Test Bank for Processes, Systems, and Information An Introduction to MIS, 4th Edition David Kroenke, by ACADEMIAMILL

TEST BANK for Processes, Systems, and Information An Introduction to MIS, 4th Test Bank For Processes, Systems, and Information An Introduction to MIS, 4th edition David M. Edition Kroenke, Earl David H. McKinney Kroenke, Earl McKinney Chapter 1-12

Chapter 1

The Importance of MIS

1) As a result of Moore's Law, the ratio of price to performance of computers has increased dramatically over the years. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 2) The increasing growth of technologies such as social media is an example of how Moore's Law can impact the business environment. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 3) Because of Moore's Law, the cost of data processing, communications, and storage is essentially zero. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 4) Future business professionals need to be able to access, evaluate, and apply emerging information technology to business. Answer: TRUE Difficulty: Easy AACSB: Information Technology; Reflective Thinking Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 5) Moore's Law helps explain why any routine skill will be outsourced to the lowest bidder. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? 1 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 6) The importance of nonroutine cognitive skills will decrease in the future. Answer: FALSE Difficulty: Easy AACSB: Information Technology; Reflective Thinking Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Explain how IS can enhance systems of collaboration and teamwork 7) Critical feedback undermines collaboration. Answer: FALSE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Explain how IS can enhance systems of collaboration and teamwork 8) Effective collaboration is all about being cordial to one's team members. Answer: FALSE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Explain how IS can enhance systems of collaboration and teamwork 9) Experimentation increases the fear of failure. Answer: FALSE Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 10) Information systems and computer technology provide job and wage benefits beyond just IS professionals. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in employment 11) MIS is defined as the management and use of processes, information systems, and information to help organizations achieve their strategies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes

12) Focusing on business processes is key to improving organizational effectiveness and efficiency. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 13) An information system is a collection of components, including a computer, that stores and retrieves data and produces information. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 14) A process may use multiple information systems, and an information system may touch many different processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes 15) A process is a meaningful insight that helps employees do their jobs. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 16) Like business processes, information systems need to be monitored to ensure that they continue to meet their requirements. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 17) Throughout your career, in whatever field you choose, you will likely take an active role with the management of processes, information systems, and information. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes 3 Copyright © 2022 Pearson Education, Inc.

18) Processes, systems, and information need to be created by a company to avoid "falling behind the technology curve." Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes 19) Business processes can influence the design of information systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 20) Competitive strategy determines the structure, features, and functions of every information system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 21) Organizational strategy begins with an assessment of the fundamental characteristics and structure of an industry. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 22) Porter's five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 23) A substitute performs different functions as an industry's product by another means. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes

24) Low customer switching costs are a threat to new entrants in an established industry. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 25) Competition from rivals is particularly high when industry growth is slow and when exit barriers are high. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 26) The strength of the bargaining power of suppliers and customers depends on the switching costs and product differentiation. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Explain how IS can be used to gain and sustain competitive advantage 27) The cost or differentiation strategy must be employed across an entire industry and cannot be tailored to specific industry segments. Answer: FALSE Difficulty: Moderate AACSB: Application of Knowledge Chapter LO: 5: What is competitive strategy? Course LO: Explain how IS can be used to gain and sustain competitive advantage 28) It is wrong for a company to try more than one competitive strategy at a time. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Explain how IS can be used to gain and sustain competitive advantage 29) A company that states a strategy of low cost leadership and a differentiation on customer service simultaneously is most likely to achieve a strong competitive advantage. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes

30) All processes, information systems, and information must be constructed to facilitate an organization's competitive strategy. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Explain how IS can be used to gain and sustain competitive advantage 31) Cost is what it takes to produce a product or service. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 32) According to Porter, only one company in an industry can be the cost leader. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 33) If a firm's competitive strategy is to be a cost leader, then business activities need to be developed to provide essential functions at the lowest possible cost. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Explain how IS can be used to gain and sustain competitive advantage 34) Porter's five forces model is also referred to as the value chain model. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 35) A business that selects a differentiation strategy would necessarily structure itself around least-cost activities. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Explain how IS can be used to gain and sustain competitive advantage

36) A business with a differentiation strategy will add cost to an activity as long as the activity has a positive margin. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Explain how IS can be used to gain and sustain competitive advantage 37) The difference between the value that an activity generates and the cost of the activity is called value-addition. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Explain how IS can be used to gain and sustain competitive advantage 38) Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 39) In the value chain, the primary activity of sales and marketing is the collection, storage, and physical distribution of products to buyers. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 40) In the value chain, the primary activity of customer service is to assist customers in their use of the product, and thus maintain and enhance the product's value. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 41) Inbound logistics involves receiving, storing, and disseminating inputs to products. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 7 Copyright © 2022 Pearson Education, Inc.

42) Each stage of the value chain accumulates costs and adds value to the product. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 43) The support activities in the generic value chain contribute directly to the production, sale, and service of the product. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 44) Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 45) Supporting functions of the value chain add value indirectly, and hence do not incur costs. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 46) It is difficult to calculate the margin of supporting activities because the specific value added by supporting activities is difficult to know. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 47) Manufacturing systems use linkages to reduce inventory costs. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes

48) Value chains and linkages have led to the creation of integrated, cross-departmental business systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 49) The central idea of a business process design is that organizations should automate or improve existing functional systems. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 50) Business processes determine the scope and requirements of each organization's information systems. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 51) Information system managers should support strategy, but it should never influence strategy. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 52) A company's strategy should stay the same and never change. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes

53) Which of the following statements best describes Moore's Law? A) A computer processor becomes obsolete within 18 months. B) The speed of a computer processor doubles every 18 months. C) The number of transistors per square inch on an integrated chip doubles every 18 months. D) The total number of transistors produced in the world doubles every 18 months. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 54) Which of the following is a misinterpretation of Moore's Law? A) A computer processor becomes obsolete within 18 months. B) The total number of transistors produced in the world doubles every 18 months. C) The number of transistors per square inch on an integrated chip doubles every 18 months. D) The speed of a computer doubles every 18 months. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 55) Which of the following results is attributed to Moore's Law? A) The price of software has come down drastically. B) The ratio of price to performance of computers has fallen drastically. C) The risk of technology becoming obsolete has decreased. D) Piracy of software has increased. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 56) Because of Moore's Law, the cost of data processing, communications, and storage ________. A) has increased exponentially B) has remained unchanged C) is witnessing an upward trend D) is essentially zero Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes

57) Which of the following trends driven by the Moore's Law is changing the way businesses use information technology (IT)? A) the rapid growth of Internet accessibility B) the decrease in data produced each year C) the decrease in usage of mobile devices D) the frequent increase in communication costs Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 58) Which of the following is a nonroutine cognitive skill that would provide one with job security? A) abstract reasoning B) tax accounting C) communication skills D) computer knowledge Answer: A Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 59) ________ is the ability to make and manipulate models. A) Abstract reasoning B) Systems thinking C) Collaboration D) Experimentation Answer: A Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 60) Miguel proposes a new design idea for an automobile to his boss. He illustrates the model through a presentation, describes how the firm could profit from it, and how it meets customers' needs. Which of Reich's four critical skills is Miguel exhibiting? A) abstract reasoning B) systems thinking C) collaboration D) process orientation Answer: A Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 11 Copyright © 2022 Pearson Education, Inc.

61) ________ is the ability to model the components of a system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed. A) Abstract reasoning B) Systems collaboration C) Systems thinking D) Experimentation Answer: C Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 62) Which of the following is a necessary condition for effective collaboration? A) the ability to be cordial at all times B) the ability to manipulate models C) the ability to give and receive critical feedback D) the ability to dominate group members Answer: C Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Explain how IS can enhance systems of collaboration and teamwork 63) Ellen is the marketing manager of Qtopia Inc. She often develops ideas and plans with the help of her colleagues, and provides and receives critical feedback. According to Reich's four critical skills, Ellen is displaying ________ skills. A) collaboration B) systems thinking C) abstract reasoning D) experimentation Answer: A Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Explain how IS can enhance systems of collaboration and teamwork 64) ________ is defined as making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with the resources one has. A) Collaboration B) Systems thinking C) Abstract reasoning D) Experimentation Answer: D 12 Copyright © 2022 Pearson Education, Inc.

Difficulty: Easy AACSB: Information Technology; Application of Knowledge Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 65) As a candidate at a job interview for the position of video and graphic designer, Steve is asked to create a design using Corel VideoStudio X3, a relatively new software that he has not learned yet. Which of the following skills is the interviewer trying to test? A) systems thinking B) abstract reasoning C) collaboration D) ability to experiment Answer: D Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 66) Which of the following is NOT the most significant determinant of employment and salary today? A) ability to interpret data mining results for improved marketing B) knowing how to use information systems to improve business process quality C) education and industry D) ability to apply emerging information systems technology to business. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in employment 67) A(n) ________ involves finding potential customers, contacting them, and assigning a sales person. A) value chain B) information system C) business process D) differentiation strategy Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 68) Which of the following statements regarding an information system is true? A) It does not produce data, but merely retrieves it. B) It is synonymous with business processes. C) It stores and retrieves data. D) It can use only a single business process. Answer: C 13 Copyright © 2022 Pearson Education, Inc.

Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Describe the components of an information system (IS) 69) ________ determines the structure, features, and functions of every information system. A) Differentiation strategy B) Competitive strategy C) Organizational culture D) Organizational objective Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 70) An organization's goals and objectives are determined by its ________. A) industry structure B) value chains C) competitive strategy D) information systems Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 71) Which of the following is the first stage in the sequence of how organizational strategy determines MIS? A) formulate the business process B) formulate a competitive strategy C) determine the industry structure D) determine the value chain structure Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 72) The intensity of Porter's five forces model determines ________. A) the exact number of customers a company will have B) the exit strategy of a firm C) how sustainable an industry's profitability will be D) how to achieve a monopoly in the market Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? 14 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 73) According to Porter's five forces model, established companies face stronger threats from substitutes if the substitute's ________. A) price is lower B) benefits are different C) switching cost is higher D) functions are different Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 74) Which of the following is an industry barrier for new entrants in an established market? A) low financial investments B) government policies C) low customer switching costs D) accessible distribution channels Answer: B Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 75) Willoughby Inc., a large chain of superstores, sources its products from thousands of suppliers who have limited product differentiation. The products stored at the superstores are also available at smaller convenience stores with a marginal price differentiation. In this case, which of the following competitive forces is most likely to be a threat to the company? A) threat of substitutions B) bargaining power of suppliers C) threat of new entrants D) bargaining power of customers Answer: D Difficulty: Hard AACSB: Analytical Thinking Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 76) Which of the following is not one of the four fundamental competitive strategies? A) lowest cost across an industry B) better product/service across an industry C) lowest cost within an industry segment D) low cost and differentiation within an industry segment Answer: D Difficulty: Moderate AACSB: Analytical Thinking; Application of Knowledge Chapter LO: 5: What is competitive strategy? 15 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 77) Which of the following is a key for companies when choosing a competitive strategy? A) It is essential for companies to commit to more than one strategy at a time. B) The competitive strategy of companies must be distinctive and maintainable. C) Companies must sell products at the highest price to become a cost leader. D) Companies should try to imitate the competitive strategies of competitors. Answer: B Difficulty: Moderate AACSB: Analytical Thinking; Application of Knowledge Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 78) A car rental company operates in two cities and offers rental cars at low rates specifically to college students from these areas. This is an example of a(n) ________. A) industry-wide differentiation strategy B) focused differentiation strategy C) focused cost leadership strategy D) industry-wide cost leadership strategy Answer: C Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 79) Staples sells office supplies and machines, furniture, and business services both in stores and online. It sells every kind of stationery that one can imagine. It has over 2,000 stores worldwide in 26 countries. This is most likely an example of a(n) ________. A) industry-wide differentiation strategy B) focused differentiation strategy C) focused cost leadership strategy D) industry-wide cost leadership strategy Answer: A Difficulty: Hard AACSB: Analytical Thinking Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 80) Porter defined ________ as the amount of money a customer is willing to pay for a resource, product, or service. A) margin B) value C) premium D) cost Answer: B Difficulty: Easy AACSB: Application of Knowledge 16 Copyright © 2022 Pearson Education, Inc.

Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 81) The difference between the value an activity generates and the cost of the activity is called the ________. A) margin B) revenue C) break-even point D) value-addition point Answer: A Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 82) A ________ is defined as a network of value-creating activities. A) value segment B) value pyramid C) value chain D) value system Answer: C Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 83) Which activity of the value chain includes ordering and receiving raw materials for manufacturing? A) inbound logistics B) operations C) outbound logistics D) marketing Answer: A Difficulty: Moderate AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 84) Which activity of the value chain includes inducing a customer to purchase a product? A) inbound logistics B) operations/manufacturing C) outbound logistics D) sales and marketing Answer: D Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 17 Copyright © 2022 Pearson Education, Inc.

85) Ben oversees the delivery process at a local store. After going through the week's delivery schedule, he calls his team and assigns territories for each individual. He contacts the supervisor to arrange the necessary transport. Which activity of the value chain is Ben executing? A) marketing B) inbound logistics C) outbound logistics D) operations Answer: C Difficulty: Hard AACSB: Analytical Thinking Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 86) The difference between the total value added and the total costs incurred is called the ________ of the value chain. A) revenue B) break-even point C) total margin D) total premium Answer: C Difficulty: Moderate AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 87) Which of the following is a support activity in the value chain? A) receiving inputs for production B) distributing products to buyers C) helping customers use a product D) negotiating prices with vendors Answer: D Difficulty: Moderate AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 88) Which of the following is a support activity in the value chain that includes activities within the firm for developing new techniques, methods, and procedures? A) technology B) human resources C) firm infrastructure D) procurement Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? 18 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 89) According to Porter, ________ includes recruiting, compensation, evaluation, and training of full- and part-time employees. A) human resources B) firm infrastructure C) technology D) procurement Answer: A Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 90) Which of the following support activities of a generic value chain deals with legal and government affairs? A) technology B) human resources C) firm infrastructure D) procurement Answer: C Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 91) According to Porter's model of business activities, ________ are interactions across value activities. A) value-additions B) linkages C) support activities D) margins Answer: B Difficulty: Easy AACSB: Application of Knowledge Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 92) Porter's model of integrating the activities of all departments involved in a value chain is referred to as business ________. A) outsourcing B) development C) analysis D) process design Answer: D Difficulty: Moderate AACSB: Analytical Thinking 19 Copyright © 2022 Pearson Education, Inc.

Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 93) What changes must a company make if its value chain's margin is negative? A) The value must be decreased. B) The costs of the value chain need to be increased. C) The number of stages in the generic chain must be increased. D) The value must be increased so that it exceeds the cost. Answer: D Difficulty: Moderate AACSB: Application of Knowledge Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 94) Which is not an example of how IS can influence strategy? A) reducing the threat of new competitors B) offering new opportunities for differentiation C) using processes that require more sophisticated information systems D) pursuing a low-cost competitive strategy Answer: C Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 95) Strategic planning should always ask the following except ________. A) how is our industry changing B) which markets and products should we exit C) what new advancements in IT are out there D) what is next Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 96) State Moore's Law and describe its effects on the business environment. Answer: Moore's Law states that the number of transistors per square inch on an integrated chip doubles every eighteen months. Because of Moore's Law, the ratio of price to performance of computers has fallen drastically, and the cost of data processing, communications and storage is essentially zero. Moore's Law has led to trends of new apps, more access, more data, and greater mobile use are rapidly changing the way businesses use IT. In addition, the opportunities they present to connect to customers throughout the world and improve business activities within the organization mean that IT is more important to business today than any time in history. 20 Copyright © 2022 Pearson Education, Inc.

Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 97) What is the Information Age? Provide two aspects of this age. Answer: Technologies and others before them have ushered in the Information Age, where the production, distribution, and control of information are the primary driver of the economy. Indicators of this age–the exploding quantities of data and the growth of Internet users. There are two unique aspects of this age. First, the global world is flat. A new IT opportunity in India can quickly find the capital and connections needed to spread rapidly worldwide. Second, in such a flat and connected world, businesses must adapt quickly or be overtaken by those who do. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 98) What is abstract reasoning and systems thinking? Give an example for each. Answer: Abstract reasoning is the ability to make and manipulate models. Constructing a model of the five components of an information system is an example of abstract reasoning. Systems thinking is the ability to model the components of the system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed. Modeling system components and showing how components' inputs and outputs relate to one another is an example of systems thinking. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 99) Explain the meaning of collaboration and experimentation with the help of examples. Answer: Effective collaboration isn't about being nice. In fact, surveys indicate the single most important skill for effective collaboration is to give and receive critical feedback. For example, providing inputs to the marketing strategies devised by a marketing manager, and accepting critical feedback for it is effective collaboration. Experimentation refers to making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with the resources one has. For instance, creating and testing promising new alternatives, consistent with available resources is considered as experimentation. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes

100) Explain why experimentation can contribute to an organization's success Answer: Experimentation is, however, making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with the resources you have. Successful experimentation also means learning from the experience: If it worked, why? If not, why not? Experimentation is essential in a flat and connected global economy as the payoff for success in a global market is higher than ever. If a company does not experiment, it has lowered its chances of a breakthrough success. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: Why is Introduction to MIS the most important class in the business school? Course LO: Discuss the role of information systems in supporting business processes 101) Define management information systems. Answer: Management information systems, or MIS, is the management and use of processes, information systems, and information to help organizations achieve their strategies. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes 102) What are processes, information systems, and information? Answer: A process, or as it is sometimes called, a business process, is a way of doing something. For example, a company has a process for acquiring new customers. The process involves finding potential customers, contacting them, assigning a sales person and so forth. Because organizations accomplish work via processes, focusing on them is key to improving organizational effectiveness and efficiency. An information system is a collection of components, including a computer, that stores and retrieves data and produces information. Business processes and information systems are not the same things. A process may use multiple information systems, and an information system may touch many different processes. Information is a meaningful insight that helps employees to do their jobs. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is MIS? Course LO: Discuss the role of information systems in supporting business processes 103) How does MIS help organizations achieve their strategies? Answer: MIS exists to help people who work in a business achieve the strategies of that business. Because of the rapid pace of technology development, it can be tempting to construct information systems just to be "modern" or for some other reason. Constructing systems for such reasons is unwise and wasteful of both time and money. Processes, information systems, and information need to be created to achieve the organization's strategy. They are not created because the IS department thinks they need to be created or because the company is "falling behind the technology curve." As a future business professional, one needs to learn to look at information systems and technologies only through the lens of business need. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is MIS? 22 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 104) How does MIS relate to organizational strategy? Answer: MIS exists to help organizations achieve their strategy. An organization's goals and objectives are determined by its competitive strategy. Thus, ultimately, competitive strategy determines the structure, features, and functions of every information system. Business processes can also influence the design of information systems. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does MIS relate to organizational strategy? Course LO: Discuss the role of information systems in supporting business processes 105) Briefly describe Porter's five forces model. Answer: A model used to assess an industry structure is Porter's five forces model. According to this model, five competitive forces determine industry profitability: bargaining power of customers, threat of substitutes, bargaining power of suppliers, threat of new entrants, and rivalry among existing firms. A substitute performs the same or similar function as an industry's product by another means. The threat from new entrants is based on industry barriers to entry and the reaction new entrants can expect from established companies in the industry. The competition from industry rivals, also called copycats, is high when rivals compete with each other using price discounting, new products, and service improvements. The last two forces concern bargaining power forces from suppliers or from customers. The strength of these forces depends on the number of available suppliers and buyers, switching costs, the differentiation of the product, and the relative size of the firm compared to the size of suppliers or customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 106) Explain what Walmart views to be a substitution threat and why? Answer: Substitutes can also be doing without, buying used, or doing it yourself. The threat of a substitute is stronger if the substitute's price is lower, if the benefits of the substitute are similar, and if it is easy for the buyer to switch products. For example, Walmart views e-commerce and used products as substitution threats. Walmart judges the threat from e-commerce to be high because switching costs are low and prices can be low. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 107) What conditions create high competition from industry rivals? Answer: The competition from industry rivals, also called copycats, is high when rivals compete with each other using price discounting, new products, and service improvements. Competition from rivals is particularly high when competitors are numerous, when industry growth is slow, and when exit barriers are high. Difficulty: Moderate 23 Copyright © 2022 Pearson Education, Inc.

AACSB: Information Technology Chapter LO: 4: What five forces determine industry structure? Course LO: Discuss the role of information systems in supporting business processes 108) What are the different competitive strategies according to Porter's model? Answer: An organization responds to the structure of its industry by choosing a competitive strategy. Porter followed his five forces model with the model of four competitive strategies. According to Porter, a firm can engage in one of four fundamental competitive strategies. An organization can be the cost leader and provide products at the lowest prices in the industry, or it can focus on adding value to its products to differentiate them from those of the competition. Further, the organization can employ the cost or differentiation strategy across an industry, or it can focus its strategy on a particular industry segment. According to Porter, to be effective, the organization's goals, objectives, culture, and activities must be consistent with the organization's strategy. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is competitive strategy? Course LO: Discuss the role of information systems in supporting business processes 109) Define value, margin, and value chain. Answer: Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. The difference between the value that an activity generates and the cost of the activity is called the margin. A value chain is a network of value-creating activities. According to Porter, that generic chain consists of five primary activities and four support activities. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 110) What are the primary activities in the value chain? Answer: The primary activities in the value chain include: 1. Inbound logistics - Receiving, storing, and handling raw materials and other inputs 2. Operations/manufacturing - Transforming inputs into the final product 3. Outbound logistics - Collecting, storing, and physically distributing the product to buyers 4. Sales and marketing - Inducing buyers to purchase the product and providing a means for them to do so 5. Customer service - Assisting customers' use of the product and thus maintaining and enhancing the product's value Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 111) What are the support activities of a value chain? What processes are part of the support activities? Answer: The support activities in the generic value chain contribute or facilitate the primary 24 Copyright © 2022 Pearson Education, Inc.

value chain activities. They include procurement, technology, human resources, and firm infrastructure. Porter defined procurement as the processes of finding vendors, setting up contractual arrangements, and negotiating prices. He defined technology broadly. It includes research and development, but it also includes other activities within the firm for developing new techniques, methods, and procedures. He defined human resources as recruiting, compensation, evaluation, and training of full- and part-time employees. Finally, firm infrastructure includes general management, finance, accounting, legal, and government affairs. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 112) Do supporting functions add value? How do they contribute to the margin? Answer: Supporting functions add value, albeit indirectly, and they also have costs. supporting activities contribute to a margin. In the case of supporting activities, it would be difficult to calculate the margin because the specific value added of, say, the manufacturer's lobbyists in Washington, D.C., is difficult to know. But there is a value added, there are costs, and there is a margin, even if it is only in concept. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes

113) How does Porter define procurement, technology, human resources, and firm infrastructure? Answer: Porter defined procurement as the processes of finding vendors, setting up contractual arrangements, and negotiating prices. He defined technology broadly to include research and development and other activities within the firm for developing new techniques, methods, and procedures. He defined human resources as recruiting, compensation, evaluation, and training of full- and part-time employees. Firm infrastructure includes general management, finance, accounting, legal, and government affairs. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 114) Explain the meaning of value chain linkages with the help of an example. Answer: Porter's model of business activities includes linkages, which are interactions across value activities. For example, manufacturing systems use linkages to reduce inventory costs. Such a system uses sales forecasts to plan production; it then uses the production plan to determine raw material needs and then uses the material needs to schedule purchases. The result is just-in-time inventory, which reduces inventory sizes and costs. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 115) Define the concept of business process design. Answer: By describing value chains and their linkages, Porter started a movement to create integrated, cross-departmental business systems. Over time, Porter's work led to the creation of a new discipline called business process design. The central idea is that organizations should not automate or improve existing functional systems. Rather, they should create new, more efficient business processes that integrate the activities of all departments involved in a value chain. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How does competitive strategy determine value chain structure? Course LO: Discuss the role of information systems in supporting business processes 116) How does competitive strategy determine business processes and information systems? Answer: Organizations analyze their industry and choose a competitive strategy. Given that strategy, they examine their value chain and design business processes that span value-generating activities. Those processes determine the scope and requirements of each organization's information systems. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes

117) Using the example of bike rentals, explain what type of competitive strategy the "best of breed" rental company uses and how it differs from the low-cost rental company. Answer: The second company has chosen a differentiation strategy. It provides "best-of-breed" rentals to executives at a high-end conference resort. Notice that this business has designed its business processes to ensure superb service. To achieve a positive margin, it must ensure that the value added will exceed the costs of providing the service. The high-service business uses processes that require more sophisticated information systems. It has a sales tracking database that tracks past customer rental activity and an inventory database that is used to select and up-sell bicycle rentals as well as control bicycle inventory with a minimum of fuss to its high-end customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes 118) Explain the difference in information systems required for the low-cost rentals versus high service rentals. Answer: The processes used by the student rental business require minimal information systems support. The only computer/software/data component in its business is the machine provided by its bank for processing credit card transactions. The high-service business uses processes that require more sophisticated information systems. It has a sales tracking database that tracks past customer rental activity and an inventory database that is used to select and up-sell bicycle rentals as well as control bicycle inventory with a minimum of fuss to its high-end customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How does competitive strategy determine business processes and information systems? Course LO: Discuss the role of information systems in supporting business processes

Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 2 Business Processes, Information Systems, and Information 1) Business processes involve resources, such as people, computers, and data and document collections. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 2) All repositories are databases. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 3) Most businesses choose not to standardize business processes to avoid inconsistencies in results. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 4) Standardized business processes reduce risk. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 5) Understanding how business processes interact with information systems is common in the workplace. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes

6) The five-component framework is present in every information system, from the simplest to the most complex. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Discuss the role of information systems in supporting business processes 7) Both programs and procedures are instructions. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 8) According to the five-component framework, programs tell people what to do, and procedures tell hardware what to do. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 9) The only people included in an information system are the users of the system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 10) All information systems include a computer. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 11) The quality of an information system is determined by the quality of the user's thinking. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS)

12) The five-components model has made it difficult to identify problems in an information system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Discuss the role of information systems in supporting business processes 13) The five-component framework can be used when assessing the scope of new systems. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 14) Changing the structure of existing databases is an easy task. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 15) Ordering additional hardware for an information system is a complex task. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 16) Procedures link information systems to processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 17) Data is the most important component of the information system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS)

18) A process cannot be supported by more than one information system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Describe the components of an information system (IS) 19) Procedures anchor an information system to a process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Describe the components of an information system (IS) 20) Each information system has a different procedure for every process the information system supports. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Discuss the role of information systems in supporting business processes 21) Having to learn the procedures for using technology hinders productivity. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Discuss the role of information systems in supporting business processes 22) All processes must rely on an information system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Discuss the role of information systems in supporting business processes 23) Scheduling work shifts and calculating daily sales tax totals are examples of dynamic processes. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

24) Businesses have thousands of different processes, among which some processes are stable. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Describe the components of an information system (IS) 25) Highly standardized processes are done in different ways each time, regardless of who is working on it. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 26) Changes in structured processes are easy to implement. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 27) Control is critical in structured processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 28) Innovation is not expected in structured processes, but it is required in dynamic processes. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 29) Effectiveness is an important characteristic of both structured and dynamic processes. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

30) Procedures for dynamic processes typically define what the users of a system can do and under what conditions they can do it. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 31) Dynamic processes cannot be reduced to fixed activities done the same way every time. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 32) Changes to dynamic processes are slow, made with deliberation, and are difficult to implement. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 33) Dynamic processes are unstructured. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 34) The actors in a dynamic process collaborate and give feedback to each other. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 35) Dynamic processes have objectives that tend to emphasize effectiveness rather than efficiency. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

36) Human intuition does not play any role in a dynamic process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 37) Efficiency means accomplishing the process with minimum resources. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Describe the components of an information system (IS) 38) The instructions of a dynamic process are more rigid when compared to a structured process. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 39) Rather than being controlled, dynamic processes are adaptive. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Describe the components of an information system (IS) 40) Information systems that support a dynamic process will restrict user behavior and innovation. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 41) A statement that the average daily wage of all the construction workers in Nevada is $250 is an example of information. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS)

42) Information is knowledge derived from data. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 43) Information is data processed by sorting, filtering, grouping, comparing, summing, averaging, and other similar operations. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 44) Information is knowledge derived from recorded facts or figures. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 45) Information is data presented in a meaningful context. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 46) Unlike data, information remains constant from person to person. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 47) Good information is conceived from accurate, correct, and complete data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes

48) Data must be accurate to improve the quality of information. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 49) Information system users ought to rely on data if it appears in the context of a Web page. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 50) Good information requires that data be timely. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 51) For data to be worth its cost, an appropriate relationship must exist between the cost of data and its value. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 52) Data should be relevant both to the context and to the subject. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 53) Data needs to be sufficient for the purpose for which it was generated. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes

54) Costs for developing an information system are the only costs associated with it. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 55) Information systems are not subject to financial analyses. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 56) Systems with real time data are less expensive than systems that produce data within a few hours. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 57) A(n) ________ is referred to as a sequence of activities for accomplishing a function. A) value chain B) information system C) business process D) repository Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 58) A(n) ________ is referred to as a task within a business process. A) activity B) schedule C) role D) plan Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes

59) ________ is like diagramming a play in a team sport; it helps everyone involved see their part and the whole. A) Creating a repository B) Documenting a business process C) Showing the details of an activity D) Creating organized instructions Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 60) A ________ is referred to as a subset of activities in a business process that is performed by a particular actor. A) decision B) process C) role D) task Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Describe the components of an information system (IS) 61) In the BPMN model, a circle with a heavy border represents ________. A) decisions B) the start of the business process C) the end of the business process D) activities Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 62) Decisions in the BPMN model are represented by ________. A) diamonds B) triangles C) rectangles with rounded corners D) circles Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes

63) A solid arrow in the BPMN model represents the ________. A) beginning and end of the business process B) flow of data C) flow of action D) swimlanes Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 64) A dotted arrow in the BPMN model represents the ________. A) flow of the data that is named on the arrow B) flow of action that is named on the arrow C) swimlanes D) beginning and end of the business process Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 65) In the BPMN model, the notation of a plus sign signifies the ________. A) flow of the data that is named on an arrow B) details of the activity that are documented elsewhere C) flow of action that is named on an arrow D) beginning and end of the business process Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 66) Which of the following is a benefit of standardizing business processes? A) It produces varying results. B) It enables the business to enforce policies. C) It provides non-scalable solutions. D) It allows businesses to take further risks. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes

67) A(n) ________ is a group of components that interact to achieve some purpose. A) function B) end-user C) repository D) system Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 68) Which of the following components of a functioning information system includes the computer, keyboard, and monitor? A) software B) procedures C) data D) hardware Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 69) Which of the following components of an information system functions as a bridge between the human side and the machine side of the information system framework? A) data B) hardware C) software D) procedure Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 70) A company's ________ serve as instructions for people to follow when accomplishing an activity on a computer. A) activities B) processes C) procedures D) repositories Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 40 Copyright © 2022 Pearson Education, Inc.

