Information Systems Today, 5e (Valacich/Schneider)

Chapter 6: Enhancing !siness Intelligence "sing Information Systems

1) Which of the following statements is true about business intelligence?
A) It is the act of outsourcing tasks, traditionally performed by an employee or contractor, to an
undefined, large group of people or community, through the use of information technology.
B) It is the process by which a customerowned mutual organi!ation or cooperati"e changes
legal form to a #oint stock company.
$) It is the use of information systems to gather and analy!e information from internal and
e%ternal sources in order to make better business decisions.
&) It is an organi!ation's process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy, including its capital and people.
() It is the use of human resources to gather and analy!e information from e%ternal sources in
order to make better business decisions.
)) *Backward looking* budgets are typically based on ++++++++.
A) forecasts
B) marketing research
$) future trends
&) historical data
() current market conditions
,) -esponding to threats and opportunities and continuous planning is based on analy!ing data
from the ++++++++ le"el of the organi!ation.
A) operational
B) e%ecuti"e
$) tactical
&) business
() strategic
.) /aking entities as tables, each row is a ++++++++.
A) field
B) record
$) attribute
&) form
() 0uery
1) /aking entities as tables, each column is a2n) ++++++++.
A) attribute
B) record
$) form
&) bot
() 0uery
3) An attribute is also referred to as a2n) ++++++++.
A) form
B) record
$) field
&) 0uery
() bot
4) A2n) ++++++++ is a collection of related attributes about a single instance of an entity.
A) bot
B) form
$) 0uery
&) field
() record
5) In &B67, data are kept separate from the applications' programming code. /his means that
++++++++.
A) an application cannot be changed without making changes to the database
B) an application's programming code needs to be updated continuously to keep up with the
database
$) an application needs to be changed when database is changed
&) database does not need to be changed if a change is made to an application
() database needs to be changed when a change is made to an application
8) A common way to represent a data model is a2n) ++++++++.
A) entityrelationship diagram
B) normali!ation diagram
$) report0uery diagram
&) formrecord diagram
() report generator
19) &ata type helps the &B67 ++++++++.
A) present the data in a useful format
B) format data
$) allocate storage space
&) eliminate data duplication
() retrie"e information
11) /o finali!e the data model in order to actually build the database, a process called ++++++++
is used to make sure the database will operate efficiently.
A) slicing and dicing
B) normali!ation
$) clustering
&) "isuali!ation
() inferencing
1)) In &B67, normali!ation helps to ++++++++.
A) eliminate data duplication
B) retrie"e information
$) format data
&) present the data in a useful format
() allocate storage space
1,) :nce the data model is created, the format of the data is documented in a2n) ++++++++.
A) data warehouse
B) data mart
$) e%pert system
&) data type
() data dictionary
1.) A data dictionary is also known as ++++++++.
A) data mart
B) data warehouse
$) metadata repository
&) entityrelationship diagram
() clickstream data
11) Bringes, a retail chain, has retail stores across three states. With its current legacy system,
Bringes is ha"ing problems tracking the in"entory le"els for its stores. It is planning to
implement :racle database systems to replace this legacy system. Which of the following most
supports Bringes' decision to replace its legacy system with an :racle database system?
A) Implementing :racle database system means hiring additional speciali!ed personnel to
manage it.
B) ;artial implementation of the :racle database system can create more problems than it sol"es.
$) $on"ersion cost re0uired for the implementation of :racle database system is supported by I/
budgets.
&) Bringes' channel partners use a database system that supports the :racle database system.
() 6aintenance cost of an :racle database system is more than the legacy system presently in
use.
13) /reston, an automobile manufacturer, has recently implemented a new database system. It is
confident that this system will help enhance the company's internal 2employees) and e%ternal
2customers and channel partners) communication. /reston is planning to pursue a #ustintime
in"entory system soon after the database system is implemented. After the implementation of the
database system, howe"er, /reston reali!ed that the database system was not effecti"e. Which of
the following, if true, can be cited as a reason for the failure of /reston's database system?
A) 6icrosoft launched a new "ersion of (nterprise 6icrosoft Access which is better than
/reston's database system.
B) /he maintenance cost of /reston's new database system was three times more than the one it
was pre"iously using.
$) /reston's new database system was not supported by the database system of its suppliers and
distributors.
&) /reston's competitors implemented its database a few days prior to /reston's implementation
date.
() /reston had to hire speciali!ed personnel to manage its new database system, which added to
its costs.
14) Business rules are captured by the designers of the database and included in the data
dictionary to ++++++++.
A) organi!e and sort the data, complete calculations, and allocate storage space
B) pre"ent illegal or illogical entries from entering the database
$) eliminate data duplication
&) make sure that each table contains only attributes that are related to the entity
() capture the structure of the database
15) ++++++++ are used to capture data to be added, modified, or deleted from the database.
A) <orms
B) -eports
$) =ueries
&) Bots
() >ayers
18) A2n) ++++++++ is a compilation of data from the database that is organi!ed and produced in
printed format.
A) form
B) attribute
$) field
&) entity
() report
)9) A 0uery is used to ++++++++.
A) organi!e and sort the data in a database
B) allocate storage space for a database
$) eliminate data duplication
&) retrie"e information from a database
() pre"ent illegal or illogical entries from entering the database
)1) Which of the following statements is true about 0uery by e%ample capabilities in a database?
A) It helps to create a 0uery 0uickly and easily.
B) It refers to immediate automated responses to the re0uests of users.
$) It is designed to handle multiple concurrent transactions from customers.
&) Its primary use is gathering new information.
() It pre"ents illegal entries into a database.
))) /he systems that are used to interact with customers and run a business in real time are called
++++++++.
A) tactical systems
B) strategic systems
$) operational systems
&) informational systems
() e%ecuti"e systems
),) ++++++++ is the data that is deemed most important in the operation of a business.
A) 6etadata
B) 6aster data
$) -eference data
&) =uery data
() /actical data
).) Which of the following statements is true about an operational system?
A) Its primary purpose is to support managerial decision making.
B) It consists of historical or pointintime data.
$) Its goal is to enhance ease of access and use.
&) It consists of narrow and simple updates and 0ueries.
() It is primarily used by managers.
)1) Which of the following statements is true about informational systems?
A) Its primary purpose is to run the business on a current basis.
B) It is primarily used by online customers, clerks, salespersons, and administrators.
$) It consists of narrow and simple updates and 0ueries.
&) Its goal is to enhance performance.
() Its goal is to enhance ease of access and use.
)3) ++++++++ integrates data from "arious operational systems.
A) &ata warehouse
B) 6etadata repository
$) &ata modeling
&) 6aster data
() &ata mining
)4) /he purpose of a data warehouse is to ++++++++.
A) standardi!e the format of data retrie"ed from different systems
B) allow managers to run 0ueries and reports themsel"es without ha"ing to know 0uery
languages or the structure of the underlying data
$) pro"ide capabilities for disco"ering *hidden* predicti"e relationships in the data
&) put key business information into the hands of more decision makers
() reduce the comple%ity of the data to be analy!ed
)5) ++++++++ refers to the process of standardi!ing the format of data retrie"ed from different
systems.
A) &ata cleansing
B) &ata mining
$) ?ormali!ation
&) $ontent mining
() $lustering
)8) A ++++++++ is a data warehouse that is limited in scope.
A) metadata repository
B) master data
$) data model
&) data reduction
() data mart
,9) Which of the following statements is true about a data mart?
A) It standardi!es the format of data retrie"ed from different systems.
B) It contains selected information from the data warehouse.
$) It stores master data only.
&) It is is a compilation of data from the database that is organi!ed and produced in printed
format.
() It helps to eliminate data duplication.
,1) Information and knowledge disco"ery tools are used primarily to ++++++++.
A) standardi!e the format of data retrie"ed from different systems
B) reduce the comple%ity of the data to be analy!ed
$) e%tract information from e%isting data
&) disco"er *hidden* predicti"e relationships in the data
() allow managers to learn 0uery language for the effecti"e maintenance of the database
,)) ++++++++ are produced at predefined inter"als to support routine decisions.
A) Ad hoc 0ueries
B) (%ception reports
$) &rilldown reports
&) 7cheduled reports
() @eyindicator reports
,,) Which of the following statements is true about keyindicator reports?
A) /hey pro"ide a summary of critical information on a recurring schedule.
B) /hey help analy!e why a key indicator is not at an appropriate le"el or why an e%ception
occurred.
$) /hey are produced at predefined inter"als to support routine decisions.
&) /hey highlight situations that are out of the normal range.
() /hey answer unplanned information re0uests to support a nonroutine decision.
,.) Which of the following statements is true about e%ception reports?
A) /hey help analy!e why a key indicator is not at an appropriate le"el or why an e%ception
occurred.
B) /hey are produced at predefined inter"als to support routine decisions.
$) /hey answer unplanned information re0uests to support a nonroutine decision.
&) /hey pro"ide a summary of critical information on a recurring schedule.
() /hey highlight situations that are out of the normal range.
,1) ++++++++ help analy!e why a key indicator is not at an appropriate le"el or why an
e%ception occurred.
A) Ad hoc 0ueries
B) (%ception reports
$) &rilldown reports
&) 7cheduled reports
() @eyindicator reports
,3) Which of the following statements is true about ad hoc 0ueries?
A) /hey are produced at predefined inter"als to support routine decisions.
B) /hey pro"ide a summary of critical information on a recurring schedule.
$) /hey help analy!e why a key indicator is not at an appropriate le"el or why an e%ception
occurred.
&) /hey answer unplanned information re0uests to support a nonroutine decision.
() /hey highlight situations that are out of the normal range.
,4) ++++++++ refers to the process of 0uickly conducting comple%, multidimensional analyses of
data stored in a database that is optimi!ed for retrie"al, typically using graphical software tools.
A) Inferencing
B) :nline analytical processing
$) ?ormali!ation
&) &ata mining
() ;redicti"e analysis
,5) :nline analytical processing tools enable users to ++++++++.
A) disco"er *hidden* predicti"e relationships in the data
B) find associations or correlations among sets of items
$) analy!e different dimensions of data beyond simple data summaries
&) group related records together on the basis of ha"ing similar "alues for attributes
() e%tract te%tual information from Web documents
,8) Which of the following statements is true about online analytical processing ser"er?
A) It is a data structure allowing for multiple dimensions to be added to a traditional two
dimensional table.
B) It groups related records together on the basis of ha"ing similar "alues for attributes.
$) It allows you to make hypothetical changes to the data associated with a problem and obser"e
how these changes influence the results.
&) It uses reasoning methods based on knowledge about a specific problem domain in order to
pro"ide ad"ice.
() It understands how data is organi!ed in the database and has special functions for analy!ing
the data.
.9) Aow do online analytical processing systems impro"e performance?
A) /hey preaggregate data so that only the subset of the data necessary for the 0ueries is
e%tracted.
B) /hey use reasoning methods based on knowledge about a specific problem domain.
$) /hey make hypothetical changes to the data associated with a problem.
&) /hey allow for multiple dimensions to be added to a traditional twodimensional table.
() /hey pro"ide capabilities for disco"ering *hidden* predicti"e relationships in the data.
.1) In online analytic processing systems, ++++++++ are the "alues or numbers the user wants to
analy!e.
A) dimensions
B) forms
$) measures
&) 0ueries
() entities
.)) In online analytic processing systems, ++++++++ pro"ide a way to summari!e the data.
A) forms
B) measures
$) facts
&) records
() dimensions
.,) Which of the following statements is true about the online analytic processing cube?
A) It allows you to make hypothetical changes to the data associated with a problem and obser"e
how these changes influence the results.
B) It groups related records together on the basis of ha"ing similar "alues for attributes.
$) It understands how data is organi!ed in the database and has special functions for analy!ing
the data.
&) It is a data structure allowing for multiple dimensions to be added to a traditional two
dimensional table.
() It uses reasoning methods based on knowledge about a specific problem domain in order to
pro"ide ad"ice.
..) &ata mining complements online analytic processing in that it ++++++++.
A) finds associations or correlations among sets of items
B) pro"ides capabilities for disco"ering *hidden* predicti"e relationships in the data
$) e%tracts te%tual information from Web documents
&) groups related records together on the basis of ha"ing similar "alues for attributes
() analy!es different dimensions of data beyond simple data summaries
.1) ++++++++ can be achie"ed by rolling up a data cube to the smallest le"el of aggregation
needed, reducing the dimensionality, or di"iding continuous measures into discrete inter"als.
