Facebook pulled in more traffic in North America than Google in March 2010. Basic types of IT like databases and network services are commodities that do not provide competitive advantage. A company's business model refers to how it generates revenue from its assets. A transaction processing system (TPS) processes raw data into information by capturing and processing transactions.

1. BUS 365 Week 2 Quiz – Strayer NEW
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Chapter 1 Information Systems in the 2010s
Multiple Choice
1. The importance of being an agile enterprise has increased significantly because of
_________ and _________.
a) competition; slowed population growth
b) social networks; rapid economic recovery
c) slow economic recovery; advances in mobile technology
d) rapid population growth; corporate strategy
2. _________ are valuable to businesses because they can connect, communicate,
collaborate, and do commerce on-demand, in real-time, and at a distance.
a) Multimedia networks
b) Interactivity applications
c) Broadband infrastructures
d) Podcasts
3. Which of the following is not an impact of the mass migration of users from PCs to
mobile devices?
a) It has improved the privacy of users and security of corporate networks.
b) It has expanded the scope of information systems beyond traditional organizational
boundaries.
c) It has torn down the walls between business, professional, and personal lives.
d) It has made location irrelevant to a large extent.
4. Which of the following is a characteristic of competitive advantage?
a) It is a long lasting edge over competitors if based on IT.
b) It is short-lived if competitors quickly duplicate it.
c) It requires the use of social media and networks.
d) It provides a big strategic payoff.
5. While of the following statements about mobile market opportunities is false?
a) Mobiles are replacing computers as the primary way to connect with public and
private networks and to get work done.
b) Mobile gadgets are starting to look and feel like handheld computers, able to run
all sorts of software.
c) Desktop and laptop computers are taking on more and more nontraditional duties,
like streaming media to TV sets, stereos, and other household appliances.
d) Touch-navigate devices running on 3G and 4G networks create business
opportunities and eliminate business threats.
6. According to Pew Research, newspapers have seen ad revenue __________ during
the time between 2007 to 2010.

2. a) rise 10%
b) remain constant
c) fall 43%
d) fall 75%
7. Facebook’s rapid growth and its ranking as number one is an interesting and
informative business case because:
a) it shows the power of IT to disrupt the status quo and transform industries.
b) it is a public company with an immensely-profitable business model.
c) it has positioned itself solely as a social network.
d) all of the above
8. In March 2010, __________ pulled in more Internet traffic in North America than
Google.
a) eBay
b) Facebook
c) Microsoft
d) Apple
9. Innovation leads to profitable growth if that innovation:
a) generates new profit pools.
b) increases demand for products and services.
c) attracts new competitors.
d) Both a and b
10. How a company generates revenue from its assets is referred to as its
__________.
a) asset infrastructure
b) business model
c) corporate culture
d) organizational structure
11. Nokia makes and sells cell phones and generates profit from these sales. This
statement defines Nokia’s business __________.
a) model
b) processes
c) supply chain
d) value proposition
12. According to McKay and Marshall, a comprehensive business model is composed
includes each of the following elements except:
a) A description of all products and services the business will offer.
b) A description of the business process required to make and deliver the products and
services.
c) A description of the customers to be served.
d) A description of competitive forces in the industry.
13. Basic functions of an IS are:
a) input, processing, and output.
b) input, processing, output, and feedback.

3. c) user interfaces, data sources, processing, and reporting.
d) hardware, software, data, and procedures.
14. Which of the following is not a component of an information system?
a) input
b) hardware
c) network
d) people
15. A company believes that superb customer service and on-time delivery are
valuable and critical to their success. Their beliefs and values form the __________
that influences the company’s IT investments.
a) feedback
b) business functions
c) social context
d) inputs
16. __________ are shaking-up or disrupting the ways companies do business, the
jobs of managers and workers, the design of business processes, and the structure of
markets.
a) IT innovations
b) Wireless networks
c) Social media
d) Social networks
17. Performance improved significantly at 1-800-Contacts after the company invested
in __________ that enabled call center operators to monitor their performance as
often as every 15 minutes.
a) semiautomatic business processes
b) dashboard reporting tools
c) private networks
d) social networks
18. IS capabilities support all of the following business objectives except:
a) improving productivity.
b) reducing waste.
c) facilitating collaboration.
d) automating decision making.
19. The value of an information system is determined by the relationships among ISs,
people, and business processes—which are influenced strongly by:
a) fast, accurate communication and collaboration.
b) huge amounts of information that is accessible via networks.
c) organizational culture..
d) automation of decision making
20. Widespread adoption of new technology is going to __________ the usual way
business is done.
a) disrupt
b) cause minor changes in

