Management Information Systems Managing the Digital Firm Canadian 7th Edition by Laudon - Test Bank

Chapter 1 Information Systems in Business Today

1)     Internet advertising is growing at approximately 10 percent a year.

Answer: TRUE

Diff: 3 Page Ref: 5

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.1

2)     Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes.

Answer: TRUE

Diff: 1 Page Ref: 9

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.1

3)     A fully digital firm produces only digital goods or services.

Answer: FALSE

Diff: 2 Page Ref: 9

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.1

4)     A business model describes how a company produces, delivers, and sells a product or service to create wealth.

Answer: TRUE

Diff: 1 Page Ref: 11

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.1

5)     Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed.

Answer: FALSE

Diff: 2 Page Ref: 12

AACSB: Use of information technology

CASE: Knowledge

Objective: 1.2

6)     Computers are only part of an information system.

Answer: TRUE

Diff: 1 Page Ref: 13

AACSB: Use of information technology

CASE: Knowledge

Objective: 1.2

7)     Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.

Answer: FALSE

Diff: 1 Page Ref: 14

AACSB: Use of information technology

CASE: Knowledge

Objective: 1.2

8)     The dimensions of information systems are management, organizations, and information technology.

Answer: TRUE

Diff: 2 Page Ref: 15

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.2

9)     Knowledge workers assist with paperwork at all levels of the firm.

Answer: FALSE

Diff: 1 Page Ref: 15

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.2

10)   There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology.

Answer: FALSE

Diff: 1 Page Ref: 15

AACSB: Reflective thinking skills

CASE: Knowledge

Objective: 1.2