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Rainer, Information System, Third Canadian Edition Testbank

Chapter 1
Introduction to Information Systems

Question type: True/False

1) Managing the IS function within an organization is the exclusive responsibility of the IS


department in contemporary organizations.

Answer: False

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

2) An information system collects, processes, stores, analyzes, and disseminates information for
a specific purpose.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

3) Information technology relates to any computer-based tools that people use to work with
information and to support the information and information-processing needs of an
organization.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: Opening Case 1.1: Will Blackberry survive?
Difficulty: easy

4) IT is enabling more and more people to communicate, collaborate, and compete, thereby
leveling the digital playing field.
Rainer, Information System, Third Canadian Edition Testbank

Answer: True

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Learning Objective: Identify three ways in which you depend on information technology in your
daily life.
Section Reference: Opening Case: Case 1.1: Will Blackberry survive?
Difficulty: Easy

5) An organization must be large to benefit from IT.

Answer: False

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Learning Objective: Identify three ways in which you depend on information technology in your
daily life.
Section Reference: Opening Case: Case 1.1: Will Blackberry survive?
Difficulty: Easy

6) An informed user of IT can enhance his or her organization’s competitive position.

Answer: True

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

7) If you want to run a multinational company, you need to rent office space and hire at least
few employees.

Answer: False

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

8) A systems analyst focuses on determining the information requirements and technical


specifications for new applications.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

9) An auditing manager focuses on the ethical and legal use of information systems and
evaluates the quality or effectiveness of such systems.

Answer: True

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

10) The CIO of an organization supervises the day-to-day operations of the data and/or
computer centre.

Answer: False

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

11) The Emerging Technologies Manager forecasts technology trends; evaluates and
experiments with new technologies.

Answer: True

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

12) End-user computing has two components: end-user data entry, reporting, and inquiry
(commonly referred to as simply users); and end-user development, where users develop usable
systems, such as spreadsheets or programs using programming languages or other development
tools.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

13) Information technology and information systems are the same thing.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

14) In general, informed users tend to get more value from whatever technologies they use.

Answer: True

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

15) The grade point average (GPA) values of a class would be considered as information.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

16) The grade point average (GPA) values coupled with appropriate student names of a class
would be considered as information.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

17) A university registrar who uses her experience with university admissions in reviewing the
applicant grades, application essays, and letters of recommendation, would be applying her
knowledge in your application process.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

18) A list of football scores with the names of the teams that played the games would be
considered information.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

19) The Information Systems functional area, a department of Information technology, deals
with the planning, development, management, and use of management information tools to
help people perform all the tasks related to information processing and management.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

20) A student’s decision to drop one course and add another would be considered a transaction
to the university’s information system but not to its accounting system.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

21) The Supply Chain Management system is an interorganizational information system.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

22) An Electronic Commerce (e-Commerce) system is an intraorganizational information system.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

23) An organization’s supply chain starts at the supplier and ends at the customer.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

24) E-commerce systems are a type of interorganizational information systems.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

25) An organization’s IT infrastructure consists of the IT components and IT services.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

26) IT personnel use the IT infrastructure to develop information systems.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

27) Meaningful knowledge is information and meaningful information is data.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

28) Information is data that have been organized so that they have meaning to provide value to
the recipient.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

29) Knowledge is data that have been organized so that they have meaning to provide value to
the recipient.

Answer: False

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

30) Knowledge is data and information that have been organized and processed to convey
understanding, experience, accumulated learning, and expertise applied to a current problem.

Answer: True

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

31) Digital dashboards are special information systems that that support all managers of the
organization.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

32) IT only positively affects our quality of life.

Answer: False

Learning Objective: Provide three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section 1.4: Importance of Information Systems to Society
Difficulty: Easy

Question Type: Multiple Choice

33) Which of the following is a benefit of being an informed user of IT?

a) Understanding what is “behind” applications you use in your organization


b) Providing input to enhance your organization’s applications
c) Helping to select new applications
d) Keeping abreast of new technologies
e) All of the above

Answer: e

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

34) You should seek to be an informed user of IT because ____________.

a) it is easy to understand how IT works


b) you could end up working in the IT department in your organization
c) everyone uses IT
d) you will be in a position to enhance the quality of IT applications

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

35) The title of the executive who is in charge of the people, who design and build information
systems, the people who use those systems, and the people responsible for managing those
systems is the

a) CEO
b) CFO
c) CIO
d) CIS
e) CIT

Answer: c

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

36) What does a systems analyst do?

a) Manages an IS service
b) Writes computer code.
c) Determines information requirements and technical specifications for new applications.
d) Forecasts technology trends
e) Creates Web sites and pages

Answer: c

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

37) An emerging technologies manager _____.

a) forecasts evaluates new technologies


b) manages data networks
c) manages the ethical and legal use of information systems
d) is responsible for strategic planning
e) creates the Web sites and pages
Rainer, Information System, Third Canadian Edition Testbank

Answer: a

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

38) Which of the following statements concerning the complexity of management of


information resources is not true?

a) Information systems have an enormous strategic value within an organization and therefore
firms rely on them heavily.
b) Information systems are expensive to acquire, operate, and maintain.
c) Computers are decentralized throughout the organization, which makes it harder to manage.
d) Managing mainframes has become more difficult.
e) Managing information resources is divided between the MIS department and end users and
there is no standard way to divide responsibility between them.

Answer: d

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

39) _________ is a traditional function of the MIS Department.

a) Managing system integration including the Internet, intranets, and extranets


b) Educating the non-MIS managers about IT
c) Providing technical services
d) Creating business alliances with business partners

Answer: c

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

40) Which of the following is the correct hierarchy from the lowest level to the highest level?

a) knowledge, information, data


b) information, data, knowledge
Rainer, Information System, Third Canadian Edition Testbank

c) data, information, knowledge


d) data, experience, information
e) information, experience, wisdom

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

41) _____ conveys understanding, accumulated learning, and expertise as they apply to a
current problem.

a) Data
b) Information
c) Knowledge
d) Database
e) None of the above

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

42) _____ is (are) data that have been organized to have meaning and value to a recipient.

a) Insights
b) Information
c) Knowledge
d) Experience
e) Wisdom

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 1.2 Overview of Computer-Based Information Systems


Difficulty: Easy

43) Who manages all systems throughout the organization and the day-to-day operations of the
entire IS organization?

a) IS Director
b) Information center manager
c) Project Manager
d) Operations Manager
e) Programming manager

Answer: a

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

44) The Software Project Manager is responsible for:

a) strategic planning.
b) day-to-day operations of the entire organization.
c) manages IS services such as help desks, hot lines, training, and consulting.
d) manages a particular existing system.
e) manages a particular new systems development project.

Answer: e

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

45) The list of all your purchases from Amazon (books bought, price paid, dates) is defined as
___________.

a) data
b) information
c) knowledge
d) experience
e) wisdom

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

46) If Amazon uses a list of all your purchases (books bought, price paid, dates) to recommend
other books to you, then it is applying its _____.

a) data
b) information
c) knowledge
d) experience
e) wisdom

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

47) A listing of all courses offered at your university would be considered _____, whereas a
listing of all courses required in your major would be considered _____.

a) information, data
b) knowledge, information
c) information, knowledge
d) data, information
e) data, knowledge

Answer: d

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

48) You are registering for the next semester at your university. You take into account your
major, the courses you need, the prerequisites for each course, the times you take each course,
and the professors teaching each section, as well as your work schedule. You are using _____ to
select your class schedule.

a) information
b) knowledge
c) experience
d) wisdom
e) data

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

49) A purchase of books in the college bookstore is ___________. The report at the end of the
day showing sales totals for the day is ____________.

a) information, knowledge
b) information, data
c) data, information
d) data, database
e) data item, business intelligence

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

50) You have just been hired by the largest manufacturer in your area to join their management
trainee program. You enjoyed your “computer course” in college and hope that you’ll be able to
put that knowledge to good use. Which of the following might you expect to do during the
management training program?

a) Code a new application


b) Recommend new technologies that might impact the organization
Rainer, Information System, Third Canadian Edition Testbank

c) Design a new application


d) Become familiar with tools to support using data for decision making
e) Work 9-5 in your office.

Answer: d

Learning Objective: Provide three ways in which information technology can impact
managers and three ways it can impact non-managerial workers.
Section Reference: How Does IT Impact Organizations?
Difficulty: Medium

51) As a manager in your company, you expect to retrieve ______ from operational systems and
present it as _________ to your boss, who will react based on his ____________.

a) knowledge, information, data


b) information, data, knowledge
c) data, information, knowledge
d) data, experience, information
e) information, experience, wisdom

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

52) In your new position, you are told that you will be working with a business analyst. What
would you expect this work to entail?

a) Review computer code.


b) Explain the business process
c) Test programs
d) Identify new technology that might benefit the organization
e) Create Web sites and pages

Answer: b

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

53) An organization’s IT components include all of the following except:

a) a network.
b) programs
c) procedures
d) a database
e) monitors

Answer: c

Learning Objective1: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

54) A(n) _____________ is a computer program designed to support a specific task or business
process.

a) Interface
b) Application
c) Functional area
d) Network
e) Database

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

55) _____ is/are the computer hardware, software, and communications technologies that are
used by IT personnel to produce IT services.

a) IT components
b) IT services
c) Information technology
d) An information system
e) A computer-based information system
Rainer, Information System, Third Canadian Edition Testbank

Answer: a

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

56) An organization’s _____ consists of the physical facilities, IT components, IT services, and IT
management that will support the entire organization.

a) information technology architecture


b) information technology infrastructure
c) information technology
d) information system
e) computer-based information system

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Easy

57) IT personnel use _____ to develop _____.

a) IT components, IT services
b) computer-based information systems, IT architecture
c) IT infrastructure, IT architecture
d) IT infrastructure, IT platform
e) IT components, IT architecture

Answer: a

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

58) The IT infrastructure is comprised of _______ and ________.

a) IT components, IT personnel
b) IT components, IT services
c) IT services, IT personnel
d) IT personnel, computer-based information systems
e) Computer-based information systems, IT personnel

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

59) Which of the following statements is false?

a) An application is a computer program designed to support a specific business process.


b) Each functional area within an organization has only one application.
c) A functional area information system is the same as a departmental information system.
d) A functional area information system can obtain data from other functional area information
systems.
e) App, application, and application program all mean the same thing.

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

60) Enterprise resource planning systems:

a) were designed to process transactions faster.


b) evolved because newer technologies made older systems obsolete.
c) use a common database for all functional areas.
d) are utilized to conduct site analyses.
e) All the above statements are true.

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

61) Knowledge workers:

a) handle day-to-day operations within an organization.


b) make tactical decisions.
c) advise middle managers
d) make routine decisions.
e) are generalists

Answer: c

Learning Objective1: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

62) Office automation systems:

a) support only the clerical staff.


b) are comprised of software that is only used to develop documents and spreadsheets
c) include report generators.
d) are a type of interorganizational system.
e) are usually developed in-house.

Answer: c

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Hard

63) ___________ include B2B and B2C.

a) Enterprise resource planning systems


Rainer, Information System, Third Canadian Edition Testbank

b) Computer-based information systems


c) Functional area information systems
d) Intraorganizational information systems

Answer: a

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

64) Which of the following statements is false?

a) IT ultimately decreases the number of managers and experts.


b) IT makes managers more productive.
c) IT increases the number of employees who can report to a single manager.
d) IT reduces stress by giving managers more time to make decisions.
e) IT decreases the number of promotional opportunities.

Answer: d

Learning Objective: Discuss three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How Does IT Impact Organizations?
Difficulty: Medium

65) Which of the following statements about the potential impact of IT on non-managerial
workers is true?

a) IT will create more jobs than it eliminates.


b) Employees will feel a higher degree of loyalty towards their company.
c) IT could cause employees to experience a loss of identity.
d) The flexibility of IT can minimize stress on the job.

Answer: c

Learning Objective: Discuss three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How Does IT Impact Organizations?
Difficulty: Medium

66) Which of the following statements about your future role as a manager is false?
Rainer, Information System, Third Canadian Edition Testbank

a) The people I manage will likely be dispersed geographically.


b) The size of my team will likely be smaller than teams of today.
c) There will be less emphasis on office politics.
d) Many of my decisions will be “real time”.
e) I will need IT tools to handle the data I utilize to make decisions.

Answer: b

Learning Objective: Discuss three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How Does IT Impact Organizations?
Difficulty: Medium

67) Which of the following statements about IT’s role in society is false?

a) IT has created employee flexibility.


b) Robots can do many routine tasks.
c) Robots can handle unfamiliar situations.
d) IT can be used to help doctors diagnose diseases.
e) Telepresence robots can act as the eyes and ears of a business manager.

Answer: c

Learning Objective: List three positive and three negative societal effects of the increased use of
information technology.
Section Reference: 1.4 Importance of Information Systems to Society
Difficulty: Medium

68) Refer to Opening Case – Will Blackberry Survive? – Which of the following is true?

a) rapid changes in information technology can make products obsolete quickly.


b) IT is making our world smaller.
c) success of a smart phone depends on the number of apps developed.
d) rapid changes in information technology can drive non-responsive businesses to the brink of
destruction.
e) All of the above.

Answer: e

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Learning Objective: Identify three ways in which you depend on information technology in your
daily life.
Section Reference: Opening Case: Will Blackberry Survive?
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

69) Refer to IT’s About Business: 1.1 – E-Mealz: Which of the following statements is false?

a) Jane could run E-Mealz just as efficiency without technology.


b) Jane uses social network sites to promote her business.
c) Customers can submit recipes to E-Mealz’s database.
d) Customers receive a weekly meal plan and grocery list.
e) E-Mealz provides nutritional information.

