Nickels 12th Edition Exam Prep

Understanding Business, 12e (Nickels)

Bonus Chapter B Using Technology to Manage Information

1) Though the types of technology used by businesses have changed over the last several decades, the role of business technology has remained remarkably constant.

2) In the 1970s business technology was known as data processing.

3) Data and information are two different names for essentially the same thing.

4) Information is data that has been processed and organized so that it can be used for managerial decision making.

5) During the 1970s, the purpose of data processing was to support the existing business by improving the flow of financial information.

6) During the 1970s business technology employees often dealt directly with customers.

7) During the 1980s, the role of business technology changed from supporting business to doing business.

8) In the late 1980s and early 1990s, businesses began to emphasize finding ways to employ new technologies to improve existing methods of doing business.

9) During the 1980s business technology began to emphasize the use of technology to change how business was conducted by introducing new methods.

10) Today the role of the chief information officer is to help the business use technology to communicate better with others while offering better service and lower costs.

11) In today's technological environment, the typical chief information officer (CIO) spends the majority of his or her time overcoming glitches and making sure the organization's information system is up and running.

12) Information technology brings work to people instead of requiring people to go to work.

13) Business intelligence (BI) changes the traditional flow of information so that the database goes to the individual rather than the individual going to the database.

14) In the coming years, successful information management will be more concerned with achieving and maintaining stability and predictability, and less concerned with adapting to change.

15) Information technology has changed the staffing and customer relations of businesses.

16) Business intelligence is any variety of software applications that analyze an organization's raw data and take useful insights from it.

17) Over time, business technology has become much more sophisticated, but its basic application has remained to support the existing operations of businesses by providing key financial information.

18) The experiences of the past several decades show that, while improvements in technology frequently enhance the efficiency of basic business operations, such improvements never actually change the fundamental way that businesses operate.

19) As businesses began using business intelligence, managers spent less time finding information and more time using it to make decisions.

20) Samantha's assistant just handed her a report that summarizes and organizes many raw facts and figures into a few key measures that will help her judge whether her department is meeting its key objectives. The summary measures included in the report are information, while the raw facts and figures used to compute these measures are data.

21) Ronald is the CIO for a major corporation. His job requires him to have an extensive knowledge of the hardware and software his company uses, but he will seldom be concerned about the methods and procedures used by specific departments.

22) RFID devices collect biological data.

23) Public data includes electronic traces that people leave when posting to the Internet and sending e-mail.

24) Your online shopping trail provides information that indicates your personal preferences.

25) A basic truth in management is that you can never have too much information.

26) In this age of technology, managers can easily become buried in information infoglut.

27) Useful information has three defining characteristics: (1) it is easily accessible, (2) it is efficiently organized, and (3) it is simple to manipulate.

28) The quality of management information depends on its accuracy and reliability.

29) Timeliness is one of the characteristics of useful management information.

30) Subjectivity is one of the four characteristics of useful information.

31) Relevance is one of the key characteristics of useful information.

32) Redundancy is one of the four characteristics of useful information.

33) The first step in avoiding information overload is to identify four or five key goals and focus only on information that is related to those goals.

34) Data mining looks for previously unknown relationships among vast amounts of data.

35) Major retail firms such as Walmart have used data mining to customize the product offerings for each store.

36) The success of data mining depends on access to data.

37) The key to improving management decision making is to provide the manager with as much information as possible.

38) In order for information to be useful to managers, it must satisfy only two criteria: it must be timely, and it must be easy to manipulate.

39) Doreen is overwhelmed by information overload. Unfortunately, in this day of technology, there is little she can do to control this problem.

40) Perfect Price Warehouse is a major discount store chain on the east coast. The company wants to do a better job of finding sales patterns and trends that will help it customize the product offerings for different stores. Data mining is one technique that would help Perfect Price Warehouse achieve this goal.

41) An intranet is a companywide network that is based on Internet-type technology, but closed to public access.

42) Intranets use a different, less sophisticated, type of technology than the Internet.

43) The software or hardware barrier that a business uses to prevent unauthorized users from gaining access to their intranet is known as a tripware.

44) Firewalls can be constructed using software, hardware, or a combination of both.

45) The most productive way for firms to use intranets is to publish information that can be accessed by all employees within an organization.

46) Interactive intranet applications can save money and increase revenue by reducing paper handling and enabling faster decision making.

47) The extranet is the next stage in the evolution of the Internet, consisting of a revolutionary new fiber optic technology that will enable computer users throughout the world to send and receive data up to 256 times faster than they can using the technology of the early 2010s.

