Using MIS, 4e (Kroenke) Chapter 1 The Importance of MIS 1.

1 True/False Questions 1) Because of Moore's Law, the cost of data communications and data storage is essentially zero. Answer: TRUE Page Ref: 4 Difficulty: Easy LO: 1 2) Today, because of Moore's Law, any routine skill can and will be outsourced to the lowest bidder. Answer: TRUE Page Ref: 5 Difficulty: Moderate LO: 1 3) Abstract reasoning is the ability to make and manipulate models. Answer: TRUE Page Ref: 6 Difficulty: Easy LO: 1 4) A person who is good at collaboration will avoid giving critical feedback to others. Answer: FALSE Page Ref: 7 Difficulty: Easy LO: 1 5) The single most important skill for effective collaboration is being nice to team members. Answer: FALSE Page Ref: 7 Difficulty: Easy LO: 1 6) Non-routine cognitive skills like abstract reasoning and collaboration are something we are born withthey cannot be learned. Answer: FALSE Page Ref: 8 Difficulty: Moderate LO: 1

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7) According to the five-component framework of IS, computer hardware, software, data, networks, and procedures are the five components of an information system. Answer: FALSE Page Ref: 8 AACSB: Use of IT Difficulty: Moderate LO: 2 8) The "people" referred to in five-component framework of information systems are always the users of the system. Answer: FALSE Page Ref: 8 AACSB: Use of IT Difficulty: Easy LO: 1 9) The number of components of an information system increases with an increase in the complexity of the IS. Answer: FALSE Page Ref: 8 AACSB: Use of IT Difficulty: Easy LO: 2 10) The five-component framework is common to all information systems, from the smallest to the largest. Answer: TRUE Page Ref: 9 AACSB: Use of IT Difficulty: Easy LO: 2 11) One needs to have hardware and computer programming skills to use an information system. Answer: FALSE Page Ref: 9 AACSB: Use of IT Difficulty: Easy LO: 2 12) Business users of an IS must take an active role in specifying the system's requirements and in helping manage the development of the system. Answer: TRUE Page Ref: 9 AACSB: Use of IT Difficulty: Easy LO: 2
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13) "Because everybody has one" is the best reason for companies to develop an information system. Answer: FALSE Page Ref: 10 AACSB: Use of IT Difficulty: Moderate LO: 2 14) The components of the five-component framework for information systems are symmetrical in their functions. Answer: TRUE Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 15) In the symmetrical model of the five-component framework of an IS, computer hardware and software are the actors. Answer: FALSE Page Ref: 10 AACSB: Use of IT Difficulty: Moderate LO: 3 16) In the symmetrical model of an information system, data acts as a bridge between the computer and the human sides. Answer: TRUE Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 17) As work moves from the human side to the computer side in an IS, one can observe an increasing degree of difficulty of change. Answer: FALSE Page Ref: 10 AACSB: Use of IT Difficulty: Moderate LO: 3 18) Information systems differ in the amount of work that is moved from the human side to the computer side. Answer: TRUE Page Ref: 11 AACSB: Use of IT Difficulty: Moderate LO: 3
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19) When compared to high-tech systems, low-tech systems move more work from the human side to the computer side. Answer: FALSE Page Ref: 11 AACSB: Use of IT Difficulty: Easy LO: 3 20) The software is the most important component of an IS. Answer: FALSE Page Ref: 11 AACSB: Use of IT Difficulty: Moderate LO: 3 21) Substantial cognitive research has shown that although individuals cannot increase their basic IQ, they can dramatically increase the quality of their thinking. Answer: TRUE Page Ref: 11 Difficulty: Easy LO: 3 22) The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system. Answer: FALSE Page Ref: 11 AACSB: Use of IT Difficulty: Moderate LO: 3 23) Of the five components of an IS, changing procedures causes the most organizational disruption. Answer: FALSE Page Ref: 13 AACSB: Use of IT Difficulty: Moderate LO: 3 24) Creating new databases or changing the structure of existing databases is more difficult than obtaining or developing new programs. Answer: TRUE Page Ref: 13 AACSB: Use of IT Difficulty: Moderate LO: 3

