,Chapter 01:Information Systems in Perspective
TRUE/FALSE
1. Information and data are essentially the same thing.
ANS: F PTS: 1
2. A CBIS is a single set of hardware, software, databases, telecommunications, people, and procedures
configured to collect, manipulate, store, and process data into information.
ANS: T PTS: 1
3. The technology infrastructure is a set of shared IS resources that form the foundation of each
computer-based information system.
ANS: T PTS: 1
4. Teraflops is a measure of computer storage capacity.
ANS: F PTS: 1
5. Application software such as Windows Vista and Windows Seven control basic computer operations
such as start-up and printing.
ANS: F PTS: 1
6. A virtual reality system is an example of one of the most common types of information systems.
ANS: F PTS: 1
7. Mobile commerce is the use of mobile, wireless devices to place orders and conduct business.
ANS: T PTS: 1
8. Electronic business goes beyond e-commerce and e-procurement by using information systems and the
Internet to perform all business-related tasks and functions.
ANS: T PTS: 1
9. A decision support system is an organized collection of people, procedures, software, databases, and
devices that provides routine information to managers and decision makers.
ANS: F PTS: 1
10. MISs typically provide standard reports generated with data and information from a TPS or ERP
system
ANS: T PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
,11. Neural networks give the computer the ability to make suggestions and function like an expert in a
particular field, helping enhance the performance of a novice users.
ANS: F PTS: 1
12. Systems analysis defines the problems and opportunities of the existing system.
ANS: T PTS: 1
13. The primary goal of a for-profit organization is to maximize shareholder value.
ANS: T PTS: 1
14. By adding a significant amount of value to their products and services, organizations ensure that they
will exceed budgets and generate income losses.
ANS: F PTS: 1
15. Organizational culture consists of the major understandings and assumptions for a business or other
organization.
ANS: T PTS: 1
16. Disruptive change often results in new, successful companies and offers consumers the potential of
new products and services at reduced costs and superior performance.
ANS: T PTS: 1
17. The degree to which an organization supports its use is not an important factor that can lead to better
attitudes about an information system.
ANS: F PTS: 1
18. Studies have shown that user satisfaction and technology acceptance are not particularly significant in
healthcare as professionals in this industry are quick to learn and accept new technology.
ANS: F PTS: 1
19. If an organization has a high level of both diffusion and infusion, with computers throughout the
organization, information systems are being used to their full potential.
ANS: F PTS: 1
20. According to Porter’s five-forces model, the more these forces combine in any instance, the less likely
firms will seek competitive advantage and the less dramatic the results of such an advantage will be.
ANS: F PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, 21. When the threat of new market entrants is high, the desire to seek and maintain competitive advantage
to dissuade new entrants is also usually high.
ANS: T PTS: 1
22. Today, companies are shifting from strategic management to performance-based management of their
information systems and carefully consider both strategic advantage and costs.
ANS: T PTS: 1
23. ROI calculations can be complex, including investment returns over multiple years and the impact of
the time value of money.
ANS: T PTS: 1
24. Information systems can help bring new products and services in less time thus reducing time to
market.
ANS: T PTS: 1
25. Because of the difficulty in determining all the costs, total cost of ownership is seldom used to plan for
and maximize the value of IS investments.
ANS: F PTS: 1
26. Non-technical skills such as communications skills and knowledge of the organization are not
important to IS personnel.
ANS: F PTS: 1
27. The systems development organization focuses solely on the development of new information systems
and seldom becomes involved in maintenance and review of information systems.
ANS: F PTS: 1
28. The IS support organization is a multi-faceted group providing user assistance in hardware and
software acquisition and use, data administration, user training and assistance, and software
development.
ANS: F PTS: 1
29. Most IS careers involve working in a project team.
ANS: T PTS: 1
30. In today’s global economy, the creation of a new product or service can be separated into smaller and
smaller subtasks which are then completed by a person or small group located in a single country best
suited to meet the need of the global market.
