Chapter 1 Multiple Choice Test Bank

1) Knowledge workers are professionals who ________.
A) use knowledge to perform their jobs, but do not create knowledge
B) create, modify, and/or synthesize knowledge as a fundamental part of their jobs
C) use their skills to help others gain knowledge
D) modify knowledge created by others, but do not create knowledge themselves
E) work in the education industry
b
2) Which of the following predictions made by Peter Drucker is true?
A) Knowledge workers have lesser bargaining power than workers in other industries.
B) Knowledge workers do not possess valuable real-world skills.
C) Knowledge workers are not reliant on formal education.
D) Knowledge workers are continually learning how to do their jobs better.
E) Knowledge workers are not paid as well as their prior industrial counterparts.
d
3) During the time of the industrial revolution, some individuals who felt threatened by the changes brought about by technology resorted to protesting against the technology. Identify these individuals.
A) Luddites
B) Utopists
C) Millenarists
D) Utilitarians
E) Preterists
a
4) Which of the following occurred when Alvin Toffler’s “third wave” gained speed?
A) Society moved from a predominantly agrarian culture to the urbanized machine age.
B) Occupations changed to accommodate the mechanized society.
C) The ability to perform repetitive tasks became a quality to be instilled and valued.
D) Individuals shifted from handicrafting items for sale to working in factories.
E) Information became the currency of the realm.
e
5) The ability to independently learn new technologies as they emerge and assess their impact on your work and life is called ________.
A) computer assisted learning
B) computer adaptation
C) computer fluency
D) computer compatibility
E) computer programming
c
6) Which of the following best describes the phenomenon termed Web 2.0?
A) using the Internet as a platform for applications
B) uploading files on the Internet
C) learning new technologies as they emerge
D) setting up an online business
E) downloading free software from the Internet
a
7) Which of the following is an example of an economic change brought about by globalization?
A) increases in the frequency of worldwide fads and phenomena
B) development of low-cost computing platforms
C) availability of low-cost communication systems
D) increases in the outsourcing of labor
E) decentralization of organizations
b
8) Which of the following is an example of a technological change brought about by globalization?
A) increases in the frequency of international travel
B) increases in the levels of immigration
C) enforcement of global patent and copyright laws
D) decreases in the frequency of worldwide fads
E) decentralization of organizations
c
9) In his book The World Is Flat, New York Times foreign affairs columnist Thomas L. Friedman characterized the evolution of globalization as having distinct phases. During this globalization phase, mainly European countries were globalizing, attempting to extend their territories into the New World. Identify this globalization phase.
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
E) Globalization 5.0
a
10) According to Thomas L. Friedman, which of the following is true about Globalization 2.0?
A) During this stage, mainly European countries were globalizing.
B) It brought continents closer together, shrinking the world “from size large to size medium.”
C) During this stage, virtually every nation joined the globalization movement.
D) It was interrupted by the Great Depression and the two world wars.
E) During this stage, people didn’t notice how it affected their lives due to the slow pace of change.
d
11) According to Thomas L. Friedman, which of the following is true about Globalization 3.0?
A) Industries changed slowly and change took generations.
B) Continents were brought closer together, shrinking the world “from size medium to size small”.
C) Individuals and small groups from virtually every nation joined the globalization movement.
D) Mainly Americans and Europeans were globalizing.
E) People didn’t notice how it affected their lives due to the slow pace of change.
c
12) In 1994, a company called ________ released the first mainstream Web browser thereby opening up the possibilities of the Internet for the general public.
A) Netscape
B) Microsoft
C) Opera
D) Internet Explorer
E) Firefox
a
13) Uploading enables individuals to ________.
A) access sensitive information on the Internet
B) be producers of information instead of mere consumers
C) copyright information available on the Internet
D) save information found on the Internet onto their personal computers
E) permanently remove information available on the Internet
b
14) The term ________ refers to Web sites allowing users to add, remove, or edit content and is now often used synonymously with open source dictionaries.
