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True or False

Purchase of information systems and telecommunications equipment constituted more than half off all capital investment in the United States in 2013.
True
A business model describes how a company produces, delivers, and sells a product or service to create wealth.
True
Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.
False
An extranet is a private intranet extended to authorized users outside the organization.
True
Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.
False
The dimensions of information systems are people, organizations, and information technology.
True
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.
True
Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.
True
Business processes are those logically related task for accomplishing tasks that have been formally encoded by an organization.
False
Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.
True
A network requires at least three computers and a shared resource.
False
An IT infrastructure provides the platform on which the firm can build its information systems.
True
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.
True
Identifying a problem includes agreeing that a problem exists.
True
Political conflict is an example of the people dimension of business problems.
False
As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.
True
IT managerial jobs are outsourced easily because of the universal standards used by the Internet.
False
An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.
True
Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
False
There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
False
Senior management is responsible for directing the day-to-day activities of the business.
False
Operational-level manufacturing systems deal with the firm’s long-term manufacturing goals, such as where to locate a new plant.
False
Transaction processing systems are most commonly encountered at the senior management level of an organization.
False
TPS help managers monitor the firm’s relations with the external environment.
True
A hotel reservation system is a typical example of a management information system.
False
The decision to grant credit to a customer is normally made by a senior manager.
False
Transaction processing systems are the basic business systems that serve the operational level of the organization.
True
Management information systems primarily support nonroutine decision making.
Fasle
Most MISs use sophisticated mathematical models or statistical techniques.
False
Deciding whether to introduce a new product line is the responsibility of an operational manager.
False
Decision-support systems often use information from external sources.
True
ESSs are designed to serve the middle management of the organization.
False
ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
True
ESSs are desgined primarily to solve specific problems.
False
Information supplied by an enterprise system is structured around cross-functional business process.
True
Supply chain management systems are more externally oriented than enterprise systems.
True
A business is a formal or informal organization created to sell services or products.
False
Enterprise systems do not utilize order transaction data
False
Teams are formal business groups that are created to accomplish a specific task.
True
A business process is a single step taken in a set of logically related activities that accomplish a specific business task.
False
A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
True
A primary challenge in BPM is employee resistance.
True
Customers are one of the competitive forces that affect an organization’s ability to compete.
True
A transparent marketplace means that there is high product differentiation.
False
Studies show that about half of a business firm’s profits can be explained by alignment of IT with business.
True
The greatest barrier to changing business processes is, ironically, management itself.
False
In the strategy of product differentiation, information systems are used to enable new products and services.
True
BPM is considered concluded when the new processes are both implemented and accepted.
False
Strong linkages to customers and suppliers increase switching costs.
True
The effect of the Internet has been to raise bargaining power over suppliers.
True
In the age of the Internet, Porter’s traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
True
In the value chain model, primary activities are most directly related to the production and distribution of the firm’s products and services that create value for the customer.
True
The value chain model classifies all company activities as either primary or support.
True
The idea of driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.
True
The law of diminishing returns always applies to digital, as well as traditional products.
False
The more people that use Microsoft Office software and related products, the lower its value.
False
The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
False
Probably the best single way to reduce quality problems is to reduce cycle time.
True
Business process re-engineering is the radical redesign of business processes.
True
Benchmarks are specific standards for business processes set by industry leaders.
False
IT infrastructure technology is the set of physical devices required to operate the entire enterprise.
False
Today, most system and application software is custom built by in-house programmers.
False
Systems integration means ensuring the legacy systems work with new elements of the infrastructure.
True
A mainframe is a type of legacy workstation.
False
Client/server computing is the most widely used form of centralized processing.
False
Application server software is responsible for locating and managing stored Web pages.
False
Using an online storage service such as Drop Box is a type of virtualization.
False
In cloud computing, rapid elasticity refers to the ability of computing resources to be quickly altered to meet demand.
True
A private cloud is operated by a single organization but may be manage by a third party and be located off premises.
True
A computer language translation program is an example of system software.
True
Hypertext markup language specifies how text, graphics, video, and sound are place on a document.
True
HTML5 is the latest evolution of HTML, and is designed to make it much easier to embed third-party add-ons, such as Flash animations, in web pages.
False
Web services can exchange information between two different systems regardless of the operating system or programming languages on which the systems are based.
True
XML is limited to describing how data should be presented in the form of Web pages; HTML can perform presentation, communication, and storage of data.
False
The collection of Web services that are used to build a firm’s software systems constitutes what is known as a service-oriented architecture.
True
SaaS providers deliver and provide Web-based, remote access to storage.
False
Allowing departments to make their own software and hardware purchases increases efficiency and minimizes the need for centralized support.
False
Total cost of ownership components include costs for downtime, training, and support.