A) &ata cleansing
B) ?ormali!ation
$) $lustering
&) &ata reduction
() Inferencing
.3) Which of the following statements is true about association disco"ery?
A) It is a techni0ue used to find correlations among sets of items.
B) It is the process of grouping related records together on the basis of ha"ing similar "alues for
attributes.
$) It is the use of analytical techni0ues for e%tracting information from te%tual documents.
&) It is a type of intelligent system that uses reasoning methods based on knowledge about a
specific problem domain in order to pro"ide ad"ice.
() It makes sure that each table contains only attributes that are related to the entity.
.4) ++++++++ is the process of grouping related records together on the basis of ha"ing similar
"alues for attributes.
A) ?ormali!ation
B) &ata mining
$) $lustering
&) Inferencing
() 7licing and dicing
.5) Which of the following is a recording of a user's path through a Web site?
A) clustering
B) normali!ation
$) slicing and dicing
&) clickstream data
() inferencing
.8) ++++++++ is the ability to attract and keep "isitors.
A) ?ormali!ation
B) Inferencing
$) 7tickiness
&) $rowdsourcing
() Bisuali!ation
19) Which of the following analysis are you conducting to make hypothetical changes to the data
associated with a problem and obser"e how these changes influence the results?
A) predicti"e analysis
B) timeseries analysis
$) linear regression analysis
&) whatif analysis
() multi"ariate analysis
11) Which of the following statements is true about e%pert systems?
A) It is composed of a network of processing elements that work in parallel to complete a task,
attempt to appro%imate the functioning of the human brain and can learn by e%ample.
B) It is a program that works in the background to pro"ide some ser"ice when a specific e"ent
occurs.
$) It uses reasoning methods based on knowledge about a specific problem domain in order to
pro"ide ad"ice.
&) It allows you to make hypothetical changes to the data associated with a problem and obser"e
how these changes influence the results.
() It groups related records together on the basis of ha"ing similar "alues for attributes.
1)) Which of the following statements is true about a rule in e%pert systems?
A) It groups related records together on the basis of ha"ing similar "alues for attributes.
B) It makes sure that each table contains only attributes that are related to the entity.
$) It allows multiple dimensions to be added to a traditional twodimensional table.
&) It is typically e%pressed using an *ifCCthen* format.
() It allows you to make hypothetical changes to the data associated with a problem and obser"e
how these changes influence the results.
1,) ++++++++ allows e%pert system rules to be represented using appro%imations or sub#ecti"e
"alues in order to handle situations where information about a problem is incomplete.
A) <u!!y logic
B) ?ormali!ation
$) $lustering
&) Whatif analysis
() 7tickiness
1.) /he processing in an (7 is called ++++++++.
A) clustering
B) inferencing
$) normali!ation
&) recommending
() data cleansing
11) Which of the following statements is true about neural networks?
A) It allows multiple dimensions to be added to a traditional twodimensional table.
B) It works in the background to pro"ide some ser"ice when a specific e"ent occurs.
$) It attempts to appro%imate the functioning of the human brain and can learn by e%ample.
&) It uses reasoning methods based on knowledge about a specific problem domain in order to
pro"ide ad"ice.
() It helps analy!e why a key indicator is not at an appropriate le"el or why an e%ception
occurred.
13) Which of the following statements is true about user agents?
A) /hey are also known as Web spiders.
B) /hey are agents that search to find the best price for a particular product you wish to
purchase.
$) /hey are agents that continuously analy!e large data warehouses to detect changes deemed
important by a user.
&) /hey are agents that automatically perform a task for a user.
() /hey are agents designed by spammers and other Internet attackers to farm email addresses
off Web sites or deposit spyware on machines.
14) Which of the following is a role of monitoring and sensing agents?
A) tracking in"entory le"els
B) sending a report at the first of the month
$) assembling customi!ed news
&) analy!ing data warehouses to detect changes deemed important to a user
() finding the best price for a particular product the user wants to purchase
15) Which of the following is a role of data mining agents?
A) tracking in"entory le"els
B) sending a report at the first of the month
$) assembling customi!ed news
&) analy!ing data warehouses to detect changes deemed important to a user
() finding the best price for a particular product the user wants to purchase
18) Which of the following statements is true about e%plicit knowledge assets?
A) It reflects the processes and procedures that are located in a person's mind on how to
effecti"ely perform a particular task.
B) It reflects the person's ability to effecti"ely sol"e a problem without e%ternal help.
$) It reflects knowledge that can be documented, archi"ed, and codified, often with the help of
information systems.
&) It reflects an indi"idual's special knowledge about a newtotheworld product.
() It reflects the strategies that are located in a person's mind on how to effecti"ely perform a
particular task.
39) Which of the following is the primary goal of a knowledge management system?
A) Identifying how to recogni!e, generate, store, share, and manage tacit knowledge.
B) $ontinuously analy!ing large data warehouses to detect changes deemed important by a user.
$) Drouping related records together on the basis of ha"ing similar "alues for attributes.
&) Allowing hypothetical changes to the data associated with a problem to obser"e how these
changes influence the results.
() Identifying how to recogni!e, generate, store, share, and manage e%plicit knowledge.
31) 7ocial network analysis is a techni0ue that attempts to ++++++++.
A) analy!e large data warehouses to detect changes deemed important by a user
B) analy!e why a key indicator is not at an appropriate le"el or why an e%ception occurred
$) disco"er *hidden* predicti"e relationships in the data
&) allow hypothetical changes to the data associated with a problem to obser"e how these
changes influence the results
() find e%perts in particular sub#ect areas
3)) ++++++++ refers to the display of comple% data relationships using a "ariety of graphical
methods.
A) ?ormali!ation
B) Bisuali!ation
$) $lustering
&) Inferencing
() /e%tual mining
3,) Which of the following statements is true about digital dashboards?
A) It is the combination of "arious analysis techni0ues and interacti"e "isuali!ation to sol"e
comple% problems.
B) It supports usage models like push reporting, e%ception reporting and alerts, and pull
reporting.
$) It can "isuali!e features and relationships between features drawn from an underlying
geographic database.
&) Analysts can combine geographic, demographic, and other data for locating target customers.
() It a system for creating, storing, analy!ing, and managing geographically referenced
information.
3.) &igital dashboards pro"ide the decision makers with a 0uick o"er"iew of key performance
indicators and other key operational statistics and trends. /his usage model is known as
++++++++.
A) e%ception reporting
B) pull reporting
$) ad hoc reporting
&) drilldown reporting
() push reporting
31) While using digital dashboards, pull reporting is conducted to ++++++++.
A) alert the user of any items that re0uire immediate attention
B) pro"ide the decision makers with a 0uick o"er"iew of key performance indicators
$) disco"er *hidden* predicti"e relationships in the data
&) analy!e the root causes of an e%ception
() e%tract te%tual information from Web documents
33) Which of the following statements is true about hard data?
A) It in"ol"es the use of te%t mining technologies.
B) It includes nonanalytical information.
$) It in"ol"es input from dedicated personnel.
&) It includes te%tual news stories.
() It includes facts and numbers.
34) Which of the following e%plains the phrase *data is geocoded*?
A) It is transformed into coordinates.
B) It is shared in the Internet.
$) It is used to create Web pages.
&) It is compared with similar historical data.
() It is con"erted into soft data.
Chapter #: Enhancing !siness $rocesses "sing Enterprise Information Systems
1) /raditionally, companies are organi!ed around four distinct functional areas. Which of the
following is one of those four areas?
A) supply chain management
B) risk management
$) technology management
&) communication management
() systems management
)) Which of the following is a core business process?
A) timetopurchase
B) maketostock
$) plantoproduce
&) accounttoreport
() hiretoretire
,) Whene"er an order is placed with online retailers, the retailers put together the order, ship it,
and charge the customer's credit card. /his process of selling a product or ser"ice is known as the
++++++++ process.
A) maketoorder
B) timetomarket
$) ordertocash
&) procuretopay
() maketostock
.) <or most businesses, the ++++++++ process entails subprocesses such as creating a customer
recordE checking the customer's creditworthinessE creating an orderE checking and allocating
stockE picking, packing, and shippingE in"oicingE and collecting the payment.
A) ordertocash
B) maketoorder
$) procuretopay
&) maketostock
() plantoproduce
1) An online retailer has finished creating a customer record. What should the retailer do ne%t in
an ordertocash process?
A) create order
B) allocate stock
$) pick, pack, and ship
&) prepare and send in"oice
() check customer credit
3) In the ordertocash process, once *checking credit* is done, it is followed by ++++++++.
A) collecting payment
B) creating an order
$) allocating stock
&) picking, packing, and shipping
() preparing and sending the in"oice
4) An online retailer has #ust finished creating an order for a customer. In an ordertocash
process what should the retailer do ne%t?
A) collect payment
B) create customer record
$) allocate stock
&) pick, pack, and ship
() prepare and send in"oice
5) /he processes associated with the ac0uiring of goods from e%ternal "endors are together
referred to as the ++++++++ process.
A) maketostock
B) maketoorder
$) ordertocash
&) plantoproduce
() procuretopay
8) Which of the following is typically the first step in the procuretopay process?
A) negotiate price and terms
B) issue purchase order
$) recei"e goods
&) recei"e in"oice
() settle payment
19) In the procuretopay process, the negotiation of price and terms is followed by ++++++++.
A) settling the payment
B) creating the customer record
$) issuing the purchase order
&) recei"ing the goods
() recei"ing the in"oice
11) ++++++++ immediately after the purchase order is issued in the procuretopay process.
A) ;ayment is settled
B) ;rice and terms are negotiated
$) $redit is checked
&) Doods are recei"ed
() In"oices are recei"ed
1)) -ecei"ing the goods is immediately followed by ++++++++ in the procuretopay process.
A) settling the payment
B) negotiating the price and terms
$) issuing the purchase order
&) creating the order
() recei"ing the in"oice
1,) In the ++++++++ process, goods are produced based on forecasts and are stored in a
warehouse and sales orders are then fulfilled from the in"entory.
A) configuretostock
B) maketostock
$) maketoorder
&) engineertoorder
() assembletoorder
1.) Which of the following uses a pushbased approach?
A) ordertocash
B) procuretopay
$) productiontoorder
&) maketostock
() maketoorder
11) In the ++++++++ process, raw materials, subcomponents, and accessories are procured based
on forecasts, but actual manufacturing does not start until sales orders are recei"ed.
A) ordertocash
B) procuretopay
$) maketostock
&) ac0uiretodispose
() maketoorder
13) Which of the following uses a pullbased approach?
A) maketoorder
B) maketostock
$) plantoproduce
&) accounttoreport
() ac0uiretodispose
14) Which of the following is typically the first step in the maketostock process?
A) scheduling production
B) procuring inputs
$) processing sales orders
&) negotiating price and terms
() creating customer records
15) Which of the following goods are typically produced under a maketoorder approach?
A) e%pensi"e high"olume goods
B) cheap low"olume goods
$) "ery e%pensi"e low"olume goods
&) massproduced goods
() goods from e%ternal "endors
18) Which of the following goods are produced using the maketoorder approach?
A) commercial aircraft
B) shampoos
$) lipsticks
&) tele"isions
() refrigerators
)9) ++++++++ are performed by the functional areas that process inputs and produce outputs.
A) Base acti"ities
B) $ore acti"ities
$) 7upport acti"ities
&) (%tended acti"ities
() <ocus acti"ities
)1) Which of the following is a core acti"ity?
A) human resource acti"ities
B) technology de"elopment
$) operations and manufacturing
&) administrati"e acti"ities
() infrastructure acti"ities
))) Inbound logistics in"ol"es business acti"ities associated with ++++++++.
A) distributing end products within the ordertocash business process
B) creating marketing literature
$) communicating with potential and e%isting customers
&) recei"ing and stocking raw materials, parts, and products
() order processing
),) Assembly processes are ++++++++ acti"ities.
A) outbound logistics
B) marketing and sales
$) customer sales
&) administrati"e
() operations and manufacturing
).) :utbound logistics acti"ities focus on the ++++++++.
A) processing of orders
B) distribution of end products within the ordertocash business process
$) pricing of goods and ser"ices
&) transformation of raw materials into end products
() recei"ing and stocking of raw materials, parts, and products
)1) Administrati"e acti"ities focus on the ++++++++.