Answer: a

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Learning Objective: Identify three ways in which you depend on information technology in your
daily life.
Section Reference: IT’s About Small Business 1.1: E-Mealz
Difficulty: Medium

70) Refer to IT’s About Business Section Reference: 1.2 – Build Your Own Multinational
Company: A digital nomad is

a) someone who moves from office to office.


b) someone who uses IT to work remotely.
c) someone who lives outside Canada.
d) someone who works anonymously.
e) someone who has no IT costs.

Answer: b

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: IT’s About Business 1.2
Difficulty: medium

71) Refer to IT’s About Business 1.3 – Electronic E-Discovery Software Replaces Lawyers: E-
discovery

a) is still largely in the experimental stage. involves analyzing files in a law firm.
b) searches vast numbers of documents for relevant information.
c) does not have any more features than a search engine.
d) cannot review e-mails or chat conversations.
e) cannot recognize changes in behavior.
Rainer, Information System, Third Canadian Edition Testbank

Answer: b

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: IT’s About Business 1.3
Difficulty: Medium

72) Refer to Closing Case – L’Oreal Retools its Information Systems – Which of the following was
not a consequence of integrating L’Oreal’s SAP ERP system with FLEXNet?

a) ISIS supports all faculty processes while promoting best practices.


b) Master data are stored in the company’s central headquarters.
c) Upgrades take much less time.
d) Quality control has improved.
e) Shop workers found the new system stressful.

Answer: e

Learning Objective: Provide three ways in which information technology can impact
managers and three ways it can impact non-managerial workers.
Section Reference: Closing Case: L’Oreal Retools Its Information Systems
Difficulty: Medium

Question Type: Short Answer

73) Differentiate between information systems and information technology.

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

74) Differentiate among data, information, and knowledge.

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

75) Differentiate between information technology and information technology infrastructure.

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

76) Discuss why information systems and information technologies are integral to your lives.

Learning Objective: Begin the process of becoming an informed user of your organization’s
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Medium

77) Discuss three ways in which information technology can impact managers.

Learning Objective: Discuss three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How Does IT Impact Organizations?
Difficulty: Medium

78) How does IT impact the health and safety of employees?

Learning Objective: Discuss three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How Does IT Impact Organizations?
Difficulty: Medium

79) Discuss three ways in which information technology can impact non-managerial workers.

Learning Objective: List three positive and three negative societal effects of the increased use of
information technology.
Section Reference: 1.4 Importance of Information Systems to Society
Difficulty: Medium

Question Type: Essay

80) Who is an informed user, and what are the benefits of being an informed user?
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

81) Distinguish among the career opportunities that IT offers.

Learning Objective: Begin the process of becoming an informed user of your organization's
information systems.
Section Reference: 1.1 Why Should I Study Information Systems?
Difficulty: Easy

82) Define the terms data, information, and knowledge, and provide examples of each one.

Learning Objective: Define the terms data, information, and knowledge, and give examples of
each.
Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

83) Distinguish between ERP and TPS; briefly detail how these systems support the entire
organization.

Learning Objective: Define the terms information technology, information system, computer-
based information system, and application.
Section Reference: 1.2 Overview of Computer-Based Information Systems
Difficulty: Medium

84) Briefly detail upon how IT impacts organizations.

Learning Objective: Identify three ways in which you depend on information technology in your
daily life.
Learning Objective: Provide three ways in which information technology can impact managers
and three ways in which it can impact non-managerial workers.
Section Reference: 1.3 How does IT impact organizations?
Difficulty: Medium

85) Discuss three positive and three negative societal effects of the increased use of information
technology.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: List three positive and three negative societal effects of the increased use of
information technology.
Section Reference: 1.4 Importance of Information Systems to Society
Difficulty: Medium

86) Explain how information technology impacts individuals, organizations, and the world.
Support your answer with concrete examples.

Learning Objective: Summarize the fundamental concepts and skills related to the impact of
information systems on individuals, organizations, and society.
Section Reference: Chapter 1
Difficulty: Medium

Legal Notice

Copyright © 2013 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.

The data contained in these files are protected by copyright. This manual is furnished
under licence and may be used only in accordance with the terms of such licence.

The material provided herein may not be downloaded, reproduced, stored in a retrieval
system, modified, made available on a network, used to create derivative works, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
Rainer, Information System, Third Canadian Edition Testbank

recording, scanning, or otherwise without the prior written permission of John Wiley &
Sons Canada, Ltd.
Rainer, Information System, Third Canadian Edition Testbank

Chapter 2
Organizational Strategy, Competitive Advantage, and Information Systems

Question Type: True/False

1) A business process has inputs and outputs.

Answer: True

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

2) A business process can be a liability.

Answer: True

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

3) The activities of a business process can be measured.

Answer: True

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

4) Cross-functional processes are business processes require the cooperation of multiple


functional areas.
Answer: True

Section: Business Processes


Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

5) Cross-functional processes are executed within a single functional area.


Rainer, Information System, Third Canadian Edition Testbank

Answer: False

Learning Objective:Understand the concept of business processes, and provide examples of


business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

6) The procurement process includes the sales function.

Answer: False

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

7) The long-term goal of business process management is to create a competitive advantage


through organizational flexibility.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.1 Business Processes
Difficulty: Medium

8) An organization’s business processes can create a competitive advantage.

Answer: True

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

9) A business process always includes information systems.

Answer: False

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

10) BPR is a strategy for improving the efficiency of an organization’s data collection.

Answer: False

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Medium

11) E-Commerce is the process of buying, selling, transferring, or exchanging products, services,
or information via computer networks, including the Internet.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.3.3 E-Business and E-Commerce
Difficulty: Easy

12) BPM is an implementation of BPR.

Answer: False

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Hard

13) BPM can improve an organization’s flexibility.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Medium

14) The overall performance of an organization has little to do with how well it manages its
business processes.

Answer: False

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Medium

15) Business process management includes methods and tools to support the design, analysis,
implementation, management, and optimization of business processes.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Easy

16) Differentiation is the result of optimizing the marketing and innovation processes.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Hard

17) Productivity is the result of optimizing operations and supplier processes.

Answer: False

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Difficulty: Hard

18) Customer satisfaction is the result of optimizing and aligning business processes to fulfill
customers’ needs, wants, and desires.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process
Difficulty: Hard

19) According to Friedman, the focus of Globalization 3.0 is on groups and individuals.

Answer: True

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.2 Business Process Reengineering and Business Process


Difficulty: Hard

20) The business environment refers to the industry that a company is in.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Medium

21) Globalization is the integration and interdependence of many facets of life made possible by
rapid advances in information technology.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

22) The information technology environment is the combination of social, legal, economic,
physical, and political factors that affect business activities.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

23) In general, labor costs are higher in countries than in developed countries.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

24) Developed countries usually provide greater fringe benefits than developing countries.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

25) Information technology is facilitating the entry of a wide variety of employees into the
workforce.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: Business Pressures, Organizational Responses, and Information Technology
Support
Difficulty: Easy

26) Internet access in Canada is not particularly related to household income.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

27) In general, government deregulation decreases competition.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

28) Ethical issues are important because, if handled poorly, they can damage an organization’s
image.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

29) Build-to-stock is a strategy of producing customized products and services.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

30) In mass production, a company produces a large quantity of identical items.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

31) In mass customization, companies produce items in large quantity, but they tailor the items
to meet the desires and needs of individual customers.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

32) Customer intimacy is the process whereby a business learns as much as possible about its
customers to better anticipate and address their needs.
Rainer, Information System, Third Canadian Edition Testbank

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

33) A growing IT initiative called green IT is enabling organizations to reduce their carbon
footprint.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

34) The digital divide is the gap between data and knowledge.

Answer: False

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

35) The One Laptop per Child project aims to use technology to revolutionize how the world can
educate its children.

Answer: True

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

36) Competitive advantage helps a company function effectively within a market and generate
larger-than-average profits.
Rainer, Information System, Third Canadian Edition Testbank

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

37) An information system that helps an organization gain a competitive advantage is called a
competitive information system.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

38) Every competitive organization is driven by the competitive forces identified by Michael
Porter.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

39) Michael Porter concludes that the overall impact of the Internet is to increase competition,
which generally diminishes a firm’s profitability.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

40) The Internet increases traditional barriers to entry into a market.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

41) The Internet decreases customers’ bargaining power.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

42) Information-based industries face the greatest threat from substitutes.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

43) The music industry is a good example of the extremely low variable costs of digital products.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

44) The internet impact on bargaining power of suppliers always favors buyers.

Answer: False

Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

45) The introduction of the ATM in the banking industry is an example of the innovation
strategy.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

46) An entry barrier is a long-term competitive advantage.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

47) The bargaining power of suppliers is low when their buyers have few choices.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

48) The bargaining power of suppliers is high when buyers have few choices and low when
buyers have many choices.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

49) When there are many substitute products, a company can create a competitive advantage
by increasing fees.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

50) Porter’s value chain model is a variation of his competitive advantage framework.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

51) The primary activities in the value chain create the value for which customers are willing to
pay.

Answer: True

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

52) It’s a good idea for a company to select two competitive advantage strategies.

Answer: False

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

53) With a competitive strategy, companies only need to plan their own moves.

Answer: False

Learning Objective1: Describe the strategies that organizations typically adopt to counter the
five competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

Question Type: Multiple Choice

54) Which of the following statements is false?

a) Competitive advantage is based on some measurement such as cost, quality, or speed.


b) Competitive advantage enables a company to function effectively within a market.
c) Competitive advantage leads to higher-than-average profits.
d) Competitive advantage requires the use of technology.
e) Competitive advantage applies to companies of all sizes.

Answer: d

Learning Objective: Provide a real-world application of how information systems can contribute
to organizational strategies and competitive advantage.
Section Reference: Opening Case: Double Trouble for BP
Difficulty: Easy

55) BP’s April 2010 oil spill revealed the following about their business processes:

a) BP continually ignored the automatic warnings provided by the drilling system.


b) BP seemed to neglect the fact that the information systems that support its drilling
operations are clearly just as strategic as the firm’s business information systems.
Rainer, Information System, Third Canadian Edition Testbank

c) BP was able to use IT to create millions of dollars in cost savings.


d) All of the above were revealed by the oil spill.

Answer: b

Learning Objective1: Provide a real-world application of how information systems can


contribute to organizational strategies and competitive advantage.
Section Reference: Opening Case: Double Trouble for BP
Difficulty: Medium

56) BP’s CIO was tasked with ______________.

a) Updating their IT systems


b) Getting more IT vendors to support their systems
c) Reducing the number of IT contractors
d) Replace SAP with a better system

Answer: c

Learning Objective: Provide a real-world application of how information systems can contribute
to organizational strategies and competitive advantage.
Section Reference: Opening Case: Double Trouble for BP
Difficulty: Medium

57) The term store power refers to:

a) The increased number of products.


b) The increased costs.
c) The increased customer traffic.
d) The increased sales force.

Answer: c

Learning Objective: Provide a real-world application of how information systems can contribute
to organizational strategies and competitive advantage.
Section Reference: IT’s About Small Business, Boosting Store Power
Difficulty: Medium

58) The store power can be significantly increased by:

a) Proper showcasing of products online.


b) Kijiji.
c) Craig list.
d) Sales force.
Rainer, Information System, Third Canadian Edition Testbank

Answer: a

Learning Objective: Provide a real-world application of how information systems can contribute
to organizational strategies and competitive advantage.
Section Reference: IT’s About Small Business, Boosting Store Power
Difficulty: Easy.

59) The following company focused on providing a platform to companies to proper showcasing
of their products.

a) Kijiji.com
b) CraigList.com
c) SalesForce.com
d) Shopcaster.com

Answer: d

Learning Objective: Provide a real-world application of how information systems can contribute
to organizational strategies and competitive advantage.
Section Reference: IT’s About Small Business, Boosting Store Power
Difficulty: Easy

60) Which of the following statements concerning business processes is false?

a) A process has inputs.


b) A process has outputs.
c) A process has activities that can be measured.
d) A process creates value.
e) A process cannot cross functional area boundaries.

Answer: e

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

61) A business process can be a competitive advantage when _____________.

a) The company becomes less responsive and efficient


b) IT enables the company innovate or to execute better than its competitors
c) Inputs are translated to outputs
d) A product or service is delivered to the organization

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Hard

62) Applying copyrights and trademarks is an example of a(n):

a) Accounting business process


b) Finance business process
c) Marketing business process
d) Production business process
e) Management information systems business process

Answer: c

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

63) Reconciling bank accounts is an example of a(n):

a) Accounting Business Process


b) Finance Business Process
c) Marketing Business Process
d) Production Business Process
e) Management Information Systems Business Process

Answer: a

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

64) Managing account collections is an example of a(n):

a) Accounting Business Process


b) Finance Business Process
c) Marketing Business Process
d) Production Business Process
e) Management Information Systems Business Process

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

65) Collecting sales tax is an example of a(n):

a) Accounting Business Process


b) Finance Business Process
c) Marketing Business Process
d) Production Business Process
e) Management Information Systems Business Process

Answer: c

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

66) Managing purchasing is an example of a(n):

a) Accounting Business Process


b) Finance Business Process
c) Marketing Business Process
d) Production Business Process
e) Management Information Systems Business Process

Answer: d

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

67) Cross-functional business processes:

a) Fall within a single functional area


b) Cut across multiple functional areas
c) Require collaboration
d) A and C
e) B and C

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

68) Managing pay and payroll is an example of a(n):

a) Accounting Business Process


b) Finance Business Process
c) Marketing Business Process
d) Human Resources Business Process
e) Management Information Systems Business Process

Answer: d

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

69) Which of the following processes involves the warehouse, purchasing, and accounting
functional areas?

a) Procurement
b) Fulfillment
c) Order entry
d) Accounts receivable
e) Payroll

Answer: a

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

70) Which of the following processes involves the warehouse, sales, and accounting functional
areas?

a) Procurement
b) Fulfillment
c) Order entry
d) Accounts Receivable
e) Payroll
Rainer, Information System, Third Canadian Edition Testbank

Answer: b

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Easy

71) Which of the following is not a role that information systems play in businesses processes?

a) Establish standards
b) Execute the process
c) Capture and store process data
d) Monitor process performance
e) Detect problems with the process.

