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Chapter 1
The Importance of MIS
True/False Questions
1) The number of transistors per square inch on an integrated chip doubles every 18 months
according to Moore's Law.
Answer: True
Rationale:
Moore's Law, formulated by Gordon Moore in 1965, states that the number of transistors on a
microchip doubles approximately every two years, which translates to an increase in
computing power and efficiency.
2) Moore's Law predicts that the price to performance ratio of computers will double once in
eighteen months.
Answer: False
Rationale:
Moore's Law focuses on the doubling of transistor density on integrated circuits, leading to
increased computing power, not specifically on the price-performance ratio. While increased
performance often accompanies advancements due to Moore's Law, it doesn't guarantee a
direct doubling of price-to-performance ratio.
3) Because of Moore's Law, the cost of data communications and data storage is essentially
zero.
Answer: True
Rationale:
Moore's Law contributes to the reduction in the cost of data communications and storage by
enabling the production of increasingly powerful and efficient computing hardware, which
drives down the cost per unit of data storage and transmission.
4) Today, because of Moore's Law, any routine skill is liable to be outsourced to the lowest
bidder.

Answer: True
Rationale:
Moore's Law has facilitated the automation and optimization of many routine tasks, leading
to increased outsourcing opportunities as businesses seek cost-effective solutions. This trend
is evident across various industries where routine tasks are increasingly automated or
outsourced.
5) Brad, an employee who works in the production department, has the ability to collaborate
well with others. Brad's ability to collaborate is an example of a routine skill.
Answer: False
Rationale:
Collaboration involves complex interpersonal skills, including communication, teamwork,
and empathy, which are not considered routine. Routine skills typically refer to repetitive
tasks or activities that can be easily automated or standardized.
6) Abstract reasoning is the ability to make and manipulate models.
Answer: True
Rationale:
Abstract reasoning involves the ability to understand and manipulate abstract concepts, often
by creating mental models or representations to solve problems or make decisions. This skill
is essential for tasks requiring strategic thinking and problem-solving.
7) Systems thinking refers to making a reasoned analysis of a problem and envisioning
potential solutions to the problem.
Answer: False
Rationale:
Systems thinking involves understanding how various components within a system interact
and influence each other to achieve a particular outcome. It goes beyond simple analysis and
solution envisioning to consider the holistic view of complex systems and their dynamics.
8) A person who is good at collaboration will avoid giving critical feedback to others.

Answer: False
Rationale:
Effective collaboration often requires open and constructive communication, including the
ability to give and receive critical feedback. Avoiding critical feedback can hinder the
collaborative process by preventing necessary improvements and adjustments.
9) The single most important skill for effective collaboration is to give and receive critical
feedback.
Answer: True
Rationale:
Critical feedback is essential for identifying areas of improvement, resolving conflicts, and
fostering continuous learning and development within a collaborative team environment. It
promotes transparency, trust, and mutual respect among team members.
10) Experimentation involves envisioning potential solutions and developing the most
promising ones.
Answer: True
Rationale:
Experimentation entails exploring various ideas, hypotheses, or solutions through systematic
testing and evaluation to determine their effectiveness and viability. It often involves creative
thinking and iterative refinement to identify the most promising approaches.
11) The term management information systems refers to the management and use of
information systems that help businesses achieve their strategies.
Answer: True
Rationale:
Management Information Systems (MIS) focus on utilizing information systems to support
and enhance business processes, decision-making, and strategic goals within an organization.
MIS help in organizing, analyzing, and presenting data to facilitate effective management and
decision-making.
12) A system is a group of components that interact without a specific purpose.

Answer: False
Rationale:
A system is defined as a group of interrelated components working together toward a
common goal or purpose. Systems are characterized by their structure, components, and
interactions, all of which contribute to achieving specific objectives or functions.
13) The five components of an information system are computer hardware, software, data,
procedures, and people.
Answer: True
Rationale:
The five-component framework of an information system includes hardware (physical
devices), software (programs and applications), data (information used by the system),
procedures (methods and instructions), and people (users and stakeholders). These
components work together to collect, process, store, and disseminate information to support
organizational activities and decision-making.
14) Applications such as MS Word and Excel are examples of procedures.
Answer: False
Rationale:
Applications like MS Word and Excel fall under the category of software in the fivecomponent framework of information systems. Procedures refer to the methods, rules, and
guidelines that govern the operation of an information system, including how data is input,
processed, stored, and output.
15) The number of components in an information system increases in proportion to its
complexity.
Answer: False
Rationale:
The number of components in an information system may vary depending on its specific
requirements and functions. Complexity is not solely determined by the number of
components but also by the interactions and relationships among them. Some systems may be

simple yet effective, while others may be complex with numerous interconnected
components.
16) The five-component framework also applies to simple information systems.
Answer: True
Rationale:
The five-component framework provides a conceptual model for understanding the structure
and function of information systems, regardless of their complexity. Even simple information
systems consist of hardware, software, data, procedures, and people, albeit in simpler forms
compared to more complex systems.
17) Users should take an active role in system development to create an information system
that meets their needs.
Answer: True
Rationale:
Involving users in system development ensures that the resulting information system aligns
with their needs, preferences, and work processes. User participation enhances system
usability, acceptance, and effectiveness by incorporating user feedback and addressing their
requirements throughout the development lifecycle.
18) Information systems exist to help people who work in a business to successfully
implement the strategies of that business.
Answer: True
Rationale:
Information systems support business operations by providing relevant information,
facilitating communication and collaboration, automating tasks, and aiding decision-making
processes. By assisting employees in executing tasks and achieving business objectives,
information systems contribute to the successful implementation of organizational strategies.
19) A company should develop information systems if most of its competitors have
developed information systems.
Answer: False

