Chapter 1
Information Systems in Global
Business Today
True-False Questions
1. Internet advertising is growing at a rate of more than 30 percent a year.
Answer: True Difficulty: Hard Reference: p. 6
2. A business model describes how a company produces, delivers, and sells a product or
service to create wealth.
Answer: True Difficulty: Easy Reference: p. 11
3. Information technology (IT) consists of all the hardware that a firm needs to use in
order to achieve its business objectives, whereas information systems consist of all the
software and business processes needed.
Answer: False Difficulty: Medium Reference: pp. 13–14
4. Computers are only part of an information system.
Answer: True Difficulty: Easy Reference: p. 16
,5. Information systems literacy describes the behavioral approach to information
systems, whereas computer literacy describes the technical approach.
Answer: False Difficulty: Easy Reference: p. 16
6. The dimensions of information systems are management, organizations, and
information technology.
Answer: True Difficulty: Easy Reference: p. 16
7. In order to understand how a specific business firm uses information systems, you need
to know something about the hierarchy and culture of the company.
Answer: True Difficulty: Easy Reference: pp. 17–18
8. Developing a new product, fulfilling an order, or hiring a new employee are examples of
business processes.
Answer: True Difficulty: Easy Reference: p. 7
9. Business processes are logically related tasks for accomplishing tasks that have been
formally encoded by an organization.
Answer: False Difficulty: Medium Reference: p. 18
,10. A network requires at least two computers and a shared resource, such as a printer.
Answer: False Difficulty: Medium Reference: p. 19
11.. An IT infrastructure provides the platform on which the firm can build its information
systems.
Answer: True Difficulty: Easy Reference: p. 21
12. (Analysis)
UPS’s use of Web-based tools that allow customers to embed UPS functions such as
tracking and cost calculations into their own Web sites was an information systems
solution used to achieve customer intimacy.
13. A fully digital firm produces only digital goods or services.
Answer: False Difficulty: Easy Reference: p. 7
14. There are four major business functions: Sales and marketing; manufacturing and
production; finance and accounting; and information technology.
Answer: False Difficulty: Easy Reference: p. 17
15. In the behavioral approach to information systems, technology is ignored in favor of
understanding the psychological, social, and economic impacts of systems.
Answer: False Difficulty: Medium Reference: p. 27
, 16. Government and private sector standards are examples of complementary social assets
required to optimize returns from IT investments.
Answer: True Difficulty: Medium Reference: p. 25
17. Knowledge workers assist with paperwork at all levels of the firm.
Answer: False Difficulty: Easy Reference: p. 17
18. A firm that invests in efficient business processes is making an investment in
organizational complementary assets.
Answer: True Difficulty: Medium Reference: p. 25
19. A substantial part of management responsibility is creative work driven by new
knowledge and information.
Answer: True Difficulty: Easy Reference: p. 19
20. Intranets allow firms to work easily with third-party suppliers and vendors.
Answer: False Difficulty: Medium Reference: p. 19
Multiple-Choice Questions
Information Systems in Global
Business Today
True-False Questions
1. Internet advertising is growing at a rate of more than 30 percent a year.
Answer: True Difficulty: Hard Reference: p. 6
2. A business model describes how a company produces, delivers, and sells a product or
service to create wealth.
Answer: True Difficulty: Easy Reference: p. 11
3. Information technology (IT) consists of all the hardware that a firm needs to use in
order to achieve its business objectives, whereas information systems consist of all the
software and business processes needed.
Answer: False Difficulty: Medium Reference: pp. 13–14
4. Computers are only part of an information system.
Answer: True Difficulty: Easy Reference: p. 16
,5. Information systems literacy describes the behavioral approach to information
systems, whereas computer literacy describes the technical approach.
Answer: False Difficulty: Easy Reference: p. 16
6. The dimensions of information systems are management, organizations, and
information technology.
Answer: True Difficulty: Easy Reference: p. 16
7. In order to understand how a specific business firm uses information systems, you need
to know something about the hierarchy and culture of the company.
Answer: True Difficulty: Easy Reference: pp. 17–18
8. Developing a new product, fulfilling an order, or hiring a new employee are examples of
business processes.
Answer: True Difficulty: Easy Reference: p. 7
9. Business processes are logically related tasks for accomplishing tasks that have been
formally encoded by an organization.
Answer: False Difficulty: Medium Reference: p. 18
,10. A network requires at least two computers and a shared resource, such as a printer.
Answer: False Difficulty: Medium Reference: p. 19
11.. An IT infrastructure provides the platform on which the firm can build its information
systems.
Answer: True Difficulty: Easy Reference: p. 21
12. (Analysis)
UPS’s use of Web-based tools that allow customers to embed UPS functions such as
tracking and cost calculations into their own Web sites was an information systems
solution used to achieve customer intimacy.
13. A fully digital firm produces only digital goods or services.
Answer: False Difficulty: Easy Reference: p. 7
14. There are four major business functions: Sales and marketing; manufacturing and
production; finance and accounting; and information technology.
Answer: False Difficulty: Easy Reference: p. 17
15. In the behavioral approach to information systems, technology is ignored in favor of
understanding the psychological, social, and economic impacts of systems.
Answer: False Difficulty: Medium Reference: p. 27
, 16. Government and private sector standards are examples of complementary social assets
required to optimize returns from IT investments.
Answer: True Difficulty: Medium Reference: p. 25
17. Knowledge workers assist with paperwork at all levels of the firm.
Answer: False Difficulty: Easy Reference: p. 17
18. A firm that invests in efficient business processes is making an investment in
organizational complementary assets.
Answer: True Difficulty: Medium Reference: p. 25
19. A substantial part of management responsibility is creative work driven by new
knowledge and information.
Answer: True Difficulty: Easy Reference: p. 19
20. Intranets allow firms to work easily with third-party suppliers and vendors.
Answer: False Difficulty: Medium Reference: p. 19
Multiple-Choice Questions
