CH-13 Information Technology for Business – Business Essentials US Edition : Exam Guide

Chapter 13 Information Technology for Business 1. Electronic commerce (e-commerce) is popular with consumers but has hurt productivity. Answer: False Explanation: While e-commerce is popular with consumers, it has actually enhanced productivity by creating new market relationships around the globe. 2. Hypertext transfer protocol (HTTP) is a basic communications protocol used to receive e-mail. Answer: False Explanation: HTTP is a standardized coding system which links computers within the networks on the World Wide Web. 3. Hardware are programs that tell the computer how to function. Answer: False Explanation: Hardware are the physical components, such as keyboards, monitors, system units, and printers. 4. The application of electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information is called data warehousing. Answer: False Explanation: Data warehousing is the collection, storage, and retrieval of data in electronic files. 5. Intellectual property is something produced by a computer that has personal value. Answer: False Explanation: Intellectual property is something produced by the intellect or mind that has commercial value. 6. Information networks are leading to leaner companies with fewer employees and simpler organizational structures. Answer: True Explanation: Because networks enable firms to maintain information linkages among both employees and customers, more work and customer satisfaction can be accomplished with fewer people. 7. Enterprise resource planning (ERP) may allow a firm to check on the status of any customer order for specific products. Answer: True Explanation: ERP systems organize and manage a firm's activities across product lines, departments, and geographic locations. 8. Electronic conferencing is popular because it reduces travel expenses and saves money. Answer: True Explanation: Electronic conferencing allows people to communicate simultaneously from various locations via e-mail, phone, or video; this eliminates the need to travel. 9. One pitfall with VSAT satellite communications is that they tend to lack privacy. Answer: False Explanation: One crucial advantage of VSAT satellite communications is privacy. 10. In a client-server network, the client is typically a customer or supplier. Answer: False Explanation: The clients are usually the laptop or desktop computers through which users make requests for information or resources. 11. System software tells the computer's hardware how to interact with the software, what resources to use, and how to use them. Answer: True Explanation: An example of system software is Microsoft Windows 7 for PCs, which tells the computer's hardware how to interact with the software. 12. Microsoft Excel and Adobe Photoshop are examples of groupware. Answer: False Explanation: Microsoft Excel and Adobe Photoshop are examples of application software. 13. Through data mining, a manager can access demographic information on customers, for example, in order to decide which advertising media may be best to use. Answer: True Explanation: Data mining is the application of electronic technologies in searching, sifting, and reorganizing pools of data to uncover useful information; data mining would allow the uncovering of demographic data among consumers. 14. An information system may be a set of several information systems that share information. Answer: True Explanation: The information may be a set of information systems that share information while serving different levels of the organization, different departments, or different operations. 15. Trojan horses are malicious programs that replicate themselves like viruses. Answer: False Explanation: Trojan horses are not viruses because they do not replicate themselves. Instead, Trojan horses enter your computer at your request, disguised as harmless software or data files. 16. A router scrambles e-mail messages to get around security systems. Answer: False Explanation: A router is a table of available routes or paths, a "traffic switch" that determines which route or path on the network to send each piece of data after it is tested against the security policy. 17. Mass-customization tends to reduce the volume in which companies produce. Answer: False Explanation: Companies can still produce in large volumes; however, companies can incorporate unique, customer-specified options into the production of parts. 18. An application server, an e-mail server, and a print server are all computers that provide services shared by users. Answer: True Explanation: These servers are all computers that are assigned to specific tasks. 19. Computer-aided design (CAD) can increase the productivity of knowledge workers. Answer: True Explanation: Specialized support systems, such as CAD, have increased the productivity of knowledge workers. 20. A CAD system could help a sales manager learn what sales levels will likely result from various levels of advertising expenditures. Answer: False Explanation: A decision support system (DSS) would help with this; a DSS creates virtual business models and tests them with different data to see how they respond. 21. Spyware authors can use stolen information to create their own intellectual property. Answer: True Explanation: Spyware authors can then sell this "intellectual property" to other parties, or use it for marketing/advertising purposes and/or for identity theft. 22. A company's security policy can prevent certain data from passing through its firewall. Answer: True Explanation: A company can protect itself from potentially malicious programs by identifying data that it does not want to pass through the firewall. 23. Who has access to intranets generally? A) employees B) suppliers C) customers D) shareholders E) dealers Answer: A Explanation: A) Employees are able to access confidential information on matters related to the conditions of their employment or materials related to the company business. 24. What system allows outsiders limited access to a firm's internal information systems? A) intranets B) firewalls C) extranets D) directories E) satellites Answer: C Explanation: C) An example of limited access is the ability of buyers to enter a system to see what goods are available. 25. What is a computer-based system that allows people to communicate simultaneously from different locations via telephone, e-mail, or video? A) groupware B) a data communication network C) the Internet D) electronic conferencing E) hypertext Answer: D Explanation: D) An advantage of electronic conferencing is that it can eliminate travel time and save money for the company. 26. What feature allows people in remote locations to work simultaneously on one document? A) videoconferencing B) voice mail C) data conferencing D) digital information service E) text messaging Answer: C Explanation: C) Data conferencing can be used to work on documents that specify design components and production schedules. 27. What type of network links computers and workstations, usually within one building? A) satellite communication B) global positioning C) personal digital D) wide area E) local area Answer: E Explanation: E) A LAN requires only one computer system with one database and software system. 28. In client-server networks, who is the usual client? A) the computer through which users make requests for information B) the application through which users answer information requests C) the customer who does business online D) the supplier who checks the availability of components E) the network which supports the database and software systems Answer: A Explanation: A) The clients are usually the laptop or desktop computers. 29. What feature does a firewall provide? A) Internet access B) protection from electrical surges C) connectivity between stations in a LAN D) privacy protection E) links to computers in a WAN Answer: D Explanation: D) A firewall is set up to filter incoming information. 30. Which component directs the computer to the correct resources to use and how to use them? A) an application program B) system software C) an electronic spreadsheet D) a database E) management information systems Answer: B Explanation: B) System software are the programs that tell the computer how to function. 31. Which type of communication technology is attractive to businesses because it eliminates travel expenses? A) VSAT Satellite Communications B) extranets C) intranets D) electronic conferencing E) social networks Answer: D Explanation: D) Business colleagues can interact as if they were in the same room, even when oceans apart, thanks to electronic conferencing technology. 32. Who is the person who is in charge of operating systems for gathering, organizing, and distributing information? A) production manager B) operations manager C) information systems manager D) research and development manager E) communications manager Answer: C Explanation: C) Companies view their information as a private resource and therefore need the services of an information systems manager. 