71) ________ provide instructions to the hardware in an information system. A) Programs B) Activities C) Procedures D) Repositories Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 72) Microsoft Word, a word-processing program, is an example of ________. A) a data set B) a procedure C) software D) hardware Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 73) Which of the following is the most important component of information systems? A) software B) hardware C) people D) procedure Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 74) A storage disk is an example of a ________ component of an information system. A) procedure B) data C) software D) hardware Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS)

75) Which of the following is considered software when writing a class report? A) the steps used to start the program B) the content of the report C) the word-processing program D) the keyboard Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 76) Customers' names, numbers, and addresses are an example of the ________ component of an information system. A) process B) data C) software D) hardware Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 77) In the airline industry, instructions for cancelling reservation is an example of a/an ________. A) activity B) procedure C) component D) data communications Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 78) ________ are components of an information system that anchor it to a process. A) People B) Programs C) Repositories D) Procedures Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Describe the components of an information system (IS)

79) Which of the following statements is true about processes and procedures of an information system? A) Each information system has a different procedure for every process it supports. B) A process will have the same procedure for every information system. C) Changes to an information system will not affect the processes that use it. D) Procedures do not change with the changes made to an information system. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Discuss the role of information systems in supporting business processes 80) When the process changes, the ________ will also need to change. A) information system B) procedure C) relationship D) operation Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Discuss the role of information systems in supporting business processes 81) Day-to-day operations, such as placing an order, are considered ________ processes. A) structured B) innovative C) dynamic D) unstructured Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 82) Which of the following is a feature of a structured process? A) It is a formally defined process. B) Its procedures are supportive rather than prescriptive. C) It changes rapidly as requirements and situations change. D) It is adaptive rather than being controlled. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

83) Which of the following is a feature of a dynamic process? A) It is a formally defined process. B) It is difficult to change or modify. C) It requires information systems that are prescriptive. D) It is more dependent on effectiveness than efficiency. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 84) Which of the following is an example of a dynamic process? A) scheduling work shifts B) placing an order C) computing a sales commission D) deciding the location for a new store Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 85) ________ is not expected in structured processes, nor is it generally appreciated or rewarded, unlike in the case of dynamic processes. A) Efficiency B) Effectiveness C) Innovation D) Control Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 86) ________ is a critical part of structured processes. A) Adaptation B) Innovation C) Rapid change D) Control Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

87) ________ means accomplishing a certain process with minimum resources. A) Efficiency B) Effectiveness C) Innovation D) Adaptation Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 88) The procedures for structured processes are ________. A) innovative B) dynamic C) prescriptive D) supportive Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 89) Which of the following is a characteristic of structured processes? A) They are effective. B) They are supportive. C) They provide less-rigid instructions. D) They are adaptive. Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 90) Dynamic processes are evaluated on effectiveness more than efficiency because ________. A) they are difficult to change B) the efficient use of resources does not matter in the case of such processes C) they are highly controlled and standardized D) they change so fast that it is often not possible to measure efficiency over time Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

91) Which of the following statements is true of dynamic processes? A) These processes are fixed in the flow among their activities. B) These processes are, by definition, unstructured. C) The BPMN diagrams for these processes are highly specific. D) These processes rely, to a large extent, on human intuition. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 92) Procedures for dynamic processes are ________. A) supportive B) prescriptive C) predefined D) standardized Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 93) ________ is referred to as knowledge derived from recorded facts and figures. A) Innovation B) Information C) Perception D) Cognition Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 94) Which of the following refers to recorded facts and figures? A) data B) programs C) procedures D) policies Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS)

95) Which of the following statements is true about information? A) It remains the same from person to person. B) It is different from data. C) It is unprocessed data. D) It is a recorded fact or figure. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 96) The monthly average sales for a company is an example of ________. A) data B) information C) summing D) averaging Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 97) Information varies from person to person based on ________. A) experiences B) education C) opinions D) expectations Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 98) A company's information system discovers a customer's poor credit history only after certain goods have been shipped to him. The information produced, as a result, was not useful because the data was ________. A) inaccurate B) insufficient C) irrelevant D) ill-timed Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes

99) To conceive good information, information system users must ________. A) trust well-formatted reports B) rely on data that appears in the context of a Web page C) use data irrespective of accuracy D) cross-check data Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 100) Which of the following is a critical data characteristic? A) just sufficient B) random C) arrival after task completion D) high cost Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 101) Data should be pertinent both to the context and subject at hand. Which of the following data characteristics does this represent? A) cost effectiveness B) timeliness C) sufficiency D) relevancy Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Describe the components of an information system (IS) 102) What is a business process? Explain with the help of examples. Answer: A business process is a sequence of activities for accomplishing a function. For example, a university has business processes to: - Add a class to the business curriculum - Add a new section to a class schedule - Assign a class to a classroom - Drop a class section - Record final grades Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 48 Copyright © 2022 Pearson Education, Inc.

103) What is an activity? Explain with the help of examples. Answer: An activity is a task within a business process. Examples of activities that are part of the process of recording final grades are: - Compute final grades - Fill out grade reporting form - Submit the grade recording form to the departmental administrator Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 104) Why do organizations standardize business processes? Answer: Other than very small businesses, most businesses choose to standardize business processes. Standardizing processes enables the business to enforce policies. Standardized business processes also produce consistent results and are scalable. In addition, standardized business processes reduce risk. When every employee follows the same process, the opportunities for error and serious mistakes are greatly reduced. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 105) A business process diagram shows some details and omits others. Why and how is this achieved? Answer: It must; otherwise it would be hundreds of pages long and include too many obvious details. To simplify process diagrams, the details of some activities are documented separately. In Figure 2-1 in the textbook, consider the Enter Order activity. The activity is shown with a plus sign, indicating that the details of the Enter Order activity are documented elsewhere. As stated, such external documentation is used to simplify a diagram; it is also used when the details of the sub-process are unknown or unimportant to the process under study or when those details are documented elsewhere. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is a business process? Course LO: Discuss the role of information systems in supporting business processes 106) Define systems and information systems. Answer: A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS)

107) Explain the five-component framework of an information system with the help of an example of each component. Answer: The five-component framework is a model of the components of an information system: computer hardware, software, data, procedures, and people. For example, when using a computer to write a class report, the student is using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in the report), procedures (the steps used to start the program, enter the report, print it, and save and back up the file), and people (the user). Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 108) How is the five-component framework used to estimate the scope of new information systems? Answer: The five-component framework can also be used when assessing the scope of new systems. For example, when a vendor pitches the need for a new technology, the five components are used to assess how big of an investment that new technology represents. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 109) To understand the impact of a new technology, what are some questions that should be asked when assessing the scope of a new system? Answer: What new hardware will you need? What programs will you need to license? What databases and other data must you create? What procedures will need to be developed for both the use and administration of the information system? And, finally, what will be the impact of the new technology on people? Which jobs will change? Who will need training? How will the new technology affect morale? Will you need to hire new people? Will you need to reorganize? Difficulty: Hard AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 110) Arrange the components of an information system in the correct order based on difficulty and disruption. Answer: It is a simple matter to order additional hardware. Obtaining or developing new programs is more difficult. Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are very difficult and very disruptive to the organization. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What is an information system? Course LO: Describe the components of an information system (IS) 50 Copyright © 2022 Pearson Education, Inc.

111) Explain the role of procedures and provide an example of a procedure. Answer: Procedures, one of the five components of an IS, anchor an IS to a process. A procedure is a set of instructions for a person to follow when operating an IS. Each information system has a different procedure for every process the information system supports. For example, when a person creates a Facebook account, the Facebook IS gives him/her a procedure to follow in the form of instructions for filling out the on-screen application. The Facebook information system includes a procedure for each of its processes—there is a procedure for creating an account, posting a picture, searching for friends, and setting privacy preferences. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Describe the components of an information system (IS) 112) Is the relationship between a process and an information system (IS) always 1:1? Support your answer with an example from the fast food industry. Answer: No. The Order Tracker IS supports the Drive-Thru process, and it helps support several other processes at the restaurant such as; the Hiring process and the Scheduling process as well as the In-Store Ordering, Revenue Totaling, and Reordering processes. A second system is added to the Drive-Thru process, we then have a process that is supported by two IS. For example, the second IS might use a motion detection system to record traffic patterns of cars that join the drive-thru line. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How do business processes and information systems relate? Course LO: Describe the components of an information system (IS) 113) Explain the two broad categories of processes with relevant examples. Answer: Structured processes are formally defined, standardized processes. Most structured processes support day-to-day operations: scheduling work shifts, placing an order, computing a sales commission, and so forth. Dynamic processes are less specific, more adaptive, and even intuitive. Deciding whether to open a new store location and how best to solve a problem of poor employee training are examples of dynamic processes. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

114) List the characteristics of structured processes. Answer: The characteristics of structured processes are: - They are formally defined processes. - Process change is slow and difficult. - Control is critical. - Efficiency and effectiveness are important. - Procedures are prescriptive. - Innovation is not expected. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 115) List the characteristics of dynamic processes. Answer: The characteristics of dynamic processes are: - They are informal processes. - Process change is rapid and expected. - Adaptation is critical. - Effectiveness is typically more important than efficiency. - Procedures are supportive. - Innovation is required. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 116) Why is the distinction between structured and dynamic processes considered important? Answer: The distinction between structured and dynamic processes is considered important for several reasons. The behavior one chooses as a business professional depends on the type of process in which he/she is involved. Innovation will be expected in dynamic processes but discouraged in structured processes. For information systems, this process distinction is important in the nature and character of the system. The procedures of an IS used to support structured processes will restrict his/her behavior and readily (and successfully) frustrate any attempts at innovation. In contrast, an IS that supports a dynamic process supports innovation. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes

117) Why is the need to experiment important for dynamic processes. Provide an example of experimentation regarding a fast food restaurant. Answer: Dynamic processes, as their name implies, change rapidly as requirements and situations change. We'll try it this way. If it works, great; if not, we'll do something else." A good example is the Community Outreach process at the fast food restaurant. Today, this process involves choosing which youth sports team to support, but tomorrow when an employee asks if the restaurant would like to be a sponsor for a new 5K run, the activities in the process change. Such change is expected. The need to try one method and revise it as needed reinforces the need to experiment–one of the four key employability skills for success, as discussed in Chapter 1. Adaptation requires innovation. Whereas innovation on a structured process like computing sales revenue is likely to get you fired, innovating with Twitter to forecast sales will be highly rewarded. Another word for innovation is experimentation, which we described in Chapter 1. Difficulty: Hard AACSB: Information Technology Chapter LO: 4: How do structured and dynamic processes vary? Course LO: Discuss the role of information systems in supporting business processes 118) Define information and explain its characteristics. Answer: A common definition for information is knowledge derived from data, whereas data is defined as recorded facts or figures. First, information is not data, it is something more. What makes information "more" is that it is meaningful. Second, because meaning is in the eye of the beholder, information varies from person to person—different people often have different information. Finally, information resides in the head of the person looking at the data. If it's on a piece of paper or on a digital screen, it's data; if it's in the mind, it's information. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 119) Why is it important to assume that information is difficult to communicate? Answer: If information varies from person to person, we should no longer say, give me the information. I can try to give you my information, and you can try to give me your information, but in both cases what is given is not exactly what is received. In business if you and I are talking or exchanging data, expect that I will not have your information and you won't have my information, either. While you might want to tell me that I'm misinformed, I could say the same about you. We're all slightly misinformed all the time, as nobody knows exactly what anyone else means. With this outlook, you realize how hard it is to effectively communicate, you won't assume others understand what you mean, and you'll become a better communicator because you will work at it. Difficulty: Moderate AACSB: Written and Oral Communication; Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS)

120) Why is it important to recognize that all new information systems are frustrating at first? Answer: If you make your own information from the differences you see on a screen and one day a new screen appears because the IS has changed, you will have to work harder for a while to create your information. For example, when an app changes on your phone or you buy a new computer with a different operating system, it is harder to identify your old familiar differences from which you can make information. Finding differences with the old system had become an easy habit; now you have to work at it. All new information systems initially make it harder on the end user to find their differences. Unfortunately, many companies do not anticipate this when they roll out a shiny new app and are surprised when employees want the old system back. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 121) Why is it important to understand how to be effective on a team? Answer: To help your teammates, provide data that is different from what they already know so they can create information for themselves. Ask them to share with you the differences that have meaning to them. Listen to these differences and see what meaning they create for you. Also, ask questions that reveal new differences. If your questions are original and insightful, then others on the team can use your questions to inform themselves. Difficulty: Moderate AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 122) Why is it important to stay curious? Answer: If information is inside of you, the only way to get it there is for you to put it there. Information can't be received; it must be made. This creative effort is fueled by curiosity. When you quit being curious, you quit informing yourself. Realize every day that other people are informing themselves and seeing things you don't. The only way to keep up is to create information for yourself. Stay curious! You were born that way for a reason. Difficulty: Moderate AACSB: Information Technology; Reflective Thinking Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS)

123) Why is it important to realize that people share data, but believe it is information? Answer: Most people do not distinguish between data and information; they naively believe the information inside them is the same as the data outside them. As a result, when they communicate they mistakenly believe they are directly communicating their information, their ideas, directly to other people. However, they are speaking data, not information. Information, meaning, only exists inside the mind; outside are data. Other individuals who are listening to them must create their own information from the spoken data. With this outlook, you are more open to feedback and discussion as you realize others are trying to make their own information from the data you speak, making you a better collaborator. Difficulty: Moderate AACSB: Information Technology; Reflective Thinking; Written and Oral Communication; Interpersonal Relations and Teamwork Chapter LO: 5: What is information? Course LO: Describe the components of an information system (IS) 124) Explain the data factors that drive information quality. Answer: First, good information is conceived from accurate, correct, and complete data; and it has been processed correctly. Second, data must be timely. When one participates in the development of an information system, timeliness will be part of the requirements that he/she specifies. One needs to give appropriate and realistic timeliness needs. Third, data should be relevant both to the context and to the subject. Finally, data needs to be sufficient for the purpose for which it is generated, but just barely so. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 125) Why must data be timely to make information useful? Explain with an example. Answer: Good information requires that data be timely—available in time for its intended use. A monthly report that arrives six weeks late is most likely useless. An information system that tells the user about the poor credit of a customer to which he/she has already shipped goods is unhelpful and frustrating. In some cases, developing systems that provide data in near real time is much more difficult and expensive than producing data a few hours later. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes

126) Explain the reasons for the need of sufficient data. Answer: Data needs to be sufficient for the purpose for which it is generated, but just barely so. We are inundated with data; one of the critical decisions that each of us make each day is what data to ignore. The higher an individual rises into management, the more data he/she will be given and, because there is only so much time, the more data he/she will need to ignore. So, data should be sufficient, but just barely. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 127) Explain the costs involved in data creation. Answer: Data is not free. There are costs for developing an information system, costs of operating and maintaining that system, and costs of time and salary for reading and processing the data the system produces. For data to be worth its cost, an appropriate relationship must exist between the cost of data and its value. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes 128) What are some ways that data can be untrustworthy or unreliable and provide an example of each. Answer: Data that appears accurate may be misleading if its source is unreliable. Survey data and self-reports by subjects such as polling results for elections may be unreliable if leading questions create biased answers. Data may be unreliable if data from different databases have been thrown together. A common example is combining data from different political polls–how to combine polls of likely voters and all voters or polls that allow undecided with those that do not. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are necessary data characteristics? Course LO: Discuss the role of information systems in supporting business processes Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 3 Networks and the Cloud 1) A personal area network (PAN) connects devices around a single person. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 2) The distinguishing characteristic of a LAN is a single location. Answer: TRUE Difficulty: Easy 56 Copyright © 2022 Pearson Education, Inc.

AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 3) Wide area networks (WANs) connect computers at different geographic locations. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 4) Bluetooth is a technology that allows devices to connect wirelessly to a LAN. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 5) A cellular network, also called a mobile network or wireless WAN (WWAN). Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

6) Internet service providers (ISP) collect money from their customers and pay access fees and other charges on your behalf. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 7) The three wireless network options are: Bluetooth, cellular and DSL. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 8) The three common alternatives for connecting to the Internet are WAN, Cable line, and DSL. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 9) A digital subscriber line (DSL) operates on the same lines as voice telephones, but it operates so that its signals do not interfere with voice telephone service. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 10) Up to 500 user sites can share a cable line, and performance varies depending on how many other users are sending and receiving data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

11) Wide area networks are used to connect computers that reside in a single geographic location. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Compare and contrast different ways of connecting to the Internet 12) Protocols are used to provide seamless flow of data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 13) Ethernet or the IEEE 802.3 protocol is used for wired LAN connections. This protocol standard, specifies hardware characteristics, such as which wire carries which signals. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 14) Encapsulation involves breaking up an image, which is too big to travel in one piece, into parts called packets. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 15) TCP/IP Protocol architecture is a scheme of protocol types arranged in layers. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 16) When you use a browser like Edge, Safari, or Chrome to upload your image to Snapchat, you are using a program that implements the http protocol. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 17) Whenever you see http in your browser's address bar, you have a secure transmission and you 59 Copyright © 2022 Pearson Education, Inc.

can safely send sensitive data like credit card numbers. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 18) FTP, or File Transfer Protocol, is used for email transmissions. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 19) To connect to the Internet, every device needs an IP address. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 20) While protocols are rules for devices to follow, they don't specify any particular language. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 21) Hypertext Markup Language (html) is the most common language for defining the structure and layout of Web pages. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 22) Cascading Style Sheets (CSS) define the fonts and layout of all elements on web pages and are an example of service-oriented architecture (SOA). Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies

23) AT&T is an example of a Tier 1 network provider. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 24) Simple Mail Transfer Protocol (SMTP) is the transmission protocol used primarily to move files over the Internet. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 25) XML is the most common markup language for defining the structure and layout of Web pages. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 26) Three-tier architecture, which is an arrangement of user computers and servers into three categories, or tiers. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 27) Almost all social media apps and e-commerce sites use the three-tier architecture. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 28) In the three-tier architecture, the server tier consists of computers, phones, and other devices that have browsers that request and process web pages. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet

29) Web servers are software programs that run on a database tier computer. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 30) Work is distributed among the computers in a Web farm to minimize customer delays. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 31) The user tier consists of computers, smartphones, and other devices that have browsers that request and process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 32) A login server is an app program that runs on a server-tier computer. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 33) A Web page is a document that is coded in one of the standard page markup languages. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 34) Your browser sends requests and receives responses for service encoded in a predefined http request format. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet

35) The cloud is the elastic leasing of pooled computer resources over the Internet. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 36) The term elastic, which was first used this way by Amazon, means that the amount of resources leased can be increased or decreased dynamically and programmatically, in a short span of time. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 37) Cloud resources are pooled, but only one organization can use the physical hardware at a time. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 38) According to economies of scale, the average cost of production decreases as the size of the operation increases. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 39) The commonality of Internet protocols and SOA enables cloud-hosting vendors to provide processing capabilities in flexible yet standardized ways. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 40) Cloud-based hosting is becoming less and less popular. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 41) Control of data is the primary advantage of cloud hosting. 63 Copyright © 2022 Pearson Education, Inc.

Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 42) Outsourcing is the process of hiring another organization to perform a service. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 43) Application programs are provided by vendors under platform as a service (PaaS). Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the typical cloud options? Course LO: Describe the major types of computer hardware and software used by companies 44) Platform as a service (PaaS) is where vendors provide hosted computers, an operating system, and possibly a DBMS. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the typical cloud options? Course LO: Describe the major types of computer hardware and software used by companies 45) Which of these is not an example of a network? A) personal area network (PAN) B) intranet C) local area network (LAN) D) Wide area networks (WANs) Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

46) A special-purpose computer that receives and transmits wired traffic on the LAN is a/an ________. A) SOHO LAN B) internet C) switch D) cellular network Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 47) With a ________, an organization can place communication lines wherever it wants because all lines reside on its premises. A) WAN B) PAN C) network D) LAN Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 48) A private internet used exclusively within an organization is sometimes called a/an ________. A) internet B) intranet C) LAN (local area network) D) PAN (personal area network) Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

49) ________ is a wireless communication method that is used for transmitting data over short distances, such as in wireless keyboards. A) Bluetooth B) Wi-Fi C) Cellular data D) WWAN Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 50) Like Wi-Fi, cellular communication uses ________. A) networks B) radio waves C) special telephone lines D) cable lines Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 51) If a mobile user moves out of an original cell, the user is automatically switched to an adjoining cell. This is known as a/an ________. A) handover B) switch C) different frequency D) mobile network Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

52) Which of the following is not a function of an ISP (Internet Service Provider)? A) a legitimate Internet address B) pay access fees and other charges on your behalf C) serves as a gateway to the Internet D) transmits data over short distances Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 53) A/an ________ operates on the same lines as voice telephones, but it operates so that its signals do not interfere with voice telephone service. A) cable line B) cellular data C) digital subscriber line (DSL) D) WAN Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 54) Computers in a small hospital are most likely connected to each other using ________. A) WAN B) VPN C) LAN D) Bluetooth Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Compare and contrast different ways of connecting to the Internet 55) ________ is the protocol used between browsers and Web servers. A) TCP/IP Protocol architecture B) SMTP, or Simple Mail Transfer Protocol C) IP (Internet Protocol) D) Hypertext Transport Protocol (http) Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 67 Copyright © 2022 Pearson Education, Inc.

56) The ________ protocol is used for wired LAN connections. A) IEEE 802.3 B) IEEE 802.11 C) IEEE 802.11ac D) 104.193.184.125 Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 57) Which of the following is not a protocol type? A) Hypertext Transport B) SMTP, or Simple Mail Transfer C) XML D) IP Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 58) A(n) ________ is a worldwide-unique name that is affiliated with a particular public IP address. A) IP address B) domain name C) IPv6 D) IPv4 Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 59) An html ________ is a notation used to define a data element for display or other purposes. A) angle bracket B) tag C) hyperlink D) attribute Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies

60) ________ is the most common language for defining the layout and structure of Web pages. A) xml B) CSS C) html D) SOA Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 61) Which of the following is an application layer protocol? A) VPN B) TCP/IP Protocol architecture C) WNIC D) IEEE Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 62) Service-oriented architecture (SOA) provides a way for apps on a network to talk to each other using all these ways, except ________. A) standard protocols to publish a menu of services that the application provides B) the structure of the data that it expects to receive C) providing metadata about the page D) the structure of the data that it will produce Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 63) All of the following are examples of Tier 1 providers except for ________. A) Sprint B) Century C) Verizon D) Netflix Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies

64) Exchanges are governed by ________ agreements that specify how the data will move among providers. A) peering B) tier 1 C) Internet D) carrier Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Describe the major types of computer hardware and software used by companies 65) An address on the Internet is called a(n) ________. A) VPN B) TCP C) IP Address D) FTP Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 66) Which of the following statements is true about domain names? A) It is a worldwide-unique name that is associated with a particular Internet address. B) A nation's government is the only body allowed to register domain names on Internet directories. C) An Internet address can be associated with only one domain name. D) It is usually written before a protocol in a URL. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 67) Which of the following is not a tier in three-tier architecture? A) user B) server C) web D) database Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet

68) ________ are software programs that run on a server-tier computer and that manage http traffic by sending and receiving Web pages to and from clients. A) DBMS B) Web farms C) Web pages D) Web servers Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 69) Database management system (DBMS) processes requests to ________. A) retrieve and store data B) process application programs C) request and process Web pages D) manage http traffic Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 70) Which of the following statements is true about the cloud? A) Cloud vendors dynamically allocate physical servers as customer needs vary. B) The amount of resources that is leased out to organizations is decided by their lease contracts. C) The amount of resources leased can be increased or decreased dynamically D) Every organization that uses cloud services is allotted only one virtual machine. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 71) Which of the following statements is true about cloud computing? A) It is yet to be adopted on a large scale as it is expensive. B) It enables many different organizations to use the same physical hardware. C) It is the leasing out of a fixed amount of server time and resources. D) It has a negative impact on cloud vendors as they do not benefit from economies of scale. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies

72) Which of the following is a characteristic of cloud hosting? A) Even the most reputable organizations do not offer security for cloud hosting. B) Organizations that hire cloud services run the risk of investing in technology that may become obsolete. C) Cloud-hosting offers a high degree of transparency on data backup and security. D) Cloud-hosting offers best-of-breed security and disaster recovery. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 73) Which of the following has not contributed to cloud-based hosting being advantageous today? A) data communication is so cheap B) SOA and protocol adoption have made the cloud even more economical C) data storage is nearly free D) being subject to changes in the vendor's management, policy, and prices Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 74) What are the four basic types of networks? Provide an example of each. Answer: A personal area network (PAN) connects devices around a single person. Most of these devices connect wirelessly with other devices up to about 10 meters. An example of a PAN is a wearable device such as a Fitbit connected to a mobile device such as an iPhone. A local area network (LAN) connects computers that reside in a single geographic location. The number of connected computers can range from two to several hundred. The distinguishing characteristic of a LAN is a single location. The computers for a College of Business located on a single campus can be connected via a LAN. Small office or a home office (SOHO) LANs support fewer than a dozen or so smart-phones, computers, and printers. Wide area networks (WANs) connect computers at different geographic locations. The computers in two separated company sites must be connected using a WAN. The computers for a College of Business located on multiple campuses must be connected via a WAN. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

75) Explain the physical layout of a cellular network and how it sends/receives data to its users. Answer: A cellular network, also called a mobile network or wireless WAN (WWAN), is a communication network that uses radio signals to send and receive data to mobile users. Users wirelessly connect to stationary base stations, also known as cell towers, using a variety of frequencies with low power. The base stations are connected to each adjoining station and to a mobile switching center (or MTSO). The switching center connects users to the Internet. Like Wi-Fi, cellular communication uses radio waves, but cellular radio range is greater than Wi-Fi and uses different frequencies. Cells in the network are typically hexagonal shapes. Although most base stations are omnidirectional and located in the middle of cells, they can be directional as is common with stadiums and highways. Cells can vary in size from a half mile in diameter in urban settings to 25 miles in remote locations. When a mobile user contacts a network, a base station assigns a frequency to that user. If the user moves out of the original cell a handover or handoff is accomplished which switches the end user to an adjoining cell base station automatically. The gaining base station can reuse the original frequency or change to a new frequency. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 76) Why have cellular networks become popular? Answer: Cellular networks have become more popular as they have grown in capabilities and capacities. This evolution in features is called generations. As these features have grown in utility and diminished in cost, mobile networks are now more popular than fixed networks in many countries and are the only method of digital communication in some countries, particularly in Africa. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies

77) Explain the services that an ISP provides and list the three common ways to connect to the Internet. Answer: An ISP offers access to the Internet and other associated services. It has three important functions. First, it provides you with a legitimate Internet address. Second, it serves as your gateway to the Internet. The ISP receives the communications from your computer and passes them on to the Internet, and it receives communications from the Internet and passes them on to you. Finally, ISPs pay for the Internet. They collect money from their customers and pay access fees and other charges on your behalf. The three common alternatives for connecting to the Internet include a WAN, a digital subscriber line (DSL), and cable line. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What do business professionals need to know about networks and the Internet? Course LO: Describe the major types of computer hardware and software used by companies 78) What are protocols? Provide a few examples of protocols. Answer: A protocol is a set of rules used by two communicating devices. You are not a device, but you use protocols. You speak differently to your friends than your parents or a three-year old. It's still English for all three, but the rules are different–you banter with friends, you exercise patience with your parents, and you fill in blanks with the three-year old. You use and reuse these protocols in many different situations to communicate with different types of people. The same is true of devices on the Internet. We program them with many protocols so they can communicate in a wide variety of settings with a wide variety of other devices. The devices on a LAN use common protocols to talk with each other and accommodate new devices. The IEEE 802.3 protocol is used for wired LAN connections. This protocol standard, also called ethernet, specifies hardware characteristics, such as which wire carries which signals. Wireless LAN connections use the IEEE 802.11 protocol. Several versions of 802.11 exist, and as of 2017 the most current one is IEEE 802.11ac. The differences among these versions are beyond the scope of this discussion. The current standard, 802.11ac, allows speeds of up to 1300 Mbps, a 100 percent increase in speed over the previous protocol in just over 4 years. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet

79) Use the example of Instragram to describe how protocols work on the Internet. Be sure to include the two techniques that can be used in this process. Answer: Communication with Instagram Web servers involves nearly unimaginable complexity. Somehow, your smartphone communicates with servers half a world away even though these devices most likely have not interacted before. You can upload any image type, size, or format, and you don't have to care about any of the devices that will carry your image to Instagram. Your image might show up on a watch, a smartphone, or the side of a refrigerator, but it's your exact image, every time. This process depends on two techniques. First, your upload, which is too big to travel in one piece, is broken up into parts called packets, and each packet passed along from WAN to WAN in such a way that it arrives intact. Then your original image is reassembled, any parts that were lost or damaged are resent, and the reconstructed image is delivered to the server for processing. The second technique is encapsulation. Each of your packets swimming their way from you to Instagram is encapsulated, enveloped, inside a container of protocols. Each packet is contained within several containers, several layers of these protocols. Your device and ISP wrap these layers on, and the Instagram servers take them off, like envelopes within envelopes. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 80) Explain HTTP and HTTPS in general terms. Answer: Hypertext Transport Protocol (http) is the protocol used between browsers and Web servers. When you use a browser like Edge, Safari, or Chrome to upload your image to Instagram, you are using a program that implements the http protocol. At the other end, the Instagram server also processes http. Even though your browser and the Web server have never "met" before, they can communicate with one another because they both follow the rules of http. Your browser sends requests for service encoded in a predefined http request format. The server receives that request, processes the request (in this case to upload an image), and formats a response in a predefined http response format. A secure version of http is available called https. Whenever you see https in your browser's address bar, you have a secure transmission and you can safely send sensitive data like credit card numbers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet

81) What is an IP address? Explain the difference between public and private. Describe both IP address formats. Answer: Every location on the Internet uses an address, called an IP address, which is a number that uniquely identifies its location to connect to the Internet every device needs an IP address. Public IP addresses identify a particular device on the public Internet. Private IP addresses identify a particular device on a private network, usually on a LAN. These private addresses are controlled within the LAN. When you connect to your LAN, your laptop receives a private IP address, and when you use the Internet, your ISP gives you an IP address, probably a temporary one while you use the Internet. IP addresses have two formats; the older version is IPv4, which has a four-decimal dotted for-mat such as 104.193.184.125 (a previous IP address for Instagram). The more recent version, IPv6, is much longer. If you type into a browser the IP address, it will connect with the device at that address. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 82) What is Hypertext Markup Language (html)? How are Cascading Style Sheets (CSS) used in html? Answer: Hypertext Markup Language (html)is the most common language for defining the structure and layout of Web pages. An html tag is a notation used to define a data element for display or other purposes. The start of this tag is indicated by <h2>, and the end of the tag is indicated by </h2>. The words between the tags are the value of the tag. This html tag means to place the words "Price of Item" on a Web page in the style of a level-two heading. The creator of the Web page will define the style (font size, color, and so forth) for h2 headings and the other tags to be used. Web pages include hyperlinks, which are pointers to other Web pages. A hyperlink contains the URL of the Web page to find when the user clicks the hyperlink. The URL can reference a page on the server that generated the page containing the hyperlink, or it can reference a page on another server. HTML pages are often supported by Cascading Style Sheets (CSS). A CSS defines the fonts and layout of all the elements on pages on a Web site so that the site has one consistent look and feel. For example, every <h2> value will be displayed the same way on every page. It is easier to write a CSS that governs all the various pages on a Web site than to write each font and indentation for every page. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 83) What is XML (Extensible Markup Language)? Answer: XML (Extensible Markup Language) is a markup language like html but is machine readable and was designed to enable the exchange of structured data over the Web. A tag in XML might be <customer_address>, which would tell the Web app reading the page the address of the customer. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 76 Copyright © 2022 Pearson Education, Inc.