48) A common use of an extranet is to extend an intranet to outside customers.

49) Compared to intranets, one advantage of an extranet is that it protects a company's information from hackers.

50) One problem with most extranets is that they use public lines, which makes it possible for hackers to get into the network.

51) Extranets now allow small firms to share and process data much as large firms have been able to do using electronic data interchange.

52) Virtual private networks are quick and easy to set up, but they are less secure than extranets.

53) Virtual private networks create secure connections over regular Internet lines.

54) A virtual private network allows information managers to simulate a real intranet in order to identify possible security problems and technical glitches before the company sets up the actual private network.

55) Enterprise portals are simply web pages with links to company-specific products and services.

56) Enterprise portals have the ability to identify users and give them access to specific areas of an organization's intranet depending on their relationship to the organization.

57) Widebeam is the term used to refer to technologies that give users continuous access to the Internet and greatly increase the speed at which data flows to and from their Internet connection.

58) Bandwidth is the term used to describe the rate at which data flows through the Internet.

59) Internet2 runs more than 22,000 times faster than today's public infrastructure.

60) Initially, the very-high-speed Internet2 network service was set up to connect government supercomputer centers with a select group of universities.

61) Users of Internet2 each pay the same fee for their connection and share bandwidth equally.

62) The main purpose of an intranet is to allow a company to keep in close contact with its customers.

63) The fact that electronic data interchange technology is so expensive that only large firms can afford to use it puts small firms at a severe disadvantage when it comes to sharing information.

64) The main reason for setting up an enterprise portal is to ensure that only employees of an organization have access to the information on its intranet.

65) A major reason for the creation of Internet2 was that private businesses wanted to establish a network that was free from government regulation.

66) Homegrown Design, a company that publishes home design software, wants to set up a temporary link with another firm to collaborate and share data on a short-term basis. Homegrown wants to keep the cost of setting up this connection reasonable, but is concerned about hackers and wants to make sure its link is secure. The best way for Homegrown to achieve its goal is to set up an extranet with dedicated lines.

67) Tee Time Golf Resorts currently has an intranet, and is considering making use of an extranet. One of the main reasons Tee Time may want an extranet is to allow a select group of outside customers to have access to information on its intranet.

68) Information managers at Epic Electronics want to provide a single, seamless interface that will make it easier for customers, suppliers, and employees to gain access to the parts of its intranet that they need. Epic could achieve this result by setting up an enterprise portal.

69) Western University just obtained a link to Internet2. Researchers at Western intend to make very heavy use of their new link for various forms of collaboration, for videoconferencing and for running complex simulations. Unlike the regular Internet, the more bandwidth Western's researchers use on Internet2, the more the university will have to pay.

70) Virtual networking is a process that allows software-based networked computers to run multiple operating systems and programs.

71) Internal networking shares the resources of all computers with each networked computer.

72) Cloud computing is a form of virtualization in which a company's data and applications are stored onsite and accessed via an external hard drive.

73) There are three types of cloud computing: private clouds, public clouds, and hybrid clouds.

74) The advantages of cloud computing are security, possible instability, and data control.

75) Some advantages of cloud computing include flexible capacity and easier access.

76) Because cloud computing is often too expensive for small businesses, it is rarely used.

77) Bennett just got started using a storage method called Dropbox. He stores most of his information with this service. Bennett is using cloud computing.

78) The use of computers increases the number of layers of management, resulting in taller organizations.

79) One of the most revolutionary effects of computer networks is that they give employees the ability to do much of their work at home.

80) Telecommuting is popular with workers, but it is costly for businesses.

81) One problem with telecommuting is that it can cause workers to feel like they are isolated and left out of the office loop.

82) The increasing use of computer networks has made computer security more complicated.

83) The use of antivirus software completely eliminates the risk of downloading infected files.

84) A computer virus is a piece of programming code that is inserted into other programming code with the intention of causing some unexpected, and usually undesirable, event for the user of the software.

85) Phishing is an online security threat in which scammers hold data hostage until you pay the hacker to get it back.

86) When ransomware software infects a computer, scammers hold data hostage until you pay the hacker to get it back.

87) In the area of electronic communications, the main focus of corporate and government security officials today is the prevention of credit card fraud.

88) Today the primary concern of corporate and government security officials concerning electronic communication is in the area of cyberterrorism.

89) As the result of the terrorist attacks on September 11, 2001, managers of most major corporations have become much more willing to give the government extensive access to information about problems with electronic communication such as viruses and attacks by hackers.

90) The Critical Infrastructure Protection Board was established after the terrorist attacks of September 11, 2001, as part of the Office of Homeland Security.

