Question: Security isn’t simply a technology issue,

> Suppose the interest rate is 10 percent. What is the value of a coupon bond that pays $80 per year for each of the next five years and then makes a principal repayment of $1000 in the sixth year? Repeat for an interest rate of 15 percent.

> You are offered the choice of two payment streams: (a) $150 paid one year from now and $150 paid two years from now; (b) $130 paid one year from now and $160 paid two years from now. Which payment stream would you prefer if the interest rate is 5 perc

> Suppose the interest rate is 10 percent. If $100 is invested at this rate today, how much will it be worth after one year? After two years? After five years? What is the value today of $100 paid one year from now? Paid two years from now? Paid five years

> A consumer faces the following decision: She can buy a computer for $1000 and $10 per month for Internet access for three years, or she can receive a $400 rebate on the computer (so that its cost is $600) but agree to pay $25 per month for three years fo

> Suppose you can buy a new Toyota Corolla for $20,000 and sell it for $12,000 after six years. Alternatively, you can lease the car for $300 per month for three years and return it at the end of the three years. For simplification, assume that lease payme

> Reexamine the capital investment decision in the disposable diaper industry (Example 15.3) from the point of view of an incumbent firm. If P&G or Kimberly-Clark were to expand capacity by building three new plants, they would not need to spend $60 millio

> You are planning to invest in fine wine. Each case costs $100, and you know from experience that the value of a case of wine held for t years is 100t1/2. One hundred cases of wine are available for sale, and the interest rate is 10 percent. a. How many c

> Suppose your uncle gave you an oil well like the one described in Section 15.8. (Marginal production cost is constant at $10.) The price of oil is currently $20 but is controlled by a cartel that accounts for a large fraction of total production. Should

> Ralph is trying to decide whether to go to graduate school. If he spends two years in graduate school, paying $15,000 tuition each year, he will get a job that will pay $60,000 per year for the rest of his working life. If he does not go to school, he wi

> The market interest rate is 5 percent and is expected to stay at that level. Consumers can borrow and lend all they want at this rate. Explain your choice in each of the following situations: a. Would you prefer a $500 gift today or a $540 gift next yea

> As the owner of the only tennis club in an isolated wealthy community, you must decide on membership dues and fees for court time. There are two types of tennis players. “Serious” players have demand Q1 = 10 – P where Q1 is court hours per week and P is

> Equation (15.5) shows the net present value of an investment in an electric motor factory. Half of the $10 million cost is paid initially and the other half after a year. The factory is expected to lose money during its first two years of operation. If t

> How is a computer company’s demand for computer programmers a derived demand?

> What happens to the demand for one input when the use of a complementary input increases?

> Rock musicians sometimes earn several million dollars per year. Can you explain such large incomes in terms of economic rent?

> Compare the hiring choices of a monopsonistic and a competitive employer of workers. Which will hire more workers, and which will pay the higher wage? Explain.

> Why might a labor supply curve be backward bending?

> Why is a firm’s demand for labor curve more inelastic when the firm has monopoly power in the output market than when the firm is producing competitively?

> A firm uses both labor and machines in production. Explain why an increase in the average wage rate causes both a movement along the labor demand curve and a shift of the curve.

> A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 50 cookies per day, the cost of the average worker is $64 per day, and the price of a cookie is $1. Is the company maximizing its profit? Expl

> The government wants to encourage individuals on welfare to become employed. It is considering two possible incentive programs: a. Give firms $2 per hour for every individual on welfare who is hired. b. Give each firm that hires one or more welfare wor

> You are an executive for Super Computer, Inc. (SC), which rents out super computers. SC receives a fixed rental payment per time period in exchange for the right to unlimited computing at a rate of P cents per second. SC has two types of potential custom

> Explain briefly how the U.S. antitrust laws are actually enforced.

> The company tries to offer a wider range of office supplies at lower costs than other retailers by using just-in-time replenishment and tight inventory control systems. It uses information from a demand forecasting system and point-of-sale data to replen

> Companies like DST Systems have recognized the value in Scrum development to their bottom lines, but making the transition from traditional developmental methods to Scrum development can be challenging. DST Systems is a software development company whose

> You may soon hear more about Honam Petrochemical Corporation. Headquartered in Seoul, South Korea, this company manufactures and sells petrochemical products, such as synthetic resins, synthetic industrial materials, such as ethylene glycol and ethylene

> How do business intelligence and business analytics support decision making? 1. Define and describe business intelligence and business analytics. 2. List and describe the elements of a business intelligence environment. 3. List and describe the analytic

> Applebee’s is the largest casual dining chain in the world, with over 1,800 locations throughout the United States and 20 other countries. The menu features beef, chicken, and pork items, as well as burgers, pasta, and seafood. Applebee’s CEO wants to ma

> Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and production.