Answer: a

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

72) An example of a cross-functional business process is ________.

a) Warehousing
b) Purchasing
c) Procurement
d) Accounting

Answer: c

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

73) For many organizations, business process reengineering

a) Is easy to implement.
b) Is not disruptive to implement.
c) Has little impact on facilities.
d) Is inexpensive.
e) Has a major impact on the corporate culture.

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

74) Which of the following statements is false?

a) BPM is a task-oriented approach.


b) BPM can help companies reduce costs.
c) BPM can help companies increase revenue.
d) BPM can improve customer satisfaction.
e) BPM can improve organizational flexibility

Answer: a

Learning Objective: Understand the concept of business processes, and provide examples of
business processes in the functional areas of an organization.
Section Reference: 2.1 Business Processes
Difficulty: Medium

75) Business process ______________ is a management technique that includes methods and
tools to support the design, analysis, implementation, management, and optimization of
business processes.

a) Implementation
b) Management
c) Optimization
d) Reengineering

Answer: b

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

76) The initial goal of business process management is ____________________.

a) To be less radical, disruptive, and more incremental


b) To improve profitability by decreasing costs and increasing revenue
c) To create a competitive advantage through organizational flexibility
d) To organize around the business process not the individual task

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Hard

77) Which of the following statements is false?

a) BPM begins with process modeling.


b) Process modeling is a graphical depiction of all the steps in a process.
c) BPM uses Web-enabled technologies for user interfaces.
d) Business activity monitoring is used to measure and manage business processes.
e) Business activity monitoring is a type of scheduled reporting.

Answer: e

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Medium

78) _____________ is the result of optimizing the manufacturing and logistics processes.

a) Customer satisfaction
b) Cost reduction
c) Cycle and fulfillment time
d) Differentiation

Answer: c

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Medium

79) _____________ is the result of optimizing the marketing and innovation processes.

a) Customer satisfaction
b) Cost reduction
c) Cycle and fulfillment time
d) Differentiation

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Medium

80) Business process _______________ is a strategy for improving the efficiency and
effectiveness of an organization’s business processes.

a) Implementation
b) Management
c) Optimization
d) Reengineering

Answer: d

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Medium

81) ____________ pressures are generated by the global economy, intense competition, the
changing nature of the workforce, and powerful customers.

a) Economic
b) Market
c) Social
d) Technology

Answer: b

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Medium

82) According to Friedman, the focus of Globalization 1.0 was on:

a) Countries
b) Companies
c) Groups
d) Individuals

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

83) According to Friedman, the focus of Globalization 2.0 was on:

a) Countries
b) Companies
c) Groups
d) Individuals

Answer: b

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

84) According to Friedman, the focus of Globalization 3.0 was on:

a) Countries
b) Companies
c) Groups and Individuals
d) Governments

Answer: c

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

85) New and improved technologies rapidly create and support substitutes for products,
alternative service options, and superb quality. This is an example of ________ pressures.

a) Economic
b) Market
c) Social
d) Technology

Answer: d

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

86) Spending to protect against terrorism is an example of __________ pressure.

a) Economic
b) Market
c) Social
d) Technology

Answer: c

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

87) ____________ is a strategy of producing a large quantity of items, but customizing them to
fit the desire of each customer.

a) Customer focus
b) Make-to-order
c) Mass customization
d) Personalization

Answer: c

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Difficulty: Easy

88) ____________ is a strategy of producing customized (made to individual specifications)


products and services.

a) Customer focus
b) Make-to-order
c) Mass customization
d) Personalization

Answer: b

Learning Objective: Differentiate between the terms business process reengineering and
business process management.
Section Reference: 2.2 Business Process Reengineering and Business Process Management
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

89) Business pressures on organizations are created when there are changes in

a) Social factors
b) Economic factors
c) Legal factors
d) Political factors
e) Changes in all of these will create business pressures.

Answer: e

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

90) Market pressures include which of the following?

a) The global economy


b) Weak competition
c) A homogeneous workforce
d) Weak customers
e) High-cost offshore labor

Answer: a

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

91) The workforce in developed countries is exhibiting all of the following trends except:

a) It is becoming more diversified.


b) It includes more women.
c) It includes more single parents.
d) It includes fewer persons with disabilities.
e) It includes more minority-group members.

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

92) Today’s customers have ________.

a) Less knowledge about products


b) Less sophistication
c) Difficulty in finding information about products
d) Higher expectations
e) Difficulty in comparing prices

Answer: d

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

93) Which of the following statements concerning technology pressures on modern businesses
is true?

a) Technology changes so rapidly that organizations should wait before they release new
technology-based products.
b) New technologies offer alternative service options.
c) New technologies will never replace existing technologies.
d) The amount of information on the Internet remains stable from year to year.
e) The important information on the Internet is fee-based.

Answer: b

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

94) Which of the following is not an example of the growing initiative called green IT?

a) Designing an IT infrastructure to support sustainability.


b) Building systems that monitor carbon throughout the organization.
c) Asking vendors about compliance on environmental standards.
Rainer, Information System, Third Canadian Edition Testbank

d) Building computer applications that use less energy


e) Designing energy-efficient data centers.

Answer: d

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

95) The digital divide is an example of which type of societal pressure?

a) Social responsibility
b) Government regulations
c) Protection against terrorism
d) Ethics
e) Information overload

Answer: a

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

96) Which one of the following statements is false?

a) Businesses tend to view government regulations as expensive constraints on their activities.


b) Government deregulation reduces competition.
c) IT support is essential for compliance with many new regulations.
d) IT has been used to identify patterns of behavior associated with terrorist activities.
e) Information ethics can destroy the morale of a company’s employees.

Answer: b

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

97) Which of the following is not a Section Reference by organizations to business pressures?
Rainer, Information System, Third Canadian Edition Testbank

a) Delay releases of innovated products.


b) Build strategic systems that enable an organization to increase market share or profits.
c) Provide tools that satisfy customers so they don’t go to a competitor.
d) Manufacture customized goods at a lower cost.
e) Conduct business electronically with customers and business partners.

Answer: a

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Medium

98) Producing identical items in large quantities is called:

a) Strategic systems.
b) Customer focus.
c) Continuous improvement.
d) Mass production.
e) Mass customization.

Answer: d

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy

99) Producing customized items in large quantities is called:

a) Strategic systems.
b) Customer focus.
c) Continuous improvement.
d) Mass production.
e) Mass customization.

Answer: e

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

100) The Bodymetrics body scanner is best characterized as an example of:

a) Mass production.
b) Customer focus.
c) Real-time customer input.
d) Mass customization.
e) Continuous improvement.

Answer: d

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Medium

101) Information-based industries are most susceptible to which one of Porter’s five forces?

a) Threat of entry of new competitors


b) Bargaining power of suppliers
c) Bargaining power of customers
d) Threat of substitute products
e) Rivalry among existing firms in an industry

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

102) Competitive advantage for an organization manifests itself as all of the following except:

a) Lower costs
b) Higher quality
c) Increased time to market
d) Increased profits
e) Increased speed

Answer: c

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

103) For most companies, the Web _____ the threat that new competitors will enter the market
by _____ traditional barriers to entry.

a) Decreases, increasing
b) Increases, decreasing
c) Increases, increasing
d) Decreases, decreasing

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

104) _____ is a feature that must be offered by a competing organization in order to survive in
the marketplace.

a) Competitive advantage
b) An entry barrier
c) Strategic advantage
d) Rapid time-to-market
e) One-to-one marketing

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

105) The threat of competitors’ entering the automobile manufacturing industry is _____
because barriers to entry are so _____.

a) Low, low
b) High, high
Rainer, Information System, Third Canadian Edition Testbank

c) High, low
d) Low, high

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

106) The threat of competitors’ entering a market is very high in industries that perform a(n)
_____ role and in industries where the primary product or service is _____.

a) Intermediation, physical
b) Broker, physical
c) Sales, financial
d) Financial, digital
e) Intermediation, digital

Answer: e

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Hard

107) How does the Internet affect the way you purchase your textbooks?

a) The Internet gives you fewer choices.


b) The Internet increases your bargaining power.
c) The Internet provides you with less information.
d) The Internet decreases your bargaining power.
e) The Internet increases your switching costs.

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

108) Buyer power is _____ when buyers have many choices from whom to buy and _____ when
buyers have few choices.

a) High, the same


b) High, low
c) Low, low
d) Low, high
e) Low, the same

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

109) The costs of delivering products in the _____ channel are much higher than delivering
products in the _____ channel.

a) E-commerce, digital
b) Digital, e-commerce
c) Digital, physical
d) Physical, financial
e) Physical, digital

Answer: e

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

110) Porter’s competitive forces model helps organizations identify _____, whereas his value
chain model helps organizations identify specific _____.

a) Competitive opportunities, activities


b) General strategies, activities
c) Activities, competitive opportunities
d) Activities, general strategies
e) Primary activities, support activities
Rainer, Information System, Third Canadian Edition Testbank

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

111) _____ activities create value for which customers are willing to pay, whereas _____
activities do not add value directly to the firm’s products or services.

a) Support, primary
b) Human resource management, inbound logistics
c) Procurement, operations
d) Primary, support
e) Accounting, outbound logistics

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

112) If there are _____ substitutes for an organization’s products or services, then the threat of
substitutes is _____.

a) Many, high
b) Few, low
c) Few, high
d) Many, low
e) Few, negligible

Answer: a

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

113) New technologies can produce new products very _____, which _____ the threat from
substitute products.

a) Slowly, decreases
b) Slowly, increases
c) Slowly, does not affect
d) Quickly, increases
e) Quickly, does not affect

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

114) The visibility of Internet applications on the Web makes proprietary systems more difficult
to keep secret. This is an example of which of Porter’s five forces?

a) Threat of entry of new competitors


b) Bargaining power of suppliers
c) Bargaining power of customers
d) Threat of substitute products
e) Rivalry among existing firms in an industry

Answer: e

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

115) Walmart’s automatic inventory replenishment system, which enables the company to
reduce inventory storage requirements, is an example of which strategy for competitive
advantage?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness
e) Customer-orientation
Rainer, Information System, Third Canadian Edition Testbank

Answer: a

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

116) Which strategy for competitive advantage involves offering different products, services, or
product features?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness
e) Customer-orientation

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

117) Which strategy for competitive advantage involves introducing new products and putting
new features in existing products?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness
e) Customer-orientation

Answer: c

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

118) The threat of entry of new competitors is __________ when it is easy to enter a market
and __________ when significant barriers to entry exist.

a) High, high
b) High, low
c) Low, low
d) Low, high

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

119) The bargaining power of suppliers is _______ when buyers have few choices and
_________ when buyers have many choices.

a) High, high
b) High, low
c) Low, low
d) Low, high

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

120) The introduction of ATM machines by Citibank was a classic example of which strategy for
competitive advantage?

a) Cost leadership
b) Innovation
c) Differentiation
d) Operational effectiveness
e) Customer-orientation

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.4 Competitive Advantage and Strategic Information Systems


Difficulty: Easy

121) Southwest Airlines’ low-cost, short-haul strategy is an example of which strategy for
competitive advantage?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness
e) Customer-orientation

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

122) Which strategy for competitive advantage involves improving the manner in which an
organization executes its internal business processes?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness
e) Customer-orientation

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Easy

123) When Amazon welcomes you by name back to its Web site on your second visit, it is
employing which strategy for competitive advantage?

a) Cost leadership
b) Differentiation
c) Innovation
Rainer, Information System, Third Canadian Edition Testbank

d) Operational effectiveness
e) Customer-orientation

Answer: e

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

124) IT will impact managers’ jobs in all of the following ways except:

a) Managers will have time to get into the field


b) Managers can spend more time planning
c) Managers can spend more time “putting out fires”
d) Managers can gather information more quickly
e) None of these

Answer: c

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

125) The bargaining power of buyers is ___________ when buyers have many choices and
________ when buyers have few choices.

a) High, high
b) High, low
c) Low, low
d) Low, high

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

126) The threat of substitute products or services is _______ when there are many substitutes
for an organization’s products or services and ________ when there are few substitutes.

a) High, high
b) High, low
c) Low, low
d) Low, high

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

127) The rivalry among firms in an industry is __________ when there is fierce competition and
___________ when competition is among fewer firms.

a) High, high
b) High, low
c) Low, low
d) Low, high

Answer: b

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

128) In the airline industry, ________ is an example of differentiation strategy as it offers


regional service at low cost.

a) Air Canada
b) Air Quebec
c) WestJet
d) EastJet

Answer: c

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

129) Porter’s _____ help(s) companies identify general strategies, whereas his _____ help(s) to
identify specific activities where companies can use the strategies for greatest impact.

a) Value chain model, competitive forces model


b) Primary activities, support activities
c) Competitive forces model, primary activities
d) Competitive forces model, value chain model
e) Value chain model, support activities

Answer: d

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

130) The internet ________ buyers’ access to information, __________ buyer power.

a) Decreases, decreasing
b) Decreases, increasing
c) Increases, decreasing
d) Increases, increasing

Answer: d

Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

131) Which strategy for competitive advantage improves the manner in which internal business
processes are executed so that a firm performs similar activities better than its rivals?

a) Cost leadership
b) Differentiation
c) Innovation
d) Operational effectiveness

Answer: d

Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

132) Which of the following is not an example of business – IT alignment?

a) The company goals are clear to every IT and business employee.


b) The company ensures that IT employees understand how the company makes money.
c) The company views IT as a way to support the business but not as a way to create new
revenue streams.
d) IT professionals rotate into business departments.
e) The company views customer service as extremely important.

