BB42 Objective 4 Test Review

Appropriate information management helps a business build a good reputation by:

• being consistent.

• charging high prices.

• eliminating all mistakes.

• offering quality products.

Answer explanation

Which action is part of information management?

• creating information

• updating technology

• observing competitors

• disseminating information

Which information must a business manage?

• accounting records

• competitors' payrolls

• government spending

• employees' personal bills

Managing information regarding copyrights and trademarks helps a company to preserve its:

• correspondence.

• customers.

• identity.

• inventory

Marvin, the staff accountant, is unable to find last year's tax return. What information management guideline is he failing to follow?

• listing information for accuracy

• disposing of outdated information

• purchasing consistent information

• maintaining information for retrieval

How does appropriate information management affect a business's relationship with its customers?

• The business earn higher profits.

• The business loses focus on customers.

• The business makes better financial decisions.

• The business serves customers more effectively.

ABC Corporation makes its employees sign a noncompete agreement. This agreement states that employees who leave the company are restricted from working for a competitor for two years. The purpose of this agreement is to make sure that competitors are unable to obtain ABC Corporation's trade secrets. What type of information is ABC Corporation protecting?

• business

• employee

• technology

• management

To reduce the risk associated with noncompliance, a business should continously monitor:

• government regulations.

• competitors' activities.

• judicial opinions.

• social etiquette.

During a staff meeting, the company's president states, "Samari Enterprises experienced a three percent increase during the first quarter and a five percent increase during the second quarter of this fiscal year." What type of information is the president providing?

• raw data

• tacit knowledge

• personal opinion

• explicit knowledge

Tim is the technology manager for the MSJ Company. He is responsible for backing up the computer system every evening to ensure the company has a copy of each day’s computer activities and transactions. On Tuesday evening, Tim was running late for a meeting and decided not to conduct the backup activities. Later that night, the computer system crashed and all of Tuesday’s computer data was lost. By apologizing to his boss for making a poor decision and offering to work extra hours to help fix the problem, Tim was:

• taking the time to make informed decisions.

• promising not to make any mistakes in the future.

• blaming others for the consequences of his actions.

• accepting the consequences for the decisions he made.