> Why are information systems vulnerable to destruction, error, and abuse? 1. List and describe the most common threats against contemporary information systems. 2. Define malware and distinguish among a virus, a worm, and a Trojan horse. 3. Define a hacke

> In February 2011, an IBM computer named Watson took on the two most-decorated champions of the game show Jeopardy, Ken Jennings and Brad Rutter. Watson, which was named after IBM’s founder, Thomas J. Watson, won handily. Watson’s achievement represents a

> Colgate-Palmolive Company is the second largest consumer products company in the world, and its products are marketed in over 200 countries and territories. The company had 39,000 employees worldwide and $16 billion in annual revenue in 2010. Colgate has

> What are the principal e-commerce business and revenue models? 1. Name and describe the principal e-commerce business models. 2. Name and describe the e-commerce revenue models.

> Company-sponsored blog: Visit Blue Nile, J.Crew, Circuit City, Black & Decker, Peet’s Coffee & Tea, and Priceline. Determine which would benefit most from adding a company-sponsored blog to the Web site. List the business benefits of the blog. Specify th

> The Internet may not make corporations obsolete, but the corporations will have to change their business models. Do you agree? Why or why not?

> Why is selecting computer hardware and software for the organization an important business decision? What people, organization, and technology issues should be considered when selecting computer hardware and software?

> Visit the Facebook and Twitter pages of Levi’s, Starbucks, or another company of your choice. Describe all of the ways the company is using its presence at these sites for engaging with customers, and their business benefits.

> How do supply chain management systems coordinate planning, production, and logistics with suppliers? 1. Define a supply chain and identify each of its components. 2. Explain how supply chain management systems help reduce the bullwhip effect and how the

> The three Internet titans—Google, Microsoft, and Apple—are in an epic struggle to dominate your Internet experience, and caught in the crossfire are search, music, books, videos, and other media, the device you use to do all of these things, cloud comput

> If a company wants to implement an enterprise application, it had better do its homework. Discuss the implications of this statement.

> Visit the Web sites of Salesforce.com, RightNow, or another competing company offering a cloud-based version of CRM. Then answer the following questions: 1. What CRM capabilities does the company offer? Describe some of the features. 2. Toward what types

> The publishing industry is grappling with disruptive technologies that may transform its business models and the way we buy and read books. What is the impact of the Internet and e-book technology on book and newspaper publishing? Who will win and who wi

> What is the business value of security and control? 1. Explain how security and control provide value for businesses. 2. Describe the relationship between security and control and recent U.S. government regulatory requirements and computer forensics.

> A survey of your firm's IT infastructure has identified a number of security vulnerabilities. Review the data on these vulnerabilities, which can be found in a table in MyMISLab. Use the table to answer the following questions: • Calculate the total numb

> If you were developing a business continuity plan for your company, where would you start? What aspects of the business would the plan address?

> Have you ever purchased antivirus software for your iPhone, Android, or cell phone? Probably not. Many users believe that their iPhones and Androids are unlikely to be hacked into because they think Apple and Google are protecting them from malware apps,

> In July 2010, reports surfaced about a Stuxnet worm that had been targeting Iran’s nuclear facilities. In November of that year, Iran’s President Mahmoud Ahmadinejad publicly acknowledged that malicious software had infected the Iranian nuclear facilitie

> Cloud computing has just begun to take off in the business world. The biggest player in the cloud computing marketplace is one you might not expect: Amazon. Under its Web Services (AWS) division, the company has streamlined cloud computing and made it an

> What are the main telecommunications transmission media and types of networks? 1. Name the different types of physical transmission media and compare them in terms of speed and cost. 2. Define a LAN, and describe its components and the functions of each

> BestMed Medical Supplies Corporation sells medical and surgical products and equipment from over 700 different manufacturers to hospitals, health clinics, and medical offices. The company employs 500 people at seven different locations in western and mid

> Should all major retailing and manufacturing companies switch to RFID? Why or why not?