Answer: c

Learning Objective: Define business-information technology alignment, and describe the


characteristics of effective alignment.
Section Reference: 2.5 Business–Information Technology Alignment
Difficulty: Medium

133) Which of the following is not a cause of inadequate alignment between IT and business?

a) A lack of communication
b) Different objectives
c) Not understanding each group’s expertise
d) Lack of IT knowledge on the part of the business executives
e) Lack of funds

Answer: e

Learning Objective: Define business-information technology alignment, and describe the


characteristics of effective alignment.
Section Reference: 2.5 Business–Information Technology Alignment
Difficulty: Medium

134) Which of the following is NOT a characteristic of excellent alignment between IT and
business?

a) Organizations create a vibrant and inclusive company culture.


b) Organizations ensure business and IT professionals communicate solely from their area of
expertise.
c) Organizations ensure that IT employees understand how the company makes (or loses)
money.
d) Organizations view their internal and external customers and their customer service function
as supremely important.

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Define business-information technology alignment, and describe the


characteristics of effective alignment.
Section Reference: 2.5 Business–Information Technology Alignment
Difficulty: Medium

135) Alignment between IT and business is difficult because ________.

a) the objectives of business managers and IT managers are so comprehensive.


b) the business and IT departments know little of the other group’s expertise.
c) communicate well but find it hard to implement projects that are discussed.
d) All of the above are reasons alignment is difficult.

Answer: b

Learning Objective: Define business-information technology alignment, and describe the


characteristics of effective alignment.
Section Reference: 2.5 Business–Information Technology Alignment
Difficulty: Medium

136) Alignment between IT and business is characterized by a __________ of the IT function


with strategy, mission, and goals of the organization.

a) tight integration
b) loose integration
c) replacement
d) upgrade

Answer: a

Learning Objective: Define business-information technology alignment, and describe the


characteristics of effective alignment.
Section Reference: 2.5 Business–Information Technology Alignment
Difficulty: Medium

137) IT governance aims to add value while ______:

a) Balancing risk versus return over IT and its processes.


b) Maximizing profit.
c) Minimizing cost.
d) Creating a friendly environment

Answer: a

Learning Objective: Define the term “IT governance” and explain why information systems need
to be effectively managed and planned.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.5 Business–Information Technology Alignment


Difficulty: Medium

138) Refer to IT’s About Business– Sleek Audio: Which of Friedman’s flatteners applies to Sleek
Audio’s decision to bring its manufacturing back to the United States?

a) Offshoring
b) Informing
c) Work-flow software
d) Supply chaining
e) The Steroids

Answer: d

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: IT’s About Business: Sleek Audio
Difficulty: Medium

139) ___________ is a website where potential donors can decide where their money can be
directed, stating whether it goes to a particular disaster relief fund.

a) GiftFlow.org
b) RedCross.ca
c) Microsoft.ca
d) Kiva.org

Answer: b

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: IT’s About Business: The Internet Facilitates Generosity
Difficulty: Medium

140) According to “The Internet Facilitates Generosity” case, what is the order in which people
most readily share?

a) Information, Physical goods, Time


b) Information, Time, Physical goods
c) Time, Information, Physical goods
d) Time, Physical goods, Information

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: IT’s About Business: The Internet Facilitates Generosity
Difficulty: Medium

141) Refer to IT’s About Business – The Internet Facilitates Generosity: Sociologists argue that
posting experiences on message boards can actually improve a person’s

a) Self-esteem
b) Independence
c) Wealth
d) Free time
e) Social status

Answer: a

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: IT’s About Business: The Internet Facilitates Generosity
Difficulty: Medium

142) The Lululemon Athletica Inc. (www.lululemon.com) focused on creating:

a) Brand environment
b) Culture of high quality
c) Uniqueness
d) enhanced customer service with IT
e) All of the above

Answer: e

Learning Objective: Summarize the fundamental concepts and skills related to developing
organizational strategies and competitive advantage.
Section Reference: Closing Case – Can Lululemon Sustain Competetive Advantage?
Difficulty: Medium

Question Type: Short Answer

143) Identify the three types of business pressures, and explain how organizations can use IT to
respond to each one.

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 2.3 Business Pressures, Organizational Responses, and Information


Technology Support
Difficulty: Medium

144) Using Porter’s competitive forces model, contrast the bargaining power of suppliers and
the bargaining power of customers (buyers).

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

145) What are switching costs, and why would a company care about them?

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

146) Differentiate between Porter’s competitive forces model and his value chain model.

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

147) Differentiate between primary activities and support activities in Porter’s value chain
model.

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

148) Evaluate the assertion that an information system by itself can rarely provide a sustainable
competitive advantage.

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Medium

Question Type: Essay

149) Explain what a business environment is and what factors within the environment put
pressure on the business.

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Medium

150) Explain how changes in social responsibility, government regulation/deregulation, social


programs, protection against terrorism, and ethics put pressure on modern businesses.

Learning Objective: List and provide examples of the three types of business pressures, and
describe one IT response to each.
Section Reference: 2.3 Business Pressures, Organizational Responses, and Information
Technology Support
Difficulty: Hard

151) Identify the five forces of Porter’s competitive forces model, and explain how the Internet
impacts each one.

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Hard

152) Discuss why the variable cost of digital products is extremely low.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Hard

153) Provide an example of each of the five strategies for competitive advantage. (Do not use
the examples provided in the book).

Learning Objective: Identify the five competitive forces described by Porter, and explain how the
Web impacts each one.
Learning Objective: Describe the strategies that organizations typically adopt to counter the five
competitive forces and achieve competitive advantage.
Section Reference: 2.4 Competitive Advantage and Strategic Information Systems
Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

Legal Notice

Copyright © 2014 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.

The data contained in these files are protected by copyright. This manual is furnished
under licence and may be used only in accordance with the terms of such licence.

The material provided herein may not be downloaded, reproduced, stored in a retrieval
system, modified, made available on a network, used to create derivative works, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise without the prior written permission of John Wiley &
Sons Canada, Ltd.
Rainer, Information System, Third Canadian Edition Testbank

Chapter 3
Data and knowledge management

Question Type: True/False

1) The growing mounds of data have given rise to a new type of professional, the data scientist.

Answer: True

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: Case 3.1 Big Data
Difficulty: Medium

2) The Information Silos are information that is stored and isolated in separate functional areas.

Answer: True

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: Case 3.1 Big Data
Difficulty: Easy

3) The decisions about hardware or software last longer, and have a broader impact, than decisions
about data.

Answer: False

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: Case 3.1 Big Data
Difficulty: Easy

4) The biggest problem today is gathering data and then using it properly.

Answer: False

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: Case 3.1 Big Data
Difficulty: Easy

5) Data governance is an approach to managing functional area information systems.


Rainer, Information System, Third Canadian Edition Testbank

Answer: False

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: Case 3.1 Big Data
Difficulty: Easy

6) Increasing amounts of external data need to be considered in making organizational decisions.

Answer: True

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

7) Data rot refers to the quality of the data itself.

Answer: False

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Medium

8) Master data are a set of core data that span all of an enterprise’s information systems.

Answer: True

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

9) It is important for applications and data to be dependent on each other.

Answer: False

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: 3.3 Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

10) Secondary keys have some identifying information but do not identify a file with complete accuracy.

Answer: True

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

11) A negative value for a student’s grade point average is an example of a data integrity problem.

Answer: True

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: 3.3 Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

12) For the following entity-relationship diagram, the Student entity would have the foreign key.

Answer: False

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

13) An entity is a person, place, thing, or event about which information is maintained.

Answer: True

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: 3.3 Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

14) An attribute is any characteristic or quality that describes a particular entity.

Answer: True

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

15) Modality is the minimum number of times an instance of one entity can be associated with an
instance of a related entity.

Answer: True

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

16) The secondary key is a field that identifies a record with complete uniqueness.

Answer: False

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

17) Entity-relationship diagrams are documents that show the primary and secondary keys associated
with a conceptual data model.

Answer: False

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: The Database Approach: Designing the Database
Difficulty: Easy

18) You would be an instance of your university’s STUDENT class.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

19) The relational database model is based on the concept of three-dimensional tables.

Answer: False

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

20) A relational database is one big table that contains all the company’s records.

Answer: False

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

21) Structured query language is a relational database language that enables users to perform
complicated searches with relatively simple statements.

Answer: True

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

22) When data are normalized, attributes in the table depend on the primary key and any secondary
keys.

Answer: False

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

23) In a data warehouse, existing data are constantly purged as new data come in.

Answer: False

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

24) An organization’s data warehouse generally maintains its operational data.

Answer: False

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

25) Online analytical processing (OLAP) involves the analysis of accumulated data by end users.

Answer: True

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

26) A data mart can be implemented more quickly than a data warehouse.

Answer: True

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

27) Data marts are designed for the end-user needs in a strategic business unit or department.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

28) The Isle of Capri Casinos found its direct mail program was successful in providing a complete view
of the customers.

Answer: False

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section reference: IT’s About Business: The Data Warehouse at the Isle of Capri Casinos
Difficulty: Medium

29) Master data are generated and captured by operational systems.

Answer: False

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Governance
Difficulty: Easy

30) A data mart is a low-cost, scaled-down version of a data warehouse.


Answer: True

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts: Governance
Difficulty: Easy

31) Tacit knowledge is the more objective, rational, and technical types of knowledge.

Answer: False

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

32) Explicit knowledge refers to the cumulative store of subjective learning, which is personal and hard
to formalize.

Answer: False

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Easy

33) Knowledge is information in action.

Answer: True

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

34) When you start a job, you are given an employee handbook which contains the company’s tacit
knowledge.

Answer: False

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

35) When you start a job, you watch what other employees are doing and ask them to explain why they
do it in a particular way. They are sharing their tacit knowledge.

Answer: True

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

36) The data dictionary stores definitions of data elements, characteristics that use the data elements,
physical representation of the data elements, data ownership, and security.

Answer: True
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

Question Type: Multiple Choice

37) Which of the following is NOT a problem with Big Data?

a) Gathering data
b) Privacy
c) Security
d) Decision-making

Answer: a

Learning Objective: Provide a real-world application of data and knowledge management.


Section Reference: Big Data
Difficulty: Medium

38) Refer to Opening Case – Big Data. Which of the following is not a problem created by “Big Data”?

a) The data is not reliable.


b) The amount of data exceeds the available storage.
c) The existing networks can’t handle the volume.
d) It is more difficult to protect the data.
e) The vast amounts of data make decision making more complicated.

Answer: a

Learning Objective: Provide a real-world application of data and knowledge management.


Section Reference: Big Data
Difficulty: Medium

39) Which of the following has (have) the broadest impact on an organization?

a) Decisions about hardware.


b) Decisions about software.
c) Decisions about data.
d) Both “decisions about hardware” and “decisions about software.”
e) All of these have an equal impact.

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

40) It is difficult to manage data. For example, it is common for customers to move and for companies
to go out of business. This is an example of ___________.

a) Data degradation
b) Data rot
c) Data security
d) Scattered data

Answer: a

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

41) Which of the following is not a source for external data?

a) Commercial databases
b) Corporate databases
c) Sensors
d) Satellites
e) Government reports

Answer: b

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

42) Which of the following is not a reason why managing data is difficult over time?

a) New systems are developed.


b) The media the data are stored on becomes problematic.
c) New sources of data are created.
d) The amount of data increases exponentially.
e) All of these are reasons why managing data is difficult over time.

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Medium

43) The amount of data we collect is ____________ over time, making it ________ difficult to manage
data.

a) Decreasing, less
b) Decreasing, more
c) Increasing, less
d) Increasing, more

Answer: d

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Easy

44) Sarbanes-Oxley legally mandates that public companies evaluate and disclose the effectiveness of
their ________________.

a) IT policies
b) HR rules
c) financial controls
d) sales goals

Answer: c

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Medium

45) Not including alphabetic characters in a Social Security Number field is an example of _____.

a) Data isolation.
b) Data integrity.
c) Data consistency.
d) Data redundancy.
e) Application/data dependence.

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

46) For the following entity-relationship diagram, the attributes you would NOT expect to see in the
Computer entity are

a) manufacturer.
b) type (laptop or desktop).
c) memory size.
d) disk size.
e) student’s dorm room.

Answer: E

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: 3.3 Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

47) For the following entity-relationship diagram, what could the primary key be in the Grade entity?

a) Primary key in Student entity


b) Primary key in Course entity
c) Its own primary key.
d) Primary key made up of the primary keys in Student entity and Course entity
e) It doesn’t need a primary key.

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

48) In a jewelry store, a customer places an order for a piece of jewelry (for example, a silver pin in the
shape of a tulip). A customer could order more than one piece of jewelry at a time.

Which of the following entity-relationship diagrams is true?

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Medium

49) _____ occurs when applications cannot access data associated with other applications.

a) Data isolation
b) Data integrity
c) Data consistency
d) Data redundancy
e) Application/Data dependence
Rainer, Information System, Third Canadian Edition Testbank

Answer: a

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

50) _____ occurs when the same data are stored in many places.

a) Data isolation
b) Data integrity
c) Data consistency
d) Data redundancy
e) Application/Data dependence

Answer: D

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

51) Data ___________ ensures applications cannot access data associated with other applications.

a) Hermitting
b) Inconsistency
c) Isolation
d) Redundancy

Answer: c

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

52) _____ occurs when various copies of the data agree.

a) Data isolation
b) Data integrity
c) Data consistency
d) Data redundancy
e) Application/Data dependence
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Easy

53) You have moved to a different apartment, but your electricity bill continues to be sent to your old
address. The Post Office in your town has which problem with its data management?

a) Data redundancy
b) Data inconsistency
c) Data isolation
d) Data security
e) Data dependence

Answer: b

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Medium

54) Place the following members of the data hierarchy in their correct order:

a) Bit – byte – field – record – database – file


b) Bit – field – byte – record – file – database
c) Byte – bit – record – field – database
d) Bit – byte – field – record – file – database
e) Bit – record – field – byte – file -- database

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

55) Data ___________ ensures data meets system constraints.

a) Consistency
b) Independence
Rainer, Information System, Third Canadian Edition Testbank

c) Integrity
d) Security

Answer: c

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

56) Data __________ is a problem minimized by databases.

a) Independence
b) Integrity
c) Isolation
d) Security

Answer: c

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

57) In the data hierarchy, the smallest element is the _____.

a) Record.
b) Bit.
c) Byte.
d) Character.
e) File.

