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An overview of the key concepts related to business processes and information systems. It covers topics such as the components of a business process, the characteristics of good information, the different types of decisions (operational, managerial, and strategic), and the role of information systems in supporting these decisions. The document also discusses the differences between structured and unstructured decision-making processes, as well as the relationship between data, information, and knowledge. Overall, this document offers a comprehensive understanding of how business processes and information systems work together to support organizational decision-making and achieve business goals.
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Business processes are synonymous with business systems. (T/F) - ANS T The inventory management process includes placing orders and receiving goods into inventory. (T/F) - ANS T In the payment process, the invoice is compared to the purchase order. (T/F) - ANS T A business process consists of activities, resources, facilities, and information. (T/F)
The fact that the sun rose this morning at 6:25 a.m. is an example of data. (T/F) - ANS D Data is another word for information. (T/F) - ANS F When data is presented with a meaningful context, it becomes information. (T/F) - ANS T The information that is the output of one process can be viewed as a data input to another process. (T/F) - ANS T Each activity within a business process must use one, and only one, information system. (T/F) - ANS F It is good business practice for a payment activity to have a single person assigned to approve payments and generate checks. (T/F) - ANS F Strategic decisions involve long term actions whose consequences may not be realized for years. (T/F) - ANS T A structured decision involves an understood and accepted method for making the decision. (T/F) - ANS T
An activity is considered to be automated when it is characterized by people following procedures. (T/F) - ANS F In an information systems framework, software and procedure components are both sets of instructions. (T/F) - ANS T In the five-component framework of information systems, the actors are hardware and people. (T/F) - ANS T Automation moves work from the software component to the hardware component. (T/F) - ANS F A business process is A) a network of activities used to accomplish business goals. B) a set of required steps in a production process. C) a network of activities, resources, facilities, and information that interact to achieve some business function. D) a set of activities in a value chain. E) a set of activities in a supply chain. - ANS C An information system must produce information that is A) worth its cost, relevant, barely sufficient, and accurate. B) relevant, timely, all encompassing, and worth its cost. C) just barely sufficient, only a year old, and worth its cost.
D) timely and accurate. E) accurate and worth its cost. - ANS A Which of the following are characteristics of good information? A) Worth its cost, timely, relevant, all encompassing B) Timely, expensive but complete, relevant C) Relevant, not many important errors, worth its cost D) Timely, expensive but complete, accurate E) Timely, relevant, worth its cost, barely sufficient, accurate - ANS E Relevant information refers to information that is A) worth the value paid to generate it. B) useful to both the context and the subject at hand. C) good for the purpose for which it is generated. D) produced in time for its intended use. E) correct and complete. - ANS B Just barely sufficient information refers to information that is A) correct and complete. B) produced in time for its intended use. C) good for the purpose for which it is generated. D) not useful to the decision being made.
E) the control of resources and activities. - ANS D Strategic decision refer to A) the allocation and utilization of resources. B) broader-scope, organizational issues. C) day-to-day activities. D) transactions details. E) an understood and accepted method for making decisions. - ANS B A Transaction Processing System supports A) transactional decisions. B) operational decisions. C) strategic decisions. D) executive decisions. E) managerial decisions. - ANS B A Management Information System supports A) operational decisions. B) managerial decisions. C) strategic decisions. D) unstructured decisions. E) executive decisions. - ANS B
Operational decisions involve A) long term actions. B) short term actions. C) allocation of resources. D) product line development. E) staffing quotas. - ANS B An understood and accepted method for making decisions is used to make A) managerial decisions. B) operational decisions. C) strategic decisions. D) executive decisions. E) structured decisions. - ANS E An unstructured decision making process A) is one for which there is an agreed upon decision-making method. B) is one for which there is no documentation required. C) is one for which there are no structured steps. D) is one for which there are no formal procedures. E) is one for which there is no agreed-on decision-making method. - ANS E
E) the review step. - ANS B An activity can be defined as A) the carrying out of a business procedure. B) a series of steps in a business process. C) an action that supports a business strategy. D) transforming resources and information of one type into resources and information of another type. E) action performed by an actor. - ANS D Items of value are referred to as A) money. B) valuables. C) resources. D) facilities. E) equipment. - ANS C The HELM system improves efficiency by eliminating A) computers aboard tugboats. B) multiple dispatcher log sheets. C) multiple data entries for each job. D) accurate paper work.
E) the large number of people involved in completing a job. Answer: C - ANS C Knowledge derived from data can be described as A) wisdom. B) information. C) knowledge. D) data. E) context. - ANS B Recorded facts or figures is (are) A) context. B) information. C) data. D) knowledge. E) processed information. - ANS C Data presented in a meaningful context can be described as A) processed information. B) knowledge. C) information. D) processed knowledge.
E) Weather forecasting - ANS E Which of the following is an unstructured decision? A) Allocating furniture and equipment to employees B) Weather forecasting C) Determining the future book value of assets D) Stock marketing forecasting E) Airline pricing - ANS D Which of the following is a managerial decision? A) Which invoices should be paid today? B) Determining next year's IT budget C) Should we extend credit to a customer? D) Determining how many daily transactions have occurred in a specified period E) Should our firm acquire a competing firm? - ANS B Which of the following is an operational decision? A) Determining next year's IT budget B) Should we extend credit to a customer? C) What are our production goals for the next three months? D) Which invoices should be paid today? E) Should our firm acquire a competing firm? - ANS D
Which of the following is a strategic decision? A) Should we extend credit to a customer? B) Determining next year's IT budget C) What wage should we pay a particular employee? D) Should our firm acquire a competing firm? E) Which invoices should be paid today? - ANS D Which of the following is most useful to a company? A) Knowledge B) Observations C) Decisions D) Information E) Data - ANS A The average wage for a factory worker is an example of (a) A) data. B) business process. C) knowledge. D) strategy. E) decision - ANS C
Customer numbers and their names would be an example of the ________ component of an order management information system. A) software B) information C) procedure D) hardware E) people - ANS B Business systems are sometimes referred to as business A) networks. B) models. C) channels. D) processes. E) webs. - ANS D A business process is a network of information, resources, facilities, and A) hardware. B) activities. C) systems. D) data. E) knowledge. - ANS B
In the inventory management process, quality inspection would be viewed as a(n) A) activity. B) information output. C) data input. D) resource. E) facility. - ANS A An activity can be ________ or ________ and sometimes blended, depending on how the procedures are executed. A) external, internal B) manual, automated C) internal, automated D) automated, integrated E) integrated, manual - ANS B In an automated activity the computer hardware receives its instructions from (the) A) version control program. B) network protocols. C) people. D) software. E) Web services. - ANS D
The on-time performance of all your vendors for a specific item would be an example of A) inventory. B) data. C) communication. D) information. E) resources. - ANS D For General Motors, the quantity of tire rims received would be an example of A) communication. B) knowledge. C) data. D) information. E) resources. - ANS C In an information system, the software and ________ components are both sets of instructions. A) data B) software C) people D) procedure E) hardware - ANS D
Business processes generate information by combining key data in a specific A) context. B) activity. C) procedure. D) relevance. E) process. - ANS A In an information system the people and ________ components are considered to be actors since they can take specific actions. A) hardware B) data C) people D) procedure E) software - ANS A ________ would be one of the factors that lead to designing fully automated systems. A) High skill employee positions B) Tasks that require significant employee data inputs C) Low turnover employee positions D) High turnover employee positions E) Tasks that require significant human judgement - ANS D