91) It is illegal for companies to scan e-mails written by their employees at work unless the employees have given permission in advance or the firm has received approval from a federal judge.

92) Most e-mail messages are automatically encrypted to protect them from being intercepted and read by hackers.

93) Websites often send cookies to a user's computer that are saved on the computer's hard drive.

94) There are sites online that provide users with easy access to personal information about other people.

95) When spyware is inadvertently downloaded to a user's computer the software tracks the user's online behavior. Spyware is installed without the user's knowledge and can infect the computer with a virus.

96) Computer technology has become so stable and mature in recent years that, except for problems caused by viruses and hackers, major glitches are essentially a thing of the past.

97) The cause of almost all instability in computer systems can be traced to poorly designed hardware.

98) One advantage of networked computers is that they offer much greater computer security than the older mainframe systems.

99) The Internet has greatly slowed the spread of computer viruses by making it possible to share programs and files by downloading them from online sources rather than sharing diskettes.

100) Studies have shown that all types of workers are likely to become more productive when they are allowed to telecommute.

101) Ransomware only infects individuals' personal computers. Big organizations have too many firewalls in place to allow the virus in.

102) Corrine has all the technological tools—a laptop, a tablet, and a smartphone that never leaves her side. The computer in home office has a broadband connection to her company's intranet. If Corrine is like most Americans who have access to all of this modern technology, she will enjoy a much shorter workweek than workers in less technologically advanced nations.

103) Marcus works for the Critical Infrastructure Protection Board. One of the major challenges he is likely to face is to get CIOs at major corporations to provide the type of information he needs to help his board achieve its mission.

104) Zoe has discovered that several of the sites she recently visited have downloaded small files to her computer's hard drive even though she did not request them. The files she discovered are known as crackers.

105) Dennis just learned that his company has been reading the e-mails he has sent while at work without getting his permission. Dennis can sue the company for invasion of privacy under the Electronic Communications Privacy Act of 1997.

106) In the 1970s, business technology was known as

A) data processing.

B) information processing.

C) information technology.

D) systems analysis.

107) ________ is raw, unanalyzed, and unorganized facts and figures.

A) Statistics

B) Ratios

C) Data

D) Criteria

108) The primary role of business technology during the 1970s was to

A) empower workers by giving them access to ever-greater amounts of information.

B) implement new production methods that relied on automated equipment.

C) protect proprietary company information from outsiders.

D) support existing business by improving the flow of financial information.

109) During the 1980s business technology became known as

A) data processing.

B) knowledge management.

C) information systems.

D) personal computing.

110) Beginning with the late 1980s the goal of information technology was to

A) improve the flow of financial information throughout business organizations.

B) use new technologies to offer new methods of conducting business.

C) prevent proprietary information from falling into the hands of competitors.

D) use new technologies to improve old methods.

111) ________ is information charged with enough intelligence to make it relevant and useful.

A) Knowledge

B) Data

C) An hypothesis

D) A theory

112) ________ refers to a variety of software applications that analyze an organization's raw data and obtain useful insights from it.

A) Information processing

B) Data processing

C) Artificial intelligence

D) Business intelligence

113) The key distinction between data and information is that data

A) are facts and figures that have been stored in databases so that they can be accessed and manipulated by a computer while information has not been.

B) is less reliable than information because its accuracy has not been verified.

C) is mathematical in nature while information is verbal in nature.

D) are raw, unanalyzed facts and figures while information is data that has been processed and summarized so that is can be used by decision makers.

114) From the 1970s to the present time, the primary role of business technology has

A) always been to provide businesses with necessary financial information.

B) always been to provide better customer service.

C) changed from providing better customer service to improving employee productivity.

D) changed from supporting business to providing new ways of doing business.

115) NASDAQ is an example of how information technology can

A) help engineers design products that exactly meet the needs of a specific target market.

B) be used to create organizations and provide services that are independent of location.

C) provide small firms with new opportunities to grow by forming alliances with larger companies.

D) help the government measure the environmental impact of business activities.

116) A major impact of information technology has been to

A) encourage the growth of giant corporations.

B) create organizations that are independent of location.

C) reduce the demand for skilled labor.

D) increase overall costs of production.

117) An important advantage knowledge technology has over older versions of business technology is that it

A) delivers timely information directly to the people who need it.

B) is much cheaper to incorporate into most business operations.

C) allows businesses to locate anywhere and still reach their customers.

D) eliminates the need for businesses to store information electronically.

118) The use of knowledge technology should result in a(n)

A) greater reliance on mainframe computers.

B) increase in the number of firms using spreadsheet software.

