TEST BANK for EXPERIENCING MIS THIRD CANADIAN EDITION by StudyGuide

TEST BANK John Trembley

EXPERIENCING MIS THIRD CANADIAN EDITION

David M. Kroenke Andrew Gemino Peter Tingling

Chapter 1: Information Systems and You

1) MIS only matters to MIS majors and not to students in other business disciplines. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 7 Topic: Q7 Skill: RECALL 2) Information systems are not created for the sheer joy of exploring technology. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 7; 9 Topic: Q7 Skill: RECALL 3) You must be a technology wizard to achieve the company’s goals and objectives using IT. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 8 Topic: Q5 Skill: RECALL 4) Moore's Law can be expressed as "the speed of a computer chip doubles every 20 months." a. True b. False Answer: a Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Diff: 1 Type: TF Page Reference: 14 Topic: Q6 Skill: RECALL 5) In the next decade unlimited storage will be almost free. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 18 Topic: Q6 Skill: APPLIED 6) Google uses a function called "content extraction" for Gmail accounts to understand the content of users’ e-mails. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 16 Topic: Q1 Skill: RECALL 7) Information system is a group of components that interact to produce information. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 10 Topic: Q1 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

8) Information systems must include the use of a computer. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 6 Topic: Q1 Skill: RECALL 9) According to Industry Canada, Canada's ICT industry has grown faster than the country's overall GDP since 2002. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 12 Topic: Q4 Skill: RECALL 10) Information technology (IT) refers to methods, inventions, standards, and products. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 10 Topic: Q1 Skill: RECALL 11) Most managers will get involved in purchasing computer hardware and building systems. a. True b. False Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Answer: b Diff: 1 Type: TF Page Reference: 7 Topic: Q5 Skill: APPLIED 12) MIS stands for "Management Information Sciences." a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 3 Topic: Q1 Skill: RECALL 13) MIS is synonymous with IT. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 10 Topic: Q3 Skill: RECALL 14) Information systems are created to solve business needs. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 7 Topic: Q2 Skill: APPLIED Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

15) E-mail is an example of an information system. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 13 Topic: Q1 Skill: RECALL 16) To gain a competitive advantage it is important that one be an IT developer. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 13 & 14 Topic: Q5 Skill: APPLIED 17) An important skill in business is to be able to identify opportunities for innovation through the use of information systems. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 13 & 14 Topic: Q5 Skill: APPLIED 18) MIS is the development and use of information systems to help organizations accomplish their goals and objectives. a. True b. False Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Answer: a Diff: 1 Type: TF Page Reference: 7 Topic: Q2 Skill: RECALL 19) Most innovative uses of IT have already been invented. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: VARIOUS IMPLIED Topic: Q4 Skill: APPLIED 20) The decreasing price and increasing power of computer chips is one of the main drivers for improvements in information systems. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 16 Topic: Q6 Skill: APPLIED 21) Moore's Law states that the price of microprocessors will be cut in half every 12 months. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 15 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Topic: Q6 Skill: RECALL 22) Understanding the implications of technological change allows for greater effectiveness of business professionals. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 18 Topic: Q6 Skill: RECALL 23) A combination of business and technology skills can open a number of doors in the new Canadian economy. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: VARIOUS Topic: Q6 Skill: APPLIED 24) This class is solely about learning how to use Excel and Access. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 18 Topic: Q7 Skill: RECALL

Chapter 1: Information Systems and You

25) According to "Outlook on Human Resources in the ICT Labour Market: 2008 - 2015" satisfactory communications and other business skills are important core skills for individuals looking for a career in this industry sector. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 14 Topic: Q5 Skill: RECALL 26) You can maximize the value of this course by personalizing the material a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 22 Topic: Q7 Skill: RECALL 27) The basic premise of Moore's law is a. IT makes people more efficient. b. the density of transistors on a computer chip doubles roughly every 20 months. c. people tend to want more information than they need. d. IT makes people more productive. e. computer memory is getting bigger. Answer: b Diff: 2 Type: MC Page Reference: 15 Topic: Q6 Skill: RECALL

Chapter 1: Information Systems and You

28) Social Networking sites generate revenue through a. government subsidy. b. subscription fees. c. social networking sites do not generate revenue. d. advertising. e. corporate sponsorship. Answer: d Diff: 1 Type: MC Page Reference: 8 Topic: Q2 Skill: APPLIED 29) Which of the following is an example of a social networking site? a. Youtube b. Yahoo.ca c. Facebook.com d. Wikipedia e. Google.ca Answer: c Diff: 1 Type: MC Page Reference: 8 Topic: Q2 Skill: RECALL 30) Which of the following is not considered a function of a social networking site? a. A repository for personal profiles. b. Video sharing. c. Searching for new / unused books. d. Indirect selling of products. e. Searching for friends.

Chapter 1: Information Systems and You

Answer: c Diff: 1 Type: MC Page Reference: 9 Topic: Q1 Skill: APPLIED 31) What is an Information System? a. An information system is a group of components that interact to produce information. b. Computer hardware and software. c. Software development process. d. A framework describing human computer interaction. e. An information gathering application. Answer: a Diff: 2 Type: MC Page Reference: 6 Topic: Q1 Skill: RECALL 32) How does IT differ from IS? a. IT costs money while IS doesn't. b. IT is a newer word for IS. c. IT refers to methods, invention, standards and products while IS is a system of hardware, software, data, procedures and people that produces information. d. IT and IS are the same. e. IT doesn't matter but IS does. Answer: c Diff: 2 Type: MC Page Reference: 10 Topic: Q3 Skill: APPLIED

Chapter 1: Information Systems and You

33) Which of the following best describes the five-component framework of IS? a. Hardware, software, data, procedures, and people b. Networks, software, servers, programmers, and managers c. Applications, people, standards, budgets, and software d. Storage, processing, input, output, and control e. Applications, processes, processing, data, and standards Answer: a Diff: 2 Type: MC Page Reference: 7 Topic: Q1 Skill: RECALL 34) Information systems exists to help businesses to a. save money. b. better organize our lives. c. be more profitable. d. be more competitive. e. archieve goals and objectives. Answer: e Diff: 1 Type: MC Page Reference: 7 Topic: Q2 Skill: RECALL 35) As a business professional, one needs to look at information systems only through the lens of a. business need. b. technology. c. cost savings. d. software. e. business processes. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Answer: a Diff: 2 Type: MC Page Reference: 14 Topic: Q5 Skill: APPLIED 36) Which of the following is the federal government agency responsible for categorizing industry sectors and collecting information about them? a. Industry Canada b. Bank of Canada c. Ministry of Finance d. Canada Revenue Agency e. Ministry of Defense Answer: a Diff: 1 Type: MC Page Reference: 11 Topic: Q4 Skill: RECALL 37) According to Industry Canada, the Canadian ICT sector in 2011 included over a. 30 000 companies. b. 32 000 companies. c. 40 000 companies. d. 10 000 companies. e. 28 000 companies. Answer: b Diff: 3 Type: MC Page Reference: 11 Topic: Q4 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

38) According to Industry Canada, what were the revenues of the Canada's ICT sector in 2010? a. 162 billion b. 1 billion c. 140 billion d. 150 billion e. 125 billion Answer: a Diff: 2 Type: MC Page Reference: 11 Topic: Q4 Skill: RECALL 39) According to Industry Canada, the average annual growth rate in the Canadian ICT sector since 2002 has been around a. 4%. b. the GDP growth rate. c. 5%. d. 6%. e. 8%. Answer: a Diff: 3 Type: MC Page Reference: 10 Topic: Q4 Skill: RECALL 40) What was the total number of Canadian workers employed by the ICT sector in 2010 according to Industry Canada? a. 563 000 b. 442 000 c. 592 000 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

d. 420 000 e. 223 000 Answer: a Diff: 2 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 41) How much did the average Canadian ICT worker earned in 2010 according to Industry Canada? a. $90 000 b. $49 000 c. $75 000 d. $67 000 e. $59 000 Answer: d Diff: 2 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 42) Which of the following segments of the ICT sector in Canada is responsible for the majority of this sectors revenue, according to Industry Canada? a. Software b. Manufacturing c. Services d. Export e. Hardware Answer: c Diff: 2 Type: MC Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Page Reference: 12 Topic: Q4 Skill: RECALL 43) Google uses Gmail's "content extraction" to a. to track all the online activities of gmail users. b. target advertising to Gmail users. c. sell advertising. d. find out the interests of gmail users. e. track IP addresses. Answer: b Diff: 2 Type: MC Page Reference: 16 Topic: Q6 Skill: RECALL 44) Gordon Moore is one of the founders of a. Intel Corporation. b. Adobe Systems. c. Cisco Systems. d. Microsoft Corporation. e. National Semiconductors. Answer: a Diff: 1 Type: MC Page Reference: 15 Topic: Q6 Skill: RECALL 45) Moore's Law states that a. the price of a computer drops by 50% every 20 months. b. the number of transistors on a microprocessor doubles every 12 months. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

c. the price of a computer drops by 50% every 12 months. d. the number of transistors per square inch on an integrated chip doubles every 20 months. e. the price of a microprocessor decreases by 50% every 20 months. Answer: d Diff: 1 Type: MC Page Reference: 15 Topic: Q6 Skill: RECALL 46) Which ratio has fallen dramatically over the years due to Moore's Law? a. Speed/reliability b. Price/performance c. Transistor/performance d. Price/Megahertz e. Cost/benefit Answer: b Diff: 2 Type: MC Page Reference: 15 Topic: Q6 Skill: RECALL 47) Which of the following will essentially be free within the next decade? a. Web sites b. Data storage c. Routers d. PCs e. Networks Answer: b Diff: 1 Type: MC Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Page Reference: 18 Topic: Q6 Skill: RECALL 48) Hal Varian suggests that mobility devices will change “what it means to go to work.” What does he mean by this? a. There will be less work. b. Networks are a thing of the past. c. You will have to go to the work. d. You will deal with work at home. e. The work will come to you. Answer: e Diff: 2 Type: MC Page Reference: 17 Topic: Q6 Skill: APPLIED 49) Which of the following is an example of a company that offers a large amount of free IT resources? a. Wal-Mart b. Amazon c. Google d. Gartner e. Pearson Publishing Answer: c Diff: 2 Type: MC Page Reference: VARIOUS Topic: Q5 Skill: APPLIED 50) What does ICT stand for? a. Information Communications Terminology Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

b. Information Computing Technology c. Information Communications Technology d. Industrial Communications Technology e. Industrial Computing Technology Answer: c Diff: 1 Type: MC Page Reference: 14 Topic: Q5 Skill: RECALL 51) Which of the following are not the responsibilities of the user of an Information System? a. Backing up data. b. Programming the system. c. Learn how to employ the system to accomplish your goals. d. Help recover the system. e. Protecting the security of the system and its data. Answer: b Diff: 3 Type: MC Page Reference: VARIOUS Topic: Q5 Skill: APPLIED 52) The Running Room web site a. handles online purchases. b. provides unique services that are not available in stores. c. provides discussion groups. d. provides information efficiently to customers. e. all of the above. Answer: e Diff: 3 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Type: MC Page Reference: 21 Topic: Q5 Q6 Skill: APPLIED 53) ________ is (are) often the most important part of an information system. a. People b. Processes c. Hardware d. Data e. Software Answer: a Diff: 2 Type: MC Page Reference: VARIOUS Topic: Q5 Skill: APPLIED 54) MIS can be defined as a. the development and use of information systems that achieve business goals and objectives. b. the use of information systems to develop business strategies. c. the use of information systems that achieve business goals and objectives. d. the development of information systems that helps a business to save money. e. the development and use of information systems to cut cost. Answer: a Diff: 1 Type: MC Page Reference: 7 Topic: Q2 Skill: RECALL 55) The critical difference between information systems and information technology is? a. The computers. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

b. The way computers are used. c. The people. d. The information and data. e. The computer programs. Answer: c Diff: 3 Type: MC Page Reference: 10 Topic: Q3 Skill: APPLIED 56) Google's use of "content extraction" with Gmail is a concern for? a. Academics b. Google c. Privacy advocates d. Governments e. Competitors Answer: c Diff: 3 Type: MC Page Reference: 16 Topic: Q6 Skill: APPLIED 57) According to Industry Canada, the percentage of all Canadian ICT workers working in ICT software and computer services in 2010 was a. 27% b. 73%. c. 75%. d. 67%. e. 69%. Answer: a Diff: 2 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 58) According to Industry Canada, the total number of jobs in the Canadian ICT user industries sector was about a. 678,000 b. 71,000 c. 17,000 d. 563,000 e. 580,000 Answer: a Diff: 2 Type: MC Page Reference: 12 Topic: Q5 Skill: RECALL 59) Which of the following sectors in Canada's ICT industry had the greatest amount of employment in Canada in 2007, according to Industry Canada? a. Law enforcement b. Manufacturing c. Pharmaceutical Research d. Education e. Software and computer services industries Answer: e Diff: 2 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL

Chapter 1: Information Systems and You

60) According to Industry Canada, what is the percentage of workers who have a degree in the software and computer services industry? a. 29% b. 23% c. 53% d. 43% e. 47% Answer: c Diff: 3 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 61) According to Industry Canada, the average earnings of a software and computer services worker in Canada in 2006 is a. about $62 000. b. about $85 000. c. about $72 000. d. about $55 000. e. about $67 000. Answer: c Diff: 3 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 62) According to Industry Canada, in 2010 the percentage of Canadian ICT workers who have a university degree is a. 44%. b. 40%. c. 41%. d. 43%. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

e. 42%. Answer: a Diff: 3 Type: MC Page Reference: 12 Topic: Q4 Skill: RECALL 63) All of the following are components of an information system except a. procedures. b. culture. c. people. d. software. e. hardware. Answer: b Diff: 2 Type: MC Page Reference: 6 Topic: Q1 Skill: RECALL 64) According to Moore's Law, an integrated chip's speed and power should ________ every 20 months. a. grow 50% b. increase exponentially c. increase 1% d. grow 100% e. gradually increase Answer: d Diff: 3 Type: MC Page Reference: 15 Topic: Q6 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Skill: APPLIED 65) The cost as measured per 10 000 transistors on computer chips has been ________ steadily over time. a. gradually increasing b. dropping c. keeping pace d. unchanged e. increasing drastically Answer: b Diff: 3 Type: MC Page Reference: 16 Topic: Q6 Skill: APPLIED 66) It is expected that the price and power of computer chips will ________ over the next decade. a. stay about the same b. obey Moore's Law c. shrink d. continue to grow slowly e. grow more dramatically Answer: b Diff: 2 Type: MC Page Reference: 16 Topic: Q6 Skill: RECALL 67) An information system helps businesses achieve a. its goals and objectives. b. parity. c. waking up employees. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

d. security. e. fairness. Answer: a Diff: 1 Type: MC Page Reference: 7 Topic: Q2 Skill: RECALL 68) Information technology focuses on the hardware, software, and ________ components of an information system. a. data b. security c. procedures d. software e. people Answer: a Diff: 2 Type: MC Page Reference: 10 Topic: Q3 Skill: RECALL 69) Information technology only becomes useful when it is combined with the people and ________ components of an information system. a. process b. software c. hardware d. data e. procedure Answer: e Diff: 2 Type: MC Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Page Reference: 10 Topic: Q3 Skill: RECALL 70) One example of a simple information system that business people use would be a. instant messaging. b. a hard drive. c. a cell phone. d. a keyboard. e. a wireless mouse. Answer: a Diff: 2 Type: MC Page Reference: 10 Topic: Q3 Skill: APPLIED 71) A blog would be an example of a. IT procedures. b. an information technology. c. an information system. d. an email system. e. an infrastructure system. Answer: c Diff: 3 Type: MC Page Reference: 10 Topic: Q3 Skill: APPLIED 72) The "Outlook on Human Resources in the ICT Labour Market: 2008-2015" reports that there is a dramatic need for individuals with core skills that include a. communications skills. b. non-technical skills. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

c. basic computer skills. d. accounting skills. e. marketing skills. Answer: a Diff: 3 Type: MC Page Reference: 14 Topic: Q4 Skill: RECALL 73) Hal Varian notes that for business people a. the ability to handle data will be important for decades to come. b. learning about technology is not important. c. information technology does not change business. d. basic computer skills will be important for decades to come. e. information systems do not affect the way we work. Answer: a Diff: 3 Type: MC Page Reference: 10 Topic: Q6 Skill: APPLIED 74) A secondary focus of this class is a. learning to use Access. b. learning to use tools like Excel and Access. c. learning how to use tools like Excel and Access to accomplish a business purpose. d. learning to use Excel. e. to better understand business. Answer: c Diff: 3 Type: MC Page Reference: 18 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Topic: Q7 Skill: APPLIED 75) David Ticoll suggests that a. we will continue to see a divide between the real and the virtual world. b. we have already seen the pinnacle of network development. c. the technology trends of today will make performance-enhancing innovations available in almost every industry. d. we will continue to have problems in finding the hidden meaning from data. e. the cost of storage will almost be free in the next decade. Answer: e Diff: 3 Type: MC Page Reference: 18 Topic: Q6 Skill: APPLIED 76) Social media applications include a. email. b. spreadsheets. c. videos. d. databases. e. social networking sites. Answer: e Diff: 1 Type: MC Page Reference: 8 Topic: Q2 Skill: RECALL 77) The ICT sector revenues in Canada in 2010 were $162 billion. Diff: 2 Type: FIB Page Reference: 11 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Topic: Q4 Skill: RECALL

78) Moore's Law tells us that the price/performance ratio of computers has fallen dramatically for years. Diff: 2 Type: FIB Page Reference: 11 Topic: Q4 Skill: RECALL 79) The term software is used to refer to computer components that are not hardware. Diff: 1 Type: FIB Page Reference: 6 Topic: Q1 Skill: RECALL 80) When using an information system, you will have responsibilities for protecting the security of the system and its data. Diff: 2 Type: FIB Page Reference: 8 Topic: Q2 Skill: RECALL 81) The definition of MIS is that information systems exist to help businesses achieve their ________. Diff: 3 Type: FIB Page Reference: 7 Topic: Q2 Skill: APPLIED 82) The Running Room has used its web site to increase its reach to customers. Diff: 2 Type: FIB Page Reference: 18 Topic: Q6 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

83) Moore's Law states that the number of transistors per square inch on an integrated chip doubles every 20 months. Diff: 2 Type: FIB Page Reference: 15 Topic: Q6 Skill: RECALL 84) Moore's Law has proved generally accurate for more than 40 years. Diff: 1 Type: FIB Page Reference: 15 Topic: Q6 Skill: RECALL 85) MIS is a group of components that interact to produce information. Diff: 1 Type: FIB Page Reference: 6 Topic: Q1 Skill: RECALL 86) The ICT sector in Canada, has had twice the overall growth of the national GDP since 2002. Diff: 2 Type: FIB Page Reference: 11 Topic: Q4 Skill: RECALL 87) MIS stands for management information system. Diff: 1 Type: FIB Page Reference: 7 Topic: Q1 Skill: RECALL 88) ________ are defined as the development and use of information systems that help businesses to achieve their goals and objectives.

Chapter 1: Information Systems and You

Diff: 1 Type: FIB Page Reference: 8 Topic: Q2 Skill: RECALL 89) A(n) information is a group of components designed to produce information. Diff: 1 Type: FIB Page Reference: 6 Topic: Q1 Skill: RECALL 90) Every information system can be thought of as consisting of five components. Diff: 2 Type: FIB Page Reference: 6 Topic: Q1 Skill: APPLIED 91) Every information system contains hardware, software, people, data and procedures. Diff: 2 Type: FIB Page Reference: 6 Topic: Q1 Skill: RECALL 92) Every information system contains hardware, software, people, data, and procedures. Diff: 2 Type: FIB Page Reference: 6 Topic: Q1 Skill: RECALL 93) The study of MIS is not just about learning to use spreadsheets and databases, but about learning how to use these tools to accomplish a(n) business purpose. Diff: 2 Type: FIB Page Reference: 13 Topic: Q5 Skill: APPLIED Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

94) Information technology (IT) concerns only the hardware, software, and data components of an information system. Diff: 2 Type: FIB Page Reference: 10 Topic: Q3 Skill: RECALL 95) Although simple, e-mail would be an example of a(n) information system. Diff: M Type: FIB Page Reference: 6 Topic: Q3 Skill: APPLIED 96) Changes in technology have advanced to a point where the content of an individual's email can now be used to determine the advertising that individual sees in their web mail account. This has resulted in privacy concerns. Diff: 3 Type: FIB Page Reference: 16 Topic: Q6 Skill: APPLIED 97) To understand MIS you need to both understand and relate business and technology to one another. Diff: 3 Type: FIB Page Reference: 13 Topic: Q5 Skill: APPLIED 98) The ability to use basic information systems is essential in today's work environment. Diff: 2 Type: FIB Page Reference: 13 Topic: Q5 Skill: APPLIED

Chapter 1: Information Systems and You

99) To gain a competitive advantage in today's work place your skills need to go beyond the basic use of information systems. Diff: 3 Type: FIB Page Reference: 13 Topic: Q5 Skill: APPLIED 100) In the next decade David Ticoll suggests that unlimited storage will almost be free. Diff: 2 Type: FIB Page Reference: 18 Topic: Q6 Skill: RECALL 101) The collision of the real world and the virtual world will be the result of cheap, reliable, and widely available networks. Diff: M Type: FIB Page Reference: 18 Topic: Q6 Skill: APPLIED 102) You can maximize the value of this course by personalizing the material. Diff: 2 Type: FIB Page Reference: 22 Topic: Q7 Skill: RECALL 103) What does Moore's law have to do with the amount of data being generated today? Do you see this trend continuing? Answer: Gordon Moore's famous observation was made in 1965. It projects the doubling of transistors every couple of years. Moore's Law has been maintained and still holds true today. With respect to storage devices, their capacity has been growing just as rapidly which, in turn, is driving down the price of storage. So now it is feasible to have many exabytes of storage for things like audio and video files. Yes this will most definitely continue to expand, and it is difficult to see where it will end, but things like real time video feeds and real time virtual reality simulations will take huge amounts of processing power and memory in order to store them. Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Diff: 3 Type: ES Page Reference: 15 Topic: Q6 Skill: APPLIED 104) Why is it important for business professionals to know about MIS? Answer: The decisions concerning what functions should be included in corporate information systems is too important to be simply left to the techies. Every business professional should have some knowledge about MIS so that they can be intelligent users and help the system designers to design better systems. Knowing what systems are capable of doing will help when they are interviewed by the systems analysts to determine what the system requirements of the new system will be. They will also have to frequently interact with techies in order to help debug existing systems and even to generate ideas for new applications to improve the company's competitive position. Diff: 2 Type: ES Page Reference: 18 Topic: Q6 Skill: APPLIED 105) How is IT different from an information system? Why is this important? Answer: Whereas IT is concerned with computer hardware, software, and data, which are certainly part of an information system, an information system is a broader concept than IT by itself. Information systems include IT, but also focus on the people that use it and the procedures for using it properly. This is important because IT is just a tool and to get the most out of it, we need to realize that people have to be trained and that proper procedures for using it have to be in place. Diff: 3 Type: ES Page Reference: 10 Topic: Q3 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

106) Explain the difference between Information Technology (IT) and Information Systems (IS). Answer: Information technology and information systems are two closely related terms, but they are different. Information technology refers to methods, inventions, standards, and products. As the term implies, IT refers to raw technology, and it concerns only the hardware, software, and data components of an information system. In contrast, an information system is a system of hardware, data, procedures, and people that produce information. Diff: 2 Type: ES Page Reference: 10 Topic: Q3 Skill: RECALL 107) Describe the functions of a social networking site. Answer: Social Networking sites provides users with the ability not only to create his/her own personal profile, but also to link this profile to friends, family, team members, and other web acquaintances with similar sites. Diff: 3 Type: ES Page Reference: VARIOUS Topic: Q1 Q2 Skill: APPLIED 108) What does the 5 component framework of Information Systems entail? Answer: The 5 component framework of Information Systems consist of hardware, software, data, procedures, and people. Diff: 3 Type: ES Page Reference: 10 Topic: Q1 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Skill: RECALL 109) What are the responsibilities of a user of Information Systems? Answer: In addition to learning how to use a system, a user is also responsible for protecting the security of the system and its data. When the system fails, a user will have tasks to perform while the system is down, as well as tasks accomplish to help recover the system correctly and quickly. Diff: 3 Type: ES Page Reference: VARIOUS Topic: Q5 Skill: APPLIED 110) Describe the essence of Moore's Law. Answer: In 1965, Gordon Moore said that because of technology improvements in electronic chip design and manufacturing, "The number of transistors per square inch on an integrated chip doubles roughly every 2 years (20 months)." Diff: 3 Type: ES Page Reference: 14 Topic: Q6 Skill: APPLIED 111) What is the definition of MIS? Answer: MIS is the development and use of information systems that help businesses achieve their goals and objectives. This definition has three key elements: development and use, information systems, and business goals and objectives. Diff: 2 Type: ES Page Reference: 6 Topic: Q1 Copyright © 2014 Pearson Canada Inc.