33. What is the name of the application used for searching, sifting, and reorganizing pools of data to uncover useful information? A) data warehousing B) data access C) data tapping D) data cleaning E) data mining Answer: E Explanation: E) Data mining is a powerful tool that aids managers in a range of tasks including costing, planning, and setting production targets. 34. Which cybercriminal activity refers to the act of luring Internet users to bogus Web sites? A) computer virus distribution B) spamming C) phishing D) Trojan horse distribution E) piracy Answer: C Explanation: C) Phishing or pharming schemes bait Internet users into visiting false Web sites that are able to steal their information. 35. Which term refers to the unauthorized stealing of personal information from a computer system? A) espionage B) leverage C) denial of service D) identity theft E) network flooding Answer: D Explanation: D) Identity theft is the fastest growing crime in the United States. 36. What is "spam"? A) a form of firewall B) intellectual property C) junk e-mail D) a form of hacking E) wireless mooching Answer: C Explanation: C) Spam is a greater problem than postal junk mail because of the low costs of the Internet and its large reach. 37. What is the name of software and hardware that prevent hackers from accessing a company's internal network? A) partition B) firewall C) extranet D) index E) security Answer: B Explanation: B) Firewalls are essential systems that secure a computer network. 38. A local preschool is considering the use of webcams inside of their classrooms. Which statement, if true, would BEST support the claim that this technology would NOT be a good idea? A) Parents prefer to communicate with their children's teachers face-to-face and via phone. B) Some parents want more information on how their children work in class. C) Teachers want feedback and recognition from parents. D) Administration encourages parents to communicate daily with the teachers. E) Teachers send weekly videos and photos of the children working in class. Answer: A Explanation: A) Clients have expressed preferred communication methods (face-to-face and via phone) that are in opposition to webcams (communicating with teachers through video-conferencing). 39. Which of the following BEST describes enterprise resource planning? A) an information processing application for routine business activities of a company's business units B) an information system for organizing and managing a firm's activities across product lines, departments, and geographic locations C) a system used for transforming data into information for use in decision making D) a computer-based electronic technology that assists in designing products by simulating a real product and displaying it in three-dimensional graphics E) an internal inventory of a company's product lines Answer: B Explanation: B) Enterprise resource planning (ERP) is an information system for organizing and managing a firm's activities across products, departments, and geographic locations. 40. How can customers order a personal computer from the online Dell site with exactly the features they desire? A) through mass production B) through unit production C) through process management D) through mass-customization E) through anti-virus software Answer: D Explanation: D) Although companies can produce in large volumes, each unit features the unique options the customer prefers with mass-customization. 41. Which of the following best describes an extranet? A) a software and hardware system that prevents outsiders from accessing a company's network B) a tool that searches Web pages containing the user's search terms and then displays pages that match C) a private network of internal Web sites and other sources of information available to a company's employees D) an Internet connection allowing outsiders limited access to a firm's internal information system E) a delivery system linked to production schedules Answer: D Explanation: D) The most common application, for example, allows buyers to enter a system to see which products are available for sale and delivery, thus providing convenient product-availability information. 42. At Chaparral Steel, delivery times, sales, profits, and customer service and loyalty have been boosted by a system that gives customers electronic access to the mill's inventories. What is the name of this system? A) distribution channel B) intranet C) handbook D) extranet E) product availability Answer: D Explanation: D) Extranets allow outsiders limited access to a firm's internal information network. 43. What system includes data conferencing and videoconferencing? A) electronic communication systems B) electronic conferencing C) group systems D) data communication networks E) data mining Answer: B Explanation: B) Electronic conferencing allows groups of people to communicate simultaneously from various locations via e-mail, phone, or video; two forms of electronic conferencing are videoconferencing and data conferencing. 44. What advantage does a communication system using VSAT satellite have? A) speed B) low cost C) privacy D) groupware E) spyware Answer: C Explanation: C) A company that operates its own VSAT system has total control over its communications without dependence on other companies. 45. What does a company need to operate so that it has total control over its communications without dependence on other companies? A) Web site B) VSAT system C) extranet D) groupware site E) enterprise planning Answer: B Explanation: B) One advantage, therefore, is privacy. 46. What is the most common type of network used in businesses? A) intranet B) client-server C) extranet D) hotspot E) anti-virus Answer: B Explanation: B) Most businesses have laptop or desktop computers through which users make requests for information or resources; servers are the computers that provide the services shared by users. 47. What is the major limitation of Wi-Fi? A) high cost B) privacy concerns C) productivity D) short range of distance E) installation challenges Answer: D Explanation: D) Each "hotspot," or access point, is actually its own small network; some of these services are free. 48. What are keyboards, monitors, and printers examples of? A) control B) hardware C) software D) databases E) servers Answer: B Explanation: B) Hardware includes any of the physical components of a computer network. 49. Which of the following best describes information? A) the useful interpretation of facts and figures B) a list of company names provided by the local Chamber of Commerce C) the collection of raw facts and figures D) controlled flow of words for a useful purpose E) databases and flowcharts Answer: A Explanation: A) Data are raw facts and figures that are transformed into information. 50. A cell phone store manager needs to forecast sales for the upcoming Black Friday sales weekend. Which information would be MOST helpful? A) the store with the least sales of all store locations for the past five years B) the store with the highest sales of all store locations for the past five years C) the cell phone model which earned the most revenue in all store locations for the past five years D) the total amount spent per customer in each cell phone store for all locations for the past five years E) the number of customers who entered the cell phone store for all locations Answer: D Explanation: D) Customer sales per store over time could be used to forecast how stores would do during the coming year. 51. Who most often needs information in order to conduct technical projects? A) middle managers B) members of the board of directors C) top-level managers D) knowledge workers E) network administrators Answer: D Explanation: D) Knowledge workers are employees for whom information and knowledge are the raw materials of their work—engineers, scientists, and IT specialists. 52. Which software can create products ranging from cell phones to auto parts at lower costs compared to manual modeling methods? A) application software B) operations software C) computer-aided manufacturing software D) computer-aided design software E) data warehousing software Answer: D Explanation: D) Computer-aided design helps knowledge workers design products by simulating them and displaying them in three-dimensional graphics. 53. Which system supports an organization's managers by providing daily reports, schedules, plans, and budgets? A) management application B) management operations C) management information D) management expert E) management enterprise Answer: C Explanation: C) Many management information systems—cash flow, sales, production scheduling, shipping—help managers find answers to such questions. 54. What is a management information system? A) a system that supports managers by providing daily reports, schedules, plans, and budgets that can be used for making decisions B) an easy-access application of an information system designed for instant access by upper-level managers C) an information processing application for use in business activities involving well-defined processing steps D) an interactive system that locates and presents information needed to support the decision-making process E) a repository of information resources related to the collection of data Answer: A Explanation: A) Many management information systems—cash flow, sales, production scheduling, and shipping—help managers find answers to such questions. 