C) reduction in the amount of time managers spend searching for relevant information.

D) taller organization as firms hire more information specialists to handle the increased flow of information.

119) Edwin, a sales manager, just finished reading some sales statistics comparing his company's performance to that of competitors. The statistics summarize a mass of raw figures into a few meaningful measures that Edwin will use to determine whether he needs to change his sales strategy. The statistics in the printout are

A) information, while the raw figures used to compute the statistics are data.

B) data, while the raw figures used to compute the statistics are information.

C) less useful to Edwin than the raw figures would have been, since summarizing the figures necessarily reduces their accuracy.

D) an example of how managers have a tendency to oversimplify by reducing complex issues into a few simple numbers.

120) Bigbux Bank has always tried to make use of the newest technologies to expand the services it offers to its customers. For example, depositors can obtain updated financial information about their accounts and handle certain types of transactions whenever they wish simply by using the bank's mobile app with fingerprint login. The type of technology Bigbux Bank uses to provide these services is known as

A) data processing.

B) systems processing.

C) information technology.

D) knowledge processing.

121) Which of the following observations would be the strongest evidence that Marshall Manufacturing has adopted knowledge technology?

A) Marshall's customers can place orders for its products directly from the company's Internet website.

B) Marshall has installed software that searches a variety of databases online for information relevant to each employee's current assignment, and sends the information to the appropriate employee's e-mail address.

C) Marshall has provided all of its employees with a personal computer.

D) Marshall has initiated a program that allows each employee to sign up for advanced training in the use of spreadsheets, word processors, graphics programs, and other types of software.

122) Melissa, a new employee at Epic Electronics, is required to perform a variety of bookkeeping and clerical tasks at a workstation. Epic has training software on its workstations that can answer many of the questions she has about what to do on her new job, and how to do it. The software is so good that she rarely asks her supervisor for help. It even tracks the way Melissa performs certain tasks, and offers suggestions to improve her productivity. This software is an example of

A) the use of a technique called computer aided production (CAP) that is becoming increasingly important in high-tech industries.

B) the trend toward telecommuting.

C) the way businesses are using knowledge technology to move relevant information to the people who need it.

D) why mainframe computer systems are more efficient than network computer systems.

123) Mark, a sales rep with a large technology company, is celebrating today because he just closed a large deal, which means a sizeable commission. Even the finance department is thrilled because Mark used ________ to review the credit history of this customer to be sure the deal would be a profitable one for the company.

A) knowledge transfer

B) business intelligence

C) data processing

D) business process information

124) Transaction data gathered at the point of sale is known as

A) physical-world observations.

B) business process information.

C) public data.

D) personal preference data.

125) Data from RFID devices, miniature cameras, and wireless access used to understand where people or items are located is called

A) physical-world observations.

B) biological data.

C) public data.

D) business process information.

126) Information mainly used for security purposes such as fingerprinting and retinal scans is known as

A) physical-world observations.

B) biological data.

C) private data.

D) public data.

127) The amount of information managers receive each day

A) is never enough; when it comes to managerial decision making, there is no such thing as too much information.

B) has been managed much more efficiently in recent years, largely due to the development of spreadsheets.

C) has remained remarkably stable over the years.

D) has become so great that it now threatens to bury many decision makers in infoglut.

128) Two of the characteristics of useful information are

A) relevance and timeliness.

B) redundancy and simplicity.

C) clarity and confidentiality.

D) flexibility and durability.

129) High-quality information is

A) accurate and reliable.

B) normative and open ended.

C) simple and easy to use.

D) subjective and unique.

130) ________ looks for hidden patterns and unknown relationships among the data a firm has accumulated.

A) Tracking software

B) Econometric analysis

C) Data mining

D) Data parsing

131) ________ is the process of collecting, organizing, storing, and analyzing large sets of data to identify patterns to help make decisions.

A) Data analytics

B) Econometric analysis

C) E-mail organization

D) Data parsing

132) A major problem with the rapid expansion in the amount of information available to managers is that

A) managers can become overwhelmed with too much information.

B) information costs are skyrocketing.

C) the capacities of computer hard drives and other storage media are no longer sufficient to store the huge volume of information being generated.

D) the need to gather this information has resulted in greater levels of bureaucracy.

133) The first step a manager should take to cope with information overload is to

A) obtain a good database management system and use it to organize information more efficiently.

B) hire a qualified information systems analyst.

C) identify four or five key goals, and eliminate information that is not related to those goals.

D) purchase more sophisticated hardware that can process and store information more efficiently.