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25) Of the five components of an IS, hardware is the easiest to change. Answer: TRUE Page Ref: 13 AACSB: Use of IT Difficulty: Easy LO: 3 26) Data is the knowledge derived from information. Answer: FALSE Page Ref: 13 Difficulty: Easy LO: 4 27) Information is processed data. Answer: TRUE Page Ref: 13 Difficulty: Easy LO: 4 28) When data is presented within a meaningful context, it becomes information. Answer: TRUE Page Ref: 13 Difficulty: Easy LO: 4 29) One person's data is another person's information. Answer: TRUE Page Ref: 16 Difficulty: Moderate LO: 4 30) Information is always subjective. Answer: TRUE Page Ref: 16 Difficulty: Easy LO: 4 31) Information is always understood in a context, and that context varies from one user to another. Answer: TRUE Page Ref: 16 Difficulty: Easy LO: 4

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32) All information is equal; it is neither good nor bad. Answer: FALSE Page Ref: 16 Difficulty: Easy LO: 5 33) Information needs to be sufficient for the purpose for which it is generated, but just barely so. Answer: TRUE Page Ref: 17 Difficulty: Moderate LO: 5 34) Information should be relevant to the subject, not to the context. Answer: FALSE Page Ref: 17 Difficulty: Easy LO: 5 35) Developing systems that provide information in near real time is always easier and cheaper than producing information a few hours later. Answer: FALSE Page Ref: 17 AACSB: Use of IT Difficulty: Easy LO: 5 36) As a user, when you participate in the development of an IS, timeliness will be part of the requirements you will ask for. Answer: TRUE Page Ref: 17 AACSB: Use of IT Difficulty: Easy LO: 5 37) A good information system is one that provides the user with information over and above what is required, to account for all possibilities. Answer: FALSE Page Ref: 17 AACSB: Use of IT Difficulty: Moderate LO: 5

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38) Barely sufficient information is a handicap in decision-making as today's business decisions require analysis of large amounts of data. Answer: FALSE Page Ref: 17 Difficulty: Moderate LO: 5 39) Information systems should not be subject to the financial analyses to which other assets are subjected. Answer: FALSE Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 5 40) Information is worth its cost when an appropriate relationship exists between the cost of information and its value. Answer: TRUE Page Ref: 18 Difficulty: Easy LO: 5 41) Information technology and information systems are synonymous. Answer: FALSE Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6 42) Information technology is the assembly of hardware, software, data, procedures, and people that produce information. Answer: FALSE Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6 43) Information technology refers to the products, methods, inventions, and standards that are used for the purpose of producing information. Answer: TRUE Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6

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44) You can buy IT, but you cannot buy IS. Answer: TRUE Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6 45) It is likely that, in the future, most computers will not look like a traditional desktop or laptop. Answer: TRUE Page Ref: 19 AACSB: Use of IT Difficulty: Easy LO: 7 46) Computers are increasingly being incorporated into everyday products. Answer: TRUE Page Ref: 19 AACSB: Use of IT Difficulty: Easy LO: 7 47) A strong password must contain no more than seven characteristics. Answer: FALSE Page Ref: 22 AACSB: Use of IT Difficulty: Easy LO: 2 48) A strong password must contain your user name, real name, or company name. Answer: FALSE Page Ref: 22 AACSB: Use of IT Difficulty: Easy LO: 2 49) "Laissez-faire" would be a strong password because it is a foreign word. Answer: FALSE Page Ref: 22 AACSB: Use of IT Difficulty: Easy LO: 2

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50) If you need someone's password, you should ask them to enter their password on your keyboard as you look away. Answer: TRUE Page Ref: 23 Difficulty: Easy LO: 2 1.2 Multiple Choice Questions 1) Moore's Law states that the number of transistors per square inch on an integrated chip doubles every ________ months. A) six B) twelve C) eighteen D) fourteen Answer: C Page Ref: 4 Difficulty: Easy LO: 1 2) Which of the following skills has become routine and liable to be outsourced to the lowest bidder? A) abstract reasoning B) collaboration C) computer programming D) systems thinking Answer: C Page Ref: 5 AACSB: Analytic skills Difficulty: Easy LO: 1 3) Which of the following skills can be classified as a nonroutine cognitive skill? A) computer programming B) tax accounting C) marketing D) systems thinking Answer: D Page Ref: 6 Difficulty: Easy LO: 1

