TEST BANK
BUSINESS INFORMATION SYSTEM
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
Business Information Systems in Your Career
Multiple Choice Questions
1. One of the recent critical challenges facing Major League Baseball was:
a. poor coordination between local and national sales channels.
b. poorly managed sales channels.
c. outdated information systems.
d. decreasing ticket sales.
Answer: Difficulty: Medium Reference: p. 3
2. The six important business objectives of information technology are new products, services,
and business models; customer and supplier intimacy; survival; competitive advantage,
operational excellence, and:
a. improved flexibility.
b. improved decision making.
c. improved business practices.
d. improved efficiency.
Answer: Difficulty: Easy Reference: p. 6
3. Dell Computer’s use of information systems to improve efficiency and implement “mass
customization” techniques to maintain consistent profitability and an industry lead illustrates
which business objective?
a. Improved flexibility
b. Improved business practices
c. Competitive advantage
d. Survival
Answer: Difficulty: Hard Reference: p. 8
4. The use of information systems because of necessity is:
a. survival
b. improved business practices
c. competitive advantage
d. improved flexibility
Answer: Difficulty: Medium Reference: p. 9
5. (Analysis)
Which of the following choices may lead to competitive advantage (1) new products,
services, and business models; (2) charging less for superior products; (3) responding to
customers in real-time?
a. 1 only
b. 1 and 2
c. 2 and 3
d. 1, 2, and 3
Answer: Difficulty: Hard Reference: p. 8
Analysis in terms of compare
6. Verizon’s implementation of a Web-based digital dashboard to provide managers with realtime
information such as customer complaints is an example of:
a. improved flexibility.
b. improved decision-making.
c. improved efficiency.
d. customer and supplier intimacy.
Answer: Difficulty: Medium Reference: p. 8
7. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
information system business objective of:
,a. improved efficiency.
b. customer and supplier intimacy.
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
c. survival.
d. competitive advantage.
Answer: Difficulty: Medium Reference: p. 9
8. What term is used to refer to all of the computer-based information systems used by
organizations and their underlying technologies?
a. Network technology
b. Digital technology
c. Information technology
d. Productivity technology
Answer: Difficulty: Easy Reference: p. 10
9. An information system can be defined technically as a set of interrelated components that
collect (or retrieve), process, store, and distribute information to support:
a. decision making and control in an organization
b. communications and data flow
c. managers analyzing the organization’s raw data
d. the creation of new products and services
Answer: Difficulty: Medium Reference: p. 10
10. The three activities in an information system that produce the information organizations use
to control operations are:
a. information retrieval, research, and analysis.
b. input, output, and feedback.
c. input, processing, and output.
d. data analysis, processing, and feedback
Answer: Difficulty: Easy Reference: p. 11
11. Order data for baseball tickets and bar code data are examples of:
a. raw input.
b. raw output.
c. customer and product data.
d. sales information.
Answer: Difficulty: Easy Reference: p. 11
12. (Analysis)
The average number of tickets sold daily online is an example of:
a. input.
b. raw data.
c. meaningful information.
d. output.
Answer: Difficulty: Easy Reference: p. 11
Analysis in terms of categorize
13. Output:
a. is feedback that has been processed to create meaningful information.
b. is information that is returned to appropriate members of the organization to help them
evaluate the input stage.
c. transfers data to the people who will use it or to the activities for which it will be used.
d. transfers processed information to the people who will use it or to the activities for
which it will be used.
Answer: Difficulty: Easy Reference: p. 11
14. Converting raw data into a more meaningful form is called:
a. capturing.
b. processing.
c. organizing.
d. feedback.
,Answer: Difficulty: Easy Reference: p. 11
15. Electronic computers and related software programs are the technical foundation, the tools
and materials, of:
a. all business procedures.
b. information accumulation.
c. modern information systems.
d. all industrialized countries.
Answer: Difficulty: Medium Reference: p. 11
16. (Analysis)
An example of raw data from a national chain of automobile stores would be:
a. 13 Toyotas sold daily in Kentucky
b. 13 Toyota RAV 4s sold during March 2006 in Louisville, Kentucky
c. 1 Toyota RAV4s sold March 3, 2005 in Louisville, Kentucky
d. All of the above
Answer: Difficulty: Hard Reference: p. 11
Analysis in terms of categorize
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
17. The field that deals with behavioral issues as well as technical issues surrounding the
development, use, and impact of information systems used by managers and employees in
the firm is called:
a. information systems literacy.
b. information systems architecture.
c. management information systems.
d. information technology infrastructure.
Answer: Difficulty: Medium Reference: p. 11
18. In a hierarchical organization, the upper levels consist of:
a. managerial and professional workers.
b. managerial, professional, and technical workers.
c. professional and operational workers.
d. managerial, professional, and operational workers.
Answer: Difficulty: Medium Reference: p. 13
19. A hierarchy:
a. is based on a clear-cut division of labor.
b. is composed primarily of experts trained for different functions.
c. is a pyramid structure or rising authority and responsibility.
d. all of the above.
