Using MIS, 4e (Kroenke)

Chapter 1 The Importance of MIS

1.1 True/False Questions

1) Because of Moore's Law, the cost of data communications and data storage is essentially zero.

Answer: TRUE

Page Ref: 4

Difficulty: Easy

LO: 1

2) Today, because of Moore's Law, any routine skill can and will be outsourced to the lowest bidder.

Answer: TRUE

Page Ref: 5

Difficulty: Moderate

LO: 1

3) Abstract reasoning is the ability to make and manipulate models.

Answer: TRUE

Page Ref: 6

Difficulty: Easy

LO: 1

4) A person who is good at collaboration will avoid giving critical feedback to others.

Answer: FALSE

Page Ref: 7

Difficulty: Easy

LO: 1

5) The single most important skill for effective collaboration is being nice to team members.

Answer: FALSE

Page Ref: 7

Difficulty: Easy

LO: 1

6) Non-routine cognitive skills like abstract reasoning and collaboration are something we are born with—they cannot be learned.

Answer: FALSE

Page Ref: 8

Difficulty: Moderate

LO: 1

7) According to the five-component framework of IS, computer hardware, software, data, networks, and procedures are the five components of an information system.

Answer: FALSE

Page Ref: 8

AACSB: Use of IT

Difficulty: Moderate

LO: 2

8) The "people" referred to in five-component framework of information systems are always the users of the system.

Answer: FALSE

Page Ref: 8

AACSB: Use of IT

Difficulty: Easy

LO: 1

9) The number of components of an information system increases with an increase in the complexity of the IS.

Answer: FALSE

Page Ref: 8

AACSB: Use of IT

Difficulty: Easy

LO: 2

10) The five-component framework is common to all information systems, from the smallest to the largest.

Answer: TRUE

Page Ref: 9

AACSB: Use of IT

Difficulty: Easy

LO: 2

11) One needs to have hardware and computer programming skills to use an information system.

Answer: FALSE

Page Ref: 9

AACSB: Use of IT

Difficulty: Easy

LO: 2

12) Business users of an IS must take an active role in specifying the system's requirements and in helping manage the development of the system.

Answer: TRUE

Page Ref: 9

AACSB: Use of IT

Difficulty: Easy

LO: 2

13) "Because everybody has one" is the best reason for companies to develop an information system.

Answer: FALSE

Page Ref: 10

AACSB: Use of IT

Difficulty: Moderate

LO: 2

14) The components of the five-component framework for information systems are symmetrical in their functions.

Answer: TRUE

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

15) In the symmetrical model of the five-component framework of an IS, computer hardware and software are the actors.

Answer: FALSE

Page Ref: 10

AACSB: Use of IT

Difficulty: Moderate

LO: 3

16) In the symmetrical model of an information system, data acts as a bridge between the computer and the human sides.

Answer: TRUE

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

17) As work moves from the human side to the computer side in an IS, one can observe an increasing degree of difficulty of change.

Answer: FALSE

Page Ref: 10

AACSB: Use of IT

Difficulty: Moderate

LO: 3

18) Information systems differ in the amount of work that is moved from the human side to the computer side.

Answer: TRUE

Page Ref: 11

AACSB: Use of IT

Difficulty: Moderate

LO: 3

19) When compared to high-tech systems, low-tech systems move more work from the human side to the computer side.

Answer: FALSE

Page Ref: 11

AACSB: Use of IT

Difficulty: Easy

LO: 3

20) The software is the most important component of an IS.

Answer: FALSE

Page Ref: 11

AACSB: Use of IT

Difficulty: Moderate

LO: 3

21) Substantial cognitive research has shown that although individuals cannot increase their basic IQ, they can dramatically increase the quality of their thinking.

Answer: TRUE

Page Ref: 11

Difficulty: Easy

LO: 3

22) The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system.

Answer: FALSE

Page Ref: 11

AACSB: Use of IT

Difficulty: Moderate

LO: 3

23) Of the five components of an IS, changing procedures causes the most organizational disruption.

Answer: FALSE

Page Ref: 13

AACSB: Use of IT

Difficulty: Moderate

LO: 3

24) Creating new databases or changing the structure of existing databases is more difficult than obtaining or developing new programs.

Answer: TRUE

Page Ref: 13

AACSB: Use of IT

Difficulty: Moderate

LO: 3

25) Of the five components of an IS, hardware is the easiest to change.

