Foundations of Information Systems in Business: Multiple Choice Questions

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Chapter 1

Foundations of Information Systems in Business


 

Multiple Choice Questions


 

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44. Information technology can be used to support _______________. 
(p. 4)
 

A. product development teams


B.  customer support processes
C.  any other business activity
D. All the choices are correct.

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45. In its simplest form, a system consists of all the following except: 
(p. 4)
 

A. A group of cooperative users


B.  A set of interrelated components
C.  A clearly defined boundary
D. A common set of objectives

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46. According to the Real World case, eCourier embraced technology by: 
(p. 5)
 

A. Doing the same things that all their competitors were doing successfully.
B.  Installing a new computerized bar-scanning system for packages.
C.  Enabling a new telephone system for customers.
D. Giving all their couriers handheld GPS units for tracking and communication.

Lufthansa plans to phase out the desktop computers that it had previously deployed in
airports, thereby streamlining its infrastructure and cutting costs.

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47. According to the Real World case, eCourier uses SeeWhy software to: 
(p. 5)
 

A. Track packages that have not been delivered.


B.  Provide business intelligence in terms of customer satisfaction.
C.  Interface with their accounting software.
D. All of the above.

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48. According to the Real World Case, the goal of Bryan Cave is: 
(p. 6)
 

A. To have the best value for their customers.


B.  To create increased profit per customer.
C. To build the best long-term relationships in the world.
D. All the above.

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49. According to the Real World Case, the Bryan Cave law firm had difficulty billing its
(p. 6)
real estate customers because: 
 

A. The developers could not afford their rates.


B.  Developers think in terms of square feet, not hours worked.
C.  Their lawyers did not understand the real estate profession.
D. None of the above.

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50. According to the Real World Case, the big problem facing the Bryan Cave law firm in
(p. 6)
2002 was: 
 

A. Communications between all their lawyers and offices.


B.  Dealing with the differences in laws around the world.
C.  Billing their clients correctly.
D. Making the highest profits from their resources while delivering the highest
customer value.

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51. All the following are examples of an information system, except: 
(p. 7)
 

A. A day planner


B.  A cash register
C. A group of marbles in a box
D. A paper-based accounting ledger

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52. According to the text, most retail stores today use computer-based information systems
(p. 8)
to support business processes and operations. This support falls broadly into the
categories of: 
 

A. Business decisions and strategies for competitive advantage.


B.  Operations and support strategies.
C.  Business decisions and operations.
D. Strategic business decisions and tactical business decisions.

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53. How do information systems aid in decision making? 
(p. 8)
 

A. Information systems help companies determine investments.


B.  Information systems help companies determine which products to sell or
discontinue.
C.  Information systems can be used to gain competitive advantage.
D. All of the choices are correct.

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54. All of the following are fundamental reasons for business applications of information
(p. 8)
technology except: 
 

A. Support of strategies for competitive advantage


B.  Support of business processes and operations
C. Compliance with environmental regulations
D. Decision making support

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55. According to the textbook case, Welch's uses BI software from Oco to: 
(p. 9)
 

A. manage their gasoline usage.


B.  decide which products should be produced.
C. ensure that its carriers are shipping full truckloads to customers.
D. follow new competitive trends from its competitors.

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56. According to the textbook case, the Oco BI software used by Welch's: 
(p. 9)
 

A. increases the number of deliveries made on Fridays.


B.  assures that most deliveries are not made on Fridays.
C.  assures that most deliveries are made on Fridays.
D. helps them even out the number of delivery trucks used each day of the week.

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57. The expanding role of information systems from the 1950s to the present, in sequential
(p. 10)
order, are: 
 

A. Management reporting, decision support, electronic business and commerce, data


processing, strategic and end user support
B.  Data processing, management reporting, strategic and end user support, electronic
business and commerce, decision support
C. Data processing, management reporting, decision support, strategic and end user
support, electronic business and commerce
D. Electronic business and commerce, management reporting, data processing,
strategic and end user support, decision support

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58. The rapid development of microcomputer processing power, application software
(p. 10)
packages, and telecommunications networks gave birth to the phenomenon of
_______________. 
 

