Flashcards and Answers – True or False
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Purchase of information systems and telecommunications equipment constituted more than half off all capital investment in the United States in 2013.
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True
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A business model describes how a company produces, delivers, and sells a product or service to create wealth.
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True
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Information systems consists of all the hardware and software that a firm needs to use in order to achieve its business objectives.
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False
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An extranet is a private intranet extended to authorized users outside the organization.
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True
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Information systems literacy describes the behavioral approach to information systems, while computer literacy describes the technical approach.
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False
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The dimensions of information systems are people, organizations, and information technology.
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True
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In order to understand how a specific business firm uses information systems, you need to know something about the history and culture of the company.
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True
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Developing a new product, fulfilling an order, or hiring a new employee are all examples of business processes.
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True
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Business processes are those logically related task for accomplishing tasks that have been formally encoded by an organization.
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False
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Employee attitudes about their jobs, employers, or technology can have a powerful effect on their abilities to use information systems productively.
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True
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A network requires at least three computers and a shared resource.
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False
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An IT infrastructure provides the platform on which the firm can build its information systems.
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True
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UPS's use of Web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own Web sites was an information systems solution used to achieve customer intimacy.
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True
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Identifying a problem includes agreeing that a problem exists.
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True
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Political conflict is an example of the people dimension of business problems.
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False
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As a result of new public laws, accountants are beginning to perform more technical duties, such as auditing systems and networks.
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True
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IT managerial jobs are outsourced easily because of the universal standards used by the Internet.
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False
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An understanding of enterprise-wide systems for customer relationship management is one of the skills relevant to careers in marketing.
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True
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Whereas marketing and financial careers have been transformed by the growth in information systems, management has-so far-remained relatively unaffected.
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False
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There are two types of outsourcing: offshore outsourcing and foreign outsourcing.
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False
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Senior management is responsible for directing the day-to-day activities of the business.
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False
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Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant.
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False
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Transaction processing systems are most commonly encountered at the senior management level of an organization.
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False
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TPS help managers monitor the firm's relations with the external environment.
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True
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A hotel reservation system is a typical example of a management information system.
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False
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The decision to grant credit to a customer is normally made by a senior manager.
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False
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Transaction processing systems are the basic business systems that serve the operational level of the organization.
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True
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Management information systems primarily support nonroutine decision making.
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Fasle
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Most MISs use sophisticated mathematical models or statistical techniques.
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False
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Deciding whether to introduce a new product line is the responsibility of an operational manager.
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False
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Decision-support systems often use information from external sources.
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True
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ESSs are designed to serve the middle management of the organization.
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False
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ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS.
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True
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ESSs are desgined primarily to solve specific problems.
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False
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Information supplied by an enterprise system is structured around cross-functional business process.
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True
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Supply chain management systems are more externally oriented than enterprise systems.
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True
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A business is a formal or informal organization created to sell services or products.
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False
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Enterprise systems do not utilize order transaction data
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False
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Teams are formal business groups that are created to accomplish a specific task.
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True
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A business process is a single step taken in a set of logically related activities that accomplish a specific business task.
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False
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A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
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True
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A primary challenge in BPM is employee resistance.
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True
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Customers are one of the competitive forces that affect an organization's ability to compete.
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True
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A transparent marketplace means that there is high product differentiation.
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False
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Studies show that about half of a business firm's profits can be explained by alignment of IT with business.
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True
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The greatest barrier to changing business processes is, ironically, management itself.
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False
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In the strategy of product differentiation, information systems are used to enable new products and services.
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True
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BPM is considered concluded when the new processes are both implemented and accepted.
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False
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Strong linkages to customers and suppliers increase switching costs.
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True
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The effect of the Internet has been to raise bargaining power over suppliers.
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True
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In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense.
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True
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In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer.
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True
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The value chain model classifies all company activities as either primary or support.
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True
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The idea of driving synergies is that when the output of some units can be used as inputs to other units, the relationship can lower cost and generate profits.
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True
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The law of diminishing returns always applies to digital, as well as traditional products.
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False
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The more people that use Microsoft Office software and related products, the lower its value.
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False
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The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly.
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False
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Probably the best single way to reduce quality problems is to reduce cycle time.
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True
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Business process re-engineering is the radical redesign of business processes.
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True
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Benchmarks are specific standards for business processes set by industry leaders.
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False
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IT infrastructure technology is the set of physical devices required to operate the entire enterprise.
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False
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Today, most system and application software is custom built by in-house programmers.
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False
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Systems integration means ensuring the legacy systems work with new elements of the infrastructure.
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True
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A mainframe is a type of legacy workstation.
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False
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Client/server computing is the most widely used form of centralized processing.
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False
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Application server software is responsible for locating and managing stored Web pages.
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False
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Using an online storage service such as Drop Box is a type of virtualization.
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False
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In cloud computing, rapid elasticity refers to the ability of computing resources to be quickly altered to meet demand.
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True
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A private cloud is operated by a single organization but may be manage by a third party and be located off premises.
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True
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A computer language translation program is an example of system software.
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True
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Hypertext markup language specifies how text, graphics, video, and sound are place on a document.
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True
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HTML5 is the latest evolution of HTML, and is designed to make it much easier to embed third-party add-ons, such as Flash animations, in web pages.
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False
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Web services can exchange information between two different systems regardless of the operating system or programming languages on which the systems are based.
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True
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XML is limited to describing how data should be presented in the form of Web pages; HTML can perform presentation, communication, and storage of data.
