Characteristics of Useful Information Quiz
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Questions and Answers

What are the primary horizontal flows of information used for?

  • Distribute quotas
  • Capture transaction and operations data (correct)
  • Aggregate transaction data
  • Provide instructions and budgets
  • Which direction do upward flows of information typically move in an organization?

  • Detailed operational data
  • Aggregated transaction and operations data (correct)
  • Instructions and guidelines
  • Quotas and budgets
  • What characterizes the information requirements of different user groups within an organization?

  • They decrease as the organizational level rises
  • They are unique to each group (correct)
  • They are all uniform
  • They focus on hierarchy structures
  • What is the relationship between the level of an organization and its need for information detail?

    <p>Higher organizational levels need less detail</p> Signup and view all the answers

    The text suggests that information is a vital business resource that requires what kind of management?

    <p>Appropriate management</p> Signup and view all the answers

    How is a system defined in the context of the text?

    <p>A group of interrelated components serving a common purpose</p> Signup and view all the answers

    What is the primary difference between a centralized data processing system and a distributed data processing system?

    <p>Control of data processing units</p> Signup and view all the answers

    Which of the following is not a potential advantage of distributed data processing systems?

    <p>Reduced need for regular maintenance</p> Signup and view all the answers

    In a distributed data processing system, who has more control over the information processing units?

    <p>End users</p> Signup and view all the answers

    What is one advantage of a centralized data processing system over a distributed system?

    <p>Better backup of data</p> Signup and view all the answers

    Which organizational structure is more likely to lead to improved user satisfaction in information processing?

    <p>Distributed structure</p> Signup and view all the answers

    What does distributed data processing offer in terms of data storage site redundancy and reliability?

    <p>Improved redundancy</p> Signup and view all the answers

    What is one of the characteristics of useful information as mentioned in the text?

    <p>Relevance: serves a purpose</p> Signup and view all the answers

    Which of the following is not an information system objective in a business context according to the text?

    <p>Enhancing creativity in employees</p> Signup and view all the answers

    What does the organizational structure help to allocate?

    <p>Responsibility, authority, accountability</p> Signup and view all the answers

    In the context of information generation, what does completeness refer to?

    <p>Presence of all essential information for a decision or task</p> Signup and view all the answers

    What is a key goal of an information system as per the text?

    <p>Supporting management decision making</p> Signup and view all the answers

    Which characteristic of useful information means that it should be free from material errors?

    <p>Accuracy</p> Signup and view all the answers

    Study Notes

    Characteristics of Useful Information

    • Relevance: serves a purpose
    • Timeliness: no older than the time period of the action it supports
    • Accuracy: free from material errors
    • Completeness: all information essential to a decision or task is present
    • Summarization: aggregated in accordance with the user's needs

    Information System Objectives in a Business Context

    • The goal of an information system is to support the stewardship function of management
    • Support management decision making
    • Support the firm's day-to-day operations

    Organizational Structure

    • The structure of an organization helps to allocate responsibility, authority, and accountability
    • Segmenting by business function is a common method of organizing

    Internal Information Flows

    • Horizontal flows of information are used primarily at the operations level to capture transaction and operations data
    • Vertical flows of information include:
      • Downward flows: instructions, quotas, and budgets
      • Upward flows: aggregated transaction and operations data

    Information Requirements

    • Each user group has unique information requirements
    • The higher the level of the organization, the greater the need for more aggregated information and less need for detail

    Information in Business

    • Information is a business resource that needs to be appropriately managed
    • Information is vital to the survival of contemporary businesses

    What is a System?

    • A system is a group of interrelated multiple components or subsystems that serve a common purpose

    Centralized Data Processing

    • All data processing is performed by one or more large computers housed at a central site
    • Primary areas: database administration, data processing systems development, and systems maintenance

    Organizational Structure for a Centralized System

    • Figure 1-10 shows the organization of IT function in a centralized system

    Organizational Structure for a Distributed Processing System

    • Figure 1-11 shows the organizational structure for a distributed processing system

    Potential Advantages of Distributed Data Processing

    • Cost reductions in hardware and data entry tasks
    • Improved cost control responsibility
    • Improved user satisfaction since control is closer to the user level
    • Backup of data can be improved through the use of multiple data storage sites

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    Description

    Test your knowledge on the 22 characteristics of useful information, including relevance, timeliness, accuracy, completeness, and summarization. Evaluate your understanding of what makes information valuable and effective for decision-making.

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