Answer: TRUE

Page Ref: 13

AACSB: Use of IT

Difficulty: Easy

LO: 3

26) Data is the knowledge derived from information.

Answer: FALSE

Page Ref: 13

Difficulty: Easy

LO: 4

27) Information is processed data.

Answer: TRUE

Page Ref: 13

Difficulty: Easy

LO: 4

28) When data is presented within a meaningful context, it becomes information.

Answer: TRUE

Page Ref: 13

Difficulty: Easy

LO: 4

29) One person's data is another person's information.

Answer: TRUE

Page Ref: 16

Difficulty: Moderate

LO: 4

30) Information is always subjective.

Answer: TRUE

Page Ref: 16

Difficulty: Easy

LO: 4

31) Information is always understood in a context, and that context varies from one user to another.

Answer: TRUE

Page Ref: 16

Difficulty: Easy

LO: 4

32) All information is equal; it is neither good nor bad.

Answer: FALSE

Page Ref: 16

Difficulty: Easy

LO: 5

33) Information needs to be sufficient for the purpose for which it is generated, but just barely so.

Answer: TRUE

Page Ref: 17

Difficulty: Moderate

LO: 5

34) Information should be relevant to the subject, not to the context.

Answer: FALSE

Page Ref: 17

Difficulty: Easy

LO: 5

35) Developing systems that provide information in near real time is always easier and cheaper than producing information a few hours later.

Answer: FALSE

Page Ref: 17

AACSB: Use of IT

Difficulty: Easy

LO: 5

36) As a user, when you participate in the development of an IS, timeliness will be part of the requirements you will ask for.

Answer: TRUE

Page Ref: 17

AACSB: Use of IT

Difficulty: Easy

LO: 5

37) A good information system is one that provides the user with information over and above what is required, to account for all possibilities.

Answer: FALSE

Page Ref: 17

AACSB: Use of IT

Difficulty: Moderate

LO: 5

38) Barely sufficient information is a handicap in decision-making as today's business decisions require analysis of large amounts of data.

Answer: FALSE

Page Ref: 17

Difficulty: Moderate

LO: 5

39) Information systems should not be subject to the financial analyses to which other assets are subjected.

Answer: FALSE

Page Ref: 18

AACSB: Use of IT

Difficulty: Easy

LO: 5

40) Information is worth its cost when an appropriate relationship exists between the cost of information and its value.

Answer: TRUE

Page Ref: 18

Difficulty: Easy

LO: 5

41) Information technology and information systems are synonymous.

Answer: FALSE

Page Ref: 18

AACSB: Use of IT

Difficulty: Easy

LO: 6

42) Information technology is the assembly of hardware, software, data, procedures, and people that produce information.

Answer: FALSE

Page Ref: 18

AACSB: Use of IT

Difficulty: Easy

LO: 6

43) Information technology refers to the products, methods, inventions, and standards that are used for the purpose of producing information.

Answer: TRUE

Page Ref: 18

AACSB: Use of IT

Difficulty: Easy

LO: 6

44) You can buy IT, but you cannot buy IS.

Answer: TRUE

Page Ref: 18

AACSB: Use of IT

Difficulty: Easy

LO: 6

45) It is likely that, in the future, most computers will not look like a traditional desktop or laptop.

Answer: TRUE

Page Ref: 19

AACSB: Use of IT

Difficulty: Easy

LO: 7

46) Computers are increasingly being incorporated into everyday products.

Answer: TRUE

Page Ref: 19

AACSB: Use of IT

Difficulty: Easy

LO: 7

47) A strong password must contain no more than seven characteristics.

Answer: FALSE

Page Ref: 22

AACSB: Use of IT

Difficulty: Easy

LO: 2

48) A strong password must contain your user name, real name, or company name.

Answer: FALSE

Page Ref: 22

AACSB: Use of IT

Difficulty: Easy

LO: 2

49) "Laissez-faire" would be a strong password because it is a foreign word.

Answer: FALSE

Page Ref: 22

AACSB: Use of IT

Difficulty: Easy

LO: 2

50) If you need someone's password, you should ask them to enter their password on your keyboard as you look away.

Answer: TRUE

Page Ref: 23

Difficulty: Easy

LO: 2

1.2 Multiple Choice Questions

1) Moore's Law states that the number of transistors per square inch on an integrated chip doubles every ______months.