A) html
B) ajax
C) wiki
D) perl
E) Web 2.0
c
15) Which of the following best explains the process of moving business processes or tasks to another company?
A) offshoring
B) in-forming
C) in-sourcing
D) exporting
E) outsourcing
e
16) Which of the following can be cited as an example of outsourcing?
A) Microsoft hands over its customer service function to Convergys, located in India.
B) Volkswagon acquires a steel manufacturing plant to reduce its overall production costs.
C) Dell sources computer parts from suppliers located in Russia.
D) Audi starts a manufacturing facility in China to take advantage of low labor costs.
E) P&G acquires a retail outlet to reduce its distribution costs.
a
17) Which of the following refers to having certain functions performed by the same company but in a different country?
A) outsourcing
B) offshoring
C) exporting
D) licensing
E) franchising
b
18) Aircraft manufacturer Boeing designed its new 787 Dreamliner aircraft in Russia, making use of the availability of highly skilled aeronautical engineers. Identify this strategy.
A) offshoring
B) outsourcing
C) in-sourcing
D) franchising
E) licensing
a
19) In order to take advantage of the high quality talent pool, Ernst & Young sets up operations in the Philippines and moves part of its tax services to its new facility. Identify this strategy.
A) outsourcing
B) franchising
C) offshoring
D) in-sourcing
E) in-forming
a
20) TransCorp is a medium-sized IT firm that is looking to outsource its payroll processes. Which of the following statements, if true, would most strengthen the decision to outsource?
A) Companies in other countries can do the same amount of work at a comparable cost.
B) Outsourcing has become a trend among most firms in developed nations.
C) Companies in other countries are more efficient in all aspects of work, along with lower cost.
D) Firms across the globe are adopting cloud computing systems.
E) The firm is enjoying good profit margins.
c
21) TransCorp is a medium-sized IT firm that has outsourced its customer-service processes to the Philippines for the last two years. Which of the following statements, if true, would most weaken the decision to continue outsourcing?
A) Most firms in the Philippines have been accused of poor working conditions.
B) The firm’s prime competitor recently withdrew its outsourcing process.
C) Customers’ complaints about the quality of service have risen dramatically over the past two years.
D) According to a company survey, most employees feel that they require extensive training.
E) The value of the company’s stock recently fell by 5 percent in the New York Stock Exchange.
c
22) ________ refers to the delegation of a company’s logistics operations to a subcontractor that specializes in that operation.
A) Outsourcing
B) In-forming
C) Offshoring
D) In-sourcing
E) Licensing
d
23) Which of the following allows individuals to utilize powerful search engines on the Internet to build their “own personal supply chain of information, knowledge, and entertainment”?
A) offshoring
B) in-forming
C) in-sourcing
D) exporting
E) outsourcing
b
24) Thomas L. Friedman uses the term “the steroids” to refer to technologies ________.
A) that make different forms of collaboration digital, mobile, virtual, and personal
B) that tightly integrate retailers, their suppliers, and their customers
C) that allow firms to outsource business processes on a global scale
D) that allow users to add, remove, or edit content from Web sites
E) that allow individuals to build their own personal supply chain of information and entertainment
a
25) Outsourcing has seen a huge increase because of the ________.
A) increase in decentralization
B) decrease in transportation costs
C) increase in advertising costs
D) decrease in telecommunication costs
E) increase in the cost of raw materials
d
26) ________ is the use of locations closer to the home country in terms of geographical, political, linguistic, economic, or cultural distance.
A) In-forming
B) Nearshoring
C) Onshoring
D) In-sourcing
E) Outsourcing
b
27) U.S. companies move work from India back to Mexico or British Columbia in order to address some of the challenges associated with overseas destinations. This is an example of ________.
A) in-sourcing
B) outsourcing
C) in-forming
D) onshoring
E) nearshoring
e
29) Aortego, a U.S.-based automobile company, has a manufacturing plant in India and has been able to reduce its manufacturing costs significantly because of the country’s highly-skilled yet low cost labor. However, Aortego is forced to shift its plant from India to Canada because of the introduction of a new law which mandates that all companies collaborate with Indian companies before entering into the country. Which of the following best explains Aortego’s shift from India to Canada?