A. manufacturer-to-public direct sales


B.  MIS departments
C. end user computing
D. electronic monitoring

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59. Which of the following is a false statement? 
(p. 11)
 

A. Today's information systems are doing the same basic things that they did over 40
years ago.
B.  Today there is a much higher level of integration of system functions.
C.  Today there is greater connectivity across dissimilar system components.
D. None of the statements is false.
 
60. Companies generally rely on e-business applications to do all of the following except: 
(p. 12)
 

A. Re-engineer internal business processes


B.  Implement electronic commerce systems
C. Monitor employee productivity
D. Promote enterprise collaboration among business teams and workgroups
 
61. In an e-business enterprise, an intranet refers to: 
(p. 12)
 

A. An Internet-like network inside the enterprise


B.  A network between an enterprise and its trading partners
C.  A network between the members of a single workgroup
D. All the choices are correct.
 
62. E-business uses Internet technologies to work and empower _______________. 
(p. 12)
 

A. business processes
B.  electronic commerce
C.  collaboration among business teams
D. All of the choices are correct.
 

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63. E-commerce ____________________. 
(p. 13)
 

A. involves buying, selling, marketing, and servicing of products, services, and


information over a variety of computer networks
B.  uses the Internet, intranets, and extranets to support every step of the commercial
process, such as multimedia advertising, product information, and customer support
C.  involves Internet security and payment mechanisms that ensure completion of
delivery and payment processes
D. All of the choices are correct.

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64. The text classifies information systems as either operations or management support
(p. 13)
information systems. Which one of the following would not be classified as an
operations support system? 
 

A. Transaction processing systems


B.  Process control systems
C.  Enterprise collaboration systems
D. Decision support systems

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65. Electronic commerce systems generally include all of the following except: 
(p. 13)
 

A. Internet websites for online sales


B.  Direct links to credit reporting services
C.  Extranet access of inventory databases
D. Intranets that allow sales reps to access customer records

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66. Process control systems monitor and control _______________ processes. 
(p. 14)
 

A. physical
B.  transactional
C.  inter-departmental
D. mechanical

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67. A nuclear power plant uses electronic sensors linked to computers to continually
(p. 14)
monitor processes and make instant (real-time) adjustments that control the power
generation process. This is an example of a(n) _______________. 
 

A. transaction processing system


B.  decision support system
C.  enterprise collaboration system
D. process control system

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68. When employees in a project team use email to send and receive messages and use
(p. 14)
video conferences to hold electronic meetings and coordinate their activities, they are
using _______________. 
 

A. transaction processing systems


B.  process control systems
C. enterprise collaboration systems
D. decision support systems

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
69. A database of customer purchases that provides end-user managers with interactive and
(p. 15)
ad hoc decision-making support is referred to as _______________. 
 

A. a transaction processing system


B.  a decision support system
C.  an information reporting system
D. an executive information system

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
70. A production manager needs a system to help determine how much product to
(p. 15)
manufacture based on the expected sales associated with a future promotion, plus the
location and availability of the raw materials necessary to manufacture the product.
What type of system would meet this manager's needs? 
 

A. Transaction processing system


B.  Process control system
C.  Enterprise collaboration system
D. Decision support system

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71. When information system applications focus on providing information and support for
(p. 15)
effective decision making by managers, they are called _______________ support
systems. 
 

A. decision
B.  management
C.  collaboration
D. process

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72. An information system that supports the business functions of accounting, finance,
(p. 16)
human resource management, marketing, or operations would be classified as a(n)
_______________ system. 
 

A. functional business
B.  executive information
C.  management information
D. decision support

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73. Information systems that focus on operational and managerial applications in support
(p. 16)
of basic business functions, such as accounting or marketing, are known as
_______________. 
 