4. c) destroy
d) have little effect on
21. What has made location practically irrelevant to doing business?
a) social media
b) social networks
c) widespread use of mobile devices
d) Google
22. The 1-800-CONTACTS case study showed the importance of __________ on
performance.
a) daily reports
b) feedback
c) IT departments
d) training
23. Information bottleneck can create __________ that keep managers from knowing
what is going on as it is going on.
a) information overload
b) blindspots
c) windows
d) dashboards
24. A negative ethical impact of mobile marketing efforts is that they can be
__________.
a) invasive
b) expensive
c) innovative
d) pervasive
25. Critical business processes are those that improve employee performance and
__________.
a) strategic planning
b) commodities
c) profit margins
d) business models
26. Business models include a __________, which is an analysis of the benefits of
using the specific model.
a) revenue model
b) supply chain
c) value proposition
d) profit margin
27. Managers decide to increase the number of new accounts by 4.0% within the next
quarter. This is an example of:
a) an objective.
b) a strategy.
c) customer loyalty.
d) qualitative metric.

5. 28. A company’s goals are increased sales and improved customer loyalty. Which of
the following is correct?
a) Sales revenue is a rather easy-to-calculate quantitative metric.
b) Customer loyalty is a quantitative metric with a longer time dimension.
c) Sales revenue is a quantitative metric with a longer time dimension.
d) Customer loyalty is a qualitative metric with a shorter time dimension.
29. In order to manage performance, a fundamental requirement is __________.
a) using real-time dashboards and reporting tools
b) being able to measure
c) knowing that the indicator is measuring the right thing
d) b and c
30. Measuring performance requires each of the following except:
a) comparing results to competitors.
b) identifying the most meaningful measures of performance.
c) being able to measure them correctly.
d) selecting the set of measures that provides a holistic indicator of performance.
31. Concern about environmental damage and reducing a company’s carbon and
energy footprints on the planet has triggered efforts for __________.
a) data centers
b) EPA
c) green IT
d) RFID
32. __________ are a measure of the impact a business’ activities have on the
environment, and in particular climate change.
a) Carbon footprints
b) Hydrogen footprints
c) Toxic wastes
d) Greenhouse emissions
33. Why are companies, such as Monsanto and Wells Fargo, willing to invest in the
building of new data centers?
a) To stop wasting capital maintaining outdated energy-inefficient data centers.
b) To comply with government energy regulations.
c) To develop new computing capabilities.
d) To improve business process performance.
34. Ethical issues can be challenging because:
a) there are no standards of right and wrong.
b) security is more important than privacy.
c) all countries agree on what is ethical.
d) what is considered ethical by one person may seem unethical to another.

6. 35. KD Company is looking to expand its business operations into a developing
country. As part of SWOT analysis, KD needs to investigate that country’s:
a) political stability
b) economic stability
c) critical infrastructure
d) All of the above
36. __________ is a series of processes in which an organization selects and arranges
its businesses or services to keep the organization viable even when unexpected
events disrupt its businesses, markets, products, or services.
a) Strategic planning
b) SWOT
c) Value proposition
d) Threat analysis
37. An organization’s __________ addresses questions such as, “What is the long-
term direction of our business?”
a) operations
b) critical infrastructure
c) strategy
d) opportunities
38. __________ is the scanning and review of the political, social, economic and
technical environment of the organization.
a) Strategic analysis
b) Business performance
c) Operational planning
d) Value analysis
39. __________ involves the evaluation of strengths and weaknesses, which are
internal factors; and opportunities and threats, which are external factors.
a) Strategic analysis
b) Business performance
c) Operational planning
d) SWOT analysis
40. Price wars or other fierce reactions by competitors are examples of:
a) strengths.
b) weaknesses.
c) opportunities.
d) threats.
41. According to Porter’s competitive forces model, there are five major forces in an
industry that affect the degree of competition. Those five forces impact:
a) sales.
b) profit margins.
c) marketing.
d) expenses.