134) A firm would use data mining if it wanted to

A) store copies of crucial data in several different locations to protect against its loss during disasters such as earthquakes, floods, or terrorist attacks.

B) protect its data from unauthorized outsiders.

C) increase the rate at which information flows through a firm's intranet.

D) discover hidden relationships among the data it accumulates.

135) Data mining would be most helpful to a manager that wants to

A) find the most efficient way to reduce the amount of data collected.

B) restrict access to the company's data to a few key analysts.

C) store data in a more secure location.

D) discover unexpected relationships among the data stored by his or her organization.

136) If a business wanted to gather up-to-the-minute data on its customers, one way to do that would be

A) database management.

B) data mining.

C) social media.

D) physical-world observations.

137) Brianna, a marketing manager for a chain of clothing stores, recently received an e-mail with some timely and reliable information about trends in men's clothing for next season. Unfortunately, her store sells only women's clothes. The information in the newsletter was not useful to Brianna because it lacked

A) redundancy.

B) accuracy.

C) relevance.

D) selectivity.

138) Aubrey is a manager who wants to be well informed. Like many managers, however, she is often overwhelmed by information overload. Which of the following would probably be the most useful first step for her to take in order to deal with this problem?

A) Hire an assistant to summarize all of the information for him.

B) Identify four or five key goals and eliminate information that is not relevant to those goals.

C) Purchase hardware and software that will process the information more efficiently.

D) Establish a "time budget" with a specified time period set aside each day for reading reports, studies and other sources of information.

139) Steve has convinced top management at his company that they can use data-mining techniques to develop new marketing strategies. One of the keys to the success of his suggestion is

A) obtaining a powerful mainframe computer that can perform sophisticated statistical analysis on huge amounts of data.

B) converting all data into a quantitative format so that it can be easily manipulated.

C) outsourcing all IT functions to an outside expert that can look at the data with "fresh eyes."

D) finding a way to access and integrate information from all of the different departments and divisions within the organization.

140) The HR department at Pages and Pages Booksellers wants to reduce the cost of benefits it offers its employees. A department specialist suggested that the company consider ________ its HR system. By sorting and analyzing the demographics and lifestyle characteristics of its employees, Pages and Pages hopes to determine which benefits are most important, and possibly which can be eliminated. Marketers utilize the same technology to keep pace with sales trends.

A) pre-programming

B) post-programming

C) data mining

D) data storing

141) A(n) ________ is a companywide network that is based on Internet-like technology, but is closed to public access.

A) enternet

B) alter-net

C) intranet

D) inner-net

142) A company can use a(n) ________ to prevent unauthorized outsiders from accessing information on its intranet.

A) firewall

B) disconnector

C) entry sentry

D) tripwire

143) A(n) ________ is a semiprivate network that uses Internet technology to enable more than one company to access the same information or to allow people on different servers to collaborate.

A) crossnet

B) extranet

C) outernet

D) alternet

144) Many businesses choose to open their intranets to other selected organizations through the use of

A) crossnets.

B) alternets.

C) outernets.

D) extranets.

145) One of the most common reasons firms make use of an extranet is to

A) prevent employees from using the Internet for private purposes on company time.

B) post information that can be accessed only by employees of the organization.

C) extend an organization's intranet to outside customers.

D) increase the speed at which employees can access information on the Internet.

146) The advantages of electronic data interchange are no longer limited to large companies, because even small firms can exchange and process data such as orders, invoices, and payments using

A) groupware.

B) an extranet.

C) spreadsheet software.

D) integrated software suites.

147) A(n) ________ serves as an entry point to a variety of resources on an organization's information network.

A) personal information manager

B) e-transfer page

C) enterprise portal

D) subscription web page

148) One of the problems with extranets is that they

A) are semiprivate, so it is possible for hackers to gain access to information on the system.

B) use an old technology that is not as fast at transferring data as the Internet.

C) cannot be accessed by people unless they are employees of the company.

D) have no ability to handle common e-mail protocols.

149) A(n) ________ is a private data network that creates secure connections over regular Internet lines.

A) extranet

B) secured common linkage network

C) virtual private network

D) monitored network system

150) ________ is a new system that is designed to overcome the speed limitations of the Internet and support heavy-duty applications such as videoconferencing and distance education.

A) Internet2

B) Supernet

C) Maxinet

D) Ultranet

151) ________ technology uses a continuous Internet connection that allows users to send and receive mammoth files that include voice, video, and data much faster than ever before.

A) Widebeam

B) Least resistance

C) Analog

D) Broadband

152) A key element of Internet2 is

A) the requirement that all users log on to each site with a unique password.