55. A small parochial school uses handwritten timecards and attendance sheets to calculate biweekly payroll and vacation time. Which statement, if true, would BEST support the idea by managers to convert to computer software to maintain employee records? A) The school has multiple types of employees, with different work schedules and different contracts, whose hours are calculated by hand. B) Part-time staffing has been allocated for payroll and human resource function. C) Employees often submit their timecards incorrectly. D) Employees often forget to submit their vacation request forms. E) The existing management is eager to switch to the new system for human resources. Answer: A Explanation: A) This statement indicates the complexity and amount of work involved with using the current system. 56. A small preschool decided to give its teachers access to a portable laptop during daily naptime. Administrators found over time that teacher productivity actually decreased. Which statement would BEST explain why teacher productivity has decreased in spite of the increased computer time? A) Too many children were disruptive during naptime hours. B) Teachers added more tasks to get done and could not complete them all during naptime. C) Teachers could not watch the children and work on the computer at the same time. D) The classroom lacked the necessary office equipment needed to be productive. E) Teachers spent most of the naptime surfing Internet Web sites unrelated to their work assignments. Answer: E Explanation: E) The teachers' actions directly relate to the decrease in productivity. 57. Which of the following best describes a decision support system? A) a system that supports an organization's managers by providing daily reports, schedules, plans, and budgets that can be used for making decisions B) a quick-reference, easy-access application of information systems specifically designed for instant access by upper-level managers C) a system of hardware and software that imitates human behavior D) an interactive system that creates virtual business models for a particular kind of decision and tests them with different data to see how they respond E) a processor that plans production and delivery schedules Answer: D Explanation: D) Decision support systems are interactive systems that create virtual business models and test them with different data to see how they respond. 58. The increase of technology in the workplace has resulted in more employees working at home and telecommuting. Telecommuting employees rely heavily on e-mail communication to complete work tasks. Which statement, if true, BEST supports those who claim that e-mail communication fosters increased misunderstandings? A) The high volume of e-mail discourages employees from interacting with coworkers face to face, thus leading to more misunderstandings. B) Most e-mail communication among workers is polite and to the point. C) People who e-mail frequently don't know how to communicate verbally with others. D) E-mail fosters more nonverbal communications between workers in a company. E) Workers communicate more frequently about work when e-mailing. Answer: A Explanation: A) The effects of the e-mail overload that are commonly experienced by employees can be discouraging and increase misunderstandings. 59. What does phishing or pharming involve the use of? A) intellectual property theft B) firewalls that prevent hacking C) viruses sent from one station to another in a LAN D) deceptive e-mails that imitate popular Web sites E) trading of company secrets Answer: D Explanation: D) Phishing and pharming trick computer users into giving out personal information. 60. In order for a virus to spread from computer to computer, what must it always attach itself to first? A) all available computer memory B) a worm C) a piece of spyware D) a piece of hardware E) a program Answer: E Explanation: E) A virus resides in a file that attaches itself to a program in order to migrate from computer to computer. 61. Which type of IT threat can spread without a computer user needing to open any software? A) worms B) Trojan horses C) spam D) spyware E) computer viruses Answer: A Explanation: A) Worms are a kind of virus that travel from computer to computer within networked computer systems without your needing to open any software to spread the contaminated file. 62. What type of users would download spyware? A) users seeking to prevent viruses from attacking B) users who are unaware that their computer activities will be monitored C) users who wish to prevent spam from entering their computer D) users who want easy access to their coworkers' files E) users who are keen to share documents Answer: B Explanation: B) Spyware is downloaded by users who are lured by "free software" offers; once installed, it crawls around to monitor the host's computer activities, gathering e-mail addresses and other important information. 63. What is a particularly sinister quality of spyware? A) It replicates itself, using up valuable computer memory. B) It often disguises itself as helpful software. C) It consumes bandwidth by flooding user inboxes with junk e-mail. D) It often leads to wireless mooching. E) It is completely legal. Answer: B Explanation: B) Spyware can masquerade as a friendly file available as freeware or shareware. 64. Which of the following best describes a firewall? A) a software and hardware system that prevents outsiders from accessing a company's internal network B) a tool that searches Web pages containing the user's search terms and then displays pages that match C) a private network of internal Web sites and other sources of information available to a company's employees D) an Internet connection allowing outsiders limited access to a firm's internal information system E) an extranet site that gives customers access to different product lines Answer: A Explanation: A) Firewalls are security systems with special software or hardware devices designed to keep computers safe from hackers. 65. Tamasaki Sushi Bar is located in the Cotswold Shopping Center in a busy uptown business district. It caters to a few art galleries, a theater, and a nearby technical college. Recently, Tamasaki has noticed a decrease in customers around the lunchtime hour, which is one of its primary sales times during the day. Many customers use cell phones and frequent the Internet cafe in the area during the lunch hour. Which statement, if true, could BEST explain the sagging sales experienced by Tamasaki? A) Most of the workers use the lunchtime hour for taking food out instead of eating in. B) The nearby establishments have their own cafeteria for employees and students to use. C) Technically savvy customers take advantage of deals offered via the Web sites and Facebook sites of the deli and bar-grill down the street. D) Limited parking spaces discourage customers from stopping by for lunch. E) College students prefer pizza and burgers for lunch and restaurant food for dinner. Answer: C Explanation: C) This statement indicates the willingness of technically savvy customers to patronize stores with online sales and service. 66. Many hotels have been exploring ways to allow customers to check out without waiting at the front desk upon leaving. This would greatly decrease checkout time and allow the front desk to be used for incoming and existing customers. One idea is to permit customers to pay for their hotel stay online the night before checkout and then to leave their keys in the room. Which statement, if true, would BEST support this new idea for checking out? A) Hotel customers have continually been requesting Internet access in their rooms. B) Hotel rooms now come equipped with free Internet access directly to the hotel's Web site through the television. C) More hotel customers now travel with laptops that have wireless Internet access. D) Most hotel checkout counters have additional services for customers' needs during their stay. E) Customers are willing to pay for Internet access through wireless and DSL connections. Answer: B Explanation: B) Existing technology and customers' use of television can facilitate online checkout by the greatest number of customers. 67. A small preschool collects its tuition payments from parents by automated bank drafts each month. Administrators at the school are considering online tuition collections through the use of a secure logon on their school Web site. Which statement, if true, would BEST support the idea of online tuition collections? A) The Web site already has a wealth of information on it that parents use each day. B) Parents are highly technically savvy and prefer the convenience of using the school's Web site for other functions like enrollment and admissions. C) School newsletters and flyers went paperless a few years ago. D) A small group of parents has expressed interest in paying their bills online. E) The teachers have also expressed a need to go digital with paperwork. Answer: B Explanation: B) The parents are willing to switch and have been receptive to using technology in related functions such as enrollment and admissions. 