Answer: b

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

58) A _______ is eight ________.

a) bit, digits
b) Byte, characters
c) Bit, bytes
d) Byte, bits
Rainer, Information System, Third Canadian Edition Testbank

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

59) A(n) _____ is a logical grouping of characters into a word, a small group of words, or a complete
number.

a) Byte
b) Field
c) Record
d) File
e) Database

Answer: b

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

60) A(n) _____ is a logical grouping of related fields.

a) Byte
b) Field
c) Record
d) File
e) Database

Answer: c

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

61) A(n) _____ is a logical grouping of related records.

a) Byte
b) Field
c) Record
d) File
Rainer, Information System, Third Canadian Edition Testbank

e) Database

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

62) A(n) _____ represents a single character, such as a letter, number, or symbol.

a) Byte
b) Field
c) Record
d) File
e) Database

Answer: a

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: The Data Hierarchy
Difficulty: Easy

63) In a database, the primary key field is used to _____.

a) Specify an entity
b) Create linked lists
c) Identify duplicated data
d) Uniquely identify a record
e) Uniquely identify an attribute

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

64) _____ are fields in a record that have some identifying information but typically do not identify the
record with complete accuracy.
Rainer, Information System, Third Canadian Edition Testbank

a) Primary keys
b) Secondary keys
c) Duplicate keys
d) Attribute keys
e) Record keys

Answer: b

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

65) As an individual student in your university’s student database, you are a(n) _____ of the STUDENT
class.

a) Instance
b) Individual
c) Representative
d) Entity
e) Relationship

Answer: a

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Medium

66) At your university, students can take more than one class, and each class can have more than one
student. This is an example of what kind of relationship?

a) One-to-one
b) One-to-many
c) Many-to-one
d) Many-to-many
e) Some-to-many

Answer: d

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

67) In a university’s relational database, the student record contains information regarding the student’s
last name. The last name is a(n):

a) Attribute.
b) Entity.
c) Primary key.
d) Object.
e) File.

Answer: A

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach: Designing the Database
Difficulty: Easy

68) A database management system is primarily a(n) _____.

a) File-handling program
b) Data-modeling program
c) Interface between applications and a database
d) Interface between data and a database
e) Interface between queries and a database

Answer: c

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

69) In the relational database model, related tables can be joined when they contain common _____.

a) Primary keys
b) Rows
c) Records
d) Columns
e) Files

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Medium

70) __________________ allows users to perform complicated searches by using relatively simple
statements or keywords.

a) DBMS
b) QBE
c) SQL
d) SSK

Answer: c

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

71) _____ tell the database management system which records are joined with others in related tables.

a) Primary keys
b) Secondary keys
c) Common attributes
d) Common files
e) Common fields

Answer: a

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Medium

72) Data dictionaries perform all of the following functions except:

a) Providing information on each record.


b) Providing information on why attributes are needed in the database.
c) Defining the format necessary to enter data into the database.
d) Providing information on the name of each attribute.
e) Providing information on how often attributes should be updated.

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Medium

73) In a relational database, every row represents a(n) _____.

a) File
b) Record
c) Attribute
d) Primary key
e) Secondary key

Answer: b

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

74) A standardized language used to manipulate data is _____.

a) MS-Access
b) Oracle
c) Query-by-example language
d) Structured query language
e) Data-manipulation language

Answer: d

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

75) _______________ uses drag-and-drop features to search a database.

a) DBMS
b) QBE
c) SQL
d) DDF

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Medium

76) Data dictionaries provide which of the following advantages to the organization?

a) They reduce data inconsistency.


b) They enable faster program development.
c) They make it easier to modify data and information.
d) Both “They enable faster program development.” and “They make it easier to modify data and
information.”
e) All of these

Answer: e

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

77) _____ is a method for analyzing and reducing a relational database to its most streamlined form.

a) Structured query
b) Normalization
c) Query by example
d) Joining
e) Relational analysis

Answer: b

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

78) When data are normalized, attributes in the table depend only on the _____.

a) Secondary key
b) Common attribute
c) Primary key
d) Common row
e) Common record

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

79) _____________ reduces a relational database to its most streamlined form.

a) A data dictionary
b) A database management system
c) Normalization
d) Streamlining

Answer: c

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

80) Normalized data occurs when attributes in the table depend only on the _______.

a) Data dictionary
b) Primary key
c) Record information
d) Secondary key

Answer: b

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Easy

81) The data in a data warehouse have which of the following characteristics?

a) They are organized by subject.


b) They are coded in different formats.
c) They are updated in real time.
d) They are typically retained for a defined, but limited, period of time.
e) They are organized in a hierarchical structure.

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

82) The data in a data warehouse:

a) Are updated constantly in real time.


b) Are updated in batch mode, approximately once per day.
c) Are not updated.
d) Are purged constantly as new data enter.
e) Are available for MIS analysts, but not users.

Answer: c

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

83) The process of moving data from various sources into the data warehouse is called:

a) Uploading.
b) Extracting, transforming, and loading.
c) Online transaction processing.
d) Master data management.
e) Online analytical processing.

Answer: b

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

84) A data warehouse is a repository of __________ data.

a) Current
b) Historical
c) Queried
d)Numbered
Rainer, Information System, Third Canadian Edition Testbank

Answer: b

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Easy

85) Compared to data warehouses, data marts have which one of the following characteristics?

a) They cost less.


b) They have longer lead times for implementation.
c) They provide for central rather than local control.
d) They contain more information.
e) They are more difficult to navigate.

Answer: a

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

86) _____ is a formal approach to managing data consistently across an entire organization.

a) Database management
b) Enterprise information management
c) Data warehousing
d) Data governance
e) Data mart

Answer: d

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Easy

87) Which of the following statements is TRUE?

a) Databases are organized to make queries very easy.


b) Running queries in a data warehouse does not degrade database performance.
c) Databases are well-suited for making comparisons between records.
d) Querying databases is the most effective and efficient way of using data.
Rainer, Information System, Third Canadian Edition Testbank

Answer: b

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Hard

88) _____ provide(s) companies with a single version of the truth for their data.

a) Data warehouses
b) Data marts
c) Databases
d) Master data management
e) Enterprise information management

Answer: d

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Easy

89) In data warehouses and data marts, data are stored in a multidimensional structure and visually
represented as a data cube. Figure 3.12 is an example of a data cube of sales with the dimensions of
product, geographic area, and time period (year). These are called business dimensions.
What would the business dimensions be for Walmart’s sales with its many sales transactions for many
products in many stores that would allow them to do weekly analysis?

a) Customer, product, and month


b) Customer, product, store
c) Customer, product, store, and month
d) Customer, product, store, and week
e) Product, store, and week

Answer: e

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

90) Organizations are turning to data governance for which of the following reasons?
Rainer, Information System, Third Canadian Edition Testbank

a) They have too little data.


b) They are responding to federal regulations.
c) Their data are typically structured.
d) Their data are usually located in the organization’s databases.
e) Data across their organizations are generally consistent.

Answer: b

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Hard

91) __________ involves the analysis of accumulated data and involves a __________.

a) OLAP, database
b) OLAP, data warehouse
c) OLTP, database
d) OLTP, data warehouse

Answer: b

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Easy

92) _____ describe the activities of the business, whereas _____ categorize(s), aggregate(s), and
evaluate(s) data generated by the organization’s activities.

a) Transaction data, master data


b) Source data, transaction data
c) Operational data, master data
d) Master data, source data
e) Business dimensional data, databases

Answer: a

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

93) The Isle of Capri Casinos developed a data warehouse to ________________.


a) Enhance its knowledge of its customers
b) Target its promotions more precisely
c) Adjust the floor in each casino to optimize revenue and profit
d) All of the above

Answer: d

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Easy

94) Refer to IT’s About Business – Isle of Capri Casinos. Capri Casinos decided it needed a data
warehouse for all of the following reasons except:

a) To process transactions faster.


b) To provide a complete view of the customer.
c) To enhance its marketing campaigns
d) To provide business users access to business-wide data.
e) To determine where to place its slot machines.

Answer: a

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: IT’s About Business: 5.3 The Data Warehouse at the Isle of Capri Casinos
Difficulty: Hard

95) _____ is a process that helps organizations identify, select, organize, disseminate, transfer, and
apply expertise that are part of the organization’s memory and typically reside inside the organization in
an unstructured manner.

a) Discovery
b) Knowledge management
c) Decision support
d) Online analytical processing
e) Data mining

Answer: b

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

96) _____ can be exercised to solve a problem, whereas _____ may or may not be able to be exercised
to solve a problem.

a) Knowledge, information
b) Data, information
c) Information, data
d) Information, knowledge
e) Data, knowledge

Answer: a

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

97) Explicit knowledge has which of the following characteristics?

a) Objective
b) Personal
c) Slow
d) Costly to transfer
e) Ambiguous

Answer: a

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

98) _____________ knowledge can be easily documented.

a) Complete
b) Explicit
c) Tacit
d) Intellectual

Answer: b

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

99) Tacit knowledge has which of the following characteristics?

a) Codified
b) Objective
c) Unstructured
d) Rational
e) Technical

Answer: c

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

100) ____________ knowledge is imprecise and costly to transfer.

a) Complete
b) Explicit
c) Tacit
d) Intellectual

Answer: c

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

101) Historically, management information systems have focused on capturing, storing, managing, and
reporting _____ knowledge.

a) Tacit
b) Explicit
c) Managerial
d) Geographical
e) Cultural

Answer: b

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

102) The most important benefit of knowledge management systems is:

a) They improve customer service.


b) They make best practices available to employees.
c) They enable the organization to retain scarce knowledge when employees retire.
d) They improve employee morale.
e) They make product development more efficient.

Answer: b

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

103) Which of the following is a challenge for developing a knowledge management system?

a) Employees must be willing to share their explicit knowledge.


b) It must be continually maintained and updated.
c) It makes human capital widely accessible.
d) All of the above are challenges

Answer: b

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

Question Type: Short Answer

104) Discuss why decisions concerning data structure have a broader impact than decisions concerning
hardware and software.

Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Medium

105) Discuss the difficulties involved in managing data.


Rainer, Information System, Third Canadian Edition Testbank

Title: Assessment Question 3.105


Learning Objective: Identify three common challenges in managing data, and describe one way
organizations can address each challenge using data governance.
Section Reference: 3.1 Managing Data
Difficulty: Medium

106) Define each element of the data hierarchy, in order from smallest to largest.

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Medium

107) Discuss the advantages of the database approach.

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Medium

3.108) Describe entity-relationship modeling.

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Medium

109) Describe the relational database model.

Learning Objective: Discuss at least one main advantage and one main disadvantage of relational
databases.
Section Reference: 3.3 Database Management Systems
Difficulty: Medium

110) Describe the characteristics of a data warehouse.

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

111) What are the advantages of a data mart?

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

112) Differentiate between explicit knowledge and tacit knowledge. Provide examples of each.

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

113) Describe the six steps of the knowledge management system cycle.

Learning Objective: List two main advantages of using knowledge management, and describe the steps
in the knowledge management system cycle.
Section Reference: 3.5 Knowledge Management
Difficulty: Medium

Question Type: Essay

114) Describe the various new sources for data, and provide an example of each.

Learning Objective: Provide a real-world application of data and knowledge management.


Section Reference: Big Data
Difficulty: Hard

115) Explain the six problems that can be minimized using the database approach.

Learning Objective: Name six problems that can be minimized by using the database approach.
Learning Objective 2: Demonstrate how to interpret relationships depicted in an entity-relationship
diagram.
Section Reference: 3.2 The Database Approach
Difficulty: Medium

116) Identify and explain the advantages of the four characteristics of data warehouses.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts
Difficulty: Medium

117) Differentiate between master data and transaction data.

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Data Governance
Difficulty: Hard

118) Why is data governance so important for organizations?

Learning Objective: Identify the six basic characteristics of data warehouses, and explain the advantages
of data warehouses and marts to organizations.
Learning Objective 2: Demonstrate the use of a multidimensional model to store and analyze data.
Section Reference: 3.4 Data Warehouses and Data Marts: Governance
Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

Chapter 4
Networks

Question Type: True-False

1) The Internet is a wide area network.

Answer: True

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

2) Voice and data communications are becoming faster but slightly more expensive.
Answer: False

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

3) A local area network connects two or more communicating devices in a limited geographical area.

Answer: True

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

4) LANs typically contain multiple WANs.

Answer: False

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

5) Network interface cards are special adapters that link an individual device to the communications
medium on a local area network.
Rainer, Information System, Third Canadian Edition Testbank

Answer: True

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

6) The network interface card typically houses the LAN’s network operating system.

Answer: False

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

7) Wide-area networks have a large capacity, and they typically use a single communications channel.

Answer: False

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

8) Digital signals are discrete pulses that are either on or off.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

9) Digital signals are continuous waves that transmit information by altering the characteristics of the
waves.

Answer: False

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

10) Peer-to-peer processing means each computer acts as both a client and a server.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

11) Digital signals have two parameters: frequency and amplitude.

Answer: False

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

12) The U.S. public telephone system was designed as an analog network to carry voice signals.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

13) Ethernet is a common LAN protocol.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

14) Cable media use wires or cables to transmit data and information.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

15) Twisted-pair wire is the least-used form of communications wiring.

Answer: False

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

16) Cladding is the coating that surrounds fiber-optic cables and prevents light from leaking out of the
fiber.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

17) Systems that use digital subscriber lines (DSL) do not require modems.

Answer: False

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

18) Currently, ATM networks operate only on fiber-optic cable.

Answer: True

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

19) IPv6 allows devices to more quickly connect to the Internet than IPv4.