Chapter 1: Information Systems and You

Skill: RECALL 112) Describe an example of a company taking advantage of IT resources to further its business interests. Answer: Google uses "content extraction" to better it target its advertising on Gmail to users that may more likely be interested in the ads that they are being shown. The Running Room is using the web to create a better sense of community among its online customers. Diff: 3 Type: ES Page Reference: VARIOUS Topic: Q5 Skill: RECALL 113) What are the required qualifications for those who would like to take advantage of the jobs created by the software and computer services industry? Answer: It is a knowledge-intensive industry where approximately half of all workers process university degrees. Students in the Canadian economy who are working toward becoming business professionals cannot ignore the importance of understanding and working with information systems. Diff: 3 Type: ES Page Reference: 12 Topic: Q4 Skill: APPLIED

Chapter 2: Business Process Management and Decision Making

1) Business processes are synonymous with business systems. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 26 Topic: Q2 Skill: RECALL 2) You should always ask yourself “how can I use my time in school to enhance those skills I already have?” a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 44 Topic: Q8 Skill: RECALL 3) The inventory management process includes placing orders and receiving goods into inventory. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 26 Topic: Q2 Skill: APPLIED 4) In the payment process, the invoice is compared to the purchase order. a. True b. False Answer: a Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Diff: 3 Type: TF Page Reference: 27 Topic: Q2 Skill: APPLIED 5) A copy of the purchase order is sent to the customer. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 27 Topic: Q2 Skill: RECALL 6) A business process consists of activities, resources, facilities, and information. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 28 Topic: Q3 Skill: RECALL 7) Any item of value can be considered to be a potential resource for a business process. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 28 Topic: Q3 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

8) Activities transform resources and data into different kinds of resources and data. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 28 Topic: Q3 Skill: RECALL 9) An inventory database would be considered to be an example of a facility in the inventory management process. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 28 Topic: Q3 Skill: RECALL 10) The fact that it rained 1.2 inches today is an example of information. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 28 Topic: Q3 Skill: APPLIED 11) The fact that the sun rose this morning at 6:25 a.m. is an example of data. a. True b. False Answer: a Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Diff: 2 Type: TF Page Reference: 29 Topic: Q4 Skill: APPLIED 12) Data is another word for information. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 29 Topic: Q4 Skill: APPLIED 13) When data is presented with a meaningful context, it becomes information. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 29 Topic: Q4 Skill: RECALL 14) The information that is the output of one process can be viewed as a data input to another process. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 29 Topic: Q4 Skill: APPLIED Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

15) Each activity within a business process must use one, and only one, information system. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 28 Topic: Q3 Skill: RECALL 16) It is good business practice for a payment activity to have a single person assigned to approve payments and generate checks. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 33 Topic: Q6 Skill: RECALL 17) An executive information system supports strategic decision making. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 36 Topic: Q7 Skill: RECALL 18) A structured decision involves an understood and accepted method for making the decision. a. True b. False Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: a Diff: 2 Type: TF Page Reference: 36 Topic: Q7 Skill: RECALL 19) A transaction processing system helps managers allocate and utilize resources. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 35 Topic: Q7 Skill: RECALL 20) During intelligence gathering, the decision makers determine what is to be decided, what the criteria for the decision will be, and what data are available. a. True b. False Answer: a Diff: 3 Type: TF Page Reference: 37 Topic: Q7 Skill: RECALL 21) While weather is an unstructured phenomenon, weather forecasting is an example of structured decision making. a. True b. False Answer: a Diff: 3 Type: TF Page Reference: 37 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Topic: Q7 Skill: APPLIED 22) The quality of your thinking is a large part of the quality of the information system. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 39 Topic: Q8 Skill: RECALL 23) The review step may lead to another decision and another iteration of the decision making process. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 37 Topic: Q7 Skill: RECALL 24) Your mind and your thinking are not merely a component of the information systems you use; they are the most important component. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 37 Topic: Q8 Skill: RECALL

Chapter 2: Business Process Management and Decision Making

25) Information needs to be just barely sufficient for the purpose for which it is generated. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 30 Topic: Q4 Skill: RECALL 26) For information to be worth it’s cost, there must be an appropriate relationship between the cost of information and its value. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 30 Topic: Q4 Skill: RECALL 27) A business process is a. a network of activities used to accomplish business goals. b. a set of required steps in a production process. c. a network of activities, resources, facilities, and information that interact to achieve some business function. d. a set of actives in a value chain. e. a set of activities in a supply chain. Answer: c Diff: 2 Type: MC Page Reference: 27 Topic: Q2 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

28) An information system must produce information that is: a. worth it’s cost, relevant, barely sufficient, accurate. b. relevant, timely, all encompassing, worth it’s cost. c. just barely sufficient, only a year old, worth it’s cost. d. Timely, and accurate. e. accurate and worth it’s cost. Answer: a Diff: 3 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL 29) Which of the following are characteristics of good information? a. Worth it’s cost, timely, relevant, all encompassing. b. Timely, expensive but complete, relevant. c. Relevant, not many important errors, worth it’s cost. d. Timely, expensive but complete, accurate. e. Timely, relevant, worth it’s cost, barely sufficient, accurate. Answer: e Diff: 3 Type: MC Page Reference: 29 Topic: Q4 Skill: APPLIED 30) Relevant information refers to information that is a. worth the value paid to generate it. b. useful to both the context and the subject at hand. c. good for the purpose for which it is generated. d. produced in time for its intended use. e. correct and complete. Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: b Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL 31) Just barely sufficient information refers to information that is a. correct and complete. b. produced in time for its intended use. c. good for the purpose for which it is generated. d. not useful to the decision being made. e. useful to both the context and the subject at hand. Answer: c Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL 32) "Worth its cost" refers to information a. that is produced in time for its intended use. b. that is good for the purpose for which it is generated. c. that is collected in a low-cost manner. d. that has an appropriate relationship between its cost and its value. e. that is useful to both the context and the subject at hand. Answer: d Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL

Chapter 2: Business Process Management and Decision Making

33) Operational decisions refer to a. the control of resources and activities over a time period of less than one month. b. day-to-day activities. c. an understood and accepted method for making decisions. d. the allocation and utilization of resources. e. broader-scope, organizational issues. Answer: b Diff: 2 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 34) Managerial decisions refer to a. day-to-day activities. b. broader-scope, organizational issues. c. an understood and accepted method for making decisions. d. the allocation and utilization of resources. e. the control of resources and activities. Answer: d Diff: 2 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 35) Strategic decision refer to a. the allocation and utilization of resources. b. broader-scope, organizational issues. c. day-to-day activities. d. transactions details. e. an understood and accepted method for making decisions.

Chapter 2: Business Process Management and Decision Making

Answer: b Diff: 2 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 36) A Transaction Processing System supports a. transactional decisions. b. operational decisions. c. strategic decisions. d. executive decisions. e. managerial decisions. Answer: b Diff: 1 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 37) A Management Information System supports a. operational decisions. b. managerial decisions. c. strategic decisions. d. unstructured decisions. e. executive decisions. Answer: b Diff: 1 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 38) An Executive Information System supports Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

a. managerial decisions. b. strategic decisions. c. executive decisions. d. structured decisions. e. operational decisions. Answer: b Diff: 1 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 39) An understood and accepted method for making decisions is used to make a. managerial decisions. b. operational decisions. c. strategic decisions. d. executive decisions. e. structured decisions. Answer: e Diff: 3 Type: MC Page Reference: 38 Topic: Q7 Skill: RECALL 40) An unstructured decision making process a. is one for which there is an agreed upon decision-making method. b. is one for which there is no documentation required. c. is one for which there are no structured steps. d. is one for which there are no formal procedures. e. is one for which there is no agreed-on decision-making method. Answer: e Diff: 3 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Type: MC Page Reference: 36 Topic: Q7 Skill: RECALL 41) The step in a decision making process where decision markers determine what is to be decided, what the criteria for the decision will be, and what data are available is called a. alternatives formulation. b. decision analysis. c. intelligence gathering. d. the review step. e. the choice step. Answer: c Diff: 2 Type: MC Page Reference: 37 Topic: Q7 Skill: RECALL 42) The stage in a decision making process where decision makers lay out various alternatives is called a. decision analysis. b. intelligence gathering. c. alternatives formulation. d. the choice step. e. the review step. Answer: c Diff: 2 Type: MC Page Reference: 37 Topic: Q7 Skill: RECALL

Chapter 2: Business Process Management and Decision Making

43) The stage in a decision making process which a decision maker analyze the alternatives and selected one is called a. alternatives formulation. b. the choice step. c. intelligence gathering. d. decision step. e. the review step. Answer: b Diff: 2 Type: MC Page Reference: 37 Topic: Q7 Skill: RECALL 44) An activity can be defined as a. the carrying out of a business procedure. b. a series of steps in a business process. c. an action that supports a business strategy. d. transforming resources and information of one type into resources and information of another type. e. action performed by an actor. Answer: d Diff: 3 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 45) Items of value are referred to as a. money. b. valuables. c. resources. d. facilities. e. equipment. Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: c Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 46) The HELM system improves efficiency by eliminating a. computers aboard tugboats. b. multiple dispatcher log sheets. c. multiple data entries for each job. d. accurate paper work. e. the large number of people involved in completing a job. Answer: c Diff: 1 Type: MC Page Reference: 39 Topic: Q8 Skill: APPLIED 47) Knowledge derived from data can be described as: a. wisdom. b. information. c. knowledge. d. data. e. context. Answer: b Diff: 3 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL

Chapter 2: Business Process Management and Decision Making

48) Recorded facts or figures is (are) a. context. b. information. c. data. d. knowledge. e. processed information. Answer: c Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL 49) Data presented in a meaningful context can be described as: a. processed information. b. knowledge. c. information. d. processed knowledge. e. processed data. Answer: c Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: RECALL 50) Which of the following is arguably the most important component of an Information System? a. Software b. Hardware c. Processes d. Information e. People Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: e Diff: 3 Type: MC Page Reference: 32 Topic: Q6 Skill: APPLIED 51) The review step a. is when the organization makes a decision. b. is when the organization makes a decision and may lead to another decision. c. may lead to another decision. d. is when the organization reviews the results of the decision. e. is when the organization reviews the results of the decision and may lead to another decision. Answer: e Diff: 2 Type: MC Page Reference: 37 Topic: Q7 Skill: APPLIED 52) Which of the following is a structured decision? a. Fortune telling b. Performance appraisals c. Stock marketing forecasting d. Predicting the Super Bowl winner e. Weather forecasting Answer: e Diff: 3 Type: MC Page Reference: 36 Topic: Q7 Skill: APPLIED Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

53) Which of the following is an unstructured decision? a. Allocating furniture and equipment to employees b. Weather forecasting c. Determining the future book value of assets d. Stock marketing forecasting e. Airline pricing Answer: d Diff: 3 Type: MC Page Reference: 36 Topic: Q7 Skill: APPLIED 54) Which of the following is a managerial decision? a. Which invoices should be paid today b. Determining next year's IT budget c. Should we extend credit to a customer d. Determining how many daily transactions have occurred in a specified period e. Should our firm acquire a competing firm Answer: b Diff: 3 Type: MC Page Reference: 35 Topic: Q7 Skill: APPLIED 55) Which of the following is an operational decision? a. Determining next year's IT budget b. Should we extend credit to a customer c. What are our production goals for the next three months d. Which invoices should be paid today e. Should our firm acquire a competing firm Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: d Diff: 2 Type: MC Page Reference: 35 Topic: Q7 Skill: RECALL 56) Which of the following is a strategic decision? a. Should we extend credit to a customer b. Determining next year's IT budget c. What wage should we pay a particular employee d. Should our firm acquire a competing firm e. Which invoices should be paid today Answer: d Diff: 2 Type: MC Page Reference: 37 Topic: Q7 Skill: RECALL 57) Which is the following is most useful to a company? a. Knowledge b. Observations c. Decisions d. Information e. Data Answer: a Diff: 3 Type: MC Page Reference: 37 Topic: Q7 Skill: APPLIED

