TRUE/FALSE
1. Information and data are essentially the same thing.
ANS: F PTS: 1 REF: 5
2. A CBIS is a single set of hardware, software, databases, telecommunications, people, and
procedures configured to collect, manipulate, store, and process data into information.
ANS: T PTS: 1 REF: 10
3. The technology infrastructure is a set of shared IS resources that form the foundation of each
computer-based information system.
ANS: T PTS: 1 REF: 10
4. Teraflops is a measure of computer storage capacity.
ANS: F PTS: 1 REF: 11
5. Application software such as Windows Vista and Windows Seven control basic computer
operations such as start-up and printing.
ANS: F PTS: 1 REF: 11
6. A virtual reality system is an example of one of the most common types of information systems.
, ANS: F PTS: 1 REF: 16
7. Mobile commerce is the use of mobile, wireless devices to place orders and conduct business.
ANS: T PTS: 1 REF: 17
8. Electronic business goes beyond e-commerce and e-procurement by using information systems
and the Internet to perform all business-related tasks and functions.
ANS: T PTS: 1 REF: 18
9. A decision support system is an organized collection of people, procedures, software, databases,
and devices that provides routine information to managers and decision makers.
ANS: F PTS: 1 REF: 20
10. MISs typically provide standard reports generated with data and information from a TPS or ERP
system
ANS: T PTS: 1 REF: 20
11. Neural networks give the computer the ability to make suggestions and function like an expert in
a particular field, helping enhance the performance of a novice users.
ANS: F PTS: 1 REF: 23
12. Systems analysis defines the problems and opportunities of the existing system.
ANS: T PTS: 1 REF: 25
13. The primary goal of a for-profit organization is to maximize shareholder value.
, ANS: T PTS: 1 REF: 26
14. By adding a significant amount of value to their products and services, organizations ensure that
they will exceed budgets and generate income losses.
ANS: F PTS: 1 REF: 27
15. Organizational culture consists of the major understandings and assumptions for a business or
other organization.
ANS: T PTS: 1 REF: 31
16. Disruptive change often results in new, successful companies and offers consumers the potential
of new products and services at reduced costs and superior performance.
ANS: T PTS: 1 REF: 32
17. The degree to which an organization supports its use is not an important factor that can lead to
better attitudes about an information system.
ANS: F PTS: 1 REF: 32
18. Studies have shown that user satisfaction and technology acceptance are not particularly
significant in healthcare as professionals in this industry are quick to learn and accept new
technology.
ANS: F PTS: 1 REF: 32
19. If an organization has a high level of both diffusion and infusion, with computers throughout the
organization, information systems are being used to their full potential.
, ANS: F PTS: 1 REF: 33
20. According to Porter’s five-forces model, the more these forces combine in any instance, the less
likely firms will seek competitive advantage and the less dramatic the results of such an
advantage will be.
ANS: F PTS: 1 REF: 34
21. When the threat of new market entrants is high, the desire to seek and maintain competitive
advantage to dissuade new entrants is also usually high.
ANS: T PTS: 1 REF: 34
22. Today, companies are shifting from strategic management to performance-based management of
their information systems and carefully consider both strategic advantage and costs.
ANS: T PTS: 1 REF: 37-38
23. ROI calculations can be complex, including investment returns over multiple years and the
impact of the time value of money.
ANS: T PTS: 1 REF: pg 39
24. Information systems can help bring new products and services in less time thus reducing time to
market.
ANS: T PTS: 1 REF: pg 39-40
25. Because of the difficulty in determining all the costs, total cost of ownership is seldom used to
plan for and maximize the value of IS investments.
ANS: F PTS: 1 REF: pg 40