84) What is a carrier's role in moving data across the Internet? Answer: As your data moves across the Internet it moves between several large WANs operated by telecommunication providers. These carriers in the United States include AT&T, Verizon, Sprint, and Century. They form the Internet backbone and are called Tier 1 network providers. These providers earn revenue by selling services to ISPs, which connect to the Internet via these Tier 1 providers. Each of these large network providers freely shares its data with other Tier 1 providers. The exchanges are governed by peering agreements that specify how the data will move among providers. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 85) Explain what net neutrality is and how it would affect carriers. Answer: One significant issue is that some Internet participants use a great deal of the bandwidth on these Tier 1 networks compared to the rest of us. In fact, Netflix uses about a third of all Internet traffic in North America between 9 p.m. and midnight. Some Tier 1 providers would like to create a high-traffic lane over the Internet for these content providers and charge them accordingly. Others favor a net neutrality approach where all data moving on the Internet is treated equally. Many governments worldwide are becoming involved in how these disputes are regulated and are beginning to favor a net neutral approach that regulates the Internet as a public good like electricity or water and less like a commercial venture. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does data move over a network? Course LO: Compare and contrast different ways of connecting to the Internet 86) Describe the three-tier architecture used in most e-commerce and social media applications. Answer: Almost all social media apps and e-commerce sites use the three-tier architecture, which is an arrangement of user computers and servers into three categories, or tiers. The user tier consists of computers, smartphones, and other devices that have browsers that request and process Web pages. The server tier is composed of computers that run Web servers and process application programs. The database tier consists of computers that run a database management system (DBMS) that processes requests to retrieve and store data. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet

87) What is a Web farm or server farm? Answer: To ensure acceptable performance, commercial Web sites usually are supported by several or even many Web server computers in a facility called a Web farm or server farm. Work is distributed among the computers in a Web farm to minimize customer delays. The coordination among multiple Web server computers is a fantastic dance, but, alas, we do not have space to tell that story here. Just imagine the coordination that must occur as you upload a photo, search for another user, or download images. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 88) What is a login server? What is the role of the DBMS with a log in server? Answer: A login server is an app program that runs on a server-tier computer. A login server receives requests from users via the Web server, takes some action, and returns a response to the users via the Web server. Typical login server functions are to obtain user names and pass-words and compare them to credentials stored in the database. When you supply your user name and password and click submit, the login server sends your credentials to the DBMS and asks the DBMS to look through the database of accounts to determine if there is a match. If none is found the DBMS will reply to the login server that no match was found; if a match is found the login server will tell the Web server to send you to the page. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does a typical Web server move data on a network? Course LO: Compare and contrast different ways of connecting to the Internet 89) Explain why the cloud is described as elastic and pooled. Answer: The term elastic means that the amount of resources leased can be increased or decreased dynamically, programmatically, in a short span of time and that organizations pay for just the resources that they use. The resources are pooled, because many different organizations use the same physical hardware; they share that hardware. Cloud vendors dynamically allocate virtual machines to physical hardware as customer needs increase or decrease. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies

90) Explain the advantages and disadvantages of cloud-based hosting. Answer: Advantages are that you can quickly obtain and access a server, often within minutes. In addition, if you need thousands of servers, you can readily scale up to obtain them. Finally, cost structures with cloud-based hosting are usually known. Although you might be surprised how many customers want to access your Web site, you won't have any surprises as to how much it will cost. Another positive is that you'll be receiving best-of-breed security and disaster recovery. In addition, you need not worry that you're investing in technology that will soon be obsolete; the cloud vendor is taking that risk. All of this is possible because the cloud vendor is gaining economies of scale by selling to an entire industry, not just to you. The cloud also has personnel advantages. The disadvantages are that you are subject to changes in the vendor's management, policy, and prices. Another disadvantage is that disaster and recovery procedures are often difficult to assess. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 91) Explain the advantages and disadvantages of in-house hosting. Answer: The primary advantage of in-house hosting is control of data. You know where your data–which may be a large part of your organization's value–is located. You know how many copies of your data there are, if they are in the same country as you are, and the laws that apply to that data. Disadvantages include having to construct your own data center, you will also need to acquire and train the personnel to run it and then manage those personnel and your facility. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies 92) What are two factors that have made cloud-based hosting advantageous today? Answer: First, processors, data communication, and data storage are so cheap as to be nearly free. At the scale of a Web farm of hundreds of thousands of servers, processing for an hour costs essentially nothing, as the 1.5-cent price per hour indicates. Because data communication is so cheap, getting the data to and from that processor is also nearly free. Second, advances in SOA and protocol adoption have made the cloud even more economical, transparent to the user, and convenient. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: Why is the cloud the future for most organizations? Course LO: Describe the major types of computer hardware and software used by companies

93) What is SaaS? Provide an example of a company that offers this service. Answer: An organization that provides software as a service (SaaS) provides not only hardware infrastructure, but also an operating system and app programs on top of that hardware. For example, Salesforce.com provides programs for customer and sales tracking as a service. Similarly, Microsoft provides Office Online and OneDrive as a service. Exchange, Lync, and SharePoint apps are provided as a service "in the cloud." Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the typical cloud options? Course LO: Describe the major types of computer hardware and software used by companies 94) What is PaaS? Provide an example of a company that offers this service. Answer: The second category of cloud hosting is platform as a service (PaaS), whereby vendors provide hosted computers, an operating system, and possibly a DBMS. Microsoft Windows Azure, for example, provides servers installed with Windows Server. Customers of Windows Azure then add their own apps on top of the hosted platform. Microsoft SQL Azure provides a host with Windows Server and SQL Server. Oracle On Demand provides a hosted server with Oracle Database. Google offers Google App Engine (GAE) as a PAAS; Instagram is using AWS to host its Instagram app. Again, for PaaS, organizations add their own apps to the host. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the typical cloud options? Course LO: Describe the major types of computer hardware and software used by companies Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 4 Database Processing 1) A spreadsheet can be used to store data if the structure of a list is simple. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is the purpose of a database? Course LO: Discuss best practices for using and managing databases 2) The purpose of a database is to keep track of things that involve a single theme. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is the purpose of a database? Course LO: Discuss best practices for using and managing databases 3) A database is a self-describing collection of integrated records. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 80 Copyright © 2022 Pearson Education, Inc.

4) A database is best described as a collection of unrelated tables. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 5) A group of similar rows or records in a table is called a field. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 6) Special data that describes the structure of a database is called metadata. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases

7) A key is a column, or group of columns, that identifies a unique row in a table. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 8) Each table in a database must have two or more primary keys. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 9) Metadata refers to entities of a database that users want to process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 10) The format of metadata depends on the software product that is processing the database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 11) Relational databases are databases that are not an organized format. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 12) A byte is a character of data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases

13) Columns are also called records. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 14) A group of similar rows is called a table. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 15) Foreign keys are commonly used to help link one table to another. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 16) Self-describing means that a database contains, within itself, a description of its contents. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 17) A database management system (DBMS) is a program used to create, process, and administer a database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 18) A DBMS and database mean the same thing and are synonymous terms that can be used interchangeably. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases

19) MySQL is an open source DBMS product that is license-free for most database applications. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 20) To modify an existing table, a developer can open the metadata form for that table and add a new row of metadata. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 21) Most organizations develop their own DBMS software to obtain control over data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 22) SQL is an international standard language for processing a database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 23) One of the functions of a DBMS is to provide tools to assist in the administration of a database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 24) A user does not need user account credentials to access and process a database. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases

25) One of the developmental tasks of a database administrator is to create a system to record and manage the resolution of problems. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 26) A database app is a collection of forms, reports, queries, and application programs that use the DBMS to process a database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 27) Reports show data in a structured context. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 28) The lost update problem can be resolved by implementing multi-user database processing. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 29) Locking must be used to coordinate the activities of users to prevent the lost-update problem. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 30) A query shows the results of a search by a keyword. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases

31) Most database applications meet all requirements for business needs. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 32) Another important use of database app programs is to enable database processing over the Internet. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 33) Multi-user processing is common and generally problem free. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 34) Enterprise DBMS products process large organizational and workgroup databases. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 35) Today, there are many personal DBMS products available including Paradox, dBase, R:base, and Fox-Pro. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 36) Developers generally construct a logical representation of database data, called a data model, after building a database. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases

37) A data model describes data and relationships that will be stored in the database. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 38) In data models, physical objects are represented as entities, whereas logical constructs and transactions are represented as attributes. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 39) Attributes are used to describe characteristics of entities. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 40) An identifier is an attribute or a group of attributes whose value is associated with one, and only one, entity instance. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 41) In an entity-relationship (E-R) diagram, an entity is represented by a triangle, and the relationships between entities are represented by dotted lines. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 42) A line in an E-R diagram is used to represent the attributes of the entities. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases

43) A many-to-many (N:M) relationship means that more than one entity is allowed on each side of the relationship and that the number of entities on each side can be different. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 44) The Crow's-foot notation in an E-R diagram shows the maximum number of entities that can be involved in a relationship. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 45) Minimum cardinalities represent the minimum number of entity instances required in a relationship. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 46) 1:N, N:M, and 1:1 are common examples of minimum cardinalities. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 47) The small oval on a line in an E-R diagram means that the relationship must have an entity of that type. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 48) Normalization is the process of combining two or more tables into a single table. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases

49) Data duplication is an example of a data integrity problem. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 50) The general goal of normalization is to construct tables such that every table has a single topic or theme. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 51) Normalized tables are faster to process than tables that haven't been normalized. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 52) A foreign key is essential in relational databases to represent the relationship between two tables. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 53) The accuracy of a database design is independent of the corresponding data model. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 54) Users are the final judges as to what data the database should contain and how the records in that database should be related to one another. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases

55) The easiest time to change the database structure is after the data modeling stage. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 56) Changing a relationship from one-to-many to many-to-many in a functional database is simply a matter of changing the N:N notation to N:M. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 57) Relational DBMS are the workhorse of the information systems industry today and likely will be for many years to come. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases 58) A NoSQL database is a high-performance, special-requirements DBMS. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases 59) NoSQL products guarantee that updates will be consistent or durable. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases 60) A database is required instead of a spreadsheet when ________. A) professionals need to keep track of things B) a user requires control over data C) lists involve data with multiple themes D) one or more users want to access the same data Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is the purpose of a database? Course LO: Discuss best practices for using and managing databases 90 Copyright © 2022 Pearson Education, Inc.

61) Which of the following is the smallest data element in a database? A) field B) record C) byte D) file Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 62) In a database, ________ are grouped into columns that represent table attributes. A) fields B) records C) bytes D) files Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 63) The columns in a database are called ________. A) records B) tables C) files D) fields Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 64) The rows in a database are called ________. A) records B) tables C) files D) fields Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases

65) The tables that appear in a database are known as ________. A) records B) files C) fields D) attributes Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 66) Which of the following data elements is placed higher than records in the database hierarchy? A) file B) field C) character D) byte Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 67) A primary key used in a database is a ________. A) group of rows that are formed to identify a unique table or file B) column or group of columns that identifies a unique row in a table C) character or byte that represents fields or columns D) group of tables or files formed to identify a unique field or row Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 68) Albert creates a relational database to store employee performance statistics. He stores each employee's data in independent rows and creates a column named "Employee Number" to assign unique numbers to each employee. This column is referred to as a(n) ________. A) primary key B) identifier C) foreign key D) functionally dependent record Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 69) Columns that are keys to different tables other than the ones in which they reside are called 92 Copyright © 2022 Pearson Education, Inc.

________. A) attributes B) foreign keys C) primary keys D) internal records Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 70) Relational databases represent relationships using ________. A) foreign keys B) file systems C) metadata D) unique identifiers Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 71) Metadata are ________. A) code used for server-side processing B) error logs of databases C) data that describe data D) encrypted data transmissions Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 72) A(n) ________ is a program used to create, process, and administer a database. A) operating system B) DBMS C) information system D) data mart Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases

73) Which of the following is an example of a database management system? A) MS Excel B) Big Data C) SQL Server D) Access Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 74) Identify the open source DBMS product among the following. A) MySQL B) DB2 C) Access D) Oracle Database Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 75) Which of the following is true of MySQL? A) It is offered by Microsoft. B) It is license-free for most applications. C) It is a closed-source database product. D) It is yet to be widely adopted. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 76) When you modify or delete data present in a database, you are ________. A) creating a new database B) forming a data model C) simplifying the data structure D) processing the database Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases

77) Which of the following is an international standard language for processing a database? A) Cassandra B) DB2 C) SQL D) MS Access Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 78) A ________ is a collection of forms, reports, queries, and programs that use the DBMS to process a database. A) database app B) database design C) data field D) data model Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 79) ________ are used by users to read, insert, modify, and delete data in a database. A) Reports B) Forms C) Queries D) DBMSs Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 80) A(n) ________ is a search request for data from a database. A) form B) report C) query D) app Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases

81) Brenda, the sales manager of a firm, wants to generate a report containing sales analyses of the second and third quarter of the year. She should use a ________ to obtain the information that she wants from the database. A) report B) form C) query D) application program Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 82) Which of the following refers to the problem that exists in database apps when two users modify the same data item, but only one of those changes is recorded? A) lost update problem B) crow's foot paradigm C) bullwhip effect D) update query problem Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 83) ________ products process large organizational and workgroup databases. A) Personal DBMS B) Application Program C) Enterprise DBMS D) Forms and reporting Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 84) ________ is both a DBMS and an application development product. A) Paradox B) Access C) Enterprise DBMS D) IBM's DB2 Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 96 Copyright © 2022 Pearson Education, Inc.

85) A ________ describes the data and relationships that will be stored in a database. A) data aggregator B) query model C) data model D) data application Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 86) An administrator should create a ________ before developing a database design. A) data aggregator B) query model C) data model D) data application Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 87) A data model is a ________. A) logical representation of database data B) repository of unprocessed data C) collection of isolated databases D) set of programs used to retrieve data Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 88) In a data model, a(n) ________ is something that a user wants to track. A) record B) byte C) entity D) primary key Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases

89) Brad, a project manager, wants to build a database to integrate information about employees and tasks that they handle. Brad wants to track information such as task name, percentage completed, and employee name. These aspects that Brad wants to track are called ________. A) identifiers B) records C) primary keys D) entities Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 90) Entities in a data model have ________ that describe the characteristics of the entity. A) characters B) primary keys C) codes D) attributes Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 91) Each entity in a database has a unique attribute called a(n) ________. A) public key B) identifier C) foreign key D) index field Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 92) In an E-R diagram, a line between two entities represents a(n) ________. A) attribute B) identifier C) cardinality D) relationship Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases

93) The forked lines on the right side of a line on an E-R diagram that indicate a 1:N relationship between two entities are referred to as ________. A) identifiers B) foreign keys C) crow's feet D) entities Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 94) Which of the following is true of N:M relationships? A) They are the same as N:N relationships. B) They represent minimum cardinalities in a relationship. C) They are also called one-to-many relationships. D) They can have more than one entity on each side of the relationship. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 95) A student management system allows students to have multiple majors, and advisers are assigned to handle multiple students and courses. This is an example of a(n) ________ relationship. A) 1:N B) 1:1 C) N:M D) M:1 Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 96) ________ in an E-R diagram refer to the least number of entities required in a relationship. A) One-to-one relationships B) Primary keys C) Foreign keys D) Minimum cardinalities Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 99 Copyright © 2022 Pearson Education, Inc.

97) Constraints on the number of entities in a relationship are called ________ cardinalities. A) specific B) minimum C) primary D) critical Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 98) In an E-R diagram, a(n) ________ on a line means that at least one entity of that type is required. A) small oval B) vertical bar C) arrow D) triangular block Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 99) Which of the following formations on a line in an E-R diagram means that the relationship need not have an entity of that type? A) vertical bar B) arrow C) double line D) small oval Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 100) ________ is the process of converting a data model into tables, relationships, and data constraints. A) Database design B) Database querying C) Data mining D) Database aggregation Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 100 Copyright © 2022 Pearson Education, Inc.

101) ________ is the process of converting a poorly structured table into two or more well-structured tables. A) Optimization B) Normalization C) Refactoring D) Standardization Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 102) When the database contains inconsistent data, it leads to a(n) ________. A) data integrity problem B) crow's-foot paradigm C) adaptation conflict D) lost-update problem Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 103) A data integrity problem will occur only if ________. A) a database has multiple administrators B) data are duplicated in a database C) the database is very large D) there are complex relationships between entities in a database Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 104) Every table in a normalized database has a ________. A) one-to-one relationship between entities B) single theme C) foreign key D) specialized query format Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases

105) Identify the first step in transforming a data model into a relational database design. A) representing the data relationships B) normalizing the data and files C) creating foreign keys D) creating a table for each entity Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 106) When using the relational model to represent two tables, one must ________. A) add a foreign key to one of the tables B) have more than two identifiers in the model C) establish only N:M relationships between the tables D) use metadata instead of foreign keys Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 107) Which of the following is true about the database development process? A) The easiest time to change the database structure is during the data modeling stage. B) Changing a relationship from 1:N to N:M in an existing database is simply a matter of changing notations. C) User review of the data model is avoided as it is not helpful in data modeling. D) A database is a model of how the developers view their business world. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 108) ________ are the final judges as to what data the database should contain and how the records in that database should be related to one another. A) Administrators B) Developers C) Users D) Designers Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases

109) Which of the following is not true about NoSQL DBMSs? A) They are an emerging market. B) They are the workhorse of the information systems industry today. C) They require developer patience with sometimes-cumbersome user interfaces. D) They are difficult to use. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases 110) What is the purpose of a database? Answer: The purpose of a database is to keep track of things. Lists of data involving a single theme can be stored in a spreadsheet; lists that involve data with multiple themes require a database. Thus, the purpose of a database is to keep track of things that involve more than one theme. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is the purpose of a database? Course LO: Discuss best practices for using and managing databases 111) Describe a database and its various elements. Answer: A database is a self-describing collection of integrated records. A byte is a character of data. In databases, bytes are grouped into columns, which are also called fields. Columns or fields are grouped into rows, which are also called records. Finally, a group of similar rows or records is called a table or a file. A database is thus a collection of tables plus relationships among the rows in those tables, plus special data, called metadata, that describes the structure of the database. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 112) Define primary key, foreign key, and relational databases. Answer: A primary key is a column or group of columns that identifies a unique row in a table. Columns that are primary keys in a table other than the one in which they reside are called foreign keys. Databases that carry their data in the form of tables and that represent relationships using foreign keys are called relational databases. (The term relational is used because another, more formal name for a table like those we are discussing is relation.) Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases

113) What is Metadata? Answer: Metadata are data that describe data are always a part of a database. The presence of metadata makes databases much more useful. Because of metadata, no one needs to guess, remember, or even record what is in the database. To find out what a database contains, we just look at the metadata inside the database. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the contents of a database? Course LO: Discuss best practices for using and managing databases 114) Describe a DBMS and its functions. List some of the popular DBMS products. Answer: A database management system (DBMS) is a program used to create, process, and administer a database. The first function of DBMS is that database developers use the DBMS to create tables, relationships, and other structures in the database. The second function of the DBMS is to process the database. Applications use the DBMS for four operations: to read, insert, modify, or delete data. A third DBMS function is to provide tools to assist in the administration of the database. Popular DBMS products are DB2 from IBM, Access and SQL Server from Microsoft, and Oracle from Oracle Corporation. Another popular DBMS is MySQL, an open source DBMS product that is license-free for most applications. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What is a database management system (DBMS)? Course LO: Discuss best practices for using and managing databases 115) What is a database app? Answer: A database app is a collection of forms, reports, queries, and application programs that serves as an intermediary between users and database data. Database apps reformat database table data to make it more informative and more easily updated. App programs also have features that provide security, maintain data consistency, and handle special cases. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 116) What are database application programs? Answer: Application programs process logic that is specific to a given business need. Another important use of application programs is to enable database processing over the Internet. For this use, the application program serves as an intermediary between the Web server and the DBMS and database. The application program responds to events, such as when a user presses a submit button; it also reads, inserts, modifies, and deletes database data. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases

117) Describe the differences between Enterprise DBMS and Personal DBMS. Answer: DBMS products fall into two broad categories. Enterprise DBMS products process large organizational and workgroup databases. These products support many, possibly thousands, of users and many different database applications. Such DBMS products support 24/7 operations and can manage databases that span dozens of different magnetic disks with hundreds of gigabytes or more of data. IBM's DB2, Microsoft's SQL Server, and Oracle's Oracle Database are examples of enterprise DBMS products. Personal DBMS products are designed for smaller, simpler database applications. Such products are used for personal or small workgroup applications that involve fewer than 100 users–and normally fewer than 15. In fact, the great bulk of databases in this category have only a single user. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the components of a database app? Course LO: Discuss best practices for using and managing databases 118) Describe entities in the context of data models. Answer: An entity is something that the users want to track. Examples of entities are Order, Customer, Salesperson, and Item. Some entities represent a physical object, such as Item or Salesperson; others represent a logical construct or transaction, such as Order or Contract. Entities have attributes that describe characteristics of the entity. Example attributes of Order are OrderNumber, OrderDate, SubTotal, Tax, Total, and so forth. Entities have an identifier, which is an attribute (or group of attributes) whose value is associated with one, and only one, entity instance. For example, OrderNumber is an identifier of Order, because only one Order instance has a given value of OrderNumber. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases 119) Summarize the database design process. Answer: Interviews with users lead to database requirements, which are summarized in a data model. Once the users have approved (validated) the data model, it is transformed into a database design. That design is then implemented into database structures. Interviews with users lead to database requirements, which are summarized in a data model. Once the users have approved (validated) the data model, it is transformed into a database design. That design is then implemented into database structures. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How do data models facilitate database design? Course LO: Discuss best practices for using and managing databases

120) How does normalization resolve the data integrity problem? Answer: Normalization is the process of converting a poorly structured table into two or more well-structured tables. If an attribute is entered correctly in one row and incorrectly in another, this leads to a problem called a data integrity problem. The data integrity problem can occur only if data are duplicated. Because of this, one way to eliminate the problem is to eliminate the duplication of data. The general goal of normalization is to construct tables such that every table has a single topic or theme. Database practitioners classify tables into various normal forms according to the kinds of problems they have. Transforming a table into a normal form to remove duplicated data and other problems is called normalizing the table. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 121) What are the steps involved in transforming a data model into a relational database design? Answer: First, the database designer creates a table for each entity. The identifier of the entity becomes the key of the table. Each attribute of the entity becomes a column of the table. Next, the resulting tables are normalized so that each table has a single theme. The next step is to represent relationships among the tables that are normalized. This includes adding foreign keys and additional tables for N:M relationships. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases 122) Explain the role of users in the database development process. Answer: A database is a model of how the users view their business world. This means that the users are the final judges as to what data the database should contain and how the records in that database should be related to one another. Thus, user review of the data model is crucial. When a database is developed, users must carefully review the data model. If they do not understand any aspect of it, they should ask for clarification until they do. Entities must contain all of the data they need to do their jobs, and relationships must accurately reflect their view of the business. If the data model is wrong, the database will be designed incorrectly, and the applications will be difficult to use, if not worthless. Developers should not proceed with the database design unless the data model is accurate. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How is a data model transformed into a database design? Course LO: Discuss best practices for using and managing databases

123) Why will DBMS remain the industry standard for the foreseeable future? Answer: Relational DBMS are the workhorse of the information systems industry today and likely will be for many years to come. As such, they are general-purpose tools. They will reliably store and process most organizational data. They remain the choice of organizations that process typical business data and that don't have the deep resources required to build a special-purpose DBMS to suit their unique needs. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases 124) Why are NoSQL databases likely to be used only by wealthy organizations with unique database needs? Answer: As a rule, NoSQL DBMS products require substantial software knowledge, considerable training, and developer patience with sometimes-cumbersome user interfaces. As of 2018, there is no standard, easily learned query language such as SQL. Difficulty of use, need for high-level expertise, and the fact that few organizations can afford to convert their relational data to NoSQL format (of whatever flavor) mean that, for the foresee-able future, NoSQL databases are likely to be used only by wealthy organizations with unique database needs. They will most often be used for new databases that will not require conversion of existing relational data. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do NoSQL DBMS differ from relational DBMS? Course LO: Discuss best practices for using and managing databases Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 5 AI and Robots 1) Artificial intelligence (AI) is software that enables an IS to mimic or simulate human intelligence. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 2) Intelligence acquires, stores, and applies knowledge, but it broadens the Acquire activity to include creation. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 3) AI can learn from millions of records. Answer: TRUE Difficulty: Easy 107 Copyright © 2022 Pearson Education, Inc.

AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 4) Artificial Intelligence work began in the 1940s shortly after the advent of the digital computer. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 5) The first stage in the intelligence process is the development phase when the AI system is built. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 6) Reasoning AI systems acquire, store, and apply knowledge in the form of logic. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 7) A pattern-matching AI system also seeks to act from perceptions, but does not try to copy the reasoning methods humans use. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 8) The effectiveness objective of pattern-matching AI is to think and act rationally. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 9) Both intelligence and pattern-matching systems share two common efficiency objectives. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 108 Copyright © 2022 Pearson Education, Inc.

10) The effectiveness objective of a reasoning-based AI is to think and act like a human. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 11) With the advent of computing power and Big Data, pattern matching AI is becoming more common. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 12) Both types of AI have the same five components as other IS: hardware, software, data, procedures, and people. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security

13) An algorithm is a series of computer instructions, like a recipe. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 14) Variables with three of more values are called Boolean variables. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 15) Procedures are also connections among rules and the weights given to each rule. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 16) When the AI system is under development, experts contribute rules, connections, and weights. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 17) When the AI system is in use, people play an interactive role with the knowledge stored by the system, more of a partnership than a dependence. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 18) Expert systems are rule-based systems that encode data from human knowledge in the form of If/Then rules. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security

19) Rules that are stored in the expert system, are sometimes referred to as a knowledge base. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 20) An optical engine applies logical rules to the knowledge base to derive new knowledge. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 21) A technique of AI inspired by the networks of neurons in our brains and central nervous systems is a neural network. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 22) Each node in a neural network connects to many other nodes, and working together the network of nodes produces an output. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 23) Machine learning cannot occur after development, while in use. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 24) In unsupervised machine learning we have a relationship or model in mind before we train the AI system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security

25) We do not know the structure of the data beforehand with unsupervised learning. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 26) Patients can use AI expert systems to diagnose and better understand their own illnesses. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 27) DeepFace can accurately differentiate human faces about 85 percent of the time. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 28) Microsoft uses SharePoint, the leading business collaboration software, to store knowledge about employees. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 29) Doctors do not often consider IBM Watson's explanations and follow its advice for a number of patients. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 30) Credit card companies can use neural network AI to identify fraudulent transactions. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security

31) Formal language processing studies how AI systems acquire, store, and apply natural language data, and how computers make sense out of human language. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 32) Statements that specify that if a particular condition exists, then some action should be taken are If/Then rules. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 33) After the development phase, users interact with the live system to apply those rules to a particular heart patient. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 34) The environment for an event or idea that throws light on its meaning is called context. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 35) Common examples of narrow AI include generating a recommendation, spotting a fraudulent financial transaction, understanding a sentence, or driving a car. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 36) The Turing test is a famous conversational challenge for AI. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security

37) Broad AI understands an environment in a way similar to how individuals do. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 38) Superintelligence is a system that can exceed human intelligence on any subject. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 39) Bill Gates first coined the term, AI will gain enough intelligence to initiate a runaway cycle of self-improvement that eventually leads AI to turn on us. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 40) Modern robot work began in the early 1950s in the form of reprogrammable manipulators. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security 41) By the early 1960s robots could locate and assemble models. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security 42) Advances in AI have led to rapid improvement in computer vision, which in turn has allowed robots to operate much more effectively. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security

43) The ability to operate, at least in part, without direct human intervention is autonomy. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 44) The three D's used to determine if a role is more suitable for a robot include dull, dirty, and dangerous. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 45) Ambient AI is an inconspicuous, omnipresent system that autonomously responds to our inputs via voice, gesture, or other natural means. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 9: What new AI and robots will affect processes in 2031? Course LO: Describe different methods of managing IS security 46) The first stage in the intelligence process is the ________ phase when the AI system is built. A) acquiring B) development C) use D) storing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 47) ________ is software that enables an IS to mimic or simulate human intelligence. A) Intelligence B) Open source C) Knowledge management D) Artificial intelligence Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security

48) ________ is having knowledge and acting on it. A) Wisdom B) Artificial intelligence C) Intelligence D) Opportunity Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 49) Artificial Intelligence work began in the ________ shortly after the advent of the digital computer. A) 1970s B) 1940s C) 1950s D) 1960s Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security 50) When a driverless car perceives it needs to turn in 10 seconds, it slows the car down before every turn. This type of AI system is often referred to as ________. A) Big Data AI B) Good Old Fashioned AI C) Traditional AI D) Pattern-matching AI Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 51) Which of the following AI systems use logic? A) Logical AI B) Reasoning AI C) Good Old Fashioned AI D) Pattern-matching AI Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security

52) A ________ system seeks to act from perceptions, but does not try to copy the reasoning methods humans use. A) Logical AI B) Reasoning AI C) Good Old Fashioned AI D) Pattern-matching AI Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 53) ________ AI acquire, store, and apply knowledge in the form of logic. A) Pattern-matching B) Good Old Fashioned C) Reasoning D) Big Data Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 54) Which element of an AI system are often specific rules or statements about a domain, such as "faces are round" or "dogs are animals"? A) hardware B) data C) procedures D) people Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 55) Logic or unconventional algorithms that learn, are goal centered, and are narrow and specific in an AI system are ________. A) data B) procedures C) people D) software Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 117 Copyright © 2022 Pearson Education, Inc.

56) Which of the following is not something experts contribute when the system is under development? A) rules B) connections C) weights D) relationships Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 57) Which of the following is not one of the five components of IS? A) Procedures B) Users C) Hardware D) Software Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 58) Which component of IS would match an AI IS of traditional computing system or a robotic device? A) Data B) Procedures C) Hardware D) Software Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 59) What are common rules used in expert systems? A) If/Then B) Loop C) If/For D) Next/Then Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security

60) A(n) ________ applies logical rules to the knowledge base to derive new knowledge. A) human expert B) knowledge engineer C) inference engine D) user interface Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 61) Our minds are comprised of ________ neurons. A) 100 million B) 100 billion C) 1 trillion D) 100 thousand Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 62) ________ are not one of the layers found in a neural network. A) Input layers B) Output layers C) Hidden layers D) Data layers Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 63) ________ encompass(es) all techniques that use algorithms to discover patterns in data and evaluate their own performance. A) Hidden layers B) An inference engine C) Neural networks D) Machine learning Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security

64) Which of the following statements about supervised machine learning is true? A) We do not ask the AI to find patterns. B) We supervise the AI by telling it to find specific variables. C) We have a relationship or model in mind before we train the AI system. D) We know the structure of our data beforehand. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 65) Google search and facial recognition software are two common examples of ________. A) unsupervised machine learning B) supervised machine learning C) NLP D) deep learning Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 66) Which of the following is not something studied by natural language processing relative to AI? A) acquire B) store C) extract D) apply Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 67) Recently IBM's Watson has learned about cancer and various treatment options. It continues to acquire knowledge as it reads the more than ________ new research papers published every day. A) 8,000 B) 10,000 C) 15,000 D) 20,000 Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 68) Microsoft uses ________, to store knowledge about employees. A) SharePoint 120 Copyright © 2022 Pearson Education, Inc.

