Test Bank for Introduction to Information Systems, 2/E 2nd Edition Patricia Wallace

Introduction to Information Systems, 2e (Wallace)
Chapter 1 Information Systems and People

1) Information systems should meet compliance standards set by governments and other regulatory agencies, which may change from time to time and also vary by country or state.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

2) Commercially produced information systems are inept at handling back-office information needs.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

3) Information systems support data-driven decision making which draws on a large amount of data to reveal important trends and patterns.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how information systems can be used to assist in decision making

4) Business intelligence refers to all the information available to managers from many sources beyond the organization’s own information systems.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how information systems can be used to assist in decision making

5) The development and application of innovative information systems improve the operations of an organization; however, they do not lead to any competitive advantage.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how IS can enhance systems of collaboration and teamwork

6) Binary code for SOS is an example of knowledge.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 2
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)
7) The binary code for SOS is information and the word “HELP!!!” is knowledge.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 2
Difficulty: Easy
Course LO: Describe the components of an information system (IS)

8) A news agency requires an immediate account of the casualties in an airplane accident for a news alert. In this situation, a quick, approximate report would be preferred rather than a detailed, accurate report that requires considerable time to prepare.
Answer: TRUE
AACSB: Information Technology; Analytical Thinking
Chapter LO: 2
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes

9) Timelines add value to information as a means of avoiding bias.
Answer: FALSE
AACSB: Information Technology; Analytical Thinking
Chapter LO: 2
Difficulty: Easy
Course LO: Describe the components of an information system (IS)

10) Orange fiber-optic cables, the coaxial cables used by cable TV companies, and the slender copper telephone wiring common in homes are an important part of the infrastructure of information systems.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 3
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)

11) Organizations implement information systems to support and streamline business processes, but never to eliminate them.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 3
Difficulty: Moderate
Course LO: Describe the components of an information system (IS)

12) E-discovery is one of the methods used to uncover corporate scandals.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 3
Difficulty: Easy
Course LO: Describe different methods of managing IS security

13) Analysts can use software to simulate business processes and conduct “what if” experiments to find innovative approaches that leverage the power of information systems.
Answer: TRUE
AACSB: Information Technology; Analytical Thinking
Chapter LO: 3
Difficulty: Moderate
Course LO: Compare and contrast different methods for developing information systems
14) The study of information systems-how people, technology, processes, and data work together-is referred to as management information systems.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 4
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

15) The psychology of group dynamics invariably shifts positively when team members use online tools to communicate.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 4
Difficulty: Easy
Course LO: Explain how IS can enhance systems of collaboration and teamwork

16) In certain situations, such as fund-raising for an NGO, information systems are not of any use.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 5
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

17) The chief information officer heads the IT department in most organizations.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 5
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

18) Disconnects in communication between IT staff and others in the organization often arise because of the jargon barrier.
Answer: TRUE
AACSB: Information Technology
Chapter LO: 5
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

19) The close integration of information technology and strategy with every aspect of business means that every employee is really an “information officer.”
Answer: TRUE
AACSB: Information Technology
Chapter LO: 5
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes

20) Compared to older information systems, privacy breaches in modern information systems involve lesser risk and affect fewer people.
Answer: FALSE
AACSB: Information Technology
Chapter LO: 6
Difficulty: Easy
Course LO: Discuss the ethical and social issues raised by the use of information systems
21) Which of the following is a function of accounting information systems?
A) procuring goods and services
B) designing service delivery systems
C) developing induction processes for new hires
D) creating business diversification strategies
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

22) Which of the following events led to tighter standards for accounting practices and a demand for more transparency in reporting?
A) the global financial crisis of 2009
B) the decreasing popularity of net-banking
C) the Great Depression
D) the increasing nationalization of private assets
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

23) Which of the following is a function of operations management?
A) building and maintaining customer relationships and supporting all the processes that underlie them
B) improvement of the systems and processes which the organization uses to deliver its goods and services
C) formulating a strategy for business diversification
D) introducing a new product
Answer: B
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes

24) Which of the following statements is true of information systems?
A) Information systems are involved in tracking employee payroll, taxes, benefits, and timesheets.
B) Information systems are inadequate at tracking movable assets, off-site resources, and inventories.
C) Organizations avoid developing their own information systems to handle their back-office information needs.
D) Organizations avoid moving information system functions to service providers or outsourcing them.
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
25) The use of information systems in achieving excellence in operations can result in ________.
A) higher cost savings
B) improved organizational justice
C) increased brand dilution
D) increased employee turnover
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes

26) The use of an information system in a grocery store would improve customer satisfaction by ________.
A) providing self-service checkouts
B) enabling identification of items without barcodes
C) giving inventory information to customers
D) using sophisticated identification checks to avoid theft
Answer: A
AACSB: Information Technology; Analytical Thinking
Chapter LO: 1
Difficulty: Moderate
Course LO: Describe the functions of customer relationship management (CRM) systems

27) The success of web-based shopping hinges on ________.
A) building stronger customer relationships and identifying the unique needs of each customer
B) building a reputation for exclusivity by offering a limited number and smaller variety of goods
C) providing goods at prices that are at par or just a little higher than brick-and-mortar stores
D) reducing security and identification checks and increasing the modes of payment available
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Describe the functions of customer relationship management (CRM) systems

