Deck 18: Used Advanced Information Technology to Increase Performance

Question 1

Information from inside the organization is sufficient for managers to make effective decisions.

Answer 1

False
Explanation:To make effective decisions, managers need information both from inside the organization and from external stakeholders.

Question 2

The methods for acquiring, organizing, storing, manipulating, and transmitting information are known as information technology.

Answer 2

True
Explanation:Information technology (IT) is the set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information.

Question 3

The term data refers to raw, unsummarized facts.

Answer 3

True
Explanation:Data are raw, unsummarized facts.

Question 4

The demand for a product is minimal during the embryonic stage of a product's life cycle.

Question 5

A line of software code is called an instruction.

Question 6

The process through which managers regulate how efficiently and effectively an organization and its members perform the activities necessary to achieve its stated goals is called decision making.

Question 7

The mainframe is the master computer that controls the operations of all the other types of computers and digital devices as needed and can link them into one integrated system.

Question 8

Computers express words, numbers, images, and sound in alphabets.

Question 9

Accuracy and reliability determine the completeness of information.

Question 10

The demand for a product is highest during the growth stage.

Question 11

The decline stage of a product begins when a more advanced product makes the old one obsolete.

Question 12

Management information systems came into existence during the computer age.

Question 13

Interlinked computers that exchange information constitute a network.

Question 14

Information that is relevant is useful and suits a manager's particular needs and circumstances.

Question 15

Cloud computing service is an example of an internal IT network.

Question 16

Data are more useful to managers than information.

Question 17

The term information refers to data that have been organized in some type of meaningful way.

Question 18

Information that reflects current conditions in the organization is called real-time information.

Question 19

The shorter a product's life cycle, the less important it is to innovate products quickly and continuously.

Question 20

The greater the accuracy and reliability of information, the higher is the quality of information.

Question 21

Trade that takes place between a company and individual customers using IT and the Internet is called business-to-business (B2B) commerce.

Question 22

A transaction-processing system is a management information system designed to handle small volumes of nonrecurring transactions.

Question 23

The client computers that are linked directly to a server constitute a local area network (LAN).

Question 24

Rapid advances in IT have resulted in greater decentralization and horizontal information flows within organizations.

Question 25

A boundaryless organization is an organization composed of people linked by IT.

Question 26

Top managers make frequent use of decision-support systems in their decision-making.

Question 27

An operations information system gives managers information they can use in their nonroutine coordinating, controlling, and decision-making tasks.

Question 28

Application software tells the computer hardware how to run.

Question 29

A B2B network structure is a formal series of global strategic alliances that one or several organizations create with suppliers, manufacturers, and distributors to produce and market a product.

Question 30

A decision-support system provides computer-built models that help managers make better nonprogrammed decisions.

Question 31

A knowledge management system is a company-specific virtual information system that systematizes the knowledge of its employees and facilitates the sharing and integrating of their expertise.

Question 32

Local area networks are multimodule application software packages that allow a company to link and coordinate the entire set of functional activities necessary to move products from the initial design stage to the final customer stage.

Question 33

A marketing manager who is trying to decide whether or not to lower the price of one of the products in a product line may decide to use a decision-support system to assist her in making this decision.

Question 34

A system that managers use in their nonroutine tasks of coordinating and controlling tasks is known as a transaction-processing system.

Question 35

Natural intelligence has been defined as behavior by a machine that, if performed by a human being, would be called "intelligent."

Question 36

Microsoft Excel, a computer program which uses spreadsheets, charts, and databases, is an example of application software.

Question 37

While a decision-support system organizes important information for managers, an operations information system gives managers model-building capability and the chance to manipulate information in a variety of ways.

Question 38

An executive-support system is a sophisticated version of a decision-support system that is designed to meet the needs of top managers.

Question 39

E-commerce systems are aimed at making programmed decisions.

Question 40

A spin-off is an agreement in which managers share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture.

Question 41

The attribute that affects the usefulness of information and is determined by the availability of information as per requirement is called _____. Author: Could you rephrase this question? "Availability as per requirement" is not exactly clear.

A) relevance
B) timeliness
C) quantity
D) completeness
E) quality

Question 42

The order in which the stages of the product life cycle occur over time is:

A) embryonic, growth, decline, and maturity.
B) embryonic, maturity, growth, and decline.
C) embryonic, growth, maturity, and decline.
D) growth, maturity, decline, and embryonic.
E) growth, embryonic, maturity, and decline.