Answer: False
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Medium

20) The World Wide Web is synonymous with the Internet.

Answer: False

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Medium

21) The Internet is a global network of computer networks.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

22) An intranet is a network that uses Internet technologies and is designed to serve the information
needs of a single organization.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

23) Intranets support discovery, communication, and collaboration inside an organization.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

24) An extranet is a network that uses Internet technologies and is designed to serve the information
needs of a single organization.

Answer: False

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

25) Extranets offer limited accessibility to the intranets of participating companies.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

26) An Internet service provider is a company that offers Internet connections for a fee.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

27) Internet kiosks are computer terminals located in public places like libraries and airports.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

28) A domain name is the official name assigned to an Internet site, consisting of multiple parts,
separated by dots, which are translated from right to left in locating the site.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

29) The rightmost part of an Internet name is the top-level specification, or the zone.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

30) The World Wide Web is a system with universally accepted standards for storing, retrieving,
formatting, and displaying information via a client/server architecture.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

31) Uniform resource locators (URLs) point to the address of a specific resource or site on the Web.

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

32) Uniform resource locators (URLs) are software applications through which users access the Web.

Answer: False

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

33) The hypertext transport protocol (HTTP) is the communications standard used to transfer pages
across the World Wide Web portion of the Internet.
Rainer, Information System, Third Canadian Edition Testbank

Answer: True

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

34) A major problem of the discovery applications of networks is the huge amount of information
available.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

35) VoIP converts analog signals to digital ones.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

36) Metasearch engines search several engines at once and integrate the findings of the various search
engines.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

37) The quality of automatic translation of Web pages is usually just as good as human translation.

Answer: False

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

38) Commercial portals are intended for broad audiences and offer fairly routine content.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

39) Crowdsourcing refers to outsourcing a task to an undefined, generally large group of people in the
form of an open call.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

40) Industry-wide portals are intended for broad audiences and offer fairly routine content.

Answer: False

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

41) Electronic mail is the largest-volume application running over the Internet.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

42) With Voice-over-IP, every call opens up a dedicated circuit for the duration of the call.

Answer: False
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

43) E-learning is conducted only in virtual classrooms, where all coursework is completed online.

Answer: False

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

44) Virtual universities are online universities from which students take classes from home or at an off-
site location, via the Internet.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

45) Employees who telecommute have generally found that the experience enhances their careers.

Answer: False

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

46) Qwiki produces a real-time search result in multimedia form.

Answer: True

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section: IT’s About Business: Informative Videos on the Fly
Difficulty: Easy

Question Type: Multiple Choice


Rainer, Information System, Third Canadian Edition Testbank

47) Which of the following is NOT a reason networks are essential?

a) They offer a company flexibility.


b) They allow companies to share resources.
c) Computers typically work in isolation.
d) Employees are geographically dispersed.

Answer: c

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

48) _____ refers to the range of frequencies available in any communications channel.

a) Protocol
b) Broadband
c) Capacity
d) Narrowband
e) Bandwidth

Answer: e

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

49) ______________ refers to the transmission capacity of a network.

a) Bandwidth
b) Bandlength
c) Broadband
d) Narrowband

Answer: a

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

50) Which of the following are advantages of computer networks?

a) They enable organizations to be more flexible.


b) They enable companies to share hardware, computer applications, and data.
c) They enable geographically dispersed employees to work together.
d) They provide a critical link between businesses and their customers.
e) All of these

Answer: e

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

51) Every device in the ________ has a NIC that allows the device to physically connect to the network’s
communication medium.

a) LAN
b) MAN
c) PAN
d) WAN

Answer: a

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

52) The components of a local area network include which of the following?

a) File server
b) Client computers
c) Wireline or wireless communications media
d) Network interface cards
e) All of these

Answer: e

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

53) Which of the following is not a component of a local area network?

a) File server
b) Client computers
c) Bridge
d) Network interface cards
e) All of these

Answer: c

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Medium

54) From largest to smallest, what is the correct order for the types of networks?

a) WAN, MAN, PAN, LAN


b) MAN, WAN, LAN, PAN
c) WAN, MAN, LAN, PAN
d) MAN, WAN, PAN, LAN

Answer: c

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

55) A _____ connects dissimilar networks.

a) Router
b) Network interface card
c) Bridge
d) Gateway
e) File server

Answer: d

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

56) A(n) _____ connects two or more devices in a limited geographical area.
Rainer, Information System, Third Canadian Edition Testbank

a) Local area network


b) Wide-area network
c) Personal area network
d) Enterprise network
e) Value added network

Answer: a

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

57) _____________ usually spans a city.

a) LAN
b) MAN
c) PAN
d) WAN

Answer: b

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

58) A _____ sends messages through several connected LANs or to a wide-area network.

a) Router
b) Network interface card
c) Bridge
d) Gateway
e) File server

Answer: a

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

59) A _____ allows a device to physically connect to a local area network’s communications medium.
Rainer, Information System, Third Canadian Edition Testbank

a) File server
b) Network interface card
c) Network operating system
d) Communications channel
e) Gateway

Answer: b

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Easy

60) All of the following statements concerning wide-area networks are true except:

a) They are provided by individual companies.


b) They have large capacity.
c) They cover large geographical areas.
d) They combine multiple communications channels.
e) The Internet is an example of a wide-area network.

Answer: a

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Medium

61) Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a
point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless
access to the Internet) that can be carried around the store to look up current items in stock, or to
search for items from one of his suppliers for special orders. Which type of network does Gal have?

a) Client-server
b) Mainframe-based
c) LAN
d) WAN
e) Peer-to-peer

Answer: c

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

62) Some modems convert ________ to __________, which is called __________.

a) analog, digital, modulation


b) digital, analog, demodulation
c) analog, numbers, demodulation
d) digital, analog, modulation

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

63) The function of _____ is to convert digital signals to analog signals and vice-versa.

a) Modems
b) Multiplexers
c) Front-end processors
d) Servers
e) Clients

Answer: a

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

64) __________ operates on the same lines as telephones, and the Internet is always available.

a) Cable
b) Dial-up
c) DSL
d) Satellite

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

65) _____ signals convey information in wave form, whereas _____ signals convey information in binary
form.
Rainer, Information System, Third Canadian Edition Testbank

a) Analog, packet
b) Analog, digital
c) Digital, packet
d) Digital, analog
e) Packet, analog

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

66) __________ is the most prevalent form of communications wiring.

a) Coaxial cable
b) Fiber-optic cables
c) Twisted-pair wire
Wireless

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

67) _____ are hardware devices that support data transmission and reception across a
telecommunications system.

a) Integrated services digital networks


b) Digital subscriber lines
c) Communications channels
d) Integrated circuits
e) Communications processors

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

68) Which of the following is not a communications channel?


Rainer, Information System, Third Canadian Edition Testbank

a) Fiber-optic cable
b) Satellite transmission
c) Twisted-pair wire
d) Integrated circuits
e) Cellular radio

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

69) Which of the following is a disadvantage of twisted-pair wire?

a) Availability
b) Cost
c) Flexibility
d) Speed

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

70) Which of the following is not a characteristic of twisted-pair wire?

a) Inexpensive
b) Easy to work with
c) Subject to interference from other electrical sources
d) Secure transmissions
e) None of these

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

71) Which of the following is an advantage of coaxial cable?


Rainer, Information System, Third Canadian Edition Testbank

a) Cost
b) Flexibility
c) Security
d) All of the above are advantages

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

72) The cable medium with the highest bandwidth is:

a) Twisted-pair wire
b) Coaxial cable
c) Fiber-optic cable
d) Cellular radio
e) Copper cable

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

73) Data are sent through a fiber-optic cable by a(n) _______.

a) Optical switch
b) Electromagnetic switch
c) Laser
d) Multiplexer
e) Optical modem

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

74) _____________ is a data transmission technology that uses packet switching and allows for almost
unlimited bandwidth on demand.

a) Asynchronous Transfer Mode


Rainer, Information System, Third Canadian Edition Testbank

b) Digital Subscriber Line


c) Synchronous Optical Network
d) T-Carrier System

Answer: a

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

75) Which data transmission technology requires fiber-optic cable, can transmit up to 2.5 gigabits per
second, and is more expensive than DSL?

a) Digital subscriber line


b) Asynchronous transfer mode
c) Synchronous optical network
d) T-carrier system
e) ISDN

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

76) Which transmission technology is an interface standard for transporting digital signals over fiber-
optic lines that enables the integration of transmissions from multiple vendors?

a) Digital subscriber line


b) Asynchronous transfer mode
c) Synchronous optical network
d) T-carrier system
e) ISDN

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

77) The _______________ layer of TCP/IP provides the addressing, routing, and packaging of data
packets.
Rainer, Information System, Third Canadian Edition Testbank

a) Application
b) Internet
c) Network interface
d) Transport

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

78) Which of the following is a digital transmission system that defines circuits that operate at different
rates, all of which are multiples of the basic 64 Kbps used to transport a single voice call?

a) Digital subscriber line


b) Asynchronous transfer mode
c) Synchronous optical network
d) T-carrier system
e) ISDN

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

79) In order to ensure that computers developed by different manufacturers can communicate, _____
have been developed.

a) Protocols
b) Client/server architectures
c) WANs
d) Application software packages
e) Developmental architectures

Answer: a

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

80) A protocol is:

a) A device that handles the switching of voice and data in a local area network.
b) A standard set of rules and procedures for the control of communications in a network.
c) A communications service for the connection of devices in a local area network.
d) The main communications channel in a wide-area network.
e) Synonymous with network interface card.

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

81) The __________ type of peer-to-peer processing is real-time, person-to-person collaboration.

a) first
b) second
c) third
d) fourth

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

82) The part of a network that handles the major traffic is the ________.

a) Front end
b) Network interface
c) Multiplexer
d) Backbone
e) Front end processor

Answer: d

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

83) Which of the following enables users to send data across sometimes unreliable networks?
Rainer, Information System, Third Canadian Edition Testbank

a) Ethernet
b) TCP/IP
c) Protocols
d) Digital subscriber lines
e) Integrated services digital network

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

84) In TCP/IP, IP is responsible for:

a) Disassembling and reassembling of packets during transmission.


b) Establishing the Internet connection between two computers.
c) Moving packets over the network.
d) Sequencing the transfer of packets across the network.
e) Error checking.

Answer: a

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

85) Which of the following statements concerning packet switching is not true?

a) Packets contain a sequence number.


b) Packets are routed through different paths.
c) Packets require dedicated circuits.
d) Packets use TCP/IP to carry their data.
e) Packets contain destination addressing.

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

86) A type of processing that links two or more computers in an arrangement in which some machines
provide computing services for user computers is best described as _______.

a) Open systems
b) Client/server
c) Peer-to-peer
d) Centralized
e) Mainframe-centric

Answer: b

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Easy

87) BitTorrent uses a process called _____, which eliminates file-sharing bottlenecks by having everyone
share little pieces of a file at the same time.

a) Leeching
b) Collaboration
c) Packet switching
d) Torrents
e) Swarming

Answer: e

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

88) Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a
point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless
access to the Internet) that can be carried around the store to look up current items in stock, or to
search for items from one of his suppliers for special orders. Which type of media does he likely use to
connect the point-of-sale terminal to the desktop?

a) Twisted-pair wire
b) Coaxial cable
c) Fiber-optic cable
d) Cellular radio
e) Copper cable

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

89) Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a
point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless
access to the Internet) that can be carried around the store to look up current items in stock, or to
search for items from one of his suppliers for special orders. Which of the following statements is true?

a) Gal must have a Web site in order to use his notebook.


b) The notebook is on the same network as the point-of-sale terminal.
c) Gal must have an ISP in order to access the Internet from his notebook.
d) The notebook will work only when the desktop computer is turned on.
e) All of these are true

Answer: c

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

90) An ______________ is a restricted network within a company.

a) extranet
b) internet
c) intranet
d) insidenet

Answer: c

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

91) The _____ is a global wide-area network that connects approximately 1 million organizational
computer networks.

a) Ethernet
b) Extranet
c) Internet
d) Intranet
e) World Wide Web
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

92) A ______________ allows companies to establish a direct, secure, private network link to their
internal systems.

a) PAN
b) DSL
c) UPS
d) VPN

Answer: d

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

93) A(n) _____ is a network designed to serve the internal informational needs of a single organization.

a) Global network
b) Extranet
c) Internet
d) Intranet
e) World Wide Web

Answer: d

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

94) A ______________ offers limited accessibility inside the organization.

a) extranet
b) internet
c) intranet
d) insidenet

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

95) A(n) _____ connects parts of the intranets of different organizations and allows secure
communications among business partners.

a) Global network
b) Extranet
c) Internet
d) Intranet
e) World Wide Web

Answer: b

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

96) Internet service providers connect to one another through _____.

a) Internet connection points


b) Common carrier connection points
c) Network access points
d) Network connection points
e) An extranet

Answer: c

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

97) Domain names are read from __________ to __________.

a) bottom, top
b) top, bottom
c) left, right
d) right, left

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

98) _____ are Internet access points that are located in public places, such as libraries and airports.

a) Clients
b) Servers
c) Internet access computers
d) Network computer
e) Internet kiosks

Answer: e

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

99) Each site on the Internet gets an assigned address, which is a(n) _____.

a) TCP address
b) IP address
c) URL address
d) ISO/OSI identifier
e) World Wide Web address

Answer: c

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

100) What is NOT something browser companies focus on to gain competitive advantage.

a) Security
b) Download speeds
c) Add-ons
d) Cloud computing

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Medium

101) Consider this domain name, www.business.gsu.edu. The “edu” is the _______.

a) Top-level domain
b) URL
c) Web site locator
d) Name of the computer
e) Address of the Webmaster

Answer: a

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

102) Consider this domain name, www.business.gsu.edu. The “gsu” is the __________.

a) Top-level domain
b) Name of the organization
c) URL
d) Name of the specific computer
e) Address of the Webmaster

Answer: b

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

103) Internet Explorer’s first browser battle was with ___________.

a) Apple Safari
b) Google Chrome
c) Mozilla Firefox
d) Netscape Navigator

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Medium

104) Consider this domain name, www.business.gsu.edu. The “business” is the ________.

a) Top-level domain
b) Name of the organization
c) URL
d) Name of the specific computer
e) Address of the Webmaster

Answer: d

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

105) Applications offered by the Internet2 include which of the following?

a) remote diagnosis
b) digital libraries
c) distance education
d) virtual laboratories
e) all of these

Answer: e

Learning Objective: Differentiate between the Internet and the World Wide Web, and describe the most
common methods for accessing the Internet.
Section Reference: 4.3 The Internet and the World Wide Web
Difficulty: Easy

106) A _____________ portal supports communities such as hobby groups or political parties.

a) affinity
b) commercial
c) corporate
d) industrywide

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

107) A ___________ portal is the most popular portal on the Internet.

a) affinity
b) commercial
c) corporate
d) industrywide

Answer: b

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

108) Networks enable which of the following applications?

a) Discovery
b) Communications
c) Collaboration
d) Web services
e) All of these

Answer: e

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

109) Which of the following are advantages of computer networks?

a) They enable organizations to be more flexible.


b) They enable companies to share hardware, computer applications, and data.
c) They enable geographically dispersed employees to work together.
d) They provide a critical link between businesses and their customers.
e) All of these

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

110) Which network application(s) enable(s) users to access information located in databases all over
the world?

a) Discovery
b) Communications
c) Collaboration
d) Web services
e) None of these

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

111) ___________ is(are) the largest-volume application running on the Internet.

a) E-mail
b) Chat rooms
c) FTP
d) The World Wide Web

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

112) Which of the following statements about publication of material in foreign languages is not
correct?

a) It is a competitive necessity.
b) It must be accurate.
c) It is expensive.
d) Content must be localized to the needs of people in local markets.
e) It is not yet a major consideration for most companies.