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False
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The collection of Web services that are used to build a firm's software systems constitutes what is known as a service-oriented architecture.
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True
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SaaS providers deliver and provide Web-based, remote access to storage.
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False
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Allowing departments to make their own software and hardware purchases increases efficiency and minimizes the need for centralized support.
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False
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Total cost of ownership components include costs for downtime, training, and support.
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True
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One of the main benefits of moving to mobile business computing platforms is the dramatically lower costs of hardware.
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False
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Software localization refers to the entire process of converting software to operate in a second language.
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True
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Telephone networks are fundamentally different from computer networks.
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True
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Increasingly, voice, video, and data communications are all based on Internet technology.
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True
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To create a computer network, you must have at least two computers.
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True
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An NOS mus reside on a dedicated server computer in order to manage a network.
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False
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A hub is a networking device that connects network components and is used to filter and forward data to specified destinations on the network.
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False
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In a client/server network, a network server provides every connected client with an address so it can be found by others on the network.
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True
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Central large mainframe computing has largely replaced client/server computing.
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False
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Circuit switching makes much more efficient use of the communications capacity of a network than does packet switching.
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False
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Mobile search makes up approximately 10% of all Internet searches.
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False
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Two computers using TCP/IP can communicate even if they are based on different hardware and software platforms.
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True
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In blogging, a trackback is a list of entries in other blogs that refer to a post in the first blog.
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True
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Coaxial cable is similar to that used for cable television and consists of thickly insulated copper wire.
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True
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Fiber-optic cable is more expensive and harder to install than wire media.
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True
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The number of cycles per second that can be sent through any telecommunications medium is measured in kilobytes.
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False
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The Domain Name System (DNS) converts domain names to IP addresses.
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True
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VoIP technology delivers voice information to digital form using packet switching.
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True
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Web 3.0 is a collaborative effort to add a layer of meaning to the existing Web in order to reduce the amount of human involvement in searching for and processing Web information.
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True
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In a large company today, you will often find an infrastructure that includes hundreds of small LANs linked to each other as well as corporate-wide networks.
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True
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TCP/IP was developed in the 1960s to enable university scientists to transmit data from computer to computer.
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False
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RFID technology is being gradually replaced by less costly technologies such as WSNs.
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False
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Enterprise systems include analytical tools.
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True
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Supply chain management systems are a type of enterprise system.
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False
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An enterprise system helps reduce redundant business processes.
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False
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The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
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False
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Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
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True
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Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.
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False
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The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.
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True
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Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
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False
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In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.
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True
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Inefficiencies in a supply chain are primarily caused by inaccurate information.
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True
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It can cost six times more to sell a product to a new customer than to an existing customer.
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True
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In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.
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False
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Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model.
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True
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Total supply chain costs in some industries approach 75 percent of the total operating budget.
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True
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All CRM packages contain modules for PRM and ERM.
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False
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Major CRM application software vendors include Oracle and SAP.
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True
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Cross-selling markets complementary products to customers.
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True
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CRM software can help organizations identify high-value customers for preferential treatments.
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True
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Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.
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True
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Enterprise systems require fundamental changes in the way the business operates.
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True
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A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.
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True
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To model its existing supply chain and develop optimal manufacturing plans, a firm would implement a supply chain execution system.
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False
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With new flows of information made possible by Web-based tools, supply chain management can more easily follow a push-based model.
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False
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The downstream portion of the supply chain includes retailers and customers.
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True
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A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.
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False
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A router is a device that forwards packets of data through different networks, ensuring that the data gets to the right address.
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True
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An analog signal is a discrete, binary waveform that transmits data coded into two discrete states such as 1-bits and 0-bits.
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False
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Today, most Americans connect to the Internet through broadband connections at speeds up to 15 Mbps.
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True
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fAn ISP is a commercial organization that owns a region of transcontinental high-speed backbone networks carrying the bulk of Internet traffic.
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False
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The trunk lines of the Internet are typically owned by network service providers.
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True
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A Web server is a dedicated computer that delivers Web pages to client computers.
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False
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A software package for mainframe requires a programmer to install it.
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True
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Web browsers are the primary interface for accessing the Internet.
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True
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XML provides a standard format for data exchange, enabling Web services to pass data from one process to another.
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True
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An SaaS provider maintains a large Web server, or series of servers, and provides fee-paying subscribers with space to maintain their Web sites.
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False
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Mass customization allows a company to offer individually tailored products using the same production resources as mass production.
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True
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A value web is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
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True
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The activities that measure the performance of your business processes against strict standards are called best practices.
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False
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A micromultinational is a small firm operating on a global scale.
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True
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Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources.
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True
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Quality control is seen as an end in itself in Six Sigma.
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False
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In some instances, BPM will lead to a paradigm shift that transforms the nature of the business itself.
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False
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The primary goal of social business is to deepen interactions with employees and customers.
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True
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A cross-functional business process requires information to be shared between different business departments.
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True
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Knowledge management systems and customer relationship management systems are both types of enterprise applications. (true/false)
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True
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Systems analysts are highly trained technical specialists who write the software instructions for computers.
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False
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End users are representatives of departments outside of the information systems group for whom applications are developed.
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True
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Data is information that has been shaped into a form that is meaningful to human beings.
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False
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Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage.
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True
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Intranets are private corporate networks extended to authorized users outside the organization.
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False
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Large corporations have been slow to adopt mobile computing as a platform.
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False
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Encouraging employees to adapt to new business processes is an important factor in change management.
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True
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Encouraging employees to adapt to new business processes is an important factor in change management.
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True