B) Excel C) Access D) Word Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 69) A neural network to recognize and authenticate human faces was built by ________. A) Twitter B) Instagram C) Snapchat D) Facebook Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 70) DeepFace can accurately differentiate human faces about ________ percent of the time. A) 75 B) 97 C) 100 D) 86 Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 71) Which of the following is not a business process supported by AI as mentioned in the chapter text? A) Locating Expertise B) Fraud Detection C) GPS Mapping D) Image Classification Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security

72) Which of the following is not a challenge of AI? A) low expectations B) difficult to develop C) expensive to develop D) can require many labor hours from expensive experts in the domain under study and AI designers Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 73) AI is limited in ________. A) context B) difficulty C) creativity D) intelligence Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 74) The environment for an event or idea that throws light on its meaning is ________. A) relevance B) context C) creativity D) intelligence Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 75) Which of the following is not something experts fear about AI? A) replacement of jobs currently done by people B) will become too complex C) could become unreliable D) may grow to be self-sufficient Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security

76) Which of the following is not a challenge of AI? A) intended consequences B) expense C) expectations D) context identification Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 77) A famous conversational challenge for AI is the________ test. A) narrow AI B) broad AI C) Gates D) Turing Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 78) ________ is not a specific type of AI. A) Singularity B) Ultraintelligence C) Narrow D) Broad Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 79) According to futurist ________, AI will gain enough intelligence to initiate a runaway cycle of self-improvement that eventually leads AI to turn on us. A) Ray Kurzweil B) Elon Musk C) Peter Norvig D) Steven Hawking Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security

80) ________ sees a future where humans and AI are partners. A) Bill Gates B) Peter Norvig C) Elon Musk D) Ray Kurzweil Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 81) ________ is not a distinguishing attribute of a robot. A) Autonomy B) Computerized C) Lifelike D) Physical Motion Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security 82) Modern robot work began in the early ________ in the form of reprogrammable manipulators. A) 1930s B) 1940s C) 1950s D) 1960s Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security 83) ________ is not an example of a fully autonomous robot. A) Warehouse AGV B) Big Dog C) Amazon drone D) Honda ASIMO Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security

84) Which of the following is not one of the three Ds that are a good way to determine a role for a robot? A) Dull B) Dirty C) Durable D) Dangerous Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 85) The role of inspecting drying paint would fall under which attribute of a robot's role? A) Durable B) Dangerous C) Dull D) Dirty Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 86) Of the robots listed below, which does not engage in roles that are dull? A) warehouse AGV B) Honda ASIMO C) Amazon drone D) military drone Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 87) There are a number of challenges of robots. Which of the following is not one of those challenges? A) human unemployment B) harm to human life C) invulnerable to threats D) insurance Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security

88) ________ is a strength of AI and robots compared to humans. A) Resiliency B) Creative C) Quality D) Flexibility Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 89) Humans have the strength of ________ as compared to AI and robots. A) scale B) low development cost C) speed D) consistency Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 90) An inconspicuous, omnipresent system that autonomously responds to our inputs via voice, gesture, or other natural means is a(n) ________. A) healthcare AI B) ambient AI C) deepfake D) autonomous database Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 91) Define artificial intelligence and the two phases that are part of the intelligence process. Answer: Artificial intelligence (AI) is software that enables an IS to mimic or simulate human intelligence. The first stage is the development phase when the AI system is built. The second is the use phase that occurs when the AI is operating, largely independently. In other words, the system is built first, then set it loose to apply itself in the real world. In the use phase, the name we give the AI system is agent, the AI agent. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is AI and why is it important? Course LO: Describe different methods of managing IS security

92) What are some of the differences between reasoning AI and pattern-matching AI? Answer: Reasoning AI systems use logic. They acquire, store, and apply knowledge in the form of logic. They use logical rules. AI systems using this type of logic and reasoning use probability, induction, cause and effect, and planning as knowledge to acquire, store, and apply. A pattern-matching AI system also seeks to act from perceptions, but does not try to copy the reasoning methods humans use. Instead of using the logic that a human would use, the AI agent matches perceived data with stored data. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the AI process? Course LO: Describe different methods of managing IS security 93) What are the five components of IS? What is a corresponding artificial intelligence IS for each one? Answer: Hardware — Traditional computing system or a robotic device. Software — Logic or unconventional algorithms that learn, are goal centered, and are narrow and specific. Data Domain specific, often rules (e.g., "faces are round") and weights of rules. Procedures - Methods for converting implicit expertise; or the steps to get expertise. People - Experts give rules and initial weights; end users input data and interpret output. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an AI system? Course LO: Describe different methods of managing IS security 94) Explain what machine learning is and give an example. Answer: Machine learning is a broader term that encompasses all techniques that use algorithms to discover patterns in data and evaluate their own performance. An example of machine learning while in use is an email spam filter. A neural network displaying machine learning would observe which emails users rescue from clutter and junk folders and which ones they don't and figure out a pattern so that future emails can be filtered more accurately. The spam filter continues to learn from day-to-day use. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security

95) Describe and explain natural language processing (NLP). Answer: An example of a pattern-matching system using the neural network technique is natural language processing (NLP). Natural language processing studies how AI systems acquire, store, and apply natural language data, and how computers make sense out of human language. In a NLP system, different layers attempt to figure out different things in an act of speech. At a higher layer, the algorithm needs to figure out if the speech act was a statement or question, but to do this it must first, at a lower layer, figure out which words of a given sentence are the different parts of speech such as nouns, verbs, and adjectives. If it too often mistakes "answer" as a noun when it is a verb in a question, the system can use deep learning to increase the weight for "answer" as a verb when the speech act is a question. Through this deep learning, the system's stored knowledge of human language continues to improve. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does an AI system support AI activities? Course LO: Describe different methods of managing IS security 96) Provide at least 4 examples of business processes that AI can support and a brief description of each. Answer: Business processes could include medical diagnosis, locating expertise, fraud detection, human authentication, image classification, and web advertisement placement. WebMD asking patients a series of questions, Microsoft using SharePoint to store knowledge about employees, credit card companies using neural networks to identify fraudulent transactions, and Facebook's use of facial recognition are all examples of these in use. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can AI support business processes? Course LO: Describe different methods of managing IS security 97) What are some off the challenges of AI? Answer: AI is difficult and expensive to develop. A single AI application can require many labor hours from expensive experts in the domain under study and AI designers. A second challenge is the high expectations of AI. Importantly, AI is limited in creativity, and creativity is often necessary for intelligence. Finally, AI may generate unintended consequences. Some experts fear that AI may replace many jobs currently accomplished by people. Others are concerned that AI systems will become so complex that people will not be able to understand them and will trust them too much when the system is wrong or too little when it is right. Finally, some experts fear that AI may grow to be self-sufficient. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security

98) Define and explain the differences between broad AI and narrow AI. Answer: Narrow and broad AI describe two levels of intelligence. Narrow AI accomplishes a narrowly defined intelligent task such as generating a recommendation, spotting a fraudulent financial transaction, understanding a sentence, or driving a car. Another example of narrow AI is intelligent conversation, and a famous conversational challenge for AI is the Turing test. An AI passes the Turing test if it can fool individuals into thinking they are talking with a real person. Narrow AI has been a tremendous success recently, and may one day soon pass its first Turing test. On the other hand, broad AI is a flexible and general intelligence that is applied across a broad set of tasks such as counseling, planning, or goal setting. Broad AI can accomplish these tasks because it understands an environment in a way similar to how individuals do. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the challenges of AI? Course LO: Describe different methods of managing IS security 99) What are the distinguishing attributes of robots and what is some of the history related to robotics? Answer: The distinguishing attributes of robots include autonomy, lifelike, and physical motion. The term "robot" first occurred in a 1921 Czech play about assembly-line mechanical men that rebel against their human masters. The first known use of the word "robotics" is attributed to science-fiction writer Isaac Asimov in his 1942 work "Runabout." Modern robot work began in the early 1950s in the form of reprogrammable manipulators, and by the late 1950s Stanford University developed a wobbly robot named "Shakey" who could move on wheels, focus on a TV screen, and in a limited way respond to its environment. By the early 1970s robots could locate and assemble models. As early as 1980, autonomous vehicles were driving 55 mph on German test tracks. By the late 1990s, robots became a consumer product–Hasbro's Furby in 1998 was a successful toy sold at Christmas. In 2000, robots were exploring remote Antarctica, collecting meteorite samples. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: What are the key elements of robots? Course LO: Describe different methods of managing IS security 100) What are the three Ds related to roles for robotics and what are some examples of each? Answer: Robots typically perform roles that are dull, dirty, or dangerous. These three D's are a good way to determine if a role might be more suitable for a robot than a person. Dull roles feature uninteresting, unexciting, repetitive tasks. There are many of these monotonous, boring, and tedious roles for robots. Dirty roles, unsanitary work in contaminated environments that would pose a health threat to people. Robots are well suited to do sewer reconnaissance, hazmat operations, mine exploration, waste management, and livestock nurturing. Robots are widely used for dangerous roles that would place people at risk of injury or harm. The most common uses involve military drones, space exploration, and bomb investigations and detonations. Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How are robots used in business? Course LO: Describe different methods of managing IS security 129 Copyright © 2022 Pearson Education, Inc.

Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 6 Information Systems Security 1) Information systems security is the process of preventing unauthorized access to an IS or modification of its data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 2) A vulnerability is some measure that individuals or organizations take to block the threat from obtaining the asset. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 3) Reducing risk always costs, and the elimination of all risk would be exceptionally expensive if not impossible. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 4) Security is rarely breached, and the frequency of security breaches will slow down in the future. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 5) Safeguards are a type of control; and like all controls, they limit behavior. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security

6) Poorly written application programs and procedures are sources of security threats. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 7) Human errors and mistakes include accidental or unintended problems caused by both employees and nonemployees. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 8) IP spoofing occurs when an intruder uses another site's IP address to masquerade as the other site. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 9) Sniffing is a term used to describe a variety of software that damages or disables computers. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 10) Human errors are typically procedure problems: incorrect procedures or procedural mistakes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 11) The most challenging aspect of security is businesses do not thoroughly test the security of their new systems before they are employed. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security

12) QR codes are a very popular mechanism for smartphones to use to connect to web services. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the additional threats and losses unique to mobile devices? Course LO: Describe different methods of managing IS security 13) Few individuals take security as seriously as they should, and most fail to implement even low-cost safeguards. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 14) The single most important safeguard for computer security is to create and use strong passwords. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 15) Most email and messaging are protected by encryption, and you should assume that anything you write in email or messaging is safe. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 16) If the vendor does not use https, it is still safe to use that online vendor. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 17) Removing and disabling cookies improves security, but your computer will be more difficult to use. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security

18) Your browser automatically stores a history of your browsing activities and temporary files that contain sensitive data about where you've visited, what you've purchased, and what your account names and passwords are. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 19) Security policies depend on whether the organization is governmental or nongovernmental. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 20) A company-wide security policy should include how employees and others can request changes to inaccurate data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 21) Increasingly security experts view the cloud as the least secure option for transferring security risks. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 22) No safeguard by itself is completely effective; there is no silver bullet, no simple solution. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 23) Safeguards restrict freedoms by limiting what employees can do. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security

24) Malware protection is an example of a data safeguard. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 25) Safeguards are cost effective and increase work efficiency. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 26) Technical safeguards block threats from obtaining an asset by using the hardware and software components of an information system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 27) The user name identifies the user and the password authenticates that user. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 28) It is safe to share a password if you don't send it via email. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 29) One type of attack on common passwords is brute force attack. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

30) A smart card uses personal physical characteristics such as fingerprints, facial features, and retinal scans to authenticate users. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 31) Users resist biometric identification because they feel it is invasive. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 32) A key is a physical device that is used to lock and unlock a message. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 33) Symmetric encryption is simpler and much faster than asymmetric encryption. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 34) A public key is like the combination lock, and the private key is like the combination. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 35) Most secure communication over the Internet uses a protocol called HTTP. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

36) A firewall can be a special use computer, or it can be an app on a general-purpose computer or router. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 37) Malware definitions–patterns that exist in malware code–should be downloaded frequently. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 38) Input validation is an example of secure design. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 39) An organization should store some back-up database copies off premises, possibly in a remote location. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 40) An organization should store all back-up database copies of premises for easier access. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 41) Human safeguards result when authorized users follow appropriate procedures for system use and recovery. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security

42) Given appropriate job descriptions, user accounts should be defined to give users the most possible privilege needed to perform their jobs. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 43) When hiring for high-sensitivity positions, extensive interviews, references, and background investigations are appropriate. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 44) Responsibility and accountability are important factors in enforcing security policies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 45) Standard human resource policies should ensure that system administrators receive notification in advance of the employee's last day so they can remove accounts and passwords. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 46) Companies often allow employees to use their own personal mobile device to conduct company activities, a policy called Bring Your Own Device (BYOD). Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 47) In most cases, companies can screen vendor, partner personnel and public users. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security

48) Departmental personnel should develop procedures for system recovery. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 49) Every organization should have an incident response plan as part of the security program. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How should organizations respond to security incidents? Course LO: Describe different methods of managing IS security 50) After the initial response to the disaster or incident, computer forensics can help determine the cause of the event. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How should organizations respond to security incidents? Course LO: Describe different methods of managing IS security 51) When a security incident does occur, it's important to slowly and carefully respond. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How should organizations respond to security incidents? Course LO: Describe different methods of managing IS security 52) Companies that invest in ________ have been shown to reduce the frequency and severity of their security losses. A) vulnerability B) safeguards C) targets D) modifications Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security

53) A ________ is a person or organization that seeks to obtain or alter data or other assets illegally, without the owner's permission and often without the owner's knowledge. A) target B) vulnerability C) security breach D) threat Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 54) ________ is simply the chance of loss. A) Threat B) Vulnerability C) Risk D) Target Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 55) ________ is simply the chance of loss. A) Threat B) Vulnerability C) Risk D) Target Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 56) When you buy something online, you provide your credit card data; when that data is transmitted over the Internet, it is an example of ________. A) threat B) vulnerability C) risk D) target Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security

57) Which of the following is a software threat? A) session hijacking B) overflow attack C) cross-site scripting (XSS) D) hacking Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 58) ________ is a technique for intercepting computer communications. A) Spoofing B) Phishing C) Pretexting D) Sniffing Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 59) ________ blocks access to a computer until the victim pays money to the attacker. A) Malware B) Spyware C) Ransomware D) Session Hijacking Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 60) Which of the following is an example of inadvertent human error? A) sabotage B) a procedure problem C) pretexting D) theft Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security

61) When an unsuspecting user accesses a fake Wi-Fi access point, which has the same name as a legitimate Wi-Fi access point, this is an example of a/an ________. A) cross site scripting (XSS) B) sniffing C) IP Spoofing D) evil twin Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 62) Which of the following is not an example of external threat that can affect software? A) overflow attack B) denial-of-service (DoS) C) pretexting D) usurpation Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 63) A/An ________ attack in which a malicious hacker floods a Web server with millions of bogus service requests that so occupy the server that it cannot service legitimate requests. A) overflow attack B) denial-of-service (DoS) C) advanced persistent threat (APT) D) usurpation Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 64) In a typical ________ attack, the criminal posts a reply to a discussion board but along with the plaintext reply adds malicious code invisible to the discussion board. A) brute force attack B) denial-of-service (DoS) C) cross-site scripting (XSS) D) SQL injection attack Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 141 Copyright © 2022 Pearson Education, Inc.

65) When criminals replace a legitimate user or software program with their own access or illegitimate software program to give the attacker unauthorized control of some part of the IS, it is known as ________. A) usurpation B) an overflow attack C) SQL injection attack D) malware Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 66) ________ is a sophisticated, possibly long-running computer hack that is perpetrated by large, well-funded organizations such as governments. A) Usurpation B) An overflow attack C) Advanced Persistent Threat (APT) D) Malware Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 67) ________ is a user threat related to hardware as it relates to mobile devices. A) Inadvertent data leakage B) Jailbreaking C) Rooting D) Accidents Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the additional threats and losses unique to mobile devices? Course LO: Describe different methods of managing IS security 68) The first safeguard against security threats is ________. A) use strong passwords B) to take security seriously C) use a secure https connection D) remove your browsing history Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 142 Copyright © 2022 Pearson Education, Inc.

69) ________ are small files that your browser stores on your computer when you visit Web sites. A) Temp files B) Browsing history C) Viruses D) Cookies Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 70) The preventative measures used by organizations to reduce IS security are called ________. A) encryption B) avoidance C) safeguards D) risks Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 71) Firewalls are an example of what type of safeguard? A) technical B) data C) procedural D) human Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 72) Security is a trade-off with ________. A) benefits B) risks C) freedom D) defense Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security

73) Which of these following is a true statement about using the cloud? A) Cloud vendors use current technology and can afford to hire leading security experts. B) Cloud vendors restrict freedoms by limiting what employees can do. C) Cloud vendors have complicated polices. D) Cloud vendors are not audited frequently. Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 74) Which of these following is a true statement about safeguards? A) safeguards increase work efficiency B) one safeguard by itself is completely effective C) safeguards are inexpensive D) safeguards restrict freedoms by limiting what employees can do. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 75) The process ________ of verifies the credentials of the individual seeking access to a computer resource. A) identification B) authentication C) encryption D) hardening Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 76) Which of the following is a valid difference between a password and user name? A) A password is used to encode information, whereas a user name is used to decode information. B) Unlike a password, a user name is more complex. C) A user name identifies the user, whereas a password authenticates the user. D) A user name is common among users, whereas a password is unique. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

77) Which of the following statements is true about biometric authentication? A) It uses personal physical characteristics for authentication. B) It is less invasive than other methods of authentication. C) It uses a microchip loaded with identifying data to authenticate users. D) It provides weak authentication compared to other methods. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 78) ________ is the process of transforming clear text into coded, unintelligible text for secure storage or communication. A) Code injection B) Pretexting C) Encryption D) Authentication Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 79) A number used to encrypt data is called a(n) ________. A) signature B) key C) cookie D) escrow Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 80) In the case of ________, the same key is used to encode and to decode a message. A) asymmetric encryption B) digital signatures C) symmetric encryption D) digital certificates Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

81) With asymmetric encryption, ________. A) separate keys are used for encoding and decoding B) encryption and decryption occur at the same time C) the same key is used to encode and to decode messages D) microchips loaded with identifying data are used to authenticate users Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 82) Which of the following is a difference between a public key and a private key? A) A private key is used for encoding messages, and a public key is used for decoding them. B) A public key is used in asymmetric encryption, whereas a private key is used in symmetric encryption. C) A public key is used in symmetric encryption, whereas a private key is used in asymmetric encryption. D) A public key is used for encoding messages, and a private key is used for decoding them. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 83) With HTTPS, data are encrypted using a protocol called the ________. A) Transmission Control Protocol B) Secure Socket Layer C) File Transfer Protocol D) Simple Mail Transfer Protocol Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 84) A/n ________ is a computing device that prevents unauthorized network access. A) firewall B) htpps protocol C) VPN D) tunnel Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

85) ________ is the process of reducing the vulnerabilities of a computer by restricting the functions and actions it is willing to perform. A) Secure Design B) Hardening C) Malware Protection D) Symmetric encryption Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 86) A ________ uses software or a dedicated computer to create a private network over the public Internet. A) secure design B) firewall C) VPN D) hardening process Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 87) A user logs onto a banking website with their user id: email address and password: qwerty. This password is very common, so the user is prompted to provide extra information, such as a simple challenge-response exercise, this is an example of ________. A) symmetric encryption B) asymmetric encryption C) biometric authentication D) CAPTCHA Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

88) ________ result/s when authorized users follow appropriate procedures for system use and recovery. A) Enforcement B) Accountability C) Human safeguards D) Compliance Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 89) Employee compliance is typically greatest when ________. A) companies monitor their security with periodic security audits B) a company establishes and enforces a mobile device policy C) companies establish security policies and procedures for the termination of employees D) management demonstrates, both in word and deed, a serious concern for security Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 90) Employee compliance is greater when ________. A) companies do not allow management access to data B) a company allows employees to use their own email and hardware C) companies allow employees to determine security protocol independently D) management demonstrates, both in word and deed, a serious concern for security Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 91) A ________ is a systematic evaluation of security by assessing how well the security safeguards conform to established criteria. A) security audit B) systems analysis C) a recovery procedure D) a security screening Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security

92) ________ concerns the creation of new user accounts, the modification of existing account permissions, and the removal of unneeded accounts. A) A recovery procedure B) Account management C) Security audit D) A security screening Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 93) The most important security safeguard for employees is ________. A) to be less trusting of others using the system B) defining of job tasks and responsibilities C) security policy training D) regularly monitoring for compliance Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 94) The ________ should also gather and preserve evidence for legal action. A) organization B) centralized reporting C) incident response plan D) forensics investigation Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How should organizations respond to security incidents? Course LO: Describe different methods of managing IS security 95) To be effective, information security must address unavoidable trade-offs. Describe two of these trade-offs. Answer: One trade-off is between risk and cost. Risk is simply the chance of loss; if the likelihood of a hack is greater than the chance of a virus, we would say the risk of a hack is greater than the risk of a virus. Reducing risk always costs, and the elimination of all risk would be exceptionally expensive if not impossible. A second trade-off is between security and freedom. For example, your online bank does not give you the freedom to do anything you wish online; it restricts, it controls, the types and sizes of your transactions so that the security of your accounts can be ensured. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 149 Copyright © 2022 Pearson Education, Inc.

96) What are some safeguards that can be taken by people/organizations to safeguard against threats and vulnerabilities? Answer: You can conduct online credit card transactions using https rather than http, you will be using an effective safeguard, and you will successfully counter the threat. Do not send your credit card data via email. Companies can require employees to have passwords to obtain the sensitive data, have procedures that state employees are not to post confidential data to any public site, such as Facebook, and training the employees on these procedures. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What is information systems security? Course LO: Describe different methods of managing IS security 97) What are the two main sources of security threats? Provide examples for each one. Answer: Human errors and mistakes include accidental or unintended problems caused by both employees and nonemployees. An example is an employee who misunderstands operating procedures and accidentally deletes customer records. Another example is an employee who, while backing up a database, inadvertently installs an old database on top of the current one. This category also includes poorly written application programs and poorly designed procedures. Finally, human errors and mistakes include physical accidents such as spilling water on a server. The second threat type is computer crime called attacks. This threat type includes hackers who break into a system as in the opening vignette as well as viruses and worms that infect computer systems. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 98) Provide a brief explanation for each of the three categories of security losses. Answer: A data loss occurs when a threat obtains data that is supposed to be protected–an unauthorized disclosure. Human errors are typically procedure problems–incorrect procedures or procedural mistakes. These problems can result in losses to software in the form of faulty service or denial of service. At times, human accidents cause loss of hardware or infrastructure, which represents the last loss type of security losses. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security

99) Describe the three types of impersonation that can lead to data loss and provide an example for each. Answer: Pretexting occurs when someone deceives by pretending to be someone else. A common pretext involves a telephone caller who pretends to be from a credit card company and claims to be checking the validity of credit card numbers: Phishing is a similar technique for obtaining unauthorized data that uses pretexting via email. The phisher pretends to be a legitimate company or individual and sends an email requesting confidential data, such as account numbers, social security numbers, passwords, and so forth. Spoofing is another term for someone pretending to be someone else. If you pretend to be your professor, you are spoofing your professor. IP spoofing occurs when an intruder uses another site's IP address to masquerade as that other site. Email spoofing is a synonym for phishing. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 100) What are the challenges of information systems security? Answer: Information security is a challenge for other reasons as well–attackers don't have to follow rules; data was designed to be copied and shared easily, not bottled up in a fortress; Big Data and the Internet of Things are constantly creating new data and types of data that must be secured; and firms like to use the newest but often insecure technology to build their applications. Another challenge is that security depends on everyone in the organization using good security practices; security is only as strong as the weakest link, the least secure employee. the most challenging aspect of security is that businesses do not have the time to thoroughly test the security of their new systems before they are employed. To do so costs too much money and time. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the most significant threats and potential losses they can cause? Course LO: Describe different methods of managing IS security 101) What are the recommended personal security safeguards? Answer: • Create strong and multiple passwords. • Send no valuable data via email or messaging. • Use https to buy from trusted Web sites. • Clear browser history, temp files, and cookies. • Regularly update antivirus software. • Use caution when using public machines or hot spots. • Log out after high-value activities. • Do not use USB drives. • Use your smartphone securely. • Use two-factor authentication when possible Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 102) What are five recommended smartphone security processes? 151 Copyright © 2022 Pearson Education, Inc.

Answer: Lock your phone and use advanced passcode features that require a fingerprint or six digits to gain access to the device. Also, turn on the data erase feature that will wipe your phone in the event of 20 straight incorrect logins, turn on automatic security updates, and turn off Bluetooth and Wi-Fi when not in use. Finally, be aware of access requests by apps running on your phone. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 103) What are the minimum requirements for a company wide security policy include? Answer: • What sensitive data the organization will store • How it will process that data • Whether data will be shared with other organizations • How employees and others can obtain copies of data stored about them • How employees and others can request changes to inaccurate data • What employees can do with their own mobile devices at work • What non-business-related actions employees can take with employee-owned equipment Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 104) Why are safeguards costly and sometimes restrictive? Answer: Security is a trade-off between risk and cost. Safeguards can be expensive as they reduce work efficiency by making common tasks more difficult, adding labor expenses. Security is also a trade-off with freedom. Safeguards restrict freedoms by limiting what employees can do. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security 105) Explain why using the cloud can help with risk management? Answer: Increasingly security experts view the cloud as a secure option; most believe the cloud is more secure than in-house options. The cloud has several advantages. Cloud vendors use current technology, they can afford to hire leading security experts, they remove physical access to the data, they require customers to simplify and streamline procedures, and they have benefited from the most frequent and thorough security audits in the security business. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security

106) Describe how SSL/TLS works when a system communicates securely with a Web site. Answer: The computer obtains the public key of the Web site to which it will connect. Then it generates a key for symmetric encryption. It encodes that key using the Web site's public key. It sends the encrypted symmetric key to the Web site. The Web site then decodes the symmetric key using its private key. From that point forward, the computer and the Web site communicate using symmetric encryption. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 107) What is two-factor authentication? Answer: In two-factor authentication, also called multifactor authentication, a password is used, and a second authentication step is also required. This second step may be something the user has, something the user is (biometrics), or, with mobile devices, where the user is located. For example, a bank Web site may require a user to provide a code sent to the user by text message sent to the user from the bank; a second example is using a device carried by the user that generates a time-based code required to log in. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How should you respond to security threats? Course LO: Describe different methods of managing IS security 108) List seven ways safeguards to avoid most malware: Answer: 1. Install antivirus and antispyware programs on your computer 2. Set up your anti-malware programs to scan your computer frequently 3. Update malware definitions 4. Open email attachments only from known sources. 5. Promptly install software updates from legitimate sources 6. Browse only in reputable Internet neighborhoods 7. Don't use questionable discussion boards Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security

109) What is a firewall and how do they work? What are two types of firewalls? Answer: A firewall is a computing device that prevents unauthorized access to parts of a network. A firewall can be a special use computer, or it can be an app on a general purpose computer or router. A perimeter firewall is located between the organization's network and the public Internet. In contrast, an internal fire-wall is located within an organization's network and limits movement of data between sections of the network. Firewalls must make decisions about which type of traffic to permit and which to restrict. Some firewalls base their decisions by inspecting each packet–evaluating its home, destination, contents, and other data to make the decision. These are called packet sniffers. Other firewalls can use more sophisticated rules and algorithms to evaluate the overall pattern of communication, the type of protocol being used, and other technical aspects to decide. In essence, a firewall acts like a filter. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How can technical and data safeguards protect against security threats? Course LO: Describe different methods of managing IS security 110) What are five human safeguards that can protect against security threats? Prove a brief description for each. Answer: Human Safeguards for Employees: If motivated and trained about security, employees can make the security task much easier. Human Safeguards for Nonemployee Personnel: Business requirements may necessitate opening information systems to nonemployee personnel–temporary personnel, vendors, partner personnel (employees of business partners), and the public. Account Administration: The administration of user accounts, passwords, and help-desk policies is another important human safeguard. Backup and Recovery Procedures: Backup procedures concern the creation of backup data to be used in the event of failure. Security Monitoring: Important monitoring Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How should organizations respond to security threats? Course LO: Describe different methods of managing IS security

111) List and briefly explain the 5 human safeguards for employees that help block security threats. Answer: Position Definitions: Effective human safeguards also include definitions of job tasks and responsibilities. In general, job descriptions should provide a separation of duties and authorities. Hiring and Screening: Security considerations should be part of the hiring process. Dissemination and Enforcement: Employees cannot be expected to follow security policies and procedures they do not know about. Therefore, employees need to be educated about the security policies, procedures, and responsibilities they will have. Termination: Companies also must establish security policies and procedures for the termination of employees. Mobile Device Security: security must be applied to the increasing number of mobile devices used by employees. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security 112) Why should every company have a security incident response plan? What steps are involved? Answer: First, every organization should have an incident response plan as part of the security program, and it should ensure employees know where to find it when an incident occurs. No organization should wait until some asset has been lost or compromised before deciding what to do. The plan should include how employees are to respond to security problems, whom they should contact, the reports they should make, and steps they can take to reduce further loss. The plan should provide centralized reporting of all security incidents. Such reporting will enable an organization to determine if it is under systematic attack or whether an incident is isolated. Centralized reporting also allows the organization to learn about security threats, take consistent actions in response, and apply specialized expertise to all security problems. The incident response plan should identify critical personnel and their off-hours contact information. These personnel should be trained on where to go and what to do when they get there. Finally, organizations should periodically practice incident response. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How can human safeguards protect against security threats? Course LO: Describe different methods of managing IS security Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 7 Using IS to Improve Processes 1) A business process is a sequence of activities for accomplishing a function. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 155 Copyright © 2022 Pearson Education, Inc.

2) Resources are defined as tasks within a business process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 3) Actors are resources who are either humans or computer hardware. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 4) A role is a subset of the activities in a business process that are performed by a particular actor. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 5) In a dynamic process, the activities typically follow a fixed predefined sequence. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 6) Since judgment and a tolerance for ambiguity are important, managerial processes typically have more human actors than strategic processes. Answer: FALSE Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 7) An objective is a desired goal an organization has decided to pursue. Answer: TRUE Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 8) An efficiency objective is one that focuses on doing the right things, thereby helping achieve organizational strategy. Answer: FALSE Difficulty: Easy 156 Copyright © 2022 Pearson Education, Inc.

AACSB: Information Technology; Ethical Understanding and Reasoning Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 9) Efficiency objectives seek to conserve limited resources while effectiveness objectives help achieve a company strategy. Answer: TRUE Difficulty: Easy AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 10) Processes can have effectiveness or efficiency objectives, or both. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 11) Efficiency and effectiveness occur only at the operational and strategic levels of processes. Answer: FALSE Difficulty: Easy AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 12) Inbound logistics processes receive, store, and disseminate product input. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes

13) The primary objective of sales and marketing processes is to find prospects and transform them into customers by selling them something. Answer: TRUE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 14) Operational service processes include Track Orders, Customer Support, and Customer Support Training. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 15) Providing after-sales support to enhance or maintain the value of a product is called service. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 16) Evaluating customer complaint patterns is an example of an operational customer service process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 17) Human resources processes assess the motivations and skills of employees; create job positions; investigate employee complaints; and staff, train, and evaluate personnel. Answer: TRUE Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 18) Technology development processes include designing, developing, and testing technology in support of the primary activities. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 158 Copyright © 2022 Pearson Education, Inc.

19) A strategic technology development process estimates the time required for each step in a software development process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 20) A managerial technology development process decides if a particular technology will be purchased or developed by the company. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 21) Every business process has one or more possible objectives. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 22) Clearly communicated objectives help process participants better understand how the process can be improved. Answer: TRUE Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 23) Managers need not make unstated objectives of a process explicit. Answer: FALSE Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 24) A reasonable KPI is one that is valid and compelling. Answer: TRUE Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes

25) The best KPIs are reasonable, accurate, and consistent. Answer: TRUE Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 26) Managers should not marry KPIs; they need to be able to move on when a better measurement option emerges. Answer: TRUE Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 27) Information systems can improve a process by adding or improving the data flow between activities in the same or different processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 28) Controls help limit wide variations in activities so that a process runs more consistently and smoothly. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 29) Information systems (IS) can improve a process by improving the control of activities in the process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 30) Automation means that a computer does an activity or a part of an activity that was once done by a person. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 160 Copyright © 2022 Pearson Education, Inc.

31) People are more capable than automated actors in low-judgment settings where well-known and repeatable activities are performed. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 32) One common way to improve an activity is to add resources to it. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 33) A process can be improved by creating a bottleneck. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 34) A process can be improved by outsourcing an activity. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 35) Activities of processes that do not involve information systems cannot be improved. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 36) Six Sigma is the most common approach to process improvement in the manufacturing industry. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes

37) Diagrams of suggested improvements are called "as-is" diagrams. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How do process teams diagram process improvement? Course LO: Discuss the role of information systems in supporting business processes 38) Process teams use BPMN diagramming to depict process improvements. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How do process teams diagram process improvement? Course LO: Discuss the role of information systems in supporting business processes 39) Information systems can hinder a process by restricting the flow of data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 40) The situation in which the data needed for a process activity is available and stored in an accessible location is called an information silo. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 41) The most complete fix to eliminate information silos is to duplicate the data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 42) A department uses its own system because it can be purchased and implemented more quickly than most enterprise solutions. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes

43) ________ processes are commonplace, routine, everyday business processes. A) Strategic B) Managerial C) Operational D) Transformational Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 44) James works at a local electronics store. He is responsible for ordering supplies, paying bills, and informing regular customers about the latest products that are available. James is responsible for the ________ processes at the store. A) strategic B) operational C) managerial D) transformational Answer: B Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 45) Which of the following is true about operational processes? A) Their procedures and instructions are frequently changed. B) They have more computerized actors than other types of processes. C) They are supported by executive support systems. D) They can be easily modified when compared to other types of processes. Answer: B Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 46) Which of the following information systems facilitate operational processes? A) expert systems B) executive support systems C) management information systems D) transaction processing systems Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes

47) ________ concern resource use and include planning, assessing, and analyzing the resources used by the company in pursuit of its objectives. A) Managerial processes B) Operational processes C) Transactional processes D) Strategic processes Answer: A Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 48) Lindsay works at a coffee shop in Chicago. Her responsibilities include assessing seasonal promotions, planning and scheduling cashiers, and determining which personnel to promote. Lindsay is in charge of ________ processes at the coffee shop. A) transformational B) strategic C) operational D) managerial Answer: D Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 49) Which of the following is true about managerial processes? A) They are more difficult to change than other types of processes. B) They seek to resolve issues that have long-range impact on the organization. C) They have fewer computerized actors compared to operational processes. D) They are facilitated by transaction processing systems. Answer: C Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 50) Which of the following processes typically seek to resolve issues that have long-range impact on an organization? A) transactional processes B) operational processes C) managerial processes D) strategic processes Answer: D Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 164 Copyright © 2022 Pearson Education, Inc.

