1)(a)Manufacturer produces goods (from raw materials) that are sold to other businesses or to

individual consumers. Goods may be final products (eg.Shoe) or components (plastic, rubber,
steel).

Wholesalers purchase large quantities of the goods from manufacturer and store them in
warehouse and then sell smaller quantities to retailers, and distribute these quantities to the
retailers.

Retailers purchase quantities of goods from wholesalers or directly from manufacturers. They
keep the goods at a store or other retail location and resell them one at a time or in small
quantities to individual consumers.

(b)A profit-making organization is a legal entity which operates for earning profit for the owner.
Example: partnership firm.

A not-for-profit organization provides goods and services without the intent of making a profit.
Example: WWF.

2) Manufacturers focus on quality and efficiency, not small packaging and small shipments.
Wholesalers break bulk so retailers get the appropriate quantity. Wholesalers bring in volume
shipments from suppliers and efficiently deliver items directly to many different retailers.

3)(a) Information system (IS) is a collection of components that work together to provide
information to help in the operations and management of an organization.

Information
Input Processing Output
Input data (output
Function Function Function
data)

Storage
Function

Stored
data
Input Function: accepts input data from outside system.

Storage Function: retain input data, retrieves data when needed.

Processing Function: calculates, manipulate data.

Output Function: produces results for use.

3)(b)

Input Function:  The card reader captures the account information stored on the magnetic
stripe on the back of an ATM/debit or credit card

Processing Function: calculate and dispense cash.

Output Function: The display screen prompts the cardholder through each step of the
transaction process.

Storage Function: retain information.

4)(a)point of sales (POS) system.

4)(b)

Component Description Example

Hardware It consists of the computers Motherboard

(PC, mini, mainframes),

communications equipment
(wire, fiber optic cables), and
other devices (digital camera,

printers, microphones) used

in a system.

Software Software consists of Computing payroll

instruction that tell hardware
what to do.

Database/Stored data It consists of all the data that Window file

is kept in computers in the
system and that is used by the
 software of the system.

Procedures Procedures are instructions Desktop

that tell people how to use
and operate the system.

Personnel People have to supply input People (customer/client)

data to the system, receive
output information from the
system, operate the hardware
in the system, and run the
software that is part of the

system.