Using MIS, 3e (Kroenke)

Chapter 1 The Importance of MIS

1.1 True/False Questions

1) Moore's Law states that the speed of a computer doubles every 18 months.

Answer: FALSE

Diff: 1 Page Ref: 4

AACSB: Use of IT

Study Question: Study Question 1

2) The fact that the cost of data communications and data storage has essentially come down to zero is an example of Moore's Law in action.

Answer: TRUE

Diff: 1 Page Ref: 4

AACSB: Use of IT

Study Question: Study Question 1

3) The emergence of YouTube could be considered a consequence of Moore's Law.

Answer: TRUE

Diff: 1 Page Ref: 4

AACSB: Reflective thinking

Study Question: Study Question 1

4) One consequence of Moore's Law is that routine skills will be internalized by high-value organizations.

Answer: FALSE

Diff: 2 Page Ref: 5

AACSB: Reflective thinking

Study Question: Study Question 1

5) According to the RAND study cited in the text, strong nonroutine cognitive skills are the most important marketable skills in the new millennium.

Answer: TRUE

Diff: 2 Page Ref: 6

AACSB: Analytic skills

Study Question: Study Question 1

6) While those students majoring in finance and information systems are expected to have only routine cognitive skills, those in marketing or information systems need to develop strong non-routine cognitive skills.

Answer: FALSE

Diff: 2 Page Ref: 6

AACSB: Analytic skills

Study Question: Study Question 1


7) Abstract reasoning is the ability to make and manipulate models.

Answer: TRUE

Diff: 1 Page Ref: 6

AACSB: Analytic skills

Study Question: Study Question 1

8) During a feedback session, Symonds tells his manager that he is finding it difficult to trace the mean value of the data from the consumer survey. Symonds seems to be lacking systems thinking skills.

Answer: FALSE

Diff: 3 Page Ref: 6, 7

AACSB: Reflective thinking

Study Question: Study Question 1

9) Sheila, the operations manager at a software development firm, finds from Reuben's teammates that he rarely asks for feedback and when provided, does not seem to respond positively to it. Reuben seems to be lacking collaboration skills.

Answer: TRUE

Diff: 3 Page Ref: 6, 7

AACSB: Reflective thinking

Study Question: Study Question 1

10) Fear of failure is one of the main reasons for the lack of systems thinking among employees.

Answer: FALSE

Diff: 2 Page Ref: 7

AACSB: Reflective thinking

Study Question: Study Question 1

11) Being able to connect the rise in sugar prices to the supply cap of petrol products by OPEC countries is an example of abstract reasoning.

Answer: FALSE

Diff: 2 Page Ref: 6

AACSB: Reflective thinking

Study Question: Study Question 1

12) Abstract reasoning is an example of routine cognitive skills.

Answer: FALSE

Diff: 2 Page Ref: 6

AACSB: Reflective thinking

Study Question: Study Question 1

13) Effective communication is an example of routine non-cognitive skills.

Answer: FALSE

Diff: 2 Page Ref: 6

AACSB: Reflective thinking

Study Question: Study Question 1


14) Surveys indicate the single most important skill for effective collaboration is the ability to interpret nonverbal communication.

Answer: FALSE

Diff: 2 Page Ref: 7

AACSB: Analytic skills

Study Question: Study Question 1

15) Wesley is quite popular in the office for being nice to others. He seems to have effective collaboration skills.

Answer: FALSE

Diff: 2 Page Ref: 7

AACSB: Reflective thinking

Study Question: Study Question 1

16) Systems thinking is when you develop ideas and plans with others.

Answer: FALSE

Diff: 1 Page Ref: 7

AACSB: Analytic skills

Study Question: Study Question 1

17) In a volatile business scenario, professionals should not allow themselves to be limited by fear of failure.

Answer: TRUE

Diff: 2 Page Ref: 7

AACSB: Reflective thinking

Study Question: Study Question 1

18) An information system is a group of components that interact to produce information.

Answer: TRUE

Diff: 2 Page Ref: 8

AACSB: Use of IT

Study Question: Study Question 2

19) The three key elements in the definition of MIS are: development and use, information systems, and business goals and objectives.

Answer: TRUE

Diff: 1 Page Ref: 8

AACSB: Analytic skills

Study Question: Study Question 2

20) There are six fundamental components in every information system.

Answer: FALSE

Diff: 2 Page Ref: 8

AACSB: Use of IT

Study Question: Study Question 2


21) The words, sentences, and paragraphs in your status report are examples of the "data" component of an information system.

