1.\x05\x05Chrysler uses a Web-enabled system called Saveway that replaces paper-based processes with digital links to supplier systems.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.3
2.\x05\x05Modern digital firms use the Internet and networking technology to make data flow seamlessly among different parts of the organization; streamline the flow of work; and create electronic links with customers,suppliers,and other organizations.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.4
3.\x05\x05Information technologies and systems are revolutionizing the operation of firms,industries,and markets.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.4
4.\x05\x05In 2005,U.S.firms alone will spend nearly $1.8 billion on IT and telecommunications equipment and software.
Answer:False\x05Difficulty:Hard\x05Reference:\x05 p.4
5.\x05\x05Investment in information technology plays a minimal role in increasing the productivity of firms.
Answer:False\x05Difficulty:Easy\x05Reference:\x05 p.5
6.\x05\x05It has been proven that information technology can give a firm a long-lasting competitive advantage.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.6
7.\x05\x05Nicholas Carr,an editor at Harvard Business Review argues that no firm can use IT to achieve a strategic edge over its competitors any more than it could with electricity,telephones,or other infrastructure.
Answer:True\x05Difficulty:Hard\x05Reference:\x05 p.6
8.\x05\x05The networking and communications revolution is being driven by the growth of the Internet,Internet-based technologies,and new business models and processes that leverage the new technologies.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 pp.7-8
9.\x05\x05Relationships with customers,employees,suppliers,and logistic partners are increasingly becoming paper-based relationships.
Answer:False \x05Difficulty:Easy\x05Reference:\x05 p.9
10.\x05\x05Electronic commerce designates the use of the Internet and digital technology to execute all of the activities of the enterprise.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.9
11.\x05\x05The Internet and the new markets are changing the cost and revenue structure of traditional firms and are hastening the demise of traditional business models.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.9
12.\x05\x05The Internet and related technologies make it possible to conduct business across firm boundaries almost as efficiently and effectively as it is to conduct business within the firm.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.9
13.\x05\x05The traditional business firm is a flat,decentralized,unstructured arrangement of generalists who typically rely on a fixed set of standard operating procedures to deliver a customized product.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.10
14.\x05\x05The success of firms today and in the future no longer depends on their ability to operate globally.
Answer:False\x05Difficulty:Easy\x05Reference:\x05 p.10
15.\x05\x05Globalization has transformed the conduct of business.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.10
16.\x05\x05Knowledge and information work account for 55 percent of the U.S.gross national product and nearly 60 percent of the labor force.
Answer:False\x05Difficulty:Hard\x05Reference:\x05 p.11
17.\x05\x05In knowledge- and information-based economies,the market value of many firms is based largely on tangible assets,such as buildings,machinery tools,and inventory.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.11
18.\x05\x05Major industrial powers are being transformed to knowledge- and information-based service economies and leaving manufacturing to the third-world countries.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.11
19.\x05\x05Information-intense products require a great deal of knowledge and training to produce.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.11
20.\x05\x05Business processes are those procedures within the company that require accounting.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.12
21.\x05\x05By digitally enabling and streamlining their work,digital firms have the potential to achieve unprecedented levels of profitability and competitiveness.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.12
22.\x05\x05Information systems help managers and workers analyze problems,visualize complex subjects,and create new products.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.13
23.\x05\x05In an information system,input,processing,and output produce data.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.15
24.\x05\x05Feedback helps the organization evaluate input.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.15
25.\x05\x05A formal information system can be a manual one.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.16
26.\x05\x05Firms sometimes invest in information systems to cope with government regulations or other environmental demands.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.18
27.\x05\x05Few businesses have an information value chain,in which raw information is systematically acquired and then transformed through various stages that add value to that information.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.19
28.\x05\x05Information systems literacy includes a behavioral as well as a technical approach to studying information systems.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.19
29.\x05\x05The key elements of an organization are its people,structure,business processes,politics,and culture.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.20
30.\x05\x05Secretaries,bookkeepers,and clerks would all be considered knowledge workers.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.21
31.\x05\x05Storage technology includes the physical media for storing data,but not the software governing the organization of data on these physical media.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.22
32.\x05\x05A network requires at least three computers.
Answer:False\x05Difficulty:Easy\x05Reference:\x05 p.22
33.\x05\x05The Internet is an international network of commercial networks.
Answer:False\x05Difficulty:Medium\x05Reference:\x05 p.22
34.\x05\x05Standards are one type of organizational asset for optimizing returns on information technology.
Answer:False\x05Difficulty:Hard\x05Reference:\x05 p.25
35.\x05\x05Managerial complementary assets include elements such as strong senior management support for change and incentive systems that monitor and reward individual innovation.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.25
36.\x05\x05Computer science,management science,and operations research all contribute to the technical approach to information systems.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.26
37.\x05\x05The behavioral approach to information systems focuses on changes in attitudes,management and organizational policy,and behavior.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.26
38.\x05\x05To work properly,an information system must balance technology and human behavior and requirements,even if less-than-optimal technology must be used.
Answer:True\x05Difficulty:Medium\x05Reference:\x05 p.26
39.\x05\x05The declining cost and growth in power of information technology always translates into productivity enhancements and bottom-line profits.
Answer:False\x05Difficulty:Easy\x05Reference:\x05 p.27
40.\x05\x05Security and control will be an ongoing concern for information systems because these problems can never be eliminated.
Answer:True\x05Difficulty:Easy\x05Reference:\x05 p.30
Multiple-Choice Questions
41.\x05\x05Internet culture is:
a.\x05global.
b.\x05regional.
c.\x05domestic.
d.\x05local.
Answer:\x05 a\x05Difficulty:Easy\x05Reference:\x05 p.4
42.\x05\x05What term is used to refer to all of the computer-based information systems used by organizations and their underlying technologies?
a.\x05network technology
b.\x05digital technology
c.\x05information technology
d.\x05productivity technology
Answer:c\x05Difficulty:Easy\x05Reference:\x05 p.4
43.\x05\x05The ultimate end product of the new ways of conducting business electronically is:
a.\x05the extinction of the traditional bureaucracy.
b.\x05more government oversight.
c.\x05a more complicated tax structure.
d.\x05the digital firm.
Answer:\x05 d\x05Difficulty:Easy\x05Reference:\x05 p.4
44.\x05\x05The largest component of capital investment for firms in the United States and many industrialized societies is:
a.\x05inventory.
b.\x05information technology.
c.\x05machinery.
d.\x05buildings.
Answer:\x05