Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
Chapter 1
Setting the Stage: Technology and the Modern Enterprise
Section 1.1
True/False Questions
1. Apple’s growing business of consumer services bring in so much revenue that if they were a
separate division from Apple, they would be ranked as a Fortune 100 firm.
True; Easy
2. While Amazon and UPS efforts to offer drone-to-doorstep delivery for the masses remain a work
in progress, Silicon Valley’s Zipline is leading the charge for the humanitarian community.
True; Moderate
3. Ireland’s data centers use 18 percent of the country’s electricity’s needs.
True; Moderate
4. The rise of open source software has lowered computing costs for startup and blue chip
companies worldwide.
True; Easy
5. Data analytics, business intelligence, and so-called machine learning are driving discovery and
innovation.
True; Easy
6. Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash,
creating mobile money use that, on a population percentage basis, exceeds any nation in the West.
True; Moderate
7. Social media does not play a key role in organizing uprisings.
False; Easy
8. The United States and China are both currently investigating several tech companies for influence
and non-competitive practices.
False; Easy
9. The market cap of a publicly traded firm is its total value. Market cap can be calculated by
multiplying the number of a firm’s shares by its current share price.
True; Easy
10. A server farm is a massive network of computer servers running software to coordinate their
collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud
efforts, as well as many large-scale Internet services.
True; Easy
11. It took telephones seventy-five years to get to 50 million users, but it took ChatGPT 3.5 just four
years to gain double those users.
False; Easy
12. Meta, Facebook's parent, has an astonishing 3.6 billion monthly users—a reach no media firm or
government had ever remotely approached.
True; Easy
2
© 2026
,Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
Multiple Choice Questions
13. A recent report in Forbes suggests that _____ percent of firms are failing at digital transformation.
a. 89
b. 72
c. 40
d. 23
e. 12
b; Easy
14. Select the accurate statement(s).
1) The world’s most valuable retailer, China’s Alibaba, also carries the world’s largest product
inventory.
2) Uber, the world’s largest taxi service, owns no vehicles for hire.
3) Airbnb, the world’s largest accommodation provider, owns several major hotel corporations.
4) Facebook does not create media content.
a. All statements are accurate.
b. Statements 2 and 4 are accurate.
c. Statement 4 is accurate.
d. Statement 1 is accurate.
e. Statements 1 and 3 are accurate.
b; Hard
15. Some of the radical changes brought about by new technologies include
a. the stagnation of advertising.
b. the proliferation of telecommunications into the hands of a few.
c. an increase in computing costs owing to the growth of licensed software.
d. a decrease in the standards of corporate ethics.
e. the creation of an unprecedented set of security and espionage threats.
e; Moderate
16. Tech firms are among the best performing firms in the world. Which firm is the most valuable
firm in the United States and has also posted some of the most profitable quarters of any business
in any industry?
a. Amazon
b. Apple
c. Google
d. IBM
e. Salesforce
b; Easy
17. Zuckerberg got so excited by the Metaverse that he renamed his company _____. A bet that
resulted in over $70 billion in losses and which led to a subsequent firing of over 100 staffers
involved with the project.
a. Facebook 2.0
b. ChatGPT
c. NFT
d. Meta
e. Instagram
d; Easy
18. The global pandemic caused which industries to boom?
a. telehealth
3
© 2026
,Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
b. work-from-home
c. online grocery
d. contactless payment
e. All of the above are true.
e; Easy
Short Answer Questions
19. How are entrepreneurs in sub-Saharan Africa leveraging technologies to serve local needs? Give
examples.
Ghanaian firm Esoko leverages mobile phones to empower the agrarian poor with farming info
and commodity pricing, raising incomes and lowering the chance of exploitation by unscrupulous
middlemen. The firm Sproxil uses text message verification to save lives by fighting drug
counterfeiting in developing nations around the world. Kenya’s M-Pesa and Somaliland’s Zaad
use text messages to replace cash, bringing the safety and speed of electronic payment and funds
transfer to the unbanked and leveraging mobile money at rates that far outstrip any nation in the
West.
Moderate
20. How has social media emerged as a catalyst for global social change?
With Facebook and Twitter playing key organizing roles in uprisings worldwide, technology can
capture injustice, broadcast it to the world, disseminate ideas, and rally the far-reaching.
Moderate
21. Uber and Airbnb are larger than any taxi firm or hotel chain on the planet. In what important way
does the infrastructure used by these firms to deliver services differ from more traditional rivals?
Uber, the world’s largest “taxi service,” owns no vehicles for hire. Airbnb, the world’s largest
accommodations provider, doesn’t own a single hotel or rental property. (Don’t accept “mobile”
or “uses smartphones” as answers since traditional rivals also heavily leverage technology,
including smartphone apps.)
Moderate
22. How have microprocessors and server farms allowed for AI usage to grow in technology
companies?