B) the very-high-speed backbone network service (vBNS).

C) a new security system that eliminates the risk that unauthorized users will be able to access private information.

D) the high-speed resource allocation prioritizer (hsRAP).

153) A firm that wanted to enable its employees to use and share data without allowing outsiders to gain access could do so by establishing a(n)

A) extranet.

B) innernet.

C) enternet.

D) intranet.

154) The key difference between an intranet and an extranet is that an intranet

A) uses technology based on current Internet standards, while an extranet uses technology based on Internet2.

B) uses public lines to transmit information, but an extranet uses private lines.

C) is closed to public access, while an extranet allows selected outsiders access to the network.

D) allows many different organizations to share data and resources, while an extranet is limited to only two organizations.

155) The organizations that benefit the most from an intranet are the ones that

A) publish information on the intranet that all employees can access.

B) operate the intranet over a mainframe system.

C) base the intranet interface on one of the popular web browsers.

D) develop interactive intranet applications.

156) A company that wanted to provide a single, unified entry point to its network that would allow different types of users access to different types of resources could do so by establishing a(n)

A) enterprise portal.

B) broadband interface.

C) intranet.

D) mainframe network.

157) Compared to the Internet, a major advantage of Internet2 is that it

A) can be accessed even by people without computers; all that is needed is a simple, inexpensive receiver, a television set, and a standard telephone line.

B) is owned and operated by the United Nations, and is accessible to people in every nation.

C) can move information much faster than the Internet and has the capacity to handle heavy-duty applications.

D) allows firms to set up their own protocols for transferring and processing information.

158) Most successful businesses utilize social media to communicate with customers. An important strategy for consideration is: Successfully implementing social media will

A) provide a well-defined purpose for the customer.

B) mostly serve as an outlet for sales promotion, for example, the distribution of coupons and deals.

C) provide one-way communication: from the business to the customer.

D) be socially conscious; it will inform customers of the social changes that surround them.

159) A firm would be most likely to establish an enterprise portal if it wanted to

A) prevent outsiders from using its information network.

B) allow users to access different areas of its network depending on their relationship to the firm.

C) prevent viruses from being downloaded from the company's website.

D) search for hidden patterns and unknown relationships among data stored in different information systems.

160) The main reason a firm would establish a firewall for its intranet is that it wants to

A) prevent outsiders from being able to access information on its network.

B) protect itself against loss of data in the event of a fire, flood, or other catastrophe.

C) create an interface to hook into Internet2 using firewire connections.

D) prevent employees from gaining access to the Internet for personal use.

161) The most likely reason a firm would decide to establish an extranet would be the desire to

A) speed the flow of information on its private network by increasing the bandwidth.

B) make the information on its network widely available to the general public.

C) share information and collaborate with a select group of outside organizations or individuals.

D) overcome the speed and capacity limitations of its external connection to the Internet by gaining access to the very-high-speed Backbone Network Service.

162) Which of the following is the best assessment of the impact extranets have had on the way small businesses operate?

A) As yet, extranet technology has had little impact on small businesses, because the technology is too new and expensive.

B) The development of extranets has put small firms at a serious competitive disadvantage, because suppliers and customers are more willing to participate in extranets set up by larger organizations.

C) The use of extranets enables small firms to share and process data in ways that had been available in the past only to large firms that could afford electronic data interchange technology.

D) The extranet has made it easier for small firms to offer their goods and services to the general public because of the increased bandwidth this technology provides.

163) A firm would consider establishing a virtual private network if it wanted to

A) prevent people who are not employees from being able to access its network.

B) set up a secure network connection with another firm for a short period of time.

C) obtain a broadband connection to the Internet.

D) simulate a network before it became operational in order to identify any security leaks.

164) Scientists and engineers at Epic Electronics rely on the Internet to keep in touch with their peers at various universities and research organizations. In recent years these researchers have become frustrated because the increasing congestion on the Internet has disrupted their attempts to communicate and collaborate with colleagues at other institutions. Which of the following developments would be most likely to help Epic Electronics researchers overcome this problem?

A) set up an intranet

B) allow its scientists and engineers to telecommute

C) assign each employee a second e-mail address

D) gain access to Internet2

165) A local university, connected to Internet2, employs several professors in its school of engineering that are part of a research project that makes extremely heavy use of the bandwidth this connection provides. In fact, the engineering professors would like to get even more bandwidth. Given the way its designers set up Internet2, the researchers at the university

A) are out of luck. One drawback of Internet2 is that, unlike the regular Internet, the technology of Internet2 can allocate only a fixed amount of bandwidth to each user.