A) design and de"elopment of applications that support the primary business acti"ities
B) hardware and software that must be implemented to support the applications that the primary
acti"ities use
$) business acti"ities associated with employee management
&) processes and decision making to orchestrate the daytoday operations of an organi!ation
() purchasing of goods and ser"ices that are re0uired as inputs for the primary acti"ities
)3) /he hardware and software that must be implemented to support the applications that the
primary acti"ities use are a part of the ++++++++ acti"ities.
A) human resources
B) technology de"elopment
$) procurement
&) inbound logistics
() infrastructure
)4) Which of the following is a support acti"ity?
A) outbound logistics acti"ities
B) operations and manufacturing acti"ities
$) technology de"elopment acti"ities
&) customer ser"ice acti"ities
() marketing and sales acti"ities
)5) Auman resource acti"ities ++++++++.
A) is classified as a support acti"ity since the primary acti"ities cannot be accomplished without
the employees to perform them
B) includes the design and de"elopment of applications that support the primary business
acti"ities
$) includes the purchasing of goods and ser"ices that are re0uired as inputs to the primary
acti"ities
&) integrate the internal applications with suppliers, business partners, and customers
() streamline the organi!ation's internal "alue chain
)8) &esigning and de"eloping applications that support the primary business acti"ities are a part
of the ++++++++ acti"ities.
A) operations and manufacturing
B) outbound logistics
$) technology de"elopment
&) procurement
() inbound logistics
,9) A2n) ++++++++ information flow consists of information that is recei"ed from another
organi!ation.
A) standalone
B) legacy
$) packaged
&) upstream
() downstream
,1) A2n) ++++++++ information flow relates to the information that is produced by a company
and sent along to another organi!ation.
A) standalone
B) legacy
$) packaged
&) custom
() downstream
,)) 7ystems that focus on the specific needs of indi"idual departments and are not designed to
communicate with other systems in the organi!ation are referred to as ++++++++.
A) internally focused applications
B) e%ternally focused systems
$) standalone applications
&) enterprisewide systems
() enterpriseinformation systems
,,) 7tandalone systems are also known as ++++++++.
A) ethernet systems
B) automated business systems
$) peripheral systems
&) legacy systems
() con"erter systems
,.) >egacy systems can pro"e problematic when information from multiple departmental
systems is re0uired to support business processes and decision making. Which of the following is
most similar to the abo"e scenario?
A) $huck's is a retail chain that has an in"entory management system which is tied to an -<I&
system. /his system notifies $huck's managers when the in"entory in its stores fall below a
certain le"el.
B) =uick 7oftware 7olutions has an automated system to track employee absence. It also uses a
nonautomated system like attendance registers that employees sign e"eryday. /his information
is updated to =uick's database management system on a weekly basis.
$) ?uok /ires supplies its products to <resto, an automobile manufacturer. ?uok /ires' factories
are located close to <resto's factories to minimi!e transportation costs.
&) <ender, a guitar manufacturer, allows customers to design their guitars online. ;otential
buyers need to send this design with the order to recei"e their customi!ed guitars.
() Fsutmi successfully pursues a #ustintime in"entory system. -ecently, howe"er, it has not
been able to meet demand due to labor problems.
,1) A2n) ++++++++ is an integrated suite of business applications for "irtually e"ery department,
process, and industry, allowing companies to integrate information across operations on a
companywide basis using one large database.
A) legacy system
B) management information system
$) decision support system
&) distributed system software
() enterprise system
,3) An internally focused system helps an organi!ation coordinate with ++++++++.
A) its suppliers
B) its business partners
$) the go"ernment
&) its departments
() its customers
,4) A2n) ++++++++ coordinates business processes with customers, suppliers, and business
partners of an organi!ation.
A) internally focused system
B) legacy system
$) standalone system
&) intermediary system
() e%ternally focused system
,5) A system that communicates across organi!ational boundaries is sometimes referred to as
a2n) ++++++++.
A) legacy system
B) interorgani!ational system
$) intraorgani!ational system
&) internally focused system
() standalone system
,8) ++++++++ are applications written by thirdparty "endors for the needs of many different
users and organi!ations.
A) ;ackaged software
B) $ustom software
$) Bespoke software
&) ;ersonali!ed software
() /ailored software
.9) Applications that are designed and de"eloped e%clusi"ely for a specific organi!ation are
known as ++++++++.
A) collaborati"e software
B) custom software
$) groupware
&) readymade application software
() packaged software
.1) $ustomers can purchase ++++++++ software off the shelf to help them with their personal
documents and communications.
A) personali!ed
B) tailored
$) packaged
&) custom
() bespoke
.)) ;ackaged software is ++++++++.
A) used for standardi!ed, repetiti"e tasks
B) de"eloped e%clusi"ely for a specific organi!ation
$) uni0ue to a particular business or organi!ation
&) an application that needs to be maintained internally when changes are re0uired
() used to accommodate a customer's particular preferences and e%pectations
.,) Which of the following software is "ery cost effecti"e since the "endor that builds the
application spreads out the de"elopment costs by selling them to a large number of users?
A) packaged software
B) bespoke software
$) adapted software
&) corrected software
() custom software
..) Which type of software is best suited for tasks that are uni0ue to a particular business?
A) collaborati"e
B) custom
$) groupware
&) packaged
() readymade application
.1) Which of the following is true regarding packaged software and custom software?
A) ;ackaged software are applications that are designed and de"eloped e%clusi"ely for a specific
organi!ation.
B) /he de"elopment costs of custom software are much higher than for packaged software
because of the time, money, and resources that are re0uired to design and de"elop them.
$) ;ackaged software is well suited for tasks that are uni0ue to a particular business.
&) $ustom software is cost effecti"e since the "endor that builds the application can spread out
de"elopment costs through selling to a large number of users.
() $ustom software is highly useful for standardi!ed, repetiti"e tasks, such as writing a report or
preparing a presentation.
.3) /he features and modules that an enterprise system comes with out of the bo% are referred to
as the ++++++++.
A) bestpractices "ersion
B) reengineered "ersion
$) "anilla "ersion
&) customi!ed "ersion
() modified "ersion
.4) ++++++++ is a systematic, structured impro"ement approach by all or part of an organi!ation
whereby people critically e%amine, rethink, and redesign business processes in order to achie"e
dramatic impro"ements in one or more performance measures, such as 0uality, cycle time, or
cost.
A) Business process management
B) Business acti"ity monitoring
$) Business ser"ice management
&) Application performance management
() Application ser"ice management
.5) In the 1889s, business process management was known as ++++++++.
A) business systems management
B) business process reengineering
$) business ser"ice reengineering
&) application performance management
() application ser"ice management
.8) After deciding to focus on business process management, the management of a company has
#ust finished de"eloping a "ision for the organi!ation. /his "ision specifies the company's
business ob#ecti"es. /ypically, what should be the management's ne%t step?
A) /hey should identify the ways in which information systems can be used to impro"e the
"arious business processes.
B) /hey should design and implement a prototype of the new processes.
$) /hey should manage the information technology to be used from a business transaction
perspecti"e.
&) /hey should identify the critical processes that are to be redesigned.
() /hey should understand and measure the e%isting processes as a baseline for future
impro"ements.
19) After identifying the ways in which information systems can be used to impro"e the
processes, which of the following is the ne%t step in business process management?
A) identifying the critical processes that are to be redesigned
B) understanding and measuring the e%isting processes as a baseline for future impro"ements
$) reducing costs and shortening the time it takes to get products to market
&) designing and implementing a prototype of the new process
() de"eloping a "ision for the organi!ation that specifies the business ob#ecti"es
11) Aow is business process management similar to total 0uality management?
A) /hey are intended to be crossfunctional approaches to impro"e an organi!ation.
B) /hey focus on radical redesign and drastic impro"ement of processes.
$) /hey focus on incremental change of processes.
&) /hey focus on the acti"ities typically occurring at the operational le"el of the organi!ation.
() /hey focus on pro"iding capabilities for disco"ering *hidden* predicti"e relationships while
conducting a forecast.
1)) Applications that integrate business acti"ities across departmental boundaries are often
referred to as ++++++++ systems.
A) manufacturing resource planning
B) computerintegrated manufacturing
$) capacity re0uirement planning
&) enterprise resource planning
() materials re0uirement planning
1,) Which of the following is true regarding enterprise resource planning 2(-;)?
A) It stores data in different locations.
B) It is an older "ersion of materials re0uirement planning.
$) It helped in de"eloping the manufacturing resource planning package.
&) 7tandalone applications are a de"eloped "ersion of (-;.
() It makes the process of sharing information between business acti"ities easier.
1.) ++++++++ support the important internal acti"ities of the organi!ation for producing their
products and ser"ices.
A) (-; focus components
B) (-; core components
$) (-; e%tended components
&) (-; base components
() (-; co"ering components
11) <inancial management, operations management, human resource management, and other
important internal acti"ities re0uire the support of ++++++++.
A) (-; essence components
B) (-; e%terior components
$) (-; core components
&) (-; e%tended components
() (-; basis components
13) ++++++++ support the primary e%ternal acti"ities of the organi!ation for dealing with
suppliers and customers.
A) (-; components
B) (-; aggrandi!ed components
$) (-; abridged components
&) (-; e%tended components
() (-; core components
14) 7pecifically, (-; e%tended components focus primarily on ++++++++.
A) customer relationship management and product lifecycle management
B) product lifecycle management and supply chain management
$) customer relationship management and human capital management
&) human capital management and supply chain management
() customer relationship management and supply chain management
15) Which of the following is true regarding the formula for success of an enterprise system?
A) (nterprise systems implementations should include personnel from different departments.
B) /he success of an enterprise system depends directly on the support recei"ed from middle
management.
$) (nterprise systems are simple to understand and implement when compared to standalone
systems.
&) Gsing outside consultants tends to complicate the implementation of an enterprise system.
() :nce enterprise systems go li"e, employees e%perience an immediate growth in producti"ity.
18) In ser"iceoriented architecture, ++++++++.
A) business processes are broken down into indi"idual components or ser"ices
B) business processes of an organi!ation are standardi!ed
$) business processes of an organi!ation are integrated from indi"idual components
&) business processes are shared with channel partners
() business processes are modified to pre"ent illegal acti"ities within the process
39) By breaking down business processes into indi"idual ser"ices, organi!ations can react more
swiftly to changing business needs. /o achie"e these benefits, ser"ices ha"e to follow three main
principlesH
A) reusability, interoperability, and reliability
B) reusability, reliability, and componenti!ation
$) reusability, interoperability, and componenti!ation
&) reusability, interoperability, and accessability
() reusability, accessability, and componenti!ation
Chapter %: Impro&ing S!pply Chains and Strengthening C!stomer 'elationships "sing
Enterprise Information Systems
1) /he term ++++++++ is commonly used to refer to a collection of companies and processes
in"ol"ed in mo"ing a product from the suppliers of raw materials to the customer.
A) distribution resource planning
B) supply chain
$) procurement
&) demand chain
() "alue network
)) Which of the following statements about #ustintime strategies is true?
A) -etailers using this strategy allow suppliers to maintain ownership of in"entory within their
warehouses or stores until items are scanned at the point of sale.
B) $ompanies using this strategy allow the suppliers to manage the manufacturer's in"entory
le"els based on preestablished ser"ice le"els.
$) $ompanies using this strategy maintain large in"entories of supplies, parts, warehousing
resources, and e%tra workers to meet production contingencies.
&) $ompanies using this strategy are trying to optimi!e their ordering 0uantities such that parts
or raw material arri"e #ust when they are needed for production.
() /he manufacturer or retailer using this strategy shares realtime sales data with their suppliers,
who maintain in"entory le"els based on preestablished agreements.
,) Altri% $orp., an Indonesian firm, recently faced an unanticipated decline in the demand for its
product. /his dented the company's financial strength not only through loss of sales, but also
because it ended up with a substantial in"entory of raw materials that the company wasn't able to
use. As a result, Altri% has been rethinking its approach to in"entory management. 7ome of its
board members are suggesting that they use the #ustintime 2FI/) system to a"oid such situations
in the future. Which of the following, if true, could undermine the argument in fa"or of FI/?
A) 7ome of the raw materials Altri% re0uires are perishable in nature.
B) Altri% $orp. has already integrated backward by purchasing supplies located in different parts
of Indonesia.
$) Altri% $orp. recently entered into a ,year contract with a leading warehousing firm to use
their storage space on a *need be* basis.
&) Altri% $orp. is bidding for a huge go"ernment contract that could gi"e its sales some stability.
() >abor problems are a critical issue in this country.