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4) ________ is the ability to make and manipulate models. A) Abstract reasoning B) Structural logic C) Systems thinking D) Experimentation Answer: A Page Ref: 6 Difficulty: Easy LO: 1 5) ________ refers to the ability to model system components and show how the component inputs and outputs relate to one another. A) Abstract reasoning B) Systems thinking C) Dynamic correlation D) Operational logic Answer: B Page Ref: 7 Difficulty: Easy LO: 1 6) Marjorie recently created a viable and innovative process to streamline the work flow in her department. She developed an accurate model of the new process that clearly indicated how the process would apply to and improve the current practices in the department. However, when presenting her idea to her superiors, Marjorie refused to consider others' suggestions and perspectives and got defensive when people asked her questions. Which of the following cognitive skills does Marjorie need to improve upon? A) systems thinking B) experimentation C) abstraction D) collaboration Answer: D Page Ref: 7 AACSB: Analytic skills Difficulty: Moderate LO: 1 7) ________ is the activity of two or more people working together to achieve a common goal, result, or work product. A) Abstract reasoning B) Systems thinking C) Experimentation D) Collaboration Answer: D Page Ref: 7 Difficulty: Easy LO: 1
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8) Which of the following statements about collaboration is true? A) Effective collaboration is predominantly about being nice. B) Collaboration aims to connect the inputs and outputs among system components. C) The single most important skill for effective collaboration is to give and receive critical feedback. D) The ability to collaborate is innate and cannot be learned. Answer: C Page Ref: 7 Difficulty: Easy LO: 1 9) ________ involves making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with available resources. A) Abstract reasoning B) Collaboration C) Systems thinking D) Experimentation Answer: D Page Ref: 7 Difficulty: Easy LO: 1 10) Management information systems (MIS) is best defined as ________. A) the design and development of software applications and computer hardware B) the development and use of information systems that help businesses achieve their goals and objectives C) the study and the science of the theoretical foundations of information and computation and their implementation and application in computer systems D) the development and use of information systems to study the theoretical foundations of the various aspects of management as a discipline Answer: B Page Ref: 8 AACSB: Use of IT Difficulty: Moderate LO: 2

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11) Which of the following accurately describes the five-component framework of information systems? A) computer hardware, software, data, people, and purpose B) computer hardware, software, data, procedures, and people C) computer hardware, software, purpose, data, and procedures D) computer hardware, software, communication networks, data, and procedures Answer: B Page Ref: 8 AACSB: Use of IT Difficulty: Moderate LO: 2 12) Which of the following is an example of computer hardware? A) a computer monitor B) data in a USB drive C) a spreadsheet D) a user manual Answer: A Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2 13) An operating system like Windows or Linux is an example of the ________ component of an information system. A) software B) hardware C) data D) procedure Answer: A Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2 14) A security protocol for logging in to a computer is an example of the ________ component of an information system. A) software B) hardware C) data D) procedure Answer: D Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2
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15) The names and phone numbers of customers are examples of the ________ component of a customer relationship management information system. A) software B) data C) procedure D) people Answer: B Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2 16) Word 2007 and Adobe photoshop, which provide a set of instructions for the computer, are examples of the ________ component of an information system. A) hardware B) procedure C) database D) software Answer: D Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2 17) The storage disk on your computer is an example of the ________ component of the information system. A) hardware B) software C) procedure D) database Answer: A Page Ref: 8 AACSB: Analytic skills Difficulty: Easy LO: 2 18) Which of the following statements is true about information systems? A) Simple, low-tech information systems have fewer components. B) The number of components in an IS increases with the complexity of the information systems. C) Hardware and software programmers make up the component of "people" in an IS. D) An information system is an assembly of computers, programs, data, procedures, and people. Answer: D Page Ref: 9 AACSB: Use of IT Difficulty: Easy LO: 2
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19) Which of the following is a correct picture of the development and use of information systems? A) Even nontechnical employees must know how to build information systems. B) The responsibility of specifying the needs to be met by an IS rests entirely with IT professionals. C) Business users must not attempt to influence the system's development process. D) A business user of an IS must take an active role in the system's development. Answer: D Page Ref: 9 AACSB: Use of IT Difficulty: Moderate LO: 2 20) Which of the following components in the five-component model of IS is considered an actor? A) software B) hardware C) data D) procedures Answer: B Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 21) Which of the following components in the five-component model of IS is considered an actor? A) software B) people C) data D) procedures Answer: B Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3