Microprocessors allow for massive server farms to handle an increase in AI applications, while
server farms allow for faster and quicker applications that are backed by AI.
Moderate
Fill in the Blanks
23. _____ and _____ are turning sophisticated, high-powered computing into a utility available to
even the smallest businesses and nonprofits.
Cloud computing, software as a service; Moderate
24. _____ has emerged as a catalyst for global change, with Youtube, Facebook, Instagram, Twitter,
and TikTok playing key organizing roles in uprisings worldwide.
Social media; Easy
25. It took _____ just two months to gain 100 million users.
ChatGPT; Easy
26. Over the span of a decade, Apple was able to transition from washed up to industry leader by
creating _____ instead of _____.
platforms, products; Easy
4
© 2026
, Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
27. The rise of _____ has rewritten the revenue models for the computing industry and lowered
computing costs for startups to blue chips worldwide.
open source; Easy
28. _____ refers to the portion of a firm focused on innovation, typically pioneering advances that
will eventually arrive as new products and technologies.
Research and development (R&D); Easy
Section 1.2
True/False Questions
29. Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require
founders to give up large ownership stakes to a large number of contributors before they can raise
funds to bring products to market.
False; Easy
30. The founding technology entrepreneurs behind many leading firms, such as Apple, Microsoft, and
Facebook, got their start in their early 30s, leveraging university study and knowledge from their
first post-college jobs to create disruptive new firms.
False; Easy
31. Palmer Luckey, the founder of Oculus, was able to get early funding for his product via
Kickstarter, exceeding the fundraising goal set by his campaign without giving up a share of
equity from this campaign.
True; Easy
32. Facebook was founded by Sergey Brin.
False; Easy
33. Linus Torvalds created the Linux operating system.
True; Easy
34. David Karp, founder of the website Tumblr, sold the website to Google for $1.1 billion.
False; Moderate
35. Everyone benefits from an accelerator.
False; Moderate
36. You should always ask people to sign non-disclosure agreements.
False; Moderate
Multiple Choice Questions
37. One contributor to the ease with which young entrepreneurs can have success is low-cost
distribution to massive markets worldwide. This is enabled by:
a. legacy systems
b. big data and business analytics
c. Esoko and M-Pesa
d. app stores
e. Sproxil
d; Easy
5
© 2026
Excel) v11.0
Chapter 1
Setting the Stage: Technology and the Modern Enterprise
Section 1.1
True/False Questions
1. Apple’s growing business of consumer services bring in so much revenue that if they were a
separate division from Apple, they would be ranked as a Fortune 100 firm.
True; Easy
2. While Amazon and UPS efforts to offer drone-to-doorstep delivery for the masses remain a work
in progress, Silicon Valley’s Zipline is leading the charge for the humanitarian community.
True; Moderate
3. Ireland’s data centers use 18 percent of the country’s electricity’s needs.
True; Moderate
4. The rise of open source software has lowered computing costs for startup and blue chip
companies worldwide.
True; Easy
5. Data analytics, business intelligence, and so-called machine learning are driving discovery and
innovation.
True; Easy
6. Technology has proliferated in Kenya and Somaliland, with text messages used to replace cash,
creating mobile money use that, on a population percentage basis, exceeds any nation in the West.
True; Moderate
7. Social media does not play a key role in organizing uprisings.
False; Easy
8. The United States and China are both currently investigating several tech companies for influence
and non-competitive practices.
False; Easy
9. The market cap of a publicly traded firm is its total value. Market cap can be calculated by
multiplying the number of a firm’s shares by its current share price.
True; Easy
10. A server farm is a massive network of computer servers running software to coordinate their
collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud
efforts, as well as many large-scale Internet services.
True; Easy
11. It took telephones seventy-five years to get to 50 million users, but it took ChatGPT 3.5 just four
years to gain double those users.
False; Easy
12. Meta, Facebook's parent, has an astonishing 3.6 billion monthly users—a reach no media firm or
government had ever remotely approached.
True; Easy
2
© 2026
,Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
Multiple Choice Questions
13. A recent report in Forbes suggests that _____ percent of firms are failing at digital transformation.
a. 89
b. 72
c. 40
d. 23
e. 12
b; Easy
14. Select the accurate statement(s).
1) The world’s most valuable retailer, China’s Alibaba, also carries the world’s largest product
inventory.
2) Uber, the world’s largest taxi service, owns no vehicles for hire.
3) Airbnb, the world’s largest accommodation provider, owns several major hotel corporations.
