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					MIS (Jerry Post 2009)                                                c. departmental tasks
Review Question                                                      d. a set of rules or standard operating procedures

Chapter 1                                                            9. The main goal of decentralization in organizations is to
                                                                     push the decision-making authority
1. Management information systems are designed to                    a. up to the top managers who set strategy
a. build computer systems and networks                               b. down to the level that deals with the customer
b. improve individual productivity                                   c. down to the middle-level managers who collect and process
c. develop and manage a database                                     data
d. help managers analyze data and solve business problems            d. down to the IT specialists who develop and maintain
                                                                     information systems
2. Today, ________ in the firm is involved with the
information system.                                                  10. The increased competition created by
a. almost everyone       b. only programmers                         internationalizations and decentralization requires
c. system analysts       d. non-management employees                 corporations to be
                                                                     a. more stable           b. more structured
3. A management information system consists of five related          c. more regulated        d. more flexible
components:
a. programmers, computers, software, network, internet               11. _________ jobs are often dedicated to collecting and
b. hardware, software, people, procedures, data                      analyzing data.
c. computer, operating system, application software, network,        a. Manufacturing         b. Agricultural
keyboard                                                             c. Engineering           d. Management and service
d. hardware, software, programmers, users, managers
                                                                     12. Which one is not a factor that is necessary for success in
4. Information represents data that has been _______,                reengineering?
_______, and ________ to provide insight.                            a. overcoming resistance by managers who are afraid of losing
a. collected, programmed, evaluated                                  jobs or power
b. organized, processed, programmed                                  b. earning strong support by upper management
c. processed, organized, integrated                                  c. placing computers into the firm
d. collected, programmed, integrated                                 d. aiming high and going for major changes instead of small
                                                                     rearrangements
5. Psychologist Henry Mintzberg classifies managerial tasks
into three categories:                                               13. Each organization faces three levels of decisions and
a. organizing work, planning jobs, and controlling workers           problems:
b. preparing reports, talking on the phone, and attending            a. strategy, tactics, and operations
meetings                                                             b. production, accounting, and marketing
c. setting schedules, directing the processes, and communicating     c. products, markets, and customers
with other managers                                                  d. workers, specialists, and managers
d. interpersonal, informational, and decisional.
                                                                     14. In a manufacturing firm, machine settings, worker
6. The process of decision-making involves:                          schedules, and maintenance requirements would represent
a. planning, organizing, directing, and controlling                  management tasks and decisions at
b. management, communications, and networking                        a. the strategic level   b. the tactical level
c. collecting data, identifying problems, evaluating alternatives,   c. the knowledge level   d. the operational level
and making choices
d. collecting data, analyzing the data, and creating reports         15. Many business tasks and decisions are _________, in the
                                                                     sense that they can be defined by a set of rules or
7. One of the most important changes in organizational               procedures.
structure is the move away from ______ to ________.                  a. unstructured           b. structured
a. hierarchical structure, team-based structure                      c. unknown                d. undefined
b. single-level management, multi-level management
c. decentralized form of management, centralized form of
                                                                     16. An important characteristic of ___________ is the ability
management
                                                                     to provide data for all other information system capabilities.
d. horizontal merger, vertical integration
                                                                     a. decision support systems
                                                                     b. transaction processing systems
8. Using specialization coupled with technology, firms can           c. expert systems
reduce many management problems to                                   d. enterprise resource planning systems
a. many small problems
b. many functional problems

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17. A(n) __________ is the interactive computer-based            c. an error message
information system that provides a flexible tool for analysis    d. it depends on the search engine used
and helps managers make business decisions.
a. Expert system                                                 27. Businesses today are becoming
b. Decision support system                                       a. larger and more decentralized
c. Transaction processing system                                 b. smaller and more decentralized
d. Executive information system                                  c. larger and more centralized
                                                                 d. smaller and more centralized
18. _________ involve changing the overall structure of the
firm to give it an advantage over the competition.               28. The three general levels of management are:
a. Operational decisions b. Transactional decisions              a. operations, tactics, strategy
c. Tactical decisions     d. Strategic decisions                 b. data, information, wisdom
                                                                 c. hierarchical, team, individual
19. According to Porter‟s Five Forces model, which one is        d. interpersonal, tactical and external
not typical external agent.
a. employees              b. customers                           29. At the Operations level of management
c. suppliers              d. rivals                              a. tasks are unstructured
                                                                 b. managers make extensive use of Decision Support Systems
20. American Hospital Supply changed the industry by             (DSS)
providing a __________ inventory delivery service.               c. tasks are structured
a. low cost             b. fast                                  d. the time frame is long-term
c. just-in-time         d. delay
                                                                 30. Decisions made at the Tactical level involve
21. Innovation                                                   a. a time frame of many years
a. is relatively easy for most organizations                     b. making major changes within existing organizational
b. is free                                                       structure
c. increases the sources of revenue for a firm                   c. making changes to the overall organization or industry
d. involves doing more with fewer resources                      d. general, as opposed to specialized, problems

