SFU BUS 237 Introduction to Business Technology
Management Midterm 1 exam for 2026 prep Study
Notes| Key Concepts most tested questions and
answers & Chapter Summaries Simon Fraser
University
Chapter 1
1. information system consists of
1) hardware
2) software
3) data
4) procedures
5) people
2. definition of management information system
1) development of use of information
2) help organizations achieve their goals and objectives
, 3. differences between information system and information technology IT
• Information system (IS) is a system of hardware, software, data, procedures, and people that
produces information
• Information technology (IT) represents raw technology components of IS
• IS includes people in the equation
• Including people in the system impacts how you design and implement systems
• Successful business people take advantage of crucial differences between IT and IS to improve their
systems
4. What is Moore’s Law findings and conclusions
Moore’s law noted that the density of circuits on an integrated chip was doubling
approximately every 2 years or so.
The number of transistors per square inch on an intergrade chip doubles every 18 month to
24 months.
Price/performance fallen
5. What is network effects
• A network effect is the positive effect described in economics and business that an
additional user of a good or service has on the value of that product to others.
• When a network effect is present, the value that is received from using certain
technologies increases significantly as the number of users increases.
• Once established, network effects can lock-in users and make it harder for them to
switch technologies
Ex. Fax mechine
• Social network
6 How do business professional use IS
E-mail
Accessing web pages
Using word processors and spreadsheets
Management Midterm 1 exam for 2026 prep Study
Notes| Key Concepts most tested questions and
answers & Chapter Summaries Simon Fraser
University
Chapter 1
1. information system consists of
1) hardware
2) software
3) data
4) procedures
5) people
2. definition of management information system
1) development of use of information
2) help organizations achieve their goals and objectives
, 3. differences between information system and information technology IT
• Information system (IS) is a system of hardware, software, data, procedures, and people that
produces information
• Information technology (IT) represents raw technology components of IS
• IS includes people in the equation
• Including people in the system impacts how you design and implement systems
• Successful business people take advantage of crucial differences between IT and IS to improve their
systems
4. What is Moore’s Law findings and conclusions
Moore’s law noted that the density of circuits on an integrated chip was doubling
approximately every 2 years or so.
The number of transistors per square inch on an intergrade chip doubles every 18 month to
24 months.
Price/performance fallen
5. What is network effects
• A network effect is the positive effect described in economics and business that an
additional user of a good or service has on the value of that product to others.
• When a network effect is present, the value that is received from using certain
technologies increases significantly as the number of users increases.
• Once established, network effects can lock-in users and make it harder for them to
switch technologies
Ex. Fax mechine
• Social network
6 How do business professional use IS
Accessing web pages
Using word processors and spreadsheets