> When you were at work, how minutes (or hours) did you spend on Facebook today? Did you send personal e-mail or visit some sports Web sites? If so, you’re not alone. According to a Nucleus Research study, 77 percent of workers with Facebook accounts use t

> When you were at work, how minutes (or hours) did you spend on Facebook today? Did you send personal e-mail or visit some sports Web sites? If so, you’re not alone. According to a Nucleus Research study, 77 percent of workers with Facebook accounts use t

> What kind of Internet user are you? Do you primarily use the Net to do a little e-mail and look up phone numbers? Or are you online all day, watching YouTube videos, downloading music files, or playing online games? If you have a smartphone, do you use i

> What are the principles of a database management system? 1. Define a database management system (DBMS) and describe how it works and explain how it benefits organizations. 2. Define and compare the logical and a physical view of data. 3. Define and descr

> Your industrial supply company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify bestselling products, key customers, and sales trends. Your sales and product information a

> To what extent should end users be involved in the selection of a database management system and database design?

> Michele Witte was one of dozens of parents who lost their children because of the defective design of drop-side cribs. In 1997, Witte’s 10-month-old son Tyler perished when the drop-side rail on his crib came loose, partially detached, and then trapped h

> What’s the best way to find out what your customers want? If you’re a large business with millions of customers, it’s impossible to ask each one face-to-face. But thanks to modern data management and data mining technology, you can “ask” each one by mini

> On April 19, 2011, system administrators at Sony's online gaming service PlayStation Network (PSN), with over 77 million users, began to notice suspicious activity on some of its 130 servers spread across the globe and 50 software programs. The PlayStati

> Look around. On the street, at restaurants, sports events, and stores, you’ll find many people using their smartphones. By 2013, 1.3 billion people will be able to use their mobile phone to do work on the go, and by 2015, 4.4 billion people, which is mor

> What are the major computer hardware, data storage, input, and output technologies used in business? 1. List and describe the various types of computers available to businesses today. 2. Define the client/server model of computing and describe the differ

> Qantas Airways, Australia’s leading airline, faces cost pressures from high fuel prices and lower levels of global airline traffic. To remain competitive, the airline must find ways to keep costs low while providing a high level of customer service. Qant

> Should organizations use software service providers (including cloud services) for all their software needs? Why or why not? What people, organization, and technology factors should be considered when making this decision?

> What kind of Internet user are you? Do you primarily use the Net to do a little e-mail and look up phone numbers? Or are you online all day, watching YouTube videos, downloading music files, or playing online games? If you have a smartphone, do you use i

> Look around. On the street, at restaurants, sports events, and stores, you’ll find many people using their smartphones. By 2013, 1.3 billion people will be able to use their mobile phone to do work on the go, and by 2015, 4.4 billion people, which is mor

> Computer rooms are becoming too hot to handle. Datahungry tasks such as watching videos on demand, downloading music, exchanging photos, and maintaining Web sites require more and more power-hungry machines. Power and cooling costs for data centers have

> How do the value chain and value web models help businesses identify opportunities for strategic information system applications? 1. Define and describe the value chain model. 2. Explain how the value chain model can be used to identify opportunities fo

> Despite aggressive campaigns to attract customers with lower mobile phone prices, Sprint Nextel has been losing large numbers of monthly contract subscribers. Management wants to know why so many customers are leaving Sprint and what can be done to entic

> What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage?

> Have you ever purchased antivirus software for your iPhone, Android, or cell phone? Probably not. Many users believe that their iPhones and Androids are unlikely to be hacked into because they think Apple and Google are protecting them from malware apps,

> When we hear "snowboarding," we tend to think of snow-covered slopes, acrobatic jumps, and high-flying entertainment. We don’t usually think of improving business process efficiency. But snowboarding is business for Burton Snowboards, an industry pioneer

> Starbucks is the world’s largest specialty coffee retailer, with more than 16,850 coffee shops in about 40 countries. For years, Starbucks has continued to grow throughout the United States and internationally, opening franchises at an impressive rate. F

> Computer rooms are becoming too hot to handle. Data hungry tasks such as watching videos on demand, downloading music, exchanging photos, and maintaining Web sites require more and more power-hungry machines. Power and cooling costs for data centers have

> What ethical, social, and political issues are raised by information systems? 1. Explain how ethical, social, and political issues are connected and give some examples. 2. List and describe the key technological trends that heighten ethical concerns. 3.

