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Chapter 1Information Technology: Principles, Practices,and OpportunitiesTrue-False Questions1.Today, knowledge workers outnumber those employed in agriculture and manufacturingthroughout the developed world.Answer: True Difficulty: Easy Reference: p. 72.Effectiveness is a measure of the amount of work that can be accomplished with a certainlevel of effort.Answer: False Difficulty: Easy Reference: p. 83.Reengineering involves rethinking business practices, focusing on business processes, andintroducing incremental improvements to benefit both a business and its customers.Answer: False Difficulty: Medium Reference: p. 94.In the Information Age, work is accomplished through teamwork, interconnection, andshared information.Answer: True Difficulty: Easy Reference: pp. 9-105.To be successful in the Information Age, an organization must understand what IT can do toimprove its employees’ performance and how IT can enhance its products and services.Answer: True Difficulty: Medium Reference: p. 106. A customer’s order that consists of the name of the customer, the item(s) the customerpurchased, the quantity, and the price, is an example of information.Answer: False Difficulty: Hard Reference: p. 137. A program consists of a set of instructions that directs a computer to perform certain tasksand produce certain results.Answer: True Difficulty: Easy Reference: p. 178.MIS is a business information system designed to produce the information needed forsuccessful management of an unstructured problem, process, department, or business.Answer: False Difficulty: Hard Reference: p. 189. A typical business system includes not only people and departments but also procedures forconducting the business efficiently.Answer: True Difficulty: Medium Reference: p. 1910.America Online (AOL), Earthlink, Minitel, and the Internet, are all examples of publicnetworks.Answer: True Difficulty: Medium Reference: p. 1911.Data processing is the process of compiling detailed records of activities.Answer: False Difficulty: Easy Reference: p. 2312.The six functions of information technology are capturing, processing, generating,compiling, retrieving, and transmitting.Answer: False Difficulty: Easy Reference: p. 21rmation processing is a general term for the computer activity that entails processing anytype of information and transforming it into a different type of information.Answer: True Difficulty: Medium Reference: p. 2314.Word processing, image processing, and voice processing are all types of informationprocessing.Answer: True Difficulty: Medium Reference: p. 2415.The benefits of information technology include speed, consistency, effectiveness, andreliability.Answer: False Difficulty: Medium Reference: p. 2616.In general, computers are not very reliable.Answer: False Difficulty: Medium Reference: p. 2817.The process of recognizing a problem, identifying alternatives for solving it, and successfullyimplementing the chosen solution is called information management.Answer: False Difficulty: Medium Reference: p. 30rmation technology can be found in education, entertainment, manufacturing, journalism,and even agriculture.Answer: True Difficulty: Medium Reference: pp. 32-3319.One of the fundamental responsibilities of IT users, to be informed, states that users musttake responsibility for protecting data and information that are in a computer or transmittedover a network against intentional or accidental damage or loss.Answer: False Difficulty: Medium Reference: p. 3420.Knowing how IT is used in organizations, acquiring demonstrable IT skills, and being able tolist your IT accomplishments on your resume will give you a solid advantage when you arecompeting for a job.Answer: True Difficulty: Medium Reference: p. 34Multiple Choice Questions21. The __________________ is characterized by the simplification of work processes throughmechanization and automation.a.Agricultural Ageb.Industrial Agermation Aged.Machine Agee.None of the aboveAnswer: b Difficulty: Easy Reference: p. 722. Workers involved in the creation, distribution, and application of information are:a.data workers.rmation workers.c.knowledge workers.puter workers.e.technology workers.Answer: c Difficulty: Easy Reference: p. 723. The characteristics that distinguish the Information Age from previous ages include:a.an information-based society has arisen.b.businesses dependent on information technology to get their work done.c.Success in business is largely determined by the effectiveness with which informationtechnology is used.d.All of the above.e.Both a and b.Answer: d Difficulty: Medium Reference: p. 724. ______________ is the extent to which desirable results are achieved.a.Productivityb.Effectivenessc.Efficiencyd.Valuee.None of the aboveAnswer: b Difficulty: Medium Reference: p. 825. The activities that workers perform, the way they perform them, and the tools they use are:a.business processes.b.work processes.c.productivity.d.efficacy.e.effectiveness.Answer: b Difficulty: Easy Reference: p. 826. Separation of a work process into component tasks, with different workers specializing ineach of the tasks is called:a.teamwork.b.division of labor.c.reengineering.d.shared information.e.virtual team.Answer: b Difficulty: Medium Reference: p. 927. Interconnection means that:a.people work together to accomplish a team outcome rather than