IB CH 14

Question 1

How does information influence decision making and risk?

Answer 1

Relevant information –> Better intelligence and knowledge –> Better decisions

• this can provide a competitive edge over competitors and improve a firm’s profits

Question 2

Information rules

Answer 2

An information rule emerges when research confirms the same results each time.

(because business changes over time the information rules do so most of the time too)

Question 3

data

Answer 3

numerical or verbal description that usually results from some sort of measurement

Question 4

information

Answer 4

data presented in a form that is useful for a specific purpose

Question 5

knowledge management (KM)

Answer 5

a firm’s procedure for generating, using, and sharing the data and information

Question 6

decision-support system (DSS)

Answer 6

a type of software program that provides relevant data and information to help a firm’s employees make decisions

Question 7

executive information system (EIS)

Answer 7

a computer-based system that facilitates and supports the decision-making needs of top managers and senior executives by providing easy access to both internal and external information

Question 8

expert system

Answer 8

a type of computer program that uses artificial intelligence to imitate a human’s ability to think

Question 9

Management information system (MIS)

Answer 9

provides managers and employees with information they need to perform their jobs as effectively as possible

Question 10

data processing

Answer 10

the transformation of data into a form that is useful for a specific purpose

Question 11

statistic

Answer 11

is a measure that summarizes a particular characteristic of an entire group of members

Question 12

five functions of an MIS

Answer 12

collecting data, storing data, updating data, processing data into information and presenting information