Rationale:
The decision to develop or invest in information systems should be based on the specific
needs, goals, and capabilities of the organization rather than solely on the actions of
competitors. While competitive factors may influence strategic decisions, organizations
should prioritize investments in information systems that align with their unique business
strategies and requirements.
20) The five components of information systems are symmetrical in their functions.
Answer: True
Rationale:
The five components of information systems—hardware, software, data, procedures, and
people—work together synergistically to fulfill the functions of collecting, processing,
storing, and disseminating information within an organization. Each component plays a
distinct role in supporting organizational activities and achieving business objectives,
contributing to the overall functionality and effectiveness of the system.
21) The hardware and software components of information systems are capable of
performing actions, according to the five-component model of information systems.
Answer: False
Rationale:
In the five-component model of information systems, hardware and software are not
inherently capable of performing actions on their own. They provide the infrastructure and
tools necessary for processing and managing data, but actions are initiated and directed by
human users or automated processes.
22) In the five-component model of an information system, data acts as a bridge between the
computer and the human sides.
Answer: True
Rationale:
Data serves as the link between the technical components (hardware and software) and the
human components (procedures and people) in an information system. It represents the

information processed and manipulated by the system, facilitating communication and
interaction between computers and users.
23) Software and procedures are part of the human side in an information system.
Answer: False
Rationale:
Software is a technical component of an information system, comprising programs and
applications that control and manage computer hardware. Procedures, while influenced by
human behavior, are also part of the technical side as they define the methods and
instructions for using the system effectively.
24) Software is the most important component of an information system.
Answer: False
Rationale:
While software is crucial for enabling the functionality of an information system, all
components (hardware, software, data, procedures, and people) are essential for the system's
overall operation and effectiveness. The importance of each component depends on the
specific context and requirements of the system and its users.
25) Low-tech systems move more work from the human side to the computer side than hightech systems do.
Answer: False
Rationale:
Low-tech systems typically require more manual intervention and human effort to perform
tasks compared to high-tech systems, which leverage advanced technologies and automation
to reduce human involvement. High-tech systems often shift more work from the human side
to the computer side by automating processes and improving efficiency.
26) The lower the amount of work to be moved from the human side to the computer side of
an information system, the higher the complexity of that system.
Answer: False
Rationale:

The complexity of an information system is not solely determined by the amount of work
shifted between the human and computer sides. Complexity depends on various factors,
including the interactions among system components, the degree of automation, the
integration of diverse technologies, and the overall design and architecture of the system.
27) When considering different information systems alternatives, it will be helpful to consider
the low-tech versus high-tech alternatives in light of the amount of work that is being moved
from people to computers.
Answer: True
Rationale:
Evaluating low-tech and high-tech alternatives involves assessing how they distribute work
between humans and computers. Low-tech solutions may require more manual effort but
could be simpler and less disruptive to implement, while high-tech solutions may automate
tasks but require more advanced technology and expertise.
28) Obtaining or developing new programs is more difficult than ordering additional
hardware.
Answer: True
Rationale:
Developing new software programs often involves complex processes such as coding, testing,
debugging, and integration, which require specialized skills and resources. Ordering
additional hardware, while still requiring planning and procurement, is typically more
straightforward and less labor-intensive than software development.
29) Changing personnel responsibilities to suit an information system is more disruptive to an
organization than developing new programs for the information system.
Answer: True
Rationale:
Changing personnel responsibilities involves organizational restructuring, training, and
cultural adjustments, which can be disruptive and time-consuming. Developing new
programs, while challenging, is often a more contained process that can be managed by IT
professionals within the organization or through outsourcing.

30) Changing databases causes more organizational disruption than changing working
procedures.
Answer: False
Rationale:
Changing databases may require adjustments to data structures, migration of data, and
updates to applications that rely on the database, which can be disruptive but are typically
managed by IT teams. Changing working procedures may involve retraining employees,
altering workflows, and adapting to new processes, which can have a more significant impact
on organizational operations and culture.
31) Hardware is the easiest to change of the five components of an information system.
Answer: True
Rationale:
Hardware components, such as computers, servers, and networking devices, can often be
replaced or upgraded relatively quickly and with minimal disruption compared to other
components like software, data, procedures, and people. Hardware changes typically involve
straightforward procurement and installation processes.
32) Information technology and information systems are synonymous terms.
Answer: False
Rationale:
While related, information technology (IT) and information systems (IS) are not
synonymous. Information technology refers to the hardware, software, networks, and
infrastructure used to manage and process information. Information systems encompass IT
components along with data, procedures, and people to support organizational processes and
decision-making.
33) Information technology is an assembly of hardware, software, data, procedures, and
people that produces information.
Answer: False
Rationale:

Information technology refers to the technology infrastructure and resources used to manage,
process, store, and transmit information, including hardware, software, networks, and
telecommunications. It encompasses the tools and platforms that enable the creation,
manipulation, and dissemination of data and information.
34) Information system refers to the products, methods, inventions, and standards that are
used for the purpose of producing information.
Answer: False
Rationale:
An information system refers to the coordinated arrangement of hardware, software, data,
procedures, and people designed to collect, process, store, and disseminate information
within an organization. It encompasses the entire system architecture and components
necessary to support organizational activities and decision-making processes.
35) People can buy information systems, but they cannot buy information technology.
Answer: False
Rationale:
Both information systems and information technology can be purchased, although they
represent different aspects of the technology landscape. Organizations can procure hardware,
software, and IT services as part of their information technology investments, while
information systems may involve purchasing pre-built solutions or developing custom
systems to meet specific business needs.
36) Data refers to the knowledge derived from information.
Answer: False
Rationale:
Data refers to raw facts, figures, and symbols that have yet to be processed or organized into
a meaningful context. Information, on the other hand, is data that has been processed,
structured, and contextualized to provide meaning and relevance for decision-making or
understanding.
37) Data becomes information when it is presented in a meaningful context.