A) offshoring
B) outsourcing
C) in-forming
D) nearshoring
E) in-sourcing
d
30) According to Nicholas Carr, cloud computing may contribute to the decline in outsourcing. Which of the following justifies this statement?
A) An IT outsourcer’s business is built around managing complex internal systems. A shift to a simpler cloud-based IT infrastructure should reduce the need for outsourcers.
B) Outsourcing is based on the availability of cheap labor; these workers will not be able to work on complex cloud-based IT infrastructures, thereby contributing to the decline in outsourcing.
C) Cloud computing is customized in each country, thus making it impossible to outsource.
D) Cloud computing is standardized in all countries, reducing the need for outsourcing.
E) An IT outsourcer’s business is built around managing simple internal systems. A shift to a complex cloud-based IT infrastructure would discourage outsourcing.
e
31) Which of the following is a cultural challenge of operating in the digital world?
A) conducting videoconferences across different time zones
B) aging populations in the United States and Western Europe
C) differences in power distance and uncertainty avoidance
D) availability of labor force and salary differences
E) differences in academic degrees and measurement units
c
32) Which of the following is a geoeconomic challenge of operating in the digital world?
A) differences in network infrastructures
B) differences in the concept of time and life focus
C) differences in measurement units
D) differences in export and import regulations
E) differences in languages
a
33) ________ refers to physical computer equipment, such as the computer monitor, central processing unit, or keyboard.
A) Software
B) Malware
C) Data
D) Hardware
E) Telecommunication
d
34) ________ refer(s) to a program or set of programs that tell the computer to perform certain tasks.
A) Software
B) Telecommunication
C) Hardware
D) Data
E) Networks
a
35) Which of the following statements is true about information systems (IS) and information technology (IT)?
A) IS programs are more technical in nature than IT programs.
B) IT programs have a stronger managerial focus than IS programs.
C) Software and telecommunications are present in IS, but excluded from IT.
D) The differences between IT and IS is increasing due to globalization.
E) IT programs are more technical in nature, whereas IS programs have a stronger managerial focus.
e
36) Which of the following statements is true about data?
A) It can be defined as a representation of reality.
B) It is the ability to understand information.
C) It has no meaning in and of itself.
D) It is the ability to make decisions or predictions based on information.
E) It organizes or manipulates information to make it suitable for a given task.
c
37) Which of the following statements is true about information?
A) It has no meaning in and of itself.
B) It organizes or manipulates knowledge to make it suitable for a given task.
C) It is raw material—recorded, unformatted words and numbers.
D) It is a representation of reality.
E) It is the ability to make predictions based on data.
d
39) Which of the following IS personnel is responsible for coding, testing, debugging, and installing programs?
A) a programmer
B) a systems consultant
C) an IS manager
D) a systems analyst
E) an IS security manager
a
40) Which of the following IS personnel is responsible for strategic planning and IS use throughout a firm?
A) the chief information officer
B) the IS security manager
C) the IS manager
D) the Webmaster
E) the IS auditor
a
41) In information systems management, a systems consultant is responsible for ________.
A) analyzing business requirements and selecting information systems that meet those needs
B) coding, testing, debugging, and installing programs
C) auditing information systems for compliance with internal and external standards
D) managing security measures and disaster recovery
E) providing information systems knowledge to external clients
e
42) Which of the following is part of an IS personnel’s technical knowledge and skills?
A) systems analysis and design
B) integrating subsystems and systems
C) alternative development methodologies
D) network operating systems
E) technological communication and presentation
d
43) Which of the following is part of an IS personnel’s business knowledge and skills?
A) information gathering and synthesis
B) technological communication and presentation
C) systems development life cycle
D) problem identification and solution formulation
E) virtualization
b
44) Which of the following is part of an IS personnel’s systems knowledge and skills?