Chapter 2: Business Process Management and Decision Making

58) The average wage for a factory worker is an example of (a) a. data. b. business process. c. knowledge. d. strategy. e. decision. Answer: c Diff: 3 Type: MC Page Reference: 29 Topic: Q4 Skill: APPLIED 59) The statement that Jeff Parks earns less than half the average hourly wage of the Garden Department is a. policy. b. strategy. c. data. d. information. e. decision. Answer: d Diff: 3 Type: MC Page Reference: 29 Topic: Q4 Skill: APPLIED 60) Which systems are typically used during the alternatives formulation step? a. Word processors b. Digital imaging systems c. Presentation software d. Statistics packages e. Collaborative systems Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Answer: e Diff: 3 Type: MC Page Reference: 37 Topic: Q7 Skill: APPLIED 61) Which systems are typically used to analysis data and information during the choice step? a. Word processing packages b. Financial modeling tools c. Databases d. Digital imagining packages e. Presentation software Answer: b Diff: 3 Type: MC Page Reference: 37 Topic: Q7 Skill: APPLIED 62) Customer numbers and their names would be an example of the ________ component of an order management information system. a. software b. information c. procedure d. hardware e. people Answer: b Diff: 2 Type: MC Page Reference: 28 Topic: Q3

Chapter 2: Business Process Management and Decision Making

Skill: RECALL 63) Business systems are sometimes referred to as business a. networks. b. models. c. channels. d. processes. e. webs. Answer: d Diff: 2 Type: MC Page Reference: 26 Topic: Q2 Skill: RECALL 64) A business process is a network of information, resources, facilities and a. hardware. b. activities. c. systems. d. data. e. knowledge. Answer: b Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 65) In the inventory management process, quality inspection would be viewed as a(n) a. activity. b. information output. c. data input. d. resource. Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

e. facility. Answer: a Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: APPLIED 66) An activity can be ________ or _________ and sometimes blended, depending on how the procedures are executed. a. external, internal b. manual, automated c. internal, automated d. automated, integrated e. integrated, manual Answer: b Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: recall 67) In an automated activity the computer hardware receives its instructions from (the) a. version control program. b. network protocols. c. people. d. software. e. Web services. Answer: d Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Skill: RECALL 68) Because they have input into the inventory management process, both suppliers and customers are viewed as a. information outputs. b. data inputs c. resources. d. facilities. e. activities. Answer: c Diff: 3 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 69) The truck that delivers the orders to the receiving and stocking activity would be viewed in the inventory management process as a(n) a. facility. b. information output. c. activity. d. resource. e. data input Answer: a Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 70) Inventories, databases, factories, and equipment are all examples of a. resources. b. information. c. transactions. Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

d. facilities. e. activities. Answer: d Diff: 2 Type: MC Page Reference: 28 Topic: Q3 Skill: RECALL 71) The on-time performance of all your vendors for a specific item would be an example of a. inventory b. data. c. communication. d. information. e. resource. Answer: d Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: APPLIED 72) For General Motors, the quantity of tire rims received would be an example of a. communication. b. knowledge. c. data. d. information. e. resource. Answer: c Diff: 2 Type: MC Page Reference: 29 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Topic: Q4 Skill: APPLIED 73) In an information system, the software and ________ components are both sets of instructions. a. data b. software c. people d. procedure e. hardware Answer: d Diff: 2 Type: MC Page Reference: 32 Topic: Q6 Skill: RECALL 74) Business processes generate information by combining key data in a specific a. context. b. activity. c. procedure. d. relevance. e. process. Answer: a Diff: 2 Type: MC Page Reference: 29 Topic: Q4 Skill: APPLIED 75) In an information system the people and ________ components are considered to be actors since they can take specific actions. a. hardware b. data Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

c. people d. procedure e. software Answer: a Diff: 2 Type: MC Page Reference: 32 Topic: Q6 Skill: RECALL 76) _________ would be one of the factors that lead to designing fully automated systems. a. High skill employee positions b. Tasks that require significant employee data inputs c. Low turnover employee positions d. High turnover employee positions e. Tasks that require significant human judgement Answer: d Diff: 3 Type: MC Page Reference: 33 Topic: Q6 Skill: RECALL 77) ________ is (are) instructions for hardware and _________ is (are) instructions for people. a. Procedures, software b. Software, processes c. Data, processes d. Machine instructions, user manuals e. Software, procedures Answer: e Diff: 2 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Type: MC Page Reference: 32 Topic: Q6 Skill: RECALL 78) If you do not know what to do with the information that your IS produces (even if it is a perfectly functioning IS): a. you likely started with faulty data. b. you probably have the wrong communications software. c. ask a techie for a translation. d. you can still make decisions based on that information. e. you are wasting your time and money. Answer: e Diff: 3 Type: MC Page Reference: 39 Topic: Q8 Skill: APPLIED 79) Business Process Modeling Notation provides four graphical elements that can be used to document a process. Diff: 2 Type: FIB Page Reference: 28 Topic: Q3 Skill: RECALL 80) Human resources personnel say that networking is one of the most effective ways of finding a job. Diff: 2 Type: FIB Page Reference: 44 Topic: Q8 Skill: RECALL 81) A purchase order lists the items ordered and the quantity requested of each item. Diff: 2 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Type: FIB Page Reference: 27 Topic: Q2 Skill: RECALL 82) The inventory management process works to balance the demands from customers with the inventory purchased from suppliers. Diff: 2 Type: FIB Page Reference: 27 Topic: Q2 Skill: RECALL 83) When stock in inventory hits a critical point, it is called the reorder point. Diff: 2 Type: FIB Page Reference: 27 Topic: Q2 Skill: RECALL 84) The most common definition of information is that it is derived from data, where data is defined as recorded facts. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 85) Good information is based on complete and correct data. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 86) Timely information is produced in time for its intended use. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

87) Information should be relevant to both the context and the subject. Diff: 2 Type: FIB Page Reference: 30 Topic: Q4 Skill: RECALL 88) For information to be worth its cost there must be an appropriate relationship between the cost of information and its value. Diff: 2 Type: FIB Page Reference: 30 Topic: Q4 Skill: RECALL 89) Software and procedure components are both sets of instructions. Diff: 2 Type: FIB Page Reference: 32 Topic: Q6 Skill: RECALL 90) Managerial decisions concern the allocation and utilization of resources. Diff: 2 Type: FIB Page Reference: 35 Topic: Q7 Skill: RECALL 91) An employee's name and number would be an example of data. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 92) The average compensation for sales agents in a company would be an example of information. Diff: 2 Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 93) Data are raw, unprocessed facts such as inventory levels. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 94) Automation is the process of moving human work to the computer side of the information system. Diff: 2 Type: FIB Page Reference: 33 Topic: Q6 Skill: RECALL 95) Data becomes information when it has a(n) context. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL 96) The fact that oil costs $74.25 a barrel is an example of data. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: APPLIED 97) Data is the bridge between the human and computer components of an information system. Diff: 2 Type: FIB Page Reference: 29 Topic: Q4 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

98) The way in which you run a program such as a spreadsheet program is called a(n) procedure. Diff: 3 Type: FIB Page Reference: 32 Topic: Q6 Skill: APPLIED 99) Instructions for how a computer should perform specific tasks is (are) called software. Diff: 2 Type: FIB Page Reference: 32 Topic: Q6 Skill: RECALL 100) From a business process view, order placement in an inventory management process would be a(n) activity. Diff: 3 Type: FIB Page Reference: 28 Topic: Q3 Skill: APPLIED 101) A customer acts as a(n) resource in the inventory management process. Diff: 3 Type: FIB Page Reference: 28 Topic: Q3 Skill: RECALL 102) A network of activities, resources, facilities, and information that interact to achieve some business function is a(n) business process. Diff: 2 Type: FIB Page Reference: 27 Topic: Q2 Skill: RECALL

Chapter 2: Business Process Management and Decision Making

103) From a business process viewpoint, a warehouse that stores inventory would be a(n) facility. Diff: 2 Type: FIB Page Reference: 28 Topic: Q3 Skill: RECALL 104) The payment activity transforms invoice information into payment information. Diff: 3 Type: FIB Page Reference: 28 Topic: Q3 Skill: APPLIED 105) An example of a(n) manual payment activity is seen when an accounts payable clerk receives and checks the accuracy of invoices against the purchase orders before issuing a payment. Diff: 2 Type: FIB Page Reference: 34 Topic: Q6 Skill: RECAL 106) Provide an example of a managerial decision. Answer: Any decisions that involves the allocation and utilization of resources. Typical managerial decisions are: How much should we budget for computer hardware and programs for department A next year? How many engineers should we assign to project B? Diff: 3 Type: ES Page Reference: 35 Topic: Q7 Skill: APPLIED 107) Provide an example of an operational decision.

Chapter 2: Business Process Management and Decision Making

Answer: Operational decisions concern day-to-day actives. Typical operational decisions are: How many widgets should we order from vendor A? Should we extend credit to vendor B? Which invoices should we pay today? Diff: 3 Type: ES Page Reference: 37 Topic: Q7 Skill: APPLIED 108) Provide an example of a strategic decision. Answer: Strategic decisions concern broader-scope, organizational issues. Typical decisions at the strategic levels are: Should we start a new product line? Should we open a centralized warehouse in Calgary? Diff: 3 Type: ES Page Reference: 36 Topic: Q7 Skill: APPLIED 109) Provide an example of an unstructured decision. Answer: An unstructured decision process is one for which there is no agreed-on decision-making method. Predicting the future direction fo the economy or the stock market is a famous example. Diff: 3 Type: ES Page Reference: 36 Topic: Q7 Skill: APPLIED 110) Provide an example of a structured decision. Answer: Copyright © 2014 Pearson Canada Inc.

Chapter 2: Business Process Management and Decision Making

A structured decision is one for which there is an understood and accepted method for making the decision. A formula for computing the reorder quantity of an item in inventory is an example of a structured decision process. Diff: 3 Type: ES Page Reference: 36 Topic: Q7 Skill: APPLIED 111) Describe the types of systems used during the intelligence gathering step. Answer: During intelligence gathering, email and video conferences facilitate communication among the decision markers. Also, during the first phase, decision makers use query and reporting systems as well as other types of data analysis applications to obtain relevant data. Diff: 3 Type: ES Page Reference: 37 Topic: Q7 Skill: RECALL 112) Describe the types of systems used during the choice step. Answer: During the choice step, analysis applications such as spreadsheets and financial and other modelling applications help decision makers to analyze alternatives. Diff: 3 Type: ES Page Reference: 37 Topic: Q7 Skill: RECALL 113) Describe the types of systems used during the implementation step. Answer:

Chapter 2: Business Process Management and Decision Making

The implementation stage involves the use of communications applications, and all types of information systems can be used during review. Diff: 3 Type: ES Page Reference: 37 Topic: Q7 Skill: RECALL 114) What does a transaction processing system support? Answer: A transaction processing system supports operational decisions. Diff: 2 Type: ES Page Reference: 35 Topic: Q7 Skill: RECALL 115) What does an executive information system support? Answer: Information systems that support strategic decision making are called executive information system. Diff: 2 Type: ES Page Reference: 36 Topic: Q7 Skill: RECALL 116) What is meant by a business process? Give an example. Answer: A business process is defined as being a network of activities, resources, facilities, and information that interact to achieve some business function. Sometimes they are also referred to as business systems. The text describes an example of the inventory management process which starts with Purchasing activities and ends with the Payment