an individual job.b.individuals communicate regardless of distance to exchange ideas, experiences, andinsights.munication networks make information available to several people simultaneously,instantaneously, or whenever they need it.d.all of the above.e.none of the above.Answer: b Difficulty: Medium Reference: pp. 9-1028. In the Information Age, greater productivity is achieved through:a.teamwork.b.interconnection.c.division of labor.d.shared information.e.a, b, and d.Answer: e Difficulty: Easy Reference: pp. 9-1029. Products and services with embedded technology are sometimes called:a.technology-based.b.intelligence-based.c.knowledge-based.rmation-based.e.data-based.Answer: c Difficulty: Hard Reference: p. 1130. The pervasiveness of knowledge-based products, services, and activities in today’s societyhas:a.reshaped business processes to remove barriers that prohibit an organization fromproviding better products and services.b.separated a work process into component tasks, with different workers specializing ineach of the tasks.c.so thoroughly changed the way we act that we often take this technology for granted.d.Both a and b.e.Both a and c.Answer: c Difficulty: Hard Reference: p. 1231. ______________ refers to an organized, meaningful, and useful interpretation of data.a.Datarmationc.Knowledged.Databasee.None of the aboveAnswer: b Difficulty: Easy Reference: p. 1332. An awareness and understanding of a set of information and how that information can be putto the best use is:a.data.rmation.c.knowledge.d.intelligence.e.strategy.Answer: c Difficulty: Medium Reference: p. 1333. Which of the following is NOT a type of microcomputer?a.Notebook computerb.Tablet PCc.Personal digital assistantsd.Minicomputere.All of the above are microcomputers.Answer: d Difficulty: Medium Reference: p. 1434. An electronic system that can be instructed to accept, process, store, and present data andinformation is a(n):a.personal computer.b.notebook computer.c.tablet PC.d.personal digital assistant.e.All of the above.Answer: e Difficulty: Hard Reference: pp. 14-1535. ________________ are smaller versions of microcomputers that are designed for portability.a.Personal digital assistantsb.Minicomputersc.Notebook computersd.Palm PCse.Handheld computersAnswer: c Difficulty: Easy Reference: pp. 1536. PDAs and Palm PCs are often collectively referred to as:a.small computers.b.microcomputers.c.tablet PCs.d.handheld computers.e.portable computers.Answer: d Difficulty: Medium Reference: p. 1637. Software refers to:a.the instructions that manage the hardware.b.the computer and its associated equipment.c. a set of components that interact to accomplish a purpose.d.an interface between the computer and the network.e.None of the above.Answer: a Difficulty: Medium Reference: p. 1738. _________________ are generally larger, more expensive, and faster than midrangecomputers and permit the interconnection of a greater number of people.a.Microcomputersb.Minicomputersc.Mainframe computersd.Handheld computerse.Powerful computersAnswer: c Difficulty: Medium Reference: p. 1739. Which of the following statements about information system/management informationsystems (MIS) is NOT true?a.MIS is a business information system designed to produce the information needed forsuccessful management of a structured problem, process, department, or business.b.Data and information flow from one person or department to another via informationsystems.rmation systems serve all of the systems of a business by linking the differentcomponents together so that they work effectively toward the same goal.d.All of the above are true statements.e.Both a and c.Answer: d Difficulty: Hard Reference: p. 1940. _______________refers to the sending and receiving of data and information over a communications network.a.Hardwareb.Softwaremunicationd.Systeme.ProgramAnswer: c Difficulty: Easy Reference: p. 1941. A communications network consists of:a. a set of stations at different locations that are interconnected through a medium thatenables people to send and receive data and information.b.telephone wires and cables.c.hardware, programs, and information.d.all of the above.e.Both a and b.Answer: d Difficulty: Medium Reference: p. 1942. The transmission of data and information through a communications medium is:working.b.data communication.munications network.d.data retrieval.e.None of the above.Answer: b Difficulty: Medium Reference: p. 1943. Which of the following is NOT a public network?a.America Online (AOL)b.Earthlinkc.The Internetd.The World Wide Webe.All of the aboveAnswer: e Difficulty: Medium Reference: p. 19know-how consists of:technology44. Informationa.familiarity with the tools of IT, including the Internet.b.possession of the skills needed to use these tools.c.an understanding of when to use IT to solve a problem or create an opportunity.d.All of the above.e.Both a and c.Answer: d Difficulty: Medium Reference: pp. 19-2145. Which of the following is NOT a function of information technology?a.Captureb.Calculatec.Generationd.Storagee.All of the above are functions of information technology.Answer: b Difficulty: Medium Reference: p. 2146. Which of the following statements about information technology is NOT true?rmation technology’s great usefulness is as an aid in solving problems, unlockingcreativity, and making people more effective than they would be if they did not