Answer: True
Rationale:
Data by itself lacks context and significance. It becomes information when it is processed,
analyzed, and presented in a way that is relevant and useful for decision-making,
understanding, or communication. Contextualization gives data meaning and transforms it
into actionable knowledge.
38) You process employee statistics to obtain a meaningful understanding of your
organization. The data that you derive by processing becomes information.
Answer: True
Rationale:
By processing and analyzing employee statistics, you contextualize raw data into meaningful
insights about your organization's workforce. These insights enable informed decisionmaking and understanding, turning the processed data into valuable information.
39) Information systems become a waste of time and money when users work with inaccurate
data.
Answer: True
Rationale:
Information systems rely on accurate and reliable data to generate meaningful outputs and
support decision-making processes. When users work with inaccurate data, it can lead to
errors, inefficiencies, and poor decision-making, rendering the system ineffective and wasting
time and resources.
40) Data accuracy is a critical requirement of good information.
Answer: True
Rationale:
The quality of information depends on the accuracy, relevance, completeness, and timeliness
of the underlying data. Accuracy is particularly crucial as incorrect or unreliable data can lead
to flawed analysis, erroneous conclusions, and ineffective decision-making. Therefore, data

accuracy is a fundamental requirement for ensuring the integrity and usefulness of
information.
41) Developing systems that provide information in near real time is less expensive than
producing information a few hours later.
Answer: False
Rationale:
Developing systems capable of providing real-time or near real-time information often
requires sophisticated infrastructure, technologies, and processes to ensure data accuracy,
reliability, and timeliness. These systems typically incur higher costs due to the need for
specialized hardware, software, and continuous monitoring and maintenance.
42) Timeliness of data is not a critical component of good information.
Answer: False
Rationale:
Timeliness is a critical component of good information as it ensures that data is relevant and
useful for decision-making or other purposes. Outdated or stale information may lead to
incorrect decisions or missed opportunities. Timely information enables organizations to
respond promptly to changes and make informed decisions based on current data.
43) Data should be relevant to the subject, not to the context.
Answer: False
Rationale:
Data relevance refers to its significance and applicability to the specific context or situation in
which it is used. Contextual relevance ensures that data is meaningful and useful for
addressing particular needs, questions, or objectives. Therefore, data should be relevant both
to the subject matter and to the context in which it is analyzed or interpreted.
44) Data needs to be sufficient for the purpose for which it is generated, but just barely so.
Answer: True
Rationale:

Data sufficiency means that there is enough information available to fulfill the intended
purpose or meet the specific requirements of a task or analysis. However, collecting excessive
data beyond what is necessary can be wasteful and may introduce unnecessary complexity
and costs. Therefore, data should be sufficient but not excessive for its intended purpose.
45) A good information system is one that provides the users with more information than
what is required.
Answer: False
Rationale:
A good information system provides users with the right information, at the right time, and in
the right format to support their decision-making and operational needs. Providing excessive
or irrelevant information can overwhelm users, hinder decision-making, and reduce system
effectiveness. Therefore, a good information system delivers relevant and actionable insights
without unnecessary complexity or noise.
46) Information systems should be subject to the same financial analyses to which other
assets are subjected.
Answer: True
Rationale:
Information systems represent significant investments for organizations, and like other assets,
they should be subject to financial analyses such as cost-benefit analysis, return on
investment (ROI), and total cost of ownership (TCO) assessments. Evaluating the financial
implications of information systems helps organizations make informed decisions about
resource allocation, prioritization, and strategic investments.
47) Data is worth its cost when an appropriate relationship exists between the cost of data and
its value.
Answer: True
Rationale:
The value of data depends on its ability to contribute to organizational objectives, decisionmaking processes, and overall performance. Data is considered worth its cost when the
benefits derived from its use outweigh the expenses associated with its collection, storage,

processing, and management. Organizations should assess the cost-value relationship of data
to ensure efficient resource allocation and maximize return on investment.
48) Microsoft defines a strong password as one that contains no more than seven characters.
Answer: False
Rationale:
Strong passwords typically contain a combination of letters (both uppercase and lowercase),
numbers, and special characters, and they are generally longer than seven characters.
Microsoft and other reputable sources recommend creating complex passwords with a
minimum length of eight characters to enhance security and reduce the risk of unauthorized
access.
49) A good password must contain your user name, real name, or company name.
Answer: False
Rationale:
A good password should not contain easily guessable or readily available information such as
the user's name, username, or company name. Strong passwords are unique, complex, and
difficult to guess, making them more resistant to brute-force attacks and unauthorized access.
50) If you need someone's password, you should ask them to enter their password and look
away while they do that.
Answer: True
Rationale:
Requesting someone's password is generally discouraged for security reasons. If there is a
legitimate need to access someone's account, it's preferable to use secure authentication
methods such as single sign-on (SSO) or multi-factor authentication (MFA). Asking
individuals to enter their passwords while ensuring privacy by looking away helps maintain
security and confidentiality.
Multiple Choice Questions
1) ________ states that the number of transistors per square inch on an integrated chip
doubles every 18 months.