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22) According to the five-component model for IS, the ________ function(s) as the instructions for the hardware in an information system. A) software B) users C) database D) procedures Answer: A Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 23) According to the five-component model for IS, the ________ function(s) as the instructions for the people involved in an IS. A) software B) data C) hardware D) procedures Answer: D Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 24) Which of the following components constitute the human side of IS? A) data and procedures B) software and people C) people and procedures D) hardware, people, and data Answer: C Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3 25) The ________ functions as a bridge between the human side of the information system components and the computer side. A) software B) hardware C) data D) procedure Answer: C Page Ref: 10 AACSB: Use of IT Difficulty: Easy LO: 3
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26) Which of the following components of an information system is the most important? A) software B) people C) data D) hardware Answer: B Page Ref: 11 AACSB: Use of IT Difficulty: Easy LO: 3 27) As CEO of a large organization, you are in the process of collecting and analyzing critical information for a strategic business decision that could influence the profits of your firm in a big way. Which of the following components of your IS would be most important in ensuring that you make the right decision? A) the hardware capability of the IS to handle huge amounts of data at required speeds B) software programs and algorithms that can produce error-free results C) your thinking process and ability to interpret information D) procedures that will impact the generation of the information Answer: C Page Ref: 11 AACSB: Analytic skills Difficulty: Moderate LO: 3 28) How do hi-tech and low-tech information systems differ? A) Low-tech information systems result in a greater degree of automation than do high-tech systems. B) As opposed to high-tech information systems, in low-tech systems, computers provide more services to users. C) Low-tech information systems are more effective than high-tech systems in reducing the work load of humans. D) Low-tech information systems move a relatively small amount of work from people to computers. Answer: D Page Ref: 11 AACSB: Use of IT Difficulty: Easy LO: 3

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29) Which of the following is an example of a low-tech information system? A) a customer support system that keeps track of product issues B) a file of email addresses and an email program C) an inventory tracking system that produces reports every 24 hours D) a decision support system that analyzes multiple variables Answer: B Page Ref: 11 AACSB: Analytic skills Difficulty: Moderate LO: 3 30) Which of the following components of an IS is the easiest to change and causes the least amount of organizational disruption? A) hardware B) software C) data D) procedures Answer: A Page Ref: 13 AACSB: Use of IT Difficulty: Easy LO: 3 31) Drummer Inc. is a sports equipment provider with a chain of outlets across three states. As part of their expansion strategy, Drummer Inc. decides to enter six more states while also revising its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization? A) collecting demographic data from the new markets B) developing new CRM software for the existing and new outlets C) planning promotions and lateral moves and hiring new employees D) buying and installing new computers in the new outlets Answer: D Page Ref: 13 AACSB: Analytic skills Difficulty: Hard LO: 3

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32) Which of the following would be the most disruptive to an organization while implementing an information system? A) installing new hardware components B) creating new databases C) developing new programs D) changing reporting relationships Answer: D Page Ref: 13 AACSB: Use of IT, Analytic skills Difficulty: Moderate LO: 3 33) It is generally more difficult to make changes to the ________ of an information system than to the databases itself. A) software B) hardware C) programs D) procedures Answer: D Page Ref: 13 AACSB: Use of IT Difficulty: Moderate LO: 3 34) Information can be defined as ________. A) unprocessed data B) unbiased, non contextual data C) knowledge derived from data D) recorded facts or figures Answer: C Page Ref: 13 Difficulty: Easy LO: 4 35) Data is defined as ________. A) information presented in a meaningful context B) unbiased information C) the knowledge derived from information D) recorded facts or figures Answer: D Page Ref: 13 Difficulty: Easy LO: 4

