ITC761 Exam 1 ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
All of the following statements are true about information technology's impact on business
firms except:
A. it helps reduce internal management costs.
B. it helps firms expand in size.
C. it helps reduce transaction costs.
D. it helps reduce agency costs.
E. it helps firms lower the cost of market participation. - CORRECT ANSWERS✅✅B. it
helps firms expand in size.
Which of the following statements about digital firms is not true?
A. Digital firms have more flexibility to survive in turbulent times.
B. Digital firms offer extraordinary opportunities for flexible global organization and
management.
C. In digital firms, time shifting and space shifting are the norm.
D. Today, most firms are fully digital.
E. Digital firms sense and respond to their environments more rapidly than traditional firms. -
CORRECT ANSWERS✅✅D. Today, most firms are fully digital.
A firm that must invest in new information systems capabilities in order to comply with
federal legislation is investing to achieve which business objective?
A. Creation of new products
B. Survival
C. Operational excellence
D. Customer intimacy
E. Improved decision making - CORRECT ANSWERS✅✅B. Survival
Which of the following is not one of the six strategic business objectives of information
systems?
A. Improved community relations
,B. Competitive advantage
C. New products and services
D. Improved decision making
E. Survival - CORRECT ANSWERS✅✅A. Improved community relations
Which field of study focuses on both a behavioral and technical understanding of information
systems?
A. Computer science
B. Management information systems
C. Operations research
D. Economics
E. Sociology - CORRECT ANSWERS✅✅B. Management information systems
In ________, raw data is systematically acquired and transformed during various stages that
add value to that information.
A. the firm value chain
B. information processing
C. the dissemination process
D. an information value chain
E. the feedback process - CORRECT ANSWERS✅✅D. an information value chain
Thomas Friedman's description of the world as "flat" refers to:
A. the flattening of economic and cultural advantages of developed countries.
B. the increased use of global currencies.
C. the use of the Internet and technology for instantaneous communication.
D. the growth of globalization.
E. the reduction in travel times and the ubiquity of global exchange and travel. - CORRECT
ANSWERS✅✅A. the flattening of economic and cultural advantages of developed
countries.
All of the following are new technology-related trends in MIS except:
,A. big data.
B. cloud computing.
C. co-creation of business value.
D. the mobile digital platform.
E. IoT. - CORRECT ANSWERS✅✅C. co-creation of business value.
The Toxic Substances Control Act requires firms to retain records of employee exposure to
toxic chemicals:
A. for 10 years.
B. for 5 years.
C. for 30 years.
D. for 1 year.
E. forever. - CORRECT ANSWERS✅✅C. for 30 years.
Which of the following best describes the primary reason for implementing a new
information system, from a business perspective?
A. The system is in use by our primary competitors.
B. The system will automate key business processes.
C. The system will create new value for the firm, beyond its costs.
D. The system enables the firm to create new products and services.
E. The system integrates well with the Web. - CORRECT ANSWERS✅✅C. The system
will create new value for the firm, beyond its costs.
Which of the following is a private corporate network extended to authorized users outside
the organization?
A. An extranet
B. FTP
C. The Internet
D. The World Wide Web
E. An intranet - CORRECT ANSWERS✅✅A. An extranet
, Which of the following statements is not true?
A. In 2017, 60 percent of Apple's revenue was generated outside of the United States.
B. Many Fortune 500 U.S. firms derive more than half their revenues from foreign
operations.
C. Most PCs manufactured in China use microprocessor chips manufactured in Korea.
D. Technology companies are particularly dependent on offshore revenue.
E. Eighty percent of the toys sold in the United States are manufactured in China. -
CORRECT ANSWERS✅✅C. Most PCs manufactured in China use microprocessor chips
manufactured in Korea.
How many service jobs move offshore to lower-wage countries in a typical year?
A. 300,000
B. 30,000
C. 3 million
D. 3,000
E. 30 million - CORRECT ANSWERS✅✅A. 300,000
In a hierarchical organization, the upper level consists of:
A. professional employees.
B. knowledge workers.
C. scientists.
D. data workers.
E. senior management. - CORRECT ANSWERS✅✅E. senior management.
How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2017?