True
One of the main benefits of moving to mobile business computing platforms is the dramatically lower costs of hardware.
False
Software localization refers to the entire process of converting software to operate in a second language.
True
Telephone networks are fundamentally different from computer networks.
True
Increasingly, voice, video, and data communications are all based on Internet technology.
True
To create a computer network, you must have at least two computers.
True
An NOS mus reside on a dedicated server computer in order to manage a network.
False
A hub is a networking device that connects network components and is used to filter and forward data to specified destinations on the network.
False
In a client/server network, a network server provides every connected client with an address so it can be found by others on the network.
True
Central large mainframe computing has largely replaced client/server computing.
False
Circuit switching makes much more efficient use of the communications capacity of a network than does packet switching.
False
Mobile search makes up approximately 10% of all Internet searches.
False
Two computers using TCP/IP can communicate even if they are based on different hardware and software platforms.
True
In blogging, a trackback is a list of entries in other blogs that refer to a post in the first blog.
True
Coaxial cable is similar to that used for cable television and consists of thickly insulated copper wire.
True
Fiber-optic cable is more expensive and harder to install than wire media.
True
The number of cycles per second that can be sent through any telecommunications medium is measured in kilobytes.
False
The Domain Name System (DNS) converts domain names to IP addresses.
True
VoIP technology delivers voice information to digital form using packet switching.
True
Web 3.0 is a collaborative effort to add a layer of meaning to the existing Web in order to reduce the amount of human involvement in searching for and processing Web information.
True
In a large company today, you will often find an infrastructure that includes hundreds of small LANs linked to each other as well as corporate-wide networks.
True
TCP/IP was developed in the 1960s to enable university scientists to transmit data from computer to computer.
False
RFID technology is being gradually replaced by less costly technologies such as WSNs.
False
Enterprise systems include analytical tools.
True
Supply chain management systems are a type of enterprise system.
False
An enterprise system helps reduce redundant business processes.
False
The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
False
Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.
True
Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
False
The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.
True
Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
False
In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.
True
Inefficiencies in a supply chain are primarily caused by inaccurate information.
True
It can cost six times more to sell a product to a new customer than to an existing customer.
True
In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
False
Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model.
True
Total supply chain costs in some industries approach 75 percent of the total operating budget.
True
All CRM packages contain modules for PRM and ERM.
False
Major CRM application software vendors include Oracle and SAP.
True
Cross-selling markets complementary products to customers.
True
CRM software can help organizations identify high-value customers for preferential treatments.
True
Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm’s customer touch points and from other sources.
True
Enterprise systems require fundamental changes in the way the business operates.
True
A company’s supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.
True
To model its existing supply chain and develop optimal manufacturing plans, a firm would implement a supply chain execution system.
False
With new flows of information made possible by Web-based tools, supply chain management can more easily follow a push-based model.
False
The downstream portion of the supply chain includes retailers and customers.
True
A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.
False
A router is a device that forwards packets of data through different networks, ensuring that the data gets to the right address.
True
An analog signal is a discrete, binary waveform that transmits data coded into two discrete states such as 1-bits and 0-bits.
False
Today, most Americans connect to the Internet through broadband connections at speeds up to 15 Mbps.
True
fAn ISP is a commercial organization that owns a region of transcontinental high-speed backbone networks carrying the bulk of Internet traffic.
False
The trunk lines of the Internet are typically owned by network service providers.
True
A Web server is a dedicated computer that delivers Web pages to client computers.
False
A software package for mainframe requires a programmer to install it.
True
Web browsers are the primary interface for accessing the Internet.
True
XML provides a standard format for data exchange, enabling Web services to pass data from one process to another.
True
An SaaS provider maintains a large Web server, or series of servers, and provides fee-paying subscribers with space to maintain their Web sites.
False
Mass customization allows a company to offer individually tailored products using the same production resources as mass production.
True
A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
True
The activities that measure the performance of your business processes against strict standards are called best practices.
False
A micromultinational is a small firm operating on a global scale.
True
Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources.
True
Quality control is seen as an end in itself in Six Sigma.
False
In some instances, BPM will lead to a paradigm shift that transforms the nature of the business itself.
False
The primary goal of social business is to deepen interactions with employees and customers.
True
A cross-functional business process requires information to be shared between different business departments.
True
Knowledge management systems and customer relationship management systems are both types of enterprise applications.
(true/false)
True
Systems analysts are highly trained technical specialists who write the software instructions for computers.
False
End users are representatives of departments outside of the information systems group for whom applications are developed.
True
Data is information that has been shaped into a form that is meaningful to human beings.
False
Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
True
Intranets are private corporate networks extended to authorized users outside the organization.
False
Large corporations have been slow to adopt mobile computing as a platform.
False
Encouraging employees to adapt to new business processes is an important factor in change management.
True

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