A) hardware platforms
B) business processes
C) alternative development methodologies
D) cabling and network interface cards
E) application software
c
45) Identify the purpose of a transaction processing system used in organizations.
A) to support the activities within a specific functional area of the firm
B) to handle day-to-day business event data at the operational level of the organization
C) to support interaction between the firm and its customers
D) to support the coordination of suppliers, product or service production, and distribution
E) to enable customers to buy goods and services from a firm’s Web site
b
46) The purpose of a(n) ________ is to support and integrate all facets of the business, including planning, manufacturing, sales, marketing, and so on.
A) intelligent system
B) functional area information system
C) electronic commerce system
D) enterprise resource planning system
E) management information system
d
47) The purpose of an intelligent system is to ________.
A) enable people to communicate, collaborate, and coordinate with each other
B) create, store, analyze, and manage spatial data
C) emulate or enhance human capabilities
D) support the coordination of suppliers, product or service production, and distribution
E) produce detailed information to help manage a firm
c
48) Which of the following can be cited as an example of a supply chain management system?
A) procurement planning
B) market analysis
C) knowledge portal
D) sales force automation
E) product demand forecasting system
a
49) Identify the purpose of an office automation system.
A) to processes day-to-day business event data at the operational level of the organization
B) to provide access to databases in order to support quantitative decision making
C) to support a wide range of predefined day-to-day activities of individuals and small groups
D) to support interaction between the firm and its customers
E) to support the activities within a specific functional area of the firm
c
50) A grocery store checkout cash register with a connection to a network is an example of a(n) ________.
A) intelligent system
B) functional area information system
C) decision support system
D) transaction processing system
E) electronic commerce system
d
51) The process of connecting separate information systems and data to improve business processes and decision making is known as ________.
A) database development
B) business intelligence
C) systems integration
D) application development
E) collaboration systems
c
52) Microsoft’s Exchange/Outlook and Lotus Notes, provide people with e-mail, automated calendaring, and online, threaded discussions, enabling close contact with others, regardless of their location. Identify this type of information system. These are examples of ________.
A) collaboration systems
B) office automation systems
C) data mining and visualization systems
D) functional area information systems
E) transaction processing systems
a
53) Which of the following statements is true about today’s service-oriented IS personnel?
A) They modify systems at a moment’s notice to meet customer needs quickly and effectively.
B) They patiently wait for customers to come in with systems complaints.
C) They believe that they own and control the computing resources.
D) They give reasons why customers’ ideas cannot or will not work.
E) They believe they should tell users what they can and cannot do with the computing resources.
a
54) Toyota’s automotive electronics systems and FedEx’s Web site were not developed solely because managers in these organizations wanted to do things faster or because they wanted to have the latest, greatest technology. These organizations developed these systems to help gain or sustain competitive advantage. The choices made in developing the systems at both Toyota and FedEx were ________ in their intent.
A) operational
B) functional
C) strategic
D) departmental
E) tactical
c
55) Which of the following is used to describe the issues and standards of conduct as they pertain to the use of information systems?
A) virtual ethics
B) social informatics
C) cyber security
D) computer etiquette
E) computer ethics
e
56) ________ is concerned with what information an individual should have to reveal to others in the workplace or through other transactions.
A) Information accessibility
B) Information accuracy
C) Information privacy
D) Information asymmetry
E) Information piracy
c
58) WorldTravel (www.worldtravel.com) is a travel Web site that provides detailed information about the different places that tourists can visit across the globe. Additionally, it also helps visitors to book tickets and hotels in these destinations. Which of the following, if true, would most assure the customers about their online privacy?
A) WorldTravel, when collecting personal information, explicitly states the purpose of the information and that it will not be used for anything else.
B) WorldTravel informs its members that it is following the best practices in the industry.
C) WorldTravel, when collecting personal information, explicitly tells all its customers that the information collected will be protected by a third party who specializes in this domain.
D) WorldTravel decides not to send any spam mails to any of its members.