A. functional business systems


B.  strategic information systems
C.  executive information systems
D. knowledge management systems

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74. Most information systems are designed to _______________. 
(p. 15)
 

A. produce information and support decision making


B.  handle record-keeping
C.  handle transaction processing chores
D. All the choices are correct.

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75. Executive information systems (EIS) are tailored to meet the strategic information
(p. 15)
needs of which of the following management levels? 
 

A. Top management (strategic)


B.  Middle management (tactical)
C.  Lower management (operational)
D. All of the choices are correct.

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76. Business applications of information systems are typically combinations of several
(p. 15)
types of information systems. This integration is referred to as _______________
systems. 
 

A. information reporting
B.  decision support
C. cross-functional informational
D. end user computing

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77. Success in today's dynamic business environment depends heavily on maximizing the
(p. 16)
use of Internet-based technologies and Web-enabled information systems to meet the
competitive requirements of _______________. 
 

A. customers
B.  suppliers
C.  business partners
D. All of the choices are correct.

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
78. A functional business system supports all of the following types of applications except: 
(p. 16)
 

A. Accounting
B.  Customer problem resolution
C.  Marketing
D. Human resource management

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79. Which of the following systems acts as a consultant to users? 
(p. 16)
 

A. Knowledge
B.  Integrated information
C.  Executive information
D. Expert

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80. According to the textbook case on responsibility and accountability, even if a project is
(p. 17-
not an IT project, who is held responsible for optimizing returns on IT-related
18)
investments? 
 

A. CEO
B.  CFO
C.  COO
D. CIO

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81. According to the textbook case on responsibility and accountability: 
(p. 17-
 
18)

A. IT is always 100% responsible for any large project involving information
technology.
B.  IT is never 100% responsible for any large project involving information
technology.
C.  IT is sometimes 100% responsible for any large project involving information
technology.
D. None of the above is correct.

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
82. Developing an information system solution involves all of the following steps except: 
(p. 18)
 

A. Investigation
B.  Implementation
C. Redesign
D. Maintenance

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
83. Computer-based information systems are usually conceived, designed, and
(p. 18)
implemented using some form of systematic development process. The investigation
stage includes _______________. 
 

A. determining the economic or technical feasibility of a proposed application


B.  acquiring and learning how to use the necessary software
C.  improving the system
D. All of the choices are correct.
 
84. Developing information system solutions to business problems in an organization is the
(p. 18)
responsibility of _______________. 
 

A. information system specialists


B.  computer programmers
C.  systems analysts
D. all information system users within the organization
 
85. When applying a systematic development process for computer-based information
(p. 18)
systems, _______________ would be part of the analysis phase. 
 

A. determining the business requirements of the system


B.  acquiring and learning how to use the necessary software
C.  implementing a trial system
D. obtaining feedback from end users of the system
 
86. According to the text, the steps of developing an information system, in their proper
(p. 19)
order, are: 
 

A. Investigate, analyze, implement, design, maintain


B.  Investigate, design, analyze, implement, maintain
C.  Maintain, implement, design, analyze, investigate
D. Investigate, analyze, design, implement, maintain
 

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87. In the lawsuit filed against Hannaford Brothers, which of the following was not alleged
(p. 20-
as a reason for filing the suit? 
21)
 

A. Hannaford has installed inadequate security measures.


B.  Hannaford did not disclose the security breach to the public quickly enough.
C. Hannaford sold the data to spammers.
D. All the choices are correct.

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
88. The information systems function is equally as important to business success as the
(p. 24)
function of _______________. 
 

A. accounting
B.  operations management
C.  human resources management
D. All the choices are correct.

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89. In the information systems concept, the processing function involves: 
(p. 26)
 

A. Capturing and assembling elements that enter the system to be processed


B.  Transformation processes that convert input into output
C.  Transferring elements that have been produced by a transformation process to their
ultimate destination
D. Monitoring and evaluating feedback to determine whether a system is moving
toward the achievement of its goal

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90. According to the Real World case about the New York Times, the newspaper industry
(p. 27)
is in very deep trouble. What has become most important to them? 
 