68. Why might businesses want to analyze data that reveal what consumers do in the marketplace? A) to be able to send them tailor-made advertisements B) to be able to close the customer service department C) to be able to reduce production costs D) to be able to stabilize employee turnover E) to be able to manage long-term costs Answer: A Explanation: A) Understanding how consumers act in the marketplace can provide enough information that the marketer can determine which specific media options and types of advertisements will be most appealing to specific consumer groups. 69. Kinsey Lighting, Inc. is a small retailer of decorative lamps and accessories for commercial businesses and residential homes. The company has been family-owned for two decades and has always advertised its business through local media outlets such as newspapers, yellow pages, and occasional radio spots. Recently, Kinsey has been talking with a Web designer about developing a company Web site. Which statement, if true, would BEST support Kinsey's decision to create a Web site for the business? A) There have been more younger families moving into homes in the area. B) The local business association has an online directory for its business partners. C) A new Web site business has opened up across the street from the lamp store. D) Online sales of similar businesses in the area have increased substantially over the years. E) A neighborhood supplier of lamp products just moved to another county. Answer: D Explanation: D) The positive online selling experiences of similar businesses can indicate success for this particular business with the same customers in the area. 70. A supermarket is considering automated checkouts that would allow customers to scan the prices of their foods while shopping. Scanners would be placed around the store in different locations. Which statement, if true, would BEST support the claim that this idea would work better than a floating checkout idea? A) There are good locations in the meat, dairy, and bakery aisles to support scanners. B) Scanners would be operated by customers during peak times. C) Portable scanners require yearly training for staff and customers. D) Handheld scanner technology doesn't require extra resources to operate and is virtually self-managed. E) The scanners are not portable and hence cannot be broken by customers. Answer: D Explanation: D) The scanner technology would have minimal cost to operate on a daily basis. 71. Black Friday is well-known as the start of the end-of-the-year holiday shopping season in the U.S. retail market. Stores offer a variety of up-to-the-minute deals to attract customers into the store between certain hours. Customers have begun to utilize electronic PDAs and cell phones to keep up with the myriad sales and deals in the stores. Which condition would MOST threaten customers' use of mobile technology while shopping in stores? A) Customers, upon entering stores, were body-scanned with magnetic detectors. B) Store sales were broadcast over loudspeakers. C) There were a limited number of Wi-Fi transmission hotspots inside the stores. D) Lighting inside of stores was too dim. E) Store personnel were not as helpful to customers with smartphones in their hands. Answer: C Explanation: C) Limited transmission ability would greatly hinder the use of the mobile devices while customers were shopping in stores. 72. Home Garden Center uses mobile customer service representatives in all of its stores. These floating personnel walk the huge warehouse with smart phones answering customer questions, pointing out locations of items, and directing customers to checkout. Which condition would MOST threaten the use of the mobile customer service at Home Garden Centers in the next business season? A) Incoming employees seem less technically savvy with mobile devices. B) Several store departments are swapping locations within the store facility. C) The size of the smartphone is causing some employees to continually drop the device. D) The current model of smartphone uses an operating system that no longer supports the store's customer service application program. E) There is a slight increase in the theft rate of smartphones from the stores. Answer: D Explanation: D) Upgrading the operating system on the smartphones would be a huge incurred cost for the company. 73. Which piece of information would be MOST helpful for college officials to determine whether the latest college open house was a success? A) The total number of attendees indicated more interest than in the past five years. B) The percentage of people interested in enrolling within six months was 20 percent. C) The number of people who attended was the highest in the past five years. D) The number of enrollment applications received was 80 percent of the total number of attendees. E) The number of attendees showing interest was high. Answer: D Explanation: D) A high percentage of the attendees applied for enrollment. 74. Which piece of information would be MOST helpful for executives at Sanmina-Sci, Inc. to determine whether they should close their service and repair facilities during the last week of the year? A) The employees of the facility have more vacation time toward the end of the year. B) The amount of service and repair calls in the facility is at the lowest levels during that week. C) New equipment deliveries are at their lowest prior to that week. D) The amount of work completed by employees prior to that week is the highest in the past year. E) The businesses that need equipment repaired from Sanmina-Sci are closed for holidays during that week. Answer: B Explanation: B) The lack of work during that week would warrant closing the company. 75. Sally wants to determine any changes in the plant's performance based on an estimated 20 percent increase in sales. What device will Sally most likely use? A) decision support system (DSS) B) groupware application C) spyware application D) CAD system E) enterprise resource planning (ERP) Answer: A Explanation: A) A DSS is an interactive system that creates virtual business models and tests them with different data to see how they respond; in other words, the managers can look at "what-if" scenarios by inputting various pieces of data and then studying the system's results. 76. Greg feels comfortable that no one can open and read his e-mails. What does Greg have installed in his computer? A) anti-virus software B) spyware C) encryption software D) a Trojan horse E) a worm Answer: C Explanation: C) The encryption system works by locking an e-mail message to a unique code number for each computer so only that computer, not others, can open and read the message. 77. Explain the principle of mass-customization. Answer: Mass-customization is a principle in which companies produce in large volumes, but each unit features the unique options the customer prefers. Explanation: This process is seen as an advance on the traditional assembly line. 78. Differentiate between data conferencing and videoconferencing. Answer: Data conferencing allows people in remote locations to work simultaneously on one document. Videoconferencing allows participants to see one another on video screens while the conference is in progress. Explanation: The net result is that people are able to collaborate on projects while located in different parts of a town, city, country, or world. 79. Give two examples of management information systems. Answer: Examples can include reports, schedules, plans, and budgets; all of these can be used for making decisions. 1. Customer Relationship Management (CRM) System: Manages customer interactions and data. 2. Enterprise Resource Planning (ERP) System: Integrates core business processes and functions. Explanation: These types of systems can be used for making both short- and long-term decisions. 80. Where is a firewall located? Answer: The firewall is located where the Internet and the company's internal network meet. Explanation: The firewall contains a security policy and a router in order to filter incoming data. 81. How has information technology affected organizational structure in terms of the number of employees and the organizational structure? Answer: Information technology is leading to leaner organizations with fewer employees and simpler structures. Explanation: Firms are able to use networks to link employees, customers and suppliers. 82. How do networks and technology lead to leaner companies? Answer: Networks and technology lead to fewer employees and simpler structures today. Networks enable firms to maintain information linkages among both employees and customers. Explanation: More work and customer satisfaction can be accomplished with fewer employees. 83. Why is electronic conferencing a desirable alternative for business? Answer: Electronic conferencing eliminates the need for travel and saves money by allowing groups of people to communicate from various locations. Explanation: People can interact as if they were in the same room, even though they are not. This form of technology saves travel and related expenses. 