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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." -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.

E) A) and B)
F) B) and C)

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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.

A) True
B) False

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

A) True
B) False

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

A) True
B) False

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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.

E) B) and D)
F) C) and D)

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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.

E) All of the above
F) None of the above

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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.

A) True
B) False

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

A) True
B) False

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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.

E) B) and C)
F) A) and B)

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RFID devices collect biological data.

A) True
B) False

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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.

E) B) and C)
F) A) and C)

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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.

A) True
B) False

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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.

A) True
B) False

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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.

E) All of the above
F) B) and C)

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

A) True
B) False

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

A) True
B) False

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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.

E) A) and C)
F) A) and D)

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________ 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

E) A) and D)
F) C) and D)

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

A) True
B) False

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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.

A) True
B) False

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