51) Which of the following is true about strategic processes? A) They have broad scope and affect most of the firm. B) They occur more frequently than other types of processes. C) They are facilitated by management information systems. D) They have more computerized actors compared to other types of processes. Answer: A Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 52) Which of the following information systems support strategic processes? A) transaction processing systems B) management information systems C) executive support systems D) production systems Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 53) Corporate budgeting and introducing a new product are examples of ________. A) service processes B) operational processes C) managerial processes D) strategic processes Answer: D Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 54) When Naomi makes decisions regarding the location of a new franchise for her Italian restaurant and charts out the growth plan for her business over the next 5-8 years, her decisions relate to the ________ processes of her business. A) strategic B) operational C) managerial D) transactional Answer: A Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 165 Copyright © 2022 Pearson Education, Inc.

55) ________ means creating more output with the same inputs or the same output with fewer inputs. A) Quality B) Efficiency C) Sustainability D) Effectiveness Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 56) A(n) ________ objective is one that focuses on doing the right things, thereby helping an organization achieve its strategic goals. A) efficient B) myopic C) productive D) effective Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 57) Which of the following is true about objectives of processes? A) Objectives can occur only in the strategic process level. B) Objectives are mutually exclusive. C) An effectiveness objective aims to conserve resources. D) An efficiency objective aims to conserve resources. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 58) Which of the following primary activities of a value chain is responsible for receiving, storing, and disseminating product inputs? A) service B) operations C) inbound logistics D) sales and marketing Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 166 Copyright © 2022 Pearson Education, Inc.

59) Processes such as procurement, managing inventory, and evaluating potential suppliers are a part of ________. A) inbound logistics B) operations C) services D) outbound logistics Answer: A Difficulty: Easy AACSB: Information Technology; Analytical Thinking Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 60) Vera works at a bakery. She is in charge of ordering ingredients and boxes as well as receiving and paying for these items. With reference to inbound logistics processes, Vera is responsible for ________. A) order tracking B) inventory management C) procurement D) scheduling maintenance Answer: C Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 61) An example of a strategic inbound logistics process is ________. A) evaluating technology acquisition options B) evaluating customer complaint patterns C) evaluating outsourcing service options D) evaluating potential suppliers Answer: D Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 62) ________ processes schedule the equipment, people, and facilities necessary to build or assemble a product or provide a service. A) Human resources B) Sales and marketing C) Outbound logistics D) Operations Answer: D Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 167 Copyright © 2022 Pearson Education, Inc.

63) At the sandwich outlet where Betty works, assembling the submarine sandwiches is her responsibility. Betty is responsible for the ________ processes in the outlet. A) human resources B) operations C) inbound logistics D) service Answer: B Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 64) ________ processes collect, store, and distribute products to buyers. A) Sales and marketing B) Outbound logistics C) Service D) Operations Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 65) The sales process that records the sales order, ships the product, and bills the customer is a(n) ________ process. A) outbound logistics B) marketing C) service D) operations Answer: A Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 66) Which of the following is an example of a strategic sales and marketing process? A) evaluating promotional discounts B) awarding a refund C) managing inventory D) launching a new product Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 168 Copyright © 2022 Pearson Education, Inc.

67) Which of the following is an example of a managerial sales and marketing process? A) awarding a refund B) evaluating promotional discounts C) opening a new restaurant D) determining the payment policy Answer: B Difficulty: Easy AACSB: Information Technology; Analytical Thinking Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 68) Operational customer service processes include ________. A) authorizing incentives B) evaluating outsourcing options C) tracking orders D) scheduling maintenance Answer: C Difficulty: Easy AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 69) ________ include determining pay scales and authorizing types of incentives. A) Strategic service processes B) Strategic human resources processes C) Strategic marketing processes D) Strategic operations processes Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 70) Jennifer was recently hired by a software firm to investigate employee complaints, and train and evaluate personnel. Jennifer is in charge of the ________ processes in the software firm. A) operations B) service C) technology development D) human resources Answer: D Difficulty: Moderate AACSB: Analytical Thinking; Information Technology; Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes

71) Which of the following is an example of a strategic human resources process? A) deciding the organizational structure B) recruiting skilled personnel C) assessing employee performance D) training the organization's workforce Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 72) A(n) ________ technology development process tests whether newly developed software can handle tens of thousands of possible keystroke entries. A) operational B) managerial C) transformational D) strategic Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 73) A managerial technology development process includes ________. A) authorizing types of incentives and deciding organizational structure B) testing whether a newly developed software can handle thousands of possible keystroke entries C) deciding if a particular technology will be purchased or developed by the company D) estimating the time required for each step in a software development process Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 74) A(n) ________ technology development process decides if a particular technology will be purchased or developed by the company. A) strategic B) managerial C) operational D) transactional Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 75) ________ processes include processes in accounting, administration, quality assurance, and 170 Copyright © 2022 Pearson Education, Inc.

legal and financial areas. A) Human resources B) Technology development C) Infrastructure D) Service Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 76) ________ are referred to as quantities assigned to attributes. A) Codes B) Semantics C) Metrics D) Silos Answer: C Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 77) ________ are also called key performance indicators by process improvement experts. A) Objectives B) Measures C) Bottlenecks D) Procedures Answer: B Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 78) It is the ________'s job to specify the best KPIs or, if necessary, to improve the choice of KPIs and communicate these measures to process participants. A) customer B) manager C) process owner D) team Answer: B Difficulty: Easy AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes

79) Typically, information systems use ________ to improve processes to limit the behavior of users. A) control B) automation C) bottlenecks D) logistics Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 80) How can information systems be used to improve processes? A) by creating a bottleneck situation B) by improving one of the activities in the process C) by removing unproductive resources D) by minimizing automation Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 81) ________ means that a computer does an activity or a part of an activity that was once done by a person. A) Memorization B) Iteration C) Recursion D) Automation Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 82) ________ are unexpected or unwelcome outputs from a process that require an action. A) Variations B) Activities C) Exceptions D) Controls Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes

83) For many processes, ________ is the most reliable way to improve control. A) an information system B) the control of activities C) limiting the behavior of the activities D) automation Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 84) How can a process be improved by using process management principles? A) by automating the activities B) by minimizing the outsourcing of activities C) by removing unproductive resources from a process D) by creating a bottleneck Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 85) A(n) ________ occurs when one activity reduces the performance of the overall process. A) iteration B) breakeven condition C) bottleneck D) recursion Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 86) Which of the following approaches to process improvement seeks to improve process outputs by removing causes of defects and minimizing variability in the process? A) game theory B) Six Sigma C) the OMIS model D) linkage theory Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes

87) Which of the following is true about the Six Sigma project? A) It seeks to improve process outputs by removing the causes of defects. B) It maximizes the variability in a business process. C) It follows a very unstructured sequence of steps for measuring quality. D) Its goal is to ensure that at least 50 percent of products are free from defects. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 88) ________ is the return of a part of the output of process to the input. A) Slack B) A bottleneck C) Process Reengineering D) Feedback Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 89) As-is diagrams are ________. A) diagrams of future processes as predicted by the organizational team B) diagrams of current processes that need no improvement C) diagrams of the current process D) diagrams of suggested improvements to a process Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How do process teams diagram process improvement? Course LO: Discuss the role of information systems in supporting business processes 90) Ought-to-be diagrams are ________. A) diagrams of the current process B) diagrams of current processes that need no improvement C) diagrams of future processes as predicted by the organizational team D) diagrams of suggested improvements to a process Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How do process teams diagram process improvement? Course LO: Discuss the role of information systems in supporting business processes

91) ________ refers to a condition that exists when data needed for a process is unavailable because it is stored in an isolated, separated information system. A) Encapsulation B) Information silos C) Data warehousing D) Metadata publishing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 92) How can organizations completely fix the problem of information silos? A) by duplicating data and making it available to multiple processes B) by storing a single copy of the data in a shared database C) by allowing multiple processes to share an isolated data D) by restricting the data access to a single process Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 93) Which of the following is a reason for organizations to store data in separate databases? A) Each department in an organization may have different objectives. B) Organizations prefer to decentralize the control of data they use. C) Storing data in multiple databases completely eliminates information silos. D) Duplicated data becomes inconsistent when changes are made to one set of data. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 94) What are operational processes? Answer: Operational processes are commonplace, routine, everyday business processes. At a pizza shop, for example, these include ordering supplies, paying bills, and checking out customers. The procedures, or instructions, for these processes are changed very infrequently. Typically, there are more computerized actors in an operational process than in other types of processes. Finally, because many actors contribute to this process, changing operational processes is more difficult than changing other types of processes. Information systems that facilitate operational processes are sometimes called transaction processing systems (TPS). Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 175 Copyright © 2022 Pearson Education, Inc.

95) What are managerial processes? Answer: Managerial processes concern resource use. These processes include planning, assessing, and analyzing the resources used by the company in pursuit of its objectives. Managerial processes occur much less frequently and with many fewer computerized actors than operational processes. At a pizza franchise, for example, these processes include assessing seasonal promotions, planning and scheduling cashiers, and determining which personnel to promote. Information systems that facilitate managerial processes are often referred to as management information systems (MIS). Difficulty: Moderate AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 96) What are strategic processes? How are they different from managerial and operational processes? Answer: Strategic processes seek to resolve issues that have long-range impact on the organization. These processes have broad scope and impact most of the firm. Because judgment and a tolerance for ambiguity are important, there are typically more human actors than in operational or managerial processes. Examples of strategic processes at a pizza shop include deciding where to locate a new restaurant, corporate budgeting, and new product introduction. Information systems that support strategic processes are sometimes called executive support systems (ESS). Difficulty: Moderate AACSB: Information Technology; Interpersonal Relations and Teamwork Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 97) What is an objective? Answer: An objective is a desired goal an organization has decided to pursue. These objectives can be classified as efficient or effective. Efficiency means that a process creates more output with the same inputs or the same output with fewer inputs. An effective objective helps achieve an organizational strategy. To summarize, an efficiency objective aims to conserve resources, whereas an effectiveness objective helps achieve a company strategy. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes

98) Differentiate between efficient and effective objectives. Answer: Efficiency means creating more output with the same inputs or the same output with fewer inputs. An effective objective helps achieve organizational strategy. Efficiency objectives seek to conserve limited resources, whereas effectiveness objectives help achieve company strategies. In other words, effectiveness is doing the right things, whereas efficiency is doing things right. Objectives, unlike the other characteristics, are not mutually exclusive; processes can have effectiveness or efficiency objectives, or both. Difficulty: Moderate AACSB: Information Technology; Ethical Understanding and Reasoning Chapter LO: 1: What are the important characteristics of processes in organizations? Course LO: Discuss the role of information systems in supporting business processes 99) What are inbound logistics processes? Explain with the help of an example. Answer: Inbound logistics processes receive, store, and disseminate product input. Processes in inbound logistics include procurement, managing inventory, and evaluating potential suppliers. Procurement is an operational process that acquires goods and services. Procurement activities at a pizza shop include ordering ingredients and boxes, as well as receiving and paying for those items. Inventory management processes use past data to compute stocking levels, reorder levels, and reorder quantities in accordance with inventory policy. An example of a strategic inbound logistics process is the evaluation of potential suppliers. When the pizza shop orders ingredients, it only uses suppliers who were previously approved by the strategic process called supplier selection. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 100) Briefly describe the role of operations as one of the primary activities in the value chain. Answer: Operations transform inputs into outputs. Operations processes schedule the equipment, people, and facilities necessary to build or assemble a product or provide a service. Assembling and baking pizzas at a pizza shop are two operational operations processes. An example of a management operations process is scheduling maintenance on the ovens. Strategic processes evaluate if the pizza company should open another restaurant or change its menu. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes

101) What are outbound logistics processes? Answer: Outbound logistics processes collect, store, and distribute products to buyers. They are concerned with the management of finished-goods inventory and the movement of goods from that inventory to the customer. Outbound logistics processes are especially prominent for nonmanufacturers, such as distributors, wholesalers, and retailers. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 102) How does the business process of sales and marketing function? Answer: Sales and marketing provide the means and incentives for customers to purchase a product or service. The primary objective of sales and marketing processes is to find prospects and transform them into customers by selling them something. When a pizza chain, for example, mails promotions to prospects, it is executing its operational promotion process. Evaluating promotional discounts is a managerial marketing process. Examples of strategic marketing processes are launching a new product or hiring a new marketing firm. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 103) Describe operational, managerial, and strategic service processes with the help of an example. Answer: Providing after-sales support to enhance or maintain the value of a product is called service. Operational customer service processes include tracking orders, providing customer support, and customer support training. Customers call customer service to ask questions about their order status, to query and report problems with their accounts, and to receive assistance with product use. For example, when a customer calls a pizza shop about a late delivery, the store manager initiates a service process. This process records some of the key circumstances for later analysis and awards the customer a discount on a future purchase or the immediate delivery of another pizza. A management service process evaluates customer complaints to determine if there are patterns to the complaints such as day of the week or a particular delivery person. Evaluating outsourcing service options is a strategic service process. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes

104) What are human resources processes? Give examples of operational, managerial, and strategic human resources processes. Answer: Human resources processes assess the motivations and skills of employees; create job positions; investigate employee complaints; and staff, train, and evaluate personnel. Operational human resources processes recruit, compensate, and assess employee performance for the organization. Management processes address the development and training of the organization's workforce and planning for future needs. Strategic processes in human resources determine pay scales, authorize types of incentives, and decide organizational structure. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 105) What are technology development processes? Give examples of such processes at the operational, managerial, and strategic level. Answer: Technology development processes include designing, developing, and testing technology in support of the primary activities. An operational technology development process tests whether newly developed software can handle tens of thousands of possible keystroke entries. A managerial technology development process is a milestone development process that estimates time required for each step in a software development process. A strategic technology development process decides if a particular technology will be purchased or developed by the company. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are examples of common business processes? Course LO: Discuss the role of information systems in supporting business processes 106) How can management improve processes using process objectives? Answer: Every business process has one or more possible objectives. It is the job of the managers responsible for the process to specify the most appropriate objectives and convey those objectives to people who play roles in the process. When objectives are specified and clearly communicated, process participants better understand how the process can be improved. Often, a process will have unstated objectives, and managers should make these explicit. Managers in large firms must find a way to ensure objectives are well communicated to those executing them. Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes

107) What type of measure is used by managers for process improvement? What are the challenges involved? Answer: In process improvement, the measures selected by managers to use to assess process performance are called key performance indicators (KPIs). Specifying KPIs can be difficult, as it requires a very thorough knowledge of the process. Even then, some objectives are challenging to quantify. When considering measures, recognize they all have limitations and that the key business challenge is to select the best ones available and know their limits. To accurately assess an objective, it may be appropriate to have multiple KPIs. Managers should not marry KPIs they need to be able to move on when a better KPI option emerges. Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 3: How can management improve processes? Course LO: Discuss the role of information systems in supporting business processes 108) What are the five ways IS can improve a process? Answer: Improve an activity, improve data flow among activities, improve control of activities, use automation, and improve procedures. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 109) Explain the advantages and disadvantages of automating a process. Answer: The decision to automate can be challenging. Clearly computers have many advantages–productivity, speed, quality, scale, consistency, and reduction of human injury. Automated actors are more capable in low-judgment settings where well-known and repeatable activities are performed, like timing the inputs on an assembly line, holding an altitude for an airplane, or checking if every box has been completed on a form. But computers also break down unexpectedly and require maintenance. Humans, on the other hand, are uniquely able to deal with high-judgment activities that feature uncertainty or ambiguity like the diagnosis and treatment of illness, risk assessment, human communication, interaction, and learning. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes

110) Explain to role of a procedure and how improving a procedure can lead to process improvement. Provide an example. Answer: A procedure anchors an IS to a process. Each application of an IS to a process has a unique procedure. Often, a new system is purchased or a process is changed but the procedure is left unchanged. Procedures in business need to be constantly refined as technology changes and processes change. As you will find out in your career, keeping procedures current is easier said than done. For example, you might have a great phone but lousy Movie processes because you never learned how to search nearby theaters for show times or reviews. Your procedures are holding you back; fix those and your Movie process will get much better. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How can information systems be used to improve processes? Course LO: Discuss the role of information systems in supporting business processes 111) What are the business process principles that improve processes? Answer: One common way to improve an activity is to add resources to it. Another simple improvement is to remove unproductive resources from a process. A third technique is to improve the feedback generated by the process. Another technique is to remove a process bottleneck. A business process can also be improved by redesigning it–by changing its structure. A final way to improve the process may be to outsource an activity. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 112) Explain the Six Sigma approach to process improvement. Answer: The most common approach to process improvement, particularly in the manufacturing industry, is called Six Sigma. Six Sigma seeks to improve process outputs by removing causes of defects and minimizing variability in the process. Each Six Sigma project follows a very structured sequence of steps with quantified financial measures. Six Sigma gets its name from its goal that 99.99966 percent of process outputs will be free from defects. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can process management principles improve processes? Course LO: Discuss the role of information systems in supporting business processes 113) Why is it essential to diagram a process? Answer: Diagramming a process is typically necessary for team members to understand the process and to identify activities that must be changed. It is necessary for the redesign team to understand how the current process works and what the intended process should look like. Diagrams of the current process are typically called "as-is" diagrams, and diagrams of suggested improvements are called "ought-to-be" diagrams. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: How do process teams diagram process improvement? Course LO: Discuss the role of information systems in supporting business processes 181 Copyright © 2022 Pearson Education, Inc.

114) How can organizations fix information silos? Answer: One fix to the information silo problem is to duplicate the data–make a copy of the data that is isolated and make it available to the process that needs it. However, when duplicated, the data can quickly become inconsistent when changes are made to only one set of data. The most complete fix to eliminate information silos is to store a single copy of data in a shared database and connect the business processes to that database. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 115) Why do organizations store data in different databases? Answer: Organizations store data in separate databases for several reasons. Given a choice, organizational departments prefer to control the data they use; they are, after all, the experts about the data. For example, accountants know more than anyone about how the accounting database should be used, so it is natural for them to want to control how it is set up, what the data will look like, and how the database will be updated. Also, a department may have very different objectives than other departments in the firm. These objectives might be to minimize inventory or serve customers. A department system that supports a key objective, even if it is an information silo, might be a better solution for the department than an enterprise system that doesn't support that objective as well. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes 116) Explain why a department may legitimately seek to keep its data in multiple databases. Answer: There are legitimate reasons for a department to use its own database. Some processes use sensitive data that should not be shared with other processes such as tax data for accounting processes and healthcare claims data for the HR department. Also, a department system can be purchased and implemented more quickly than most enterprise solutions. Finally, departmental IS are much more affordable; enterprise systems can cost as much as 10 to 50 times as much as a single-department application. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How can an IS hinder a process? Course LO: Discuss the role of information systems in supporting business processes Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 8 Supporting Processes with ERP Systems 1) With information silos, the data needed by one process are stored in an information system designed and used in another process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? 182 Copyright © 2022 Pearson Education, Inc.

Course LO: Discuss the role of information systems in supporting business processes 2) Information silos create islands of automation that increase the performance of processes and make process integration easy. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Discuss the role of information systems in supporting business processes 3) An ERP system tackles the silo problem by bringing data together in a big database to help a company improve its processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 4) An ERP system use a centralized database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Discuss the role of information systems in supporting business processes 5) By consolidating data, a company can avoid the problem of having multiple versions of the same thing. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning

6) The challenges now involve updates and expansions, not the initial implementation. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 7) ERP system can improve a single process, but it interferes with the processes in an entire organization. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 8) Businesses have been using information systems to support their processes well before the Internet was invented. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 9) Material requirements planning provided financial tracking capabilities and the opportunity to schedule equipment and facilities. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 10) To execute a just in time delivery, unimpeded flows of data are essential between the supplier and manufacturer. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 11) The progress of information systems and business processes impact one another. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes

12) For a product to be considered a true enterprise resource planning product, it must include applications that integrate processes in supply chain management, manufacturing, customer relationship management, human resources, and accounting. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 13) An enterprise resource planning solution cannot be partially implemented. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 14) Writing new code to supplement an enterprise resource planning system is called customization. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 15) If a new enterprise resource planning customer has requirements that cannot be met via configuration, then the customer must stay with its current systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 16) Application code can be added to any enterprise resource planning implementation using specific application languages such as Java. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 17) An enterprise resource planning solution does not contain a company's actual operational data, but operational data can be entered during development and use. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 185 Copyright © 2022 Pearson Education, Inc.

18) Enterprise resource planning (ERP) systems rely on a DBMS to process and administer the ERP database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss best practices for using and managing databases 19) Transactional data are data related to events such as a purchase or a student enrollment. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss best practices for using and managing databases 20) Master data, used in an enterprise resource planning system, changes with every transaction. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 21) Transactional data, also called reference data, includes supplier names and addresses, item names and units of measure, and employee data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 22) A procedure is a set of instructions for a person to follow when operating an information system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 23) In the context of an enterprise resource planning (ERP) system, a systems analyst works for the ERP vendor or a third party, and helps budget, plan, train, configure, and implement the system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 186 Copyright © 2022 Pearson Education, Inc.

24) Users are the employees of the firm implementing the system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 25) Training an organization's users to become in-house trainers for enterprise resource planning systems reduces the total expenses. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 26) Organizations implementing an enterprise resource planning system are restricted from designing new business processes. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 27) A gap analysis highlights the differences between the business requirements that emerge from strategic planning and the capabilities of the enterprise resource planning system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How are ERP implementations accomplished? Course LO: Describe the uses of enterprise systems and enterprise resource planning 28) One of the shortcomings of using an enterprise resource planning product is that data sharing does not occur in real time. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 29) A benefit of an ERP system for the organization is converting its processes to the well-integrated, inherent, best-practice processes of the ERP vendor. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 187 Copyright © 2022 Pearson Education, Inc.

30) Customers and suppliers want to do business with an organization that does not use an ERP system. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 31) To help managers spot trends and changes, enterprise resource planning systems can provide managers with dashboards. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 32) Selecting the right ERP vendor is one of them most challenging decisions for an organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 33) A long list of "likes" will lead to a long list of gaps and a difficult implementation. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 34) The configuration decisions that implementation teams must make include decisions about item identifiers, order size, and bill of material. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 35) Data issues are rarely a decision implementation challenge. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 36) The actions and attitudes of the people in the client organization can make implementation even more challenging. 188 Copyright © 2022 Pearson Education, Inc.

Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 37) Management's failure to anticipate cultural resistance may negatively impact self-efficacy. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 38) Most companies have not survived an initial implementation and have not learned how to cope with many of the problems of an ERP implementation. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 39) When a firm customizes the ERP software, it is always compatible with new ERP software versions. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 40) Among companies of varied sizes, the availability of skilled business and IT analysts is an important difference that has a major impact on enterprise resource planning. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 41) Small organizations expand IT from one person to a small staff, but frequently this staff is isolated from senior-level management. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 42) Midsize organizations have a full IT staff that is headed by the chief information officer. Answer: FALSE 189 Copyright © 2022 Pearson Education, Inc.

Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 43) International enterprise resource planning solutions are designed to work with multiple currencies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 44) International organizations can maintain multiple instances of enterprise resource planning implementation for each country, business unit, or region. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 45) Intel has the largest market share in the enterprise resource planning industry. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 46) A Microsoft Dynamics implementation is larger in scale and functionality compared to Oracle and SAP. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 47) All the enterprise resource planning products of Microsoft Dynamics are well integrated with Microsoft Office and Microsoft's development languages. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning

48) Oracle is the gold standard of enterprise resource planning (ERP) products and offers the most extensive line of ERP products. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 49) SAP produces and sells cost-specific platforms to speed up the configuration process. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 50) A configuration is a distinct and logical grouping of processes. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 51) The SAP Business Suite runs on an application platform called NetSuite. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 52) With ________, the data needed by one process are stored in an information system designed and used in another process. A) information silos B) automation C) encapsulation D) data warehousing Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Discuss the role of information systems in supporting business processes

53) Which of the following statements is true about ERP systems? A) It utilizes a centralized database. B) It provides users with access to metadata files that describe the location of an organization's data. C) It appears to be an integrated database to the user. D) It prohibits information silos from communicating with each other and sharing data. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 54) In an organization, data from a new sale is immediately sent to the database and that new data updates the pace of production and the procurement of supplies. This is an example of enterprise resource planning process ________. A) customization B) duplication C) integration D) decentralization Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 55) By the 1970s, manufacturing companies began to use software called ________ to efficiently manage inventory, production, and labor. A) enterprise application integration B) enterprise resource planning C) business performance management D) material requirements planning Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes

56) ________ integrates manufacturing and supply where manufacturing occurs just as raw materials arrive. A) Just in case manufacturing B) Just in time delivery C) Material requirements planning D) Economic order quantity Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 57) Which of the following federal laws required companies to exercise greater control over their financial processes? A) the Gramm—Leach—Bliley Act B) the Volstead Act C) the Tower Amendment D) the Sarbanes-Oxley Act Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 58) Which of the following activities is included in supply chain management? A) sales prospecting B) bill of materials C) inventory management D) customer management Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supply chain management and performance 59) Which of the following activities is included in customer relationship management? A) procurement B) marketing C) bill of materials D) payroll Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the functions of customer relationship management (CRM) systems 193 Copyright © 2022 Pearson Education, Inc.

60) Which of the following activities is included in human resources? A) capacity planning B) call center support C) benefits administration D) cash management Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Discuss the role of information systems in supporting business processes 61) The customization of enterprise resource planning software to meet different customer requirements without changing the program code is called ________. A) modularity B) configuration C) automation D) process blueprinting Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 62) Writing new code to supplement an enterprise resource planning system is called ________. A) automation B) customization C) integration D) centralization Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 63) A test that evaluates if the system as it is configured for the company meets the company's requirements is called a ________ test. A) performance B) functional C) integration D) standardized Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How are ERP implementations accomplished? Course LO: Describe the uses of enterprise systems and enterprise resource planning

64) A ________ is a set of instructions for a person to follow when operating an information system. A) procedure B) metadata C) process D) database Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 65) A ________ works for an enterprise resource planning (ERP) vendor or a third party and helps budget, plan, train, configure, and implement an ERP system. A) developer B) consultant C) systems analyst D) business analyst Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 66) A ________ understands process aspects of enterprise resource planning (ERP) and helps plan, configure, and implement an ERP system for company use. A) trainer B) project manager C) business analyst D) developer Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 67) ________ write additional code where necessary for implementing enterprise resource planning systems. A) Consultants B) Business analysts C) Architects D) Developers Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 195 Copyright © 2022 Pearson Education, Inc.

68) The inherent processes defined in an enterprise resource planning system are also known as ________. A) inbound processes B) stored procedures C) transaction logs D) process blueprints Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 69) Which of the following is an organizational benefit of using an enterprise resource planning system? A) It maintains individual databases for each department. B) It facilitates data sharing in real time. C) It minimizes the use of dashboards. D) It promotes the duplication of data. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 70) Organizations conduct ________ to identify the differences between the business requirements that emerge from strategic planning and the capabilities of the chosen enterprise resource planning system. A) access controls B) inherent processes C) gap analysis D) dashboards Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning

71) The ________ is used to specify the raw materials, quantities, and subassemblies needed to create a final product. A) bill of material B) bill of lading C) item identifier D) dashboard Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 72) When organizations upgrade existing enterprise resource planning systems, they can be challenged by the version lock problem because of ________. A) employee self-efficacy B) heavy customization C) organizational culture D) minimal configuration Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 73) Which of the following statements is true of small organizations? A) They expand IT from one person to a small staff, but frequently this staff is isolated from senior-level management. B) They employ only one or two IT analysts who not only manage the enterprise resource planning system, but also the entire IS department. C) They employ several IT analysts to manage the enterprise resource planning system. D) They have a full IT staff that is headed by the chief information officer. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning

74) When international firms consolidate all their operations within a large enterprise resource planning implementation, it is referred to as a(n) ________. A) single instance B) multiple instance C) inherent process D) configuration decision Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 75) The ________ is a business and IT professional who heads the IT staff in large organizations, sits on the executive board, and is an active participant in organizational strategic planning. A) chief executive officer B) chief information officer C) chief operating officer D) chief financial officer Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 76) Which of the following companies has the largest market share in the enterprise resource planning industry? A) Epicor B) SAP C) Oracle D) Microsoft Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 77) Oracle's high-quality HR products are branded as ________. A) PeopleSoft B) NetWeaver C) Siebel D) Epicor 10 Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 198 Copyright © 2022 Pearson Education, Inc.

78) Oracle's high-quality CRM products are branded as ________. A) PeopleSoft B) Siebel C) Epicor 10 D) NetWeaver Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 79) Which of the following statements is true about Oracle and its enterprise resource planning (ERP) products? A) It is known primarily for its retail-oriented ERP software. B) It is known to create easy-to-use products. C) It is known to produce fully-featured products with superior performance. D) It is known for its cost-effective solutions. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 80) Which of the following is the gold standard of enterprise resource planning products? A) Oracle B) Microsoft C) Epicor D) SAP Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 81) Tier 1 enterprise resource planning vendors such as SAP and Oracle are more appealing to large firms due to ________. A) opportunities for corporate-wide standardization B) industry-specific systems C) solutions for specific business functions D) pay-as-you-go cloud services Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 82) Enterprise resource planning vendors outside of Tier 1 are establishing a strong niche in the 199 Copyright © 2022 Pearson Education, Inc.

industry by focusing on ________. A) preconfigured platforms B) industry-specific systems C) standardized processes D) fully-featured products Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 83) The core business of SAP AG is ________. A) providing consulting and training services in enterprise resource planning software B) offering pay-as-you-go cloud services C) developing personal computers, laptops, and smartphones D) selling licenses for software solutions and related services Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 84) All SAP implementations start with an SAP ________. A) user training program B) industry-specific platform C) gap analysis D) requirement analysis Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 85) Which of the following best defines a module? A) It is a distinct and logical grouping of processes. B) It is a preconfiguration platform devised for a particular industry. C) It is a collection of interconnected and interdependent programs. D) It is an inherent process in an enterprise resource planning system. Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning

86) Which of the following statements is true about SAP and its enterprise resource planning products? A) SAP has made a rapid move to thin-client, cloud-based solutions. B) SAP addresses the needs of only small and mid-sized organizations. C) SAP provides industry-specific platforms that are configured to a particular company. D) SAP has overcome its dependence on client-server architecture. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 87) ________, one of the more well-known versions of SAP, was the first truly integrated system that was able to support most of an organization's major operational processes. A) R/3 B) NetWeaver C) ABAP D) NetSuite Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 88) The SAP Business Suite runs on an application platform called ________. A) R/3 B) NetSuite C) NetWeaver D) Baan ERP Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning 89) What are information silos? What problems do they cause in a database? Answer: An information silo is isolated data stored in separated information systems. With information silos, the data needed by one process are stored in an information system designed and used in another process. Because information silos exist in isolation from one another, they create islands of automation that can reduce the performance of processes and make process integration difficult. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Discuss the role of information systems in supporting business processes

90) How can the problem of information silos be solved? Answer: In business, the silo problem is solved by ERP systems. ERP systems are very large enterprise IS that bring data together in a big database and help a company improve its processes. An ERP system is an IS designed to integrate processes by consolidating data. An ERP system creates a single database. By consolidating data, a company can avoid the problem of having multiple versions of the same thing–for example, storing data about a customer in two silos and not knowing which customer data is correct. ERP systems provide a set of industry-leading processes that are well integrated with each other. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What problem does an ERP system solve? Course LO: Describe the uses of enterprise systems and enterprise resource planning 91) Describe how businesses used computers for inventory purposes before the advent of the Internet. Answer: Although the term enterprise resource planning (ERP) is relatively new, businesses have been using IS to support their processes for 50 years, well before the Internet. In the 1960s, a business could use a dedicated phone line, a computer card reader, and punch cards to send inventory orders to a supplier. By the 1970s, businesses began to buy their own mainframe computers, and manufacturing companies began to use software called material requirements planning (MRP) to efficiently manage inventory, production, and labor. As computing power became cheaper, manufacturing resource planning (MRPII) was developed that added financial tracking capabilities as well as the opportunity to schedule equipment and facilities. The business environment continued to evolve with the advent of just in time (JIT) delivery, which integrated manufacturing and supply. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning

92) What are the different business functions integrated by enterprise resource planning (ERP) products? Answer: For a product to be considered a true ERP product, it must include applications that integrate the processes in the following business functions: - Supply chain management (procurement, sales order processing, inventory management, supplier management, and related activities) - Manufacturing (manufacturing scheduling, capacity planning, quality control, bill of materials, and related activities) - Customer relationship management (sales prospecting, customer management, marketing, customer support, call center support) - Human resources (payroll, time and attendance, HR management, commission calculations, benefits administration, and related activities) - Accounting (general ledger, accounts receivable, accounts payable, cash management, fixed-asset accounting) Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 93) Explain configuration in enterprise resource planning (ERP) systems. What are its limitations? Answer: The enterprise resource planning (ERP) software typically resides on servers and on client machines in the company. The software can be customized to meet customer requirements without changing program code. This customization is called configuration. There are limits to how much configuration can be done. If a new ERP customer has requirements that cannot be met via configuration, then the customer either needs to adapt its business to what the software can do or write application code to meet its requirements. Code can be added to any ERP implementation using specific application languages such as Java. The most common use of this application code is to create company-unique reports from ERP data. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 94) What are the different types of data in an enterprise resource planning (ERP) database? Answer: In an ERP database, there are several different types of data. Transactional data are data related to events such as a purchase or a student enrollment. Examples of transactional data include purchases at the bookstore, student tuition payments, deliveries, and payroll expenditures. Master data, also called reference data, are data used in the organization that don't change with every transaction. Master data includes supplier names and addresses, item names and units of measure, and employee data. ERP systems also designate organizational data, data about a university such as the location of its warehouses, the mailing address of the buildings, and the names in its financial accounts. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 203 Copyright © 2022 Pearson Education, Inc.