Chapter 2: Business Process Management and Decision Making

activity. Other common processes might include the sales order management process and the employee recruiting process. Diff: 2 Type: ES Page Reference: 26 Topic: Q2 Skill: RECALL 117) What is data and how is it different from information? Answer: Data are simply the raw recorded facts and figures. Data is one of the five basic components of an information system. The system turns data into information by classifying, summarizing, sorting it and giving it a meaningful context. Diff: 3 Type: ES Page Reference: 29 Topic: Q4 Skill: APPLIED 118) What are the components of a business process? Give examples of each. Answer: The components of a business process include activities, resources, facilities, and information. Activities transform resources and information from one type into another. This happens when a clerk checks a customer credit rating before entering in a sales order for that customer. Resources are items of interest to the process. They interact with the process but are not under direct control of the organization. These could be customers and vendors. Facilities include databases, inventories, factories and equipment. Information is what activities use to determine how to transform the inputs they receive into outputs they produce. Diff: 3 Type: ES Page Reference: 28 Topic: Q3 Skill: APPLIED

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

1) The goal of business process modeling is to provide a description of a process. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 47 Topic: Q1 Skill: RECALL 2) A company creates value just by creating a model of a business process. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 48 Topic: Q1 Skill: RECALL 3) One of the added values a business process model provides is the notion of making individuals process aware. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 48 Topic: Q1 Skill: APPLIED 4) MS Visio files can be identified by their .psd filename extension. a. True b. False Answer: b Diff: 2 Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Type: TF Page Reference: 48 Topic: Q2 Skill: RECALL 5) Data flow diagrams, UML and systems flowcharts are common process modeling techniques. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 49 Topic: Q2 Skill: RECALL 6) Data flow diagramming is used by approximately 60% of all data modeling practitioners. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 49 Topic: Q2 Skill: RECALL 7) The most commonly used process modleling application is MS Visio, which is used by approximately 74% of all practitioners. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 49 Topic: Q2 Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Skill: RECALL 8) In MS Visio the data store symbolizes a place where you would purchase IS applications. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 9) DFD’s use a set of relatively simple shapes as representations of parts of a business process. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 10) There are three basic rules for drawing a DFD. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 11) Every process should have at least two data flow connectors coming into it and least two data flow connectors coming out of it. Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 12) An external entity should be connected directly to a data store. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 13) A data store must be connected to a process. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 51 Topic: Q3 Skill: RECALL 14) Levelling reveals increasing amounts of detail. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 51 Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Topic: Q3 Skill: RECALL 15) In DFD, the Top Process or Level 0 diagram does not provide much detail about the process. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 52 Topic: Q3 Skill: RECALL 16) The primary goal of business process modeling is to create a. a series of accounting checks and balances. b. a description of a flow of events or information in a business. c. a 3-D computer representation of a product. d. a list of people involved in customer service. e. competitive advantage. Answer: b Diff: 2 Type: MC Page Reference: 47 Topic: Q1 Skill: RECALL 17) For any organization, creating new value may include getting its people more involved in process knowledge. This is called making individuals ________________. a. educated. b. company citizens. c. process aware. d. alert. e. lean.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Answer: c Diff: 2 Type: MC Page Reference: 48 Topic: Q1 Skill: RECALL 18) Process models can create _____________ when they help individuals develop an improved understanding of the process as a whole and become more process aware. a. new products b. economies of scale c. job security d. information e. value Answer: e Diff: 2 Type: MC Page Reference: 48 Topic: Q1 Skill: RECALL 19) Applications that support the development of business process models are referred to as a. modeling tools. b. worksheets. c. information systems. d. graphics programs. e. props. Answer: a Diff: 2 Type: MC Page Reference: 48 Topic: Q2

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Skill: RECALL 20) ________________ include data flow diagrams, systems flowcharts, UML and BPMN. a. Storage views b. System layouts c. Information tables d. Process modeling techniques e. Data marts Answer: d Diff: 2 Type: MC Page Reference: 49 Topic: Q2 Skill: RECALL 21) Data flow diagrams are used by approximately _________ of all process modeling practitioners a. 78% b. 55% c. 78% d. 42% e. 60% Answer: e Diff: 2 Type: MC Page Reference: 49 Topic: Q2 Skill: RECALL 22) Process modeling practitioners most often use a. Oracle Developer b. Page Layout c. Rational Rose Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

d. MS Visio e. MS Excel Answer: d Diff: 2 Type: MC Page Reference: 49 Topic: Q2 Skill: RECALL 23) DFD shapes include a. process, octagons and interface. b. interface, neural, and connector. c. connector, data store and process. d. Page layout, process and interface. e. Insert, delete and typeover. Answer: c Diff: 2 Type: MC Page Reference: 50 Topic: Q3 Skill: RECALL 24) The data store symbolizes a place where data is a. either stored or retrieved. b. edited and corrected. c. audited and collated. d. collected and mined. e. scrubbed and normalized. Answer: a Diff: 3 Type: MC Page Reference: 51 Topic: Q3 Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Skill: RECALL 25) There are ________ rules for combining shapes. a. new b. three c. dozens of d. no e. data driven Answer: b Diff: 2 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL 26) A data store cannot be directly ______________ an external entity. a. purchased from b. listed with c. stored by d. connected to e. leased from Answer: d Diff: 3 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL 27) Business processes can be quite complex. Data flow diagrams use ________ to display the various details of the process. a. plates b. levels c. numbers d. data stores Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

e. connects Answer: b Diff: 3 Type: MC Page Reference: 51 Topic: Q3 Skill: APPLIED 28) Data flow diagrams are constructed by using a. a set of process references. b. four shapes and three rules. c. information systems. d. relative process references. e. activities and resources. Answer: b Diff: 1 Type: MC Page Reference: 50 Topic: Q3 Skill: RECALL 29) To create a new level after level 0, in MS Visio, we have to insert a new a. date. b. premise. c. diagram. d. number. e. person. Answer: c Diff: 2 Type: MC Page Reference: 52 Topic: Q3 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

30) Scheduling employees to support an international figure skating contest would be an example of _____________ that could be mapped by a process modeling tool. a. a process b. a set of variables c. a spreadsheet d. payroll e. security system Answer: a Diff: 2 Type: MC Page Reference: 52 Topic: Q3 Skill: APPLIED 31) MS Visio files have the file extenstion a. (.exe) b. (.osd) c. (.vsd) d. (.DFD) e. (.doc) Answer: c Diff: 2 Type: MC Page Reference: 48 Topic: Q2 Skill: RECALL 32) Every process should have at least one data flow __________ coming into it and out of it. a. diagram b. entity c. positive d. connector Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

e. MS Visio file Answer: d Diff: 1 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL 33) Data stores cannot be directly connected to an external ________. a. data store. b. entity. c. process. d. connector. e. flow. Answer: b Diff: 3 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL 34) A data store can be connected to an external entity a. at the end of the year. b. if the external entity is secure. c. if the external entity is connected to another data store. d. through a process. e. after an IS audit. Answer: d Diff: 3 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

35) The interface represents a(n) ______________ that exists outside the process. a. absolute name b. person or thing c. cell reference d. date e. data point Answer: b Diff: 2 Type: MC Page Reference: 51 Topic: Q3 Skill: RECALL 36) Flow Diagrams UML and systems flowcharts are common process modelling techniques. Diff: 1 Type: FIB Page Reference: 49 Topic: Q1 Skill: RECALL 37) In DFD’s, the data store symbolizes a place where data is either stored or retrieved. Diff: 1 Type: FIB Page Reference: 51 Topic: Q1 Skill: RECALL 38) Levelling reveals increasing amounts of detail. Diff: 2 Type: FIB Page Reference: 51 Topic: Q3 Skill: RECALL 39) There are three basic rules for drawing a Data Flow Diagram. Diff: 2 Type: FIB Page Reference: 51 Topic: Q3 Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Skill: RECALL 40) One of the added values a business process model provides is the notion of making individuals process aware. Diff: 2 Type: FIB Page Reference: 48 Topic: Q1 Skill: RECALL 41) There are four simple shapes used in Data Flow Diagrams. Diff: 2 Type: FIB Page Reference: 50 Topic: Q3 Skill: RECALL 42) Process models can create value when they help individuals develop an improved understanding of the process as a whole and become more process aware. Diff: 2 Type: FIB Page Reference: 48 Topic: Q1 Skill: RECALL 43) MS Visio is the most popular application used by data modeling practitioners. Diff: 2 Type: FIB Page Reference: 49 Topic: Q2 Skill: RECALL 44) The lowest amount of detail shown in a DFD is the Level 0 or top process. Diff: 2 Type: FIB Page Reference: 51 Topic: Q3 Skill: RECALL 45) Business process modeling can be seen as the creation of a diagram that provides an overview of a flow of events. Diff: 2 Type: FIB Page Reference: 47 Topic: Q1 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

46) Describe how business process modelling can add value to an organization. Be sure to include and define the term “process aware”. Answer: Business process modelling provides an organization with the big picture of its processes so that everyone involved in each process can have a wider and more inclusive perspective of the flow of events that occur towards the delivery of the final product or service. This modelling enhances communication and thus make individuals process aware. When people are process aware, they are expected to view their actions in the light of the larger business process, and they think of ways to improve the processes they are involved in. Diff: 2 Type: ES Page Reference: 48 Topic: Q1 Skill: APPLIED 47) List the rules that apply to combining shapes in data flow diagrams. Answer:

Diff: 3 Type: ES Page Reference: 51 Topic: Q3 Skill: RECALL 48) Define the four shapes in a data flow diagram and give a real-life example of each. Answer:

Application Extension 2a: Introduction to Business Process Modelling with MS Visio

Skill: APPLIED

Chapter 3: Productivity, Innovation and Strategy

1) Primary activities are activities where value is added directly to the product. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 64 Topic: Q3 Skill: RECALL 2) The increasing reliance on the web for information has created a digital divide between those who have Internet access and those who do not. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 80 Topic: Q6 Skill: RECALL 3) Threat of government regulation is one of the five forces in Porter's model. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 67 Topic: Q4 Skill: RECALL 4) Sustaining technologies are changes in technology that maintain the rate of improvement in customer value. a. True b. False Answer: a Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

Diff: 2 Type: TF Page Reference: 69 Topic: Q5 Skill: RECALL 5) Disruptive technologies introduce a very new package of attributes to the accepted mainstream products. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 69 Topic: Q5 Skill: RECALL 6) An organization responds to the structure of its industry by choosing a competitive strategy. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL 7) The productivity paradox suggests IT investments do not create business value. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 60 Topic: Q1 Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

Skill: RECALL 8) A value chain is a network of activities that improve the effectiveness of a good or service. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 63 Topic: Q3 Skill: RECALL 9) Porter's concept of a business chain is crucial for developing a competitive strategy. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 65 Topic: Q3 Skill: RECALL 10) As defined by Porter, a value chain is a network of value creating activities. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 65 Topic: Q3 Skill: RECALL 11) Sales and service would be examples of supporting activities in Porter's value chain model. a. True Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

b. False Answer: b Diff: 2 Type: TF Page Reference: 65 Topic: Q3 Skill: RECALL 12) Accounting functions like accounts receivables would be an example of a supporting activity in Porter's value chain model. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 65 Topic: Q3 Skill: APPLIED 13) An organization's goals and objectives are determined by the structure of its value chain. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 65 Topic: Q3 Skill: APPLIED 14) One way of assessing the structure of the adventure travel industry is to apply Porter's Five Forces Model. a. True b. False Answer: a Diff: 2 Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

Type: TF Page Reference: 69 Topic: Q4 Skill: APPLIED 15) In a large city, the threat of new entrants for the sandwich shop business is probably high. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: APPLIED 16) Among its suppliers, Wal-Mart is famous for not having much bargaining power. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: APPLIED 17) Porter identified five fundamental competitive strategies. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL

Chapter 3: Productivity, Innovation and Strategy

18) According to Porter's model, four competitive forces determine industry profitability. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL 19) The bargaining power of customers is one of the competitive forces identified by Porter. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL 20) The bargaining power of customers is one of the competitive strategies identified by Porter. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL 21) Some competitive advantages are less sustainable than others. a. True b. False Answer: a Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

Diff: 1 Type: TF Page Reference: 68 Topic: Q4 Skill: RECALL 22) The systems chosen to support a particular competitive strategy may be evaluated according to the support they give that strategy. a. True b. False Answer: a Diff: 3 Type: TF Page Reference: VARIOUS Topic: Q4 Q6 Skill: APPLIED 23) A call centre used for customer service would be an example of a support activity in the value chain. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 65 Topic: Q3 Skill: APPLIED 24) In Porter's Five Forces Model the linkages depict how competitive forces are deployed in an organization. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 67 Copyright © 2014 Pearson Canada Inc.