Answer: TRUE

Diff: 2 Page Ref: 8

AACSB: Analytic skills

Study Question: Study Question 2

22) Management information systems is defined as the development and use of information systems that help businesses achieve their goals and objectives.

Answer: TRUE

Diff: 2 Page Ref: 8

AACSB: Use of IT

Study Question: Study Question 2

23) The number of components of an information system increases with increasing system complexity.

Answer: FALSE

Diff: 2 Page Ref: 8-9

AACSB: Analytic skills

Study Question: Study Question 3

24) One needs to have hardware or computer programming skills to build or use an information system.

Answer: FALSE

Diff: 2 Page Ref: 9

AACSB: Analytic skills

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25) To correctly be called an information system, a computer of some sort must be involved.

Answer: FALSE

Diff: 2 Page Ref: 9

AACSB: Analytic skills

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26) Organizations do not expect accounting or marketing majors to know how to build information systems.

Answer: FALSE

Diff: 2 Page Ref: 9

AACSB: Analytic skills

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27) Even if you are not technically qualified, you are still required to help in the development project of information systems by specifying the system requirements.

Answer: TRUE

Diff: 2 Page Ref: 9

AACSB: Analytic skills

Study Question: Study Question 3

28) The components of the information systems framework are symmetrical.

Answer: TRUE

Diff: 1 Page Ref: 10

AACSB: Analytic skills

Study Question: Study Question 3

29) A compelling reason for companies to develop an information system is to avoid "falling behind the technology curve."

Answer: FALSE

Diff: 2 Page Ref: 10

AACSB: Reflective thinking

Study Question: Study Question 2

30) Buying a computer, working with a spreadsheet, or creating a Web page are the three major instances of an information systems implementation.

Answer: FALSE

Diff: 2 Page Ref: 10

AACSB: Reflective thinking

Study Question: Study Question 3

31) In the information systems framework, data is the bridge between the computer side on the left and the human side on the right.

Answer: TRUE

Diff: 2 Page Ref: 10

AACSB: Analytic skills

Study Question: Study Question 3

32) In an information systems model, the software and procedure components are both sets of instructions.

Answer: TRUE

Diff: 2 Page Ref: 11

AACSB: Analytic skills

Study Question: Study Question 3

33) Information systems have globally standardized allocations for the amount of work that is moved from the human side to the computer side.

Answer: FALSE

Diff: 2 Page Ref: 11

AACSB: Analytic skills

Study Question: Study Question 3

34) Hardware is the most important component in the component framework of information systems.

Answer: FALSE

Diff: 2 Page Ref: 11

AACSB: Use of IT

Study Question: Study Question 3

35) When you consider the components of an information system, the last component includes you.

Answer: TRUE

Diff: 1 Page Ref: 11

AACSB: Analytic skills

Study Question: Study Question 3

36) A perfect information system is one in which the quality of your thinking is not important to the quality of information produced.

Answer: FALSE

Diff: 2 Page Ref: 11

AACSB: Reflective thinking

Study Question: Study Question 3

37) Substantial cognitive research has shown that although you cannot increase your basic IQ, you can dramatically increase the quality of your thinking.

Answer: TRUE

Diff: 2 Page Ref: 11

AACSB: Analytic skills

Study Question: Study Question 3

38) A system that consists only of a file of email addresses and an email program is a low-tech system with considerable work still left for human intervention.

Answer: TRUE

Diff: 2 Page Ref: 12

AACSB: Analytic skills

Study Question: Study Question 3

39) The five-component framework is limited to assessing the scope of existing systems and needs to be revised when assessing the scope of new systems.

Answer: FALSE

Diff: 2 Page Ref: 12

AACSB: Analytic skills

Study Question: Study Question 3

40) Creating new databases or changing the structure of existing databases is more difficult than obtaining or developing new programs.

Answer: TRUE

Diff: 2 Page Ref: 12

AACSB: Analytic skills

Study Question: Study Question 3

41) In a study of daybreak timings across the world, the fact that the sun rose this morning at 6:25 a.m. in Atlanta is an example of data.

Answer: TRUE

Diff: 2 Page Ref: 12

AACSB: Reflective thinking

Study Question: Study Question 4

42) Data is the knowledge derived from information.

Answer: FALSE

Diff: 1 Page Ref: 12

AACSB: Analytic skills

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43) What is data to one person may be information to another.

Answer: TRUE

Diff: 2 Page Ref: 13

AACSB: Reflective thinking

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44) The average wait time for a customer at a call center is an example of data.

Answer: FALSE

Diff: 1 Page Ref: 13

AACSB: Reflective thinking

Study Question: Study Question 4

45) When data is presented within a meaningful context, it becomes information.