A) Nielsen's Law
B) Faraday's Law
C) Moore's Law
D) Newton's Law
Answer: C
Rationale:
Moore's Law, formulated by Gordon Moore, specifically states that the number of transistors
on an integrated circuit doubles approximately every 18 months, leading to exponential
growth in computing power and efficiency.
2) According to Moore's Law, the ________.
A) price of integrated chips will increase once in eighteen months
B) size of computing devices and integrated chips doubles every year
C) number of transistors per square inch on an integrated chip doubles every 18 months
D) size of computing devices and integrated chips reduce by fifty percent every year
Answer: C
Rationale:
Moore's Law predicts that the number of transistors per square inch on an integrated chip
doubles approximately every 18 months, contributing to the consistent increase in computing
power and efficiency over time.
3) Which of the following is a major implication of Moore's Law?
A) Data processing activities have become complex and time consuming.
B) Costs of computing and processing have increased.
C) Physical size of integrated chips has increased.
D) Costs of data communications and storage have become very low.
Answer: D

Rationale:
Moore's Law has led to a significant decrease in the costs of data communications and
storage by driving advancements in computing technology, resulting in increased storage
capacities and faster data transmission at lower costs.
4) Which of the following ratios has fallen as a result of Moore's Law?
A) price/performance
B) output/price
C) performance/input
D) performance/output
Answer: A
Rationale:
Moore's Law has contributed to a decrease in the price/performance ratio of computing
devices and systems over time, as the increasing number of transistors per square inch leads
to improved performance without proportional increases in cost.
5) Which of the following types of skills is most likely to be outsourced to the lowest bidder?
A) ability to experiment
B) accounting skills
C) ability to collaborate
D) abstract reasoning skills
Answer: B
Rationale:
Accounting skills are often considered routine and transactional, making them more
susceptible to outsourcing to lower-cost providers, whereas skills like experimentation,
collaboration, and abstract reasoning are typically more specialized and less easily
outsourced.
6) Which of the following is a nonroutine cognitive skill?

A) computer programming skill
B) marketing knowledge
C) tax accounting skill
D) systems thinking ability
Answer: D
Rationale:
Systems thinking ability involves the capacity to understand and model complex systems and
their interrelationships, making it a nonroutine cognitive skill compared to more routine tasks
like computer programming, marketing, or tax accounting.
7) Kerin is a business student interning at Benson and Hodgson, a firm specializing in exports
of sophisticated equipment to other countries. She finds that she is unable to create a
representative chart depicting the relation between processes such as procurement, shipping,
and billing. This indicates that she lacks ________ skills.
A) abstract reasoning
B) collaborative
C) experimental
D) systems thinking
Answer: A
Rationale:
Kerin's difficulty in creating a representative chart suggests a lack of abstract reasoning skills,
which involve the ability to conceptualize and manipulate models to understand complex
relationships and systems.
8) Abstract reasoning is the ability to ________.
A) work with others when performing tasks
B) make and manipulate models
C) act quickly on a problem

D) analyze and perform routine tasks
Answer: B
Rationale:
Abstract reasoning refers to the cognitive ability to create and manipulate mental models or
representations of complex concepts or systems, facilitating problem-solving and
understanding of abstract relationships.
9) ________ refers to the ability to model components and show how the components' inputs
and outputs relate to one another.
A) Abstract reasoning
B) Systems thinking
C) Dynamic correlation
D) Operational logic
Answer: B
Rationale:
Systems thinking involves the capability to analyze and model components within a system,
illustrating how their inputs and outputs interact and influence each other to achieve specific
outcomes or behaviors.
10) A manager will essentially require ________ skills to clearly understand how the
resources that his or her company uses are converted to desired outputs.
A) collaboration
B) experimentation
C) interpersonal
D) systems thinking
Answer: D
Rationale:

Systems thinking skills are essential for managers to understand and optimize the processes
and interactions within their organizations, enabling them to identify opportunities for
improvement and align resources to achieve desired outcomes.
11) You constantly analyze your work in terms of the contribution that you make to the
overall output of your organization. This shows your ________ skill.
A) collaboration
B) experimentation
C) systems thinking
D) interpersonal
Answer: C
Rationale:
Analyzing one's work in terms of its contribution to the overall output of the organization
demonstrates a systems thinking skill. Systems thinking involves understanding how
individual actions and components contribute to the larger system or organizational goals.
12) When presenting an idea to her colleagues, Marjorie failed to consider others'
perspectives and got defensive when people asked her questions. This situation indicates that
Marjorie lacks ________ skills.
A) systems thinking
B) collaboration
C) abstract reasoning
D) experimentation
Answer: B
Rationale:
Marjorie's inability to consider others' perspectives and her defensive response to questions
indicate a lack of collaboration skills. Collaboration involves working with others to achieve
a common goal, which requires effective communication, listening, and openness to different
viewpoints.

13) ________ is the activity of two or more people working together to achieve a common
goal, result, or work product.
A) Systems thinking
B) Abstract reasoning
C) Collaboration
D) Experimentation
Answer: C
Rationale:
Collaboration refers to the cooperative effort of two or more individuals working together to
achieve a shared goal, outcome, or work product. It involves communication, coordination,
and mutual support to accomplish tasks effectively.
14) Edwin leads a team of fifteen programmers. He constantly changes the procedures that he
uses to monitor, evaluate, and control the way his subordinates function. This shows his
ability to ________.
A) involve in systems thinking
B) experiment
C) make abstractions
D) relate outputs and inputs
Answer: B
Rationale:
Edwin's frequent changes to procedures indicate his ability to experiment. Experimentation
involves exploring different approaches or methods to achieve desired outcomes and making
adjustments based on feedback and results.
15) ________ refers to making a reasoned analysis of an opportunity, envisioning potential
solutions, evaluating those possibilities, and developing the most promising ones, consistent
with the resources one has.
A) Systems thinking