Question 43

Data that are organized in a meaningful way are known as:

A) wisdom.
B) knowledge.
C) artificial intelligence.
D) information.
E) a fact.

Question 44

A specific form of IT that managers utilize to generate specific, detailed information they need to perform their roles effectively is known as _____.

A) management cybernetics
B) a management information system
C) a B2B marketplace
D) a content management system
E) a global positioning system

Question 45

Which of the following is not a factor in determining the usefulness of information?

A) Quality
B) Timeliness
C) Size
D) Completeness
E) Relevance

Question 46

Information that constantly changes to correspond to current conditions is called _____ information.

A) static
B) stable
C) real-time
D) complete
E) critical

Question 47

Establishing measurable standards of performance, measuring actual performance, comparing actual performance against established goals, and evaluating the results and taking corrective action are steps:

A) to launch a new product in the market.
B) to indicate the life cycle of a product.
C) to achieve control over organizational activities.
D) to reduce group cohesiveness among members.
E) to increase a company's investments in research and development.

Question 48

Which of the following statements is true about information technology (IT) and the product life cycle?

A) In the product's embryonic stage, many consumers are entering the market and buying the product for the first time and demand increases rapidly.
B) In the growth stage, a product has yet to gain widespread acceptance; customers are unsure what a product has to offer, and demand for it is minimal.
C) The growth stage ends and the maturity stage begins when market demand peaks because most customers have already bought the product.
D) Once demand for a product starts to fall, the maturity stage begins; this typically occurs when advancing IT leads to the development of a more advanced product, making the old one obsolete.
E) Products such as desktops and laptops and services such as Internet broadband and digital TV services are currently in the embryonic stage.

Question 49

Which of the following statements is true about the factors affecting the usefulness of information?

A) Irrelevant information is useless and may actually hurt the performance of a busy manager who has to spend valuable time determining whether information is relevant.
B) Managers constantly have access to complete information.
C) Accuracy and reliability seldom determine the quality of information.
D) Real-time information is information that reflects changes in business conditions that have occurred in the past.
E) In today's rapidly changing world, the need for timely information has decreased.

Question 50

Which of the following decisions is most likely to be made by top managers?

A) Decisions on how much of a product to make and how to make it
B) Decisions regarding from whom to purchase inputs and what inventory of inputs to hold
C) Decisions on how much employees should be paid, how they should be trained, and what benefits they should be given
D) Decisions on how to allocate scarce financial resources among competing projects
E) Decisions about the new product design

Question 51

Which of the following describes the language used by computers, consisting of zeros and ones, to perform their functions?

A) Geometric
B) Logarithmic
C) Digital
D) Analog
E) Symbolic

Question 52

The quality of information is determined by its _____ and _____.

A) accuracy; reliability
B) timeliness; relevance
C) relevance; accuracy
D) completeness; timeliness
E) availability; reliability

Question 53

The set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting organized and meaningful data is known as:

A) data harvesting.
B) data mapping.
C) data mediation.
D) informatization.
E) information technology.

Question 54

Raw, unsummarized, and unanalyzed facts are called _____.

A) sociofacts
B) data
C) information
D) feedback
E) morse codes

Question 55

The final step that managers need to take to achieve control over organizational activities is to:

A) measure actual performance.
B) establish measurable standards of performance.
C) perform tests to confirm consistency.
D) compare actual performance against established goals.
E) evaluate the results and take corrective action.

Question 56

A line of software code is called:

A) a bit.
B) a byte.
C) a processor.
D) an instruction.
E) an application.

Question 57

Which of the following attributes of useful information emphasizes accuracy and reliability?

A) Timeliness
B) Validity
C) Quality
D) Completeness
E) Relevance

Question 58

The first step that managers need to take to achieve control over organizational activities is to:

A) measure actual performance.
B) establish measurable standards of performance.
C) perform tests to confirm consistency.
D) compare actual performance against established goals.
E) evaluate the results and take corrective action.

Question 59

A graph of the profitability of each of an organization's products in a product line over the past three years is an example of:

A) raw data.
B) a software program.
C) artificial intelligence.
D) a raw fact.
E) information.

Question 60

Which of the following is an example of real-time information?

A) The price of a particular brand of chocolate
B) Number of cars sold by a manufacturer in the last two years
C) Census data over the last ten years
D) Daily weather forecast details
E) Literature review on a particular research study

Question 61

Which of the following is an example of a programmed decision?