B) may be able to obtain more bandwidth, but only if the university is willing to pay for it.

C) must petition the Internet2 Usage Committee and obtain approval.

D) can install a simple bandwidth amplification card in each computer that compresses data, thus allowing it to flow more rapidly.

166) Fran is shopping online for jeans and she clicks on a style she likes. The site quickly presents her with a close-up view and additional information that will help her make a decision. When she adds the jeans to her shopping bag, the website quickly shows her that other customers that purchased the same pair of jeans also purchased a particular shirt and boots. As the retailer's website learns more about Fran and her purchase preferences, it is able to push other ideas toward her, and potentially increase the online retailer's units per transaction. The technology that generates this type of intelligence and personalization is called

A) social media.

B) cookie mining.

C) Web 2.0.

D) Web 3.0.

167) ________ is a process that allows software-based networked computers to run multiple operating systems and programs, and share storage.

A) Public domain softwaring

B) Groupwaring

C) Virtual networking

D) Cloud computing

168) ________ is a form of virtualization in which a company's data and applications are stored offsite.

A) Data warehousing

B) Data mining

C) Cloud computing

D) Mobile softwaring

169) The three types of cloud computing are

A) public, private, and personal clouds.

B) application, analytic, and informative clouds.

C) power, private, and virtual clouds.

D) public, private, and hybrid clouds.

170) Gary has been using Dropbox. The cloud he is storing his information to is called a

A) private cloud.

B) public cloud.

C) hybrid cloud.

D) analytical cloud.

171) One of the most revolutionary impacts computer technology has had on business has been to

A) allow employees of organizations to do much of their work at home and on the road.

B) increase the number of layers of management.

C) replace human creativity with artificial creativity.

D) make it easier for businesses to keep proprietary information safe and secure.

172) Employees of a business ________ when they work at home, using computers linked to their organization's office.

A) mainstream

B) teleproduce

C) telecommute

D) compucommute

173) A(n) ________ is someone who breaks into a computer system for illegal purposes.

A) network crasher

B) drive jockey

C) arbitrageur

D) hacker

174) A computer ________ is a piece of programming code that is inserted into other programming to cause an unexpected and often-undesirable event for the victim.

A) virus

B) cold

C) wasp

D) firecracker

175) When it comes to computers and information technology, government and corporate security officials are now most worried about

A) credit card fraud.

B) online theft.

C) cyberterrorism.

D) counterfeiting.

176) The ________ was created as a part of the Office of Homeland Security and given the responsibility to devise a plan for improving the security of America's critical infrastructure.

A) Homeland Security Board

B) Critical Infrastructure Protection Board

C) Electronic Communications Security Commission

D) Committee on Infrastructure Security Procedures

177) A ________ is a small piece of software code a website downloads onto the hard drives of people who visit the site.

A) cookie

B) brownie

C) data marker

D) file portal

178) Instability in technology

A) used to be a major problem, but such problems now are largely a thing of the past.

B) still exists, but could be easily eliminated if firms would upgrade to newer equipment and software.

C) remains a serious problem that is caused by a variety of factors.

D) still exists, but its impact on business is greatly exaggerated by the media.

179) Which of the following is an advantage of telecommuting?

A) Workers are not included in the office loop.

B) People who work at home have less trouble letting go of work and relaxing when the workday is over.

C) Telecommuting increases travel time and costs.

D) Firms may be able to retain workers who would otherwise leave or retire by allowing them to work at home.

180) Which of the following statements about computer viruses is most accurate?

A) Viruses could be completely eliminated if people would quit sharing infected files.

B) Wild rumors and sloppy reporting have exaggerated the threat computer viruses pose to typical computer users. Almost all real-world computer viruses turn out to be harmless practical jokes.

C) The Internet contains built-in safeguards that prevent programs with viruses from being downloaded.

D) Although antivirus software can help identify and eliminate known viruses, the software must be updated frequently to remain effective.

181) When ransomware holds your data hostage, what is most likely to happen?

A) Hackers will demand you pay them to get your files back.

B) Hackers permanently delete specific files.

C) Hackers publicly share your personal information on social media.

D) Hackers wipe your computer clean and leave it useless.

182) The ability of the Critical Infrastructure Protection Board to achieve its mission depends crucially on

A) convincing corporations to adopt the more secure Internet2 technology.

B) finding ways to create artificially intelligent monitors of electronic communications.

C) convincing information managers in the private sector to report problems such as hacker attacks and viruses to the government.

D) developing a new wireless technology that provides better data encryption.