A) six

B) twelve

C) eighteen

D) fourteen

Answer: C

Page Ref: 4

Difficulty: Easy

LO: 1

2) Which of the following skills has become routine and liable to be outsourced to the lowest bidder?

A) abstract reasoning

B) collaboration

C) computer programming

D) systems thinking

Answer: C

Page Ref: 5

AACSB: Analytic skills

Difficulty: Easy

LO: 1

3) Which of the following skills can be classified as a nonroutine cognitive skill?

A) computer programming

B) tax accounting

C) marketing

D) systems thinking

Answer: D

Page Ref: 6

Difficulty: Easy

LO: 1

4) ______is the ability to make and manipulate models.

A) Abstract reasoning

B) Structural logic

C) Systems thinking

D) Experimentation

Answer: A

Page Ref: 6

Difficulty: Easy

LO: 1

5) ______refers to the ability to model system components and show how the component inputs and outputs relate to one another.

A) Abstract reasoning

B) Systems thinking

C) Dynamic correlation

D) Operational logic

Answer: B

Page Ref: 7

Difficulty: Easy

LO: 1

6) Marjorie recently created a viable and innovative process to streamline the work flow in her department. She developed an accurate model of the new process that clearly indicated how the process would apply to and improve the current practices in the department. However, when presenting her idea to her superiors, Marjorie refused to consider others' suggestions and perspectives and got defensive when people asked her questions. Which of the following cognitive skills does Marjorie need to improve upon?

A) systems thinking

B) experimentation

C) abstraction

D) collaboration

Answer: D

Page Ref: 7

AACSB: Analytic skills

Difficulty: Moderate

LO: 1

7) ______is the activity of two or more people working together to achieve a common goal, result, or work product.

A) Abstract reasoning

B) Systems thinking

C) Experimentation

D) Collaboration

Answer: D

Page Ref: 7

Difficulty: Easy

LO: 1

8) Which of the following statements about collaboration is true?

A) Effective collaboration is predominantly about being nice.

B) Collaboration aims to connect the inputs and outputs among system components.

C) The single most important skill for effective collaboration is to give and receive critical feedback.

D) The ability to collaborate is innate and cannot be learned.

Answer: C

Page Ref: 7

Difficulty: Easy

LO: 1

9) ______involves making a careful and reasoned analysis of an opportunity, envisioning potential products or solutions or applications of technology, and then developing those ideas that seem to have the most promise, consistent with available resources.

A) Abstract reasoning

B) Collaboration

C) Systems thinking

D) Experimentation

Answer: D

Page Ref: 7

Difficulty: Easy

LO: 1

10) Management information systems (MIS) is best defined as ______.

A) the design and development of software applications and computer hardware

B) the development and use of information systems that help businesses achieve their goals and

objectives

C) the study and the science of the theoretical foundations of information and computation and their implementation and application in computer systems

D) the development and use of information systems to study the theoretical foundations of the various aspects of management as a discipline

Answer: B

Page Ref: 8

AACSB: Use of IT

Difficulty: Moderate

LO: 2

11) Which of the following accurately describes the five-component framework of information systems?

A) computer hardware, software, data, people, and purpose

B) computer hardware, software, data, procedures, and people

C) computer hardware, software, purpose, data, and procedures

D) computer hardware, software, communication networks, data, and procedures

Answer: B

Page Ref: 8

AACSB: Use of IT

Difficulty: Moderate

LO: 2

12) Which of the following is an example of computer hardware?

A) a computer monitor

B) data in a USB drive

C) a spreadsheet

D) a user manual

Answer: A

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

13) An operating system like Windows or Linux is an example of the ______component of an information system.

A) software

B) hardware

C) data

D) procedure

Answer: A

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

14) A security protocol for logging in to a computer is an example of the ______component of an information system.

A) software

B) hardware

C) data

D) procedure

Answer: D

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

15) The names and phone numbers of customers are examples of the ______component of a customer relationship management information system.

A) software

B) data

C) procedure

D) people

Answer: B

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

16) Word 2007 and Adobe photoshop, which provide a set of instructions for the computer, are examples of the ______component of an information system.

A) hardware

B) procedure

C) database

D) software

Answer: D

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

17) The storage disk on your computer is an example of the ______component of the information system.

A) hardware

B) software

C) procedure

D) database

Answer: A

Page Ref: 8

AACSB: Analytic skills

Difficulty: Easy

LO: 2

18) Which of the following statements is true about information systems?