95) Explain the different categories of people involved with enterprise resource planning (ERP) systems. Answer: The people involved with an ERP system fall into three general categories. Users are the employees of the firm implementing the system. IT analysts, also called systems analysts, are also employees. IT analysts have specialized training or education that enables them to support, maintain, and adapt the system after it has been implemented. Many analysts have a background or education in MIS or IT. A third role is consultant. A consultant works for the ERP vendor or a different company, called a third party, and helps budget, plan, train, configure, and implement the system. These consultants may work at the implementing firm for a period before, during, and after the implementation. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 96) Explain what gap analysis is and the two tests that are performed during the final phase of the implementation process. Answer: A gap analysis is a study that highlights the differences between the business requirements that emerge from strategic planning and the capabilities of the ERP system. The Implementation team then develops processes it will use and configures the software. In the final steps, the company's IT staff writes procedures, trains the users, and tests the system. Testing during this final phase occurs in two ways. First, a functional test evaluates if the system as it is configured for the company meets the company's requirements, in short, does it behave as desired. In contrast, a performance test, or stress/load test, ensures that the system is able to accommodate the expected workload and transactions in an efficient manner. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How are ERP implementations accomplished? Course LO: Describe the uses of enterprise systems and enterprise resource planning 97) Explain the steps to create a functioning enterprise resource planning (ERP) system. Answer: First, the top managers of the company revisit their strategy so that the ERP system has clear goals. Next, they conduct a gap analysis, a study that highlights the differences between the business requirements that emerge from strategic planning and the capabilities of the ERP system. The implementation team then develops processes it will use and configures the software. In the final steps, the company's IT staff writes procedures, trains the users, and tests the system. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the elements of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning

98) What are the benefits of using an enterprise resource planning (ERP) system? Answer: The benefits of using an ERP system are: - It converts its processes to the best-practice processes of the ERP vendor. - Data sharing occurs in real time. - Management can be more insightful and provide better oversight. - It solves the information silo problem. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: What are the benefits of an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 99) Explain the kinds of configuration decisions that enterprise resource planning (ERP) implementation teams must make. Answer: One configuration decision is item identifiers. Another set of issues is order size–the organization must specify the number of items in a standard order. A third detailed decision is the structure of the bill of material (BOM). For each of these configuration decisions, the implementation teams must first decide if any of the configuration choices offered by the ERP vendor are suitable. If not, the team must then weigh the advantages and disadvantages of using customized software. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 100) What are the Management-related issues faced by enterprise resource planning (ERP) implementation teams? Answer: One common problem occurs when top management believes the hard part of the implementation process is the decision to implement. Managers believe that once that decision is made, they can move on. Instead, they need to stay involved, ensure implementation is monitored, resources are committed, good procedures are written, and thorough training is conducted. A second top management problem is overselling the vision of what the system will do. Often management can be blinded by the benefits of the promised system and not look carefully at the assumptions behind the promises. This can lead top management to buy more features than it needs or than the organization can implement successfully. When an ERP system is implemented, the way work is done is changed and the culture typically bites back. Changing the culture can lead to employee resistance as the change in work habits may threaten self-efficacy, which is a person's belief that he or she can be successful at his or her job. ERP projects are very large, and many businesses struggle to find managers with the project management skills necessary to make these projects successful. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning

101) How does team collaboration impact enterprise resource planning (ERP) implementation teams? Answer: Implementing an ERP system requires extensive and effective collaboration; when collaboration breaks down, implementation suffers. Consultants from the vendor, IT analysts from the client firm, and end users all know things the others don't know; these missing bits of knowledge can only be learned by collaborating. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 102) What are the individual-related issues faced by enterprise resource planning (ERP) implementation teams? Answer: As mentioned, implementation changes the work people do. However, the people whose work has changed often receive no benefit from the change; they get the pain but no gain. A final challenge is how to get the firm's people to learn and use ERP software that is not particularly user-friendly. ERP screens are jargon filled, are difficult to correct, offer unhelpful help, and are hard to explain. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning 103) Explain the challenges that companies face with and ERP upgrade. Answer: Resistance may be particularly strong if people believe the upgrade will be as disruptive as the original implementation. Resistance may be particularly strong if people believe the upgrade will be as disruptive as the original implementation. A third problem with upgrades is sometimes referred to as version lock. Version lock occurs when a client firm has so customized ERP software that it has locked itself out of upgrading to new ERP software. Finally, upgrades are challenging if the client firm has not developed a long-term strategy for ERP updates. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What are the challenges of implementing an ERP system? Course LO: Describe the uses of enterprise systems and enterprise resource planning

104) What enterprise resource planning (ERP) needs are unique to midsized and large organizations? Answer: Midsize organizations may expand IT from one person to a small staff, but frequently this staff is isolated from senior-level management. Such isolation can create misunderstandings and distrust. Because of the expense, organizational disruption, and length of ERP projects, senior management must be committed to the ERP solution. When IT management is isolated, such commitment is difficult to obtain and may not be strong. This issue is problematic enough that many ERP consultants say the first step for these firms in moving toward ERP is to obtain deep senior-level commitment to the project. Large organizations have a full IT staff that is headed by the chief information officer (CIO), a business and IT professional who sits on the executive board and is an active participant in organizational strategic planning. ERP implementation will be part of that strategic process and, when begun, will have the full backing of the entire executive group. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 105) Explain the benefits of an enterprise resource planning (ERP) application to multinational organizations. Answer: ERP brings huge benefits to multinational organizations. International ERP solutions are designed to work with multiple currencies, manage international transfers of goods in inventories, and work effectively with international supply chains. Even more important, ERP solutions provide a worldwide consolidation of financial statements on a timely basis. As a result, they can produce one set of financial reports, better analyze where costs could be saved, and identify where production can be optimized. While it is advantageous for these international firms to consolidate all their operations within one large ERP implementation, called a single instance, some firms maintain multiple instances, or an ERP for each country, business unit, or region. For these firms, the advantages of one set of data, a single financial system and worldwide process standards are outweighed by the cost of consolidating or the disparity among divisions. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What types of organizations use ERP? Course LO: Describe the uses of enterprise systems and enterprise resource planning

106) Name two vendors of enterprise resource planning (ERP) solutions and explain how they are unique. Answer: Oracle is an intensely competitive company with a deep base of technology and high-quality technical staff. Oracle developed some of its ERP products in-house and has complemented those products with others obtained through its acquisition of PeopleSoft (high-quality HR products) and Siebel (high-quality CRM products). Beginning with its first DBMS product release, Oracle has never been known to create easy-to-use products. It is known, however, for producing fully-featured products with superior performance. They are also expensive. SAP is the gold standard of ERP products. SAP is used by midsized and large companies and offers the most extensive line of ERP products. It has recently introduced Business ByDesign and Business One as smaller, more lightweight options for small to midsized companies, and it is expanding its cloud offerings with Cloud for Financials and Cloud for Customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: Who are the major ERP vendors? Course LO: Describe the uses of enterprise systems and enterprise resource planning 107) How does SAP speed up the configuration process? What is a module? Answer: To speed up the configuration process, SAP produces and sells industry-specific platforms. An industry-specific platform is a preconfiguration platform that is appropriate for a particular industry, such as retail, manufacturing, or health care. All SAP implementations start with an SAP industry-specific platform and are further configured to a particular company. A module is a distinct and logical grouping of processes. For example, SD, the Sales and Distribution module, is a collection of processes supervised by the marketing department. These processes record customer data, sales data, and pricing data. Not every module is implemented in every installation of SAP. Companies that install SAP choose modules for their implementation. Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning

108) Explain the important characteristics of SAP's enterprise resource planning (ERP) system. Answer: SAP was the first ERP software designed to work at different companies. One of the more well-known versions of SAP is called R/3. The R/3 program (where R means "real time") was the first truly integrated system that was able to support most of an organization's major operational processes. SAP R/3 uses classic, native client, client-server architecture, rather than a browser-based approach that would be easier to use on a wide range of devices, such as smartphones and other thin clients. SAP later rebranded its R/3 software as the SAP Business Suite. The SAP Business Suite runs on an application platform called NetWeaver. NetWeaver connects SAP to hardware, third-party software, and output devices. NetWeaver also has SOA capabilities that help it integrate SAP with non-SAP applications. These features enable the Business Suite/NetWeaver approach to be more adaptive to new IT developments compared to R/3. ABAP is SAP's high-level application language that is used to enhance the functionality of an SAP implementation. Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: What makes SAP different from other ERP products? Course LO: Describe the uses of enterprise systems and enterprise resource planning Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 9 Supporting the Procurement Process with SAP 1) Procurement is an operational process executed hundreds or thousands of times a day in a large organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 2) Buying raw materials from an external vendor is an example of procurement. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 3) Finding reliable suppliers is a procurement objective among organizations. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 4) Outbound logistics is the primary activity in the procurement process that involves receiving, 209 Copyright © 2022 Pearson Education, Inc.

storing, and disseminating inputs to products. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 5) A company stores products it manufactures in its raw materials inventory. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance

6) Products awaiting delivery to customers are stored in the finished goods inventory. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 7) A three-way match refers to the consistency in data between the invoice, purchase order, and the receipt of goods. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 8) Before the advent of SAP, most large organizations typically consolidated data in a single database. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 9) The time required for a supplier to deliver an order is called the advanced time. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 10) A major disadvantage of implementing SAP is that it weakens the internal controls that exist within an organization. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

11) A purchase requisition (PR) is an internal company document that issues a request for a purchase. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Explain how IS can be used to gain and sustain competitive advantage 12) The structure of an industry can be determined by using Porter's five forces model. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Explain how IS can be used to gain and sustain competitive advantage 13) Average time of Create Purchase Order activity is an efficiency objective KPI. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 14) Average time of Receive Goods activity is an effectiveness objective KPI. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 15) All approved vendors appear on a source list at CBI. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 16) Improved roll up time and internal controls are other benefits of the CBI Procurement process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 212 Copyright © 2022 Pearson Education, Inc.

17) Roll up, in the context of SAP at CBI, means to compile and summarize the accounting transactions, into financial reports. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 18) External controls systematically limit the actions and behaviors of employees, processes, and systems within the organization to safeguard assets and achieve objectives. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 19) The SAP benefit of sales and procurement processes being integrated is an efficiency benefit in the CBI Procurement process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 20) A purchasing manager is responsible for the approval of a purchase request to be converted into a purchase order. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 21) During the procurement process, the purchase requests that are generated using SAP are shared directly with suppliers. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

22) Every SAP screen has a title. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 23) Users can input data in the header section of an SAP screen. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 24) While using SAP, the purchasing manager must notify the corresponding suppliers after each purchase order has been saved. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 25) A three-way check must be performed in a procurement process before posting an outgoing payment to a vendor. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 26) Each actor involved in the procurement process interacts with SAP using a single, shared screen. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

27) SAP systems store all procurement data in a single database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 28) SAP makes procurement processes more responsive to customer demands. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 29) Organizations typically implement SAP systems for just one process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 30) Supply chain processes are improved when processes share data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 31) SAP enables organizations to share real-time data with suppliers, but it slows down the procurement process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance

32) Sharing data leads to an increase in the bullwhip effect in the supply chain. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 33) The bullwhip effect occurs when companies order more supplies than are needed due to a sudden change in demand. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 34) Process integration occurs when processes are mutually supportive. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 35) SAP process integration enables organizations to quickly respond to new consumer demands. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 36) Many firms first use SAP to improve just one function of the business, such as the supply chain. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance

37) The Supplier Relationship Management (SRM) process complicates the supply chain process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 38) The implementation of SAP does not require existing employees to change or upgrade their skills. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance 39) ERP systems produce lots of data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance 40) New employee skills include data skills, process focus, and understanding automation. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance 41) The ability to understand processes and how to improve them is process focus. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance

42) AI and robots are a key emerging technology for procurement and the supply chain. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance 43) Additive manufacturing is also known as 3D printing. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance 44) ________ is the process of obtaining the goods and services needed by an organization. A) Production B) Procurement C) Lead generation D) Outbound logistics Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 45) A car manufacturer purchases components such as seat belts, fenders, window seals, and panels from outside sources. This process of obtaining goods is called ________. A) procurement B) production C) lead generation D) outbound logistics Answer: A Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance

46) Which of the following activities in the value chain obtains raw material and semi-finished goods needed for the production process of an operations activity? A) inbound logistics B) customer service C) marketing and sales D) lead generation Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 47) Which of the following is a written document that requests the delivery of a specified quantity of a product or service in return for payment? A) memorandum of association B) purchase order C) term sheet D) itemized bill Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 48) A software consulting firm sends a formal document to its supplier, requesting the delivery of 50 desktop computers. This is an example of a(n) ________. A) term sheet B) memorandum of association C) purchase order D) itemized bill Answer: C Difficulty: Easy AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance

49) The basic material used in the manufacturing or primary production of goods is referred to as ________. A) finished goods B) equipment C) spare parts D) raw materials Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 50) Raw materials inventory stores product components and other goods that are ________. A) manufactured within an organization B) assembled and ready to be shipped to customers C) returned by customers D) procured from suppliers Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 51) Finished goods inventory contains items that are ________. A) used as inputs in the firm's manufacturing process B) awaiting delivery to customers C) returned by customers due to quality issues D) procured from suppliers for the production process Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance

52) RSA Cycles, Inc. is a leading bicycle manufacturer. The company manufactures bicycles that cater to different market segments. Which of the following items stored in RSA's warehouse is considered finished goods inventory? A) metal parts obtained from small suppliers B) tires that are procured from a vendor C) bicycles that are to be shipped to retailers D) tools that workers use in the production process Answer: C Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 53) When does the lead time in a procurement process come to an end? A) when an order arrives at the warehouse B) when an invoice is received from the supplier C) when ordered goods are reflected in the purchase order database D) when an order is placed with a supplier Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 54) Which of the following documents is received by a firm from its suppliers and contains details such as the amount due to the supplier and the purchase order number? A) memorandum of association B) term sheet C) invoice or itemized bill D) purchase requisition Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance

55) Which of the following is a major concern for organizations having departments that build their own systems? A) information silos B) centralized database C) itemized bills D) integrated systems Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 56) What is the time required for a supplier to deliver an order called? A) delivery time B) lead time C) advance time D) expected time Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 57) ________ systematically limit(s) the actions and behaviors of employees, processes, and organizational systems to safeguard assets and to achieve objectives. A) Internal controls B) Collaborative systems C) Distributed systems D) Augmented reality Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

58) Which of the following is the first activity in implementing an ERP system? A) selecting an ERP vendor B) creating a single inventory database C) strategy D) configuring the ERP software Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Describe the uses of enterprise systems and enterprise resource planning 59) Compiling and summarizing the accounting transactions into financial reports within SAP is known as ________. A) totaling B) consolidating transactions C) financial reporting D) roll up Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 60) Within the Procurement process at CBI each screen has a(n) ________. A) title B) footer C) table D) update button Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Explain how IS can be used to gain and sustain competitive advantage 61) Which of the following is not a KPI for the Effectiveness objective in the new Procurement process? A) number of products to sell B) stockouts of new, hot-selling products C) average time of Receive Goods activity D) average lead time to supply customer orders Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Explain how IS can be used to gain and sustain competitive advantage 223 Copyright © 2022 Pearson Education, Inc.

62) A(n) ________ is an internal company document that issues a request for a purchase. A) term sheet B) request tracker C) itemized bill D) purchase requisition Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 63) Which of the following statements is true about the effect of implementing SAP in the accounting process? A) Agents' training and experiences will vary leading to several mistakes in the purchase orders. B) Real-time data sharing will reduce administrative time. C) Three-way discrepancies will take time to correct. D) Weak internal controls will lead to limited scrutiny of purchases. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 64) The systems manager of an organization issues a request to the purchasing manager for the purchase of 15 new desktop computers. This document is an example of a(n) ________. A) request tracker B) purchase requisition C) term sheet D) itemized bill Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

65) An organization shares ________ with its suppliers using SAP. A) sales revenue information B) purchase orders C) purchase requests D) warehouse statistics Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 66) Which of the following actions is most likely performed manually in a procurement process using SAP? A) notifying the supplier B) generating a purchase request C) approving a purchase requisition D) creating a unique PO number Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 67) Which of the following is most likely the final activity of the procurement process after the implementation of SAP? A) approving a purchase requisition B) generating an invoice C) creating a goods receipt D) posting an outgoing payment Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

68) The returns management process in a supply chain manages ________. A) returns of faulty inputs used in the production process B) relationships with internal suppliers C) returns of faulty products for businesses D) financial returns from sales and other sources Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 69) Which of the following is an objective of the returns management process? A) efficiently getting the defective products to the right supplier in the supply chain B) automating and simplifying a variety of supply chain processes C) determining the criteria for supplier selection and adding and removing suppliers D) designing and integrating all supply chain processes Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 70) SAP can reduce the lead time in procurement processes due to its ability to ________. A) perform gap analysis B) share real-time data C) perform manual processes D) decentralize information Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance

71) The ________ effect occurs when companies order more supplies than are needed due to a sudden change in demand. A) just-in-time B) roll-up C) bullwhip D) Doppler Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 72) A large manufacturing company offered a 40 percent discount on all its products for a short period of time. As a result, the retailers ordered and stocked more products than needed to cash in on the opportunity. This scenario exemplifies the ________. A) just-in-time effect B) roll-up process C) Doppler effect D) bullwhip effect Answer: D Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 73) Which of the following is a potential solution to the bullwhip effect? A) increasing the number of levels in the supply chain B) increasing manufacturing capacity C) reducing the number of salespeople D) sharing sales order data in real-time Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance

74) A ________ occurs when a limited resource greatly reduces the output of an integrated series of activities or processes. A) bottleneck B) buy-in C) three-way match D) bullwhip Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 75) ________ determines the criteria for supplier selection and adds and removes suppliers from the list of approved suppliers. A) The Procurement Process B) Data Sharing C) The Supplier Evaluation Process D) Supply Chain Management (SCM) Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 76) Which of the following statements is true about the impact of SAP on organizations? A) Organizations become less process-focused after implementing SAP. B) Organizations tend to avoid outsourcing after implementing SAP. C) Inter-departmental data sharing reduces after implementing SAP. D) People require new sets of skills after implementing SAP. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance

77) ________ will increasingly be used in supply chains to create more accurate forecasts, identify risks, optimize stocking levels, evaluate credit of suppliers, reduce cost, and detect fraud. A) 3D Printing B) Analytics C) AI D) Robots Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance 78) In additive manufacturing, objects are manufactured through the ________. A) placement of integrated chips on objects B) deposition of successive layers of material C) superimposition of computer data on physical objects D) use of computer graphics and animation exclusively Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance 79) Describe procurement in an organization. Answer: Procurement is the process of obtaining goods and services such as raw materials, machine spare parts, and cafeteria services. Procurement is an operational process executed hundreds or thousands of times a day in a large organization. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 80) What are the main procurement activities? Answer: The three main procurement activities are Order, Receive, and Pay. These three activities are performed by actors in different departments. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance

81) Describe the importance of procurement as an organizational process. Answer: Procurement is the most common organizational process. Every organization, from single employee startups to Walmart, from county to federal governments, relies on its Procurement process. For businesses that make products, procurement is a vital process as all the raw material and parts needed for production or assembly must first be procured. However, even firms that provide services depend on procurement. For example, hospitals need thousands of health care products, and universities need food, equipment, landscaping services, and mascots. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 82) What are the typical procurement objectives of an organization? Answer: Many organizations have similar procurement objectives; the most common are saving time and money. According to some estimates, a well-managed procurement process can spend half as much as a poorly managed procurement process to acquire the same goods. Other procurement effectiveness objectives include finding reliable, high-quality suppliers; maintaining good relationships with existing suppliers; and supporting other processes in the organization such as sales and operations. Procurement processes also seek to be efficient—to be less costly and to generate fewer failures, such as stockouts, errors, and products that need to be returned to suppliers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 83) Describe raw materials inventory and finished goods inventory. Answer: Raw materials inventory stores components like bicycle tires and other goods procured from suppliers. These raw materials must be on hand for assembly operations to occur in the Production process. Finished goods inventory is the completed products awaiting delivery to customers. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Procurement process? Course LO: Discuss the role of information systems in supply chain management and performance 84) Define the term lead time. Answer: The time required for a supplier to deliver an order is called the lead time. The lead time ends when the order arrives at the warehouse and the Receive Goods activity occurs. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 230 Copyright © 2022 Pearson Education, Inc.

85) What is a three-way match? Answer: Before the accountants pay the bill, they make sure that the data on the invoice matches the data in the purchase order and the goods receipt an activity called three-way match. If the data in this three-way match are consistent, a payment is made, and the payment data are posted to the Accounting database. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Procurement process at CBI work without SAP? Course LO: Discuss the role of information systems in supply chain management and performance 86) Explain what some of the benefits of SAP are for the CBI Procurement process. Answer: With SAP's real-time data sharing, administrative time spent can be reduced. The Create PO, Receive Goods, and Pay Supplier activities are faster when data is entered once, then shared in later steps. Further, because the data are entered into only one database, and controls on inputs reduce input mistakes, three-way match errors are reduced. In addition to data sharing, SAP integrates CBI's processes, which leads responsiveness to customer demands. With SAP, accounting has up-to-the-minute accounting data and does not have to wait until the end of the month to roll up, or compile and summarize the accounting transactions, into financial reports. Scrutiny of purchases is improved as real-time financial data is more informative to managers, who now request more financial reports and use them more frequently. This improved oversight is an example of an internal control. Internal controls systematically limit the actions and behaviors of employees, processes, and systems within the organization to safeguard assets and achieve objectives. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 87) What are internal controls? Answer: Internal controls systematically limit the actions and behaviors of employees, processes, and systems within the organization to safeguard assets and achieve objectives. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance

88) Describe the purchase requisition activity after the implementation of SAP. Answer: A purchase requisition (PR) is an internal company document that issues a request for a purchase. This activity is automated in an SAP system, where a computer is the actor, not a human. For example, a PR is automatically generated when the amount of raw material inventory goes below the reorder point. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 89) Describe the benefits of implementing SAP in the accounting process. Answer: SAP enables the sharing of real-time data which limits the errors caused, and sharing of real-time data reduces the roll-up time. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Procurement process work at CBI with SAP? Course LO: Discuss the role of information systems in supply chain management and performance 90) Describe the following: (1) Supplier Relationship Management (2) Returns Management (3) Supplier Evaluation Answer: The Supplier Relationship Management (SRM) process automates, simplifies, and accelerates a variety of supply chain processes. Broader than the single procurement process, SRM is a management process that helps companies reduce procurement costs, build collaborative supplier relationships, better manage supplier options, and improve time to market. The Returns Management process manages returns of faulty products for businesses. Efficiently getting the defect to the right supplier and charging the right cost to each company in the supply chain are the goals of the Returns Management process. The Supplier Evaluation process determines the criteria for supplier selection and adds and removes suppliers from the list of approved suppliers. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 91) When does the bullwhip effect occur? Answer: The bullwhip effect occurs when companies order more supplies than are needed due to a sudden change in demand. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve supply chain processes at CBI? Course LO: Discuss the role of information systems in supply chain management and performance 232 Copyright © 2022 Pearson Education, Inc.

92) What are some of the new employee skills that will be used in the supply chain at CBI with SAP? Answer: Supply chain employees will need to use data to discover which inventory has the longest lead times, which plants are most efficient, and which distribution networks have the fewest returns. Another skill that is expected at CBI is a process focus; that is, the ability to understand processes and how to improve them. Supply chain employees will need to be able to see and understand inputs, process activities, and outputs both within the company and with partner firms. Finally, ERP systems will increasingly depend on effective automation. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance 93) Explain why it is important to develop the new employee skills in the supply chain with SAP, even if one does not anticipate working in supply chain. Answer: Skills in data, process, and automation are needed everywhere in business. Using time in school to practice working with data is useful. Learning about processes, not just in one's major, but in other classes so that one can understand how processes across a business work together is imperative. Last, studying how automation can be used effectively is of great importance. ERP systems have changed the game of business. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does the use of SAP change employee skills? Course LO: Discuss the role of information systems in supply chain management and performance 94) Describe how 3D printing technologies impact an organization's procurement process. Answer: With 3D printing, also called additive manufacturing, objects are manufactured through the deposition of successive layers of material. Just as two-dimensional printers deposit ink in two dimensions, 3D printers deposit material in three dimensions, layering material in the third dimension as it dries. Rather than relying on suppliers for all its raw materials, organizations may choose to "print" some raw materials in-house. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance

95) Explain what analytics are and how they will be used in the future within the supply chain. Answer: Analytics is using data to discover patterns and inform decision makers. Analytics will increasingly be used in supply chains to create more accurate forecasts, identify risks, optimize stocking levels, evaluate credit of suppliers, reduce cost, and detect fraud. The role of analytics will continue to grow as procurement and supply chain data grows. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance 96) In what ways will AI and robots be used in the future as it relates to supply chain processes? Answer: AI and robots will help businesses make smart, agile decisions and anticipate supply chain problems. McKinsey forecasts that AI and robots in supply chains will create nearly two trillion dollars in value in the coming years. AI and robots will improve customer support via chatbots, find new efficiencies in route planning using real-time traffic data, and use driverless vehicles in warehouses and shipyards. Robots can also be used to move inventory during unloading, storage, and picking activities. The next robotic step is to use driverless trucks and drones to move inventory between warehouses and to consumers. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Procurement process in 2031? Course LO: Discuss the role of information systems in supply chain management and performance Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 10 Supporting the Sales Process with SAP 1) A sale is an exchange of goods or services for money. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 2) Shipping products to customers is an activity of the sales process. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 3) Inducing buyers to purchase products is a part of the outbound logistics activity of the value chain. Answer: FALSE Difficulty: Easy AACSB: Information Technology 234 Copyright © 2022 Pearson Education, Inc.

Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 4) B2C sales are much more common than B2B sales. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 5) In an organization that has not implemented SAP, the various actors in a typical sales process use a unified sales database. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 6) Accountants are usually authorized to approve sales orders in a sales process that does not use SAP. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 7) In a typical sales process that does not use SAP, the sales department evaluates the risk of selling to a new customer. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 8) In a typical sales process that does not implement SAP, sales orders are passed on to the warehouse after obtaining approval from the accounting department. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 9) Sales people in an organization that does not implement SAP are typically provided with real-time updates on inventory levels. Answer: FALSE Difficulty: Easy AACSB: Information Technology 235 Copyright © 2022 Pearson Education, Inc.

Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 10) The leading vendor of cloud-based CRM systems is Salesforce. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 11) A real-time price discount is a discount offered to all customers regardless of order size. Answer: FALSE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 12) SAP helps reduce the loss in revenue from cancelled sales to their best customers. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes

13) The "Create Standard Order: Overview" window in the SAP system is used to create new sales orders. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 14) When a sales order is generated, SAP systems generally send a message to the accounting department requesting approval. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 15) An SAP system can trigger a message to the warehouse manager to ship products on a scheduled date after a sales order has been approved. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 16) Warehouse managers use the Maintain Billing Due List screen to update picked items in SAP. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 17) SAP systems do not permit warehouse managers to overwrite the defaulted value that appears in the Deliv. Qty column of the Outbound Delivery screen. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 18) SAP systems do not include Post Goods functionality. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 19) The legal ownership of a shipment does not change until it is delivered to the buyer. 237 Copyright © 2022 Pearson Education, Inc.

Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 20) An accounting department can generate a bill using the SAP system only after the warehouse has posted goods to the buyer. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 21) One of the effectiveness objectives an organization achieves with the implementation of SAP is faster customer response. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 22) The implementation of SAP in an organization increases the amount of canceled sales to its best customers. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 23) The Sales process is just one of the many CRM processes that SAP can support. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Describe the functions of customer relationship management (CRM) systems 24) Demand management is a CRM process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Describe the functions of customer relationship management (CRM) systems

25) Sales and promotion are CRM processes. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Describe the functions of customer relationship management (CRM) systems 26) Process synergy occurs when processes are mutually supportive—when one process is done well, then the objectives of another process are supported. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 27) SAP achieves process synergy by designing processes to work together. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 28) E-commerce is a multi-firm process of buying and selling goods and services using Internet technologies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 29) Nonmerchant companies own the goods they sell. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 30) eBay is an example of a merchant e-commerce company. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

31) Information systems that support the sales process of B2C companies are typically Web storefronts that customers use to enter and manage their orders. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 32) B2B e-commerce refers to sales between companies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 33) Clearinghouses match buyers and sellers by using an IS version of a standard auction. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 34) Auctions provide goods and services at a stated price and arrange for the delivery of the goods. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 35) An electronic exchange is a type of clearinghouse that matches buyers and sellers. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 36) Disintermediation is the elimination of middle layers of distributors and suppliers. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

37) E-commerce reduces the flow of price data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 38) Sharing of customer data improves market efficiency. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 39) Social CRM is an information system that social networks use to facilitate communication within their network. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 40) New technology like blockchain will support financial services, chatbots will support more customer service and self-service options, and analytics from services will lead to process improvements. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 41) The darknet is part of the deep web, the extended Internet with addresses that are not indexed by search engines. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 42) While smartphone payments are already becoming common, by 2031 some experts believe these types of payments will dominate consumer sales. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 241 Copyright © 2022 Pearson Education, Inc.

