that information be free of errors?

A) Time dimension
C) Form dimension
Answer: C Level: Easy Page: 30
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59. Which of the following does the form dimension of information deal with?
A) Having information in a form that is usable
B) Having information that is free of errors
C) Having information in a form that is understandable
D) All of the above
60. Information in an organization flows in all of the following directions, except:

A) Up
B) Down
C) Horizontal
D) Backwards
61. Most people view a traditional organization as a pyramid with four levels and many sides. Which
of the following is not a level in the pyramid?
A) Strategic management
B) Tactical management
C) Organizational management
D) Nonmanagment employees
Answer: C Level: Hard Page: 30
62. Which form of management provides an organization with overall direction and guidance?
A) Strategic
B) Tactical
C) Organizational
D) Realistic
63. Which layer in the traditional organization pyramid manages and directs the day-to-day operations
and implementations of the goals and strategies?
A) Strategic management
B) Tactical management
C) Operational management
D) Nonmanagement employees
64. Which of the following represents the flow of information that describes the current state of the
organization based on its daily transactions?
A) Upward flow
B) Downward flow
C) Horizontal flow
D) Outward flow
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65. Which of the following represents the flow of information between functional business units and
work teams?
A) Upward flow
B) Downward flow
C) Horizontal flow
D) Outward flow
66. What does internal information describe?

A) Specific operational aspects of the organization
B) The environment surrounding the organization
C) Something that is known
D) Something that is unknown
67. What does objective information describe?

A) Specific operational aspects of the organization
B) The environment surrounding the organization
C) Something that is known
D) Something that is unknown
68. All of the following statements describe an information-literate knowledge worker, except:
A) Can define what information they need
B) Knows how and where to obtain that information
C) Understands information before they even receive it
D) Acts appropriately based on the information
Answer: C Level: Hard Page: 33
69. Which device permits the user to enter information and commands?
A) Input
B) Output
C) Storage
D) Telecommunications
70. Which device is a tool you use to send information to and receive it from another person or
location?
A) Input device
B) Output device
C) Storage device
D) Telecommunications device
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71. Which type of software provides additional functionality to an operating system?

A) System
B) Application
C) Operating system
D) Utility
72. Decentralized computing occurs when computing power is distributed to functional business areas
and knowledge worker desktops. Decentralized computing is made possible by
A) Inexpensive knowledge workers
B) Inexpensive personal computer systems
C) Decreasing network speeds
D) Increasing costs of electricity
73. Which of the following is an example of a transaction processing system?

A) Word processing system
B) Payroll system
C) Spreadsheet system
D) All of the above
74. Which of the following manipulates information to support decision making?

A) Customer-integrated system
B) Online transaction processing
C) Transaction processing
D) Online analytical processing
75. Which system is used as a highly interactive IT system that allows you to first view highly
summarized information and then choose how you would like to see greater detail?
A) Customer-integrated system
B) Online transaction processing system
C) Management information system
D) Executive information system
76. Which of the following helps to create business partnerships and alliances?
A) Neural network
B) Online transaction processing system
C) Collaboration system
D) Electronic data interchange
21
77. Which system is designed specifically to improve the performance of teams by supporting the
sharing and flow of information?
A) Online transaction processing system
B) Collaboration system
C) Interorganizational system
D) Electronic data interchange
78. As a technology-literate and information-literate knowledge worker you will work with
information in which of the following ways?
A) To gain a competitive advantage
B) To promote social responsibility
C) To promote ethical responsibility
D) All of the above
79. Ethics are the principals and standards that guide our behavior towards other:
A) Suppliers
B) Businesses
C) Customers
D) People
80. What are the basic categories of technology?

A) Hardware and input devices
B) Software and storage devices
C) Storage devices and hardware
D) Hardware and software
81. Which of the following is not a hardware device?

A) Keyboard
B) Monitor
C) MS Word
D) Central processing unit
82. What are the two main types of software?

A) Input and output
B) Application and system
C) CPU and RAM
D) Application and input
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83. Which of the following items is the primary tool used by organizations to support shared
information?
A) PDA
B) Database
C) Application
84. Which term describe the manipulation of information to support decision making?
A) OLAP
B) IOS
C) OLTP
D) EDI
85. What two things make up the brains of a computer?

A) IOS and EDI
B) Hardware and software
C) Input and output
D) CPU and RAM
86. Which device is used to store data for later use?