4) Facebook does not create media content.
a. All statements are accurate.
b. Statements 2 and 4 are accurate.
c. Statement 4 is accurate.
d. Statement 1 is accurate.
e. Statements 1 and 3 are accurate.
b; Hard
15. Some of the radical changes brought about by new technologies include
a. the stagnation of advertising.
b. the proliferation of telecommunications into the hands of a few.
c. an increase in computing costs owing to the growth of licensed software.
d. a decrease in the standards of corporate ethics.
e. the creation of an unprecedented set of security and espionage threats.
e; Moderate
16. Tech firms are among the best performing firms in the world. Which firm is the most valuable
firm in the United States and has also posted some of the most profitable quarters of any business
in any industry?
a. Amazon
b. Apple
c. Google
d. IBM
e. Salesforce
b; Easy
17. Zuckerberg got so excited by the Metaverse that he renamed his company _____. A bet that
resulted in over $70 billion in losses and which led to a subsequent firing of over 100 staffers
involved with the project.
a. Facebook 2.0
b. ChatGPT
c. NFT
d. Meta
e. Instagram
d; Easy
18. The global pandemic caused which industries to boom?
a. telehealth
3
© 2026
,Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
b. work-from-home
c. online grocery
d. contactless payment
e. All of the above are true.
e; Easy
Short Answer Questions
19. How are entrepreneurs in sub-Saharan Africa leveraging technologies to serve local needs? Give
examples.
Ghanaian firm Esoko leverages mobile phones to empower the agrarian poor with farming info
and commodity pricing, raising incomes and lowering the chance of exploitation by unscrupulous
middlemen. The firm Sproxil uses text message verification to save lives by fighting drug
counterfeiting in developing nations around the world. Kenya’s M-Pesa and Somaliland’s Zaad
use text messages to replace cash, bringing the safety and speed of electronic payment and funds
transfer to the unbanked and leveraging mobile money at rates that far outstrip any nation in the
West.
Moderate
20. How has social media emerged as a catalyst for global social change?
With Facebook and Twitter playing key organizing roles in uprisings worldwide, technology can
capture injustice, broadcast it to the world, disseminate ideas, and rally the far-reaching.
Moderate
21. Uber and Airbnb are larger than any taxi firm or hotel chain on the planet. In what important way
does the infrastructure used by these firms to deliver services differ from more traditional rivals?
Uber, the world’s largest “taxi service,” owns no vehicles for hire. Airbnb, the world’s largest
accommodations provider, doesn’t own a single hotel or rental property. (Don’t accept “mobile”
or “uses smartphones” as answers since traditional rivals also heavily leverage technology,
including smartphone apps.)
Moderate
22. How have microprocessors and server farms allowed for AI usage to grow in technology
companies?
Microprocessors allow for massive server farms to handle an increase in AI applications, while
server farms allow for faster and quicker applications that are backed by AI.
Moderate
Fill in the Blanks
23. _____ and _____ are turning sophisticated, high-powered computing into a utility available to
even the smallest businesses and nonprofits.
Cloud computing, software as a service; Moderate
24. _____ has emerged as a catalyst for global change, with Youtube, Facebook, Instagram, Twitter,
and TikTok playing key organizing roles in uprisings worldwide.
Social media; Easy
25. It took _____ just two months to gain 100 million users.
ChatGPT; Easy
26. Over the span of a decade, Apple was able to transition from washed up to industry leader by
creating _____ instead of _____.
platforms, products; Easy
4
© 2026
, Gallaugher's Information Systems: A Manager's Guide to Harnessing Technology (with SmartGrader for
Excel) v11.0
27. The rise of _____ has rewritten the revenue models for the computing industry and lowered
computing costs for startups to blue chips worldwide.
open source; Easy
28. _____ refers to the portion of a firm focused on innovation, typically pioneering advances that
will eventually arrive as new products and technologies.
Research and development (R&D); Easy
Section 1.2
True/False Questions
29. Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require
founders to give up large ownership stakes to a large number of contributors before they can raise
funds to bring products to market.
False; Easy
30. The founding technology entrepreneurs behind many leading firms, such as Apple, Microsoft, and
Facebook, got their start in their early 30s, leveraging university study and knowledge from their
first post-college jobs to create disruptive new firms.
False; Easy
31. Palmer Luckey, the founder of Oculus, was able to get early funding for his product via
Kickstarter, exceeding the fundraising goal set by his campaign without giving up a share of
equity from this campaign.
True; Easy
32. Facebook was founded by Sergey Brin.
False; Easy
33. Linus Torvalds created the Linux operating system.
True; Easy
34. David Karp, founder of the website Tumblr, sold the website to Google for $1.1 billion.
False; Moderate
35. Everyone benefits from an accelerator.
False; Moderate
36. You should always ask people to sign non-disclosure agreements.
False; Moderate
Multiple Choice Questions
37. One contributor to the ease with which young entrepreneurs can have success is low-cost
distribution to massive markets worldwide. This is enabled by:
a. legacy systems
b. big data and business analytics
c. Esoko and M-Pesa
d. app stores
e. Sproxil
d; Easy
5
© 2026