.) ++++++++ is a business model in which the suppliers to a manufacturer manage the
manufacturer's
in"entory le"els based on preestablished ser"ice le"els.
A) Fustincase manufacturing
B) 7canbased trading
$) Bendormanaged in"entory
&) >ean manufacturing
() Fustintime
1) Which of the following statements about "endormanagement in"entory 2B6I) is true?
A) /o make B6I possible, the manufacturer must maintain large in"entories of supplies, parts,
warehousing resources, and e%tra workers to meet production contingencies.
B) 6anufacturers using B6I business model, manage the in"entories themsel"es and send out
re0uests for additional items to the "endors as needed.
$) $ompanies using this strategy are trying to optimi!e their ordering 0uantities such that parts
or
raw material arri"e #ust when they are needed for production.
&) /o make B6I possible, the manufacturer allows the supplier to monitor stock le"els and
ongoing sales data.
() -etailers using this strategy allow suppliers to maintain ownership of in"entory within their
warehouses or stores until items are scanned at the point of sale.
3) :ne ma#or problem affecting supply chains are ripple effects referred to as the ++++++++.
A) backflush effect
B) multiplier effect
$) bullwhip effect
&) incremental effect
() stockwhip effect
4) $omputer maker, &ell, reali!ed the problems with keeping large in"entories, especially
because of the fast rate of obsolescence of electronics components. &ell now keeps only about
two hours of in"entory in its factories. /he company is most likely using a ++++++++.
A) scanbased trading system
B) customermanaged in"entory system
$) #ustintime in"entory management system
&) "endormanaged in"entory system
() #ustincase in"entory management system
5) 6a%7teel Inc., has been supplying steel to a well known car manufacturer, Agis $orp., for the
past , years. $oncerned employees at 6a% can directly access Agis $orp.'s in"entory and sales
information "ia electronic data interchange./his allows 6a%7teel to monitor Agis $orp.'s
in"entory le"els on a realtime basis. /he system has worked well for both companies so far and
there has ne"er been any delay in the supply of steel. Which of the following, if true, would most
strengthen Agis' supply chain strategy?
A) Agis $orp.'s management decides to take strong measures for increasing their safety stock of
all raw materials.
B) Agis $orp., is taking measures to add wholesalers and retailers into their supply chain.
$) Agis $orp., has a strong desire to purchase 6a%7teel in order to reduce dependency.
&) Agis $orp., is taking measures to directly contact the consumers by remo"ing wholesalers
and retailers from their supply chain.
() Agis $orp., understands that the information shared with 6a%7teel will not be shared outside
their organi!ation.
8) <enphen was an antiobesity medication that consisted of two drugsH fenfluramine and
phentermine. <enfluramine was initially marketed by American Aome ;roducts, but was shown
to cause potentially fatal pulmonary hypertension and heart "al"e problems. /his e"entually led
to the withdrawal of the drug and legal damages of o"er I1, billion. /his is an e%ample of
++++++++.
A) a product recall
B) lean manufacturing
$) production control
&) the bullwhip effect
() a green business
19) >a Belle Inc. introduced a new line of accessories for teenaged girls last season. <ollowing
its immense popularity with the targeted group, the company anticipated high sales this season. It
ordered raw materials accordingly, and e"en ensured that they had sufficient in"entory to meet
e%cess demand, if any. Aowe"er, the success of the new line turned out to be a fad, as the teens
soon turned to other products offered by competing brands, and >a Belle's sales declined. /his
caused a huge discrepancy in the amount of raw materials they needed and the amount of
in"entory they had piled up in anticipation of good sales. /his is an e%ample of ++++++++.
A) the multiplier effect
B) hindsight bias
$) product recall
&) the bullwhip effect
() safety stock planning
11) Which of the following is the main ob#ecti"e of information systems that focus on impro"ing
supply
chains?
A) discouraging "endormanaged in"entory systems
B) accelerating product de"elopment and inno"ation
$) encouraging sustainable production processes
&) decentrali!ing the organi!ations
() encouraging the bullwhip effect
1)) Which of the following is the key use of distribution planning module of supply chain
management?
A) to ensure that the materials re0uired for production are a"ailable when needed
B) to forecast and plan anticipated demand for products
$) to optimi!e the allocation of a"ailable supply to meet demand
&) to support production processes taking into account capacity and material constraints
() to support recei"ing, storing, and picking of goods in a warehouse
1,) /he key use of order promising module of supply chain management is to ++++++++.
A) work with partners across the supply network to impro"e accuracy of demand forecasts,
reduce
in"entory buffers, and impro"e customer ser"ice
B) monitor key performance indicators to assess performance across the supply chain
$) manage logistics between company locations or from company to customers, taking into
account
transportation modes and constraints
&) assign optimal safety stock and target stock le"els in all in"entories in the supply network
() pro"ide answers to customer relationship management 0ueries regarding product a"ailability,
costs, and deli"ery times
1.) /he key use of manufacturing e%ecution module of supply chain management is to
++++++++.
A) forecast and plan anticipated demand for products
B) support production processes taking into account capacity and material constraints
$) ensure that the materials re0uired for production are a"ailable where needed, when needed
&) assign optimal safety stock and target stock le"els in all in"entories in the supply network
() support recei"ing, storing, and picking of goods in a warehouse
11) ++++++++ in"ol"es the de"elopment of "arious resource plans to support the efficient and
effecti"e production of goods and ser"ices.
A) 7upply chain "isibility
B) 7upply chain analytics
$) 7upply chain e%ecution
&) 7upply chain network
() 7upply chain planning
13) 7upply chain planning begins with ++++++++.
A) product demand planning and forecasting
B) distribution planning
$) production scheduling
&) in"entory planning
() safety stock planning
14) &emand planning and forecasting leads to the de"elopment of the o"erall ++++++++.
A) sourcing plan
B) transportation schedule
$) production plan
&) e%pected demand
() safety stock plan
15) ++++++++ focuses on deli"ering products or ser"ices to consumers as well as warehousing,
deli"ering, in"oicing, and payment collection.
A) ;roduct demand planning
B) ;roduction planning
$) &istribution planning
&) 7afety stock planning
() In"entory planning
18) &istribution planning leads to the de"elopment of the o"erall ++++++++.
A) production plan
B) safety stock plan
$) demand forecast
&) transportation schedule
() sourcing plan
)9) ;roduction scheduling ++++++++.
A) focuses on the coordination of all acti"ities needed to create the product or ser"ice
B) focuses on deli"ering products or ser"ices to consumers as well as warehousing
$) leads to the de"elopment of a sourcing plan
&) focuses on the de"elopment of in"entory estimates
() focuses on deli"ering products or ser"ices to consumers as well as in"oicing and payment
collection
)1) Gsing analytical tools to optimally utili!e labor, materials, and e0uipment is a part of the
++++++++ step of supply chain planning.
A) demand forecasting
B) production scheduling
$) distribution planning
&) in"entory planning
() transportation scheduling
))) In"entory and safety stock planning ++++++++.
A) leads to the de"elopment of the o"erall demand forecast
B) focuses on the coordination of all acti"ities needed to create the product or ser"ice
$) focuses on the de"elopment of in"entory estimates
&) focuses on deli"ering products or ser"ices to consumers as well as warehousing
() leads to the de"elopment of a transportation schedule
),) In"entory and safety stock planning leads to the de"elopment of a2n) ++++++++.
A) outsourcing plan
B) production plan
$) transportation schedule
&) demand forecast
() sourcing plan
).) 7upply chain e%ecution ++++++++.
A) in"ol"es the de"elopment of a sourcing plan
B) refers to the use of key performance indicators to monitor production
$) in"ol"es the management of information flow
&) refers to the ability to track products as they mo"e through the supply chain
() in"ol"es the de"elopment of demand forecast
)1) Which of the following statements is true about product flow, a key element of supply chain?
A) It refers to the ability to track products as they mo"e through the supply chain.
B) It refers to the mo"ement of information along the supply chain, such as order processing and
deli"ery status updates.
$) It refers to the mo"ement of goods from the supplier to production, from production to
distribution, and from distribution to the consumer.
&) It tracks a oneway flow of products from producers to consumers but cannot process returns
or customer refunds.
() It refers primarily to the mo"ement of financial assets throughout the supply chain.
)3) Which of the following statements is true about information flow, a key element of supply
chain
e%ecution?
A) A key element of this aspect of supply chain e%ecution is to foresee e%ternal e"ents.
B) Information can only flow up the supply chain.
$) It refers to the use of key performance indicators to monitor performance of the entire supply
chain.
&) /he key element to the information flow is the complete remo"al of paper documents.
() It refers primarily to the mo"ement of financial assets throughout the supply chain.
)4) Which of the following key elements of a supply chain includes information related to
payment schedules, consignment, and ownership of products and materials?
A) financial flow
B) personnel flow
$) information flow
&) product flow
() material flow
)5) ++++++++ refers not only to the ability to track products as they mo"e through the supply
chain but also to foresee e%ternal e"ents.
A) 7upply chain "isibility
B) &emand planning and forecasting
$) 7upply chain analytics
&) 7upply network collaboration
() 7upply chain efficiency
)8) ++++++++ refers to the use of key performance indicators to monitor performance of the
entire supply chain, including sourcing, planning, production, and distribution.
A) &emand forecasting
B) 7upply network collaboration
$) 7upply chain "isibility
&) 7upply chain efficiency
() 7upply chain analytics
,9) ++++++++ is the e%tent to which a company's supply chain is focusing on minimi!ing
procurement, production, and transportation costs, sometimes by sacrificing e%cellent customer
ser"ice.
A) 7upply chain analytics
B) 7upply chain effecti"eness
$) 7upply network collaboration
&) 7upply chain efficiency
() 7upply chain "isibility
,1) ++++++++ is the e%tent to which a company's supply chain is focusing on ma%imi!ing
customer ser"ice regardless of procurement, production, and transportation costs.
A) 7upply chain "isibility
B) 7upply chain effecti"eness
$) 7upply chain analytics
&) 7upply chain efficiency
() 7upply network collaboration
,)) Which of the following is an e%ample of supply chain efficiency?
A) <ederal (%press focuses on pro"iding superior ser"ice.
B) $aterpillar has high spare parts a"ailability.
$) &r. ;epper introduces a new fla"or of soft drink.
&) -ole% positions itself as a prestige brand.
() Apple sources its raw materials in a way to keep costs low.
,,) ++++++++ is a data presentation standard first specified by the World Wide Web $onsortium,
an international consortium of companies whose purpose is to de"elop open standards for the
Web.
A) (%tensible 6arkup >anguage
B) ;erl
$) 6y7=>
&) Acti"e 7er"er ;ages
() Gnified 6odeling >anguage
,.) ++++++++ allow2s) designers of Web documents to create their own customi!ed tags,
enabling the definition, transmission, "alidation, and interpretation of data between applications
and between organi!ations.
A) 6y7=>
B) Acti"e 7er"er ;ages
$) (%tensible 6arkup >anguage
&) ;erl
() Gnified 6odeling >anguage
,1) Which of the following statements is true about J6>?
A) J6> is standardi!ed.
B) J6> specifies a particular formatting.
$) J6> cannot be tailored to share any data across applications o"er the Web.
&) J6> tags are used to supply interacti"e content to a Web page.
() J6> instructs systems as to how information should be interpreted and used.
,3) ++++++++ is an J6>based specification for publishing financial information.
A) (%tensible -ights 6arkup >anguage
B) (%tensible Application 6arkup >anguage
$) (%tensible Access $ontrol 6arkup >anguage
&) (%tensible Business -eporting >anguage
() (nterprise 6ashup 6arkup >anguage
,4) ++++++++ includes tags for data such as annual and 0uarterly reports, 7ecurities and
(%change $ommission filings, general ledger information, and net re"enue and accounting
schedules.
A) (%tensible Application 6arkup >anguage
B) (%tensible Business -eporting >anguage
$) (%tensible Access $ontrol 6arkup >anguage
&) (nterprise 6ashup 6arkup >anguage
() (%tensible -ights 6arkup >anguage
,5) >ee's department store uses the e"ery day low prices strategy. /his strategy hinges upon the
store's ability to obtain consumer goods at the cheapest possible price and pass these sa"ings on
to consumers. >ee's store also de"eloped its own distribution network for supplying its retail
outlets with consumer goods. /his distribution network allowed them to cut out e%ternal
suppliers and middlemen, further dri"ing down business costs. /his implies that the competiti"e
strategy used by this store would most likely focus on ++++++++.