A. About $1 billion
B. About $1 trillion
C. About $100 million
D. About $10 trillion
E. About $100 billion - CORRECT ANSWERS✅✅B. About $1 trillion
QUESTIONS AND CORRECT ANSWERS
All of the following statements are true about information technology's impact on business
firms except:
A. it helps reduce internal management costs.
B. it helps firms expand in size.
C. it helps reduce transaction costs.
D. it helps reduce agency costs.
E. it helps firms lower the cost of market participation. - CORRECT ANSWERS✅✅B. it
helps firms expand in size.
Which of the following statements about digital firms is not true?
A. Digital firms have more flexibility to survive in turbulent times.
B. Digital firms offer extraordinary opportunities for flexible global organization and
management.
C. In digital firms, time shifting and space shifting are the norm.
D. Today, most firms are fully digital.
E. Digital firms sense and respond to their environments more rapidly than traditional firms. -
CORRECT ANSWERS✅✅D. Today, most firms are fully digital.
A firm that must invest in new information systems capabilities in order to comply with
federal legislation is investing to achieve which business objective?
A. Creation of new products
B. Survival
C. Operational excellence
D. Customer intimacy
E. Improved decision making - CORRECT ANSWERS✅✅B. Survival
Which of the following is not one of the six strategic business objectives of information
systems?
A. Improved community relations
,B. Competitive advantage
C. New products and services
D. Improved decision making
E. Survival - CORRECT ANSWERS✅✅A. Improved community relations
Which field of study focuses on both a behavioral and technical understanding of information
systems?
A. Computer science
B. Management information systems
C. Operations research
D. Economics
E. Sociology - CORRECT ANSWERS✅✅B. Management information systems
In ________, raw data is systematically acquired and transformed during various stages that
add value to that information.
A. the firm value chain
B. information processing
C. the dissemination process
D. an information value chain
E. the feedback process - CORRECT ANSWERS✅✅D. an information value chain
Thomas Friedman's description of the world as "flat" refers to:
A. the flattening of economic and cultural advantages of developed countries.
B. the increased use of global currencies.
C. the use of the Internet and technology for instantaneous communication.
D. the growth of globalization.
E. the reduction in travel times and the ubiquity of global exchange and travel. - CORRECT
ANSWERS✅✅A. the flattening of economic and cultural advantages of developed
countries.
All of the following are new technology-related trends in MIS except:
,A. big data.
B. cloud computing.
C. co-creation of business value.
D. the mobile digital platform.
E. IoT. - CORRECT ANSWERS✅✅C. co-creation of business value.
The Toxic Substances Control Act requires firms to retain records of employee exposure to
toxic chemicals:
A. for 10 years.
B. for 5 years.
C. for 30 years.
D. for 1 year.
E. forever. - CORRECT ANSWERS✅✅C. for 30 years.
Which of the following best describes the primary reason for implementing a new
information system, from a business perspective?
A. The system is in use by our primary competitors.
B. The system will automate key business processes.
C. The system will create new value for the firm, beyond its costs.
D. The system enables the firm to create new products and services.
E. The system integrates well with the Web. - CORRECT ANSWERS✅✅C. The system
will create new value for the firm, beyond its costs.
Which of the following is a private corporate network extended to authorized users outside
the organization?
A. An extranet
B. FTP
C. The Internet
D. The World Wide Web
E. An intranet - CORRECT ANSWERS✅✅A. An extranet
, Which of the following statements is not true?
A. In 2017, 60 percent of Apple's revenue was generated outside of the United States.
B. Many Fortune 500 U.S. firms derive more than half their revenues from foreign
operations.
C. Most PCs manufactured in China use microprocessor chips manufactured in Korea.
D. Technology companies are particularly dependent on offshore revenue.
E. Eighty percent of the toys sold in the United States are manufactured in China. -
CORRECT ANSWERS✅✅C. Most PCs manufactured in China use microprocessor chips
manufactured in Korea.
How many service jobs move offshore to lower-wage countries in a typical year?
A. 300,000
B. 30,000
C. 3 million
D. 3,000
E. 30 million - CORRECT ANSWERS✅✅A. 300,000
In a hierarchical organization, the upper level consists of:
A. professional employees.
B. knowledge workers.
C. scientists.
D. data workers.
E. senior management. - CORRECT ANSWERS✅✅E. senior management.
How much did American businesses spend on information systems hardware, software, and
telecommunications equipment in 2017?
A. About $1 billion
B. About $1 trillion
C. About $100 million
D. About $10 trillion
E. About $100 billion - CORRECT ANSWERS✅✅B. About $1 trillion