apply ITto their activities.b.The more “high-tech” the information technology you are considering, the moreimportant it is to consider the “high-touch” aspects of the matter—that is, “the peopleside.”c.Always fit people to information rather than fitting information to people.rmation technology performs six information-handling functions: capture,processing, generation, storage, retrieval, and transmission.e.The benefits of information technology are speed, consistency, precision, and reliability.Answer: c Difficulty: Hard Reference: p. 2147. According to the first principle of information technology, information technology’s greatusefulness is as an aid in:a.solving problems.b.unlocking creativity.c.making people more effective.d.All of the above.e.Both a and c.Answer: d Difficulty: Medium Reference: p. 2148. Which function of information technology is the process of compiling detailed records ofactivities?a.Capturingb.Retrievingc.Storingd.Processinge.GeneratingAnswer: a Difficulty: Easy Reference: p. 2149. Which function of information technology is the process of converting, analyzing,computing, and synthesizing all forms of data or information?a.Capturingb.Processingc.Retrievingd.Generatinge.TransmittingAnswer: b Difficulty: Easy Reference: p. 2350. Which function of information technology is the process of retaining information for futureuse?a.Capturingb.Processingc.Retrievingd.Generatinge.StoringAnswer: e Difficulty: Easy Reference: p. 2451. Data processing refers to:a.the process of retaining information for future use.b.the process of distributing information over a communications network.c.the process of handling data and its transformation into information.d.the process of compiling detailed records of activities.e.None of the above.Answer: c Difficulty: Easy Reference: p. 2352. Which of the following is NOT a type of information processing?a.Word processingb.Image processingc.Voice processingd.Video processinge.All of the above are types of information processing.Answer: e Difficulty: Medium Reference: p. 24refers to the creation of text-based documents, including reports, 53. _________________newsletters, and correspondence.a.Test processingb.Word processingc.Image processingd.Report processinge.Voice processingAnswer: b Difficulty: Medium Reference: p. 2454. Stored data and information are placed on a storage medium such as a(n):a.magnetic disk.b.magnetic tape.c.optical disk.d.All of the above.e.Both a and c.Answer: d Difficulty: Hard Reference: p. 2455. The benefits of information technology include:a.speed.b.consistency.c.effectiveness.d.All of the above.e.Both a and b.Answer: c Difficulty: Medium Reference: p. 2656. Which of the following is NOT a benefit of information technology?a.Speedb.Consistencyc.Effectivenessd.Precisione.ReliabilityAnswer: c Difficulty: Medium Reference: p. 2657. Which of the following is NOT a true statement?puters do everything in fractions of seconds.puters can detect minute differences that people cannot see.c.In general, computers are very reliable.puters excel at repeating actions consistently.e.All of the above are true statements.Answer: e Difficulty: Medium Reference: pp. 27-2858. Computers excel at:a.repeating actions consistently.b.managing the smallest differences, that is, in being precise.c.improving management skills of managersd.doing everything in fractions of seconds.e.a, b, and c.Answer: e Difficulty: Medium Reference: p. 2759. The illusion of reality created by a computer is called:a.super reality.b.pseudo reality.c.virtual reality.d.simulated reality.e.fake reality.Answer: c Difficulty: Medium Reference: p. 2860. The perceived difference between an existing condition and a desired condition is a(n):a.reality.b.situation.c.problem.d.solution.e.none of the above.Answer: c Difficulty: Medium Reference: p. 3061. The process of recognizing a problem, identifying alternatives, and successfullyimplementing the chosen solution is called:rmation management.b.knowledge management.c.problem solving.d.decision making.e.None of the above.Answer: c Difficulty: Medium Reference: p. 3062. Onlineeducation:a.eliminates the need to travel.b.is more cost-effective.c.makes learning more fun.d.Both a and c.e.None of the above.Answer: a Difficulty: Medium Reference: p. 3163. As companies seek to reduce the burden of travel for both customers and their ownemployees, a growing number are:a.developing information systems for customer relationship management.b.creating online learning systems to deliver product and service training.c.investing heavily in disaster recovery.d.Both a and b.e.Both b and c.Answer: b Difficulty: Hard Reference: p. 3164. At New York’s NASDAQ Exchange, stockbrokers:a.trade on the trading floor.b.do all their trading electronically.e information technology on the trading floor.d.Both a and c.e.None of the above.Answer: b Difficulty: Hard Reference: p. 3365. Information technology allows companies to reduce:a.workload.b.investments.c.paperwork.munication.e.Both b and c.Answer: c Difficulty: Medium Reference: p. 3266. Information technology cannot be found in:a.agriculture.b.shipping.c.manufacturing.cation.e.None of the above.Answer: e Difficulty: Medium Reference: p. 3367. Information technology can be found in:a.health and medicine.b.manufacturing.c.agriculture.d.All of the above.e.Both a and b.Answer: d Difficulty: Medium Reference: p. 