> USAData’s Web site is linked to massive databases that consolidate personal data on millions of people. Anyone with a credit card can purchase marketing lists of consumers broken down by location, age, income level, and interests. If you click on Consume

> How does a relational database organize data and how does it differ from an object-oriented database? 1. Define and explain the significance of entities, attributes, and key fields. 2. Define a relational database and explain how it organizes and stores

> Should producers of software-based services, such as ATMs, be held liable for economic injuries suffered when their systems fail?

> When new expensive medical therapies come along, promising to cure people of illness, one would think that the manufacturers, doctors, and technicians, along with the hospitals and state oversight agencies, would take extreme caution in their application

> Do you think that the more information managers receive, the better their decisions? Well, think again. Most of us can no longer imagine the world without the Internet and without our favorite gadgets, whether they’re iPads, smartphones, laptops, or cell

> Do you like your smartphone? Living on the grid has its advantages. You can access the Internet, visit your Facebook page, get Twitter feeds, watch video, and listen to music all with the same “communication and media device.” Less well known is that liv

> In July 2010, reports surfaced about a Stuxnet worm that had been targeting Iran’s nuclear facilities. In November of that year, Iran’s President Mahmoud Ahmadinejad publicly acknowledged that malicious software had infected the Iranian nuclear facilitie

> What are the core problem-solving steps for developing new information systems? 1. List and describe the problem-solving steps for building a new system. 2. Define information requirements and explain why they are important for developing a system solut

> The Warm and Toasty Heating Oil Company used to deliver heating oil by sending trucks that printed out a ticket with the number of gallons of oil delivered and that was placed on customers’ doorsteps. Customers received their oil delivery bills in the ma

> Discuss the role of business end users and information system professionals in developing a system solution. How do both roles differ when the solution is developed using prototyping or end-user development?

> In recent years, the airline industry has seen several low-cost, high-efficiency carriers rise to prominence using a recipe of extremely competitive fares and outstanding customer service. Two examples of this business model in action are JetBlue and Wes

> How does Porter’s competitive forces model help companies develop competitive strategies using information systems? 1. Define Porter’s competitive forces model and explain how it works. 2. List and describe four competitive strategies enabled by informat

> Companies like DST Systems have recognized the value in Scrum development to their bottom lines, but making the transition from traditional developmental methods to Scrum development can be challenging. DST Systems is a software development company whose

> Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in Austin, Texas, had a new data warehouse designed for analyzing customer activity to improve service and marketing. However, the dat

> You may soon hear more about Honam Petrochemical Corporation. Headquartered in Seoul, South Korea, this company manufactures and sells petrochemical products, such as synthetic resins, synthetic industrial materials, such as ethylene glycol and ethylene

> What are the different types of decisions, and how does the decision-making process work? 1. List and describe the different decision-making levels and decision-making groups in organizations and their decision-making requirements. 2. Distinguish betwee

> U.S. Pharma Corporation is headquartered in New Jersey but has research sites in Germany, France, the United Kingdom, Switzerland, and Australia. Research and development of new pharmaceuticals is key to ongoing profits, and U.S. Pharma researches and te

> What are the principal components of telecommunications networks and key networking technologies? 1. Describe the features of a simple network and the network infrastructure for a large company. 2. Name and describe the principal technologies and trends

> If businesses used DSS, GDSS, and ESS more widely, would they make better decisions? Why or why not?

> The world’s fastest growing gaming company doesn’t boast top-of-the-line graphics, heart-pounding action, or masterful storytelling. It doesn’t make games for the PlayStation, Xbox, or Wii. The company in question is Zynga, and if you have a Facebook acc

> In February 2011, an IBM computer named Watson took on the two most-decorated champions of the game show Jeopardy, Ken Jennings and Brad Rutter. Watson, which was named after IBM’s founder, Thomas J. Watson, won handily. Watson’s achievement represents a

> Colgate-Palmolive Company is the second largest consumer products company in the world, and its products are marketed in over 200 countries and territories. The company had 39,000 employees worldwide and $16 billion in annual revenue in 2010. Colgate has

> What are the unique features of e-commerce, digital markets, and digital goods? 1. Name and describe four business trends and three technology trends shaping e-commerce today. 2. List and describe the eight unique features of e-commerce. 3. Define a dig

> Columbiana: A small, independent Caribbean island that wants to develop its tourist industry and attract more visitors. How can a Web presence help? What Internet business model would be appropriate? What functions should the Web site perform?

> Macy’s, Inc., through its subsidiaries, operates approximately 800 department stores in the United States. Its retail stores sell a range of merchandise, including apparel, home furnishings, and housewares. Senior management has decided that Macy’s needs