E) WorldTravel, when collecting personal information, explicitly tells all its customers that the information collected is protected under the Electronic Communications Privacy Act.
a
59) Which of the following statements is true about online privacy?
A) A vendor cannot track the Web pages you look at.
B) A vendor cannot track what products you examine in detail.
C) A vendor is not capable of knowing the method of payment you choose to use.
D) A vendor is not required by law to respect your privacy.
E) A vendor cannot know where you are having the product delivered.
d
60) Which of the following steps should be taken to ensure ones privacy online?
A) Avoid Web sites that are monitored by independent organizations.
B) Visit Web sites anonymously.
C) Adjust your Web browser settings to save cookies.
D) Ensure you receive a confirmation e-mail whenever you buy products online.
E) Maintain only one e-mail account and use it when making online purchases.
b
61) ________ is concerned with ensuring the authenticity and fidelity of information as well as with identifying who is responsible for informational errors that harm people.
A) Information privacy
B) Information accuracy
C) Information accessibility
D) Information property
E) Information protection
b
62) Information property focuses on ________.
A) who owns information about individuals and how information can be sold and exchanged
B) information that has been encrypted by the owner to make it unaccessible to others
C) information an individual should or should not have to reveal to others in the workplace
D) information a person or organization has the right to obtain about others
E) the authenticity of information as well as responsibility for informational errors that harm people
a
63) Who owns the computerized information that is stored in thousands of databases by retailers, credit card companies, and marketing research companies?
A) the government
B) the Chief Information Officer
C) the firm that maintains the database
D) the customers themselves
E) the company’s IT department
c
64) Information about “who am I, and where do I live?” is an example of ________.
A) behavioral data
B) geographic data
C) psychographic data
D) demographic data
E) attitudinal data
d
65) Information accessibility focuses on ________.
A) defining what information a person or organization has the right to obtain about others
B) identifying who is responsible for informational errors that harm people
C) information that has been encrypted by the owner to make it unaccessible to others
D) who owns information about individuals and how information can be sold and exchanged
E) what information an individual should have to reveal to others in the workplace
a
66) The ________ Act of 1986 made it much more difficult for anyone, including the government, to eavesdrop on phone conversations.
A) Electronic Communication Modernization
B) Internet Privacy
C) Sarbanes-Oxley
D) Gramm-Leach-Bliley
E) Electronic Communications Privacy
e
67) The gap between those individuals in our society who are computer literate and have access to information resources like the Internet and those who do not is referred to as the ________.
A) horizontal disparity
B) digital divide
C) electronic gap
D) generation gap
E) knowledge divide
b
68) Which of the following can be cited as an example of a digital divide?
A) Unlike Joey, Ryan has access to more books and good advice because he studies in a better school.
B) Unlike Ben, Claudia possesses superior analytical skills, which makes her better at mathematics.
C) Kevin is more successful than Vincent because of his people skills.
D) Lora has access to more information than Frank because she knows how to operate a computer.
E) Trisha is wealthier than Neal because her father is a successful businessman.
d
69) The digital divide is one of the major ethical challenges facing society today when you consider the strong linkage between computer literacy and a person’s ability to compete in the information age. Which of the following statements, if true, would widen the digital divide?
A) According to Moore’s law, the cost of computing is expected to decrease drastically over the next few years.
B) Companies like Microsoft and Berkshire Hathaway have invested billions of dollars in research on information technology.
C) IT firms are concerned about and are conducting extensive research on the obsolescence of technology.
D) The increase in the need for innovative technology has increased the cost of research, which has resulted in an increase in the cost of computing.
E) Certain IT firms are conducting exclusive research to make the technology product life-cycle longer.
a
38) Which of the following IS personnel is responsible for the maintenance of information systems?
A) a systems analyst
B) a database administrator
C) a programmer
D) an IS security manager
E) a systems consultant
b
70) A global project called One Laptop per Child is attempting to distribute low-cost laptop computers to children in developing countries around the world in an attempt to shrink the ________.
A) digital divide
B) electronic gap
C) power distance
D) horizontal disparity
E) knowledge gap
a