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MIS Essentials (Kroenke)

Chapter 2: Business Processes, Information, and Information Systems

Multiple Choice

1) Which of the following is NOT part of the network that comprises business processes?

A) Systems

B) Activities

C) Facilities

D) Resources

Answer: A

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 2

2) Business processes are ______.

A) resources

B) inventory management

C) systems

D) functions

Answer: C

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 2

3) ______transform resources and information of one type into another type.

A) Business processes

B) Business systems

C) Information

D) Activities

Answer: A

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 3

4) Which of the following is not an example of a resource?

A) Suppliers

B) Checks

C) Databases

D) Cash

Answer: C

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 3

5) Structures that are used within the business process are called ______.

A) facilities

B) resources

C) information

D) information systems

Answer: A

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 3

6) Information is defined as:

A) data

B) data and related activities

C) systems produced from data

D) knowledge derived from data

Answer: D

Diff: 2Page Ref: 25

Topic: data

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

7) Jill drives to work each day. It is 4 miles from her home to her office. Therefore, she drives 8 miles each day that she goes to her office. This is an example of ______.

A) data presented in a meaningful context

B) a difference that makes a difference

C) knowledge derived from data

D) averaged data

Answer: C

Diff: 2Page Ref: 25

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

8) Which of the following is not a characteristic of good information?

A) Freely available

B) Accurately relayed

C) Produced in time

D) Contextually relevant

Answer: A

Diff: 2Page Ref: 26

Topic: data

AACSB: Analytic Skills

Study Question: CH 2 Q 4

9) Good information is:

A) just sufficient

B) derived

C) free

D) all data

Answer: A

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

10) Information requires an appropriate relationship between its cost and ______.

A) value

B) timeliness

C) context

D) sufficiency

Answer: A

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

11) Writings reflect both personal perspectives and ______.

A) beliefs

B) point of view

C) influences

D) goals

Answer: D

Diff: 2Page Ref: 28

Topic: information

AACSB: Analytic Skills

Study Question: Understanding Perspectives and Points of View

12) When work that was formerly done by people has been moved to computers, it is said to be ______.

A) updated

B) automated

C) procedural

D) processed

Answer: B

Diff: 2Page Ref: 30

Topic: business processes supported by information systems

AACSB: Use of IT

Study Question: CH 2 Q 6

13) ______is an example of an actor in the characteristics of the five components.

A) Software

B) Procedures

C) Data

D) Hardware

Answer: D

Diff: 2Page Ref: 28

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

14) Consider the characteristics of the five components. Which of the following serves as a bridge between the human side and the computer side?

A) Hardware

B) Software

C) Data

D) Procedures

Answer: C

Diff: 2Page Ref: 30

Topic: five components

AACSB: Analytic Skills

Study Question: CH 2 Q 6

15) Which of the following is an example of a procedure?

A) Accounts payable

B) Inventory database

C) Issue payment authorization

D) Sales recording program

Answer: C

Diff: 2Page Ref: 31

Topic: five components

AACSB: Reflective Thinking

Study Question: CH 2 Q 6

16) An example of a procedure used by a payment activity in a payment system would be:

A) reconcile receipt document with invoice

B) email

C) accounts payable department

D) ShippingInvoice in database

Answer: A

Diff: 2Page Ref: 32

Topic: information systems

AACSB: Reflective Thinking

Study Question: CH 2 Q 6

17) Which of the following is NOT an example of a manual system?

A) An accounts payable clerk receiving PDF files

B) The accounts payable clerk comparing the PDF files

C) A clerk issuing a check

D) All of the above are manual

Answer: D

Diff: 2Page Ref: 31

Topic: achieving business goals

AACSB: Reflective Thinking

Study Question: CH 2 Q 6

18) ______is the perceived difference between what is and what ought to be.

A) A problem

B) Egocentric thinking

C) Empathetic thinking

D) Cognition

Answer: A

Diff: 2Page Ref: 36

Topic: information

AACSB: Analytic Skills

Study Question: Ethics Guide

19) ______thinking centers on the self.

A) Empathetic

B) Cognitive

C) Problematic

D) Egocentric

Answer: D

Diff: 2Page Ref: 36

Topic: information

AACSB: Analytic Skills

Study Question: Ethics Guide

True or False

1) A business process is also a business system.

Answer: TRUE

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 2

2) Manufacturing processes are examples of business processes, while databases are not.

Answer: TRUE

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 2

3) All data is information.

Answer: FALSE

Diff: 2Page Ref: 24

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 2

4) Resources are transformed from one type to another through information.

Answer: FALSE

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 3

5) Activities are either manual, transformational, or automated.

Answer: FALSE

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 3

6) Inventories are considered an example of a facility.

Answer: TRUE

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 3

7) Knowledge derived from data is information.

Answer: TRUE

Diff: 2Page Ref: 25

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

8) Data that is summed is called information.

Answer: TRUE

Diff: 2Page Ref: 26

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

9) Information is a difference that makes a difference.

Answer: TRUE

Diff: 2Page Ref: 26

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

10) Accuracy is important with information, but not crucial. As long as it is relevant and timely, it may not need to be complete.

