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 Page Reference: 10-11 Difficulty: Moderate CABS: use of IT 4. Computers are only part of an Information system Answer: True Page Reference: 12 Difficulty: Easy 5. Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.

Answer: False Page Reference: 13 Difficulty: Easy 6. The dimensions of information systems are people, organizations, and information technology. Answer: True Page Reference: 13 Difficulty: Easy 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. 8. Developing a new product, fulfilling an order, or hiring a new employee are examples of business processes. Answer: True Page Reference: 14 Difficulty: Easy CABS: Reflective Thinking 9.

Business processes are those logically related tasks for accomplishing tasks that have been formally encoded by an organization. Answer: False Page Reference: 14 Difficulty: Moderate 10. Employee attitudes about their Jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively. 11. A network requires at least three computers and a shared resource. Answer: False Page Reference: 15 Difficulty: Moderate 12. . An IT infrastructure provides the platform on which the firm can build its information systems.

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Answer: True Page Reference: 15 Difficulty: Easy 13. (Analysis) Pup’s use of Web-based tools that allow customers to embed UPS functions such as racking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. Answer: True Page Reference: 16 Difficulty: Hard CASE: Analysis in terms of categorize 14. Identifying a problem includes agreeing that a problem exists. Answer: True Page Reference: 18 Difficulty: Easy 15. Political conflict is an example of the people dimension of business problems. Answer: False Page Reference: 20 Difficulty: Hard 16.

There is no way that firms today can perform even basic accounting functions without extensive investment in systems. Answer: True Page Reference: 24 Difficulty: Moderate 17. Forensic accounting is used to investigate bankruptcies and contract disputes. 18. An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing. Answer: True Page Reference: 26 Difficulty: Moderate 19. Whereas marketing and financial careers have been transformed by the growth in information systems, management has-?so far-?remained relatively unaffected.

Answer: False Page Reference: 26 Difficulty: Moderate 20. There are two types of outsourcing: offshore outsourcing and foreign outsourcing. Answer: False Page Reference: 27 Difficulty: Moderate Multiple Choice Questions 21. As discussed in the chapter opening case, the Nab’s use of game video clips tagged to statistical information can be seen as an effort to achieve which of the primary business objectives? A. New products, services, and business models b. Customer and supplier intimacy c. Improved decision making d. Operational excellence Answer: c Page Reference: 3 CABS: Analytic Skills Difficulty.

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