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Learning Objectives: 13.1 Explain how businesses benefit from the use of information technology (IT). 13.2 Describe the components that enable IT networks, hardware and software. 13.3 Understand how MIS systems are used by managers. 13.4 Identify appropriate uses of business software applications. 13.5 Describe how e-commerce can create a competitive advantage. 13.6 Discuss the challenges IT systems pose to managers. Quick answer key: Question # Multiple Choice True/False 1 B True 2 A True 3 D False 4 C True 5 C True 6 A False 7 D True 8 D False 9 C False 10 B True 11 B False 1
12 D True 13 A False 14 B True 15 D True 16 B False 17 C False 18 C True 19 D False 20 B True 21 B True 22 C False 23 A False 24 True 25 True 26 True 27 False 28 True 2
Multiple Choice Questions: 1. What is the difference between information technology (IT) and a management information system (MIS)? A) IT is a type of MIS B) MIS is a type of IT C) IT and MIS are the same D) IT is hardware and MIS is software Learning Objective 13.1 Answer B 2. What is a manager s primary use of a MIS? A) to facilitate problem solving and decision making B) to facilitate quality control C) to monitor inventory D) to evaluate productivity Answer A 3. Which of the following identifies the input and output of a MIS? A) input = information; output = decisions B) input = information; output = data C) input = data; output =decisions D) input = data; output = information Answer D 3
4. An automated teller machine (ATM) is an example of which type of MIS? A) expert system B) operations information system C) transaction processing system D) decision support system Answer C 5. Which component of a computer system is responsible for executing software instructions? A) input device B) operating system C) central processing unit D) primary storage Answer C 6. Which of the following networks is the most secure? A) intranet B) extranet C) cloud D) wireless Answer A 7. Which software application would be best to use to perform and analyze calculations on production data? A) accounting B) presentation C) database D) spreadsheet Answer D 4
8. What type of e-commerce occurs when WalMart buys merchandise from a supplier over the Internet? A) B2C B) C2C C) C2B D) B2B Learning Objective 13.5 Answer D 9. Which of the following threatens information security? A) authentication B) encryption C) viruses D) cookies Learning Objective 13.6 Answer C 10. Which of the following would best protect a business against unethical computer use? A) information privacy policy B) computer use policy C) email policy D) internet use policy Learning Objective 13.6 Answer B 11. Which of the following best defines a set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information? A) management information system (MIS) B) information technology C) data mining D) decision support system Learning Objective 13.1 Answer B 5
12. Which of the following best describes the type of system that gathers, organizes, and summarizes data in a form that is valuable to managers? A) transaction processing system B) expert system C) decision support system D) operations information system Answer D 13. Which of the following best describes a private, company wide network, closed to public access? A) intranet B) extranet C) virtual private network D) cloud computing Answer A 14. Which of the following best describes a semiprivate network that uses Internet technology and allows more than one company to access the same information? A) intranet B) extranet C) virtual private network D) cloud computing Answer B 6
15. Which of the following best describes a network in which a company s data and applications are stored at offsite data centers that are accessed over the Internet? A) intranet B) extranet C) virtual private network D) cloud computing Answer D 16. What is the difference between hardware and software? A) Hardware is the set of programs and procedures used to operate a computer, while software is the physical devices associated with computing. B) Hardware is the physical devices associated with computing, while software is the set of programs and procedures used to operate a computer. C) Hardware is a set of applications that control how technology tools work together, while software is a set of applications that tell a computer how to process information. D) Hardware is a set of applications that tell a computer how to process information, while software is a set of applications that control how technology tools work together. Answer B 17. Which of the following best describes the type of system software that provides additional functionality to the operating system for a specific purpose? A) application software B) hardware C) utility software D) shareware Answer C 7
18. What is the difference between freeware and shareware? A) Freeware controls application software, while shareware provides additional information for application software to process. B) Shareware controls application software, while freeware provides additional information to application software to process. C) Freeware is software that is absolutely free for the taking, while shareware is copyrighted, but distributed free of charge. D) Freeware is copyrighted software that is distributed free of charge, while shareware is software that is absolutely free for the taking. Answer C 19. What are the four types of e-commerce transactions? A) business-to-business (B2B), business-to-consumer (B2C), manufacturer-tobusiness (M2B), and manufacturer to consumer (M2C) B) manufacturer-to-business (M2B), manufacturer-to-consumer (M2C), consumerto-business (C2B), and consumer-to-consumer (C2C) C) business-to-business (B2B), business-to-consumer (B2C), supplier-to-business (S2B), and supplier-to-consumer (S2C) D) business-to-business (B2B), business-to-consumer (B2C), consumer-tobusiness (C2B), and consumer-to-consumer (C2C) Learning Objective 13.5 Answer D 20. Which of the following types of e-commerce transactions is expected to increase over the next several years due to customer s desire for greater purchasing convenience and lower prices? A) business-to-consumer (B2C) B) consumer-to-business (C2B) C) manufacturer-to-business (M2B) D) supplier-to-business (S2B) Learning Objective 13.5 Answer B 8