B) Abstraction
C) Collaboration
D) Experimentation
Answer: D
Rationale:
Experimentation involves systematically analyzing opportunities, generating potential
solutions, evaluating alternatives, and developing the most promising ones based on available
resources and constraints. It requires creativity, critical thinking, and adaptability.
16) Which of the following is an example of computer hardware?
A) a computer monitor
B) a browser
C) a spreadsheet
D) a user manual
Answer: A
Rationale:
A computer monitor is an example of computer hardware, as it is a physical device that
displays visual output from a computer system.
17) The storage disk in your computer is an example of the ________ component of
information systems.
A) hardware
B) software
C) database
D) procedure
Answer: A
Rationale:

The storage disk in a computer is a hardware component, as it is a physical device used to
store and retrieve data and software programs.
18) An operating system like Windows or Linux is an example of the ________ component
of an information system.
A) software
B) hardware
C) data
D) procedure
Answer: A
Rationale:
An operating system such as Windows or Linux is a software component of an information
system. It provides a platform for managing computer hardware resources and running
software applications.
19) Adobe Acrobat is an application that allows users to create and edit digital documents.
Adobe Acrobat is an example of a ________.
A) hardware
B) procedure
C) database
D) software
Answer: D
Rationale:
Adobe Acrobat is an example of software, as it is an application program that provides
specific functionality for creating, editing, and managing digital documents.
20) A customer relationship management (CRM) system contains the names and phone
numbers of customers. Such things stored in a CRM system are part of the ________
component.
A) software

B) data
C) procedure
D) people
Answer: B
Rationale:
The names and phone numbers of customers stored in a CRM system represent data, which is
a fundamental component of information systems. Data comprises the raw facts, figures, and
symbols used by information systems to generate meaningful outputs and support decisionmaking processes.
21) You follow certain steps to access the supplementary readings for a course when using
your organization's library management system. These steps that you follow are examples of
the ________ component of an information system.
A) procedure
B) data
C) software
D) hardware
Answer: A
Rationale:
The steps followed to access supplementary readings represent procedures, which are the
instructions or sequences of actions performed by individuals to accomplish tasks within an
information system.
22) The words that you type in an MS Word document is an example of ________.
A) procedures
B) data
C) processes
D) software

Answer: B
Rationale:
The words typed in an MS Word document represent data, which are the raw facts, figures, or
symbols input into an information system for processing, storage, and manipulation.
23) The five-component framework considers individuals who maintain the data and who
support the networks of computers as ________ components.
A) procedural
B) people
C) data
D) networking
Answer: B
Rationale:
In the five-component model, individuals who maintain data and support computer networks
are considered people components, as they play roles in operating, managing, and
maintaining the information system.
24) Business users who administer the development of information systems should
________.
A) have the skills to be a programmer or a database designer
B) take an active role in that system's development
C) refrain from involving themselves in software development
D) have a good understanding of programming concepts
Answer: B
Rationale:
Business users involved in administering the development of information systems should take
an active role in the system's development to ensure that it meets the organization's
requirements and objectives.

25) According to the five-component model of information systems, the ________
component functions as instructions for the people who use information systems.
A) software
B) data
C) hardware
D) procedure
Answer: D
Rationale:
In the five-component model, the procedure component functions as instructions or
sequences of actions that guide individuals in using information systems to accomplish tasks
or processes.
26) The process of automation is a process of moving work from ________.
A) processes to procedures
B) actors to instructions
C) instructions to actors
D) human side to computer side
Answer: D
Rationale:
The process of automation involves shifting tasks or processes from the human side to the
computer side of an information system, reducing manual intervention and increasing
efficiency through technological automation.
27) Which of the following components in the five-component model of information systems
is considered an actor?
A) software
B) hardware
C) data

D) procedure
Answer: B
Rationale:
In the five-component model, hardware components such as computers, servers, and
networking devices are considered actors as they actively process, store, and transmit data
within the information system.
28) The hardware components of an information system will act as a(n) ________.
A) bridge between computer side and human side
B) actor on the human side
C) instruction on the computer side
D) actor on the computer side
Answer: D
Rationale:
Hardware components in an information system function as actors on the computer side,
actively processing data and executing instructions to support the system's operations.
29) Your company uses a software tool to manage its supply chain. This software tool is an
________ of your company's information system.
A) instruction on the computer side
B) actor on the human side
C) instruction on the human side
D) actor on the computer side
Answer: A
Rationale:
A software tool used to manage the supply chain represents an instruction on the computer
side of the information system, providing functionality and processing capabilities to support
supply chain operations.

30) The ________ component in the five-component model of information systems is
considered a bridge that connects the computer side and the human side.
A) software
B) procedure
C) data
D) hardware
Answer: C
Rationale:
In the five-component model, the data component serves as a bridge connecting the computer
side (hardware and software) with the human side (people and procedures) by providing the
information necessary for system operation and decision-making.
31) Which of the following components constitute the computer side of information systems?
A) software and data
B) data and hardware
C) people and procedures
D) hardware and software
Answer: D
Rationale:
The computer side of information systems consists of hardware and software components that
process, store, and manipulate data to support organizational operations and decision-making
processes.
32) Which of the following components constitute the human side of information systems?
A) software and procedures
B) data and people
C) people and procedures
D) hardware and people

Answer: C
Rationale:
The human side of information systems includes people and procedures components, which
involve individuals who interact with and use the information system to accomplish tasks,
make decisions, and support organizational objectives.
33) Which of the following is a low-tech information system?
A) an inventory tracking system that produces reports every 24 hours
B) a file of email addresses stored in an email program
C) a customer support system that keeps track of product issues
D) a decision support system that analyzes multiple variables
Answer: B
Rationale:
A file of email addresses stored in an email program represents a low-tech information
system, as it involves basic data storage and retrieval functions without sophisticated
processing capabilities.
34) Which of the following components of an information system is the easiest to change and
causes the least amount of organizational disruption when changed?
A) hardware
B) software
C) developer
D) procedure
Answer: A
Rationale:
Hardware components of an information system are typically the easiest to change and cause
the least amount of organizational disruption when changed, as hardware upgrades or
replacements can often be performed relatively quickly and independently of other system
components.