Chapter 3: Productivity, Innovation and Strategy

Topic: Q4 Skill: RECALL 25) Switching costs are those associated with network switches. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 71 Topic: Q6 Skill: RECALL 26) An information system that allows suppliers to view a company's inventory in realtime would provide a competitive advantage due to product differentiation. a. True b. False Answer: b Diff: 3 Type: TF Page Reference: 68 Topic: Q6 Skill: APPLIED 27) General Motors' OnStar system was developed so that car drivers could easily get help in emergency situations. This would be an example of an information system being used to differentiate a product. a. True b. False Answer: a Diff: 3 Type: TF Page Reference: 69 Topic: Q4 Skill: APPLIED

Chapter 3: Productivity, Innovation and Strategy

28) Which of the following is an example of a primary activity in a value chain? a. A manager preparing a production schedule b. A CFO preparing a budget c. An accountant preparing an income statement d. A computer technician backing up a file server e. A worker spray painting a car Answer: e Diff: 3 Type: MC Page Reference: 65 Topic: Q3 Skill: APPLIED 29) A primary activity in a value chain is best described as a. an activity that uses only raw materials. b. an activity that involves customer service and sales. c. an activity that requires the use of information systems. d. an activity which value is directly added to a product. e. the first activity in which value is created. Answer: d Diff: 2 Type: MC Page Reference: 64 Topic: Q3 Skill: RECALL 30) The physically assembly of a notebook computer is considered to be a. a support activity in a value chain. b. a production activity in a value chain. c. a primary activity in a value chain. d. a secondary activity in a value chain. e. a value adding activity in a value chain.

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Answer: c Diff: 2 Type: MC Page Reference: 64 Topic: Q3 Skill: APPLIED 31) Which of the following is an example of a supporting activity in a value chain? a. An accountant filing an income tax statement b. Assembling a product c. Product package design d. A bottle of wine being shipped to a warehouse e. Product safety tests Answer: a Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: APPLIED 32) A supporting activity in a value chain is best described as a. information technology related activities. b. activities that do not require manual labor. c. activities that support the primary activities in a value chain. d. activities that add no value to a value chain. e. maintenance related activities. Answer: c Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 33) The observed lack of productivity from IT investments is most likely the result of Copyright © 2014 Pearson Canada Inc.

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a. measurement errors. b. inflation. c. declining interest rates. d. the introduction of new technologies. e. continued drops in hardware prices. Answer: a Diff: 3 Type: MC Page Reference: 61 Topic: Q1 Skill: RECALL 34) The Productivity Paradox refers to a. increased spending on IT leading to decreased worker productivity. b. the evidence that suggests IT is irrelevant to worker productivity. c. increased IT investment leading to more sustainable competitive advantage. d. the lack of evidence of an increase in worker productivity associated with the massive increase in IT spending. e. falling computer prices due to increased processor speed. Answer: d Diff: 2 Type: MC Page Reference: 60 Topic: Q1 Skill: APPLIED 35) The difficulty in measuring productivity is largely due to a. the lack of measuring tools. b. the difficulty of measuring intangible benefits. c. an increasingly service-based economy. d. IT creating intangible benefits. e. the intangible benefits of IT in an increasingly service-based economy. Answer: e Copyright © 2014 Pearson Canada Inc.

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Diff: 3 Type: MC Page Reference: 61 Topic: Q1 Skill: RECALL 36) IT investments can generate value by a. limiting the opportunities for creating competitive advantages. b. decreasing productivity. c. creating larger and larger service based economies. d. limiting the ways corporations can compete. e. creating more efficient and effective business processes that lead to lower prices. Answer: e Diff: 3 Type: MC Page Reference: 61 Topic: Q1 Skill: APPLIED 37) Increasing efficiency means a. generating better quality products with less resources. b. maximizing the cost of production. c. shorter production times. d. accomplishing business processes with less input and/or higher speeds. e. higher speed processes at the cost of more resources and lower quality. Answer: d Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 38) "Doing things right" refers to a. efficiency. Copyright © 2014 Pearson Canada Inc.

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b. value creation. c. effectiveness. d. social responsibility. e. sustainability. Answer: a Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 39) "Doing the right things" refers to a. efficiency. b. social responsibility. c. improved quality. d. effectiveness. e. sustainability. Answer: d Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 40) A value chain (is) a. a group of activities that improve the effectiveness of a good or service. b. describes how a product moves through a distribution channel. c. a group of activities that improve the efficiency of a good or service. d. describes total amount of money spent on making a product. e. describes the transactions that occur between the vendor and the consumer. Answer: a Diff: 2 Type: MC Copyright © 2014 Pearson Canada Inc.

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Page Reference: 63 Topic: Q3 Skill: RECALL 41) Margin can be defined as a. the difference between the total cost of raw materials and the list price of a product. b. the difference of the price a customer is willing to pay and how much the company actually collects. c. the difference of the price a customer is willing to pay and the price a seller is willing to sell at. d. the difference between the selling price and the list price. e. the difference of the price a customer is willing to pay and the cost of moving the good or service through its value chain. Answer: e Diff: 2 Type: MC Page Reference: 64 Topic: Q3 Skill: RECALL 42) Which of the following is not a force in the Porter's five forces model? a. Threat of substitute products b. Bargaining power of suppliers c. Bargaining power of customers d. Threat of new entries e. Threat of government regulations Answer: e Diff: 2 Type: MC Page Reference: 67 Topic: Q4 Skill: RECALL 43) Which of the following is the best example of the bargaining power of suppliers? Copyright © 2014 Pearson Canada Inc.

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a. The customer's flexibility to switch suppliers at any time. b. The ability of a dominant microprocessor manufacturer to set industry standards and charge premium prices. c. The ability to negotiate better terms with a commodity producer after a competitive bidding process. d. The ability of a customer to shop around for suppliers. e. The inability for a customer to terminate a supply contract. Answer: b Diff: 3 Type: MC Page Reference: 68 Topic: Q4 Skill: APPLIED 44) Which of the following is a fundamental competitive strategy suggested by Porter? a. Growing the diversity of the products and / or service offered b. Providing the best customer service c. Creating alliance partners d. Developing innovative products e. Differentiating its products Answer: e Diff: 3 Type: MC Page Reference: 68 Topic: Q4 Skill: RECALL 45) Which of Porter's five forces best describes the decline of film based photography? a. Threat of substitute products b. Bargaining power of suppliers c. Threat of new entry d. Bargaining power of customers e. Rivalry among existing firms

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Answer: a Diff: 2 Type: MC Page Reference: 67 Topic: Q4 Skill: APPLIED 46) High switching cost refers to a. a service charge that discourages customers from switching service providers. b. a strategy employed by companies to prevent customers from renegotiating service contracts. c. an illegal tactic that prevents customers from leaving by charging a prohibitive service termination fee. d. a strategy employed by companies to lock in customers by making it difficult or expensive to switch to another product. e. a strategy used by telecom providers to retain customers. Answer: d Diff: 2 Type: MC Page Reference: 71 Topic: Q6 Skill: RECALL 47) Which of the following best describes Bower and Christensen's idea of a sustaining technology? a. A technology innovation that increases the rate of improvement in customer value. b. A technology innovation that provides a very new package of attributes from the accepted mainstream products. c. A technology innovation that ensures environmental sustainability. d. A technology innovation that decreases the rate of improvement in customer value. e. A technology innovation that maintains the rate of improvement in customer value. Answer: e Diff: 2 Type: MC Page Reference: 69 Copyright © 2014 Pearson Canada Inc.

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Topic: Q5 Skill: RECALL 48) Which of the following can be considered a sustaining technology? a. An internal antenna for cell phones b. A BlackBerry device c. MP3 file format d. A typewriter e. A photocopier Answer: a Diff: 3 Type: MC Page Reference: 69 Topic: Q5 Skill: APPLIED 49) Disruptive technologies refer to a. technological innovations that increase the value of existing products in an incremental way. b. technological innovations that cause major disruptions in IT operations. c. technological innovations that decrease the value of existing products. d. technological innovations that repackage attributes of existing products in a totally new way. e. technological innovations that set a new standard, like High Definition Television. Answer: d Diff: 2 Type: MC Page Reference: 69 Topic: Q5 Skill: RECALL 50) Which of the following can be best described as a disruptive technology? a. Vulcanized rubber tires b. Compact Discs Copyright © 2014 Pearson Canada Inc.

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c. Digital music players d. Liquid Crystal Displays e. Portable computers Answer: c Diff: 2 Type: MC Page Reference: 69 Topic: Q5 Skill: RECALL 51) Which of the following can create a barrier to entry? a. Small capital investment required b. Patents c. Minimal training needed d. Can be done from home e. Low labour costs Answer: b Diff: 2 Type: MC Page Reference: 71 Topic: Q6 Skill: RECALL 52) In "IT doesn't Matter", Nicholas Carr argues that a. disruptive technologies tend to be commoditized over time and hence provides less strategic advantage. b. companies are spending too much money on IT. c. there are no productivity gains for any amount of IT investments. d. the marginal benefits of an IT investment decreases over time. e. technology adds no value to companies. Answer: a Diff: 3 Type: MC Copyright © 2014 Pearson Canada Inc.

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Page Reference: 72 Topic: Q7 Skill: RECALL 53) Sustained competitive advantage requires a. companies to find a distinctive way to compete. b. the elimination of the dominant firm. c. companies to seek patent protection for their products. d. the creation of barriers of entry. e. companies to use more than one competitive strategies. Answer: a Diff: 2 Type: MC Page Reference: 73 Topic: Q7 Skill: RECALL 54) Information systems can change industry structure by a. using sustaining technologies. b. using technologies that have become commodities. c. using competitive strategies. d. using the Internet. e. using disruptive technologies. Answer: e Diff: 2 Type: MC Page Reference: 70 Topic: Q5 Skill: RECALL 55) A company can use products to create competitive advantage by a. differentiating its products. b. raising prices. Copyright © 2014 Pearson Canada Inc.

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c. adding products to its product line. d. increasing brand awareness. e. lowering prices. Answer: a Diff: 2 Type: MC Page Reference: 71 Topic: Q6 Skill: RECALL 56) A company can create competitive advantage by a. lowering switching costs. b. refusing alliances. c. staying with the “tried and true” processes that competitors use. d. reducing barriers to entry. e. adding technology to its business process. Answer: e Diff: 3 Type: MC Page Reference: 72 Topic: Q7 Skill: APPLIED 57) How can competitive advantage through IT be sustained? a. Competitive advantage through IT cannot be sustained. b. By using as much proprietary technologies as possible. c. By making all employees sign nondisclosure agreements. d. By suing any competitor whom your firm suspect is copying its systems. e. By integrating all value creation processes into the organization. Answer: e Diff: 3 Type: MC Page Reference: 73 Copyright © 2014 Pearson Canada Inc.

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Topic: Q7 Skill: APPLIED 58) Which of the following makes it difficult for a company to copy a rival's information systems? a. The data is different in the two organizations. b. It is difficult to duplicate business processes. c. Technology may not be available for sale. d. mastering the art of integrating technology and people. e. Talent is hard to recruit. Answer: d Diff: 3 Type: MC Page Reference: 73 Topic: Q7 Skill: APPLIED 59) In the context of Porter's five forces model, customer's bargaining power refers to a. a customer's ability to create barriers to entry. b. a customer's ability to alter his/her value chain. c. a customer's ability to integrate IT. d. a customer's ability to negotiate better prices. e. a customer’s ability to create substitutes. Answer: d Diff: 2 Type: MC Page Reference: 67 Topic: Q4 Skill: APPLIED 60) Which of the following best describes the introduction of a disruptive technology in Canada? a. The introduction of high definition TV b. The introduction of movies on DVDs Copyright © 2014 Pearson Canada Inc.

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c. The introduction of satellite radio d. The introduction of digital projection in theatres e. The introduction of Automatic Teller Machines Answer: e Diff: 3 Type: MC Page Reference: 70 Topic: Q5 Skill: APPLIED 61) The network of activities that improve the effectiveness of a good or service is called a. a value chain. b. a supplier network. c. competitive strategies. d. a supply chain. e. a value web. Answer: a Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 62) What term is given to Robert Solow’s quote, "We see computers everywhere except in the productivity statistics"? a. The productivity divide b. The digital divide c. The efficiency paradox d. The productivity gap e. The productivity paradox Answer: e Diff: 2 Type: MC Copyright © 2014 Pearson Canada Inc.