28) How do web-based online self-service applications transform an organization’s relationships with its customers?
A) They reduce customer-service facilities available to a customer, but increase the quality of available facilities.
B) They help educate customers on the business processes of the company.
C) They provide customers with elaborate decision support systems which help customers make choices without technical help.
D) They free customers from time-consuming and routine forms of direct contact.
Answer: D
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes

29) Which of the following statements is true of web-based shopping and online self-service applications?
A) They reduce understanding of customer requirements and motives in the long term.
B) They increase the amount of time spent in face-to-face interactions with the customer.
C) They enforce more rigorous security measures than brick-and-mortar versions.
D) They reduce customer loyalty in the long term.
Answer: B
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Describe the functions of customer relationship management (CRM) systems

30) Decision making that draws on billions of pieces of aggregated information to reveal important trends and patterns is called ________.
A) intuitive decision making
B) uninformed decision making
C) unstructured decision making
D) data-driven decision making
Answer: D
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how information systems can be used to assist in decision making

31) Walking Together, an NGO, uses historical trends to determine in which month the amount given as donations is the highest, and then it sets the dates for its donation drives based on the trends. This is an example of ________.
A) data-driven decision making
B) intuitive decision making
C) customer relationship management
D) business process reengineering
Answer: A
AACSB: Information Technology; Analytical Thinking
Chapter LO: 1
Difficulty: Hard
Course LO: Explain how information systems can be used to assist in decision making

32) ________ refers to the information that managers draw from the company’s own information systems and external sources to make decisions.
A) Business intelligence
B) Entrepreneurship
C) Corporate governance
D) Artificial intelligence
Answer: A
AACSB: Information Technology
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how information systems can be used to assist in decision making
33) Play-e-ball, a company that creates games for gaming consoles, gathers data from the information systems of its partners, suppliers, and distributors. It uses this data along with internal data to develop different games for different consumer demographics, and it targets the most profitable segments. Which of the following is illustrated in this scenario?
A) customer relationship management systems
B) business intelligence
C) inventory management
D) virtual collaboration
Answer: B
AACSB: Information Technology; Analytical Thinking
Chapter LO: 1
Difficulty: Hard
Course LO: Explain how information systems can be used to assist in decision making

34) Which of the following reasons led to the popularity of social networking sites?
A) These sites could be used without the Internet or WiFi connections.
B) These sites only supported asynchronous communication.
C) These sites did not require any security.
D) These sites enabled the sharing of news, photos, videos, and tidbits easily.
Answer: D
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Explain how IS can enhance systems of collaboration and teamwork

35) Which of the following is a concern regarding information systems that support virtual teamwork?
A) the lack of social networking capabilities
B) the restriction of the number of simultaneous users
C) the relative stage of infancy of such systems
D) the inability to use video conferencing
Answer: C
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Explain how IS can enhance systems of collaboration and teamwork

36) Which of the following statements is true of information systems that support collaborative human activities?
A) These information systems do not yet have tools for document management, project updates, issue tracking, and shared calendars.
B) These systems, besides being complex and difficult to implement, offer minimal returns on investment.
C) These systems, being in their early stages, offer a framework for more improvements and features to be included.
D) These systems are equipped with enough sophisticated technology to replace mature and complex systems such as decision support systems.
Answer: C
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Explain how IS can enhance systems of collaboration and teamwork
37) Cadmia University is planning to start an online course called “Cultural diversities.” The university wants to develop an information system to support virtual, collaborative education. Which of the following factors should be taken into account when developing the new system?
A) the way students interact in an actual classroom setting
B) the average time spent online by students
C) the negative impact of social networking sites
D) the religious sentiments of the students
Answer: A
AACSB: Information Technology; Analytical Thinking
Chapter LO: 1
Difficulty: Hard
Course LO: Explain how IS can enhance systems of collaboration and teamwork

38) Anything that gives a firm a lead over its rivals is called ________.
A) economies of scale
B) business growth
C) break-even
D) competitive advantage
Answer: D
AACSB: Analytic Skills
Chapter LO: 1
Difficulty: Easy
Course LO: Explain how IS can be used to gain and sustain competitive advantage

39) Which of the following statements is true of information systems (IS)?
A) Despite the success of social networking, information systems have failed at improving virtual collaboration.
B) The ability to provide companies with competitive advantage makes IS a core feature of a company’s strategic vision.
C) IS, although versatile, is not beneficial for government agencies or voluntary organizations.
D) Information systems are not a fundamental part of a company’s strategic vision.
Answer: B
AACSB: Information Technology
Chapter LO: 1
Difficulty: Moderate
Course LO: Explain how IS can be used to gain and sustain competitive advantage

40) Navi-devices Inc., a manufacturer of portable navigation devices, provides free traffic updates and identifies the nearest parking spaces available with its latest device. It accomplishes this by using GPS coordinates of subscribers and traffic data from radio stations. Which of the following is the most likely impact of this strategy?
A) It will improve the company’s operations management.
B) It will improve their customer relationship management.
C) It will lower their total revenue.
D) It will provide the company with a competitive advantage.
Answer: D
AACSB: Information Technology; Analytical Thinking
Chapter LO: 1
Difficulty: Hard
Course LO: Explain how IS can be used to gain and sustain competitive advantage