A) supply chain efficiency
B) supply chain "isibility
$) supply chain effecti"eness
&) operational $-6
() analytical $-6
,8) $omptel, a world leader in computer hardware, differentiates itself from its customers by
pro"iding e%cellent aftersales ser"ice. /his implies that the competiti"e strategy used by
$omptel would most likely focus on ++++++++.
A) supply chain analytics
B) supply chain "isibility
$) supply chain effecti"eness
&) supply network collaboration
() supply chain efficiency
.9) ++++++++ uses the electromagnetic energy to transmit information between a reader
2transcei"er) and a processing de"ice.
A) -adio fre0uency identification
B) Aigh capacity color barcode
$) Interferometric modulator display
&) ;hotonic computing
() (lectronic product code
.1) ++++++++ can be used #ust about anywhere a uni0ue identification system might be needed,
such as on clothing, pets, cars, keys, missiles, or manufactured parts.
A) A/6> tags
B) -<I& tags
$) 7pintronics
&) J6> tags
() Aigh capacity color barcode
.)) Which of the following statements is true about -<I& systems?
A) -<I& scanning can be done at greater distances than bar code scanning.
B) -<I& information is readable depending on the entity's position.
$) -<I& tags contain less information than bar codes.
&) All -<I& tags are small and relati"ely ine%pensi"e.
() -<I& re0uires timeconsuming hand scanning.
.,) Which of the following statements about an -<I& passi"e tag is true?
A) /hey are small and ine%pensi"e.
B) /hey ha"e a range up to ,99 feet or more.
$) /hey cost more than acti"e tags.
&) /hey ha"e an internal battery source.
() /hey typically cost about I19.
..) Which of the following statements about an -<I& acti"e tag is true?
A) /hey are ine%pensi"e, with the starting price being 19 cents.
B) /hey ha"e a range up to .9 feet.
$) /hey are small compared to passi"e tags.
&) /hey ha"e an internal battery source.
() /hey are less e%pensi"e as compared to passi"e tags.
.1) Which of the following is a main ob#ecti"e of customer relationship management
applications focusing on downstream information flows?
A) to track global spend by supplier
B) to encourage bullwhip effect
$) to de"elop demand forecasts
&) to portray a positi"e corporate image
() to collaborate demand and production planning
.3) Which of the following portrays the indi"iduali!ed ser"ice benefit of a $-6 system?
A) >earning how each customer defines product and ser"ice 0uality so that customi!ed product,
pricing, and ser"ices can be designed or de"eloped collaborati"ely.
B) Webbased interfaces pro"iding product information, sales status, support information, issue
tracking, and so on.
$) Integrating all information for all points of contact with the customers, so that all who interact
with customers ha"e the same "iew and understand current issues.
&) Integrated information remo"ing information handoffs, which speeds both sales and support
processes.
() Impro"ed record keeping and efficient methods of capturing customer complaints helping to
identify and sol"e problems faster.
.4) Which of the following rightly e%plains impro"ed product de"elopment on using a $-6
system?
A) >earning how each customer defines product and ser"ice 0uality so that customi!ed product,
pricing, and ser"ices can be designed or de"eloped collaborati"ely.
B) Webbased interfaces that pro"ide product information, sales status, support information,
issue tracking, and so on.
$) Integrated information that remo"es information handoffs, speeding both sales and support
processes.
&) Impro"ed record keeping and efficient methods of capturing customer complaints that assist
in identifying problems faster.
() /racking customer beha"ior o"er time that helps to identify future opportunities for product
and ser"ice offerings.
.5) Which of the following e%amples portray the ).K4K,31 operation of a $-6 system?
A) Webbased interfaces that pro"ide product information, sales status, support information,
issue
tracking, and so on.
B) Impro"ed record keeping and efficient methods of capturing customer complaints that assist
in
identifying problems faster.
$) /racking customer beha"ior o"er time that helps to identify future opportunities for product
and
ser"ice offerings.
&) Integrated information that remo"es information handoffs, speeding both sales and support
processes.
() >earning how each customer defines product and ser"ice 0uality so that customi!ed product,
pricing, and ser"ices can be designed or de"eloped collaborati"ely.
.8) Which of the following rightly e%plains impro"ed planning on using a $-6 system?
A) Impro"ed record keeping and efficient methods of capturing customer complaints that assist
in identifying problems faster.
B) >earning how each customer defines product and ser"ice 0uality so that customi!ed product,
pricing, and ser"ices can be designed or de"eloped collaborati"ely.
$) ;ro"iding mechanisms for managing and scheduling sales followups to assess satisfaction,
repurchase probabilities, time frames, and fre0uencies.
&) /racking customer beha"ior o"er time that helps to identify future opportunities for product
and
ser"ice offerings.
() Integrated information that remo"es information handoffs, speeding both sales and support
processes.
19) ++++++++ includes the systems used to enable customer interaction and ser"ice.
A) :perational $-6
B) Integrated $-6
$) $ollaborati"e $-6
&) &ata warehouse
() Analytical $-6
11) ++++++++ help create the mass email marketing campaigns wherein each consumer recei"es
an indi"iduali!ed email based on their prior purchase history.
A) &ata warehouses
B) :perational $-6 systems
$) Analytical $-6 systems
&) Integrated $-6 systems
() $ollaborati"e $-6 systems
1)) Which of the following is a component of the operational $-6 system?
A) sales force automation
B) data warehouses
$) (-; systems
&) data mining and "isuali!ation
() business intelligence
1,) Which of the following is a component of the analytical $-6 system?
A) enterprise marketing management
B) sales force automation
$) technologies to facilitate communication
&) data mining and "isuali!ation
() customer ser"ice and support
1.) Which of the following is a component of the collaborati"e $-6 system?
A) sales force automation
B) data mining and "isuali!ation
$) enterprise resource planning systems
&) enterprise marketing management
() technologies to facilitate communication
11) ++++++++ is the first component of an operational customer relationship management that
supports a broad range of business processes, including account and contact management,
territory management, and order processing and tracking.
A) (nterprise marketing management
B) 7ales force automation
$) &ata warehouse
&) (%ecution management
() $ustomer ser"ice and support
13) Which of the following best e%plains impro"ed morale of sales personnel due to sales force
management systems?
A) $ustomer contact information being recorded using eforms that automatically pro"ide
known customer data.
B) $ommon systems ensuring that sales personnel follow common processes and procedures.
$) Impro"ed training and less *busywork*allowing a greater focus on selling and re"enue
generation.
&) 7haring of all salesrelated information facilitating successful team selling.
() (forms ensuring that customer data is automatically entered.
14) ++++++++ refers to systems that automate complaints, product returns, and information
re0uests, among others.
A) &ata warehouse
B) (nterprise marketing management
$) $ustomer ser"ice and support
&) (%ecution management
() 7ales force automation
15) Which of the following ad"antages accruing to sales personnel can be attributed to sales
force management?
A) better planning
B) better sales force tracking
$) better forecasts
&) impro"ed teamwork
() impro"ed scheduling
18) Which of the following best e%plains impro"ed information for sales managers on account of
sales force management systems?
A) sales performance data automatically tabulated and presented in easytounderstand tables,
charts, and graphs
B) streamlined selling processes and impro"ed communications that allow sales managers to
focus more on nonselling acti"ities
$) common systems ensuring that sales managers follow common processes and procedures
&) impro"ed training and less *busywork*allows a greater focus on selling and re"enue
generation
() sharing of all salesrelated information facilitates successful team selling and the sharing of
best practices
39) ++++++++ refers to using multiple communication channels to support the communication
preferences of users, such as the Web, the company's <acebook page, industry blogs, telephone
and so on.
A) Business intelligence
B) $ustomer interaction center
$) (nterprise marketing management
&) (%ecution management
() 7ales force automation
31) ++++++++ tools help a company in the e%ecution of the $-6 strategy by impro"ing the
management of promotional campaigns.
A) Business intelligence
B) 7ales force automation
$) (nterprise marketing management
&) $ustomer interaction center
() (%ecution management
3)) ++++++++ focuses on studying customer beha"ior and perceptions in order to pro"ide the
business intelligence necessary to identify new opportunities and to pro"ide superior customer
ser"ice.
A) Analytical $-6
B) 7ales force automation
$) :perational $-6
&) $ollaborati"e $-6
() Integrated $-6
3,) :rgani!ations that effecti"ely utili!e ++++++++ can more easily customi!e marketing
campaigns from the segment le"el to e"en the indi"idual customer.
A) operational $-6
B) integrated $-6
$) analytical $-6
&) collaborati"e $-6
() sales force automation
3.) Which of the following business processes can be enhanced by the analytical $-6 system?
A) sales forecasting and performance analyses
B) account and contact management
$) price, 0uality, and satisfaction analysis of competitors
&) customer history and preferences management
() order processing and tracking
31) ++++++++ refers to systems for pro"iding effecti"e and efficient communication with the
customer from the entire organi!ation.
A) Analytical $-6
B) 7ales force automation
$) $ollaborati"e $-6
&) :perational $-6
() Business intelligence
33) ++++++++ facilitate the sharing of information across the "arious departments of an
organi!ation in order to increase customer satisfaction and loyalty.
A) $ollaborati"e $-6 systems
B) &ata warehousing systems
$) :perational $-6 systems
&) Analytical $-6 systems
() &ata mining systems
Chapter (: )e&eloping and *c+!iring Information Systems
1) Which of the following statements best describes the producti"ity parado% for technology
in"estment?
A) /he producti"ity of any technology is directly proportional to the in"estment in that
technology.
B) While it is easy to 0uantify the costs associated with de"eloping an information system, it is
often difficult to 0uantify tangible producti"ity gains from its use.
$) As in"estment in technology increases, producti"ity decreases steadily.
&) While it is easy to identify and 0uantify the intangible benefits of an information system, it is
not easy to 0uantify the tangible benefits.
() /he producti"ity of an information system is in no way related to the in"estment in the
technology.
)) 7ystem efficiency is the e%tent to which a system ++++++++.
A) allows firms to reach their operational targets
B) allows people to plan tasks that are achie"able
$) enables people to accomplish goals or tasks well
&) enables people to do things faster or at lower cost
() allows employees to reduce the risks associated with tasks
,) Which of the following is true for system effecti"eness?
A) It is the e%tent to which a system enables the firm to accomplish goals well.
B) It is the e%tent to which a system allows a firm to plan its tasks.
$) It is the e%tent to which a system enables the firm to do things faster, at lower cost.
&) It is the e%tent to which a system allows a firm to cut operational costs.
() It is the e%tent to which a system enables people to accomplish tasks with relati"ely little time
and effort.
.) Which of the following scenarios demonstrates system efficiency?
A) Barker's new information system allowed the company to reach its monthly targets.
B) Barker's was able to easily reach its sales goals through the use of its information system.
$) Barker's new information system allowed the company to set achie"able targets.
&) Barker's new information system helped employees to achie"e their indi"idual goals
alongside the company's goals.
() /he new information system at Barker's helped employees work faster, with less effort.
1) BelAir /ech replaced its outdated information system with a newer "ersion. As a result, its
employees reported a significant increase in work speed. Which of the following is most similar
to BelAir's situation?
A) Barker's new information system allowed the company to reach its monthly sales target
easily.
B) /wining $o. targeted a 1 percent increase in customer ac0uisition and achie"ed this with the
new information system.
$) (mployees at ?i"en >td felt that customer satisfaction increased after the new information
system was implemented.
&) $astle's new information system helped employees to achie"e their indi"idual goals alongside
the company's goals.
() At 7terling Inc, the a"erage number of application forms processed in an hour rose from . to
3 as a result of the new system.
3) BLM Inc. implemented a new information system two months ago but there ha"e been no
concrete increases in producti"ity as a result of the system. A similar system has been in place at
the company head0uarters for the past two years, and this system has resulted in significant,
0uantifiable benefits. Which of the following reasons is the most likely e%planation for the lack
of results?
A) /he benefits of the new information system are difficult to pinpoint because the firm is
considering the wrong indicators.
B) /he new system is being used to redistribute market share rather than make the whole market
bigger.
$) It can take years from the first implementation of this new system before the magnitude of
benefits is felt by the organi!ation.
&) /he benefits of the new information system are difficult to pinpoint because the firm is not
familiar with the working of the system.
() /he new system may be beneficial for indi"idual firms but not for a particular industry or the
economy as a whole.
4) Business case arguments based on ++++++++ focus on beliefs about organi!ational strategy,
competiti"e ad"antage, industry forces, customer perceptions, market share, and so on.