A) Input device
B) Output device
C) CPU
D) Storage device
87. Which software controls application software and manages the interaction of various hardware
devices?
A) Application software
B) Utility software
C) Operating system software
D) System Software
88. Mobile computing refers to your ability to:

A) transport computer equipment such as laptops or PDAs to the necessary location
B) wirelessly connect and use centrally located information and/or application software
C) transport data from location to location using portable media such as flash drives or diskette
D) none of the above
23
89. A self-checkout line at a grocery store is an example of which type of information system?
A) Transaction Processing System
B) Executive Information System
C) Knowledge Management System
D) Customer Self-Service System
90. Supply chain management tracks

A) inventory between stores and warehouses owned by the same company
B) information between stores and warehouses owned by the same company
C) inventory and information among business processes and across companies
D) information and inventory across companies
91. A supply chain management system is an information system designed to

A) manually track inventory levels
B) automatically track information transfer
C) automatically track information and inventory across business processes and companies
D) automatically track transactions across different companies
92. Which type of information system is used to capture, organize, and disseminate knowledge?
A) executive information system
B) knowledge management system
C) database
D) supply chain management system
93. Artificial intelligence refers to which of the following?

A) creating machines that think for themselves
B) creating machines that imitate human thinking and behavior
C) creating machines that can solve complex problems and carry out tasks for people
D) creating machines to replace people
94. Organizations use genetic algorithms for which of the following situations?
A) there are millions of possible solutions
B) there is no appropriate problem-solving algorithm to find the perfect solution.
C) all of the above
D) none of the above
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95. Which of the following provides software applications over the internet to customers so that the
software does not need to reside on the customers' hard drives?
A) telecommunications software
B) network software sharing
C) distributed computing
D) application service provider
96. Which type of software is often found hidden inside other, free software?
A) expensive software
B) stolen software
C) spyware
D) application software
97. Software that tracks your online movements, mines your PC for information, or uses your
computer's CPU and memory for tasks you did not authorize is called:
A) spyware
B) applications software
C) operating system software
D) word processing software
98. What occurs when someone pretends to be you so that they can use your credit record?
A) credit theft
B) identity theft
C) impersonation
D) software piracy
99. What is the most valuable resource in any organization?

A) Technology
B) Information
C) People
D) Knowledge workers
100. Which term describes the physical devices that make up a computer?
A) Hardware
B) Software
C) Storage
D) All of the above
25
101. Which of the following is considered information technology?

A) Cell phone
B) PDA
C) Computer
D) All of the above
102. All of the following are key resources of management information systems, except:
A) People
B) Internet
C) Information
D) Information technology
Fill in the Blank Questions

103. A(n) ______________ is an internal organizational Internet guarded against external access by a
firewall.
Answer: Intranet Level: Easy Page: 29
104. ______________ are the single most important resource in any organization.
Answer: People Level: Easy Page: 32
105. Knowledge workers work with and produce ______________ as a product.

Answer: Information Level: Easy Page: 26
106. A(n) ______________ is a tool you use to send information to and receive it from another person or
computer in a network.
Answer: Telecommunication device Level: Easy Page: 38
107. ______________ is the use of communications technologies to work in a place other than a central
location.
Answer: Telecommuting Level: Easy Page: 27
108. ______________ are raw facts that describe a particular phenomenon.

Answer: Data Level: Easy Page: 28
109. ______________ is simply data that have a particular meaning within a specific context.
Answer: Information Level: Easy Page: 28
26
110. Having information that describes the ______________ you are considering is one aspect of the
time dimension of information.
Answer: Time period Level: Easy Page: 28
111. The ______________ dimension of information deals with having access to information no matter
where you are.
Answer: Location Level: Easy Page: 29
112. The ______________ dimensions of information include information flows, what information
describes, information granularity, and how information is used.
Answer: Organizational Level: Easy Page: 30
113. Information in an organization flows in four basic direction including up, down, ______________
and ______________.
Answer: Horizontally and Inward/Outward Level: Easy Page: 30
114. ______________ management provides an organization with overall direction and guidance.
Answer: Strategic Level: Easy Page: 30
115. ______________ management develops the goals and strategies outlined by strategic management.
Answer: Tactical Level: Easy Page: 30
116. The ______________ flow of information consists of information that is communicated to

customers, suppliers, distributors, and other partners for the purpose of doing business.
Answer: Inward/Outward Level: Easy Page: 30
117. The ______________ flow of information consists of information that describes the current state of
the organization based on its daily transactions.
Answer: Upward Level: Easy Page: 30
118. ______________ information describes the environment surrounding the organization.