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36) A ticket from L.A. to Denver costs $212. In a decision-making scenario, this would be an example of ________. A) data B) information C) an inference D) an interpretation Answer: A Page Ref: 13 AACSB: Analytic skills Difficulty: Easy LO: 4 37) Glazer & Hicks is a firm based in NJ that offers retail software solutions to independent retailers. The firm recently bagged a contract from a major national retail chain to develop and implement a proprietary software program that would track inventory, restocking, and supplier information. Which of the following actions is likely to be most problematic when implementing the new IS? A) upgradation of the computer systems used by the retail chain B) changing the structure of existing databases that reflect supplier and customer data C) hiring additional technical staff to manage the new system D) introducing new procedures to generate reports and reorder inventory Answer: C Page Ref: 13 AACSB: Analytic skills Difficulty: Hard LO: 3 38) Which of the following is the best example of information, and is not mere data? A) a list of property prices in a neighborhood B) the return on investment of an advertising campaign C) the price of company stock on a given day D) the number of students in various grades in a school Answer: B Page Ref: 13 AACSB: Analytic skills Difficulty: Moderate LO: 4 39) Which of the following statements is NOT true about information? A) The context in which information is understood varies from user to user. B) One person's information can be another person's data. C) Information is defined as being non-contextual. D) Information is always subjective. Answer: C Page Ref: 13 Difficulty: Moderate LO: 4
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40) Which of the following instances illustrates the concept "One person's information is another person's data?" A) two researchers reaching vastly differing conclusions from the same figures B) two students comparing their GPAs C) two coworkers discussing NASCAR records D) a teller reporting his cash balance of the day to the manager Answer: D Page Ref: 13, 16 AACSB: Analytic skills Difficulty: Hard LO: 4 41) Which of the following statements is true of information? A) An understanding of information can be achieved independent of contexts. B) Information is always subjective. C) Unlike data, information is free of individual bias and manipulation. D) Users of the same IS assess information in essentially the same context. Answer: B Page Ref: 16 Difficulty: Easy LO: 5 42) As CEO of a large organization, you had asked the human resources manager to send you information about the rate of employee turnover in your organization for the last quarter. The manager sends you the salary details of new hires during the same period. The information is likely to be of little use to you because it is ________. A) just sufficient B) not timely C) irrelevant D) too expensive Answer: C Page Ref: 17 AACSB: Analytic skills Difficulty: Moderate LO: 5

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43) As the CEO of a large company, you ask the sales manager to report the sales figures of the previous quarter. The manager sends you details of each invoice drawn up in the previous quarter. This information is not good because it is ________. A) inaccurate B) not timely C) more than what is required D) too narrow in scope Answer: C Page Ref: 17 AACSB: Analytic skills Difficulty: Moderate LO: 5 44) Good information is ________. A) inexpensive B) relevant C) widely available D) voluminous Answer: B Page Ref: 17 AACSB: Analytic skills Difficulty: Easy LO: 5 45) Which of the following is one of the characteristics of good information? A) abundance B) ease of availability C) accuracy D) low cost Answer: C Page Ref: 17 Difficulty: Easy LO: 5 46) As production manager at a bottling plant for a cola manufacturer, you receive reports containing figures for raw materials from last year, but stated as the current year's. This information would qualify as bad information because it is ________. A) late B) voluminous C) inaccurate D) too narrow in scope Answer: C Page Ref: 17 AACSB: Analytic skills Difficulty: Moderate LO: 5
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47) You are looking to buy a home within the price-range of $500,000 to $700,000, but your real-estate agent keeps sending you fliers for homes that cost $10,00,000 or more. This information is likely to be useless to you because it is ________. A) late B) too narrow in scope C) irrelevant D) not reliable Answer: C Page Ref: 17 AACSB: Analytic skills Difficulty: Moderate LO: 5 48) Which of the following statements is true of good information? A) Good information should go well beyond the scope of the purpose for which it is generated. B) Information should be relevant to the subject and not to the context. C) Good information should be based on correct and complete data. D) Information systems should not be subject to the same financial analyses to which other assets are subjected. Answer: C Page Ref: 17-18 Difficulty: Moderate LO: 5 49) Which of the following is NOT a characteristic of good information? A) interchangeability B) relevance C) timeliness D) accuracy Answer: A Page Ref: 17-18 Difficulty: Easy LO: 5 50) Which of the following is true about the quality of information? A) Information needs to be sufficient for the purpose for which it is generated, but just barely so. B) All information is good; there is no such thing as bad information. C) Information needs to be relevant to the subject, not the context. D) The more information you receive, the less you can afford to ignore. Answer: A Page Ref: 17-18 Difficulty: Moderate LO: 5