A) Investing in a new type of production technology
B) Developing a new type of consumer product
C) Launching a new type of promotional campaign
D) Expanding sales into a new country
E) Refilling ink into a copier

Question 62

Personal computers on the desks of managers within a computer network are called:

A) servers.
B) clients.
C) mainframes.
D) external networks.
E) hubs.

Question 63

Powerful, user-friendly programs that are developed for a specific task or use are called _____.

A) operating system software
B) operating networks
C) application software
D) servers
E) data structures

Question 64

An operations information system typically accesses data gathered by a _____ system and converts the data into useful information.

A) transaction-processing
B) artificial intelligence
C) expert
D) executive support
E) decision support

Question 65

The _____ stage occurs when advancing IT leads to the development of a more advanced product making the old one obsolete and resulting in a fall of sales. Author: This is true only of IT-related products, a small portion of the business world. An energy drink does not enter its decline stage because of advancing IT. Please revise.

A) embryonic
B) conceptual
C) growth
D) maturity
E) decline

Question 66

A computer system that gathers comprehensive data, organizes it, and summarizes it in ways that are useful to managers for their nonroutine tasks is known as a(n) _____ system.

A) transactional analysis
B) artificial intelligence
C) expert
D) operations information
E) decision-support

Question 67

A computer system that is designed to handle a large volume of routine and recurring transactions is called a(n) _____ system.

A) transactional analysis
B) artificial intelligence
C) transaction-processing
D) transactional modeling
E) decision-support

Question 68

Large companies that need immense processing power have a(n) _____ computer at the center or hub of the network that can quickly process vast amounts of information and can handle electronic communications between PCs situated in different LANs.

A) server
B) client
C) mainframe
D) cloud
E) personal

Question 69

The client computers that are linked directly to a server constitute a(n):

A) local area network.
B) operating system software.
C) artificial intelligence network.
D) global positioning system.
E) content management system.

Question 70

A computer software program that is developed for preparing graphs of sales performance (in terms of the number of units sold) over a required period of time is an example of a(n):

A) applications software.
B) artificial intelligence program.
C) expert system software.
D) decision-support system.
E) operating system software.

Question 71

Which of the following statements is true about excessive layering in hierarchy?

A) Many layers of managerial hierarchy ensures a short time for information to travel up the hierarchy.
B) Information remains undistorted when passed along the different layers of hierarchy.
C) Many layers of managerial hierarchy ensures an organization's quick response to changing market conditions.
D) Many layers of managerial hierarchy results in a long time for information to travel down the hierarchy.
E) The usefulness of information will always increase with an increase in layering of hierarchy.

Question 72

The stage of the product life cycle in which demand, and therefore sales, for a product is least is the _____ stage.

A) embryonic
B) maturity
C) growth
D) decline
E) saturation

Question 73

The _____ is the master computer that controls the operations of all the other types of computers and digital devices as needed and can link them into one integrated system.

A) mainframe
B) client
C) server
D) personal computer
E) ethernet

Question 74

Supermarket managers who use scanners at the checkout counters, which are installed with computer software to track inventory levels of their products, are using a(n):

A) group decision-support system.
B) artificial intelligence system.
C) expert system.
D) executive-support system.
E) transaction-processing system.

Question 75

Which of the following management information systems are used for routine tasks?

A) Decision-support systems
B) Expert systems
C) Transaction-processing systems
D) E-commerce systems
E) Decision-support systems
Author: Possible answers A and E are identical.

Question 76

_____ tells the computer hardware how to run.

A) Operating system software
B) Mainframes
C) Application software
D) Local area networks
E) Wide area networks

Question 77

An interactive computer-based system that produces models which help managers to make better nonprogrammed decisions is known as a(n):

A) decision-support system.
B) artificial intelligence system.
C) decisional balance sheet.
D) transaction-processing system.
E) business decision mapping.

Question 78

A bank that uses a computer system to record deposits and withdrawals from its customers' accounts is most likely to use a(n) _____.

A) inventory management system
B) transaction-processing system
C) expert system
D) group decision-support system
E) artificial intelligence system

Question 79

The _____ stage begins when market demand peaks because most customers have already bought the product. At this stage, demand is typically replacement demand.

A) maturity
B) decline
C) embryonic
D) growth
E) conception

Question 80

The stage which immediately follows the embryonic stage in a product's life cycle is the _____ stage.

A) creation
B) maturity
C) decline
D) growth
E) conception