Chapter 1 Business Information Systems in Your Career
1) Purchase of information systems and telecommunications equipment constituted more
than half of all capital investment in the United States in 2013.
Answer: TRUE
Diff: 2 Page Ref: 5
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 1 - How are information systems transforming business, and what is their
relationship to globalization?
2) A business model describes how a company produces, delivers, and sells a product or
service to create wealth.
Answer: TRUE
Diff: 1 Page Ref: 11
AACSB: Application of knowledge
CASE: Comprehension
Learning Obj.: 2 - Why are information systems so essential for running and managing a
business today?
3) Information systems consists of all the hardware and software that a firm needs to use
in order to achieve its business objectives.
Answer: FALSE
Diff: 2 Page Ref: 13
AACSB: Information technology
CASE: Comprehension
,Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
4) An extranet is a private intranet extended to authorized users outside the organization.
Answer: TRUE
Diff: 1 Page Ref: 17
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
5) Information systems literacy describes the behavioral approach to information
systems, while computer literacy describes the technical approach.
Answer: FALSE
Diff: 1 Page Ref: 15
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
6) The dimensions of information systems are people, organizations, and information
technology.
Answer: TRUE
Diff: 1 Page Ref: 15
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
,its people, organizational, and technology components?
7) In order to understand how a specific business firm uses information systems, you
need to know something about the history and culture of the company.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
8) Developing a new product, fulfilling an order, or hiring a new employee are all
examples of business processes.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Application of knowledge
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
9) Business processes are those logically related tasks for accomplishing tasks that have
been formally encoded by an organization.
Answer: FALSE
Diff: 2 Page Ref: 16
AACSB: Application of knowledge
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?
, 10) Employee attitudes about their jobs, employers, or technology can have a powerful
effect on their abilities to use information systems productively.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Information technology
CASE: Comprehension
Learning Obj.: 3 - What exactly is an information system? How does it work? What are
its people, organizational, and technology components?