Answer: FALSE

Diff: 2Page Ref: 26

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

11) Users should be skeptical of information in a well-formatted report.

Answer: TRUE

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

12) Information needs to be delivered in a timely matter, or it is useless.

Answer: TRUE

Diff: 2Page Ref: 27

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

13) The higher you rise in management, the more information you are given.

Answer: TRUE

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

14) There is a relationship between cost of information and the amount of data.

Answer: FALSE

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

15) Information needs to be relevant in both context and summary.

Answer: FALSE

Diff: 2Page Ref: 27

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

16) Information needs to be just barely sufficient for its purpose.

Answer: TRUE

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

17) It is important to differentiate between data and information.

Answer: TRUE

Diff: 2Page Ref: 27

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 5

18) Authors are able to write unbiased accounts of neutral subject matter.

Answer: FALSE

Diff: 2Page Ref: 28

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 5

19) Only differences that make a difference qualify as information.

Answer: TRUE

Diff: 2Page Ref: 28

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 5

20) Business processes generate information by bringing data items together in a context.

Answer: TRUE

Diff: 2Page Ref: 30

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 5

21) When work that was previously done by humans is moved to machines, it is said to be manual.

Answer: FALSE

Diff: 2Page Ref: 30

Topic: business processes supported by information systems

AACSB: Use of IT

Study Question: CH 2 Q 6

22) Data, people, and procedures make up the human side of the five components.

Answer: FALSE

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

23) Hardware and people are both actors.

Answer: TRUE

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

24) Software and procedure components are both sets of instructions.

Answer: TRUE

Diff: 2Page Ref: 36

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

25) procedures are the bridge between the computer and human sides.

Answer: FALSE

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

26) Manual systems usually require more human training than automated ones.

Answer: TRUE

Diff: 2Page Ref: 31

Topic: information systems

AACSB: Reflective Thinking

Study Question: CH 2 Q 6

27) it is almost impossible to change the way that the computer in your brain has been programmed.

Answer: FALSE

Diff: 2Page Ref: 34

Topic: achieving business goals

AACSB: Communication

Study Question: CH 2 Q 6

28) It is important for the entire development team to have the same understanding of the problem they are trying to resolve.

Answer: TRUE

Diff: 2Page Ref: 36

Topic: achieving business goals

AACSB: Ethical Reasoning

Study Question: CH 2 Q 6

29) An egocentric thinker will consider their view as one of many possible ideas.

Answer: FALSE

Diff: 2Page Ref: 36

Topic: ethical issues

AACSB: Communication

Study Question: CH 2 Q 6

30) Religious leaders feel that empathetic thinking is morally superior.

Answer: TRUE

Diff: 2Page Ref: 36

Topic: ethical issues

AACSB: Ethical Reasoning

Study Question: CH 2 Q 6

31) In business, it is better to think egocentrically.

Answer: FALSE

Diff: 2Page Ref: 36

Topic: ethical issues

AACSB: Ethical Reasoning

Study Question: CH 2 Q 6

32) As a student, you would use empathetic reasoning to minimize an absence to your professor.

Answer: TRUE

Diff: 2Page Ref: 37

Topic: ethical issues

AACSB: Ethical Reasoning

Study Question: CH 2 Q 6

Fill in the Blank

1) Business processes are business ______.

Answer: systems

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 2

2) Information and resources are transformed by ______.

Answer: activities

Diff: 2Page Ref: 24

Topic: business processes

AACSB: Reflective Thinking

Study Question: CH 2 Q 3

3) ______are structures used within the business process.

Answer: Facilities

Diff: 2Page Ref: 25

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 3

4) Activities transform ______and information of one type into other forms.

Answer: resources

Diff: 2Page Ref: 25

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 3

5) A check is an example of a ______.

Answer: resource

Diff: 2Page Ref: 25

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 3

6) Activities use ______to determine how to transform inputs into outputs.

Answer: information

Diff: 2Page Ref: 25

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 3

7) ______is knowledge derived from data.

Answer: Information

Diff: 2Page Ref: 25

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

8) Jill only drives her car when she goes to work each day. It is four miles between her home and office, so Jill drives eight miles each day. Jill works 6 days a week, so she drives 48 miles a week. This is an example of ______data.

Answer: processed

Diff: 2Page Ref: 26

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

9) ______is manipulated to produce information.

Answer: Data

Diff: 2Page Ref: 26

Topic: business processes

AACSB: Use of IT

Study Question: CH 2 Q 3

10) Good ______relies upon properly processed data.

Answer: information

Diff: 2Page Ref: 26

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

11) Good information is produced on a ______basis.

Answer: timely

Diff: 2Page Ref: 26

Topic: information

AACSB: Use of IT

Study Question: CH 2 Q 4

12) ______information is produced in time for its intended use.

Answer: Timely

Diff: 1Page Ref: 26

Topic: information

AACSB: Communication

Study Question: CH 2 Q 4

13) Jack, a top executive, receives 300 emails a day, and gets 12 reports and several publications every day. He works many hours, but never has time to read everything. He ignores many of the reports and deletes a lot of the emails, unread. This is an example of why information should be ______.