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: 4.4 Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

113) ___________ is(are) the latest version of videoconferencing.

a) Real-time collaboration
b) Teleconferencing
c) Telepresence systems
d) Web conferencing

Answer: c

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

114) _____ portals offer content for diverse communities and are intended for broad audiences.

a) Industrywide
b) Personal
c) Affinity
d) Corporate
e) Commercial

Answer: e

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

115) _____ portals support communities such as hobby groups or political parties.

a) Industrywide
b) Personal
c) Affinity
d) Corporate
e) Commercial

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

116) Which of the following is a drawback of e-learning?

a) Equipment needs
b) Flexibility
c) Time to learn
d) Training costs

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

117) _____ portals coordinate content within relatively narrow organizational and partners’
communities.

a) Publishing
b) Personal
c) Affinity
d) Corporate
e) Commercial

Answer: d

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

118) Many organizations have implemented corporate portals for which of the following reasons?

a) To cut costs
b) To free up time for busy managers
c) To improve profitability
d) To offer customers self-service opportunities
e) All of these

Answer: e
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

119) Which of the following is a benefit of telecommuting for employees?

a) Productivity
b) Retention
c) Stress-levels
d) Visibility

Answer: c

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

120) Portals are an example of which network application?

a) Discovery
b) Collaboration
c) Communications
d) Web services
e) None of these

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

121) With _____, every call opens up a dedicated circuit for the duration of the call.

a) Voice over IP
b) Plain old telephone service
c) Chat rooms
d) Teleconference
e) Internet relay chat

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

122) Which of the following is a disadvantage of telecommuting for employers?

a) Isolation
b) Promotion
c) Supervision
d) Visibility

Answer: c

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

123) With _____, phone calls are treated as just another kind of data.

a) Voice over IP
b) Plain old telephone service
c) Chat rooms
d) Teleconference
e) Internet relay chat

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

124) Skype is an example of _______.

a) Teleconference
b) Telepresence
c) Plain old telephone service
d) Voice over IP
e) Videoconference

Answer: d
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

125) Workflow, groupware, and telepresence systems are examples of which network application?

a) Discovery
b) Communications
c) Collaboration
d) Web services
e) None of these

Answer: c

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

126) The newest type of videoconferencing technology is ________.

a) Teleconferencing
b) Telepresence
c) Work group analysis software
d) Workflow software
e) Groupware

Answer: b

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

127) In a _____ system, participants are able to seamlessly and electronically share data, voice, images,
graphics, and animation.

a) Teleconference
b) Group decision support
c) Telepresence
d) Telephone conference call
e) Crowdsourcing

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

128) The benefits of e-learning include which of the following?

a) Increased content retention


b) Current, high-quality content
c) Consistency
d) Flexibility
e) All of these

Answer: e

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

129) Which of the following is not a disadvantage of telecommuting for employees?

a) Fewer opportunities for housebound people


b) Possible loss of fringe benefits
c) Lower pay (in some cases)
d) No workplace visibility
e) Slower promotions

Answer: a

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

130) Refer to Opening Case – The Network Neutrality Wars: Which of the following is not a challenge for
achieving net neutrality?

a) The amount of video traffic on the Internet is increasing.


b) Under current models, the investment required to meet future demand exceeds projected revenue
growth.
c) Net neutrality might hinder U.S. competitiveness.
d) Network providers could censor certain content by slowing down or blocking access.
e) Telecommunications and cable companies are in favor of net neutrality.
Rainer, Information System, Third Canadian Edition Testbank

Answer: e

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Easy

131) Which of the following is NOT a goal of Qwiki?

a) To turn information into an experience


b) To personalize their page to every user
c) To create a superior a video experience
d) All of the above are goals of Qwiki

Answer: C

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section: IT’s About Business: Informative Videos on the Fly
Difficulty: Hard

132) Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a
point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless
access to the Internet) that can be carried around the store to look up current items in stock, or to
search for items from one of his suppliers for special orders. Which type of network application is being
used when a salesperson is looking up items in stock?

a) Discovery
b) Communications
c) Collaboration
d) Web services
e) None of these

Answer: e

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

133) Gal runs a music store. He has a desktop computer in the back room that acts as a server. He has a
point-of-sale terminal that connects to the desktop. He also has a notebook (using in-store wireless
access to the Internet) that can be carried around the store to look up current items in stock, or to
Rainer, Information System, Third Canadian Edition Testbank

search for items from one of his suppliers for special orders. The Web site for the store is
www.GalsTunes.net. Which of the following is true?

a) Gal must be hosting his Web site on his own desktop computer based on its URL.
b) The point-of-sale terminal cannot connect to the Internet.
c) Gal must not be selling on his Web site because the top-level domain is “net” and not “com.”
d) The desktop computer must also be able to connect to the Internet in order for the notebook to
access data from it.
e) All of these are true.

Answer: b

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

Question Type: Short Answer

134) Differentiate between analog signals and digital signals.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

135) Describe the various communications processors.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

136) Differentiate among twisted-pair wire, coaxial cable, and fiber-optic cable.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

137) Explain what network protocols are and why they are important.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

138) Describe the three basic types of peer-to-peer processing.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

139) Describe the benefits of networks to organizations.

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

140) Describe the four network applications.

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

141) Describe the various types of portals.

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

142) What are the benefits and limitations of telecommuting? For individuals? For organizations?

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Medium

Question Type: Essay Questions


Rainer, Information System, Third Canadian Edition Testbank

143) What does the following statement mean: “Without networks, the computer on your desk would
be merely another productivity tool, just like the typewriter once was”?

Learning Objective: Summarize the fundamental concepts and skills related to computer networks.
Section Reference: Chapter 6
Difficulty: Hard

144) Differentiate among local area networks, wide-area networks, and value-added networks.

Learning Objective: Define the term computer network, and compare and contrast the two major types
of networks.
Section Reference: 4.1 What Is a Computer Network?
Difficulty: Medium

145) Describe the functions of the TCP/IP protocol.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

146) Differentiate between client/server computing and peer-to-peer processing.

Learning Objective: Describe the differences among the three types of wireline communications media,
and discuss the main advantages and disadvantages of each type.
Section Reference: 4.2 Network Fundamentals
Difficulty: Medium

147) What are the implications of telepresence systems? Include in your answer the uncertain safety in
many parts of the world.

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Hard

148) Discuss the advantages of voice over IP for organizations.

Learning Objective: Identify six major categories of network applications, provide an example of each
one, and explain how that application supports business functions.
Section Reference: 4.4 Internet Network Applications
Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

Legal Notice

Copyright © 2014 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.

The data contained in these files are protected by copyright. This manual is furnished under
licence and may be used only in accordance with the terms of such licence.

The material provided herein may not be downloaded, reproduced, stored in a retrieval system,
modified, made available on a network, used to create derivative works, or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise
without the prior written permission of John Wiley & Sons Canada, Ltd.
Rainer, Information System, Third Canadian Edition Testbank

Chapter 5
E-business and E-commerce

Question Type: True/False

1) In traditional commerce, one or more of the following can be digital: the product or service, the process, and
the delivery agent.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

2) You decide to start a landscaping business called Trim Grass. You type www.TrimGrass.com in a Web browser,
and no page with that name appears. The domain name is therefore available.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

3) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you
want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

4) It is possible to “watch” vending machines over the Internet.

Answer: True

Learning Objective: Provide a real-world application of e-business and e-commerce.


Section Reference: IT’s About Business: Vending Goes Online
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

5) E-commerce is a broader definition of e-business.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

6) eBay is a good example of business-to-consumer electronic commerce.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

7) Forward auctions are auctions that sellers use as a channel to many potential buyers.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

8) In a forward auction, the highest bid wins.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

Question Type: Multiple Choice


Rainer, Information System, Third Canadian Edition Testbank

9) You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer
treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following
methods to purchase the fertilizer except:

a) Forward auction
b) Reverse auction
c) Name your Own Price
d) Electronic Marketplace
e) Multichanneling

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

10) You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn’t seem to
be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising
methods probably would not be beneficial?

a) Banner ads
b) Pop-up or pop-under ads
c) Spamming
d) Permission marketing
e) Viral marketing

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

11) You decide to start a landscaping business called Trim Grass. Some of your residential clients would like to
pay their bills online. Which of the following methods will not be appropriate for this type of payment?

a) Electronic checks
b) Electronic credit cards
c) Purchasing cards
d) Person-to-person payments
e) Stored–value money cards

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

12) You decide to start a landscaping business called Trim Grass. You expect to use the Web to help clients find
you and communicate with you. You will mow lands, clean flower beds, and pick up leaves in the fall. You will
send your clients monthly bills. Which of the following is true?

a) Trim Grass is using an e-commerce model.


b) Trim Grass is using an e-business model.
c) Trim Grass is using a forward auction.
d) Trim Grass is an electronic marketplace.
e) Trim Grass needs to worry about channel conflict.

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

13) You have been running a landscaping business called Trim Grass for about two years. You have developed a
special blend of grass seed for your area that you use when you reseed your clients’ lawns. You are receiving e-
mails via your Web site from people who would like to purchase some. You decide to start selling seed online,
and you hire someone to rebuild your Web site. Which of the following statements is not true?

a) Trim Grass is now multichanneling.


b) Trim Grass needs to think about how to ship the seed.
c) Trim Grass will have to collect sales tax from all sales.
d) Trim Grass will have more expenses.
e) Trim Grass will need to consider different advertising methods.

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

Question Type: True/False

14) Even though B2C EC is much larger by volume, B2B is more complex.
Rainer, Information System, Third Canadian Edition Testbank

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

15) An electronic storefront is a Web site on the Internet that represents a single store.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

16) You can make a purchase in a referral mall.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

17) Selling products such as books and computers on the Internet may reduce vendors’ selling costs by 20 to 40
percent, with further reductions being difficult because the products must be delivered physically.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

18) A virtual bank involves conducting banking activities from home, a place of business, or on the road in
addition to a physical bank location.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

19) It is more difficult but possible to sell luxury goods online.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

20) Virtual banks are those banks that are dedicated only to Internet transactions.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

21) Channel conflict occurs when click-and-mortar companies have problems with their regular distributors
when they sell directly to customers online.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

22) Internet advertising is impersonal, one-way mass communication.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

23) Electronic malls are collections of individual shops under a single Internet address.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

24) Banners are the most common form of advertisement on the Internet.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

25) Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

26) Business-to-consumer applications comprise the majority of electronic commerce volume.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

27) Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products
directly to consumers.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

28) The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

29) Forward auctions are the major method used in buy-side marketplaces.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

30) The buy-side marketplace is similar to the business-to-consumer model.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

31) When multiple buyers combine their orders so that they constitute a large volume and therefore attract
more seller attention, it is called group purchasing.

Answer: True

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

32) Horizontal exchanges connect buyers and sellers across many industries.

Answer: True

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

33) In most cases, traditional payment systems are not effective for electronic commerce.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

34) Stored-value money cards allow you to store a fixed amount of prepaid money and then spend it as
necessary.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

35) Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

36) Purchasing cards and electronic credit cards are equivalent.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Medium

37) Each buyer needs only one e-wallet for all merchants.

Answer: False

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

38) Cybersquatting is illegal.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 5.4 Electronic Payments


Difficulty: Medium

39) Selling luxury items online is as easy as selling books and DVDs.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: IT’s About Business: 5.3 Luxury Goods Turn to E-Commerce
Difficulty: Easy

40) Domain tasting is a practice of registrants using the five-day “grace period” at the beginning of a domain
registration to profit from pay-per-click advertising.

Answer: True

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium

Question Type: Multiple Choice

41) Treat America used _____________ to report on their vending machines.

a) e-business
b) e-commerce
c) the police
d) their service team

Answer: a

Learning Objective: Provide a real-world application of e-business and e-commerce.