A. Business model innovation


B.  Internet connectivity
C.  Technological innovation
D. Communication initiatives

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91. If a system is one of the components of a larger system, it is considered a(n)
(p. 29)
_______________. 
 

A. environment
B.  feedback loop
C. subsystem
D. interface

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92. A system that can change itself or its environment in order to survive is
(p. 29)
_______________ system. 
 

A. a control
B.  a self-monitoring
C.  an environmental
D. an adaptive

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93. Organizations are examples of _______________ systems because they interface and
(p. 29)
interact with other systems in their environment. 
 

A. linked
B.  open
C.  dependent
D. parallel

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94. The majority of organizations today would be classified as _______________ systems. 
(p. 29)
 

A. open
B.  closed
C. open adaptive
D. closed adaptive

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95. An information system depends on all of the following resources except: 
(p. 30)
 

A. Hardware
B.  Software
C.  People
D. Time

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96. All of the following would be considered a hardware resource except: 
(p. 31)
 

A. A microcomputer
B.  A keyboard
C.  Magnetic and optical disks
D. Programs and procedures

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
97. All of the following would be considered a software resource in an information system
(p. 31)
except: 
 

A. A computer operating system


B.  A word processing software package
C. A telecommunication network
D. All of the choices are software resources.
 
98. In an information system context, which one of the following would be the most
(p. 33)
applicable description of application software? 
 

A. It controls and supports the operations of a computer


B.  It consists of programs that direct particular processing activities
C.  It consists of operating instructions for people who will use an information system
D. None of the choices are correct.
 
99. In an information system, alphanumeric data normally takes the form of
(p. 33)
_______________. 
 

A. numbers and alphabetical characters


B.  sentences and paragraphs
C.  graphic shapes and figures
D. All of the choices are correct.
 
100. In an information system, image data normally takes the form of _______________. 
(p. 33)
 

A. numbers and alphabetical characters


B.  sentences and paragraphs
C. graphic shapes and figures
D. voice and other sounds
 

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101. All of the following are good examples of information except: 
(p. 34)
 

A. The social security number of the company's forklift operator


B.  The retail price of blue widgets
C.  How much the company owes to vender number 17
D. The numbers 1236789, 349875, and 340977
 
102. Telecommunications networks consist of _______________. 
(p. 34)
 

A. computers, the Internet, intranets, and extranets


B.  communications processors
C.  devices interconnected by communication media and controlled by communications
software
D. All of the choices are correct.
 

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103. All of the following normally happens to data during a value-added process except: 
(p. 34)
 

A. Their useful life is determined


B.  Their form is aggregated, manipulated, and organized
C.  Their content is analyzed and evaluated
D. They are placed in a proper context for a human user
 
104. All of the following are considered computer hardware technology except: 
(p. 32-
 
33)

A. Operating system software


B.  Microcomputers
C.  Keyboards
D. Printers
 
105. Which of the following is an example of control of an information system's
(p. 36)
performance? 
 

A. A system malfunction wiped out two weeks of student registration records
B.  Programmers created a user friendly input screen for a new system
C. Subtotals do not add up to total sales; IT staff investigates whether data entry or
processing is the problem
D. An extra $20 was added to every water bill by mistake
 
106. The original, formal record of a transaction is called the: 
(p. 35)
 

A. Updated form
B.  Paper form
C.  Transaction document
D. Source document
 
107. The source document is: 
(p. 35)
 

A. The form of a document after its final update


B.  A transaction document that refers to the source of the product
C. The original, formal record of a transaction
D. The first update to any transaction
 
 

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Fill in the Blank Questions
 

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108. An _______________ system is an organized combination of people, hardware,
(p. 4)
software, telecommunications networks, and data resources that collects, transforms,
and disseminates information in an organization. 
 
information

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109. With a strategic information system (SIS), information technology becomes an integral
(p. 11)
part of business processes, products, and _______________. 
 
services

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110. _______________ is defined as the use of Internet technologies to work and empower
(p. 12)
business processes, electronic commerce, and enterprise collaboration within a
company and with its customers, suppliers, and other business stakeholders. 
 