Answer: just barely sufficient

Diff: 2Page Ref: 27

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

14) Information should be ______both in terms of context and subject matter.

Answer: relevant

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 12 Q 4

15) An appropriate relationship must exist between the cost of information and its ______.

Answer: value

Diff: 2Page Ref: 27

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 4

16) Everyone talks from the ______of a personal point of view.

Answer: perspective

Diff: 2Page Ref: 28

Topic: information

AACSB: Analytic Skills

Study Question: CH 2 Q 5

17) Everyone speaks and acts from the perspective of a personal point of view, and is, therefore, ______.

Answer: biased

Diff: 2Page Ref: 28

Topic: information

AACSB: Communication

Study Question: Understanding Perspectives and Points of View

18) Business processes generate ______by putting together data into a meaningful context.

Answer: information

Diff: 2Page Ref: 30

Topic: business processes

AACSB: Analytic Skills

Study Question: CH 2 Q 5

19) The instruction set for hardware comes from the ______.

Answer: software

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

20) ______serves as a bridge between the computer and human sides of the five component framework.

Answer: data

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

21) Procedures and people make up the ______of the five component framework.

Answer: human side

Diff: 2Page Ref: 30

Topic: five components

AACSB: Analytic Skills

Study Question: CH 2 Q 6

22) Software and procedures are both a set of ______in the five component framework.

Answer: instructions

Diff: 2Page Ref: 30

Topic: five components

AACSB: Use of IT

Study Question: CH 2 Q 6

23) Computer systems that do not employ humans are said to be ______.

Answer: automated.

Diff: 2Page Ref: 31

Topic: information systems

AACSB: Use of IT

Study Question: CH 12 Q 6

Essay

1) What are the characteristics of good information? Give an example of each in business today.

Answer: As stated in the text, the characteristics of good information are accuracy, timeliness, relevance, and cost effectiveness. Students would be very upset if they were filing for graduation but the records of their course work were inaccurate and showed they still needed more credits to graduate. Data inaccuracies cost businesses billions each year and lead to poor decisions. When Michael Miliken was sentenced to prison for fraudulently selling junk bonds, his firm rushed to auction off a set of data disks containing all his client leads and information. This was because this information was quickly losing its value as each day passed. We could also collect detailed reading about the temperature, composition, etc. on each square meter of the moon's surface, but it would have little relevance for our business and would hardly be cost effective.

Diff: 2Page Ref: 26

Topic: information

AACSB: Reflective Thinking

Study Question: CH 2 Q 4

2) You tell your roommate who is majoring in electrical engineering that an information system is composed of hardware, software, data, procedures, and people. She responds by saying "This is ridiculous, it's just hardware and software!" How would you respond?

Answer: Before you respond at all, first take a moment to consider your roommates perspective. She has focused so much on the technical side of computing applications, that she has a built in bias against "soft" statements that might include people and procedures. Then remind her that in order for businesses to get the most out of their information systems, they have to consider how to get people to use them effectively. There are many examples of systems that were built but never used because they didn't take the human side into consideration.

Diff: 2Page Ref: 30

Topic: five components

AACSB: Reflective Thinking

Study Question: CH 2 Q 5

3) What is an automated information system? Give two examples of these and discuss the nature of the competitive advantage they provide

Answer: An example of an automated information system is a web site that has customer ordering and payment features. These help to speed up the order process and reduce costs of having a salesperson taking the order. Another example is the automated customer support center. These can reduce costs but if done poorly, can offend customers. Natural language features can make them easier to use.

Diff: 2Page Ref: 31

Topic: business processes supported by information systems

AACSB: Analytic Skills

Study Question: CH 2 Q 6

4) What is the difference between manual and computer-based information systems? Give two examples of each. Does one produce better information than the other?

Answer: There are many possible examples of "manual" information systems. A calendar might be one. You might even suggest that the informal water cooler talk is another type of information system. Of course the whole course is oriented around computer-based IS, but it is good to keep in mind that both types can produce valuable information. One is just more formalized and automated.

Diff: 2Page Ref: 31

Topic: business processes supported by information systems

AACSB: Reflective Thinking

Study Question: CH 2 Q 6

5) How can empathetic thinking help your career in college as well as the workplace?

Answer: The example given in the text is an excellent one. If you ask the professor if there was anything "important" covered in class, it is an insult to his teaching. If, however, you are empathetic to the professor, you will make a much better impression. Empathy is useful also in requesting help from other students, in case you do miss a class. If you are genuinely concerned about the point of view of others, you will be more likely to make friends and associates that will be helpful to you. People will respond with concern and respect for you. The example of the business meeting given in the text is also a good one. If the people involved are completely caught up in their own point of view, the meeting will likely degenerate into a situation where everyone is trying to protect their own territory and no true communication and problem solving will result. If, however, each person attempts to see the point of view and challenges of the other employees, maybe solutions can be reached that no one could find on his/her own.

Diff: 2Page Ref: 40

Topic: information

AACSB: Reflective Thinking

Study Question: Ethics Guide

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