7. 42. FedEx and UPS have ISs that are difficult to duplicate and very expensive. Those
ISs:
a) create barriers that reduce the threat of entry.
b) increase the threat of substitute services.
c) decrease bargaining power of customers.
d) increase bargaining power of suppliers.
43. __________ involve the purchase of materials, the processing of materials into
products, and delivery of products to customers.
a) Supply chains
b) Logistics
c) Primary activities
d) Support activities
44. For most organizations, if their computer networks go down, __________.
a) social networks are used
b) data centers are used to store data
c) so does the business
d) business continues as usual
45. According to Occupational Outlook Handbook, 2010-11 Edition published by the
U.S. Bureau of Labor Statistics, what is the outlook for Computer and Information
Systems Manager?
a) Employment is expected to grow faster than the average for all occupations.
b) A master’s degree in a computer-related field is required for entry-level positions.
c) Employment is expected to grow slower than the average for all occupations.
d) Job prospects are uncertain.
True/False
46. During the last decade, Facebook, LinkedIn, YouTube, Twitter and blogs became
extensions of businesses to reach customers, prospects, and business partners.
47. The massive adoption of smart devices has created a huge base of multi-tasking
users, and a market for companies to tap and target.
48. Facebook created an entirely new market and changed the game for industries
who were not its usual competitors--namely, music, media, and consumer electronics
companies.
49. Some types of IT, such as databases and network services, are commodities,
which do not provide a special advantage.
50. A SWOT model spells out how a company creates or adds value in terms of the
goods or services it produces.

8. 51. An IS can be as small as a smartphone with a software app that can snap tags to
load a Web site. Or it may include several thousand computers of various types,
scanners, printers, and other devices connected to databases via wired and wireless
telecommunication networks.
52. ISs have a purpose and a social or organizational context.
53. Discarded PCs and other computer equipment are waste disposal problems.
54. IT no longer creates challenging ethical issues because practices such as employee
e-mail monitoring and unrestricted use of customer data are accepted as necessary or
legal.
55. Strategy planning is critical for all organizations, including government agencies,
healthcare, education, military, and other nonprofit and not-for-profit ones.
56. During SWOT analysis, there is usually agreement among managers because
SWOT analysis is objective, forward-looking, and data-driven.
57. According to Porter’s competitive forces model, Apple, Microsoft, and auto
manufacturers have strong bargaining power as suppliers because their brands are
powerful.
58. Rivalry among existing firms in the industry is a competitive force that is most
likely to be weak when entry barriers are low; threat of substitute products is high,
and suppliers and buyers in the market attempt to control.
59. Sabermetrics is the mathematical analysis of baseball player batting and pitching
performances.
60. A batch system is an IS that provides fast enough access to information or data so
that an appropriate decision can be made, usually before data or situation changes.
Short Answer
61. In March 2010, Facebook pulled in more traffic in North America than
__________.
62. Basic types of IT are __________ because companies need to function, but they
do not provide a special advantage.
63. How a company generates revenue from its assets is referred to as its
__________.

9. 64. A(n) __________ collects, processes, stores, analyzes, and distributes information
for a specific purpose or objective.
65. __________ is a set of applications or programs that instruct the hardware to
process data or other inputs such as voice commands.
66. Energy and __________ footprints are a measure of the impact a business’
activities have on the environment, and in particular climate change.
67. __________ relates to standards of right and wrong,
68. __________ analysis involves the evaluation of strengths and weaknesses, which
are internal factors; and opportunities and threats, which are external factors.
69. __________ activities are those business activities through which a company
produces goods. Examples of those activities are purchasing materials, processing
materials, and delivery of products to customers.
70. Innovation and adaptability are __________ because they are examples of things
that must go right for a company to achieve its mission.
Essay
71. Identify three interactivities that have potential business value and that can occur
by snapping a 2D tag.
72. List and describe the four basic functions of an information system.
73. There are two fundamental requirements for managing business performance:
being able to measure and knowing that your indicator is measuring the right thing.
Explain each of these requirements and why they are challenging.