A) faith
B) fear
$) facts
&) fiction
() fallacy
5) Business case arguments based on fear are based on ++++++++.
A) the belief that implementing the new information system can ha"e significant positi"e
conse0uences for the firm
B) beliefs about organi!ational strategy, competiti"e ad"antage, industry forces, customer
perceptions, market share, and so on
$) data, 0uantitati"e analysis, andKor indisputable factors
&) the notion that if the system is not implemented, the firm will lose out to the competition or
go out of business
() the results of a 0ualitati"e analysis of employee responses to the new information system
8) Business case arguments based on data, 0uantitati"e analysis, andKor indisputable factors are
known as arguments based on ++++++++.
A) fads
B) faith
$) facts
&) fear
() fiction
19) Which of the following is an e%ample of a business case argument based on fear?
A) If we do not implement this system, our competitors could gain a significant ad"antage o"er
us.
B) /his system has the potential to reduce re0uired effort by .9 percent.
$) Gsing this system will help our employees ser"e customers more efficiently.
&) /he system can help us meet both indi"idual as well as organi!ational goals.
() /he new system is userfriendly and can be implemented almost immediately.
11) /he total cost of ownership of a system refers to ++++++++.
A) all nonrecurring costs associated with a system
B) all costs associated with ongoing use and maintenance of a system
$) the total cost of ac0uisition of a particular system
&) the total cost of ac0uisition and all costs associated with use and maintenance of a system
() only the recurring costs associated with a system
1)) Which of the following is an e%ample of a recurring cost associated with an information
system?
A) installation charges
B) purchase of office space
$) employee salaries
&) technology purchases
() cost of system ac0uisition
1,) Which of the following is an e%ample of an intangible cost for a system?
A) cost of losing customers
B) employee salaries
$) cost of installation and maintenance
&) cost of employee recruitment and retention
() customer support costs
1.) BelAir /ech is conducting a costbenefit analysis for its I7 department. In this, the salary of
an employee is an e%ample of a2n) ++++++++.
A) intangible and tangible cost
B) tangible and recurring cost
$) intangible and recurring cost
&) tangible and nonrecurring cost
() recurring and nonrecurring cost
11) Which of the following is true for tangible costs?
A) /hey are only recurring costs.
B) /hey are always nonrecurring costs.
$) /hey are relati"ely easy to 0uantify.
&) /hey are the same as intangible benefits.
() /hey are difficult to 0ualify.
13) BelAir /ech implements a new information system and sees a 1 percent increase in monthly
sales after implementation. /his is a2n) ++++++++ of the system.
A) intangible benefit
B) tangible cost
$) tangible benefit
&) recurring cost
() nonrecurring cost
14) *Increased customer reach of the new Webbased system will result in at least a modest
increase in sales.* /his statement represents ++++++++ for the company.
A) a recurring cost
B) an intangible cost
$) a tangible benefit
&) a nonrecurring cost
() an intangible benefit
15) Which of the following is an e%ample of an intangible benefit for a firm?
A) lower transport and operational costs
B) a significant increase in sales
$) a reduction in operational errors
&) cost reductions as compared to pre"ious data
() impro"ed customer perceptions of the firm
18) A breake"en analysis ++++++++.
A) identifies at what point tangible benefits e0ual tangible costs
B) analy!es the rele"ant cash flow streams associated with the system at the organi!ation's
discount rate
$) refers to the discounted sum, or present "alue, or a stream of costs associated with a pro#ect or
proposal
&) attempts to summari!e the o"erall "alue for money of a pro#ect or proposal
() is the rate of return used by an organi!ation to compute the present "alue of future cash flows
)9) A method for deciding among different I7 in"estments or when considering alternati"e
designs for a gi"en system is ++++++++.
A) transactional analysis
B) weighted multicriteria analysis
$) finite element analysis
&) independent component analysis
() link 0uality analysis
)1) ++++++++ are alternati"e measures of outcomes that can help clarify what the impact of a
change will be for a firm.
A) ;ro%y "ariables
B) ;seudocodes
$) ;atches
&) ;rototypes
() ;rotocols
))) Which of the following is the main ad"antage of customi!able software o"er offtheshelf
software?
A) cost effecti"eness
B) ease of procurement
$) problem specificity
&) lower risks
() userfriendliness
),) /he first phase of the systems de"elopment life cycle is ++++++++.
A) systems design
B) systems implementation
$) systems analysis
&) systems planning and selection
() systems operation
).) &uring the first phase of the systems de"elopment life cycle, organi!ations ++++++++.
A) transform the system design into a working information system
B) identify, plan, and select a de"elopment pro#ect from all possible pro#ects that could be
performed
$) gain a thorough understanding of an organi!ation's current way of doing things in the area for
which the new information system will be constructed
&) elaborate on the details of the chosen approach and design the system
() decommission the current way of doing things and install the new system in the organi!ation
)1) /he final phase of the systems de"elopment life cycle is ++++++++.
A) systems design
B) systems implementation
$) systems analysis
&) systems maintenance
() systems operation
)3) -e0uirements collection takes place during the ++++++++ phase of the systems de"elopment
life cycle.
A) systems design
B) systems implementation
$) systems analysis
&) systems maintenance
() systems operation
)4) ++++++++ is the process of gathering and organi!ing information from users, managers,
customers, business processes, and documents to understand how a proposed information system
should function.
A) &ata modeling
B) -e0uirements collection
$) Beta testing
&) (nduser de"elopment
() (%ternal ac0uisition
)5) ++++++++ is a group meetingbased process for re0uirements collection.
A) Foint application design
B) $omputeraided design
$) Aumancomputer interface
&) -e"erse engineering
() /otal ownership
)8) ++++++++ represent2s) the mo"ement of data through an organi!ation or within an
information system.
A) &ata entities
B) &ata flu%
$) &ata attributes
&) &ata flows
() &ata modeling
,9) ++++++++ represents the way in which data are transformed.
A) &ata parallelism
B) ;rocessing logic
$) &ata streaming
&) ;rocess control
() /ransaction processing
,1) ;rocessing logic is often e%pressed in ++++++++, which is independent of the actual
programming language being used.
A) semantics encoding
B) prefi% code
$) source code
&) semiotics
() pseudocode
,)) After systems analysis, the ne%t phase in the systems de"elopment life cycle is ++++++++.
A) systems implementation
B) systems operation
$) systems planning
&) systems maintenance
() systems design
,,) In an information system, a ++++++++ is the point of contact between a system and users.
A) biointerface
B) network interface
$) pointtopoint link
&) humanCcomputer interface
() data link
,.) A ++++++++ is a business document containing some predefined data, often including some
areas where additional data can be filled in.
A) form
B) script
$) sheet
&) report
() module
,1) A ++++++++ is a business document containing only predefined data for online "iewing or
printing.
A) form
B) script
$) sheet
&) report
() module
,3) /he processing and logic operations of an information system refer2s) to ++++++++.
A) the procedures for entering data into a system
B) the transfer of data across system components
$) the procedures that transform raw data inputs into new or modified information
&) the multiple points of contact between a system and users
() the process of transforming the system design into a working computer system
,4) 7oftware programming and testing takes place during the ++++++++ stage of the systems
de"elopment process.
A) systems planning
B) systems analysis
$) systems maintenance
&) systems implementation
() systems design
,5) Which of the following best describes de"elopmental testing?
A) testing the correctness of indi"idual modules and the integration of multiple modules
B) testing the system to see if it meets design re0uirements
$) testing of the capabilities of the system in the user en"ironment with actual data
&) testing the system as a whole to see if it performs ade0uately
() testing the system in an e%perimental conte%t using sample data
,8) ++++++++ testing is testing of the o"erall system to see whether it meets design re0uirements.
A) &e"elopmental
B) Beta
$) ("olutionary
&) Alpha
() $omparati"e
.9) Fason has #ust made some changes to the information system at BelAir /ech and wants to
check if the system is working correctly. Ae wants to conduct a beta test of the system. Which of
the following should he do to achie"e this?
A) Ae should ask other programmers to check the modules he changed.
B) Ae should check to see if the changed components are integrated well into the system.
$) Ae should ask users of the system to test it using actual data.
&) Ae should ask the software tester to test if the changed system meets design re0uirements.
() Ae should test the changed modules for correctness.
.1) ++++++++ testing in"ol"es testing of the capabilities of the system in the user en"ironment
with actual data.
A) &e"elopmental
B) Beta
$) ("olutionary
&) Alpha
() $omparati"e
.)) &e"elopmental testing of an information system is performed by ++++++++.
A) software testers
B) actual users
$) programmers
&) systems analysts
() pro#ect managers
.,) ++++++++ testing is performed by actual users of the system.
A) &e"elopmental
B) Beta
$) ("olutionary
&) Alpha
() $omparati"e
..) Which of the following can be considered beta testing?
A) A programmer at >inus 7ystems checks the integration of multiple modules of an information
system.
B) 7oftware testers compare the finished system against user re0uirements to see if it satisfies all
necessary criteria.
$) /aro Inc. checks the correctness of the modules of its new information system.
&) 7ystem users at G-; feed data into a new information system to test its capability.
() 6?; Inc. checks the system to ensure that it meets all the necessary design re0uirements.
.1) ;rogramming is the process of ++++++++.
A) transforming the system design into a working computer system
B) testing the correctness of indi"idual modules of a system
$) testing the integration of multiple modules of a system
&) transforming raw data inputs into new or modified information
() gathering and organi!ing information from users and managers
.3) ++++++++ is the process of decommissioning the current way of doing things and installing
the new system in the organi!ation.
A) -e"erse engineering
B) 7ystem programming
$) Adapti"e maintenance
&) ;atch management
() 7ystem con"ersion
.4) Which of the following is true for patch management?
A) It helps in testing the correctness of indi"idual modules and the integration of multiple
modules of a system.
B) It helps in the process of transforming the system design into a working computer system.
$) It helps in performing correcti"e or pre"enti"e maintenance for a system.
&) It helps in decommissioning the current system and installing the new system in the
organi!ation.
() It helps to de"elop system documentation that details the inner workings of the system to ease
future maintenance.
.5) ++++++++ use the Internet to check the software "endor's Web site for a"ailable fi%es for
problems. /he application downloads and installs these in order to fi% software flaws.
A) Alpha testing systems
B) ;ro%y "ariables
$) Benchmarking systems
&) ;atch management systems
() Workarounds
.8) /he process of making changes to an information system to repair flaws in design, coding, or
implementation is known as ++++++++.
A) adapti"e maintenance
B) perfecti"e maintenance
$) pre"enti"e maintenance
&) correcti"e maintenance
() predicti"e maintenance
19) /he process of making changes to an information system to e"ol"e its functionality, to
accommodate changing business needs, or to migrate it to a different operating en"ironment is
known as ++++++++.
A) adapti"e maintenance
B) perfecti"e maintenance
$) pre"enti"e maintenance
&) correcti"e maintenance
() predicti"e maintenance
11) Which of the following types of system maintenance in"ol"es making enhancements to
impro"e processing performance or interface usability?
A) adapti"e maintenance
B) perfecti"e maintenance
$) pre"enti"e maintenance
&) correcti"e maintenance
() predicti"e maintenance
1)) ;re"enti"e maintenance of a system in"ol"es ++++++++.
A) making changes to an information system to repair flaws in the design
B) making enhancements to impro"e processing performance or interface usability
$) making changes to a system to reduce the chance of future system failure
&) adding desired but not necessarily re0uired system features
() making changes to an information system to accommodate changing business needs
1,) BelAir /ech has a fi"emember team in charge of the de"elopment and maintenance of its
information systems. An information system is in place, and the team performs routine
maintenance to keep it running smoothly. Which of the following scenarios is an e%ample of
perfecti"e maintenance?
A) Fason notices a faulty component in the system and modifies the component.
B) Fustin works on the system to make the user interface more userfriendly.
$) 7ara knows that the company is migrating to a different operating en"ironment in the ne%t
month, and makes changes to the system.
&) &ylan predicts that the company's old system may fail under new demands, and takes steps to
a"ert this.
() @iera detects a fault in the coding, which is hampering system performance, and rectifies it.
1.) BelAir /ech has a fi"emember team in charge of de"elopment and maintenance of its
information systems. An information system is in place, and the team performs routine
maintenance to keep it running smoothly. Which of the following scenarios is an e%ample of
adapti"e maintenance?
A) Fason notices a faulty component in the system and modifies the component.
B) Fustin works on the system to make the user interface more userfriendly.