ANS: F PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
TRUE/FALSE
1. Information and data are essentially the same thing.
ANS: F PTS: 1
2. A CBIS is a single set of hardware, software, databases, telecommunications, people, and procedures
configured to collect, manipulate, store, and process data into information.
ANS: T PTS: 1
3. The technology infrastructure is a set of shared IS resources that form the foundation of each
computer-based information system.
ANS: T PTS: 1
4. Teraflops is a measure of computer storage capacity.
ANS: F PTS: 1
5. Application software such as Windows Vista and Windows Seven control basic computer operations
such as start-up and printing.
ANS: F PTS: 1
6. A virtual reality system is an example of one of the most common types of information systems.
ANS: F PTS: 1
7. Mobile commerce is the use of mobile, wireless devices to place orders and conduct business.
ANS: T PTS: 1
8. Electronic business goes beyond e-commerce and e-procurement by using information systems and the
Internet to perform all business-related tasks and functions.
ANS: T PTS: 1
9. A decision support system is an organized collection of people, procedures, software, databases, and
devices that provides routine information to managers and decision makers.
ANS: F PTS: 1
10. MISs typically provide standard reports generated with data and information from a TPS or ERP
system
ANS: T PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
,11. Neural networks give the computer the ability to make suggestions and function like an expert in a
particular field, helping enhance the performance of a novice users.
ANS: F PTS: 1
12. Systems analysis defines the problems and opportunities of the existing system.
ANS: T PTS: 1
13. The primary goal of a for-profit organization is to maximize shareholder value.
ANS: T PTS: 1
14. By adding a significant amount of value to their products and services, organizations ensure that they
will exceed budgets and generate income losses.
ANS: F PTS: 1
15. Organizational culture consists of the major understandings and assumptions for a business or other
organization.
ANS: T PTS: 1
16. Disruptive change often results in new, successful companies and offers consumers the potential of
new products and services at reduced costs and superior performance.
ANS: T PTS: 1
17. The degree to which an organization supports its use is not an important factor that can lead to better
attitudes about an information system.
ANS: F PTS: 1
18. Studies have shown that user satisfaction and technology acceptance are not particularly significant in
healthcare as professionals in this industry are quick to learn and accept new technology.
ANS: F PTS: 1
19. If an organization has a high level of both diffusion and infusion, with computers throughout the
organization, information systems are being used to their full potential.
ANS: F PTS: 1
20. According to Porter’s five-forces model, the more these forces combine in any instance, the less likely
firms will seek competitive advantage and the less dramatic the results of such an advantage will be.
ANS: F PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, 21. When the threat of new market entrants is high, the desire to seek and maintain competitive advantage
to dissuade new entrants is also usually high.
ANS: T PTS: 1
22. Today, companies are shifting from strategic management to performance-based management of their
information systems and carefully consider both strategic advantage and costs.
ANS: T PTS: 1
23. ROI calculations can be complex, including investment returns over multiple years and the impact of
the time value of money.
ANS: T PTS: 1
24. Information systems can help bring new products and services in less time thus reducing time to
market.
ANS: T PTS: 1
25. Because of the difficulty in determining all the costs, total cost of ownership is seldom used to plan for
and maximize the value of IS investments.
ANS: F PTS: 1
26. Non-technical skills such as communications skills and knowledge of the organization are not
important to IS personnel.
ANS: F PTS: 1
27. The systems development organization focuses solely on the development of new information systems
and seldom becomes involved in maintenance and review of information systems.
ANS: F PTS: 1
28. The IS support organization is a multi-faceted group providing user assistance in hardware and
software acquisition and use, data administration, user training and assistance, and software
development.
ANS: F PTS: 1
29. Most IS careers involve working in a project team.
ANS: T PTS: 1
30. In today’s global economy, the creation of a new product or service can be separated into smaller and
smaller subtasks which are then completed by a person or small group located in a single country best
suited to meet the need of the global market.
ANS: F PTS: 1
© 2012 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
