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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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