84. What is the difference between data and information? Answer: The term data refers to raw facts and figures. The term information usually refers to a useful interpretation of data. Explanation: Therefore data is the basis of information that drives managerial decisions. 85. How can companies use computer-aided design to produce better products? Answer: Computer-aided design (CAD) assists in designing products by simulating the real product and displaying it in three-dimensional graphics. CAD is able to create faster designs at lower cost than manual modeling methods. Explanation: Products ranging from cell phones to auto parts are created using CAD. 86. What is a decision support system? Answer: A decision support system (DSS) is an interactive computer-based system that creates virtual business models and tests them with different data to see how they respond. Explanation: This type of system is particularly useful for managers who face a particular kind of decision repeatedly since it is designed to challenge managers and provide helpful recommendations. 87. Explain the danger of a computer virus. Answer: A virus exists in a file that attaches itself to a program and migrates from computer to computer, swallowing up available memory. Explanation: A virus does not infect the system unless the user opens the contaminated file. 88. How do companies use intranets to improve productivity and performance? Answer: An intranet is a private network of internal Web sites and other sources of information available to a company's employees. The readily accessible information can result in shortened lead times in production as well as quicker delivery times to customers. Explanation: The ease of accessing and sharing information has a positive impact on productivity and performance efficiency. 89. What is the purpose of a knowledge information system? Answer: A knowledge information system supports knowledge workers by providing resources to create, store, use, and transmit new knowledge for useful applications. Explanation: An example of a knowledge information system is a database to organize and retrieve information for data analysis. 90. How is a Trojan horse different from a worm? Answer: A worm travels from computer to computer; a Trojan horse does not replicate itself. Explanation: Once installed, a Trojan horse may cause damage—from the redesign of desktop icons to the deletion and destruction of files. 91. An incoming message has not passed the company's security policy. What happens now? Answer: The message is blocked and cannot flow between the two networks; the message does not pass through the router. Explanation: This step is part of the process in securing networks for large and small companies. 92. Discuss the impacts information technology has had on the business world. Answer: The growth of IT has changed the very structure of business organizations. Its adoption provides new modes of communication, including portable offices, resulting in the geographic separation of the workplace from headquarters for many employees. By providing instantaneous access to company information, IT has layered the workforces in many companies, enabling them to streamline with fewer employees and simpler structures, which contributes to greater flexibility in serving customers and enables closer coordination with suppliers. IT's global reach facilitates project collaboration with remote business partners and the formation of new market relationships around the globe. Just as electronic collaboration has changed the way employees interact with each other, IT networks have created new manufacturing flexibility for mass customization, and Internet access has brought new opportunities for small businesses. 93. Identify the IT resources businesses have at their disposal and how these resources are used. Answer: The Internet and the Web serve computers with information and provide communication flows among networks around the world. For many businesses, the Internet is replacing the telephone, fax machine, and standard mail as the primary communications tool. To support internal communications, many companies maintain internal Web sites—intranets— accessible only to employees. Some firms give limited access to outsiders via extranets for coordination with suppliers and customers. VSAT satellite networks provide private long-distance communications for voice, video, and data transmissions. Computer networks enable the sharing of information, hardware, software, and other resources over wired or wireless connections. Software includes programs to meet specific user needs, such as groupware with voice and video connections for remote collaboration. 94. Describe the role of information systems, the different types of information systems, and how businesses use such systems. Answer: An information system enables users to collect, process, and transmit information for use in decision making. Because they work on different kinds of problems and in different areas of businesses, users have access to the specialized information systems that satisfy their different information needs. Knowledge information systems support knowledge workers by providing resources to create, store, use, and transmit new knowledge for useful applications. Management information systems support managers by providing reports, schedules, plans, and budgets that can then be used for making decisions at all levels, ranging from detailed daily activities to long-range business strategy. The many uses of information systems include experimenting to test the effectiveness of potential decisions, data mining to identify shopping trends and to plan for new products, workforce scheduling, and planning delivery schedules from suppliers and to customers. 95. Identify the threats and risks information technology poses on businesses. Answer: IT has attracted abusers that do mischief, with severity ranging from mere nuisance to outright destruction costing companies millions. Hackers break into computers, stealing personal information and company secrets, tampering with data, and launching attacks on other computers. Once inside a computer network, hackers are able to commit identity theft, the unauthorized stealing of personal information to get loans, credit cards, or other monetary benefits by impersonating the victim. Even the ease of information sharing on the Internet poses a threat: It has proven costly for companies who are having an increasingly difficult time protecting their intellectual property, such as software products, movies, and music. Another IT risk facing businesses is system shutdown and destruction of software, hardware, or data files by viruses, worms, and Trojan horses. Spam's damage, too, is costly in lost time and productivity. 96. Describe the ways in which businesses protect themselves from the threats and risks information technology poses. Answer: Most systems guard against unauthorized access by requiring users to have protected passwords. In addition, many firms rely on safeguards such as firewalls so that only messages that meet the conditions of the company's security policy are permitted to flow in or out of the network. Firms can protect against identity theft by using assistance from advisory sources such as the Identity Theft Resource Center and by implementing the identify-theft protection provisions of the federal FACTA rule for maintaining and destroying personal information records. To combat viruses, worms, and Trojan horses, anti-virus software products search incoming e-mails and data files for "signatures" of known viruses and virus-like characteristics. Contaminated files are discarded or placed in quarantine for safekeeping. Additional intrusion protection is available by installing anti-spyware and spam filtering software, and from lawsuits against spammers. 97. Explain how a firewall keeps computers safe from hackers. Answer: The firewall is located between the Internet and the company's internal network. If a message meets the conditions of the company's security policy, the message is routed through the firewall and permitted to flow between the two networks. Bill Chung is the recently appointed Vice President of Information Systems for Worldwide Corporation. This is a newly created position. Bill joins the preexisting management team of Vice Presidents for Operations, Finance, and Marketing. Bill is determined to make himself useful and to improve the way Worldwide does business. Very quickly, Bill observes that Worldwide has collected lots of data but rarely uses it to make decisions. During his first week of work, he comments to the company's president, Cindy Stevens, that the company has plenty of data but very little information. Cindy looks puzzled. 98. Cindy is confused over the difference between system software and application software. How might Bill explain the difference? Answer: Bill can explain that system software tells the computer's hardware how to interact with the software, what resources to use, and how. Bill can then explain that application software includes programs that meet the needs of specific users. 