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Page Reference: 60 Topic: Q1 Skill: RECALL 63) A network of value-creating activities is called a a. business strategy. b. value network. c. value chain. d. competitive advantage. e. primary value activities. Answer: c Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 64) ________ is an example of a primary activity in Porter's value chain model. a. New IS development b. Shipping and receiving c. HR planning d. Strategic planning e. Accounting Answer: b Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 65) ________ is an example of a support activity in Porter's value chain model. a. HR benefits management b. Production Copyright © 2014 Pearson Canada Inc.

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c. Raw materials acquisition d. Customer service e. Sales Answer: a Diff: 3 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 66) Receiving and storing raw materials for production would be an example of a(n) ________ in Porter's value chain model. a. support activity b. primary activity c. linkage d. integrated activity e. complex activity Answer: b Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 67) Finding a vendor and negotiating a price for raw materials for production would be an example of a(n) ________ in Porter's value chain model. a. linkage b. integrated activity c. complex d. support activity e. primary activity Answer: d Diff: 2 Copyright © 2014 Pearson Canada Inc.

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Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 68) According to Porter’s model of the value chain, the use of IS can make _______________ more effective or efficient. a. Primary activities b. Complex calculations c. supporting activities d. importing and exporting e. Linked departments Answer: c Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 69) Ideally, a competitive advantage should be a. industry-wide. b. short term. c. reproducible. d. shared with partners. e. sustainable. Answer: e Diff: 2 Type: MC Page Reference: 73 Topic: Q7 Skill: RECALL 70) The threat of new entrants in an industry is high when a. entry and exit costs are low. Copyright © 2014 Pearson Canada Inc.

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b. entry costs are high. c. distribution channels are few. d. entry and exit costs are high. e. few suppliers exist. Answer: a Diff: 3 Type: MC Page Reference: 68 Topic: Q4 Skill: APPLIED 71) Porter's five competitive forces include new vendors, suppliers, substitute vendors, customers and a. finance. b. rivalry of firms. c. economic pressures. d. efficiency of production. e. marketing. Answer: b Diff: 2 Type: MC Page Reference: 67 Topic: Q4 Skill: RECALL 72) ________ would be an example of using an information system to gain competitive advantage. a. Automating the general ledger system b. Developing a web service to share information with a supply chain partner c. Using PowerPoint for company presentations d. Using instant messaging while at work e. Printing internal reports in color Answer: b Copyright © 2014 Pearson Canada Inc.

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Diff: 3 Type: MC Page Reference: 71 Topic: Q6 Skill: APPLIED 73) Competitive ________ refers to a significant and sustainable benefit to a company over its competition. a. commerce b. strategy c. planning d. advantage e. disintermediation Answer: d Diff: 1 Type: MC Page Reference: 73 Topic: Q7 Skill: RECALL 74) ________ is an example of a support activity in Porter's value chain model. a. Goods production b. Warranty service c. Finished goods inventory management d. Payroll management e. Raw material acquisition Answer: d Diff: 2 Type: MC Page Reference: 65 Topic: Q3 Skill: RECALL 75) If Goodyear Tires buys a rubber plantation, this is an example of _____________. Copyright © 2014 Pearson Canada Inc.

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a. departmental integration b. quality controls c. backward integration d. value chain management e. reducing complexity Answer: c Diff: 3 Type: MC Page Reference: 64 Topic: Q3 Skill: APPLIED 76) If a diamond mine buys a diamond cutting operation this is an example of ___________. a. departmental integration b. backward integration c. economy of scale d. forward integration e. supporting activity Answer: d Diff: 3 Type: MC Page Reference: 64 Topic: Q3 Skill: APPLIED 77) Each value chain consists of one or more business ______________. a. activities. b. linkages c. processes. d. systems. e. partners. Answer: c Copyright © 2014 Pearson Canada Inc.

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Diff: 2 Type: MC Page Reference: 63 Topic: Q3 Skill: RECALL 78) An organization responds to the structure of its industry by choosing a (n) competitive strategy. Diff: 2 Type: FIB Page Reference: 68 Topic: Q4 Skill: RECALL 79) Primary activities are activities where value is added directly to the product. Diff: 2 Type: FIB Page Reference: 64 Topic: Q3 Skill: RECALL 80) A(n) value chain is a network of activities that improve the effectiveness of a good or service. Diff: 1 Type: FIB Page Reference: 63 Topic: Q3 Skill: RECALL 81) Disruptive technologies introduce a very new package of attributes to the accepted mainstream products. Diff: 1 Type: FIB Page Reference: 69 Topic: Q5 Skill: RECALL 82) Sustaining technologies are changes in technology that maintain the rate of improvement in customer value. Diff: 1 Copyright © 2014 Pearson Canada Inc.

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Type: FIB Page Reference: 69 Topic: Q5 Skill: RECALL 83) Organizations can lock in customers by making it difficult or expensive for customers to switch to another product. This is called establishing high switching costs. Diff: 2 Type: FIB Page Reference: 71 Topic: Q6 Skill: RECALL 84) The difference between the price the customer is willing to pay and the cost the company incurs in moving the goods or services through the value chain is called the margin. Diff: 2 Type: FIB Page Reference: 64 Topic: Q3 Skill: RECALL 85) Organizations can gain competitive advantage by reducing costs. Diff: 1 Type: FIB Page Reference: 72 Topic: Q6 Skill: RECALL 86) When a firm like Bell offers free anti-spam protection to their customers, they are trying to gain a competitive advantage by locking in their customers. Diff: 3 Type: FIB Page Reference: 71 Topic: Q6 Skill: APPLIED 87) When FedEx developed the package tracking application, they were trying to gain competitive advantage through IT innovation. Diff: 3 Type: FIB Copyright © 2014 Pearson Canada Inc.

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Page Reference: 77 Topic: Q6 Skill: APPLIED 88) A system that reduces costs for a company can result in significant competitive advantage. Diff: 2 Type: FIB Page Reference: 68 Topic: Q4 Skill: RECALL 89) The increasing reliance on the web for information has created a (n) digital divide between those who have Internet access and those who do not. Diff: 2 Type: FIB Page Reference: 80 Topic: Q1 Skill: RECALL 90) Describe the ways in which companies gain a competitive advantage over other companies seeking the same customers. Answer: Companies can gain competitive advantage by following one of Porter’s four competitive strategies. For example, a company can focus on being the cost leader (e.g., Walmart), or it can focus on differentiating its products from those of the competition (e.g., Apple). Furthermore, the company can use the cost or differentiation strategy across an industry, or it can focus its strategy on a particular industry segment. Diff: 2 Type: ES Page Reference: 68 Topic: Q4 Skill: RECALL 91) Companies want to create switching costs in order to lock in their customers. Diff: 2 Type: FIB Page Reference: 71 Copyright © 2014 Pearson Canada Inc.

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Topic: Q6 Skill: RECALL 92) Companies that make it difficult or expensive for customers to change to another product are increasing barriers to entry for potential competitors. Diff: 3 Type: FIB Page Reference: 71 Topic: Q6 Skill: APPLIED 93) An entry barrier makes it more difficult for new competition to enter the market. Diff: 1 Type: FIB Page Reference: 71 Topic: Q6 Skill: RECALL 94) A strategic alliance with other organizations can be used to establish standards, reduce purchasing costs, and jointly promote products. Diff: 2 Type: FIB Page Reference: 72 Topic: Q6 Skill: RECALL 95) By providing customers with the addresses and easy e-mail access between senders and receivers, a shipping company can reduce their customers' costs and lock in customers to their services. Diff: 3 Type: FIB Page Reference: 71 Topic: Q6 Skill: APPLIED 96) An innovative shipping information system for a small package delivery company helps to differentiate its package delivery service from competitors that do not have a similar system. Diff: 2 Type: FIB Page Reference: 77 Copyright © 2014 Pearson Canada Inc.

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Topic: Q6 Skill: APPLIED 97) Patents are difficult and expensive to enforce. Diff: 1 Type: FIB Page Reference: 72 Topic: Q7 Skill: RECALL 98) According to Nicholas Carr the more ubiquitous a technology the less competitive advantage it offers. Diff: 2 Type: FIB Page Reference: 72 Topic: Q7 Skill: RECALL 99) If I use my time wisely in school to create new skills, enhance the ones I have, and differentiate my skills from others, I am developing my competitive advantage. Diff: 2 Type: FIB Page Reference: 70 Topic: Q5 Skill: APPLIED 100) If I show a prospective employer that I have a unique set of skills that are especially suited to the job opening that they have, I am demonstrating that I have a(n) competitive advantage over other candidates. Diff: 2 Type: FIB Page Reference: 71 Topic: Q6 Skill: RECALL 101) Everett Rogers defined diffusion of innovation as the process by which an innovation gets communicated to members of a social system. Diff: 2 Type: FIB Page Reference: 70 Topic: Q5 Copyright © 2014 Pearson Canada Inc.

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Skill: RECALL 102) Describe the five stages through which the diffusion of an innovation occurs suggested by Rogers. Answer: The stages through which the diffusion of innovation happens are: 1) Knowledge: occurs when a person hears of the innovation for first time 2) Persuasion: occurs when the person becomes interested in the innovation and wants to learn more about it. 3) Decision: Occurs when the person has collected all the information necessary to make the decision of whether or not adopt the innovation. 4) Implementation: Occurs when the person has decided to pursue the innovation 5) Confirmation: Occurs when the person has used the innovation in its full potential and is happy about it. Diff: 2 Type: ES Page Reference: 70 Topic: Q5 Skill: RECALL 103) The decision stage in the diffusion of innovation happens when considering the pros and cons of purchasing an iPhone. Diff: 2 Type: FIB Page Reference: 70 Topic: Q5 Skill: RECALL 104) Diffusion of innovation is a way of thinking about the adoption of new technologies. Diff: 2 Type: FIB Page Reference: 70 Topic: Q5 Skill: RECALL 105) What is meant by the "value chain"? How does it apply to information systems? Answer: The value chain is a series of activities that include inbound logistics, operations, outbound logistics, marketing and sales, and service. It is a tool for modeling how an Copyright © 2014 Pearson Canada Inc.

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organization adds "value" that a customer is willing to pay for. The generic value chain has five primary and four support activities. By modeling the value chain and its linkages, Porter started a movement towards more integrated, cross-departmental business systems. Companies use the value chain to analyze how they add value and compare it to their competition. Combined with Porter's other work on competitive advantage, they can examine how IT can be used on each of the value chain activities to add value. Diff: 3 Type: ES Page Reference: 65 Topic: Q3 Skill: APPLIED 106) What are sustaining technologies? Answer: Sustaining technologies are changes in technology that maintain the rate of improvement in customer value. Diff: 2 Type: ES Page Reference: 69 Topic: Q5 Skill: RECALL 107) What is a value chain? Answer: A value chain is a network of activities that improve the effectiveness (or value) of a good or service. Diff: 1 Type: ES Page Reference: 63 Topic: Q3 Skill: RECALL 108) What is meant by effectiveness? Answer: Copyright © 2014 Pearson Canada Inc.

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Increased effectiveness means that the company considers offering either new or improved goods or services that the customer values. Diff: 2 Type: ES Page Reference: 63 Topic: Q3 Skill: RECALL 109) What are primary activities? Answer: Primary activities are activities where value is added directly to the product. Diff: 2 Type: ES Page Reference: 64 Topic: Q3 Skill: RECALL 110) What is meant by increasing efficiency? Answer: Increasing efficiency means that business processes can be accomplished either more quickly or with fewer resources and facilities (or both). Diff: 2 Type: ES Page Reference: 63 Topic: Q3 Skill: RECALL 111) How can IT increase productivity? Answer: Productivity for organizations can be increased either through increased efficiency or effectiveness. Diff: 3 Type: ES Copyright © 2014 Pearson Canada Inc.