3368. Electronic filing service allows the customers at H&R Block to:a.pay less taxes.b.receive refunds the same day they file their return.c.prepare tax returns without the help of the accountant.d.Both a and c.e.Both b and c.Answer: b Difficulty: Hard Reference: p. 3369. H&R Block was the first to:bine the IRS electronic filling process with its own Rapid Refund program.b.allow customers to file return electronically.c.allow customers to receive a refund the same day they file their return.d.Both a and b.e.Both a and c.Answer: e Difficulty: Hard Reference: p. 3370. Which of the following is NOT a fundamental responsibility of IT users?a.To be informedb.To produce knowledgec.To make proper use of ITd.To store informatione.Both b and dAnswer: e Difficulty: Medium Reference: p. 3471. The fundamental responsibilities of IT users are:a.to be informed.b.to make proper use of IT.c.to safeguard.d.All of the above.e.Both b and c.Answer: d Difficulty: Easy Reference: p. 3472. The fundamental assumption that states that users need to take responsibility for employingIT in desirable and ethical ways that help people and do not infringe on their privacy, rights, or well-being is:a.to be informed.b.to make proper use of IT.c.to be productive.d.to safeguard.e.to minimize damage.Answer: b Difficulty: Medium Reference: p. 3473. Which of the following statements about the responsibilities of IT users is NOT true?ers need to know how computers and networks can be applied in different situations.ers need to know the capabilities and limitations of IT.ers need to take responsibility for employing IT in desirable and ethical ways.d.It’s database administrator’s responsibility is to protect data and information that are in acomputer or transmitted over a network against intentional or accidental damage or loss.e.All of the above are true statements.Answer: d Difficulty: Medium Reference: p. 3474. In order to gain a solid advantage when you are competing for a job, you need to:a.know how IT is used in organizations.b.learn how to program a computer system.c.acquire demonstrable IT skills.d.Both a and c.e.Both b and c.Answer: d Difficulty: Medium Reference: p. 34emphasizes:75. Reengineeringa.rethinking of business activities.b.introducing incremental changes that benefit both a company’s customer and itsemployees.c.introducing radical changes that benefit both a company’s customer and its employees.d.Both a and b.e.Both a and c.Answer: e Difficulty: Medium Reference: p. 36Fill In the Blanks76. Knowledge workers are involved in the creation, distribution, and application of information.Difficulty: Easy Reference: p. 7information society, more people work at handling information than in the agriculture77. Ina(n)and manufacturing sectors combined.Difficulty: Easy Reference: p. 778. Business processes are collections of activities, often spanning several departments, that takeone or more kinds of input and create a result that is of value to a company’s customers.Difficulty: Medium Reference: p. 979. During the Industrial Age, greater productivity was attained by separating a work processinto component tasks, with different workers specializing in each of the tasks. This is calleddivision of labor.Difficulty: Easy Reference: p. 980. Embedded information technology means that IT is integrated with the other components ofproducts and services.Difficulty: Hard Reference: p. 1081. Information refers to an organized, meaningful, and useful interpretation of data.Difficulty: Easy Reference: p. 1382. Knowledge is the awareness and understanding of a set of information and how thatinformation can be put to the best use.Difficulty: Easy Reference: p. 1383. Small enough to be carried anywhere, and weighing less than a pound, personal digitalassistants (PDAs) are portable computers generally used as personal aids.Difficulty: Medium Reference: p. 1584. Hardware refers to the computer and its associated equipment.Difficulty: Easy Reference: p. 1785. A(n)system is a set of components that interact to accomplish a purpose.Difficulty: Easy Reference: p. 1886. One of the earliest business applications, data processing, focuses on taking data andtransforming them into information.Difficulty: Hard Reference: p. 2387. Generation refers to the process of organizing information into a useful form, whether asnumbers, text, sound, or visual image.Difficulty: Easy Reference: p. 2388. Transmission refers to the process of distributing information over a communicationsnetwork.Difficulty: Easy Reference: p. 2489. A computer system that can process multiple types of information simultaneously is amultimedia system.Difficulty: Medium Reference: p. 2490. The benefits of information technology include speed, consistency, precision, and reliability.Difficulty: Medium Reference: p. 2791. You can count on computers and communications networks to be available and properlyfunctioning when you need them—which is another kind of reliability, reliability of use.Difficulty: Hard Reference: p. 28problem is the perceived difference between an existing condition and a desired92. A(n)condition.Difficulty: Medium Reference: p. 3093. Problem solving is recognizing a problem, identifying alternatives for solving it, andsuccessfully implementing the chosen solution.Difficulty: Medium Reference: p. 3094. Today, Caterpillar Inc. test-drives its machines before it builds them—an advantage