$) 7ara knows that the company is migrating to a new operating en"ironment in the ne%t month,
and makes the appropriate changes to the system.
&) &ylan predicts that the company's old system may fail under new demands, and takes steps to
a"ert this.
() @iera detects a fault in the coding, which is hampering system performance, and rectifies it.
11) Which of the following is true for prototyping?
A) It is a part of the fourth stage of the systems de"elopment life cycle.
B) It is synonymous with adapti"e maintenance of a system.
$) It does not consider user re0uirements for the system.
&) It uses a trialanderror approach for disco"ering how a system should operate.
() It is also known as enduser de"elopment.
13) BelAir /ech needs a new information system to manage increasing customer orders and
changing demands. /he company's fi"emember I7 team is competent and capable of de"eloping
a new system, but BelAir decides against de"eloping a system inhouse. Which of the following,
if true, would most weaken BelAir's decision?
A) /he company's preferred "endor is willing to pro"ide a basic information system at a reduced
rate.
B) /he company's I7 team is shortstaffed and is finding it difficult to cope with increased work.
$) /he costs of outsourcing systems de"elopment are greater than those of adapting an offthe
shelf system.
&) /he company's I7 department has the 0ualifications to de"elop the new system.
() /he company's re0uirements for the new system are "ery speciali!ed.
14) Which of the following steps takes place in an organi!ation during both inhouse systems
de"elopment as well as e%ternal ac0uisition?
A) "endor selection
B) systems selection
$) systems analysis
&) de"elopment of an -<;
() proposal e"aluation
15) BelAir has decided to buy an information system from an e%ternal "endor. /he company has
made a list of its re0uirements and asked prospecti"e "endors to submit proposals for the system.
Which of the following is the ne%t step in the company's e%ternal ac0uisition process?
A) systems planning
B) systems analysis
$) "endor selection
&) proposal e"aluation
() system installation
18) Which of the following statements is true for a re0uest for proposal?
A) It is a form sent by "endors to potential customers.
B) It re0uests "endors to pro"ide a complete list of all their products.
$) It in"ites customers to bid for a product offered by a "endor.
&) It is a summary of the "endor's offerings to a client.
() It is a list of user re0uirements sent to prospecti"e "endors.
39) ++++++++ is the use of standardi!ed performance tests to facilitate comparison between
systems.
A) Beta testing
B) 7ystems benchmarking
$) &ata modeling
&) 7ystems prototyping
() Alpha testing
31) BelAir has submitted a re0uest for proposal to a number of "endors. It must now e"aluate the
proposals it has recei"ed. Which of the following methods can it use to compare the different
systems?
A) systems benchmarking
B) alpha testing
$) data modeling
&) beta testing
() prototyping
3)) ++++++++ licenses are acti"ated as soon as the packaging of the software has been remo"ed.
A) $lickwrap
B) 7hareware
$) 7hrinkwrap
&) Bolume
() Implied
3,) A2n) ++++++++ license refers to a license primarily used for downloaded software that
re0uires computer users to choose *I accept*before installing the software.
A) click wrap
B) shareware
$) enterprise
&) "olume
() implied
3.) An enterprise license is also known as a2n) ++++++++ license.
A) shrinkwrap
B) "olume
$) clickwrap
&) shareware
() implied
31) Which of the following is true for software as a ser"ice?
A) It is not scalable in response to large increases in demand.
B) It in"ol"es fi%ed monthly and yearly costs for the ser"ices.
$) It re0uires the installation of speciali!ed interfaces at the client end.
&) It allows clients to access ser"ices on an asneeded basis.
() It re0uires an organi!ation to maintain and de"elop the software.
33) BelAir /ech has de"eloped and run its own information system for the past ten years.
Aowe"er, the company has now decided to outsource its I7 function to a ser"ice pro"ider. Which
of the following, if true, will strengthen BelAir's decision?
A) BelAir's I7 team de"eloped the e%isting system from scratch and has ironed out most faults
o"er the years.
B) /he ser"ice pro"ider is highly recommended by its other clients.
$) 6ost BelAir employees are familiar with the current information system.
&) BelAir has seen a fall in company re"enue o"er the last year.
() :utsourcing its I7 function did not benefit BelAir's competitor, Amis 7ystems.
34) Which of the following is an e%ample of a basic relationship between an outsourcing "endor
and client?
A) 7/7 7ystems usually offers BelAir a discount on e"ery purchase it makes.
B) BelAir sets its system preferences according to 7/7 products.
$) BelAir buys a system from the "endor who offers the cheapest prices.
&) 7/7 has a direct stake in the success of BelAir's performance.
() 7/7 modifies its product prices according to BelAir's re0uirements.
Chapter ,-: Sec!ring Information Systems
1) A group of ine%perienced computer operators cause the loss of "aluable information. /his
information loss can be classified as one caused due to ++++++++.
A) natural disasters
B) interactions with consultants
$) accidents
&) links to outside contacts
() e%ternal forces
)) Which of the following is the most complete definition of a computer crime?
A) the act of using a computer to commit an illegal act
B) processing pri"ate information from an official computer system
$) unauthori!ed use of a computer de"ice or patented software
&) stealing of computer de"ices or software licenses
() unauthori!ed access of passwords and personal information
,) Which of the following is one of the main federal laws in the Gnited 7tates against computer
crimes?
A) 7atellite Act of 183)
B) /rade (%pansions Act of 183)
$) Gnited 7tates Information and (ducational (%change Act
&) $entral Intelligence Agency Act
() (lectronic $ommunications ;ri"acy Act of 1853
.) /he $omputer <raud and Abuse Act of 1853 prohibits ++++++++.
A) accessing company email or other such confidential information from public computers
B) threatening to damage computer systems in order to e%tort money or other "aluables
$) the use of encoded chips to pro"ide access to companies' confidential information
&) contracting with consultants outside the Gnited 7tates to process key information
() gaining access to "oicerelated communications for in"estigation or any other purpose
1) Which of the following G7 laws amended the $omputer <raud and Abuse Act to allow
in"estigators access to "oicerelated communications?
A) the (lectronic $ommunications ;ri"acy Act
B) the $omputer Abuse Amendments Act
$) the G7A ;atriot Act
&) the <oreign Intelligence 7ur"eillance Act
() the <amily (ducational -ights and ;ri"acy Act
3) Which of the following acts ha"e made it a crime to break into any electronic communications
ser"ice, including telephone ser"ices?
A) the (lectronic $ommunications ;ri"acy Act
B) the <oreign Intelligence 7ur"eillance Act
$) the $omputer <raud and Abuse Act
&) the G7A ;atriot Act
() the <amily (ducational -ights and ;ri"acy Act
4) Biolating data belonging to banks or other financial institutions is a crime in the Gnited 7tates.
Which of the following legislations prohibit such "iolations?
A) the <oreign Intelligence 7ur"eillance Act
B) the $omputer <raud and Abuse Act
$) the G7A ;atriot Act
&) the Banking -ights and ;ri"acy Act
() the (lectronic $ommunications ;ri"acy Act
5) 7ome "iolations of state and federal computer crime laws are punishable by fines and by not
more than one year in prison. 7uch "iolations are charged as ++++++++.
A) misdemeanors
B) felonies
$) federal crimes
&) indictments
() record sealings
8) 7ome computer criminals attempt to break into systems or deface Web sites to promote
political or ideological goals. /hey are called ++++++++.
A) hackti"ists
B) crackers
$) ethical hackers
&) patriot hackers
() cyber soldiers
19) /oday, people who break into computer systems with the intention of doing damage or
committing a crime are usually called ++++++++.
A) hackers
B) hackti"ists
$) patriot hackers
&) cyber soldiers
() crackers
11) Wiki>eaks is a famous notforprofit whistleblowing Web site. 6aster$ard and Bisa
stopped payments to Wiki>eaks after a series of leaks by the site. An anonymous group attacked
the Web sites of both 6aster$ard and Bisa reacting to this. /hese attackers, who tried to protect
Wiki>eaks, can be called ++++++++.
A) hackti"ists
B) crackers
$) ethical hackers
&) patriot hackers
() cyber soldiers
1)) (mployees steal time on company computers to do personal business. /his can be considered
an e%ample of ++++++++.
A) unauthori!ed access
B) hacking
$) Web "andalism
&) cyberstalking
() cyberbullying
1,) A2n) ++++++++ is a destructi"e program that disrupts the normal functioning of computer
systems.
A) "irus
B) worm
$) /ro#an horse
&) spam
() adware
1.) In 6ay )999, a malware email with *I >:B( N:G*in the sub#ect field, spread to numerous
computers in the world. /he program replicated itself to e"eryone in the user's :utlook address
book and then destroyed local files. /his lo"e email forced se"eral organi!ations to shut down
their email systems. /he malware discussed here is an e%ample of a ++++++++.
A) /ro#an horse
B) spyware
$) computer "irus
&) spam
() logic bomb
11) -onald downloads a mo"ie from the Internet. &uring this process, his system gets affected
by malicious software. /he file does nothing initially and his system functions as usual for a few
days. >ater the file reproduces itself and starts to slow down his system. In a month's time his
system is fully affected by the malware. Which of the following is most similar to the situation
described here?
A) Albert "isits a tra"el Web site to book a flight from ?ew Nork to >os Angeles. Ae "isits the
Web site from his computer after 11 days and his home page is set by default to book return
tickets from >os Angeles to ?ew Nork.
B) 6ary's computer gets affected by malicious software. Aer computer appears to be performing
as usual though the malware is performing underlying functions dictated by the intrusi"e code.
$) Andrew uses Windows operating system. A malicious code affects his computer and changes
the name of his Internet e%plorer to AB$ ?et. /he malware steals his personal information by
remaining as a host.
&) -obert recei"es a mail with the sub#ect line *I am here.* When he opens the mail, he loses all
the local files and the file is sent to all the contacts in his outlook I&.
() Anderson recei"es a malware file through email. :n Fanuary 1st, the malware alters the name
of his local files and displays funny names.
13) A2n) ++++++++ is a "ariation of a "irus that is targeted at networks and takes ad"antage of
security holes in operating systems and other software to replicate endlessly across the Internet.
/his causes ser"ers to crash and denies ser"ice to Internet users.
A) spyware
B) worm
$) "irus
&) /ro#an horse
() &:7 "irus
14) /he official Web site of the Iranian go"ernment was made unreachable by foreign acti"ists
seeking to help the opposition parties during the )998 Iranian election protests. Web sites
belonging to many Iranian news agencies were also made unreachable by the acti"ists. /his
cyber protest is an e%ample of a2n) ++++++++ attack.
A) denial of ser"ice
B) logic bombs
$) /ro#an horse
&) online predator
() bot herder
15) ++++++++ refers to any software that co"ertly gathers information about a user through an
Internet connection without the user's knowledge.
A) 7pyware
B) 7pam
$) Web filter
&) $ookie
() Bot herder
18) Which of the following terms represents #unk newsgroup postings used for the purpose of
ad"ertising for some product or ser"ice?
A) spam
B) adware
$) cookie
&) Internet hoa%
() Web filter
)9) -obert recei"es a mail which says he has won an online lottery worth I19 Billion. -obert
was wondering how he could win it without e"en buying the lottery. It was a spam mail intended
to obtain the bank account details and the credit card number of -obert. 7uch attempts to trick
financial account and credit card holders are called ++++++++.
A) logic bombing
B) spim hacking
$) phishing
&) tunneling
() cyberterrorism
)1) ;hishing refers to the ++++++++.
A) attempts to trick financial account and credit card holders into gi"ing away their authori!ation
information
B) process of causing system instability or system crashes to steal information from client
computers across a network
$) practice of pro"iding free software paid for by ad"ertisements appearing during the use of the
software
&) act of flooding customers with unwanted information, images, and other marketable
information
() process of installing a software in the customers' browser to e%tract personal information of
users
))) Which of the following is a message passed to a Web browser on a user's computer by a Web
ser"er?
A) cookie
B) botnet
$) honeypot
&) spim
() spam
),) When using Nahoo 6essenger, you get an unsolicited ad"ertisement from a company. /his
ad"ertisement contained a link to connect to the merchant's Web site. Which of the following is
the best way of classifying this ad"ertisement?
A) Adware
B) $ookie
$) Internet hoa%
&) 7pim
() cyber s0uat
).) Which of the following is the most accurate definition of a botnet?