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Page Reference: 63 Topic: Q3 Skill: APPLIED 112) What are three ways that value can be created by Information Technology investments? Answer: 1) through productivity gains, 2) altering the structure of competition, 3) more efficient operations which reduce cost to final customer. Diff: 3 Type: ES Page Reference: 65 Topic: Q3 Skill: APPLIED 113) What are the primary activities in Porter's value chain model? Give an example of an IS application that supports each of these activities. Answer: The generic value chain has five primary and four support activities. The primary activities of the value chain include inbound logistics, operations, outbound logistics, marketing and sales, and service. For inbound and outbound logistics one example application might be RFID. For operations, computer-controlled machines would be an example along with MRP. Outbound logistics systems might include shipping and planning. A sales and marketing example could include an order entry system, and for service, there are equipment maintenance systems. Diff: 3 Type: ES Page Reference: 64 Topic: Q3 Skill: RECALL 114) Describe Porter's Five Forces Model for Competition. How can IS be used in this model? Answer:

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Porter's model is based on the insight that a corporate strategy should meet the opportunities and threats in the organization's external environment. Competitive strategy should be based on an understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porter's model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry. The cost and complexity of an ERP or CRM can act as a barrier to new entrants. The disintermediation of Web-based SCM can decrease the bargaining power of suppliers and increase that of customer. Auctions like eBay can also increase the threat of substitute vendors and put pressure on prices. Diff: 3 Type: ES Page Reference: 66 Topic: Q4 Skill: APPLIED 115) When ATMs first came out, they provided a significant competitive advantage because they helped banks to differentiate themselves from others. Today, almost all banks provide access to these, so it is considered to be a standard service. How could you re-engineer a bank's ATM system in order to gain competitive advantage today? Answer: An ATM is one example of an automated information system. When they were first introduced they were an important innovation, that helped reduce costs of banking transactions and helped differentiate one bank from another. Nowadays, it is not enough for a bank to simply offer ATM service, but that they can be updated so that they provide additional statements for free or little charge such as lists of the 10 prior transactions. One of the biggest issues with ATMs is the fees charged. If you can reduce the cost of the ATM so that it is free to your customers this would certainly give your bank an advantage. If the cost of using a competing system were high, this would also help lock in the customers. Other services that could be offered might be making loan payments, supporting multiple languages, or transfer funds between accounts. Diff: 3 Type: ES Page Reference: 69 Topic: Q5 Skill: APPLIED

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1) Before the advent of computers accountants used paper spreadsheets. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 83 Topic: Q1 Skill: RECALL 2) Today the term spreadsheet almost always refers to electronic models. a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 83 Topic: Q1 Skill: RECALL 3) Cells are identified by their column letters and row numbers. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 83 Topic: Q1 Skill: RECALL 4) Cells can only store numbers. a. True b. False Answer: b Diff: 2 Copyright © 2014 Pearson Canada Inc.

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Type: TF Page Reference: 83 Topic: Q1 Skill: RECALL 5) The flexibility of cells is an important factor in making a spreadsheet a powerful tool. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 83 Topic: Q1 Skill: RECALL 6) When you build a formula it must begin with an "=". a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 84 Topic: Q2 Skill: RECALL 7) Text can be used in arithmetic formulas. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 84 Topic: Q2 Skill: RECALL 8) "2B" would be a cell reference. Copyright © 2014 Pearson Canada Inc.

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a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 84 Topic: Q1 Skill: RECALL 9) "/" is the sign used for multiplication. a. True b. False Answer: b Diff: 1 Type: TF Page Reference: 85 Topic: Q2 Skill: RECALL 10) The "Fill" capability in Excel can create more formulas with less work. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 85 Topic: Q2 Skill: RECALL 11) To increase a cells value by 10%, it is best to reference the cell with a value of 10% in the formula. a. True b. False Answer: a Diff: 3 Type: TF Copyright © 2014 Pearson Canada Inc.

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Page Reference: 85 Topic: Q2 Skill: RECALL 12) "C8" is an absolute reference. a. True b. False Answer: b Diff: 2 Type: TF Page Reference: 86 Topic: Q2 Skill: RECALL 13) Formatting cells allows the user to better see the type of data that is in a cell. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 88 Topic: Q3 Skill: RECALL 14) Formatting options are shown on the Home tab ribbon. a. True b. False Answer: a Diff: 2 Type: TF Page Reference: 88 Topic: Q3 Skill: RECALL 15) Excel provides powerful graphing capabilities. Copyright © 2014 Pearson Canada Inc.

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a. True b. False Answer: a Diff: 1 Type: TF Page Reference: 88 Topic: Q4 Skill: RECALL 16) A cell is identified by using a a. column number and a row number. b. column letter and a row number. c. position number. d. column letter and a row letter. e. column number and a row letter. Answer: b Diff: 2 Type: MC Page Reference: 83 Topic: Q1 Skill: RECALL 17) Spreadsheets store information in ________. a. rows b. locations c. cells d. columns e. boxes Answer: c Diff: 1 Type: MC Page Reference: 83 Topic: Q1

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Skill: RECALL 18) Workbooks are made up of multiple pages called ____________. a. text b. arithmetic symbols c. formulas d. numbers e. worksheets Answer: e Diff: 2 Type: MC Page Reference: 83 Topic: Q1 Skill: RECALL 19) The first thing a user should do once they start to work within an Excel file is to a. save the workbook. b. create a new worksheet. c. add text. d. create the model. e. add formulas. Answer: a Diff: 1 Type: MC Page Reference: 84 Topic: Q1 Skill: RECALL 20) To place a graph on your spreadsheet you would use the ________ tab. a. View b. Page Layout c. Home d. Insert Copyright © 2014 Pearson Canada Inc.

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e. Data Answer: d Diff: 2 Type: MC Page Reference: 90 Topic: Q4 Skill: RECALL 21) You can format your worksheet using icons on the ________ tab. a. View b. Insert c. Data d. Home e. Page Layout Answer: d Diff: 2 Type: MC Page Reference: 88 Topic: Q3 Skill: RECALL 22) If you need to sort and filter data you would use tools on the ________ tab. a. Review b. Page Layout c. Insert d. Data e. Home Answer: d Diff: 2 Type: MC Page Reference: 84 Topic: Q1 Skill: RECALL Copyright © 2014 Pearson Canada Inc.

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23) To create complex formulas you would use tools on the ________ tab. a. Home b. Data c. Formula d. Page Layout e. Insert Answer: c Diff: 2 Type: MC Page Reference: 84 Topic: Q1 Skill: RECALL 24) During the "fill" function when you move the mouse over top of the handle on the cell the mouse icon changes to a(n) a. + sign. b. * sign. c. ? sign. d. ! sign. e. - sign. Answer: a Diff: 2 Type: MC Page Reference: 85 Topic: Q2 Skill: RECALL 25) A relative reference keeps the relative positions of the formula and the cells it references ________. a. synchronized b. intact c. absolute d. asynchronous Copyright © 2014 Pearson Canada Inc.

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e. referred to Answer: b Diff: 2 Type: MC Page Reference: 85 Topic: Q2 Skill: RECALL 26) If you want to apply the same "growth rate" to a number of formulas in different cells you would use a(n) a. asynchronous reference. b. absolute reference. c. intact reference. d. relative reference. e. synchronous reference Answer: b Diff: 2 Type: MC Page Reference: 86 Topic: Q2 Skill: RECALL 27) It is ________ best to use references to cell rather than number in your spreadsheet formulas. a. rarely b. never c. sometimes d. always e. usually Answer: d Diff: 2 Type: MC Page Reference: 86

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Topic: Q2 Skill: RECALL 28) To make a reference absolute you place ________ signs in front of the column letter and row number. a. + b. $ c. ! d. % e. ? Answer: b Diff: 2 Type: MC Page Reference: 86 Topic: Q2 Skill: RECALL 29) $B$4 is an example of a(n) a. synchronous reference. b. fixed reference. c. asynchronous reference d. relative reference. e. absolute reference. Answer: e Diff: 1 Type: MC Page Reference: 86 Topic: Q2 Skill: RECALL 30) You can use the ________ key to cycle through the various types of cell addressing. a. F8 b. F10 c. F4 Copyright © 2014 Pearson Canada Inc.

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d. F2 e. F5 Answer: c Diff: 2 Type: MC Page Reference: 87 Topic: Q2 Skill: RECALL 31) "$G4" is an example of a(n) a. absolute column reference. b. intact column reference. c. absolute row reference. d. relative column reference. e. intact row reference. Answer: a Diff: 2 Type: MC Page Reference: 87 Topic: Q2 Skill: RECALL 32) "G$4" is an example of a(n) a. absolute column reference. b. relative row reference. c. absolute row reference. d. intact column reference. e. intact row reference. Answer: c Diff: 2 Type: MC Page Reference: 87 Topic: Q2 Copyright © 2014 Pearson Canada Inc.

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Skill: RECALL 33) Spreadsheets were a ________ factor in the early adoption of personal computers. a. small b. nonc. minimal d. major e. minor Answer: d Diff: 1 Type: MC Page Reference: 83 Topic: Q1 Skill: RECALL 34) The ________ key allows you to edit a cell's content. a. F4 b. F2 c. F5 d. F1 e. F3 Answer: b Diff: 2 Type: MC Page Reference: 84 Topic: Q2 Skill: RECALL 35) When there are two formulas to choose from to type into a cell, choose the formula that is ________. a. easier to enter b. more correct c. longer d. flexible Copyright © 2014 Pearson Canada Inc.

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e. shorter Answer: d Diff: 3 Type: MC Page Reference: 85 Topic: Q2 Skill: RECALL 36) Another way of creating an absolute cell address is to use a(n) ______. a. absolute name b. range name c. cell reference d. range reference e. cell location Answer: b Diff: 2 Type: MC Page Reference: 87 Topic: Q2 Skill: RECALL 37) Paper spreadsheets were used prior to the advent of computers. Diff: 1 Type: FIB Page Reference: 83 Topic: Q1 Skill: RECALL 38) The term spreadsheet usually refers to electronic models, today. Diff: 1 Type: FIB Page Reference: 83 Topic: Q1 Skill: RECALL 39) Cells are identified by their column letters and row numbers. Diff: 2 Type: FIB Copyright © 2014 Pearson Canada Inc.

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Page Reference: 83 Topic: Q1 Skill: RECALL 40) A formula always begins with a(n) equals sign. Diff: 2 Type: FIB Page Reference: 84 Topic: Q2 Skill: RECALL 41) "B2" would be a cell reference. Diff: 2 Type: FIB Page Reference: 83 Topic: Q1 Skill: RECALL 42) A(n) * or asterisk is used for multiplication in formulas. Diff: 2 Type: FIB Page Reference: 85 Topic: Q2 Skill: RECALL 43) "$F$5" is a(n) absolute reference. Diff: 2 Type: FIB Page Reference: 86 Topic: Q2 Skill: RECALL 44) The formatting options are show on the Home tab ribbon. Diff: 2 Type: FIB Page Reference: 88 Topic: Q3 Skill: RECALL 45) The fill capability of Excel allows the users to create more formulas with less work. Diff: 2 Type: FIB Page Reference: 86 Topic: Q2 Skill: RECALL

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46) In Excel, users can build column, line, pie, bar, and area graphs. Diff: 2 Type: FIB Page Reference: 90 Topic: Q4 Skill: RECALL 47) Describe how you would enter a new formula that adds the value of two cells into and Excel spreadsheet. Answer: You would first click on the cell that the formula is required in and then enter the = sign to start the formula. Form this point you could type in the formula using the cell names and the + sign for an addition formula or click on the first cell then enter the + sign and click on the second cell to enter the formula. An example would be "=A1+B1" entered in cell "C1". Diff: 2 Type: ES Page Reference: 84 Topic: Q2 Skill: APPLIED 48) Why are absolute references important in Excel? Answer: An absolute reference gives the user the ability to fix a cell reference to a specific cell in the spreadsheet in a formula and this allows for easier copying of the formula when a set of formulas need to reference the same value in the spreadsheet such as a tax rate or growth percentage. Diff: 3 Type: ES Page Reference: 86 Topic: Q2 Skill: RECALL 49) How does a user rename a worksheet tab? Answer: If the user double clicks the worksheet tab the name becomes editable and the user can type the new name and hit enter. Copyright © 2014 Pearson Canada Inc.

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Diff: 2 Type: ES Page Reference: 84 Topic: Q1 Skill: APPLIED

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