35) Drother Sports Inc. is a sports equipment provider that markets its products through a
chain of retail outlets in three states. As part of its expansion strategy, the company decides to
open outlets in six more states and decides to revise its existing business processes.
According to the five-component model of information systems, which of the following
processes will be the least disruptive to the organization?
A) collecting demographic data from the new markets
B) developing new CRM software for the existing and new outlets
C) moving existing employees and hiring new employees
D) buying and installing new computers in the new outlets
Answer: D
Rationale:
Buying and installing new computers in the new outlets represents the least disruptive
process, as it primarily involves adding new hardware components without significant
changes to existing organizational processes or personnel.
36) Which of the following would be the most disruptive to an organization when
implementing an information system?
A) installing new hardware components
B) creating new databases
C) developing new programs
D) changing reporting relationships
Answer: D
Rationale:
Changing reporting relationships within an organization can be the most disruptive when
implementing an information system, as it involves restructuring roles, responsibilities, and
communication channels, potentially impacting employee morale and organizational culture.
37) It is generally more difficult to make changes to the ________ of an information system
than to the database itself.

A) software
B) hardware
C) programs
D) procedures
Answer: D
Rationale:
It is generally more difficult to make changes to the procedures (or processes) of an
information system than to the database itself, as procedures often involve complex
workflows, policies, and organizational practices that require careful planning and
coordination.
38) Glazer & Hicks is a firm that offers enterprise software solutions to independent retailers.
The firm recently bagged a contract from a major national retail chain to develop and
implement proprietary software that tracks inventory, restocking, and supplier information.
Which of the following actions will be most difficult to perform when implementing the new
information system?
A) upgrading the computer systems used by the retail chain
B) writing the programs for creating the software
C) changing the structure of existing databases that reflect supplier and customer data
D) training the employees to use and manage the new system
Answer: D
Rationale:
Training the employees to use and manage the new system is likely to be the most difficult
aspect of implementing the new information system, as it requires time, resources, and
organizational change management to ensure effective adoption and utilization of the
software.
39) Identify how information technology differs from information systems.
A) You can buy information technology, but not information systems.

B) People are an important component of information technology, but not of information
systems.
C) Information systems form a subset of information technology.
D) Unlike information systems, information technology is used for producing information.
Answer: A
Rationale:
Information technology refers to the hardware, software, networks, and other technological
components used to store, process, and transmit data, whereas information systems
encompass the broader organizational structures, processes, and interactions involving
people, technology, and data to support organizational goals and decision-making.
40) Which of the following is a component of an information system, but not of information
technology?
A) hardware
B) data
C) people
D) software
Answer: C
Rationale:
People are a component of information systems but are not typically considered a component
of information technology. Information technology components primarily include hardware,
software, data, and networks used to support organizational operations and decision-making.
41) Which of the following statements regarding information technology (IT) is true?
A) Information technology (IT) refers to the products, methods, inventions, and standards
that are used for the purpose of producing information.
B) Information technology is an umbrella term that covers information systems and the
products, methods, inventions, and standards used to produce information.

C) Information technology and information systems are synonymous with each other and can
be used interchangeably.
D) Information technology is an assembly of hardware, software, data, procedures, and
people that produces information.
Answer: A
Rationale:
Information technology (IT) encompasses the tools, techniques, and infrastructure used to
create, process, store, and exchange information. It includes hardware, software, networks,
and standards employed to produce, manage, and distribute data and knowledge.
42) Which of the following is considered information rather than mere data?
A) a list of property prices in a neighborhood
B) the return on investment of an advertising campaign
C) the total number of students in a school
D) the price of a company's shares on a given day
Answer: B
Rationale:
Information is data that has been processed, organized, or interpreted to have meaning and
relevance. The return on investment of an advertising campaign represents processed data
that provides insight or understanding, making it information.
43) Which of the following is a common description of information?
A) collection of unprocessed data
B) unbiased, non-contextual data
C) knowledge derived from data
D) list of recorded facts or figures
Answer: C
Rationale:

Information is often described as knowledge derived from data through processing, analysis,
or interpretation. It involves organizing and contextualizing data to provide meaningful
insights or understanding.
44) Which of the following is the best description of data?
A) information presented in a meaningful context
B) unbiased information
C) recorded facts or figures
D) knowledge derived from facts or figures
Answer: C
Rationale:
Data refers to raw, unprocessed facts, figures, or symbols that represent the basic elements of
information. It is typically in the form of records, observations, or measurements before being
organized or analyzed.
45) You have a spreadsheet that provides the airfares to different cities from New York. If this
is used to make a decision, it will be considered as ________.
A) knowledge
B) data
C) information
D) interpretation
Answer: B
Rationale:
In its raw form, such as a spreadsheet of airfares, the data represents unprocessed
information. Only after analysis or interpretation does it become information that can inform
decisions or actions.
46) Which of the following is a critical characteristic of good information?
A) abundance of details

B) accuracy
C) low cost
D) ease of creation
Answer: B
Rationale:
Accuracy is a critical characteristic of good information, ensuring that it is reliable,
trustworthy, and free from errors or distortions. Without accuracy, information may lead to
incorrect decisions or actions.
47) You are the production manager at a cola manufacturer's bottling plant. You receive a
report that contains the list of raw materials stored in the warehouse. You find that the list
includes items that are not present in the warehouse. The list that you received would qualify
as bad information because it is ________.
A) inaccurate
B) late
C) voluminous
D) too narrow in scope
Answer: A
Rationale:
The list qualifies as bad information because it is inaccurate, containing data that does not
correspond to the actual state of the warehouse. Inaccuracy undermines the reliability and
usefulness of information for decision-making.
48) Which of the following statements is true of good information?
A) Good information should go well beyond the scope of the purpose for which it is
generated.
B) Information should be relevant to the subject and not to the context.
C) Good information should be based on correct and complete data.