A) Simple, low-tech information systems have fewer components.

B) The number of components in an IS increases with the complexity of the information systems.

C) Hardware and software programmers make up the component of "people" in an IS.

D) An information system is an assembly of computers, programs, data, procedures, and people.

Answer: D

Page Ref: 9

AACSB: Use of IT

Difficulty: Easy

LO: 2

19) Which of the following is a correct picture of the development and use of information systems?

A) Even nontechnical employees must know how to build information systems.

B) The responsibility of specifying the needs to be met by an IS rests entirely with IT professionals.

C) Business users must not attempt to influence the system's development process.

D) A business user of an IS must take an active role in the system's development.

Answer: D

Page Ref: 9

AACSB: Use of IT

Difficulty: Moderate

LO: 2

20) Which of the following components in the five-component model of IS is considered an actor?

A) software

B) hardware

C) data

D) procedures

Answer: B

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

21) Which of the following components in the five-component model of IS is considered an actor?

A) software

B) people

C) data

D) procedures

Answer: B

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

22) According to the five-component model for IS, the ______function(s) as the instructions for the hardware in an information system.

A) software

B) users

C) database

D) procedures

Answer: A

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

23) According to the five-component model for IS, the ______function(s) as the instructions for the people involved in an IS.

A) software

B) data

C) hardware

D) procedures

Answer: D

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

24) Which of the following components constitute the human side of IS?

A) data and procedures

B) software and people

C) people and procedures

D) hardware, people, and data

Answer: C

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

25) The ______functions as a bridge between the human side of the information system components and the computer side.

A) software

B) hardware

C) data

D) procedure

Answer: C

Page Ref: 10

AACSB: Use of IT

Difficulty: Easy

LO: 3

26) Which of the following components of an information system is the most important?

A) software

B) people

C) data

D) hardware

Answer: B

Page Ref: 11

AACSB: Use of IT

Difficulty: Easy

LO: 3

27) As CEO of a large organization, you are in the process of collecting and analyzing critical information for a strategic business decision that could influence the profits of your firm in a big way. Which of the following components of your IS would be most important in ensuring that you make the right decision?

A) the hardware capability of the IS to handle huge amounts of data at required speeds

B) software programs and algorithms that can produce error-free results

C) your thinking process and ability to interpret information

D) procedures that will impact the generation of the information

Answer: C

Page Ref: 11

AACSB: Analytic skills

Difficulty: Moderate

LO: 3

28) How do hi-tech and low-tech information systems differ?

A) Low-tech information systems result in a greater degree of automation than do high-tech systems.

B) As opposed to high-tech information systems, in low-tech systems, computers provide more services to users.

C) Low-tech information systems are more effective than high-tech systems in reducing the work load of humans.

D) Low-tech information systems move a relatively small amount of work from people to computers.

Answer: D

Page Ref: 11

AACSB: Use of IT

Difficulty: Easy

LO: 3

29) Which of the following is an example of a low-tech information system?

A) a customer support system that keeps track of product issues

B) a file of email addresses and an email program

C) an inventory tracking system that produces reports every 24 hours

D) a decision support system that analyzes multiple variables

Answer: B

Page Ref: 11

AACSB: Analytic skills

Difficulty: Moderate

LO: 3

30) Which of the following components of an IS is the easiest to change and causes the least amount of organizational disruption?

A) hardware

B) software

C) data

D) procedures

Answer: A

Page Ref: 13

AACSB: Use of IT

Difficulty: Easy

LO: 3

31) Drummer Inc. is a sports equipment provider with a chain of outlets across three states. As part of their expansion strategy, Drummer Inc. decides to enter six more states while also revising its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization?

A) collecting demographic data from the new markets

B) developing new CRM software for the existing and new outlets

C) planning promotions and lateral moves and hiring new employees

D) buying and installing new computers in the new outlets

Answer: D

Page Ref: 13

AACSB: Analytic skills

Difficulty: Hard

LO: 3

32) Which of the following would be the most disruptive to an organization while implementing an information system?

A) installing new hardware components

B) creating new databases

C) developing new programs

D) changing reporting relationships

Answer: D

Page Ref: 13

AACSB: Use of IT, Analytic skills

Difficulty: Moderate

LO: 3

33) It is generally more difficult to make changes to the ______of an information system than to the databases itself.

A) software

B) hardware

C) programs

D) procedures