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Chapter 1

Self-Test Questions

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True/False


This activity contains 20 questions.

	Powerful worldwide changes that have altered the business environment include the emergence and strengthening of the global economy, transformation of industrial economies and societies into knowledge- and information-based economies, transformation of the business enterprise, and the emergence of the digital firm.    True  False

	Today, information systems provide the communication and analytical power that firms need for conducting trade and managing businesses on a global scale.    True  False

	Knowledge workers are people such as secretaries or bookkeepers who process the organization's paperwork.    True  False

	Computer-based information systems rely on computer hardware and software technology to process and disseminate information.    True  False

	According to the textbook, business functions are the unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service.    True  False

	To be information systems literate, as opposed to computer literate, a manager must understand the broader organization, management, and information technology dimensions of systems.    True  False

	Organizational and individual needs should be adapted to fit the use of new technology.    True  False

	Although the primary focus of the behavioural approach is on psychology, economics, and sociology, this approach also stresses the importance of technology.    True  False

	The fact that information technology is rapidly declining in cost and growing in power translates into productivity enhancements and bottom-line profits.    True  False

	Responsibility for information systems should be delegated to technical decision makers.    True  False

	In contemporary systems there is a growing interdependence between organizational business strategy, rules, and procedures and the organization's information systems.    True  False

	Both electronic commerce and electronic business can fundamentally change the way business is conducted.    True  False

	Flattening organizations, separating work from location, and reorganizing work flows are three new options for organizational design.    True  False

	In digital firms, hierarchy and organizational levels disappear.    True  False

	Redesigning work flows can have a profound impact on organizational efficiency and can even lead to new organizational structures, products, and services.    True  False

	Private intranets made publicly available on the Internet are called extranets.    True  False

	The contemporary IT infrastructure is typically operated by technical personnel who must decide how to allocate the resources it has assigned to hardware, software, data storage, and telecommunications networks to make sound information technology investments.    True  False

	The disadvantage of digital firms, in contrast to traditional firms, is that they do not have the flexibility required to survive in turbulent times.    True  False

	A knowledge management system is an integrated enterprise-wide information system that coordinates a firm’s key internal processes.    True  False

	All you need to know to design solutions for organizational problems is how computers and computer programs work.    True  False

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