43) Which of the following is a main activity of the sales process? A) procurement B) payment C) storage D) manufacturing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the ethical and social issues raised by the use of information systems 44) Which of the following is not one of the marketing and supply chain components? A) marketing process B) supply chain C) SCM D) procurement process Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 45) Which of the following statements is true of the sales process in an organization? A) It is a part of the outbound logistics activity of the value chain. B) It is a support process, though it is commonly mistaken for an operational process. C) It is a part of the inbound logistics of a value chain. D) Its major activities are selling, shipment, and payment. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 46) ________ is the management of customer-facing processes and data such as the Sales process. A) Customer service B) Operations C) Customer relationship management (CRM) D) Order to Cash (O2C) Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes

47) ________ is the activity of collecting, storing, and physically distributing products to buyers. A) Inbound Logistics B) Sales and Marketing C) Operations D) Outbound Logistics Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 48) Which of the following is likely to be the first activity in the sales process of a company that has not implemented SAP? A) creation of sales orders B) approval of sales orders C) pre-sales actions D) creation of warehouse bills Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 49) Which of the following departments is responsible for sending invoices to customers in a company that does not use SAP? A) marketing B) accounting C) manufacturing D) operations Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 50) Which of the following departments has the authority to approve sales orders in an organization that follows a typical sales process without implementing SAP? A) accounting B) planning C) manufacturing D) marketing Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 243 Copyright © 2022 Pearson Education, Inc.

51) In an organization that has not implemented SAP, the ________ department is responsible for checking customers' history of payments and determining the risk of selling to a customer. A) accounting B) marketing C) manufacturing D) purchasing Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 52) In an organization that follows a common sales process and does not implement SAP, many sales orders are often rejected due to a lack of inventory. Which of the following is the problem with the sales process that led to the rejection of the sales orders? A) Sales staff are not given access to the warehouse database. B) Accountants are not checking inventory levels before approving a sale. C) Sales staff are not instructed to check the warehouse database. D) Inventory data available to the sales agents lag by a day. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 53) In an organization that follows a typical sales process and does not implement SAP, the ________ receives the sales orders that have been approved by accounting. A) purchasing department B) sales agent C) warehouse manager D) sales department Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes

54) ________ is a binding agreement to sell a product at a specific price to a customer on a specific date. A) A quotation B) An invoice C) A sales order D) Receiving payment Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes 55) The leading vendor of cloud-based CRM systems is ________. A) Oracle B) SAP C) Microsoft D) Salesforce Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 56) Which of the following is not an objective of the new sales process at CBI? A) increase customer order size B) faster customer response C) reduce canceled sales to top customers D) decrease delivery speed. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 57) In an organization that implements SAP, once a sales order is created, the very next step is to ________. A) send a message to the accounting department B) approve an invoice to be sent to the customer C) deduct the number of items sold from the database D) verify pre-sales actions Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes

58) In an organization that uses SAP, the warehouse manager uses the ________ screen in the SAP system to ship items to customers. A) Post Incoming Payments B) Outbound Delivery C) Billing Due List D) Create Standard Order Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 59) When the Post Goods Issue button in SAP is selected by a warehouse manager, ________. A) the legal ownership of the product changes B) a purchase request is generated for approval C) an invoice is generated for approval D) the records indicate that the products have reached the customer Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 60) In an organization that has implemented SAP, the accounting department receives a message that it can bill a customer for a sale when the ________. A) order is picked and packed at the warehouse B) sales order is approved in SAP C) sales order is generated in SAP D) warehouse posts the goods issue in SAP Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 61) In an organization that has implemented SAP, the accounting department uses the ________ screen in SAP to generate an invoice for a sales order. A) Post Incoming Payments B) Outbound Delivery C) Maintain Billing Due List D) Create Standard Order Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 246 Copyright © 2022 Pearson Education, Inc.

62) Which of the following is not a process scope within the CRM processes? A) operational B) managerial C) departmental D) strategic Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 63) Which of the following is a CRM process? A) demand management B) service C) procurement D) returns management Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Describe the functions of customer relationship management (CRM) systems 64) Which of the following facilitates process integration? A) maintaining independent databases for each process B) developing mutually supportive processes C) restricting access to sensitive data D) decentralizing process activities Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 65) ________ is a multi-firm process of buying and selling goods and services using Internet technologies. A) Social engineering B) Value networking C) E-commerce D) Social networking Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

66) According to the U.S. Census Bureau, merchant companies are companies that ________. A) arrange for the sale of goods without owning them B) outsource their sales process C) buy goods and resell them D) sell services provided by others Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 67) According to the U.S. Census Bureau, nonmerchant companies are companies that ________. A) buy goods and then resell them B) own the goods they sell C) manufacture the goods they sell D) arrange for the sale of goods without owning them Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 68) Freepages12.com is a Web site that helps companies find advertising media to reach niche markets. This Web site is an example of a ________ e-commerce concern. A) B2B B) B2C C) C2C D) B2G Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 69) Web storefronts typically used by companies such as Amazon.com and LLBean.com are information systems that support the sales process of ________ companies. A) B2G B) B2B C) B2C D) G2C Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 70) Which of the following is a characteristic of clearinghouses? 248 Copyright © 2022 Pearson Education, Inc.

A) They compare goods or services and take title to the goods that they sell. B) They provide information about e-commerce Web sites that support B2B sales. C) They provide goods and services at a stated price and arrange for the delivery of the goods. D) They facilitate the auction of goods and services and deliver products to the highest bidders. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 71) Which of the following is a key difference between auctions and clearinghouses? A) Auctions are used for low-value products, whereas clearinghouses are used for high-value products. B) Clearinghouses take title to the goods they sell, whereas auctions do not. C) Clearinghouses facilitate only B2B sales, whereas auctions facilitate B2B and B2C sales. D) Auctions support a competitive bidding process, whereas clearinghouses sell at a stated price. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 72) Which of the following statements is true of an electronic exchange? A) It supports competitive bidding. B) Amazon.com is an example of an exchange used by consumers. C) It generates revenue only through advertising. D) It matches buyers and sellers. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 73) E-commerce leads to ________, which is the elimination of middle layers of distributors and suppliers. A) forward integration B) decentralization C) backward integration D) disintermediation Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

74) Which of the following statements is true about e-commerce? A) It results in an increase in inventory-carrying costs. B) It improves the flow of price data. C) It decreases market efficiency. D) It reduces sharing of consumer data. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the functions of customer relationship management (CRM) systems 75) Social CRM is an information system that ________. A) is used by companies to gather data about its employees and improve its human resource decisions B) helps companies improve intra-departmental communication and social relationships C) is used exclusively by corporate networks to communicate with employees at all levels D) helps companies collect customer data from social media and share it among their customer-facing processes Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 76) The deep web is estimated to be ________ times larger than the surface web. A) 20 B) 50 C) 75 D) 100 Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 77) What is a sale? What are the key activities in sales? Answer: The business definition of a sale is an exchange of goods or services for money. More precisely, a sale is revenue from delivery of merchandise or a service where payment may be made in cash or other compensation. The sales process is an operational process with three main activities–sell, ship, and payment. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes

78) Discuss the importance of sales for a business. Answer: For a business, sales is the most important process. Without sales, no one gets paid. Although sales are a complex and difficult process, it is also governed by a simple overriding principle: Satisfy the customer. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 79) Explain the difference between business-to-business (B2B) and business-to-consumer (B2C)? Answer: First, we address sales from one business to another rather than from a business to its consumers. These business-to-business (B2B) sales are much more common than business-to-consumer (B2C) sales like the florist example given earlier. This is because each B2C sale typically requires many B2B sales to acquire and assemble the product before it can be sold to a customer. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What are the fundamentals of a Sales process? Course LO: Discuss the role of information systems in supporting business processes 80) Explain how a sales order is created in an organization that follows a typical sales process but has not implemented SAP. Answer: The first activity in a typical sales process is Pre-Sales Actions. In this activity, the sales representatives contact customers, give price quotes, verify the availability of products, check on special terms, and confirm delivery options. If the customer decides to order, then a sales order is created. If approved by accounting, the SO was passed onto the warehouse to collect (or "pick"), pack, and ship the bicycles on the correct day, Once the bikes were shipped by the warehouse, a notice is sent to accounting that the goods had been shipped so that accounting could send the invoice. The final activity, Receive Payment, occurred when a payment is sent to CBI for the sale. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: How does the Sales process at CBI work without SAP? Course LO: Discuss the role of information systems in supporting business processes

81) Explain the competitive strategy that CBI implemented with SAP. What were the efficiency and effectiveness objectives committed to by the company? Answer: To implement SAP successfully, top management reexamined CBI's strategy and committed to a competitive strategy that focused on a particular industry segment–high-end bikes– and a differentiation on responsiveness to retailers. Sales managers decided on one efficiency objective and two effectiveness objectives. CBI believed that one way to be more efficient in sales is to encourage the sales force to make larger individual sales. Every sale takes time and delivery costs, so less frequent but larger sales increase efficiency. As a result, CBI decided an efficiency objective should be larger sales, as measured by the average sale amount. The first effectiveness objective–faster customer response–will be measured by customer lead time–the time from creation of a sales order to the arrival of ordered products. A second KPI will be the percentage of sales of first-year products. CBI offers new bikes and accessories based on customer input. If these new products are being purchased by retailers, this is a sign that CBI is responding well to customer requests. A second effectiveness objective is to reduce lost revenue from canceled sales to their best customers. CBI wants to maintain the right to cancel lower-revenue sales when they conflict with higher-revenue sales. Difficulty: Hard AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 82) Explain how the implementation of SAP changes a typical sales process. Answer: The actors in a sales process that implements SAP are the accountant, the warehouse manager, and the sales agent. The SAP system that tracks all the sales data is the only computer actor. The Pre-Sales activity is almost the same for processes that do or do not implement SAP. The only difference is that inventory and price data are current in an SAP process. The Sales Order screen in SAP has a window called Create Standard Order. In this section, the sales agent enters customer number, the date of the transaction, and the transaction number. The PO Number is determined by the customer's numbering system. The PO date for the customer is the date the sale was made. Once the sales agent saves the SO, SAP creates an SO number and updates the inventory table in the database. In addition to updating data, several other actions are triggered. First, a message is sent to the accounting department requesting credit approval and a decision to approve or disapprove the sale. A second action is updating the assembly schedule. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes

83) How are bills generated in a sales process that implements SAP? Answer: After the warehouse has posted the goods issue and the products have changed ownership, the accounting department receives a message that they can bill the customer. The accountant logs into SAP and navigates to the Billing Due List screen. The customer's number is entered in the Sold-To Party field and the Display Bill List icon near the top of the screen is selected. On the following screen, the accountant adds the sales order and clicks the Save icon. This action triggers SAP to send a message to the customer. The message is the bill, which is also called an invoice. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 84) What are the benefits of implementing SAP on a typical sales process? Answer: There are several benefits of implementing an SAP system. Sales representatives have access to the most current data as all data is stored in a single database. Long-term inventory data is available to them. They also have access to real-time price discounts to offer additional pricing options to the customer. With more accurate and up-to-date pricing and inventory data, the number of cancelled sales will be reduced. SAP also offers a feature using which low-priority sales can be cancelled to cater to high-priority customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How does the Sales process work at CBI with SAP? Course LO: Discuss the role of information systems in supporting business processes 85) Describe the benefit of sharing data such as receipts with customers using electronic media. Answer: It is easier for a customer to return merchandise if a receipt has been provided. If this receipt was emailed to the customer, it may be easier to find than a printed receipt. By using electronic receipts, the retailer's Sales process has made the customer's returns process easier. Rather than issue paper receipts, which are more costly and more frequently lost, many retailers are sharing receipt data with customers electronically by sending an email or a message to a customer's smartphone. Not only does this reduce sales costs, an objective of the retailer's Sales process, it also improves the customer's Returns process, because customers can find their receipts more frequently. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Describe the functions of customer relationship management (CRM) systems 86) What is process synergy? Answer: Process synergy occurs when processes are mutually supportive. When one process does well, the objectives of other dependent processes are also supported. Process synergy improves processes in an organization. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 253 Copyright © 2022 Pearson Education, Inc.

87) How does CBI use its Service Process to improve process synergy with retailers? Answer: To improve process synergy with retailers, CBI can use its Service process to support the Sales processes of its customer retailers. For example, when a defective bike is returned to CBI from one of its retailers, the CBI Service process uses overnight shipping to give the retailer a new bike within 24 hours. As a result, the retailer's Sales process is improved because each of CBI's retailers can promise customers 24-hour replacements. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 88) What are the challenges of improving the CRM process? Answer: First, focusing on a single process is easier than trying to achieve the objectives of many processes at one time. A second challenge is that all processes are in a state of change. Processes change, as we have mentioned in earlier chapters, due to changes in technology, strategy, people, and products. Keeping all these processes working well together while they all change is difficult. Finally, achieving the objectives of a set of processes can only happen when businesspeople understand other parts of the business. To summarize, improving the group of CRM processes requires data sharing and integrating processes. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How does SAP improve CRM processes at CBI? Course LO: Discuss the role of information systems in supporting business processes 89) Describe B2B, B2C, and B2G e-commerce companies. Answer: The three main types of merchant companies are those that sell directly to consumers, those that sell to companies, and those that sell to government. Each uses slightly different IS in the course of doing business. B2C e-commerce concerns sales between a supplier and a retail customer (the consumer). IS that support the Sales process of B2C companies are typically Web storefronts that customers use to enter and manage their orders. Amazon.com, REI.com, and LLBean.com are examples of companies that use Web storefronts. B2B e-commerce refers to sales between companies. Raw materials suppliers and other firms use interorganizational information systems like ERP systems to integrate B2B supply chains. B2G, or business-to-government merchants, sell to governmental organizations. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

90) Differentiate between auctions and clearinghouses. Answer: Auctions match buyers and sellers by using an IS version of a standard auction. This application enables the auction company to offer goods for sale and to support a competitive bidding process. The best-known auction company is eBay, but many other auction companies exist. Clearinghouses provide goods and services at a stated price and arrange for the delivery of the goods, but they never take title. One division of Amazon.com, for example, operates as a nonmerchant clearinghouse, allowing individuals and used bookstores to sell used books on the Amazon.com Web site. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 91) What are the ways that E-Commerce Improve Market Efficiency? Answer: For one, e-commerce leads to disintermediation, which is the elimination of middle layers of distributors and suppliers. You eliminate the retailer's inventory-carrying costs, and you eliminate shipping overhead and handling activity. Because the retailer and associated inventories have become unnecessary waste, disintermediation increases market efficiency. E-commerce also improves the flow of price data. You can find vendors that avoid your state sales tax or that omit or reduce shipping charges. The improved distribution of data about price and terms enables you to pay the lowest possible cost and serves ultimately to remove inefficient vendors. The market as a whole becomes more efficient. A third way e-commerce improves market efficiency is sharing customer marketing data. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world

92) What are two ways that Google have improved consumer data sharing? Answer: Google pioneered search advertising with its AdWords software. AdWords is Google's popular pay-per-click advertising product. With AdWords, companies pay a predetermined price for particular search words. For example, Oracle might agree to pay $2 for the words software and business. When a customer uses Google to search for those terms, Google will display a link to Oracle's Web site. If the user clicks that link (and only if the user clicks that link), Google charges Oracle $2. Oracle pays nothing if the user does not click. Customer data sharing is also improved with free Google Analytics software that enables the Web site owner to collect Web traffic data. This data includes where the customer came from (from a search engine, another site, and so on), where the customer visited in the site, and the conversion rate, which is the ratio of the number of customers who eventually purchased divided by the number who visited. Analysts can examine this type of data and make changes to the site with the objective of increasing sales. Installed on more than a half million of the most popular Web sites, Google Analytics improves market efficiencies by improving the collection and sharing of customer data. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How does e-commerce improve processes in an industry? Course LO: Describe the effects of e-commerce on the modern business world 93) Describe the concept of social CRM. Answer: Social CRM is an information system that helps a company collect customer data from social media and share it among its customer-facing processes. Social CRM data is collected through interactions on Facebook, Twitter, wikis, blogs, discussion lists, frequently asked questions, sites for user reviews, and other social media. Social CRM systems collect and distribute this data to a variety of customer processes. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems 94) What might the impact be of smartphones as we look to the future? Answer: Customers are increasingly using their smartphones to make purchases. It is already common for customers at Starbucks to use their phone to buy coffee and other products. Coffee is not the only thing people are buying with smartphones. In Shanghai, China, customers use their phones to shop for groceries at subway stations. On posters in the subway, a grocery chain displays images of products along with a QR code for each item. Shoppers scan the QR code on their smartphones to register a purchase, and the groceries are delivered to their home of record later that day. While smartphone payments are already becoming common, by 2031 some experts believe these types of payments will dominate consumer sales. Already, most young people in major Chinese cities carry no cash or cards, only a smartphone. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems

95) What is the Darknet? Answer: The darknet is a network underneath the Internet, or surface web, that you commonly use. The darknet is part of the deep web, the extended Internet with addresses that are not indexed by search engines such as academic resources, members-only web sites, dynamic pages that are created when users visit a site, government agencies and records, and corporate internal networks. This deep web is estimated to be 100 times larger than the surface web. The darknet is intentionally hidden and inaccessible from traditional search engines. To access the darknet, you need a special browser, such as the Tor browser. This browser is designed to find and connect to sites with darknet extensions like .onion and to keep the user anonymous. The darknet is very helpful for political dissent but just as useful for sales of drugs, stolen credit cards, human trafficking, and copyrighted material. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What new IS will affect the Sales process in 2031? Course LO: Describe the functions of customer relationship management (CRM) systems Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 11 Collaboration, Social Media, and IS 1) Cooperation is a process where a group of people work together, all doing essentially the same type of work, to accomplish a job. Answer: TRUE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 2) The work quality of a cooperative team is much better than that of a single individual working alone. Answer: FALSE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 3) Members of a collaborative team work without reviewing or criticizing each other's work. Answer: FALSE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 4) A group in which everyone is too polite to say anything critical cannot collaborate. Answer: TRUE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? 257 Copyright © 2022 Pearson Education, Inc.

Course LO: Explain how IS can enhance systems of collaboration and teamwork 5) Collaboration is an dynamic process. Answer: TRUE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 6) Dynamic processes typically emphasize efficiency more than effectiveness. Answer: FALSE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 7) If an individual's work is not only perceived as important, but the person doing that work is also given credit for it, then the experience will be perceived as meaningful. Answer: TRUE Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how information systems can be used to assist in decision making 8) Collaboration systems are different from information systems like ERP. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how information systems can be used to assist in decision making 9) While reviewing documents, procedures can reduce confusion and increase control. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how information systems can be used to assist in decision making 10) Rules about who can do what to which data are codified in procedures. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork 11) Collaboration information systems differ from information systems in the fact that there are very few software options to select from for collaboration IS. 258 Copyright © 2022 Pearson Education, Inc.

Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork 12) The success of a collaboration information systems depends on choosing the right software based on objectives and people. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork

13) A document that describes a recommended solution is project metadata for a problem-solving project. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork 14) Team members who work in different time zones around the world must meet asynchronously. Answer: TRUE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 15) Two employees working in different shifts communicate through emails. This is an example of synchronous communication. Answer: FALSE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 16) Virtual meetings are meetings in which participants do not meet in the same place, and possibly not at the same time. Answer: TRUE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 17) Communicating through a conference call is an example of asynchronous communication. Answer: FALSE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 18) Team members will be obligated to participate if a discussion forum is used for communication. Answer: FALSE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 19) Team surveys are an effective way to obtain team opinions. 260 Copyright © 2022 Pearson Education, Inc.

Answer: TRUE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 20) Storing documents on a server provides a higher degree of control than sharing content through emails. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 21) Project team members typically use both synchronous and asynchronous communication. Answer: TRUE Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 22) Business analysts can only use the predefined workflows shipped with SharePoint. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 23) SharePoint helps coordinate asynchronous communication by automating several activities within a workflow. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 24) In a sequential workflow, review activities occur simultaneously. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork

25) Collaboration IS not only supports the existing business processes listed earlier, they also allow new processes to emerge. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 26) Social media support the creation and sharing of user-generated content. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 27) A social media information system only supports the creation of user-generated content. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 28) User-generated content is a publicly available content created by the social media providers. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 29) Publicly available content created by end users is referred to as user-generated content. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 30) Businesses, app providers, and users share the social media process, and each have their own objectives. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes

31) On the server end, most social media application providers use servers in the cloud. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 32) Social graphs are used to depict the possible relationships between people who may be connected in the future. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 33) A hashtag makes it easier to search for a keyword given to a piece of data by its creator. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 34) Typically, businesses use social media procedures in an informal and simple manner. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 35) Businesses need to understand reward system opportunities if they want to encourage users to create and disseminate content about the business. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Describe the components of an information system (IS) 36) The impact of a viral event on a business can be easily predicted. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Discuss the role of information systems in supporting business processes

37) When businesses create content, their goal should be a closer connection with their customers. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Discuss the role of information systems in supporting business processes 38) Establishing listening platforms to track mentions of products and brands on social media sites is referred to as crowdsourcing. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 39) Click-through rates calculates the number of clicks on an ad divided by the number of times the ad is displayed. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 40) Consumers trust their friends much more than they do businesses. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 41) Traditional capital refers to investments into resources such as factories, machines, manufacturing equipment, and the like. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 42) Human capital is the investment in social relations with the expectation of benefits in the marketplace. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 43) Social capital processes are focused toward increasing the number of relationships in a 264 Copyright © 2022 Pearson Education, Inc.

network. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 44) The labor requirements of social media applications are easily estimated. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the role of information systems in supporting business processes 45) Crackpots are users who spread positive information about companies. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the role of information systems in supporting business processes 46) Organizations run the risk of unfavorable customer reviews when using social media applications. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the role of information systems in supporting business processes 47) Reddit is a very popular social news Web site built on crowdpolling and anonymous posting. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes 48) The sharing economy describes firms that enable peer-to-peer exchanges via online communities, where individuals can rent assets or obtain services offered by others. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes 49) Trust is not essential because switching costs are typically low in the sharing economy. 265 Copyright © 2022 Pearson Education, Inc.

Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes 50) Which of the following is a key difference between collaborative teams and cooperative teams? A) Cooperative teams work to accomplish a specific task, whereas collaborative teams need not have a collective purpose. B) People work together in collaborative teams, whereas each member works independently in cooperative teams. C) Collaborative teams reduce the amount of time required to finish a task, whereas cooperative teams require more time. D) Cooperative teams achieve their objectives via communication and iteration, whereas collaborative teams achieve by working alone. Answer: B Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 51) Collaboration occurs when a group of people ________. A) function independently to accomplish a particular task B) work together using communication and iteration C) do the same type of work to complete a job D) work without critically analyzing each other's work Answer: B Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 52) Which of the following is the most important collaborative skill? A) gregarious and dynamic personality B) experience as a business person C) persuasive presentation skills D) ability to give and receive critical feedback Answer: D Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork

53) Which of the following is an efficiency objective of collaboration? A) to meet time and cost limits B) to have a meaningful experience C) to make a successful deliverable D) to grow in team capability Answer: A Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 2: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 54) Which of the following is a hardware component of collaboration information systems? A) Google+ B) project metadata C) email D) a cloud server Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 55) Collaboration systems are most likely hosted by ________. A) servers B) clients C) switches D) routers Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 56) Users interact with collaboration systems using ________. A) routers B) client devices C) cloud servers D) switches Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS)

57) Which of the following is an application that supports collaborative activities? A) metadata B) a smart phone C) email D) a cloud server Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 58) The project management team at Lebel Inc. creates multiple versions of a document after successive iterations. To retrieve the required version in the least time, the team must create a document containing project ________. A) cookie data B) metadata C) procedures D) contributors Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 59) ________ specify standards, policies, and techniques for conducting a team's collaboration activities. A) Project data B) Procedures C) Project metadata D) Principles Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 60) Which of the following IS components is emphasized for its ability to give and receive critical communication? A) hardware B) procedures C) people D) data Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Describe the components of an information system (IS) 268 Copyright © 2022 Pearson Education, Inc.

61) Synchronous communication occurs when all team members ________. A) work from different locations B) speak the same language C) meet at the same time D) work in different shifts Answer: C Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 62) ________ meetings are meetings in which participants do not meet in the same place, and possibly not at the same time. A) Virtual B) F2F C) Synchronous D) Conference call Answer: A Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 63) Which of the following is a tool used for synchronous communication? A) discussion forums B) webinars C) email D) team surveys Answer: B Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 64) Which of the following is a tool used for asynchronous communication? A) discussion forums B) webinars C) conference calls D) videoconferencing Answer: A Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork

65) Altruon Inc., a manufacturing company, has production facilities in three different geographical locations. Production managers in each of these facilities use conference calls to communicate with each other. This is an example of ________ communication. A) asynchronous B) implied C) indirect D) synchronous Answer: D Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 66) Which of the following is an example of asynchronous communication? A) Two managers communicate using a webinar application. B) Charles sends an email to his subordinate. C) Fred calls up a supplier to inquire about an order. D) Two teams communicate through videoconferencing. Answer: B Difficulty: Moderate AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 67) Discussion forums are better than email because ________. A) they evoke immediate responses from members B) they keep the discussion on track C) they facilitate synchronous communication D) they compel all members to participate in the discussion Answer: B Difficulty: Moderate AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 68) A(n) ________ is an effective way to obtain opinions, at the same time easy to identify non-respondents. A) wiki B) discussion forum C) email D) team survey Answer: D Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 270 Copyright © 2022 Pearson Education, Inc.

69) Todd and Andrea, both members of the same team, download the same document and edit it. Andrea saves her version on the server and then Todd saves his, and Andrea's changes are lost. In this scenario, the loss of data could have been avoided by using ________. A) iteration control B) FTP C) email attachment D) centralized database Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 70) Which of the following is a major disadvantage of sharing documents on a server? A) It creates incompatible versions of documents. B) It does not provide teams with a single storage location. C) It restricts team members from editing the documents. D) It allows team members to interfere with one another's work. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 71) Which of the following is a system that provides iteration management? A) Microsoft Word B) email attachment C) FTP D) Microsoft One Drive Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 72) Which of the following statements is true about Google Drive? A) Documents are stored on the user's server. B) Documents can be accessed and viewed only by one user at a time. C) Document revisions can be tracked with brief summaries of changes made. D) Microsoft Word or Excel documents cannot be stored on Google Drive. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork

73) With iteration-control systems, each team member ________. A) is given a shared server with unrestricted access B) is given their own private directory to share files C) is given an account with a set of permissions D) is notified every time a file is viewed Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 74) ________ is an example of a document checkout tool. A) Microsoft SharePoint B) Wikipedia C) Google Drive D) Microsoft OneDrive Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 75) ________ is the process of applying principles and techniques for planning, organizing, and monitoring temporary endeavors. A) Iteration control B) Project management C) Gap analysis D) Workflow process Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 76) Which of the following project management software is used to organize a flow of team activities and manage lists of tasks? A) SAP B) Microsoft OneDrive C) Google drive D) Oracle Primavera Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork

77) Which of the following statements is true about the project management process? A) Project management activities are the same across processes. B) Iteration management controls are absent in such processes. C) A project team can use only one collaboration IS. D) Projects have a defined beginning and a defined end. Answer: D Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 78) The ________ process is a sequence of activities by which original content is created and subsequently acted upon by others within the organization. A) iteration B) compiling C) version tracking D) workflow Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 79) Which of the following is a collaboration IS that provides iteration control to workflows? A) SQL B) email C) Google Drive D) SharePoint Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 80) A manager wants a document to be first edited by an employee and then reviewed by another employee. This is an example of ________ workflow. A) concurrent B) parallel C) sequential D) synchronized Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork

81) In a ________ workflow, document reviews occur simultaneously. A) parallel B) sequential C) serial D) chronological Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 82) ________ are Web apps that support the creation and sharing of user-generated content. A) Intranets B) Social media C) Workflows D) Cloud servers Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 83) Which of the following is an example of a social media application? A) Facebook B) MS Office C) TurboTax D) Encyclopedia Britannica Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 84) Which of the following is the primary business objective of organizations using social media information systems? A) IS's market share growth B) support strategy C) price skimming D) ambush marketing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes

85) Which of the following is an efficiency objective of the social media process? A) to provide users with a sense of belongingness B) to operate within time and cost constraints C) to increase the market share of the social media provider D) to generate loyalty and brand authority Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 86) In social media, ________ is user-generated information and the responses to that information contributed by other users. A) cookie B) Trojan horse C) business object D) content data Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 87) Which of the following is a unique feature of social media data? A) a tag B) a keylogger C) a botnet D) a rootkit Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Discuss the role of information systems in supporting business processes 88) Which of the following enables users to create content on social media information systems? A) procedures B) social graphs C) hashtags D) connection data Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS)

89) ________ is essential to social media apps because all successful apps have an enormous database of content to share. A) Convenience B) Sharing C) Searching D) Creating Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Discuss the role of information systems in supporting business processes 90) When content erupts and becomes extremely popular over a brief period, it is called ________. A) mashup B) viral C) business-created D) buzz Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Discuss the role of information systems in supporting business processes 91) Crawford-Delta Inc., manufacturers of camera lenses, are promoting their new high definition lens series through blogs and articles of professional photographers. This creates a buzz among amateur photographers leading to a high demand for the product. In this case, the promotional process utilized by the organization reflects a ________. A) network effect B) rebound effect C) cause marketing effect D) decoy effect Answer: A Difficulty: Hard AACSB: Analytical Thinking Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes

92) ________ is the series of activities before, during, or after a sale with the goal of increasing customer satisfaction. A) Customer Service B) Product Reviews C) Promotion D) Cause Marketing Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 93) ________ refers to the investment in social relations with the expectation of returns in the marketplace. A) Social capital B) Social utility C) Social service D) Social entrepreneurship Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 94) Traditional capital refers to investments in ________. A) social relations and networks B) employee skills C) human knowledge D) machines and equipment Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 95) An individual uses a company's Facebook page to promote a political party that he supports. He also publishes his views about unrelated topics on the page. This user is called a ________. A) spambot B) hacker C) crackpot D) phisher Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the role of information systems in supporting business processes 277 Copyright © 2022 Pearson Education, Inc.

96) ________ are an extension of bad reviews where prosumers revolt and use an organization's site in damaging ways. A) Viral attacks B) Spoofs C) Crackpots D) Mutinous movements Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the ethical and social issues raised by the use of information systems 97) On Reddit, registered and most often anonymous users create content and share it in on the site organized in topics called ________. A) creating and sharing B) crowdpolls C) subreddits D) cross-platform app Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes 98) ________ are two of the best-known companies of the sharing economy. A) Zipcar and Rideshare B) eBay and Uauction C) Uber and Airbnb D) Lyft and Uber Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes 99) What is a cooperative team? Provide an example. Answer: A cooperative team is a group that works together to accomplish something, but each person works independently to accomplish his or her portion of the work. A team of painters working on a building is a cooperative team. Each is given a portion of the building to paint and works independently to complete the task. Difficulty: Easy AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 278 Copyright © 2022 Pearson Education, Inc.