10. 74. List and explain the four major steps in business performance management
(BPM).
75. List and explain the five industry (market) forces in Michael Porter’s competitive
forces model.
Chapter 2 Infrastructure and Support Systems
Multiple Choice
1. __________ is the collection of hardware, software, processes, networks, and users.
a) IT infrastructure
b) IT function
c) Transaction processing system
d) MIS
2. A transaction processing system (TPS):
a) processes raw data.
b) does reporting.
c) extracts, transforms, and loads data.
d) does advanced data analysis.
3. The number of hours an employee worked in a certain week is an example of:
a) information.
b) a transaction.
c) knowledge.
d) data.
4. __________ is data that has been processed, organized, or put into context so that it
has meaning and value to the person receiving it.
a) Information
b) A transaction
c) Knowledge
d) A report
5. __________ consists of data that have been processed, organized, and put into
context to be meaningful, and to convey understanding, experience, accumulated
learning, and expertise.
a) Information
b) A transaction

11. c) Knowledge
d) Wisdom
6. Managing a product recall in a way that minimizes negative impacts on sales of
other products and profits is an example of:
a) data.
b) information.
c) knowledge.
d) decision.
7. A __________ consists of stored data organized for access, search, retrieval, and
update.
a) file
b) database
c) TPS
d) system
8. Why are TPSs critical systems?
a) Data need to be analyzed and reported to managers to support their decision
making processes.
b) Manual systems are subject to too much human error.
c) Transactions that do not get captured can result in lost sales, dissatisfied customers,
and other types of data errors.
d) They are essential components of process control systems.
9. Processing of transactions is done in one of two modes:
a) batch and real-time.
b) online and offline.
c) manual and computerized.
d) online and real-time.
10. Which of the following is an advantage of batch processing over online
transaction processing?
a) higher data quality
b) costs less
c) more up-to-date data
d) a and b
11. If a customer sets up an account with REI.com to purchase from their Web site,
the __________ will validate that the address, city, and postal code are consistent and
valid in order to improve __________.
a) OLTP; data storage
b) OLTP: data visibility
c) TPS; data quality
d) TPS; data transfer
12. Data errors:
a) are difficult to correct the later they are detected.

12. b) expose the company to legal action.
c) may never be detected and corrected.
d) all of the above
13. Victims of identity theft face enormous challenges and frustration because:
a) data errors detected later are difficult to correct.
b) data processing does not improve data quality.
c) data processing is done in real-time.
d) data processing cannot detect obvious data errors.
14. Which of the following is not an example of a routine business transaction for a
manufacturing company?
a) purchase orders
b) payroll
c) consolidation
d) billing
15. General purpose reporting systems are referred to as __________ systems.
a) management information
b) decision support
c) operational
d) transactional
16. Which of the following is not an objective of MIS?
a) to provide reports to managers for tracking operations
b) to provide reports to managers for monitoring
c) to provide reports to managers for control
d) to provide reports to managers for strategic planning
17. __________ reports are created or run according to a pre-set schedule, such as
daily, weekly, or quarterly.
a) Periodic
b) Exception
c) Ad hoc
d) Functional
18. Sales of fresh produce drop during an E. coli food contamination crisis. What type
of reports would be generated in this unique situation?
a) Periodic
b) Exception
c) Ad hoc
d) Functional
19. Sony’s managers notice a significant change in demand for the company’s
eReaders. They request that reports be generated so they can learn more about this
situation. What is this type of report?
a) Periodic
b) Exception
c) Ad hoc
d) Functional

13. 20. Decision support systems are __________ that support unstructured and semi-
structured decision making.
a) interactive applications
b) reporting applications
c) operations support systems
d) process control systems
21. Deciding which new products to develop or which new markets to enter are
examples of __________ decisions because they depend on human intelligence,
knowledge, and/or experience.
a) structured
b) semistructured
c) unstructured
d) routine
22. Decision makers manipulate models in a DSS to perform __________ analysis,
which refers to changing assumptions or data in the model to see the impacts of those
changes on the outcome.
a) goal seeking
b) experimental
c) structured
d) what-if
23. A __________ is a visual presentation of critical data, such as the results of a
report or analysis, to more quickly understand data.
a) dashboard
b) GUI
c) touch screen
d) KPI
24. __________ is a computerized process for conducting searches in large amounts
of data and information in order to discover unknown valuable relationships in the
data.
a) Drill down
b) Data mining
c) Business mining
d) Data analytics
25. __________ is the science concerned with managing material and information
flows to optimize supply chain operations.
a) Database management
b) Process control
c) Logistics
d) Sourcing