99. Bill needs to explain the difference between data and information. What are the key points that Bill should make? Answer: The term data usually refers to raw facts and figures. The term information usually refers to a useful interpretation of data. As such, Worldwide has collected plenty of data but has not organized the data into a format that is useful for making decisions. 100. Bill has considered implementing a computer-aided design (CAD) system at Worldwide. How could Worldwide benefit from such a system? Answer: A CAD system helps with the design of products by simulating them and displaying them in three-dimensional graphics; CAD creates faster designs at lower cost than manual modeling methods. 101. Bill has to explain the difference between worms and Trojan horses. What should he say? Answer: Worms are a type of virus that travels from computer to computer within networked computer systems, without needing to open any software to spread the contaminated file. Trojan horses do not replicate themselves; they most often come into the computer, at the user's request, masquerading as a harmless software product or data file. 102. How can Worldwide benefit from enterprise resource planning (ERP)? Answer: Enterprise resource planning (ERP) is an information system for organizing and managing a firm's activities across product lines, departments, and geographic locations. The ERP stores real-time information on work status and upcoming transactions, and then notifies employees when action is required if certain schedules are to be met. Further, ERP coordinates internal operations with activities of outside suppliers and notifies customers of upcoming deliveries and billings. 103. Key information seems to be distributed across a number of computers around the company but is inaccessible to most employees. What technological solution will allow all employees to share key information? Answer: Bill should suggest that the company install an intranet, a private network of Web sites and other sources of information available to a company's employees. Implementing a centralized intranet system or cloud-based collaboration platform, such as Microsoft SharePoint or Google Workspace, will allow all employees to share key information. This ensures easy access, improved collaboration, and efficient information management across the company. 104. In what way is Worldwide prepared for data mining? Answer: Worldwide has already collected lots of data but rarely uses them to make decisions. Data mining would allow Worldwide to apply electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information. 105. Cindy has expressed concern over identity theft by hackers gaining access to Worldwide's data. Bill explains that not all identity theft is committed by hackers. How might Bill explain this to Cindy? Answer: Identity theft can be committed by crooks who dig in trash, intercept phone messages, lure Internet users to bogus Web sites, and steal mail. 106. As Bill proposes increased spending on network technology, Cindy is concerned that Bill is driving the company toward bankruptcy. Bill assures her that this is not the case. How can increased technology improve productivity and performance? Answer: Networked information technologies can result in increased productivity and performance through leaner companies with fewer employees and simpler organizational structures. Further, companies experience reductions in middle management positions and shrinkage of layers in organizational structures, greater variety of products for customers and faster delivery cycles, increased collaboration among internal units as well as with outside firms, and better decision making by managers at all levels because of increased information. 107. Worldwide's Vice President for Marketing is planning to fly in his eight area sales managers for a yearly planning session. The company's Vice President for Finance complains that Worldwide is in a weak cash position and looks to Bill for a technological alternative to Ralph's planning session. What can Bill suggest? Answer: Bill should suggest the use of electronic conferencing, which includes data conferencing and videoconferencing. Electronic conferencing would be a good alternative because it eliminates travel and thus saves money; it allows groups of people to communicate simultaneously from various locations via electronic mail, video, or telephone. Bill can suggest conducting a virtual meeting or conference using video conferencing tools like Zoom or Microsoft Teams, which would eliminate travel costs and time. Additionally, using collaborative online platforms such as Google Workspace or Microsoft SharePoint can facilitate real-time planning and document sharing without the need for physical presence, thereby reducing expenses and enhancing efficiency in the planning process. 108. The most common type of network used in businesses is a client-server network. Explain what might comprise Worldwide's client-server network. Answer: The client-server network at Worldwide is likely to be very similar to other companies' such networks. Clients are usually the laptop or desktop computers through which users make requests for information. Servers are the computers that provide the services shared by users; application servers, print servers, e-mail servers, etc. are examples. Retepson, Inc. has been in business for over 50 years. Retepson is best known for its "Guide to Colleges" line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether new developments in information technology will make its current business model obsolete. 109. Which of the following questions is most relevant to Retepson's decisions with respect to the viability of its business model? A) Does Retepson currently have high market share or low market share in the industries in which it competes? B) Has Retepson been profitable throughout its history? C) Would the profit margins of any new businesses be higher or lower than current profit margins? D) To what extent will college students be likely to choose books to get information about colleges? E) Are people who bought Retepson books in the past likely to buy new editions of those books after they leave college? Answer: D Explanation: D) Retepson is concerned that its entire business model won't work given advancements in technology. To answer that question, it needs to look outside issues related to its current business, which eliminates Choices A, B, and C. The essential issue is whether people will want to buy those books, because if they don't, then no one will be interested in advertising in them, either. So Choice D gets at the most important issue. Choice E wouldn't help because it makes no sense to try to sell new versions of college guides to people who no longer need them. Marquand: Information technology has had its biggest impact on business in communication and access to data. With the networking and streamlined communication modalities now available to businesses, businesses can collaborate with each other as well as within a business at different locations with the greatest of ease. Businesses also have access to a greater range of information and at a greater speed than ever before. And with this information being constantly updated, businesses now have the ability to plan in response to market conditions with much greater efficiency than before. Stevenson: Information is important, but what's most important is how that information is used. And there is no more direct way that information technology has helped businesses than the ability to sell directly. Selling online has opened up entirely new markets that allow businesses to make greater profits, with greater efficiency, than ever before. Many businesses, such as Amazon, have been able to use online selling exclusively to dramatic effect: without having to spend money on bricks-and-mortar storefronts, they can make billions in profits selling products at low prices. 110. Which of the following is at issue between Marquand and Stevenson? A) whether online selling is an important factor in business today B) whether information technology has made a significant difference to businesses C) whether doing business is significantly helped by online communications D) what the most important effect of information technology has been on business E) what has changed in business since the advent of the latest information technology Answer: D Explanation: D) Marquand thinks that the most important effect of information technology on business has been in the area of communication, while Stevenson thinks it is most important in its direct impact on sales. Choice A: Although Stevenson thinks online selling is the most important impact of information technology on business, Marquand does not disagree that it has importance, because Marquand simply says that the area of communications is the most important area of impact. Choice B: Both of them agree that information technology has made a significant impact on business. Choice C: Stevenson does not think that communications are an insignificant area of impact–he merely says that direct selling is the most important area. Choice E: Marquand and Stevenson only disagree about what the most important effect information technology has had on business. 