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CHAPTER 17   Managment Information Systems  613




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                  True/False Questions                                       b. direct resources needed for creating,
                  Please indicate if the following statements are true or      storing, and distributing data in a
                  false:                                                       business organization.
                                                                             c. indirect resources needed for creating,
                         1.  Data are information that has been trans-
                                                                               storing, and distributing information in a
                           formed to be meaningful and valuable to
                                                                               business organization.
                           specific users.
                                                                             d.  indirect resources needed for creating,
                         2.  An information system is a system that
                                                                               storing, and distributing data in a
                           converts data into information.
                                                                               business organization.
                         3.  Mainframe computers are extremely pow-          e. computers only.
                           erful computers specifically designed for
                                                                           2. A petabyte is equal to
                           applications requiring complex calculations
                                                                             a. 1000 bytes.
                           at a very high speed.
                                                                             b. 1000 kilobytes.
                         4.  An operating system is the software pro-
                                                                             c. 1000 megabytes.
                           gram that manages and controls the activi-
                                                                             d. 1000 gigabytes.
                           ties of the computer.
                                                                             e. 1000 terabytes.
                         5.  A data warehouse is the systematic search
                                                                           3. Word processors such as Microsoft Word
                           for patterns and trends in business activi-
                                                                             and WordPerfect, electronic spreadsheets
                           ties that can be exploited by managers to
                                                                             such as Microsoft Excel and Lotus 1-2-3,
                           gain competitive advantage.
                                                                             and presentation graphics programs such
                         6.  A bus network is similar to a star network in   as Microsoft PowerPoint and Lotus Free-
                           that there is no host computer and any two        lance Graphics are examples of
                           computers in the network can communi-
                                                                             a. operating software.
                           cate with each other.
                                                                             b. general-purpose software.
                         7.  In sensitivity analysis, the what-if analysis   c. application-specific software.
                           is used repeatedly to establish a range           d. programming software.
                           where the variables of interest do not            e. database software.
                           change.
                                                                           4. Programming languages that use translator
                         8.  Production information systems perform          programs called compilers to convert pro-
                           legal and historical record keeping and pro-      gramming statements, which are more like
                           duce financial statements.                        natural language, into machine language
                         9.  In information systems development, test-       are called
                           ing involves making sure that the informa-        a. fourth-generation languages.
                           tion system will produce the desired results.     b. third-generation languages.
                        10.  Procedural controls monitor the accuracy        c. high-level languages.
                           and security of the input, processing, stor-      d. assembler languages.
                           age, and output activities.                       e. machine languages.
                                                                           5. A record is a collection of
                  Multiple-Choice Questions
                                                                             a. related files.
                  Choose the best answer.
                                                                             b. related fields.
                         1. Management information systems are the           c. files.
                           systems that manage the                           d. databases.
                           a.  direct resources needed for creating,         e. operational databases.
                              storing, and distributing information in a
                              business organization.


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