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51) Identify one way in which IT differs from IS. A) You can buy IT, but not IS. B) People are an important component of IT, but not of IS. C) IS is but one part of IT. D) IT is not used for producing information, IS is. Answer: A Page Ref: 18 AACSB: Use of IT, Analytic skills Difficulty: Hard LO: 6 52) Which of the following statements supports the principle that "One can buy IT, but not IS?" A) Information technology drives the development of new information systems. B) Advances in IT will continue to take the industry to the next stages and beyond. C) People are an important component of IT, but not of IS. D) For any new IS, one will always have to train and manage the users. Answer: D Page Ref: 18 AACSB: Use of IT, Analytic skills Difficulty: Hard LO: 6 53) Which of the following is a component of an IS but not of IT? A) hardware B) data C) people D) software Answer: C Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6 54) Which of the following statements regarding IT and IS is true? A) Information technology (IT) refers to the products, methods, inventions, and standards that are used for the purpose of producing information. B) IT is an umbrella term that covers IS and the products, methods, inventions, and standards used to produce information. C) IT and IS are synonymous with each other and can be used interchangeably. D) IT is an assembly of hardware, software, data, procedures, and people that produces information. Answer: A Page Ref: 18 AACSB: Use of IT Difficulty: Easy LO: 6
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55) A strong password should contain ________. A) less than seven characters B) your user name or real name C) a complete dictionary word in a foreign language D) upper case letters, lower case letters, and special characters Answer: D Page Ref: 22 AACSB: Use of IT Difficulty: Easy LO: 2 56) A strong password should contain ________. A) at least seven characters B) your user name or real name C) a complete dictionary word in a foreign language D) a word of personal significance Answer: A Page Ref: 22 AACSB: Use of IT Difficulty: Easy LO: 2 57) Which of the following is an appropriate technique for creating memorable, strong passwords? A) base them on the first letters of the words in a phrase B) use your favorite foreign words C) use a collection of randomly selected letters, numbers, and special characters D) base them on little known personal details such as a favorite object or place Answer: A Page Ref: 22 AACSB: Use of IT, Analytic skills Difficulty: Moderate LO: 2 58) Vera Lewis, an employee of Akme Corp. since three years, is in the process of developing a login password. Which of the following is a password that is strong and easy for Vera to remember? A) Qb7^f<<$hL B) Vera@Akme123 C) VeraLewis@Akme D) VLhw@Af3y Answer: D Page Ref: 22 AACSB: Use of IT, Analytic skills Difficulty: Moderate LO: 2
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59) Which of the following is a guideline for maintaining good password ettiquette? A) Write down your password in an accessible location. B) Never ask someone else for their password. C) Give your password to your coworkers if you anticipate that they may need it in your absence. D) Do not share your password with anyone except the IT staff in your organization. Answer: B Page Ref: 22 Difficulty: Moderate LO: 2 60) As the IT manager of your organization, you require a coworker's password to access some information. Keeping with password ettiquette, how would you go about getting his password? A) You ask the coworker to type in the password where required, while you look away. B) You explain the urgency of the situation and ask the coworker to send you the password through email, which you delete immediately afterwards. C) You submit a formal letter to your coworker's manager, explaining the situation and requesting that the password be sent to you. D) You try out various combinations to see if you can guess your coworker's password. Answer: A Page Ref: 22-23 AACSB: Analytic skills Difficulty: Moderate LO: 2 1.3 Essay Questions 1) State Moore's Law. What is the implication of Moore's Law for managers? Answer: According to Moore's Law, "the number of transistors per square inch on an integrated chip doubles every 18 months." Because of Moore's Law, the ratio of price of to performance of computers has fallen drastically. Therefore, it is important for managers to realize that, because of Moore's Law, the cost of data communications and data storage is essentially zero. The current business scenario is flooded with vast amounts of data that requires the effective assistance of information technology. Many business ventures have sprung around this effect of Moore's Law. Future business professionals need to be able to assess, evaluate, and apply emerging information technology to business. Page Ref: 4-5 AACSB: Analytic skills Difficulty: Moderate LO: 1