111. Which of the following, if true, would best support Marquand's position? A) Having information to help it plan gives a business the greatest competitive edge. B) Information technology has given consumers more choices than ever before. C) The majority of consumers make at least one online purchase per month. D) Information technology has greatly increased the choices available to consumers. E) Most businesses are motivated to take advantage of the latest information technology. Answer: A Explanation: A) This would strongly support Marquand's position since it would mean that information technology can be used to greatest competitive edge by a business in planning, as opposed to, for example, sales. Choice B relates mainly to the impact of information technology on consumers and does not specifically support Marquand's position. Choice C may support Stevenson's position since it relates to sales made over the Internet. Choice D relates to consumer choice, although Marquand's focus is businesses' ability to plan. Choice E does not say specifically how businesses use the latest information technology. 112. Which of the following, if true, would best support Stevenson's position? A) In general, the more that information technology is used by businesses, the better they perform. B) Businesses that exclusively sell online have been the fastest-growing. C) The most successful businesses are those that make use of information technology. D) Many more businesses sell their products over the Internet now than in the past. E) Easily packaged imperishable consumer goods are those that are best suited to being sold over the Internet. Answer: B Explanation: B) This suggests that selling online is the single greatest factor that helps a business succeed. Choices A and C merely say that use of information technology helps businesses, but do not say how. Choice D says that the practice of online selling has been increasing, but does not suggest that that is the greatest factor in the success of businesses. Choice E suggests that those businesses that sell easily packaged imperishable consumer goods might benefit the most from Internet selling, but not that it is the most important factor in any business's success using information technology. 113. Which of the following is assumed by Marquand? A) All businesses now use information technology for communications and information. B) Relatively few businesses sell products online. C) Less information was available to businesses before the information technology revolution than there is now. D) Consumers preferentially choose to buy from businesses that use the latest information technology. E) Selling online is relatively unimportant to most businesses. Answer: C Explanation: C) Marquand states that businesses benefit tremendously from access to information that they have through current information technology, which they would not have had when current information technology was not available. Choice A: Marquand does not assume that all businesses actually benefit from information technology, just that those who do use it benefit greatly from it. Choices B and E are incorrect because nothing is assumed by Marquand about the importance or prevalence of online selling for businesses. Choice D: Marquand states that businesses benefit from their actual use of information technology, not that the use of information technology in itself draws customers to businesses. 114. Which of the following is assumed by Stevenson? A) Most people do not like shopping at traditional retail stores. B) Many businesses are reluctant to adopt the latest information technology. C) Most consumers use the Internet primarily to buy goods. D) The greatest benefit of information technology has been to businesses. E) Many products are more efficiently sold online than in traditional stores. Answer: E Explanation: E) If businesses have most benefited from information technology by direct selling online as opposed to selling in physical stores, there must be many products that consumers prefer to buy online. Choice A: Many consumers may simply prefer online shopping to traditional shopping without actually disliking shopping at traditional retail stores. Contrary to Choice B, Stevenson assumes that many businesses have been using information technology. Choice C: Purchasing goods may be a relatively minor part of consumer Internet use. Stevenson just assumes that a significant enough amount of sales do come from the Internet that it makes a big difference for business that sell products online. Choice D is incorrect because it may be that consumers benefit more from information technology than businesses do. Stevenson just assumes that businesses do derive an important benefit from it. Interstate Insurance is looking to upgrade the company's information technology. Information technology is used for a variety of purposes, so the company needs to prioritize its needs and find out in what areas the company needs to improve its information technology. 115. Interstate's Chief Information Officer thinks that improvements to the company's wide area network (WAN) should be a priority for the company. Which of the following, if true, would strengthen the CIO's position? A) Interstate's various branches rely greatly on information-sharing with each other. B) Much of the hardware that is used in Interstate's offices has not been upgraded in some time. C) Interstate sales reps rely on collaborative work with other reps in the same office. D) Existing e-mail servers at many of Interstate's locations are often full. E) Interstate is hiring many new sales reps who need extensive training. Answer: A Explanation: A) The company's WAN enables long-distance communication. If the company's various branches in different locations rely heavily on being in touch with each other, then improvements in the company's WAN should be a priority. Choices B and D relate to hardware issues rather than the company's WAN. Choice C: WAN helps with long-distance communication, not communication with workers in the same office. Choice E is incorrect because hiring and training of new employees does not directly relate to the company's WAN. 116. Interstate's head of human resources claims that the company needs to focus on improvements in the software available to employees. Which of the following, if true, would strengthen her position? A) Many Interstate employees complain of slow, outdated computer hardware. B) Interstate has been slow to upgrade its employees' web browsers with the latest versions. C) The company's IT department spends a large portion of its time upgrading software. D) Interstate's business has been weak recently due to an industry slowdown. E) Most of Interstate's sales are done by means of personal selling. Answer: B Explanation: B) Problems with web browsers is a software issue and therefore indicates that improvements in software are needed. Choice A describes a hardware issue, which improvements in software would not directly address. Choice C suggests that software improvements have been adequately addressed. Choice D describes an external issue that is irrelevant to the company's software. Choice E does not suggest anything directly related to a software issue. 117. Some employees claim that Interstate's intranet needs to be overhauled. Which of the following, if true, would strengthen this position? A) Interstate is currently lagging behind many of its competitors. B) Interstate uses the latest in real-time marketing information technology. C) Interstate's sales reps mostly work from independent self-run offices. D) Interstate relies heavily on internal electronic media for employee training. E) Interstate's Web site has not had a major update in some time. Answer: D Explanation: D) This indicates that intranet functions are very important to the company and that a priority should be placed on them. Choices A, B, C, and E do not indicate anything about the company's intranet functions. 