E-business

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111. Enterprise collaboration systems use software tools to support _______________
(p. 12)
among the members of networked teams and workgroups. 
 
communication, coordination, or collaboration

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112. During the 1980s and 1990s, information technology helped companies gain a
(p. 11)
competitive advantage in the global marketplace. This is referred to as the
_______________ information systems concept. 
 
strategic

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113. A _______________ team uses a corporate intranet and the Internet for electronic mail,
(p. 13)
videoconferencing, electronic discussion groups, and Web pages of work-in-progress
information to collaborate on business projects. 
 
virtual

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114. Electronic _______________ is the buying, selling, marketing, and servicing of
(p. 13)
products, services, and information over a variety of computer networks. 
 
commerce

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115. Types of information systems are generally classified as either operations information
(p. 13)
systems or _______________ information systems. 
 
management

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116. Marketing and selling books to consumers over the Internet is an example of
(p. 13)
_______________ commerce. 
 
electronic or Internet or "E-"

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117. A system that controls the industrial processes of an organization would be classified as
(p. 13)
a(n) _______________ support system. 
 
operations

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118. Transaction processing systems process transactions in two basic ways,
(p. 14)
_______________ processing or real-time. 
 
batch

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119. When a manager uses an interactive, computer-based information system to assist in
(p. 15)
his/her decision making, the manager is using a _______________ support system. 
 
decision

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120. A system that provides pre-specified reports for the managers of an organization would
(p. 15)
be classified as a _______________ system. 
 
management

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
121. Enterprise collaboration systems enhance team and workgroup communication and
(p. 14)
productivity, and include applications that are sometimes called office
_______________ systems. 
 
automation

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122. The goal of knowledge management systems (KMS) is to help knowledge workers
(p. 15)
create, organize, and _______________ important business knowledge wherever and
whenever it is needed. 
 
share

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123. The success of an information system should be measured by both its efficiency and its
(p. 17)
_______________. 
 
effectiveness

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124. The design of an information system application is based on an _______________ of
(p. 18)
the business requirements of an organization. 
 
analysis

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125. As a manager, you must be aware of what uses of information technology might be
(p. 20)
considered improper, irresponsible, or harmful to individuals or to society. This
dimension of the use of information technology is referred to in the text as an
_______________ responsibility. 
 
ethical

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126. A manufacturing system accepts raw materials as input and produces finished goods as
(p. 26)
output. An information system accepts data as input and processes them into
_______________ as output. 
 
information

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
127. A system with feedback and _______________ functions is sometimes called a
(p. 29)
cybernetic system. 
 
control

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128. The _______________ component in a cybernetic system refers to the data about the
(p. 29)
performance of the system. 
 
feedback

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=

129. _______________ is data about the performance of a system. 


(p. 29)
 
Feedback

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130. _______________ involves monitoring and evaluating feedback to determine whether
(p. 29)
a system is moving toward the achievement of its goal. 
 
Control

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
 
131. People, hardware, software, __________, and networks are the five basic resources of
(p. 31)
information systems. 
 
data

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132. Information processing consists of the system activities of input, processing, output,
(p. 32)
_______________, and control. 
 
storage
 
133. In the context of the information system model, software resources include the sets of
(p. 33)
operating instructions called _______________, which direct and control computer
hardware. 
 
programs
 
134. In the context of the information systems model, _______________ are the operating
(p. 33)
instructions for the people who will use an information system. Examples are
instructions for filling out a paper form or using a software package. 
 
procedures
 
135. Information in various forms is transmitted to end users and made available to them in
(p. 35)
the _______________ activity. 
 
output
 
136. A _______________ document is the original, formal record of a transaction. 
(p. 35)
 
source
 
137. _______________ is the information systems activity in which data and information
(p. 36)
are retained in an organized manner for later use. 
 
Storage
 
138. In an information system, the _______________ activity would be considered the
(p. 36)
component that evaluates feedback in order to determine whether the system is moving
toward the achievement of its goal. 
 
control
 

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