Section: IT’s About Business: Vending Goes Online
Difficulty: Easy

42) _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as
servicing customers, collaborating with business partners, and performing transactions within an organization.

a) Business-to-business electronic commerce, business-to-customer electronic commerce


b) Electronic commerce, electronic business
c) Business-to-customer electronic commerce, business-to-business electronic commerce
d) Business-to-business electronic commerce, intrabusiness electronic commerce
e) Electronic business, electronic commerce
Rainer, Information System, Third Canadian Edition Testbank

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

43) ____________ organizations have a limited geographical reach.

a) Brick-and-mortar
b) Business-to-consumer
c) Click-and-mortar
d) Virtual

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

44) The degree of digitization relates to all of the following except:

a) The product or service sold


b) The process by which the product is produced
c) The delivery agent or intermediary
d) The size of e-commerce transactions
e) None of these

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

45) In _______ e-commerce, the sellers and buyers are organizations.

a) government-to-citizen
b) consumer-to-consumer
c) business-to-business
d) business-to-consumer
e) consumer-to-business
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

46) In ________ e-commerce, an organization provides information and services to its workers.

a) business-to-employee
b) consumer-to-consumer
c) consumer-to-business
d) business-to-consumer
e) government-to-business

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

47) Which of the following is a disadvantage of click-and-mortar organizations?

a) Limited geographical reach


b) Added complexity combining two different environments
c) Customers uncomfortable with online transactions
d) No face-to-face interaction with customers

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

48) __________ represents the vast majority of e-commerce.

a) B2B
b) B2C
c) C2C
d) G2C

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

49) In a reverse auction, the __________ bidder wins.

a) lowest
b) highest
c) neutral
d) nobody wins since this auction type doesn’t exist

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

50) ___________ marketing encourages receivers to send information about products/services to their friends.

a) Affiliate
b) Electronic
c) Group
d) Viral

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

51) Which of the following is a benefit of e-commerce to customers?

a) Makes national and international markets more accessible.


b) Lowering costs of processing, distributing, and retrieving information.
c) Access a vast number of products and services around the clock.
d) Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas,
and developing countries.

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

52) Direct payment of Social Security benefits is an example of ______ e-commerce.

a) government-to-citizen
b) consumer-to-consumer
c) consumer-to-business
d) business-to-consumer
e) business-to-business

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

53) If you are an worker managing your fringe benefits over your company’s intranet, you are engaging in
_________ e-commerce.

a) business-to-business
b) business-to-consumer
c) consumer-to-consumer
d) business-to-employee
e) government-to-citizen

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

54) Which of the following statements regarding the relationship between electronic commerce and search is
not correct?

a) Purchases often follow successful online searches.


b) Shopping carts are often abandoned after unsuccessful online searches.
c) Retailers will provide fewer product details to avoid information overload for customers.
d) Customers will be able to find the closest store offering the product that they want.
e) Customers will have more relevant product information in the near future.
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

55) In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid
wins.

a) forward
b) static
c) reverse
d) physical
e) simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

56) eBay uses a _____ auction.

a) forward
b) static
c) reverse
d) physical
e) simple

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

57) _____ auctions employ a request for quotation.

a) Forward
b) Static
c) Reverse
Rainer, Information System, Third Canadian Edition Testbank

d) Physical
e) Simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

58) _____ auctions are the most common auction model for large purchases.

a) Forward
b) Static
c) Reverse
d) Physical
e) Simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

59) In which of the following business models do businesses request quotes from suppliers and use B2B with a
reverse auction mechanism?

a) Find-the-best-price
b) Electronic tendering system
c) Name-your-own-price
d) Online direct marketing
e) Affiliate marketing

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

60) A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo,
visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner. This scenario
illustrates which business model?
Rainer, Information System, Third Canadian Edition Testbank

a) Find-the-best-price
b) Electronic tendering system
c) Name-your-own-price
d) Online direct marketing
e) Affiliate marketing

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

61) Which type of electronic commerce is the largest by volume?

a) Business-to-employee
b) Consumer-to-consumer
c) Business-to-business
d) Business-to-consumer
e) None of these

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

62) ____________ advertising is when the company only pays for measurable results.

a) Brand
b) Click-through
c) Impression-based
d) Performance-based

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

63) Which of the following are luxury shoppers’ requirements that a Web site could not originally provide?

a) Hands-on customer service


Rainer, Information System, Third Canadian Edition Testbank

b) Guidance on the latest fashions


c) Trying on/looking at the products
d) All of the above are things that couldn’t originally be provided

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

64) Which type of electronic commerce does Amazon practice?

a) Business-to-employee
b) Consumer-to-consumer
c) Consumer- to-business
d) Business-to-consumer
e) Employee-to-business

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

65) _______ e-commerce is also known as e-tailing.

a) Business-to-business
b) Collaborative commerce
c) Intrabusiness
d) Business-to-consumer
e) Consumer-to-business

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

66) The advantages of electronic commerce for consumers include all of the following except:

a) You can buy from home 24 hours per day, 7 days per week.
b) You have a wider variety of products to choose from.
c) You typically cannot access additional information, so you do not have information overload.
d) You can easily compare prices and features.
Rainer, Information System, Third Canadian Edition Testbank

e) You can find unique items.

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

67) An electronic storefront represents ____________.

a) the Internet
b) a single store
c) multiple stores
d) a web page

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

68) ____________ is when steps are added to the value chain as new players find ways to add value to the
business process.

a) Cybermediation
b) Disintermediation
c) Intermediation
d) Reintermediation

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

69) __________ are electronic billboards.

a) Advertisements
b) Banners
c) Pop-up ads
d) Pop-under ads

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

70) Which of the following is not an electronic commerce application?

a) Home banking
b) Buying stocks
c) Evaluating an employee
d) Conducting an auction
e) Buying real estate

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

71) Which of the following is not an advantage of e-tailing?

a) You can buy from home, 24 hours per day.


b) You have only a few products to choose from.
c) You can obtain detailed information on products.
d) You can compare competitors’ products and prices.
e) All of these

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

72) ________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

a) Disintegration
b) Supply chain integration
c) Direct sales
d) Disintermediation
e) Value-added services

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce


Difficulty: Medium

73) Cyberbanking offers all of the following advantages except:

a) It is convenient for customers.


b) It saves time for customers.
c) It includes inexpensive transactions for the bank.
d) It can help recruit remote customers.
e) It is more expensive for the customer.

Answer: e

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

74) Which of the following is a problem that e-commerce can cause for the airline industry?

a) Too many fares


b) Mistakes in fares
c) Too few fares
d) No fares offered on certain routes
e) Too many fares offered on certain routes

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

75) Treat America turned to E-business for all of the following reasons except:

a) The company needed to capture extensive data from each vending machine.
b) The company wanted a competitive advantage over competitors that simply raised prices.
c) The company’s vending machines are unmanned.
d) Gas prices are increasing.
e) The company’s vending machines are open beyond “normal” business hours.

Answer: a

Learning Objective: Provide a real-world application of e-business and e-commerce.


Section Reference: IT’s About Small Business: 5.2 Vending Goes Online
Difficulty: Easy
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76) Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

a) Business-to-business
b) Business-to-consumer
c) Government-to-citizen
d) Business-to-employee
e) Mobile commerce

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

77) Internet advertising improves on traditional advertising in all of the following ways except:

a) Internet ads can be updated at any time at minimal cost.


b) Internet ads can reach large numbers of potential buyers all over the world.
c) Internet ads are always more effective than other types of advertising.
d) Internet ads can make effective use of multimedia.
e) Internet ads are current.

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

78) A _____ is automatically launched by some trigger and appears behind the active window.

a) keyword banner
b) random banner
c) pop-up ad
d) pop-under ad
e) text box

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

79) _____ offer(s) consumers incentives to accept advertising and e-mail voluntarily.
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a) Viral marketing
b) Personalized marketing
c) Permission marketing
d) Paper catalogs
e) Direct mail

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

80) _____ refers to online word-of-mouth marketing.

a) Permission marketing
b) One-to-one marketing
c) Personalized marketing
d) Viral marketing
e) Direct mail

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

81) The _________ marketplace is similar to the B2C model in which the buyer comes to the seller’s site, views
catalogs, and places and order.

a) buy-side
b) sell-side
c) reverse auction
d) e-procurement

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

82) ____________ exchanges connect buyers and sellers in a given industry.

a) Functional
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b) Horizontal
c) Mixed
d) Vertical

Answer: d

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

83) ____________ exchanges are used mostly for MRO materials.

a) Functional
b) Horizontal
c) Mixed
d) Vertical

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Medium

84) In the _____ marketplace model, organizations attempt to sell their products or services to other
organizations electronically.

a) buy-side
b) sell-side
c) group purchasing
d) desktop purchasing
e) electronic exchange

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

85) The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can
be customized for each large buyer.

a) buy-side
b) sell-side
c) group purchasing
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d) desktop purchasing
e) electronic exchange

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

86) In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to
reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

a) buy-side
b) sell-side
c) auctions
d) group purchasing
e) electronic exchange

Answer: a

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

87) In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large
volume, in order to merit more seller attention.

a) buy-side
b) sell-side
c) auctions
d) group purchasing
e) electronic exchange

Answer: d

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

88) In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

a) horizontal exchanges
b) vertical exchanges
c) buy-side marketplaces
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d) functional exchanges
e) sell-side marketplaces

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

89) _____ connect buyers and sellers across many industries and are used mainly for indirect materials.

a) Horizontal exchanges
b) Vertical exchanges
c) Buy-side marketplaces
d) Functional exchanges
e) Sell-side marketplaces

Answer: a

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

90) Purchasing cards are the ___________ equivalent of electronic credit cards.

a) B2B
b) B2C
c) C2C
d) G2C

Answer: a

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

91) _________ is(are) used for unplanned B2B purchases.

a) E-checks
b) Electronic credit cards
c) Purchasing cards
d) Stored value money cards

Answer: c
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Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

92) ____________ contain a chip called a microprocessor that can store a considerable amount of information.

a) E-checks
b) Person-to-person payments
c) Smart cards
d) Stored-value money cards

Answer: c

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

93) Which of the following is NOT a form of electronic cash?

a) Person-to-person payments
b) Purchasing cards
c) Smart cards
d) Stored-value money cards

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

94) All of the following are limitations of traditional payment methods in electronic commerce except:

a) Cash cannot be used because there is no face-to-face contact.


b) Paying for goods and services via the mail takes more time.
c) Not all organizations accept credit cards.
d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.
e) None of these

Answer: d

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
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Difficulty: Medium

95) _____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically,
with a signature in digital form.

a) Electronic checks
b) Electronic credit cards
c) Electronic cash transactions
d) Electronic wallets
e) Electronic debit cards

Answer: a

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

96) _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services.
They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer’s
and seller’s banks.

a) Electronic checks
b) Electronic credit cards
c) Electronic cash transactions
d) Electronic wallets
e) Electronic debit cards

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

97) _____ are typically used for unplanned B2B purchases for amounts under $2000.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: c

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
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Section Reference: 5.4 Electronic Payments


Difficulty: Easy

98) ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as
necessary.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

99) _____ contain a chip that can store information and be used for several purposes.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: d

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

100) _____ enable two individuals to transfer funds without using a credit card.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: e

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
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Difficulty: Easy

101) _____ are software mechanisms that provide security measures and convenience for electronic commerce
purchasing.

a) Electronic checks
b) Digital wallets
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

102) A _____________ is the right to use but not distribute software .

a) copyright
b) patent
c) intellectual property
d) open source

Answer: a

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

103) Domain tasting is _____________.

a) illegal
b) legal
c) the same as cybersquatting
d) both A and C

Answer: b

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium
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104) Selling bogus investments and setting up phantom business opportunities are examples of ____________.

a) cybersquatting
b) domain name abuse
c) fraud on the internet
d) internet taxation

Answer: c

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium

105) The practice of using similar but not identical domain names is called _____.

a) domain spoofing
b) domain masquerading
c) domain tasting
d) cybersquatting
e) domain fraud

Answer: c

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

106) _____ refers to the practice of registering or using domain names for the purpose of profiting from the
goodwill or trademark belonging to someone else.

a) Domain spoofing
b) Domain masquerading
c) Domain tasting
d) Cybersquatting
e) Domain fraud

Answer: d

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

107) The device that Treat America installed on top of each of their machines communicates the following
pieces of data except:
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a) The amount of money in the machine at any given minute.


b) The amount of product inventory remaining.
c) Whether the machine had been moved.
d) The number of customers.
e) Whether the door had been opened after business hours.

Answer: d

Learning Objective: Provide a real-world application of e-business and e-commerce.


Section Reference: IT’s About Small Business: 5.2 Vending Goes Online
Difficulty: Easy

108) Companies use Web sites for all of the following reasons except:

a) To reduce operational and transaction costs.


b) To enhance their reputation.
c) To sell goods and services.
d) To reduce the amount of actual cash they need to deal with.
e) To induce people to visit a physical location.

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

109) Which of the following is NOT a reason eBay was unsuccessful when it purchased EachNet?

a) eBay paid too much


b) eBay didn’t give enough power to local executives
c) eBay underestimated the competition from Taobao
d) all of the above are reasons eBay was unsuccessful

Answer: a

Learning Objective: Summarize the fundamental concepts related to e-business and e-commerce.
Section Reference: Case - e-Bay finds it’s a way into China
Difficulty: Medium

Question Type: Essay

110) Differentiate between pure and partial electronic commerce. Provide examples of companies in each
category.
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Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

111) Discuss the various types of electronic commerce.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

112) Differentiate between forward and reverse auctions.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

113) Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Hard

114) Differentiate between electronic storefronts and electronic malls, and provide examples of each.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

115) Discuss the reasons for E-commerce failures.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
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116) Discuss the benefits and limitations of electronic commerce.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

117) Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic
malls).

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Hard

118) Discuss the various methods of online advertising.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Hard

119) Discuss the following electronic commerce business models and give examples of each type: online direct
marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate marketing, and viral
marketing.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

120) Describe the various types of electronic payments.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Hard

121) What is domain tasting? Should it be made illegal?

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
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Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

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