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TESTBANK for Essentials of MIS, 10e (Laudon/Laudon) Essentials of MIS, 10e (Laudon/Laudon) Chapter 1 Business Information Systems in Your Career 1) Internet advertising is growing at a rate of more than 30 percent a year. Answer: FALSE Diff: 3 Page Ref: 6 AACSB: Reflective Thinking CASE: Comp...

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Essentials of MIS, 10e (Laudon/Laudon)
Chapter 1 Business Information Systems in Your Career

1) Internet advertising is growing at a rate of more than 30 percent a year.
Answer: FALSE
Diff: 3 Page Ref: 6
AACSB: Reflective Thinking
CASE: Comprehension

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: Reflective Thinking
CASE: Comprehension

3) Information technology (IT) consists of all the hardware that a firm needs to use in order to
achieve its business objectives, whereas information systems consist of all the hardware and
software needed.
Answer: FALSE
Diff: 2 Page Ref: 13
AACSB: Use of IT
CASE: Comprehension

4) Computers are only part of an information system.
Answer: TRUE
Diff: 1 Page Ref: 15
AACSB: Use of IT
CASE: Comprehension

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: Use of IT
CASE: Comprehension

6) The dimensions of information systems are people, organizations, and information technology.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Use of IT
CASE: Comprehension

,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: Use of IT
CASE: Comprehension

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: Reflective Thinking
CASE: Comprehension

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: Reflective Thinking
CASE: Comprehension

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: 17
AACSB: Use of IT
CASE: Comprehension

11) A network requires at least three computers and a shared resource.
Answer: FALSE
Diff: 2 Page Ref: 17
AACSB: Use of IT
CASE: Comprehension

12) An IT infrastructure provides the platform on which the firm can build its information
systems.
Answer: TRUE
Diff: 1 Page Ref: 18
AACSB: Use of IT
CASE: Comprehension

,13) UPS's use of Web-based tools that allow customers to embed UPS functions, such as tracking
and cost calculations, into their own Web sites was an information systems solution used to
achieve customer intimacy.
Answer: TRUE
Diff: 3 Page Ref: 19
AACSB: Analytic Skills
CASE: Comprehension

14) Identifying a problem includes agreeing that a problem exists.
Answer: TRUE
Diff: 1 Page Ref: 21
AACSB: Reflective Thinking
CASE: Comprehension

15) Political conflict is an example of the people dimension of business problems.
Answer: FALSE
Diff: 3 Page Ref: 22
AACSB: Reflective Thinking
CASE: Comprehension

16) As a result of new public laws, accountants are beginning to perform more technical duties,
such as auditing systems and networks.
Answer: TRUE
Diff: 2 Page Ref: 25
AACSB: Use of IT
CASE: Comprehension

17) As described in the opening case of the chapter, Disney is implementing new information
systems in order to create new products, games, and rides.
Answer: FALSE
Diff: 2 Page Ref: 3
AACSB: Reflective Thinking
CASE: Comprehension

18) An understanding of enterprise-wide systems for customer relationship management is one of
the skills relevant to careers in marketing.
Answer: TRUE
Diff: 2 Page Ref: 26
AACSB: Use of IT
CASE: Comprehension

19) Whereas marketing and financial careers have been transformed by the growth in
information systems, management has—so far—remained relatively unaffected.
Answer: FALSE
Diff: 2 Page Ref: 26
AACSB: Use of IT
CASE: Comprehension

, 20) There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
Answer: FALSE
Diff: 2 Page Ref: 27
AACSB: Reflective Thinking
CASE: Comprehension

21) As discussed in the chapter opening case, Disney's implementation of new information
systems in their amusement parks can be seen as an effort to achieve which of the primary
business objectives?
A) Customer and supplier intimacy
B) Improved decision making
C) Operational excellence
D) New products and services
Answer: A
Diff: 3 Page Ref: 4
AACSB: Analytic Skills
CASE: Analysis in terms of categorize

22) Journalist Thomas Friedman's description of the world as "flat" referred to:
A) the flattening of economic and cultural advantages of developed countries.
B) the use of the Internet and technology for instantaneous communication.
C) the reduction in travel times and the ubiquity of global exchange and travel.
D) the growth of globalization.
Answer: A
Diff: 2 Page Ref: 10
AACSB: Reflective Thinking
CASE: Comprehension

23) The six important business objectives of information technology are: new products, services,
and business models; customer and supplier intimacy; improved decision making; competitive
advantage; operational excellence, and:
A) flexibility.
B) survival.
C) improved business practices.
D) improved efficiency.
Answer: B
Diff: 2 Page Ref: 11
AACSB: Use of IT
CASE: Comprehension

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