D) Good information is recovered from sources of information that provide information for
free.
Answer: C
Rationale:
Good information should be based on correct and complete data, ensuring its reliability and
relevance to the intended purpose. Incomplete or incorrect data can lead to flawed
conclusions or decisions.
49) The CEO of an organization asks the human resources manager to send information about
the rate of employee turnover in the organization for the last quarter. The manager sends the
salary details of new hires during this period. This information is likely to be of little use to
the CEO because it is ________.
A) inaccurate
B) not timely
C) irrelevant
D) too expensive
Answer: C
Rationale:
The provided information is likely irrelevant to the CEO's request for employee turnover rate,
as it focuses on salary details of new hires rather than turnover data. Irrelevant information
does not address the intended purpose or needs of the recipient.
50) The CEO of a large company asks the sales manager to report the sales figures of the
previous quarter. The manager immediately sends her the details of each invoice drawn up in
the previous quarter. This information is not good because it is ________.
A) too narrow in scope
B) inaccurate
C) not timely
D) more than what is required

Answer: D
Rationale:
The provided information exceeds the CEO's request by providing details of individual
invoices, which may be more information than necessary for assessing sales figures.
Providing more information than required can lead to inefficiency and information overload.
51) Good information must be ________.
A) inexpensive
B) relevant
C) widely available
D) voluminous
Answer: B
Rationale:
Good information must be relevant to the subject or context at hand. Relevance ensures that
the information addresses the needs, concerns, or objectives of the user, making it valuable
and useful.
52) You are looking to buy a home that costs less than $700,000, but your real estate agent
keeps sending you fliers for homes that cost $1,000,000 or more. This information is likely to
be useless because it is ________.
A) inaccurate
B) late
C) irrelevant
D) not reliable
Answer: C
Rationale:
The provided information is likely to be useless because it is irrelevant to your stated
preferences and needs. Irrelevant information does not address the specific requirements or
criteria of the user, diminishing its value and utility.

53) Information is considered to be inefficient if ________.
A) its level of accuracy is too high
B) it is availed ahead of time
C) it is just barely sufficient
D) it is irrelevant to the subject
Answer: D
Rationale:
Information is considered inefficient if it is irrelevant to the subject or context at hand, as it
fails to address the user's needs or objectives. Efficiency in information entails relevance,
accuracy, and timeliness.
54) Which of the following is the least critical aspect of good information?
A) data accuracy
B) timeliness of data
C) additional data
D) relevance of data
Answer: C
Rationale:
While additional data can enhance the richness or depth of information, it is not as critical as
data accuracy, timeliness, or relevance. Additional data may provide context or insights, but
its absence does not necessarily undermine the quality or usefulness of the information.
55) You ask your secretary to send information on the meetings that you need to attend in the
month. He provides you the details immediately, but he leaves out certain additional details
that he deems to be surplus to your requirements. Judge your secretary's action.
A) The information that your secretary provided was partly good as it was timely, but
insufficient.
B) The secretary provided adequate and timely information, but the information did not add
value to you.

C) The information that your secretary gave will be considered as good information.
D) The information that you obtained through the secretary was not timely and worth its cost.
Answer: C
Rationale:
The secretary's action of providing timely and relevant information aligns with the criteria for
good information. Although additional details were omitted, the provided information still
meets the immediate needs or objectives of the recipient.
56) Which of the following is true about the quality of information?
A) Information should be just barely sufficient for its purpose.
B) There is no such thing as bad information.
C) Information needs to be relevant to the subject, not to the context.
D) The more information you receive, the less you can afford to ignore.
Answer: A
Rationale:
Good information should be sufficient to fulfill its intended purpose or objective without
being excessive. It should provide the necessary insights or understanding without
unnecessary complexity or redundancy.
57) Which among the following is the most appropriate technique for creating memorable,
strong passwords?
A) base your password on the first letters of the words in a phrase
B) use your favorite foreign words
C) use dictionary words or phrases as passwords
D) use a collection of randomly picked letters, numbers, and special characters
Answer: A
Rationale:

Creating passwords based on the first letters of words in a phrase, known as passphrase
technique, generates strong and memorable passwords. Passphrases offer a balance between
complexity and usability, enhancing security while remaining easy to recall.
58) Vera wants to create a password. Which of the following is the strongest password that
she can use?
A) Vera@123
B) Vera@Vera
C) NewYork56$
D) NOOCSmyPw$42
Answer: D
Rationale:
The password "NOOCSmyPw$42" is the strongest option among the choices provided. It
includes a mix of uppercase and lowercase letters, numbers, and special characters, making it
resistant to brute-force attacks and dictionary-based cracking methods.
59) Which of the following is a valid guideline for maintaining good password etiquette?
A) Write down your password in an accessible location.
B) Never ask someone else for their password.
C) Give your password to your coworkers if you anticipate that they may need it in your
absence.
D) Share your password with the IT staff in your organization.
Answer: B
Rationale:
Maintaining good password etiquette involves safeguarding one's own password and
refraining from sharing it with others. Asking for someone else's password violates security
best practices and can lead to unauthorized access or breaches.

