Question 1

According to_____ , the cost of computing will drop by 50 percent as computer-processing power doubles every 18months.
A) Moore's law
B) Gordon's law
C) the Peter principle
D) the rule of e-commerce
E) Gresham's Law

Accepted Answer

Moore's law is a principle that states that the number of transistors on a microchip doubles approximately every two years, leading to an exponential increase in processing power. The principle was named after Gordon Moore, co-founder of Intel. The law is based on observation and projection, and it has held true for several decades.

Question 2

Data encryption transforms data into complex, scrambled digital codes that can only be unencrypted by authorized users who possess unique decryption keys.

Accepted Answer

Data encryption is a process of converting plain text into a complex, scrambled digital code that can only be unencrypted by authorized users who possess unique decryption keys. This ensures the confidentiality and security of sensitive data.

Question 3

Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.

Accepted Answer

Most expert systems are rule-based and use a set of "if-then" rules to analyze data and provide recommendations or decisions.

Question 4

A table showing the order frequencies as well as the average dollar value of the orders of different segments of a catalog retailer's market would be an example of___________ .
A) an MIS
B) perceived knowledge
C) raw data
D) information
E) influential knowledge

Accepted Answer

A table showing the order frequencies and average dollar value of the orders provides processed and analyzed data, which is then transformed into information that can be used for decision making. Therefore, it falls under the category of information.

Question 5

The first company to use new information technology to substantially lower costs or differentiate products or services often gains ___________.
A) first-mover advantage
B) lower profits
C) less market adaptability
D) increased synergy
E) all of these

Accepted Answer

The first-mover advantage refers to the benefit gained by the first company to introduce a new technology in the market. This includes benefits such as greater market share, higher profits, and a competitive edge over rivals. The other options are not relevant in this context.

Question 6

Understanding that consumers wanted clean, convenient food when they were away from home was the information the first fast food restaurant founder used to___________ .
A) acquire a source of perceived knowledge
B) create a tactical advantage
C) create a first-mover advantage
D) pioneer sales in the consumer food industry
E) sustain a competitive advantage

Accepted Answer

The founder of the first fast food restaurant used the understanding that consumers wanted clean, convenient food when they were away from home to create a first-mover advantage in the fast food industry. This allowed them to establish themselves as the first and leading provider of this type of food, giving them a competitive edge over others who may have entered the market later.

Question 7

Why is information strategically important for organizations?
A) Information can be used to obtain first-mover advantage.
B) Information is derived from perceived knowledge, which limits its availability.
C) Information cannot be used as a medium of exchange.
D) Information creates suboptimization opportunities.
E) All of these are examples of why information is strategically important for organizations.

Accepted Answer

Information can give organizations a first-mover advantage, allowing them to be ahead of competitors in the market.

Answer: B 
 Perceived knowledge is not always readily available, making information that is derived from it unique and strategically important to organizations.

Answer: E 
 All of the options listed are examples of why information is strategically important for organizations.

Question 8

Pages listing all of the felony crimes perpetrated in a given city during the last decade would be an example of ____.
A) a resource allocation table
B) traditional knowledge
C) raw data
D) perceived knowledge
E) information

Accepted Answer

The pages listing all of the felony crimes perpetrated in a given city during the last decade would be an example of raw data, as it consists of unanalyzed and unprocessed information.

Question 9

The key to sustaining competitive advantage is___________ .
A) faster computers with more memory
B) using information technology to continuously improve and support the core functions of a business
C) the Internet
D) the ability of the managers to delegate
E) how important the company's culture perceives conceptual skills

Accepted Answer

Using information technology to continuously improve and support the core functions of a business is the key to sustaining competitive advantage. IT can provide real-time data analysis, streamline processes, and automate tasks, all of which give an organization an edge over its competitors. Faster computers, the Internet, and the ability to delegate are important, but they do not by themselves provide sustainable competitive advantage. The company's culture is also important, but it is not directly related to sustaining competitive advantage.