Answer: Difficulty: Easy Reference: p. 13
20. The fundamental set of assumptions, values, and ways of doing things, that has been
accepted by most of a company’s members is called its:
a. culture.
b. environment.
c. atmosphere.
d. values.
Answer: Difficulty: Easy Reference: p. 13
21. Business processes:
a. include informal work practices.
b. are used primarily for sales and accounting functions.
c. are governed by information technology.
d. are logically related tasks used primarily by operational personnel.
Answer: Difficulty: Easy Reference: p. 13
22. Data management technology consists of:
a. the physical hardware and media used by an organization for storing data.
b. the detailed, preprogrammed instructions that control and coordinate the computer
, hardware components in an information system.
c. the software governing the organization of data on physical storage media.
d. the hardware and software used to transfer data.
Answer: Difficulty: Medium Reference: p. 14
23. The hardware and software used to transfer data in an organization is called:
a. data management technology.
b. networking and data management technology.
c. data and telecommunications technology.
d. networking and telecommunications technology.
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
Answer: Difficulty: Medium Reference: p. 14
24. Networking and telecommunications technologies, along with the people required to run and
manage them, constitute an organization’s:
a. data management environment.
b. networked environment.
c. IT infrastructure.
d. information system.
Answer: Difficulty: Medium Reference: p. 15
25. An intranet uses:
a. mainframe technology.
b. infrared telecommunications systems.
c. the telecommunications capacities of fiber optic networks.
d. internet technology within the boundaries of the firm.
Answer: Difficulty: Medium Reference: p. 22
26. The first step in the four-step model of business problem solving is:
a. agreeing that a problem exists.
b. identifying the problem.
c. outlining the problem’s causes.
d. assigning the problem to a problem solver.
Answer: Difficulty: Easy Reference: p. 18
27. Inadequate data management is an example of the dimension of business
problems.
a. technical
b. organizational
c. people
d. management
Answer: Difficulty: Medium Reference: p. 18
28. Legal and regulatory compliance is an example of which dimension of business problem?
a. Management
b. Organizational
c. People
d. Ethical
Answer: Difficulty: Hard Reference: p. 18
29. Aging hardware and outdated software are examples of which dimension of business
problem?
a. Technical
b. Infrastructure
c. Information Systems
d. Organizational
Answer: Difficulty: Easy Reference: p. 18
30. Poor business processes and unsupportive culture are examples of which dimension of
business problem:
a. management
b. organizational
c. people
BUSINESS INFORMATION SYSTEM
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
Business Information Systems in Your Career
Multiple Choice Questions
1. One of the recent critical challenges facing Major League Baseball was:
a. poor coordination between local and national sales channels.
b. poorly managed sales channels.
c. outdated information systems.
d. decreasing ticket sales.
Answer: Difficulty: Medium Reference: p. 3
2. The six important business objectives of information technology are new products, services,
and business models; customer and supplier intimacy; survival; competitive advantage,
operational excellence, and:
a. improved flexibility.
b. improved decision making.
c. improved business practices.
d. improved efficiency.
Answer: Difficulty: Easy Reference: p. 6
3. Dell Computer’s use of information systems to improve efficiency and implement “mass
customization” techniques to maintain consistent profitability and an industry lead illustrates
which business objective?
a. Improved flexibility
b. Improved business practices
c. Competitive advantage
d. Survival
Answer: Difficulty: Hard Reference: p. 8
4. The use of information systems because of necessity is:
a. survival
b. improved business practices
c. competitive advantage
d. improved flexibility
Answer: Difficulty: Medium Reference: p. 9
5. (Analysis)
Which of the following choices may lead to competitive advantage (1) new products,
services, and business models; (2) charging less for superior products; (3) responding to
customers in real-time?
a. 1 only
b. 1 and 2
c. 2 and 3
d. 1, 2, and 3
Answer: Difficulty: Hard Reference: p. 8
Analysis in terms of compare
6. Verizon’s implementation of a Web-based digital dashboard to provide managers with realtime
information such as customer complaints is an example of:
a. improved flexibility.
b. improved decision-making.
c. improved efficiency.
d. customer and supplier intimacy.
Answer: Difficulty: Medium Reference: p. 8
7. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
information system business objective of:
,a. improved efficiency.
b. customer and supplier intimacy.
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
c. survival.
d. competitive advantage.
Answer: Difficulty: Medium Reference: p. 9
8. What term is used to refer to all of the computer-based information systems used by
organizations and their underlying technologies?
a. Network technology
b. Digital technology
c. Information technology
d. Productivity technology
Answer: Difficulty: Easy Reference: p. 10
9. An information system can be defined technically as a set of interrelated components that
collect (or retrieve), process, store, and distribute information to support:
a. decision making and control in an organization
b. communications and data flow
c. managers analyzing the organization’s raw data
d. the creation of new products and services
Answer: Difficulty: Medium Reference: p. 10
10. The three activities in an information system that produce the information organizations use
to control operations are:
a. information retrieval, research, and analysis.
b. input, output, and feedback.
c. input, processing, and output.
d. data analysis, processing, and feedback
Answer: Difficulty: Easy Reference: p. 11
11. Order data for baseball tickets and bar code data are examples of:
a. raw input.
b. raw output.
c. customer and product data.
d. sales information.