60) As the IT manager of your organization, you need to use a coworker's account to access
some information. In keeping with password etiquette, how would you go about getting his
password?
A) You ask the coworker to type in the password where required, while you look away.
B) You explain the urgency of the situation and ask the coworker to send you the password
through email.
C) You submit a formal letter to your coworker's manager, explaining the situation and
requesting that the password be sent to you.
D) You try out various combinations to see if you can guess your coworker's password.
Answer: A
Rationale:
In keeping with password etiquette and security protocols, the appropriate approach is to have
the coworker enter their password themselves while ensuring privacy by looking away. This
method prevents the IT manager from knowing the coworker's password while still allowing
access when necessary.
Essay Questions
1) State Moore's Law. What is the implication of Moore's Law for managers?
Answer: According to Moore's Law, "the number of transistors per square inch on an
integrated chip doubles every 18 months." Because of Moore's Law, the ratio of price to
performance of computers has fallen drastically. Therefore, it is important for managers to
realize that, because of Moore's Law, the cost of data communications and data storage is
essentially zero. The current business scenario is flooded with vast amounts of data that
requires the effective assistance of information technology. Many business ventures have
sprung up around this effect of Moore's Law. Future business professionals need to be able to
assess, evaluate, and apply emerging information technology to business.
2) Explain the four nonroutine cognitive skills that are key to career success today.
Answer: The four nonroutine skills identified as critical for organizations in the current
scenario are:
(1) Abstract reasoning—the ability to make and manipulate models.

(2) Systems thinking—modeling the components of the system and to connect the inputs and
outputs among those components into a sensible whole, one that explains the phenomenon
observed.
(3) Collaboration—developing ideas and plans with others; provide and receive critical
feedback.
(4) Experimentation—creating and testing promising new alternatives, consistent with
available resources.
3) Briefly describe the terms system, information system, and management information
system.
Answer: A system is a group of components that interact to achieve some purpose. An
information system (IS) is a group of components that interact to produce information. A
management information system is defined as a system that helps businesses achieve their
goals and objectives.
4) List and briefly explain the five-component model of an information system with an
example.
Answer: The five components described in the model are: computer hardware, software, data,
procedures, and people. These five components are present in every information system, from
the simplest to the most complex. For example, when you use a computer to write a class
report, you are using hardware (the computer, storage disk, keyboard, and monitor), software
(Word, WordPerfect, or some other word-processing program), data (the words, sentences,
and paragraphs in your report), procedures (the methods you use to start the program, enter
your report, print it, and save and back up your file), and people (you).
5) Why do businesses develop information systems? Also, point out some of the wrong
reasons businesses sometimes cite for developing information systems.
Answer: Information systems exist to help people who work in a business to achieve the
goals and objectives of that business. Information systems are not created for the sheer joy of
exploring technology. They are not created so that the company can be "modern" or so that
the company can show it has a social networking presence on the Web. They are not created
because the information systems department thinks it needs to be created, because the

company is "falling behind the technology curve," or for the sole reason that "every other
business has one."
6) What is the most important component of an information system? Why?
Answer: A user is the most important component of an information system. The user's mind
and his/her thinking are not merely a component of the information systems they use, they are
the most important component. This is so because, even if the user has the perfect
information system, if they do not know what to do with the information that it produces,
they are wasting both their time and money. The quality of one's thinking is a large part of the
quality of the information system.
7) Explain how the five components of an information system are arranged in terms of ease
of change and organizational disruption.
Answer: The five components of the information systems framework are: computer
hardware, software, data, procedures, and people. The five components are shown in order of
ease of change and the amount of organizational disruption. It is usually a simple matter to
order new hardware and install it. Obtaining or developing new programs is more difficult.
Creating new databases or changing the structure of existing databases is still more difficult.
Changing procedures, requiring people to work in new ways, is even more difficult. Finally,
changing personnel responsibilities and reporting relationships and hiring and terminating
employees are both very difficult and very disruptive to the organization.
8) How is information technology different from information systems?
Answer: Information technology and information systems are two closely related terms, but
they are different. Information technology (IT) refers to the products, methods, inventions,
and standards that are used for the purpose of producing information. IT pertains to the
hardware, software, and data components. On the other hand, an information system (IS) is
an assembly of hardware, software, data, procedures, and people that produces information.
Information technology drives the development of new information systems.
A crucial difference between the two terms is that, while you can buy IT, you cannot buy an
IS. That is, you can buy or lease hardware, you can license programs and databases, and you
can even obtain predesigned procedures. Ultimately, however, it is your people who execute
those procedures to employ that new IT. For any new system, you will always have training

tasks and costs, you will always have the need to overcome employees' resistance to change,
and you will always need to manage the employees as they utilize the new system.
9) Discuss the common definitions of information.
Answer: Probably the most common definition of information is that information is
knowledge derived from data, whereas data is defined as recorded facts or figures. Another
common definition is that information is data presented in a meaningful context. Another
definition of information that you will hear is that information is processed data, or
sometimes, information is data processed by summing, ordering, averaging, grouping,
comparing, or other similar operations. The fundamental idea of this definition is that we do
something to data to produce information.
10) What are the five characteristics of good information?
Answer: Data should be:
(1) Accurate—Good information is based on correct and complete data, and it has been
processed correctly as expected.
(2) Timely—Good information is produced in time for its intended use.
(3) Relevant—Good information is relevant both to the context and to the subject.
(4) Just sufficient—Good information is sufficient for the purpose for which it is generated,
but just barely so.
(5) Worth its cost—For good information to be worth its cost, there must be an appropriate
relationship between the cost of information and its value.

Test Bank for Using MIS
David M. Kroenke, Randall J. Boyle
9780133029673, 9780135191767, 9780134106786, 9780138132484, 9780136100751, 9780134606996

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