Answer: TRUE

Diff: 2 Page Ref: 13

AACSB: Analytic skills

Study Question: Study Question 4

46) The information that is the output of one process can be viewed as a data input to another process.

Answer: TRUE

Diff: 2 Page Ref: 13

AACSB: Reflective thinking

Study Question: Study Question 4

47) A future user of information systems has to rely on information if it appears in the context of a Web page in a well-formatted report.

Answer: FALSE

Diff: 1 Page Ref: 16

AACSB: Analytic skills

Study Question: Study Question 5

48) An important thing to remember when you begin to use a new information system is to begin with skepticism.

Answer: TRUE

Diff: 1 Page Ref: 16

AACSB: Analytic skills

Study Question: Study Question 5


49) When you participate in the development of an IS, timeliness will be part of the requirements you will ask for.

Answer: TRUE

Diff: 1 Page Ref: 16

AACSB: Analytic skills

Study Question: Study Question 5

50) Information relevance is an important characteristic of good information.

Answer: TRUE

Diff: 1 Page Ref: 17

AACSB: Analytic skills

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51) A good information system is one that provides the user with as much information as it can gather.

Answer: FALSE

Diff: 2 Page Ref: 17

AACSB: Analytic skills

Study Question: Study Question 5

52) The cost of gathering information should be analyzed just like any other corporate asset.

Answer: TRUE

Diff: 2 Page Ref: 17

AACSB: Analytic skills

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53) Barely sufficient information is a handicap in decision-making as today's business decisions require analysis of large amounts of data.

Answer: FALSE

Diff: 1 Page Ref: 17

AACSB: Reflective thinking

Study Question: Study Question 5

54) The higher you rise in an organization the less information you will need to work with.

Answer: FALSE

Diff: 1 Page Ref: 17

AACSB: Reflective thinking

Study Question: Study Question 5

55) Information is worth its cost when the cost of acquiring it breaks even with the returns expected.

Answer: FALSE

Diff: 2 Page Ref: 17

AACSB: Analytic skills

Study Question: Study Question 5


56) For information to be relevant, there must be an appropriate relationship between the cost of the information and its value.

Answer: FALSE

Diff: 2 Page Ref: 17

AACSB: Analytic skills

Study Question: Study Question 5

57) Information technology and information systems are synonymous.

Answer: FALSE

Diff: 2 Page Ref: 18

AACSB: Analytic skills

Study Question: Study Question 6

58) Information systems drive the development of information technology.

Answer: FALSE

Diff: 2 Page Ref: 18

AACSB: Reflective thinking

Study Question: Study Question 6

59) Components of information systems are too abstract to be subjected to the same financial analyses to which other assets are subjected.

Answer: FALSE

Diff: 3 Page Ref: 18

AACSB: Analytic skills

Study Question: Study Question 6

60) You can buy information technology, but you can never buy an information system.

Answer: TRUE

Diff: 2 Page Ref: 18

AACSB: Use of IT

Study Question: Study Question 6

1.2 Multiple Choice Questions

1) Moore's Law states that the number of transistors per square inch on an integrated chip doubles every ______months.

A) 6

B) 12

C) 18

D) 24

Answer: C

Diff: 1 Page Ref: 4

AACSB: Use of IT

Study Question: Study Question 1


2) Because of Moore's Law, the cost of data communications and data storage is essentially zero. The growth of which of the following is a consequence of this?

A) LinkedIn

B) direct marketing

C) Windows Vista

D) Six Sigma methodologies

Answer: A

Diff: 3 Page Ref: 4

AACSB: Use of IT

Study Question: Study Question 1

3) ______is the ability to make and manipulate models.

A) Abstract reasoning

B) Structural logic

C) Systems thinking

D) Experimentation

Answer: A

Diff: 2 Page Ref: 6

AACSB: Analytic skills

Study Question: Study Question 1

4) The four component skills necessary to develop strong nonroutine cognitive skills include all of the following except:

A) abstract reasoning.

B) systems thinking.

C) collaboration.

D) computer programming skills.

Answer: D

Diff: 3 Page Ref: 6-7

AACSB: Analytic skills

Study Question: Study Question 1

5) ______refers to the ability to model system components and show how the component inputs and outputs relate to one another.

A) Abstract reasoning

B) Systems thinking

C) Dynamic correlation

D) Operational logic

Answer: B

Diff: 2 Page Ref: 7

AACSB: Analytic skills

Study Question: Study Question 1


6) Mae proposes a new social networking model to her boss. She illustrates the model on the whiteboard and describes how this could cater to a growing demand among Internet users. She also explains how their firm could profitably serve this need. Mae is exhibiting ______skills.