Question 10

Virtual private networks (VPN) and secure sockets layer (SSL) encryption perform basically the same function.

Accepted Answer

The answer of Virtual private networks (VPN) and secure sockets...

Question 11

Which of the following is one of the critical issues companies need to address in order to sustain a competitive advantage through information technology?
A) Who will have access to the information technology?
B) Will the purchase of the information technology be viewed as an expense or as an investment?
C) Does the firm's use of the information technology violate any ethical standards?
D) Is the firm's use of information technology difficult for another company to create or buy?
E) What government regulations may influence the company's use of information technology?

Accepted Answer

To sustain a competitive advantage, a firm's use of information technology should be difficult for competitors to replicate or acquire, ensuring uniqueness and a lasting edge in the market.

Question 12

Intranets are private company networks that allow employees to easily access, share, and publish information using Internet software.

Accepted Answer

Intranets are indeed private company networks that allow employees to easily access, share, and publish information using Internet software.

Question 13

Electronic data interchange, or EDI, is the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system.

Accepted Answer

EDI, or electronic data interchange, is a method of exchanging business documents electronically between companies' computer systems. It involves the direct transmission of data in a structured format without the need for human intervention.

Question 14

Data mining often reveals data clusters where three or more database elements occur together.

Accepted Answer

This statement is true. Data mining can uncover patterns or clusters where multiple database elements occur together, which can be useful for identifying trends or relationships in the data.

Question 15

It is important to understand that DSS programs should not replace managerial decision making.

Accepted Answer

While DSS programs can support and enhance managerial decision making by providing valuable information and analysis, they should not replace human judgement and decision making entirely. DSS should be used as a tool to aid decision makers, not to make decisions for them.

Question 16

Extranets are used to handle organizational transactions with suppliers and distributors.

Accepted Answer

Extranets are secure networks that allow organizations to communicate and exchange data with external parties such as suppliers and distributors. They are commonly used to handle transactions such as purchasing, inventory management, and shipping logistics.

Question 17

Electronic data interchange (EDI), extranets, and the Internet have proven to provide such a competitive advantage that managers are scrambling to find ways to use them in their own companies.

Accepted Answer

This statement is true. EDI, extranets, and the Internet have revolutionized the way companies do business and have provided a competitive advantage in the marketplace. Many managers are actively seeking ways to implement these technologies in their own companies to stay competitive.

Question 18

The term___________ refers to facts and figures that are in an unusable form.
A) nonspecific information
B) processed data
C) raw data
D) perceived knowledge
E) relevant information

Accepted Answer

Raw data is data that has not yet been processed or analyzed, and is therefore often in an unusable form until it is cleaned and formatted.

Question 19

Data and information are the same as knowledge.

Accepted Answer

Data and information are raw materials that can be used to create knowledge, but they are not the same thing as knowledge itself. Knowledge requires an understanding and synthesis of data and information.

Question 20

Three major types of information technology are used by executives, managers, and workers inside the company to access and share information. They are executive information systems, intranets, and corporate portals.

Accepted Answer

The statement is correct. Executive information systems, intranets, and corporate portals are indeed three major types of information technology used by executives, managers, and workers inside a company.

Quiz 16: Section 2: Control

According to_____ , the cost of computing will drop by 50 percent as computer-processing power doubles every 18months.

Data encryption transforms data into complex, scrambled digital codes that can only be unencrypted by authorized users who possess unique decryption keys.

Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action.

A table showing the order frequencies as well as the average dollar value of the orders of different segments of a catalog retailer's market would be an example of___________ .

The first company to use new information technology to substantially lower costs or differentiate products or services often gains ___________.

Understanding that consumers wanted clean, convenient food when they were away from home was the information the first fast food restaurant founder used to___________ .

Why is information strategically important for organizations?

Pages listing all of the felony crimes perpetrated in a given city during the last decade would be an example of ____.

The key to sustaining competitive advantage is___________ .