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2) Explain the four nonroutine cognitive skills key to career success today. Answer: The four nonroutine skills identified as critical for organizations in the current scenario are: Abstract reasoning - the ability to make and manipulate models. Systems thinking - to model the components of the system and to connect the inputs and outputs among those components into a sensible whole, one that explains the phenomenon observed. Collaboration - develop ideas and plans with others; provide and receive critical feedback. Experimentation - create and test promising new alternatives, consistent with available resources. Page Ref: 6-7 Difficulty: Easy LO: 1 3) Briefly describe system, information system, and management information system. Answer: A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. Management information systems is defined as the development and use of information systems that help businesses achieve their goals and objectives. Page Ref: 8 Difficulty: Easy LO: 2 4) List and briefly explain the five-components model of an information system with an example. Answer: According to the five-component model, the five components are: computer hardware, software, data, procedures, and people. These five components are present in every information system, from the simplest to the most complex. For example, when you use a computer to write a class report, you are using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in your report), procedures (the methods you use to start the program, enter your report, print it, and save and back up your file), and people (you). Page Ref: 8-9 AACSB: Use of IT, Analytic skills Difficulty: Moderate LO: 2 5) Why do businesses develop information systems? Also, point out some of the wrong reasons businesses sometimes cite for developing information systems. Answer: Information systems exist to help people who work in a business to achieve the goals and objectives of that business. Information systems are not created for the sheer joy of exploring technology. They are not created so that the company can be "modern" or so that the company can show it has a social networking presence on the Web. They are not created because the information systems department thinks it needs to be created, because the company is "falling behind the technology curve," or for the sole reason that "every other business has one." Page Ref: 9 AACSB: Use of IT Difficulty: Moderate LO: 2
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6) Which is the most important component of an information system? Why? Answer: When the five components of an information system are considered, it includes the user (people). The user's mind and his/her thinking are not merely a component of the information systems they use, they are the most important component. This is so because, even if the user has the perfect information system, if they do not know what to do with the information that it produces, they are wasting both their time and money. The quality of one's thinking is a large part of the quality of the information system. Page Ref: 11 AACSB: Use of IT Difficulty: Moderate LO: 3 7) Describe the ordering of the five components of an information system in terms of their ease of change and organizational disruption. Answer: The five components of the information systems framework are: computer hardware, software, data, procedures, and people. The five components are shown in order of ease of change and the amount of organizational disruption. It is usually a simple matter to order new hardware and install it. Obtaining or developing new programs is more difficult. Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are both very difficult and very disruptive to the organization. Page Ref: 13 AACSB: Use of IT Difficulty: Moderate LO: 3 8) Explain the difference between data and information. Provide an example. Answer: Data is recorded facts or figures. Information is knowledge derived from data; data presented in a meaningful context; data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. Thus, the facts that employee James Smith earns $17.50 per hour and that Mary Jones earns $25.00 per hour are data. The statement that the average hourly wage of all the aerobics instructors is $22.37 per hour is information. Page Ref: 13 AACSB: Analytic skills Difficulty: Moderate LO: 4

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9) What are the five characteristics of good information? Answer: Accurate - Good information is based on correct and complete data, and it has been processed correctly as expected. Timely - Good information is produced in time for its intended use. Relevant - Good information is relevant both to the context and to the subject. Just sufficient - Good information is sufficient for the purpose for which it is generated, but ust barely so. Worth its cost - For good information to be worth its cost, there must be an appropriate relationship between the cost of information and its value. Page Ref: 16-18 Difficulty: Moderate LO: 5 10) How is information technology different from information systems? Answer: Information technology and information systems are two closely related terms, but they are different. Information technology (IT) refers to the products, methods, inventions, and standards that are used for the purpose of producing information. IT pertains to the hardware, software, and data components. On the other hand, an information system (IS) is an assembly of hardware, software, data, procedures, and people that produces information. Information technology drives the development of new information systems. A crucial difference between the two terms is that, while you can buy IT, you cannot buy an IS. That is, you can buy or lease hardware, you can license programs and databases, and you can even obtain predesigned procedures. Ultimately, however, it is your people who execute those procedures to employ that new IT. For any new system, you will always have training tasks and costs, you will always have the need to overcome employees' resistance to change, and you will always need to manage the employees as they utilize the new system. Page Ref: 18 AACSB: Use of IT Difficulty: Moderate LO: 6

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