Test Bank: Management Information System 
TRUE or FALSE
Management Information Systems, 13e (Laudon/Laudon)
Chapter 1 Information Systems in Global Business Today
1) Internet advertising is growing at approximately 10 percent a year. Page Ref: 6 2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Page Ref: 11
3) A fully digital firm produces only digital goods or services. Page Ref: 11
4) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Page Ref: 13
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. Page Ref: 15
6) Computers are only part of an information system. Page Ref: 17
7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. Page Ref: 18
8) The dimensions of information systems are management, organizations, and information technology. Page Ref: 18
9) Knowledge workers assist with paperwork at all levels of the firm. Page Ref: 19
10) There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology. Page Ref: 19
11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. Page Ref: 19-20
12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Page Ref: 19
13) A substantial part of management responsibility is creative work driven by new knowledge and information. Page Ref: 20
14) Intranets allow firms to
Management Information Systems, 13e (Laudon/Laudon)
Chapter 1 Information Systems in Global Business Today
1) Internet advertising is growing at approximately 10 percent a year. Page Ref: 6 2) Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes. Page Ref: 11
3) A fully digital firm produces only digital goods or services. Page Ref: 11
4) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Page Ref: 13
5) Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of all the software and business processes needed. Page Ref: 15
6) Computers are only part of an information system. Page Ref: 17
7) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. Page Ref: 18
8) The dimensions of information systems are management, organizations, and information technology. Page Ref: 18
9) Knowledge workers assist with paperwork at all levels of the firm. Page Ref: 19
10) There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology. Page Ref: 19
11) In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. Page Ref: 19-20
12) Business processes are logically related tasks for accomplishing tasks that have been formally encoded by an organization. Page Ref: 19
13) A substantial part of management responsibility is creative work driven by new knowledge and information. Page Ref: 20
14) Intranets allow firms to