100) Describe collaboration. Answer: Collaboration as a dynamic process: a group of people working together to achieve common objectives via communication and iteration. One person will produce something, say the draft of a document, and communicate that draft to a second person, who will review that draft and communicate feedback. Given the feedback, the original author or someone else will then revise the first draft to produce a second. The work proceeds in a series of stages, or iterations, in which something is produced, members create feedback, and then another version is produced. Using iteration and communication, the group's result can be better than what any single individual can produce alone. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how IS can enhance systems of collaboration and teamwork 101) How does collaboration lead to growth in team capability? Answer: It develops better work processes. Activities are combined or eliminated. Communication is improved so that "the left hand knows what the right hand is doing," or needs, or can provide. Teams also get better as individuals improve at their tasks. Part of that improvement is the learning curve; as someone does something over and over, he or she gets better at it. But team members also teach task skills, give knowledge to one another, and provide perspectives that other team members need. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how information systems can be used to assist in decision making 102) During collaboration, what makes a work meaningful? Answer: If a task is perceived by the team as important, it will become meaningful. If an individual's work is not only perceived as important, but the person doing that work is also given credit for it, then the experience will be perceived as meaningful. So, recognition for work well done is vitally important for a meaningful work experience. Another aspect of team satisfaction is camaraderie. Business professionals, just like students, are energized when they have the feeling that they are part of a group, each person doing his or her own job, and combining efforts to achieve something worthwhile that is better than any could have done alone. Difficulty: Moderate AACSB: Interpersonal Relations and Teamwork Chapter LO: 1: What is collaboration, and what are the objectives of the collaboration process? Course LO: Explain how information systems can be used to assist in decision making

103) Describe the data component of a collaboration information system. Answer: Collaboration involves two types of data. Project data is data that is part of the collaboration's work product. For example, for a team that is designing a new product, design documents are examples of project data. A document that describes a recommended solution is project data for a problem-solving project. Project metadata is data that is used to manage the project. Schedules, tasks, budgets, and other managerial data are examples of project metadata. Another example of project metadata is the version number of a document. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork 104) Describe procedures with an example. Answer: Procedures specify standards, policies, and techniques for conducting the team's collaboration activities on the technology. An example is the procedure for reviewing documents or other work products online. To reduce confusion and increase control, the team might establish a procedure that specifies who will review documents and in what sequence. Rules about who can do what to which data are also codified in procedures. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the key components of a collaboration IS? Course LO: Explain how IS can enhance systems of collaboration and teamwork 105) What is the difference between synchronous communication and asynchronous communication? Answer: Synchronous communication occurs when all team members meet at the same time, such as with conference calls or face-to-face meetings. Asynchronous communication occurs when team members do not meet at the same time. Employees who work different shifts at the same location or team members who work in different time zones around the world typically meet asynchronously. Difficulty: Moderate AACSB: Written and Oral Communication Chapter LO: 4: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 106) What are some of the tools that facilitate synchronous communication? Answer: Conference calls, webinars, videoconferencing, and group messaging can be used to facilitate synchronous communication. Difficulty: Easy AACSB: Written and Oral Communication Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork

107) What are some of the tools that facilitate asynchronous communication? Answer: Email, Discussion forums, Team surveys, Slack, Microsoft Teams, and Microsoft SharePoint Difficulty: Easy AACSB: Written and Oral Communication; Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 108) Describe the problems associated with sharing content using emails and shared servers. Answer: Although email is simple, easy, and readily available, it will not suffice for collaborations in which there are many document versions or for which there is a desire for content control. Incompatible versions of documents will be floating around if email is used to share content. Storing documents on servers is better than using email attachments because documents have a single storage location. However, without any additional control it is possible for team members to interfere with one another's work. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: How can collaboration IS support the communicating and iterating activities? Course LO: Explain how IS can enhance systems of collaboration and teamwork 109) What is workflow process? Describe how it is performed in SharePoint. Answer: The Workflow process is a sequence of activities by which original content is created and subsequently acted upon by others within the organization. SharePoint supports a workflow by automating many of the activities. It helps automate activities involving documents, lists, and other types of content in a workflow. SharePoint ships with several built-in workflows. In addition, business analysts can create custom workflows using a graphical interface in SharePoint Designer. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork 110) What are some ways that Collaboration IS support emerging processes? Answer: Collaboration IS have helped enable new online training processes, knowledge storage processes, and find-an-expert processes. Online training supported by collaboration systems are rapidly growing. Larger versions are known as massive open online courses (MOOCs), which are offered by Coursera, Udacity, and others. Knowledge storage processes use collaboration IS such as wikis to store company knowledge much like Wikipedia stores common knowledge. Finally, collaboration systems can enable a new find-an-expert process. This process is designed to collect and share expertise within a firm. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How can collaboration IS support business processes? Course LO: Explain how IS can enhance systems of collaboration and teamwork

111) What is social media? Answer: Social media are Web apps that support the creation and sharing of user-generated content. User-generated content is publicly available content created by end users. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 112) Describe the importance of social media process objectives. Answer: For any business to use social media successfully, its managers need to understand the objectives of the social media process. However, like other dynamic processes, the social media process has few well-accepted objectives. For example, people use social media to communicate, share, support and entertain while the objectives of a business may be to boost sales or respond to customer complaints. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 113) What are the effectiveness objectives for the three social media participants? Answer: Joining communities is a deep-seated emotional need for users, and this need is reflected in the first objective: belonging. The primary objective for a business is to use social media to support strategy. Most app providers seek either market share or revenue. Difficulty: Easy AACSB: Information Technology Chapter LO: 5: What is social media, and what are the objectives of social media? Course LO: Discuss the role of information systems in supporting business processes 114) What are the two categories of social media data? Answer: Social media data falls into two categories: content and connections. Content data is user-generated content and the responses to that content contributed by other users. Connection data is data about relationships. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 115) What are tags? Describe the uses of a tag. Answer: A tag is a keyword or term given to a piece of data by its creator. A tag or hashtag makes it easier to search for that term or keyword. A hashtag is a user-created tag that adds the prefix # to a word. Tags are important tools for search engines and because they can be organized into structures, such as bookmark categories. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What are the key components of a social media IS? Course LO: Describe the components of an information system (IS) 282 Copyright © 2022 Pearson Education, Inc.

116) What are some ways that businesses can use social media to form a closer connection with their customers? Answer: One social media guideline is for a business to discuss its own products and services with fewer than 10 percent of its content. Instead, businesses should post content about how their product plays a positive role in society, the social causes or volunteer activities of the business, interesting information for customers to use to solve their problems, attractive or humorous images, heart-warming stories about their customers, or thoughtful responses to their questions. a business might consider having a variety of accounts on the same platform. For example, a college may use several Twitter accounts, one for school officials to post content in a formal and structured style and another for designated students to connect with prospective students in a less formal way. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do social media IS support the creating and sharing activities? Course LO: Discuss the role of information systems in supporting business processes 117) Describe how social media helps organizations' promotion processes. Answer: The most immediate and profitable way that social media help business is by supporting the process of promotion. Promotion is the process of sharing data about a product or service with the objective to improve awareness and sales. Traditionally, businesses executed promotion via well-crafted messages from the business to the customer; however, with social media, promotion now includes informal messages and messages among customers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 118) Define traditional capital and human capital. Answer: Traditional capital refers to investments into resources such as factories, machines, manufacturing equipment, and the like. Human capital is the investment in human knowledge and skills for future profit. Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How can social media IS support business processes? Course LO: Discuss the role of information systems in supporting business processes 119) List the major risks associated with user-generated content. Answer: The major sources of user-generated problems are: 1. Junk and crackpot contributions 2. Unfavorable reviews 3. Mutinous movements Difficulty: Easy AACSB: Information Technology Chapter LO: 9: How do businesses manage the risks of social media? Course LO: Discuss the role of information systems in supporting business processes

120) Why is trust important in the sharing economy and how is it accomplished? Answer: Trust is essential because switching costs are typically low in the sharing economy. Trust grows with reliability, confidence, and belief. To gain trust, sharing economy firms depend on their information systems. The IS must enable parties to gather data on both the service being shared and the other party. Often the data on the other party includes photos, details about the customer, and ratings. Having a strongly positive rating is important as it leads to gaining the other party's trust. This concern for ratings also leads to better behaviors. The trust in these situations is particularly vital for younger users, a generation that is inclined to trust individuals more than institutions and government. To enable this trust to grow, firms in the sharing economy need to be transparent, inclusive, and decentralized. Older users, on the other hand, learned to trust centralized, top-down, and licensed organizations. Difficulty: Moderate AACSB: Information Technology Chapter LO: 10: How can IS that blend collaboration and social media support business processes? Course LO: Discuss the role of information systems in supporting business processes Processes, Systems, and Information, 4e (McKinney/Kroenke) Chapter 12 Analytics and IS 1) Analytics are reducing their capacity to help businesses identify important patterns in data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is analytics, and why is it important to business? Course LO: Compare and contrast different analytics systems 2) Although data numbers are growing at impressive rates, the five main sources of data remain the same. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is analytics, and why is it important to business? Course LO: Compare and contrast different analytics systems 3) Analytics is a process of acquiring, analyzing, and publishing data with an objective of discovering or revealing patterns in data that will inform a businessperson. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is analytics, and why is it important to business? Course LO: Compare and contrast different analytics systems 4) The objective of most analytics processes is to inform. Answer: TRUE Difficulty: Easy AACSB: Information Technology 284 Copyright © 2022 Pearson Education, Inc.

Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 5) The efficiency objective of analytics is to inform someone in the business of future events. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 6) Assessment, in business, means to be informed about the likelihood of future events. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 7) Analytics systems restrain from combining operational data with data from other sources before storing them in the repository. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 8) To use analytics applications, businesses should avoid depending on traditional transactional databases. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 9) Typically, in an analytics system, analysis begins with a massive volume of data being scaled down to a small set if the analysis looks promising. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 10) An analytics server is used by an analyst to analyze data and produce the output. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 285 Copyright © 2022 Pearson Education, Inc.

11) When users do analysis by themselves, it is called self-service analytics. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 12) A data warehouse is specially designed to sort and retrieve large volumes of data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems

13) There is no analytics, no informing, without procedures. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 14) Data mining is the first step of an analytics activity supported by analytics information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 15) Operational data are often structured in a way that readily supports analytics analysis. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 16) The primary objective of a reporting process is predicting patterns and relationships in data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 17) An RFM analysis considers how recently a customer has ordered and how much the customer has spent. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 18) Data that is analyzed once using slicing and dicing cannot be reanalyzed. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

19) With an OLAP report, it is possible to drill down into data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 20) The data mining process can predict the likelihood of various outcomes of a particular event. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 21) One of the applications of the data mining process is to predict products that tend to be purchased together. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 22) Market basket analysis is a technique used to segment the customer base. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 23) Market basket analysis predicts cross-selling opportunities. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 24) Dashboards can be used to monitor business processes and indicate abnormal conditions with obvious signs. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

25) Before analytics, B2C businesses had to write their own code to acquire and analyze customer data. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can analytics information systems support business processes? Course LO: Compare and contrast different analytics systems 26) Analysis of jet engine data has led to remarkable reductions in engine failures over the past several decades. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can analytics information systems support business processes? Course LO: Compare and contrast different analytics systems 27) Big Data information systems are similar in data and software in comparison to routine-sized databases. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 28) Traditional techniques cannot be used to process Big Data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 29) Using the MapReduce techniques, pieces of data are integrated to form a huge chunk of information. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 30) NoSQL databases have data redundancy, fewer controls, and require programming skills. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems

31) A common analogy for a Hadoop system is a data lake. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 32) HANA can be used only with unstructured NoSQL databases. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 33) With Big Data, the auditing process no longer needs to sample a subset of transactions; it can examine every transaction. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 34) Many cities are using advances in Big Data to provide services that improve transportation safety and reduce vehicle emissions. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 35) For analytics applications, a few missing data points is better than no data at all. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 36) Granularity refers to the inconsistencies and missing values that exist within data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems

37) Clickstream data is used to track everything the customer does at a web site. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 38) Leaders can contribute to analytics pushback by overselling the potential of an analytics IS. Answer: TRUE Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 39) Like all ERP systems, SAP consolidates operational data in an OLTP database. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How does SAP do analytics? Course LO: Compare and contrast different analytics systems 40) Organizations implementing SAP can choose to write additional code to accomplish tasks that SAP does not provide. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How does SAP do analytics? Course LO: Compare and contrast different analytics systems 41) Analytics will continue to expand as Big Data matures. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 9: What new IS will affect the analytics process in 2031? Course LO: Compare and contrast different analytics systems 42) Which of the following is an effectiveness objective of the analytics process? A) storing and retrieving data B) assessing current conditions C) working with budget constraints D) staying within time limits Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 291 Copyright © 2022 Pearson Education, Inc.

43) Which of the following is an efficiency objective of the analytics process? A) informing business personnel B) assessing current conditions C) predicting future events D) meeting time constraints Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 44) Which of the following statements is true of an analytics system? A) An analytics server can deliver output in a variety of formats. B) Operational databases are incompatible for use with analytics systems. C) Data collected for analytics systems are unsuitable for storage in data warehouses. D) General-purpose analytics software is used irrespective of the analysis method employed. Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 45) The special repository for analytics applications is called a ________. A) data warehouse B) data matrix C) data array D) data set Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 46) In analytics terms, operational databases are often referred to as ________. A) data warehouses B) online transactional processing systems C) data matrices D) online analytical processing systems Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems

47) Which of the following is referred to as an online analytical processing system? A) the data set B) the traditional database C) the operational database D) the data warehouse Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 48) Scalability means that analytics servers are ________. A) efficient B) modular C) compatible D) operational Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 49) Which of the following statements is true of the reporting process? A) It applies simple operations to reveal patterns in data. B) It creates unstructured reports and delivers them to users. C) It involves the use of sophisticated statistical techniques. D) Its objective is better prediction. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 50) Which of the following types of analyses is used in the reporting process? A) market basket analysis B) RFM analysis C) cluster analysis D) regression analysis Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

51) A digital dashboard is a(n) ________. A) electronic input device used in analytics intelligence systems B) information system that is used to enter data into databases C) visualization that is customized for a particular user D) digital device in the central processing unit of an analytics system Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 52) A(n) ________ analysis is used to analyze and rank customers according to their purchasing patterns. A) regression B) cluster C) RFM D) market basket Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 53) Which of the following statements is true about RFM analysis? A) It ranks customers based on their purchasing power. B) It uses more than a single attribute to sort the customers. C) It uses unsorted data to produce an RFM score. D) It identifies groups of entities that have similar characteristics. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 54) The supermarket from which Robert purchases groceries gives him an RFM score of 115 (R=1; F=1; M=5, on a scale of 1 to 5). Based on this information, which of the following is a valid conclusion? A) Robert recently made a big purchase at the supermarket. B) Robert does not shop frequently at the supermarket. C) Robert has not purchased anything from the supermarket recently. D) Robert frequently purchases inexpensive items from the supermarket. Answer: D Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 294 Copyright © 2022 Pearson Education, Inc.

55) An RFM score of 555 (R=5; F=5; M=5, on a scale of 1 to 5) assigned to a customer indicates that the customer ________. A) buys expensive items frequently B) has not purchased anything recently but buys frequently C) has not purchased anything recently D) buys inexpensive items frequently Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 56) In an RFM analysis, what will be the M score of a customer who spends the least amount of money, when rated on a scale of 1 to 5? A) 5 B) 1 C) 0 D) 2 Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 57) ________ provides the ability to analyze data using basic operations such as sorting, grouping, filtering, and calculating but, the operation is typically repeated. A) Slicing and Dicing B) PERT C) Market basket analysis D) Regression analysis Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 58) Drilling down into data means ________. A) changing the format of stored data B) grouping data into clusters C) dividing the data into more detail D) downsizing a database by deleting files Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 295 Copyright © 2022 Pearson Education, Inc.

59) An OLAP ________ is a characteristic or attribute of an info cube. A) cube B) dimension C) dashboard D) cluster Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 60) An OLAP report that displays information using three dimensions is called a(n) ________. A) warehouse B) dashboard C) cluster D) info cube Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 61) An organization uses an analytics system to predict products that tend to be purchased together. This is an example of a(n) ________ process. A) reporting B) information extracting C) evaluating D) data mining Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 62) Which of the following statements is true regarding the data mining process? A) It consolidates data into multiple data warehouses. B) Its activities are entirely different from those in the reporting process. C) It uses simple statistical techniques for data analysis. D) Its objective is better prediction of various outcomes. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

63) Regression analysis is an example of a ________ analysis process. A) data mining B) market basket C) reporting D) visualization Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 64) ________ analysis is a type of data mining analysis which measures the impact of a set of variables on another variable. A) Market basket B) RFM C) Cluster D) Regression Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 65) Which of the following is used to predict cross-selling opportunities? A) RFM analysis B) cluster analysis C) regression analysis D) market basket analysis Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 66) A retail store wants to identify the types of products that they should bundle together on sale. Which of the following types of analysis would be most suitable for this purpose? A) market basket B) RFM C) cluster D) OLAP Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

67) Selling products in addition to what customers request is called ________. A) hard-selling B) down-selling C) up-selling D) cross-selling Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 68) Margin Retails, a local supermarket, stocks up aftershave products next to the shaving creams predicting that consumers purchasing the shaving creams are most likely to purchase the aftershaves. In this case Margin's analysis technique is typically based on ________. A) hard-selling B) soft-selling C) cross-selling D) up-selling Answer: C Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 69) Which of the following is an example of unstructured data mining? A) text mining B) RFM analysis C) market basket analysis D) regression analysis Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 70) ________ classifies opinions about a business, product, or service, typically as either positive or negative. A) Market Basket Analysis (MBA) B) RFM analysis C) Sentiment analysis D) Regression analysis Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 298 Copyright © 2022 Pearson Education, Inc.

71) Which of the following is one predictive analytics technique, which measures the effect of a set of variables on another variable? A) regression analysis B) PERT C) CPM D) market basket analysis Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 72) ________ is the creation of images or diagrams that communicate a data pattern in a highly readable format. A) Phishing B) Simulation C) Visualization D) Augmented reality Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 73) A sales manager uses a bar chart to describe sales projections to his associates. This scenario exemplifies ________. A) phishing B) visualization C) simulation D) augmented reality Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 74) The ratio of the number of customers who eventually purchased divided by the number who visited is known as ________. A) to create value from intellectual capital and to share knowledge B) conversion rate C) A/B testing D) to connect the power of multiple computers working in parallel Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can analytics information systems support business processes? Course LO: Compare and contrast different analytics systems 299 Copyright © 2022 Pearson Education, Inc.

75) Which of the following is not a new process that is supported by analytics? A) online shopping B) prediction markets C) airplane ETA D) energy conservation Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can analytics information systems support business processes? Course LO: Compare and contrast different analytics systems 76) Which of the following is a feature of Big Data? A) It is accessed slowly due to its large size. B) It consists of unstructured data. C) Its datasets are at least a petabyte in size. D) It is generated slowly. Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 77) Because of the massive volume of Big Data, it must be processed using the ________. A) traditional technique B) relational database C) SQL database D) MapReduce technique Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 78) ________ is an open-source program supported by the Apache Foundation that implements MapReduce on potentially thousands of computers. A) Hadoop B) HTTP Server C) Struts D) ActiveMQ Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems

79) With the introduction of SAP HANA, the database operations of Big Data systems are faster when compared to MapReduce systems. Which of the following statements justifies this improvement? A) The system now uses a relational database technology. B) SQL statements are used to access data from secondary storage. C) Data is stored and analyzed in a single computer system D) The tasks in the system are divided into multiple servers. Answer: C Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 80) Data that are problematic for analytics are termed ________. A) clustered data B) intrinsic data C) dirty data D) granular data Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 81) An organization uses SAP financial management software to store accounting details and Microsoft CRM software to record customer transactions. Managers face problems when they have to make decisions based on both sets of data, as the data are stored on two different platforms. Such data are referred to as ________ data. A) nonintegrated B) dirty C) granular D) meta Answer: A Difficulty: Moderate AACSB: Analytical Thinking Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems

82) Granularity refers to the ________. A) problems that persist within data B) level of detail of the data C) inconsistencies within data D) patterns derived from operational data Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 83) ________ include the activities of a customer on a Web site. A) Real-time data B) Clickstream data C) Spam mails D) Rootkits Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 84) Which of the following analytics-related problems is most commonly associated with organizational leaders? A) mistaking data for information B) resisting analytics use because the system may change their jobs C) underestimating the cost of producing a analytics report D) overselling the potential of a analytics system Answer: D Difficulty: Moderate AACSB: Information Technology; Analytical Thinking Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 85) The SAP OLAP database is referred to as ________. A) online transactional system B) operational database C) business object D) data warehouse Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How does SAP do analytics? Course LO: Compare and contrast different analytics systems

86) Which of the following is most likely to cause concerns and conflict with the growth of analytics? A) communication costs B) consumer privacy C) data volume D) unstructured data Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 9: What new IS will affect the analytics process in 2031? Course LO: Compare and contrast different analytics systems 87) What is an analytics IS? Answer: An analytics IS is an information system that supports the process of acquiring, analyzing, and publishing data with an objective of discovering or revealing patterns in data that will inform a business person. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is analytics, and why is it important to business? Course LO: Compare and contrast different analytics systems 88) What are the five sources of data today? Answer: The first source is financial–data from the billions of financial transactions that occur every day. Second, data is being generated by scientific advances such as mapping the human genome and global climate. A third source is our communications–every tweet, post, click, Like, email, comment, photo and search. Fourth, healthcare services like blood tests, MRIs, and hospital visits generate billions of records a day. But the fifth source of data may make the first four seem almost insignificant. There will soon be trillions of data-generating devices on the planet with us; hundreds of billions of mobile devices, and sensors are already here, and they will soon join forces with generations of new devices. These devices will power the growth of data for many years to come. Difficulty: Easy AACSB: Information Technology Chapter LO: 1: What is analytics, and why is it important to business? Course LO: Compare and contrast different analytics systems 89) Why is it difficult to commit to time and costs in analytics projects? Answer: While it may seem obvious that time and cost objectives should be met, usually they are not even well specified. It is difficult to nail down goals for time and cost because many analytics projects are one-offs, unique projects not attempted before. One-offs are more difficult to assign specific cost and time goals than recurring events because there is no precedence to guide cost and time goals. Therefore, analytics efficiency objectives often shift depending on progress toward the end result. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 303 Copyright © 2022 Pearson Education, Inc.

90) What are the objectives of the analytics process? Answer: The objective of most all analytics processes is to inform someone in the business. For example, a business person may have a particular pattern or relationship they are assessing, such as looking to see if sales are increasing or decreasing. Analytics processes also pursue an efficiency objective—time and cost constraints. Difficulty: Easy AACSB: Information Technology Chapter LO: 2: What are the objectives of the analytics process? Course LO: Compare and contrast different analytics systems 91) Describe the hardware and software used in analytics systems. Answer: The key piece of hardware in an analytics system is an analytics server. An analytics server is used by an analyst to analyze the data and produce the output. An analytics server can deliver output in a variety of formats. A variety of analytics software supports each of the three activities in the analytics process—acquiring, analyzing, and publishing. While some software products such as Excel can support several of the activities, very few support each of the steps. SAP, Oracle, and Microsoft offer a comprehensive suite of analytics software products that support each of the activities for medium to large organizations. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 92) What are the two types of people that use analytics systems? Describe their roles. Answer: There are two distinct types of people that use an analytics system: end users and BI analysts. Users interact with the output to find patterns in the data; Analytics systems are designed to help them become informed. Analysts often assist in this process by creating useful output and developing sound procedures for users to follow. However, analysts typically do not possess the business knowledge about the user's subject and must rely on the user for good questions to ask the data. The key is for users and analysts to collaborate effectively. Difficulty: Easy AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems

93) How is data collected and stored in an analytics system? Answer: Data can be collected for an analytics system in two ways. First, the data may come from an operational database that contains the data from the operational processes in a company. Second, data may come from other sources that are then combined with operational process data. In either case, once the data are collected they are then prepared and stored in a data warehouse, a repository for the organization's analytics data. Analytics data are kept in a data warehouse because a data warehouse is specially designed to make sorting and retrieving large volumes of data efficient. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3: What are the key components of an analytics IS? Course LO: Compare and contrast different analytics systems 94) Describe the features of descriptive analytics. Answer: Descriptive analytics applies simple operations to reveal patterns in the data. The analysis of the data is modest: Data are sorted and grouped, and simple totals and averages are calculated using operations such as sorting, grouping, and summing. Descriptive analytics uses four basic operations: sorting, filtering, grouping, and calculating. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 95) Describe how an RFM score is calculated on a scale of 1 to 5. Answer: To produce an RFM score, the RFM analysis first sorts customer purchase records by the date of their most recent (R) purchase. The 20 percent of the customers having the most recent orders are given an R score of 1, the 20 percent of the customers having the next most recent orders are given an R score of 2, and so forth, down to the last 20 percent, who are given an R score of 5. The RFM analysis then re-sorts the customers on the basis of how frequently they order. The 20 percent of the customers who order most frequently are given an F score of 1, the next 20 percent of most frequently ordering customers are given a score of 2, and so forth, down to the least frequently ordering customers, who are given an F score of 5. Finally, the analysis sorts the customers again according to the amount spent on their orders. The 20 percent who have ordered the most expensive items are given an M score of 1, the next 20 percent are given an M score of 2, and so forth, down to the 20 percent who spend the least, who are given an M score of 5. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems

96) Describe OLAP slice and dice technique. Answer: OLAP slicing and dicing allows the user to execute the basic analysis operations of sorting, grouping, filtering, and calculating interactively; that is, the user or analyst can experiment with one operation, assess the output, and then go back and reanalyze the data. While it is a common way to analyze data, it also is frequently used by analysts to explore a new set of data. Difficulty: Easy AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 97) Describe regression analysis with the help of an example. Answer: Regression analysis is a type of data mining analysis that measures the impact of a set of variables on another variable. For example, analysts in an organization can create a prediction to next year's Net Sales. If the economy grows by 2% and sales this year were $10 million, then sales next year will be 3 + (20 × .02) + 10 = $13.4 million. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4: How do analytics information systems support analytics activities? Course LO: Compare and contrast different analytics systems 98) Explain the two ways that analytics is helping the airline industry. Answer: Analyzing data allows airlines to make very accurate predictions of engine failure so that preventative repairs can be made. Analysis of jet engine data has led to remarkable reductions in engine failures over the past several decades. Analysis also helps airlines determine optimal engine power settings so that fuel consumption can be minimized. PASSUR Aerospace provides a service called RightETA. PASSUR acquired data from years of airplane arrivals to each runway at all the major airports, including GPS location data, weather, winds, ground traffic congestion, and other magic ingredients. Analyzing the data, it continually creates an incredibly accurate prediction of an arrival time based on the current location of a plane. The savings is estimated to be several million dollars per year at major airports. Difficulty: Moderate AACSB: Information Technology Chapter LO: 5: How can analytics information systems support business processes? Course LO: Discuss the role of information systems in supporting business processes

99) Briefly describe four categories of techniques that help address the challenges of Big Data. Answer: 1) NoSQL Databases: a NoSQL database is a non-relational database designed to support very high processing rates on relatively simple and unstructured data that is replicated across many servers. 2) MapReduce is a software technique for analyzing large amounts of data on thousands of computers working in parallel. The basic idea is that a batch of data is broken into pieces and thousands of independent processors search these pieces for something of interest. 3) Hadoop is scalable open source software framework supported by the Apache Foundation that stores and analyzes Big Data on distributed computers. 4) SAP HANA addresses the Big Data challenge by storing and analyzing data in a single computer system. Traditional database systems as well as Hadoop keep data in secondary storage and must access it to process it. However, these trips to and from secondary storage slow down database operations. SAP built HANA to eliminate these trips and keeps the entire database in memory. Difficulty: Moderate AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 100) How does Big Data analytics support the auditing process? Answer: The Auditing process is the official, unbiased examination of an organization's financial accounts. Traditionally, to execute an audit, the audit team would select a sample of financial transactions over a recent period of time and examine these transactions for unusual activity. With Big Data, this process no longer needs to sample a subset of transactions; it can examine every transaction. Not only can all the transactions be evaluated, the audit can happen in real time as the transactions are occurring, not at the end of a month or year. If discrepancies are occurring, a real-time assessment can identify them. In addition, with Big Data the analysis can be much more sophisticated; the number and variety of unusual patterns that can be evaluated are much greater than before. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 101) How does Big Data analytics support the cancer treatment process? Answer: Big Data can improve the treatment of some forms of cancer. With Big Data, a patient who has recently been diagnosed with cancer can undergo DNA testing, and the patient's DNA data and cancer cell genome data can be collected and analyzed. This data can then be compared to the data from other patients who were previously diagnosed with a similar type of cancer. If near matches are found, successful treatment sequences can be used for the new patient. This will help doctors prescribe better treatments for their patients. Not only can the treatment process be improved, but treatment can be started earlier; the process of creating a genetic map of a patient used to take 2 days, but now with Big Data systems it can be done in 20 minutes. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems

102) How has Big Data analytics improved the urban services processes in Barcelona, Spain? Answer: The city of Barcelona, Spain, had, at one time, the distinction of having the world's worst transportation grid. Like most cities, nearly 30 percent of this traffic was simply looking for a parking place. The city hired Cisco to install recording devices around the city to measure vehicle and pedestrian traffic, smart traffic lights to react to current traffic, parking sensors in the pavement to identify open parking locations, and trash container sensors to measure trash levels. Using this data, garbage trucks only empty full containers, open parking spots are quickly found, bus routes carry 30 percent more passengers, and drivers have access to real-time traffic patterns throughout the city. The city has reduced traffic by 20 percent and increased revenue by $50 million a year by selling parking location data. Even lampposts have sensors that turn on the LED lights only when traffic is near, saving the city $40 million a year. Barcelona uses business intelligence to be one of the world's smartest cities. Difficulty: Easy AACSB: Information Technology Chapter LO: 6: What is a Big Data analytics IS, and how is it used? Course LO: Compare and contrast different analytics systems 103) Describe the risks associated with missing data and nonintegrated data. Answer: Most operational and purchased data have problems that inhibit their usefulness. Purchased data often contain missing elements. Most data vendors state the percentage of missing values for each attribute in the data they sell. For analytics applications, though, a few missing or erroneous data points can be worse than no data at all because they bias the analysis. Another problem is nonintegrated data. A particular analytics analysis might require data from an ERP system, an e-commerce system, and a social networking application. It is the function of personnel in the data warehouse to integrate such data, somehow. Nonintegrated data may also be the result of information silos within the organization. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 104) Describe the major risks faced by businesses from analytics users. Answer: User resistance is a common malady of all information systems. Users resist analytics systems for several reasons—it may change their job, require knowledge the user does not have, or distract them from their primary work. Users may be entranced by the sophistication of the viz without realizing the underlying data is fairly meaningless. A third type of user problem is that users may underestimate the cost of producing an analytics report. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems

105) What are the problems faced by analytics analysts on analytics projects? Answer: Analysts have a difficult time saying, "Enough." Many analytics projects have no obvious or convenient stopping point. Another problem with analytics systems is asking the wrong questions. A third problem occurs if analysts do not sufficiently collaborate with end users to find out what the end users need or to understand their exact problems. A fourth problem common with analysts, and even end users, is too much trust in the validity of the data or analysis. Finally, analysts, and again end users, have analytical biases that can lead to problems. One bias is overconfidence–we are more confident in our judgment than we should be. Another is availability–we think certain results will occur more often than they do if it is easier to remember that event. A third is belief perseverance–we inordinately persist in earlier beliefs even if valid data is presented to us to change our minds. Difficulty: Easy AACSB: Information Technology Chapter LO: 7: How do businesses manage the risks of an analytics IS? Course LO: Compare and contrast different analytics systems 106) How does SAP perform analytics? Answer: Like all ERP systems, SAP consolidates operational data in an OLTP database. Data from the OLTP or from other sources can be extracted and placed into the SAP OLAP database, which SAP calls a data warehouse (BW). Once in the warehouse, the data is formed into information cubes. Difficulty: Easy AACSB: Information Technology Chapter LO: 8: How does SAP do analytics? Course LO: Compare and contrast different analytics systems 107) What are three ways that SAP and the other ERP vendors also make it possible to analyze data with software from other companies? Answer: One common method is to download data from SAP data warehouses into an Excel file and then use Excel to analyze the data. The data can also be analyzed using Lumira, a popular data discovery visualization solution. Finally, using a specific report or dashboard that summarizes the data. Difficulty: Moderate AACSB: Information Technology Chapter LO: 8: How does SAP do analytics? Course LO: Compare and contrast different analytics systems 108) Describe the three changes that will affect the growth of analytics. Answer: One change that will affect analytics is the trend of augmented analytics. Augmented analytics blends artificial intelligence and analytics. A second change is a digital twin. These are digital replications of an object using real-time data, a digital counterpart of an actual thing. The third concern will be around data privacy for consumers. Difficulty: Moderate AACSB: Information Technology Chapter LO: 9: What new IS will affect the analytics process in 2031? Course LO: Compare and contrast different analytics systems 309 Copyright © 2022 Pearson Education, Inc.