Test
Bank
l
,Information Systems Today: Managing in the Digital World, 10e (Valacich)
Chapter 1 Managing in the Digital World
1) Advances in cloud computing (think Gmail, Microsoft 365, or DropBox) allow for accessing
emails, files, notes, and the like from different devices, enhancing portability and mobility in
computing.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
2) An increase in the frequency of international travel, tourism, and immigration is a cultural
change brought about by globalization enabled by information technology.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
3) Globalization is the integration of economies throughout the world, enabled by innovation and
technological progress.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
4) One of the main reasons for a company to outsource its business is to focus on non-core
business activities.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
,5) Countries such as India remain popular for offshore outsourcing because of their rising
salaries.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
6) The network effect refers to the notion that the value of a network is based on the number of
networks being used.
Answer: FALSE
AACSB: Reflective thinking
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
7) Vendors are required by law to respect the privacy of people who make web purchases.
Answer: FALSE
AACSB: Information technology; Ethical understanding and reasoning
Difficulty: Easy
Learning Objective: 1.4: Describe how computer ethics affect the use of information systems
and discuss the ethical concerns associated with information privacy and intellectual property.
Classification: Concept
8) Knowledge is the ability to understand information, form opinions, and make decisions or
predictions based on the information.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
9) An information system is a combination of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute data.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
, 10) The technical area of competency of an IS professional is the easiest to maintain in the
digital world because of the huge popularity of individual technologies.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
11) Transaction processing systems (TPS) are used by a narrow range of organizations only to
process customer transactions more efficiently.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
12) The purpose of a knowledge management system is to create, store, analyze, and manage
spatial data.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
13) Office automation systems such as Microsoft 365 and the OpenOffice Productivity Suite
provide word processing, spreadsheet, and other personal productivity tools, enabling knowledge
workers to accomplish their tasks.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
14) IS personnel with service mentality believe that the customers own the technology and the
information and that the technology and information are there for the customers, not for the
systems personnel.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
Bank
l
,Information Systems Today: Managing in the Digital World, 10e (Valacich)
Chapter 1 Managing in the Digital World
1) Advances in cloud computing (think Gmail, Microsoft 365, or DropBox) allow for accessing
emails, files, notes, and the like from different devices, enhancing portability and mobility in
computing.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
2) An increase in the frequency of international travel, tourism, and immigration is a cultural
change brought about by globalization enabled by information technology.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
3) Globalization is the integration of economies throughout the world, enabled by innovation and
technological progress.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
4) One of the main reasons for a company to outsource its business is to focus on non-core
business activities.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
,5) Countries such as India remain popular for offshore outsourcing because of their rising
salaries.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
6) The network effect refers to the notion that the value of a network is based on the number of
networks being used.
Answer: FALSE
AACSB: Reflective thinking
Difficulty: Easy
Learning Objective: 1.1: Describe the characteristics of the digital world, contemporary societal
issues of the digital world, and how increasing digital density is shaping the digital future.
Classification: Concept
7) Vendors are required by law to respect the privacy of people who make web purchases.
Answer: FALSE
AACSB: Information technology; Ethical understanding and reasoning
Difficulty: Easy
Learning Objective: 1.4: Describe how computer ethics affect the use of information systems
and discuss the ethical concerns associated with information privacy and intellectual property.
Classification: Concept
8) Knowledge is the ability to understand information, form opinions, and make decisions or
predictions based on the information.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
9) An information system is a combination of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute data.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
, 10) The technical area of competency of an IS professional is the easiest to maintain in the
digital world because of the huge popularity of individual technologies.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
11) Transaction processing systems (TPS) are used by a narrow range of organizations only to
process customer transactions more efficiently.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
12) The purpose of a knowledge management system is to create, store, analyze, and manage
spatial data.
Answer: FALSE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
13) Office automation systems such as Microsoft 365 and the OpenOffice Productivity Suite
provide word processing, spreadsheet, and other personal productivity tools, enabling knowledge
workers to accomplish their tasks.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
14) IS personnel with service mentality believe that the customers own the technology and the
information and that the technology and information are there for the customers, not for the
systems personnel.
Answer: TRUE
AACSB: Information technology
Difficulty: Easy
Learning Objective: 1.2: Explain what an information system is, contrasting its data, technology,
people, and organizational components.
Classification: Concept