A) group of hackers working together to obtain unauthori!ed access to a system or network
B) spider software used by a search algorithm to crawl "arious Web sites to return a 0uery
$) group of destructi"e softwares working independently to achie"e a common goal
&) a common platform used by search engines to inde% the contents of a Web site
() destructi"e software robots, working together on a collection of !ombie computers "ia the
Internet
)1) A hacker takes an indi"idual's social security number, credit card number, and other personal
information for the purpose of using the "ictim's credit rating to borrow money, buy
merchandise, and otherwise run up debts that are ne"er repaid. /his practice is called ++++++++.
A) identity theft
B) cyberstalking
$) cyberbullying
&) internet spamming
() internet hoa%ing
)3) ++++++++ are false messages often circulated online about new "iruses, earth0uakes E kids in
troubleE cancer causesE or any other topic of public interest.
A) Internet hoa%es
B) Aoneypots
$) $ookies
&) >ogic bombs
() 6alware
)4) Arbitron consultants, a leading software consulting firm in the Gnited 7tates, decide to
launch (-; an (-; 7olution. /he company chooses the brand name Arbit(nterprise for the new
solution. Aowe"er, when the company attempted to register the domain name, it found that the
domain name was registered to an unknown firm. /he small firm is now attempting to sell the
domain name to Arbitron. Which of the following terms refers to this practice of buying a
domain name only to sell it for big bucks?
A) cybers0uatting
B) logic bombing
$) cyberbullying
&) hot backing up
() cyberstalking
)5) Identify the term that represents the dubious practice of registering a domain name and then
trying to sell the name for big bucks to the person, company, or organi!ation most likely to want
it.
A) cybers0uatting
B) cyberstalking
$) cyberbullying
&) cyberwar
() cyberharassment
)8) $yber criminals gain information on a "ictim by monitoring online acti"ities, accessing
databases, and so on and make false accusations that damage the reputation of the "ictim on
blogs, Web sites, chat rooms, or ecommerce sites. 7uch acts are called ++++++++.
A) cybers0uatting
B) cyberstalking
$) cyberbullying
&) cyberwar
() cyberboating
,9) Which of the following refers to the practice of deliberately causing emotional distress in the
"ictim?
A) cyberbullying
B) cyberboating
$) cyberstalking
&) bot herdering
() cybers0uatting
,1) Which of the following creations typically obtain patent rather than copyright?
A) material in"entions
B) software
$) music files
&) literature
() paintings
,)) An organi!ed attempt by a country's military to disrupt or destroy the information and
communication systems of another country.Which of the following terms best represents such
attacks by a country?
A) cyberwar
B) Internet hoa%ing
$) cyber terrorism
&) Web "andalism
() logic bomb
,,) Independent citi!ens or supporters of a country that perpetrate attacks on percei"ed or real
enemies are called ++++++++.
A) patriot hackers
B) bot herders
$) online predators
&) hackti"ists
() ethical hackers
,.) Fester is a famous hacker who describes himself as a *hackti"ist for good.* Ae launches
attacks on terrorist sites that pose threats to nations. Fester claims that he is obstructing the lines
of communication for terrorists, sympathi!ers, fi%ers, facilitators, oppressi"e regimes and other
general bad guys. Fester can be called a2n) ++++++++.
A) ethical hacker
B) cyber terrorist
$) bot herder
&) patriot hacker
() honeypot
,1) ++++++++ is the use of computer and networking technologies, by indi"iduals and organi!ed
groups, against persons or property to intimidate or coerce go"ernments, ci"ilians, or any
segment of society in order to attain political, religious, or ideological goals.
A) $yberterrorism
B) Web "andalism
$) $yberwar
&) ;atriot hacking
() $yberbullying
,3) A mass cyber attack occurred in a country when it took se"ere actions against a group of
citi!ens who protested the country's policies. /he attack in"ol"ed a denialofser"ice in which
selected sites were bombarded with traffic to force them offline. /his is an e%ample of
++++++++.
A) cyberterrorism
B) logic bombing
$) hot backing up
&) cyberbullying
() cybers0uatting
,4) ++++++++ refers to the use of the "ast amount of information a"ailable on the Internet
regarding "irtually any topic for planning, recruitment, and numerous other endea"ors.
A) &ata mining
B) Information dissemination
$) &ata mobili!ation
&) $yber audit
() $ybers0uatting
,5) Which of the following is a significant disad"antage to using acts of cyberterrorism as a
weapon?
A) $yberattacks are difficult to control and may not achie"e the desired destruction.
B) Information destruction is not often considered crucial by opposing nations.
$) $yberattacks cause more emotions in the public than the actual material destruction caused.
&) $yberattacks lead to more drama than physical attacks and could lead to se"ere action against
them.
() 7uch attacks cannot be used against the military and go"ernmental departments.
,8) ++++++++ refers to precautions taken to keep all aspects of information systems safe from
destruction, manipulation, or unauthori!ed use or access.
A) Information systems security
B) Information systems management
$) Information systems organi!ation
&) Information systems audit
() Information systems control
.9) Which of the following is a process in which you assess the "alue of the assets being
protected, determine their likelihood of being compromised, and compare the probable costs of
their being compromised with the estimated costs of whate"er protection you might ha"e to take?
A) risk analysis
B) information systems audit
$) physical access analysis
&) operational analysis
() data authentication
.1) An organi!ation takes acti"e countermeasures to protect its systems, such as installing
firewalls. /his approach is ++++++++.
A) risk reduction
B) risk acceptance
$) risk rescheduling
&) risk transference
() risk postponing
.)) An organi!ation does not implement countermeasures against information threatsE instead it
simply absorbs the damages that occur. /his approach is called ++++++++.
A) risk acceptance
B) risk reduction
$) risk mitigation
&) risk transference
() risk rescheduling
.,) $iscon /elecom is a mobile operator in the (uropean Gnion. /he company pro"ides
personali!ed ser"ices to its customers and its databases contain "aluable information about its
customers. /he loss of customer information used to decide ser"ices would be e%tremely harmful
to the organi!ation. Which of the following strategies used by $iscon is an e%ample of risk
transference?
A) /he company insures any possible data loss for a large sum.
B) /he company forms a special team of top e%ecuti"es to monitor and correct the information
policies.
$) It installs a corporate firewall to protect unauthori!ed access to information.
&) It enforces a strict employee data policy and prohibits employees from unauthori!ed access.
() /he company decides to absorb any damages that might occur.
..) -B7 ;ublishing is a leading media company in <rance. /he company handles sensiti"e
information and often finds it susceptible to information threats. As a counter measure the
company installs strong firewalls and protecti"e software. /hese steps are a part of ++++++++
strategy.
A) risk acceptance
B) risk reduction
$) risk mitigation
&) risk transference
() risk rescheduling
.1) An organi!ation is using physical access restrictions to safeguard information systems when
it uses ++++++++.
A) auditcontrol software
B) firewalls
$) encryption
&) passwords
() secure data centers
.3) Nour company uses a fingerprint recognition system instead of an access card. /his helps the
company pre"ent unauthori!ed physical access. Which of the following technologies is used for
restriction here?
A) biometrics
B) "irtual pri"ate networks
$) secure tunneling
&) accesscontrol software
() encryption
.4) An organi!ation is using biometrics when it uses ++++++++ to identify employees.
A) fingerprints
B) access cards
$) pattern formations
&) bar codes
() code numbers
.5) ++++++++ software allows computer users access only to those files related to their work.
A) Accesscontrol
B) <irewall
$) Auditcontrol
&) &enialofser"ice
() -isk analysis
.8) An attacker accesses a network, intercepts data from it, and uses network ser"ices and sends
attack instructions to it without entering the home, office, or organi!ation that owns the network.
/his new form of attack is known as ++++++++ attack.
A) dri"eby hacking
B) hackti"ist
$) honeypot
&) cybers0uatting
() denialofser"ice
19) Albitre% 7ystems is an Asian software consulting firm which de"elops solutions for
companies in the Gnited 7tates and (urope. /he company is hea"ily dependent on Internet for
transporting data. /he company wants to ensure that only authori!ed users access the data and
that the data cannot be intercepted and compromised. Which of the following would be most
helpful to the company in achie"ing this goal?
A) spam filtering
B) hot backing up
$) tunneling
&) open transmitting
() disaster reco"ery planning
11) Which of the following is a part of a computer system designed to detect intrusion and
pre"ent unauthori!ed access to or from a pri"ate network?
A) firewall
B) cookie
$) botnet
&) honeypot
() spam filter
1)) Which of the following is a "alid obser"ation about encryption?
A) (ncrypted messages cannot be deciphered without the decoding key.
B) It is used for data enhancement rather than data protection.
$) (ncryption is performed only after the messages enter the network.
&) /he encryption approach is not dependent on the type of data transmission.
() (ncryption implementation should be performed without in"ol"ing third parties.
1,) Implementing encryption on a large scale, such as on a busy Web site, re0uires a third party,
called a2n) ++++++++.
A) certificate authority
B) "irtual pri"ate network
$) arbitrati"e authority
&) control center
() backup site
1.) ++++++++ software is used to keep track of computer acti"ity so that inspectors can spot
suspicious acti"ity and take action.
A) Accesscontrol
B) <irewall
$) Auditcontrol
&) &enialofser"ice
() -isk analysis
11) A cold backup site is a2n) ++++++++.
A) empty warehouse with all necessary connections for power and communication
B) warehouse that contains noncritical information
$) warehouse that contains information on metadata rather than operational data
&) database that contains historical information and data
() database that is used less fre0uently than other databases
13) An organi!ation builds a fully e0uipped backup facility, ha"ing e"erything from office chairs
to a onetoone replication of the most current data. /his facility is called a2n) ++++++++ backup
site.
A) replica
B) recurring
$) hot
&) "irtual pri"ate
() collaborati"e
14) 7ome data centers rent ser"er space to multiple customers and pro"ide necessary
infrastructure in terms of power, backups, connecti"ity, and security. 7uch data centers are called
++++++++.
A) collocation facilities
B) hot backup sites
$) !ombie computers
&) offshore networks
() "irtual pri"ate networks
15) Which of the following terms refers to a computer, data, or network site that is designed to
be enticing to crackers so as to detect, deflect, or counteract illegal acti"ity?
A) honeypot
B) firewall
$) bot herder
&) botnet
() !ombie computer
18) /he ++++++++ policy e%plains technical controls on all organi!ational computer systems,
such as access limitations, auditcontrol software, firewalls, and so on.
A) account management
B) security
$) incident handling
&) information
() disaster reco"ery
39) Identify the policy that lists procedures for adding new users to systems and remo"ing users
who ha"e left the organi!ation.
A) information policy
B) use policy
$) incident handling procedures
&) disaster reco"ery plan
() account management policy
31) Which of the following types of plans describes how a business resumes operation after a
disaster?
A) business continuity plan
B) internal operations plan
$) collocation facilities plan
&) emergency operation plan
() "irtual pri"ate network plan
3)) -eco"ery point ob#ecti"es of a reco"ery plan specify ++++++++.
A) the ma%imum time allowed to reco"er from a catastrophic e"ent
B) data structures and patterns of the data
$) the minimum time allowed to reco"er from a catastrophic e"ent
&) how current the backup data should be
() the capacity of a backup ser"er in storing the necessary data
3,) $ontrols that are used to assess whether anything went wrong, such as unauthori!ed access
attempts are called ++++++++ controls.
A) detecti"e
B) pre"enti"e
$) correcti"e
&) adapti"e
() protecti"e
3.) :rgani!ations periodically ha"e an e%ternal entity re"iew the controls so as to unco"er any
potential problems in the controls. /his process is called ++++++++.
A) an information systems audit
B) risk analysis
$) information modification
&) a reco"ery point ob#ecti"e analysis
() a reco"ery time ob#ecti"e analysis
31) Which of the following laws makes it mandatory for organi!ations to demonstrate that there
are controls in place to pre"ent misuse or fraud, controls to detect any potential problems, and
effecti"e measures to correct any problems?
A) 7arbanes:%ley Act
B) /rade (%pansions Act of 183)
$) (lectronic $ommunications ;ri"acy Act of 1853
&) $entral Intelligence Agency Act
() G7A ;atriot Act
33) Which of the following types of control is used to define the aims and ob#ecti"es of an
organi!ation?
A) standards
B) procedures
$) schemes
&) policies
() systems
34) Which of the following is an e%ample of organi!ation and management control?
A) policies about incident reporting
B) collocation facilities at an organi!ation
$) general policies about rights of access
&) generation of acti"ity logs of employees
() general policies about disaster planning