183) Jeff's bank recently contacted him to tell him someone illegally accessed the bank's computer system and gained access to information about customer account numbers and PIN numbers. The bank is recommending Jeff and other customers change their account numbers and access numbers for security reasons. The bank and Jeff are victims of a

A) net crasher.

B) software pirate.

C) slammer.

D) hacker.

184) Alex has never worried about computer viruses. However, a friend who works in IT recently told him about a new wave of viruses. Alex is wondering whether he should pay more attention to this threat, and if so, what he can do to protect his computer. Which of the following represents the best advice for him?

A) Trying to prevent viruses is likely to be more costly and troublesome than just dealing with the virus if your computer becomes infected. Moreover, the chance of actually getting a virus is very small, and even if you get one, most viruses do very little real damage. Thus the best course of action is to simply continue to ignore the problem.

B) Although viruses are potentially harmful, there is no effective way to prevent their spread. The best approach is to back up important files on a regular basis and reformat the hard drive any time a virus appears.

C) The Internet has automatic safeguards that prevent viruses from being transmitted when files are downloaded. Thus, the best way for Tucker to avoid harmful viruses is to use the Internet to send any files he wants to share rather than swapping easily infected diskettes.

D) There is no absolutely foolproof way to avoid viruses, but one reasonably effective safeguard is to install antivirus software and use it to scan files before downloading them, particularly from unknown sources. It is important to make sure that the software is updated on a regular basis to remain effective.

185) Gretchen works for Securitas Financial Group, but she seldom sees the inside of the offices. Instead, she does most of her work in a home office she put together in a spare bedroom. Her computer is linked to Securitas's office, so her work is distributed as quickly and efficiently as if she were at the office. Gretchen is one of the increasing number of workers who

A) have become independent contractors.

B) telecommute.

C) compucommute.

D) use linked-access shareware.

186) What are the four characteristics of useful information?

187) What is the key difference between an intranet and an extranet? Why might a firm use a virtual private network instead of an extranet?

188) Identify and describe the major security issues confronting information managers.

Mini-Case

Cy Burspace first began working for Epic Electronics in the mid-1970s as a business technology specialist. Today, he is the department head for the company's information systems department. Cy is well known and respected by everyone in the company, and his coworkers recently threw a party to honor his 30th year with Epic. Cy did a lot of reminiscing at the party, telling the newer employees how things were done in the "old days," and comparing them to newer methods.

"I'm still amazed at how things have changed. When I first came to Epic, we had a central computer to handle everything. It took up a whole room, but all it really did was generate financial reports for management," said Cy. "Today, employees have their own personal computer, and all are hooked up to a network. All of this connectivity has led to big improvements in our operations. For example, if a production worker wants to find out how many units of a particular component we have in inventory, or wants the name and address of a particular supplier who sells us that component, he or she can get the information in the blink of an eye. In fact, we have even given our suppliers and customers access to our network so that we can share information and provide them with better service. That change has really helped us compete against the bigger firms."

"Now," Cy continued, "most of the workers in my department don't even have to be at the office to be connected. We have smartphones and laptops so we can do much of our work from home or while we are on the road."

A new employee asked Cy if he was ready to retire. "No way," he said. "I'm in the middle of a major project right now. We're trying to design a single entry point for people to use when logging on to the Epic network. We want to set it up so that the log-on procedure identifies different types of users and automatically gives them access to the types of resources they need. For example, customers who logged on would be allowed to place orders, check on the status of previous orders, and interact with our technical support staff, but would not have access to other, more proprietary parts of our network. We think this approach will be more convenient for everyone. And," he continued, "once I finish that project, the marketing department has asked me to work on developing better ways to store and analyze the vast amounts of data we collect. So my work is cut out for me for quite a while yet."

189) When Cy first came to work for Epic Electronics, the application of business technology was called

A) data processing.

B) knowledge technology.

C) information systems.

D) backroom computing.

190) Cy is excited about the ability of customers to obtain access to information on Epic's network so that the company can provide them with better service. This suggests that Epic's is making use of a(n)

A) shareware arrangement.

B) integrated network.

C) mainframe system.

D) extranet.

191) Cy's new project to provide a single entry point to his company's network that identifies users and allows them access to the areas of the network they need indicates that he is working on a(n)

A) virtual network.

B) web router.

C) enterprise portal.

D) node-to-node network system.

192) People in marketing want Cy's help because they are convinced that many hidden patterns and unexpected relationships could be found in the mountains of data the company accumulates. They think that discovering these relationships might help them develop new marketing strategies. This suggests that Cy's next project will be concerned with

A) datametric analysis.

B) data mining.

C) data refining.

D) data orienteering.