Chapter 1: Business Information Systems: An Overview
TRUE/FALSE
1. The terms “data” and “information” mean the same thing.
ANS: F PTS: 1 REF: 9
2. To become data, information is manipulated through tabulation, addition, subtraction, division, or
any other operation that leads to greater understanding of a situation.
ANS: F PTS: 1 REF: 9
3. Every system has a single goal.
ANS: F PTS: 1 REF: 11
4. Increasingly, companies are implementing open information systems that can be linked to other
systems owned by business partners such as suppliers and clients.
ANS: T PTS: 1 REF: 13
5. It is important to remember that computers can only carry out instructions that humans give them.
ANS: T PTS: 1 REF: 14
6. Input is the information an IS produces and displays in the format most useful to an organization.
ANS: F PTS: 1 REF: 17
, 7. The computer processes data through output devices.
ANS: F PTS: 1 REF: 17
8. Transaction processing systems (TPSs) are the most widely used information systems.
ANS: T PTS: 1 REF: 18
9. Many ERP systems are used by service representatives in combination with a telephone.
ANS: F PTS: 1 REF: 18
10. ISs whose purpose is to glean from raw data relationships and trends that might help
organizations compete better are called business intelligence (BI) systems.
ANS: T PTS: 1 REF: 20
11. GISs are often used to manage daily operations as well as for planning and decision making.
ANS: T PTS: 1 REF: 21
12. While accounting systems focus on recording and reporting financial changes and states, the
purpose of marketing systems is to facilitate financial planning and business transactions.
ANS: F PTS: 1 REF: 22
13. Programmers often advance directly to become project leaders.
ANS: F PTS: 1 REF: 26
, 14. In the capacity of project leaders, senior systems analysts are put in charge of several analysts and
programmers.
ANS: T PTS: 1 REF: 26
15. Project leaders seek and allocate resources, such as personnel, hardware, and software, which are
used in the development process.
ANS: T PTS: 1 REF: 26
16. Since access to information often connotes power, the DBA must be astute not only
technologically but politically as well.
ANS: T PTS: 1 REF: 26
17. The rapid spread of the Web, intranets, and extranets has minimized the stature of the
organizational Webmaster.
ANS: F PTS: 1 REF: 29
MULTIPLE CHOICE
1. ____ is the raw material in the production of information.
a. Data c. Managing
b. Decision making d. Programming
ANS: A PTS: 1 REF: 9
, 2. Just as raw materials are processed in manufacturing to create useful end-products, so raw data is
processed in information systems to create useful ____.
a. data c. input
b. information d. programs
ANS: B PTS: 1 REF: 9
3. Simply put, a ____ is an array of components that work together to achieve a common goal, or
multiple goals, by accepting input, processing it, and producing output in an organized manner.
a. plan c. project
b. process d. system
ANS: D PTS: 1 REF: 11
4. ____ records sums owed to the organization and by whom.
a. Accounts payable c. Accounts programmable
b. Accounts receivable d. Accounts writable
ANS: B PTS: 1 REF: 12
5. A(n) ____ interfaces and interacts with other systems.
a. closed system c. initial system
b. final system d. open system
ANS: D PTS: 1 REF: 13
6. Thinking of an organization in terms of its suborganizations or subsystems—called ____—is a
powerful management approach.
a. organization thinking c. systems thinking
TRUE/FALSE
1. The terms “data” and “information” mean the same thing.
ANS: F PTS: 1 REF: 9
2. To become data, information is manipulated through tabulation, addition, subtraction, division, or
any other operation that leads to greater understanding of a situation.
ANS: F PTS: 1 REF: 9
3. Every system has a single goal.
ANS: F PTS: 1 REF: 11
4. Increasingly, companies are implementing open information systems that can be linked to other
systems owned by business partners such as suppliers and clients.
ANS: T PTS: 1 REF: 13
5. It is important to remember that computers can only carry out instructions that humans give them.
ANS: T PTS: 1 REF: 14
6. Input is the information an IS produces and displays in the format most useful to an organization.
ANS: F PTS: 1 REF: 17
, 7. The computer processes data through output devices.
ANS: F PTS: 1 REF: 17
8. Transaction processing systems (TPSs) are the most widely used information systems.
ANS: T PTS: 1 REF: 18
9. Many ERP systems are used by service representatives in combination with a telephone.
ANS: F PTS: 1 REF: 18
10. ISs whose purpose is to glean from raw data relationships and trends that might help
organizations compete better are called business intelligence (BI) systems.
ANS: T PTS: 1 REF: 20
11. GISs are often used to manage daily operations as well as for planning and decision making.
ANS: T PTS: 1 REF: 21
12. While accounting systems focus on recording and reporting financial changes and states, the
purpose of marketing systems is to facilitate financial planning and business transactions.
ANS: F PTS: 1 REF: 22
13. Programmers often advance directly to become project leaders.
ANS: F PTS: 1 REF: 26
, 14. In the capacity of project leaders, senior systems analysts are put in charge of several analysts and
programmers.
ANS: T PTS: 1 REF: 26
15. Project leaders seek and allocate resources, such as personnel, hardware, and software, which are
used in the development process.
ANS: T PTS: 1 REF: 26
16. Since access to information often connotes power, the DBA must be astute not only
technologically but politically as well.
ANS: T PTS: 1 REF: 26
17. The rapid spread of the Web, intranets, and extranets has minimized the stature of the
organizational Webmaster.
ANS: F PTS: 1 REF: 29
MULTIPLE CHOICE
1. ____ is the raw material in the production of information.
a. Data c. Managing
b. Decision making d. Programming
ANS: A PTS: 1 REF: 9
, 2. Just as raw materials are processed in manufacturing to create useful end-products, so raw data is
processed in information systems to create useful ____.
a. data c. input
b. information d. programs
ANS: B PTS: 1 REF: 9
3. Simply put, a ____ is an array of components that work together to achieve a common goal, or
multiple goals, by accepting input, processing it, and producing output in an organized manner.
a. plan c. project
b. process d. system
ANS: D PTS: 1 REF: 11
4. ____ records sums owed to the organization and by whom.
a. Accounts payable c. Accounts programmable
b. Accounts receivable d. Accounts writable
ANS: B PTS: 1 REF: 12
5. A(n) ____ interfaces and interacts with other systems.
a. closed system c. initial system
b. final system d. open system
ANS: D PTS: 1 REF: 13
6. Thinking of an organization in terms of its suborganizations or subsystems—called ____—is a
powerful management approach.
a. organization thinking c. systems thinking