Answer: External Level: Easy Page: 31
119. ______________ computing is an environment in which an organization distributes computing

power and locates it in functional business areas as well as on the desktops of knowledge workers.
Answer: Decentralized Level: Easy Page: 39
27
120. A(n) ______________ is an extension of a TPS that places technology in the hands of an
organization's customers and allows them to process their own transactions.
Answer: Customer self-service system Level: Easy Page: 40
121. ______________ is the manipulation of information to support decision making.

Answer: Online analytical processing Level: Easy Page: 44
122. A(n) ______________ is a system that is designed specifically to improve the performance of
teams by supporting the sharing and flow of information.
Answer: Collaboration system Level: Easy Page: 45
123. ______________ is the set of instructions that your hardware executes to carry out a specific task.
Answer: Software Level: Easy Page: 37
124. A(n) ______________ is a tool you use to see, hear, or otherwise accept the results of your
information-processing requests.
Answer: Output device Level: Easy Page: 38
125. A(n) ______________ person knows how and when to apply technology, while an
______________ person understands what information is needed and how to obtain that
information.
Answer: Technology-literate, Information-literate Level: Medium Page: 33
126. ______________ is the hardware that interprets and executes software.

Answer: CPU Level: Easy Page: 38
127. A(n) ______________ automatically tracks inventory and information among business processes
and across companies.
Answer: Supply chain management system Level: Easy Page: 42
128. ______________ refers to the direct computer-to-computer transfer of information contained in

standard business documents in a standard format.
Answer: Electronic data interchange Level: Easy Page: 43
129. ______________ gathers, processes, and updates information.

Answer: Online transaction processing Level: Medium Page: 44
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130. The field of study concerned with creating a machine capable of imitating human thought processes
and behavior is called ______________.
Answer: Artificial Intelligence Level: Medium Page: 45
131. A(n) ______________ is an artificial intelligence system that mimics the evolutionary,
survival-of-the-fittest process to generate increasingly better solutions to a problem.
Answer: Genetic algorithm Level: Medium Page: 46
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Chapter 1

The Information Age in Which You Live

F 1. Knowledge workers work with and produce information as a product.

F 4. Online banking is growing in popularity.

F 7. Business intelligence refers solely to information about your competitors.

F 8. M-commerce relies on wireless technology.

F 9. Information is raw facts that describe a particular phenomenon.

Test Bank, Chapter 1

F 15. Examples of input devices include a keyboard, mouse, or speaker.

F 20. Supply chain management involves tracking office supply usage.

Haag/Cummings, Information Systems Essentials

F 21. A knowledge management system is used to train new employee.

F 23. An application service provider is an e-commerce software distributor that installs

F 25. Competitive advantages are permanent.

F 28. The sole focus of MIS is technology.

F 31. Personal dimensions of information include information flows and information

Test Bank, Chapter 1

F 35. The horizontal flow of information consists of information that is communicated to

F 36. Objective information attempts to describe something that is unknown.

F 38. Online transaction processing is the manipulation of information to support decision

Multiple Choice Questions

Haag/Cummings, Information Systems Essentials

41. What is power in the information age?

Test Bank, Chapter 1

47. Which of the following is not a reason that information is important?

48. Business Intelligence includes which of the following?

52. What are raw facts that describe a particular phenomenon?

Haag/Cummings, Information Systems Essentials

53. What is information?

58. Which dimension of information requires that information be free of errors?

Test Bank, Chapter 1

60. Information in an organization flows in all of the following directions, except:

Haag/Cummings, Information Systems Essentials

66. What does internal information describe?

67. What does objective information describe?

Test Bank, Chapter 1

71. Which type of software provides additional functionality to an operating system?

73. Which of the following is an example of a transaction processing system?

74. Which of the following manipulates information to support decision making?

Haag/Cummings, Information Systems Essentials

80. What are the basic categories of technology?

81. Which of the following is not a hardware device?

82. What are the two main types of software?

Test Bank, Chapter 1

85. What two things make up the brains of a computer?

86. Which device is used to store data for later use?

88. Mobile computing refers to your ability to:

Haag/Cummings, Information Systems Essentials

90. Supply chain management tracks

91. A supply chain management system is an information system designed to

93. Artificial intelligence refers to which of the following?

Test Bank, Chapter 1

99. What is the most valuable resource in any organization?

Haag/Cummings, Information Systems Essentials

101. Which of the following is considered information technology?

Fill in the Blank Questions

105. Knowledge workers work with and produce ______________ as a product.

108. ______________ are raw facts that describe a particular phenomenon.

Test Bank, Chapter 1

116. The ______________ flow of information consists of information that is communicated to

118. ______________ information describes the environment surrounding the organization.

119. ______________ computing is an environment in which an organization distributes computing