118. Interstate's marketing director thinks that the company's data mining ability should be upgraded. Which of the following, if true, would strengthen his position? A) Executives at Interstate want to use decision support systems to test business models. B) Interstate uses VSAT communications to relay confidential information among its various branches. C) Interstate's various branches do a lot of electronic conferencing with one another. D) Customers complain that the company's Web site is too difficult to use. E) Interstate's rate of new customer acquisition has steadily declined over the last two years. Answer: E Explanation: E) Effective use of customer info can help a company find new customers. This scenario suggests that the company's data mining ability should be improved. Choice A is an issue dealing with an interactive system, to which data mining is not directly relevant. Choices B and C deal with long-distance communications, which is not directly relevant to data mining. Choice D has to do with customer use of the company's extranet systems, and not with actual mining of data. 119. Many at Interstate feel that the information systems at the company are not sufficiently tailor-made to each of the functions of the different departments. Which of the following issues is most relevant to deciding whether this should be a priority? A) the degree to which the various departments differ in their work functions B) the last time that employees' hardware at their workstations was updated C) the extent to which customers are satisfied with their online experience with the company D) whether the marketing department uses data mining to get information on customers E) whether the company's executives are confident about the direction the company is taking Answer: A Explanation: A) The degree to which departments differ in their work functions will greatly affect the extent to which their information systems will need to be customized to be most helpful in their work. Choice B is a general issue about hardware that does not directly impact the information systems that departments use. Choice C relates to customers' experience of the company Web site, not directly to the information systems used by Interstate's various departments. Choice D relates to a specific function of one department, and does not tell anything about how the functions of the different departments vary. Choice E is a very general issue that does not bear directly on the state of the information systems of the company. Otto's Office Products is a large national company selling office supplies to businesses and everyday consumers. It is compiling an in-house data warehouse in order to identify customers and build relationships with them. 120. The IT department has recommended that Otto's use data mining to build customer profiles and prepare business models to predict future purchasing behavior. Otto's CEO is not in favor of data mining, and argues that it shouldn't be used. Which of the following statements, if true, would support the CEO's argument for NOT using data mining? A) Data mining can build profiles of Otto's best customers and then use behavioral characteristics to identify new customers. B) Data mining is helpful to salespeople as it can identify customers that would benefit from an individual sales call, or provide them with buying reminders for particular products. C) Data mining can be used to track online behavior of the customers by the use of cookies, and identify customer interests and business needs. D) A privacy paradox exists whereby mining personal information is intrusive, but also leads to better targeting. E) Data mining can help spot trends and patterns in customer purchases, and enable the marketing department to shape advertising around these trends. Answer: D Explanation: D) Privacy concerns due to data mining, as indicated by Choice D, remain an ethical issue. Choice D points out a concern about data mining, in that it can reduce unnecessary advertising by more personally targeting the advertising, but also does involve an invasion of privacy that many individuals abhor and that many other individuals are not aware of. Choices A, B, C, and E are all benefits of data mining, and would support the argument made by the IT department. Data mining can be used to create profiles of current customers and help in the identification of new customers (Choice A.) Data mining information can be helpful to in-store sales personnel as well as out-of-store salespeople (Choice B.) Choice C notes the use of cookies to track online behavior to help identify customer interests and needs, while Choice E focuses on the use of data mining to spot trends and patterns in the business. Frisell: The most important online threat facing us today is identity theft. Consumers have to rely on online shopping today more than ever, and they are exposed to all kinds of dangers by people gaining access to credit cards, bank information, and Social Security numbers. Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield: Consumers have suffered from online theft, but the most far-reaching danger to people today from the Internet is viruses and malware. These have the capacity to take down entire networks, affecting both businesses and consumers. It's not clear that anti-virus measures will ever be able to keep up with all of the threats that are out there. 121. Which of the following is the point at issue between Frisell and Scofield? A) whether malicious online activities continue to pose a major threat to computer users B) whether most computer users are sufficiently conscious of the online threats that are present C) whether identity theft or viruses are the bigger online threat D) whether businesses are significantly affected by online fraud E) whether consumers are significantly affected by online fraud Answer: C Explanation: C) Frisell argues that identity theft is of preeminent seriousness, while Scofield maintains that viruses are the most dangerous. Choice A: Both Frisell and Scofield maintain that malicious online activities, of whatever sort, are a major threat to computer users. Choice B: Neither Frisell nor Scofield comment directly on whether computer users are sufficiently aware of threats. Choice D: Frisell does not argue that businesses are unaffected by online fraud. Choice E is incorrect because neither denies that consumers are significantly affected by online fraud. 122. Frisell's claim assumes which of the following? A) Most consumers prefer to shop online rather than at a traditional physical store. B) Identity thieves will continue to be motivated to steal people's identities. C) Most identity theft occurs because consumers do not take sufficient safety measures. D) Identity theft mainly occurs as a result of spyware. E) It takes hundreds of hours for consumers to repair the effects of identity theft. Answer: B Explanation: B) Frisell assumes that identity theft will be a continuing problem because it is stated that identity thieves will keep finding new ways to steal identities. Choice A: Frisell does not state that most consumers prefer to shop online, only that those who do are in danger of identity theft. Choice C: Frisell says that identity thieves try to stay ahead of the curve of security measures. Choices D and E: Frisell does not state anything about what the means of identity theft tend to be, nor what it takes to repair the damage of identity theft. 123. Scofield's claim assumes which of the following? A) Viruses can be spread through various parts of a network. B) Current anti-virus measures are adequate to deal with current threats. C) Consumers are sufficiently aware of the importance of keeping their systems virus-free. D) Businesses are sufficiently aware of the importance of keeping their systems virus-free. E) Identity thieves do not use malware to steal consumers' identities. Answer: A Explanation: A) If a virus can take down an entire network, it must have the ability to spread through the network. Choice B: Scofield thinks that the threat posed by viruses is growing but does not assume that anti-virus measures are adequate to deal with the threat even currently. Choices C and D: Scofield does not assume anything about the awareness of consumers or businesses of virus threats. Choice E is incorrect because although Scofield focuses on viruses' and malware's ability to bring down networks, Scofield does not assume anything about other uses of malware. 124. Which of the following statements would Frisell most likely agree with? A) Encryption software is the only way to protect consumers' identities. B) Viruses do not pose a major problem to online security. C) People have more choices in online shopping now than they used to. D) Consumers should regularly check their credit reports and transactions. E) Identity theft has always been a problem for consumers. Answer: D Explanation: D) This describes a way to detect identity theft as soon as possible after it happens, so it would be something recommended by Frisell. Choices A and B: Frisell does not say anything about the relative merits of different ways to protect consumers' identities, nor does he say that viruses are not a problem. Choices C and E bring in past circumstances, whereas Frisell focuses only on the threats that consumers currently face. 125. Which of the following statements would Scofield most likely agree with? A) Anti-virus software ought to be continually improved. B) There are not enough networks to support current Web traffic. C) Most computer users use anti-virus software of some form or another. D) Consumers should not be particularly worried about identity theft. E) Malware mostly comes in the form of Trojan horses. Answer: A Explanation: A) Scofield suggests that the threat posed by viruses is growing, which would require anti-virus software to be continually improved. Choice B is not a problem that Scofield addresses. Choice C: Scofield focuses on the threat posed by viruses and not what countermeasures computer users actually use. Choice D: Scofield does not discount the threat of identity theft, but only maintains that viruses pose a more far-reaching threat. Choice E is incorrect because Scofield does not discuss the various forms that viruses and malware can take. Test Bank for Business Essentials US Edition Ronald J. Ebert, Ricky W. Griffin 9780133034028, 9780273766599, 9780136070764