21. Which of the following types of e-commerce transactions is ebay.com, Craigslist, and Amazon.com s marketplace an example of? A) business-to-business (B2B) B) consumer-to-consumer (C2C) C) manufacturer-to-consumer (M2C) D) supplier-to-consumer (S2C) Learning Objective 13.5 Answer B 22. Which type of technology security relates to logins used to access a network? A) encryption B) firewall C) authentication D) identity protection Learning Objective 13.6 Answer C 23. Which of the following online security threats requests personal information be returned to the sender? A) phishing B) worm C) trojan horse D) email scam Learning Objective 13.6 Answer A 9
True/false Questions: 1. Information technology is the set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information. Learning Objective 13.1 2. Management information systems (MIS) are specific forms of IT that managers utilize to generate the specific, detailed information they need to perform their roles effectively. 3. Data mining is processed data that is output for a MIS. 4. Transaction processing systems are used to obtain sales, inventory, accounting and other performance related information. 5. Decision support systems are systems that provide models that aid managers in making nonprogrammed or atypical decisions. 10
6. For information to be useful to managers it must possess four characteristics: usefulness, completeness, timeliness, and relevance. 7. A network is a system for data exchange and resource sharing by linking computers to a central database. 8. To be considered a network, there must be at least 3 or more computers linked. 9. A wide area network (WAN) is a group of computers in close proximity, such as an office building. 10. The Internet is the world s largest network. 11. One of the slowest forms of high speed Internet is wireless (LMCS). 11
12. An intranet is a company-wide network, closed to public access, that uses Internet-type technology. 13. An extranet is a private data network that creates secure connections over regular Internet lines. 14. Extranets are less secure than intranets, but more secure than public accessed networks. 15. A cloud computing network stores a company s data and applications at one or more offsite data centers that are accessed through the Internet. 16. Wireless and mobile are synonymous, in that it means technology can travel with the user who can use the technology to download software, email, and web pages. 17. VoIP is the Internet infrastructure that is used to route emails over the Internet. 12
18. RFID tags are electronic chips placed on goods to relay information, such as location, to electronic readers. 19. The primary storage or computer s main memory interprets and executes software instructions. 20. Secondary storage is removable hardware used to store data for long-term storage or portability. 21. An output device is hardware used to see, hear, or accept the results of information processing requests. 22. An input device is hardware used to send information from one location and receive it at another. 23. System software is the set of instructions that tell a computer how to process information for a specific purpose. 13
24. Shareware is copyrighted software that is distributed free of charge to potential customers. 25. E-commerce is the buying and selling of goods over the Internet. Learning Objective 13.5 26. A social network is an Internet site that facilitates relationships among people and businesses. Learning Objective 13.6 27. Encryption analyzes information entering and leaving a network and prevents transmission of information without proper markings. Learning Objective 13.6 28. Cyberterrorism is an extreme form of hacking. Learning Objective 13.6 14
Short Answer questions: 1. What are the four classifications of MIS systems? Answer The four classifications of MIS systems are transaction-processing systems, operations information systems, decision support systems, and expert systems. 2. Explain the differences between an intranet and extranet. Answer An intranet is a company-wide network, closed to public access that used Internet-type technology. An extranet is a semiprivate network that uses Internet technology and allows more than one company to access the same information. 3. Explain the differences between hardware and software. Answer Hardware is the physical devices associated with computing that include computers, printers, laptops, smart phones, and more. Software is a set of programs and procedures used to operate hardware and perform specific tasks. 4. Describe what input, output, and communication devices are, and give examples of each. Answer An input device is hardware used to capture information and commands. Keyboards, mouse, and scanner are popular input devices. An output device is hardware used to see, hear, or accept results of information processing requests. Printers and monitors are common output devices. Communication devices are hardware used to send information from one location and receive it at another. Modems, broadband, DSL lines are popular communication devices. 15
5. What are the four types of e-commerce transactions? Answer The four types e-commerce transactions are business-to-business (B2B), business-to-consumer (B2C), consumer-to-business (C2B), and consumer-to-consumer (C2C). 6. What are the steps to minimize the threat of a computer or network virus infection? Answer The following steps should be taken to minimize the threat of a virus: Use a high quality antivirus program and keep it up-to-date to detect new viruses. If you use public domain software, scan the software using an antivirus program before using it. Scan shared file storage devices, such as CDs, USP flash drives, external drives, and memory cards. Download files only from known sources and scan Internet downloads and email attachments with an antivirus program. 16