Answer: Difficulty: Easy Reference: p. 11
12. (Analysis)
The average number of tickets sold daily online is an example of:
a. input.
b. raw data.
c. meaningful information.
d. output.
Answer: Difficulty: Easy Reference: p. 11
Analysis in terms of categorize
13. Output:
a. is feedback that has been processed to create meaningful information.
b. is information that is returned to appropriate members of the organization to help them
evaluate the input stage.
c. transfers data to the people who will use it or to the activities for which it will be used.
d. transfers processed information to the people who will use it or to the activities for
which it will be used.
Answer: Difficulty: Easy Reference: p. 11
14. Converting raw data into a more meaningful form is called:
a. capturing.
b. processing.
c. organizing.
d. feedback.
,Answer: Difficulty: Easy Reference: p. 11
15. Electronic computers and related software programs are the technical foundation, the tools
and materials, of:
a. all business procedures.
b. information accumulation.
c. modern information systems.
d. all industrialized countries.
Answer: Difficulty: Medium Reference: p. 11
16. (Analysis)
An example of raw data from a national chain of automobile stores would be:
a. 13 Toyotas sold daily in Kentucky
b. 13 Toyota RAV 4s sold during March 2006 in Louisville, Kentucky
c. 1 Toyota RAV4s sold March 3, 2005 in Louisville, Kentucky
d. All of the above
Answer: Difficulty: Hard Reference: p. 11
Analysis in terms of categorize
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
17. The field that deals with behavioral issues as well as technical issues surrounding the
development, use, and impact of information systems used by managers and employees in
the firm is called:
a. information systems literacy.
b. information systems architecture.
c. management information systems.
d. information technology infrastructure.
Answer: Difficulty: Medium Reference: p. 11
18. In a hierarchical organization, the upper levels consist of:
a. managerial and professional workers.
b. managerial, professional, and technical workers.
c. professional and operational workers.
d. managerial, professional, and operational workers.
Answer: Difficulty: Medium Reference: p. 13
19. A hierarchy:
a. is based on a clear-cut division of labor.
b. is composed primarily of experts trained for different functions.
c. is a pyramid structure or rising authority and responsibility.
d. all of the above.
Answer: Difficulty: Easy Reference: p. 13
20. The fundamental set of assumptions, values, and ways of doing things, that has been
accepted by most of a company’s members is called its:
a. culture.
b. environment.
c. atmosphere.
d. values.
Answer: Difficulty: Easy Reference: p. 13
21. Business processes:
a. include informal work practices.
b. are used primarily for sales and accounting functions.
c. are governed by information technology.
d. are logically related tasks used primarily by operational personnel.
Answer: Difficulty: Easy Reference: p. 13
22. Data management technology consists of:
a. the physical hardware and media used by an organization for storing data.
b. the detailed, preprogrammed instructions that control and coordinate the computer
, hardware components in an information system.
c. the software governing the organization of data on physical storage media.
d. the hardware and software used to transfer data.
Answer: Difficulty: Medium Reference: p. 14
23. The hardware and software used to transfer data in an organization is called:
a. data management technology.
b. networking and data management technology.
c. data and telecommunications technology.
d. networking and telecommunications technology.
questions) and are asked to analyze the legal issues involved. These require students to apply specific legal principles and statutes to the facts presented in the scenario.Multiple
Answer: Difficulty: Medium Reference: p. 14
24. Networking and telecommunications technologies, along with the people required to run and
manage them, constitute an organization’s:
a. data management environment.
b. networked environment.
c. IT infrastructure.
d. information system.
Answer: Difficulty: Medium Reference: p. 15
25. An intranet uses:
a. mainframe technology.
b. infrared telecommunications systems.
c. the telecommunications capacities of fiber optic networks.
d. internet technology within the boundaries of the firm.
Answer: Difficulty: Medium Reference: p. 22
26. The first step in the four-step model of business problem solving is:
a. agreeing that a problem exists.
b. identifying the problem.
c. outlining the problem’s causes.
d. assigning the problem to a problem solver.
Answer: Difficulty: Easy Reference: p. 18
27. Inadequate data management is an example of the dimension of business
problems.
a. technical
b. organizational
c. people
d. management
Answer: Difficulty: Medium Reference: p. 18
28. Legal and regulatory compliance is an example of which dimension of business problem?
a. Management
b. Organizational
c. People
d. Ethical
Answer: Difficulty: Hard Reference: p. 18
29. Aging hardware and outdated software are examples of which dimension of business
problem?
a. Technical
b. Infrastructure
c. Information Systems
d. Organizational
Answer: Difficulty: Easy Reference: p. 18
30. Poor business processes and unsupportive culture are examples of which dimension of
business problem:
a. management
b. organizational
c. people