madepossible by virtual reality.Difficulty: Medium Reference: p. 2895. The three fundamental assumptions in using IT are to be informed, to make proper use ofIT, and to safeguard.Difficulty: Medium Reference: p. 34Essay Questions96. In the last 30 to 40 years, information and knowledge have been recognized as assets that asociety needs to develop and manage. With that realization, the Information Age began.Briefly discuss the six characteristics of the Information Age.The six characteristics of the Information Age are:1)An information-based society in which more people work at handling informationthan at agriculture and manufacturing combined has arisen.2)Businesses depend on information technology to get their work done.3)Work processes are being transformed to increase productivity.4)Information technology provides the means of rethink—that is, recreate orreengineer—conventional business processes.5)Success in business is largely determined by the effectiveness with whichinformation technology is used.6)Information technology is embedded in many products and services.97. How does use information technology to benefit both consumers and the U.S.Postal Service? Internet postage takes the hassle out of buying stamps and preparing your mail.With Internet postage, you can buy and print your own postage stamp right from yourdesktop computer. All that is required is software and a small, highly secure device (calledthe electronic vault), about the size of a 1-inch roll of traditional postage stamps that isconnected at the back of the desktop computer. Consumers can buy postage via a credit cardor use electronic funds transfer from their bank account, and then the postage is downloadedinto the electronic vault.The U.S. Postal Service benefits, too. The greater the number of individuals buying andusing electronic stamps, the shorter the lines at post-office stamp windows.98. Define data, information, and knowledge.Data are raw facts, figures, and details. Information refers to an organized, meaningful, anduseful interpretation of data, while knowledge is the awareness and understanding of a set ofinformation and how that information can be put to the best use.99. What are the three primary components of information technology?The three primary components of information technology are:1)Computers—electronic systems that can be instructed to accept, process, store, andpresent data and information.2)Communications networks—the interconnection of different locations through amedium that enables people to send and receive information.3)Know-how—the familiarity with the tools of IT, the skills needed to use these tools,and the understanding of when to use the.100. What is a computer? What are the different types of computers?A computer is an electronic system that can be instructed to accept, process, store, andpresent data and information. There are four types of computers:1)Microcomputers – a relatively compact type of computer, the most common of all,easily outsells all other types of computers annually for use in business and at home.2)Midrange computers – a type of computer used to interconnect people and large setsof information. More powerful than a microcomputer, the minicomputer is usuallydedicated to performing specific functions.3)Mainframes – a type of computer that is generally larger, more expensive, and fasterthan midrange computers and permits the interconnection of a greater number ofpeople.4)Supercomputers – a type of computer that is designed to solve problems consistingof long and difficult calculations. Supercomputer is the most powerful of allcomputers.101. What is a system? Is a business a system?A system is a set of components – people, computers, other businesses, government agencies– that interact to accomplish a purpose. A business is also a system. Its components –marketing, manufacturing, sales, research, shipping, accounting, and human resources – allwork together to create a product or service that benefits customers and therefore theemployees and shareholders of the organization.102. Discuss the six functions of information technology.The six functions of information technology are:1)Capture – the process of compiling detailed records of activities.2)Processing – the process of converting, analyzing, computing, and synthesizing allforms of data or information.3)Generation – the process of organizing information into a useful form, whether asnumbers, text, sound, or visual image.4)Storage – the computer process of retaining information for future use.5)Retrieval – the process by which a computer locates and copies stored data orinformation for further processing or for transmission to another user.6)Transmission – the computer process of distributing information over acommunications network.103. What is information processing? Discuss at least two types of information processing.Information processing is the transformation of any type of information into a different type of information. Types of information processing include the following:1)Word processing – The creation of text-based documents, including reports,newsletters, and correspondence.2)Image processing – Converting visual information into a format that can bemanaged within a computer system or transmitted between people and othercomputers.3)Voice processing – the transformation and transmission of spoken information.。