14. 26. A company’s competitive advantage, such as low cost, quality, and/or speed to
market, depends on:
a) how well its supply chain is aligned and managed.
b) minimizing the physical flows of its products.
c) how well it maximizes its global sourcing.
d) its ability to recycle.
27. Because Wal-Mart has thousands of suppliers to manage and is constantly looking
for new ones worldwide, they invested in a new __________ strategy.
a) mobile networking
b) global sourcing
c) global support
d) mobile support
28. Wal-Mart’s global sourcing strategy is designed:
a) to reduce costs of goods, increase speed to market, and improve the quality of
products.
b) to identify and evaluate marketing opportunities.
c) to increase production efficiency.
d) to process transactions in real-time.
29. By linking a company with its suppliers, vendors, and customers, the supply chain
creates __________.
a) logistics inefficiencies
b) automated distribution centers
c) an extended enterprise
d) a warehouse control system
30. RFID is a technology that uses __________ instead of __________ to identify
products or pallets.
a) electronic tags; bar codes
b) electronic tags; chips
c) bar codes; PINs
d) PINs; EPC tags
31. Which of the following best describes RFID implementation?
a) RFID systems are frequently implemented as stand-alone systems.
b) RFID implementation has been slow due to costs, privacy, and security concerns.
c) RFID implementations are used only to track products and pallets.
d) RFID implementation has been rapid and widespread for security reasons.
32. When employees log into the company network or e-mail accounts, or access data
or documents to perform their jobs, two critical factors impacting their productivity
are:
a) password strength and availability of mobile networks.
b) cloud computing and software applications.
c) virtualization and private clouds.
d) speed of the response and the reliability of the hardware.

15. 33. A company’s __________ determines the workload that its ISs, apps, and mobile
computing devices can handle and their speed.
a) TPS
b) network access point
c) IT infrastructure
d) firewall
34. IT infrastructure is the collection of:
a) hardware and software.
b) hardware, software, and networks.
c) hardware, software, networks, and mobile devices.
d) hardware, software, processes, networks, and users.
35. To improve the performance and ability to store, protect, and manage data at
lower up-front costs, companies are turning to __________ options.
a) cloud computing
b) mainframe
c) visualization
d) data center
36. __________ is the term used to refer to the Internet.
a) Shadow
b) Cloud
c) Tag
d) Chain
37. The general name for Internet-based infrastructures is __________.
a) social networking
b) cloud computing
c) Web 1.0
d) Web 2.0
38. The U.S. Department of Defense implemented __________ to service many
military agencies in order to reduce IT infrastructure costs while protecting its
sensitive data.
a) RFID
b) cloud computing
c) a private cloud
d) virtualization
39. Which of the following represents the evolution to Internet-based infrastructure?
a) public cloud computing; private cloud computing; virtualization
b) wired; wireless; mobile computing
c) virtualization; cloud computing; enterprise computing
d) virtualization; private cloud computing; cloud computing

16. 40. Which of the following statements about virtualization is false?
a) Virtualization is primarily about cost-cutting.
b) Virtualization is often a key part of an enterprise’s disaster recovery plan.
c) Virtualization separates business applications and data from hardware resources to
pool hardware resources.
d) Virtualization increases the flexibility of IT assets, allowing companies to
consolidate IT infrastructure.
41. Large companies and government agencies with multiple locations may set up
__________ on servers that they own if data confidentiality is a key requirement.
a) public clouds
b) private clouds
c) encrypted clouds
d) social clouds
42. Cloud computing is Internet-based computing in which shared resources, such as
hard drives and software apps, are provided to computers and other devices
__________, like a public utility.
a) in batch
b) via mobile networks
c) on-demand
d) via SaaS
43. All of the following are characteristics of software-as-a-service (SaaS) except:
a) SaaS is an increasingly popular IT model for large but not small companies in
which software is available to users as needed.
b) The SaaS model was developed to overcome the challenge to an enterprise of being
able to meet fluctuating demands on IT resources efficiently.
c) Other terms for SaaS are on-demand computing, utility computing, and hosted
services.
d) Usually there is no hardware and software to buy since the apps are used over the
Internet and paid for through a fixed subscription fee, or payable per an actual usage
fee.
44. What is a disadvantage of cloud computing?
a) It may be more difficult to get to the root of IT infrastructure performance
problems.
b) It is higher cost than company-owned IT infrastructures.
c) There is more control than with company-owned IT infrastructures.
d) Service-level agreements (SLAs) with vendors are not necessary.
45. Which of the following is a major cloud computing vendor?
a) Amazon's EC2
b) Google's AppEngine
c) Microsoft's Azure
d) All of the above
True/False

17. 46. Business software applications are hardware devices that support a specific task or
business process.
47. Multiple business apps form a system that supports a functional area--marketing,
finance, human resources, production, operations, accounting, and IT.
48. To track attendance at basketball games, the Dallas Mavericks put RFID codes on
tickets, which enabled them to assess the effectiveness of their marketing efforts.
49. The U.S. Army enlists video games and virtual worlds to teach soldiers
interpersonal skills, cultural awareness, and negotiation skills that are heavily
dependent on culture for combat in foreign environments.
50. Knowing how to manage a vehicle recall to minimize negative impacts on new
vehicle sales is an example of information.
51. Data is the raw material from which information is produced; and the quality,
reliability and integrity of the data must be maintained for the information to be
useful.
52. The quarterly sales of new Toyota vehicles from 2008 through 2010 is knowledge
because it would give some insight into how the vehicle recalls during 2009 and 2010
impacted sales.
53. Transaction processing systems (TPSs) process specific types of data input from
ongoing transactions. TPSs can be manual or automated.
54. Decision support systems are critical systems because transactions that do not get
captured can result in lost sales, dissatisfied customers, and many other types of data
errors.
55. Transaction data that are captured by a TPS are always processed in real-time,
stored in a database, and then are available for use by other information systems.
56. Payroll processing is typically done in batch mode; while e-commerce
transactions are processed in real-time.
57. When a customer sets up an account with Newegg.com to purchase from their
Web site, the TPS validates that the address, city, and postal code are correct and
consistent to insure data quality.
58. DSSs support unstructured and semi-structured decisions, such as whether to
make or buy products, or what new products to develop and introduce into existing
markets.

18. 59. Supply chains can be grossly inefficient unless the companies in the supply chain
can share data, collaborate, and respond to changes in demand and do so efficiently
and quickly.
60. Business intelligence (BI) increases the flexibility of IT assets, allowing
companies to consolidate IT infrastructure, reduce maintenance and administration
costs, and prepare for strategic IT initiatives.
Short Answer
61. In order for __________ or real-time processing to occur, the input device or Web
site must be directly linked via a network to the TPS.
62. Processing improves _________, which is important because reports and
decisions are only as good as the data they are based upon.
63. _________ is a computerized process for conducting searches in large amounts of
data and information in an attempt to discover unknown valuable relationships in the
data.
64. __________ involves identifying sellers that could provide a retailer, such as Wal-
Mart, with products or services to sell in their stores and online.
65. __________ is the collection of hardware, software, processes, networks, and
users.
66. The __________, which is the term used to refer to the Internet, has greatly
expanded the options for enterprise IT infrastructures.
67. Cloud computing evolved from __________, which is an approach based on IT
consolidation that enables more flexible IT infrastructures and lower IT costs.
68. With __________, instead of buying and installing expensive packaged enterprise
applications, users can access software apps over a network, with an Internet browser
being the only absolute necessity.
69. Large companies or government agencies with multiple locations can set up their
own __________ on servers that they own if data confidentiality is a key requirement
and they want to reduce IT infrastructure costs.
70. __________ is the pooling of physical storage from multiple network storage
devices into what appears to be a single storage device that is managed from a central
console.
Essay

19. 71. Define data, information, and knowledge. Give an example of each.
72. What are the three defining characteristics of DSSs?
73. What is an advantage of virtualization? List and explain one type of virtualization.
74. Why would organizations use cloud computing during tough economic times?
75. When making decisions about how to acquire IT infrastructure components, what
are two IT infrastructure characteristics that need to be considered? Explain each
characteristic.