22. The components of a Management Information System            31. Decision Support Systems
include hardware, software,                                      a. use data from transaction records
a. data, information and knowledge                               b. are used by managers at the operations level
b. people, procedures, and databases                             c. help managers make decisions that may alter the overall
c. communications, data and information                          industry
d. information, knowledge and wisdom                             d. are also called knowledge-based systems

23. Knowledge-based systems are capable of all of the            32. Strategic decisions are all of the following EXCEPT:
following EXCEPT:                                                a. long term              b. unstructured
a. analyzing problems                                            c. low risk               d. very difficult
b. pattern recognition
c. recommending decisions                                        33. Most people in the U.S. today are employed in:
d. creating new knowledge                                        a. farming               b. manufacturing
                                                                 c. travel and tourism    d. management
24. The decision process involves collecting data, identifying
problems and:                                                    34. Which of the following features is offered to managers by
a. communicating          b. making choices                      information technology?
c. educating employees d. organizing data                        a. Productivity          b. Innovation
                                                                 c. Introspection         d. A and B
25. Management by methodology:                                   e. B and C
a. gives lower-level managers flexibility in decision making
b. results in standardized products                              35. Which of the following concerning data and information
c. often leads to inconsistent quality                           are true?
d. places the authority for decision making in the hands of      a. Data consists of factual elements while information represents
individuals                                                      data that has been processed, organized, and integrated
                                                                 b. Information consists of factual elements while data represents
26. Using an advanced search option in a search engine,          information that has been processed, organized, and integrated
when words are added to the search criteria (using a             c. Data can be text, images, or even video
Boolean “AND”) the result will be:                               d. A and C are true
a. fewer matches                                                 e. B and C are true
b. more matches
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36. Changes in organization‟s structure have resulted in              a. Use of temporary workers and consultants.
a. a movement away from traditional hierarchical structure.           b. Declining influence of the consumer.
b. a movement away from a team-based approach.                        c. Decreased international scope of business.
c. larger numbers of managers running the company.                    d. Reduced specialization of managers.
d. little data being shared among middle and lower management         e. Information technology is used to support all of the above
levels.                                                               business trends.
e. All of the above
                                                                      43. Traditional concepts of management focus on:
37. From the past to the current, which of the following              A. Organizing, planning, and control
represents the progression of American jobs?                          b. Manufacturing, span of control, and accounting procedures
a. Manufacturing, financial, service.                                 c. Military-based transactional systems
b. Agriculture, financial, manufacturing.                             d. Accuracy, dependability, and loyalty to the firm
c. Financial, agriculture, service.
d. Service, agriculture, financial.                                   44. Mintzberg's three categories of managerial tasks are:
e. Agriculture, manufacturing, service.                               a. Managerial, span of responsibility, financial planning
                                                                      b. Human resource planning, financial planning, resource
38. Which of the following is true concerning information             planning
systems and management and decision levels?                           C. Interpersonal, informational, and decisional
a. Information technology at the operations level is used to          d. Developmental, resource identification, and interpersonal
collect data and perform well-defined computations.
b. An important task at the strategy level is to collect data on      45. Due to the amount of analysis required to make
transactions.                                                         decisions, the demand for managers with specific technical
c. Because of the structured nature of executives’ decisions, it is   skills is ___________, while the demand for general business
relatively easy to determine how information systems can help         managers is ___________.
at the strategic level.                                               a. Decreasing and increasing
d. A and C are true                                                   B. Increasing and decreasing
e. B and C are true                                                   c. Decreasing and decreasing
                                                                      d. Increasing and increasing
39. Electronic commerce (EC) sales account for what
percentage of total retail sales?                                     46. Three of the seven fundamental trends that have been
a. Roughly 20%             b. Roughly 40%                             driving the economy and changing businesses are:
c. Roughly 60%.            d. Roughly 80%                             a. The Web, telecommunications, decentralization
e. None of the above                                                  b. More government intervention, higher taxes on Web-based
                                                                      businesses, computer-literate employees
40. Which of the following is true concerning                         c. Specialization, reliance on temporary workers, the increasing
decentralization?                                                     importance of service-oriented businesses
a. Businesses today are becoming both larger and more                 d. Better-trained employees, telecommunications advance, less
decentralized.                                                        government intervention
b. Companies no longer need hundreds of middle-level
managers to organize data and interpret top man¬agement               47. Management information system consists of:
commands.                                                             a. Hardware, software, telecommunications, data, storage
c. The gap between top managers and lower-level managers and          capacity
salespeople is bridged by information technology.                     b. Collections of data, storage capacity, software, people,
d. All of the above are true                                          hardware
e. None of the above are true                                         C. Hardware, software, people, procedures, and collections of
                                                                      data
41. According to a report by CSC Index, a reengineering               d. Software, people, hardware, data, telecommunications
consulting company, which of the following factors are
necessary for success in reengineering?                               48. Information represents data that has been ___________,
a. A strong corporate balance sheet.                                  __________, and __________ to provide insight.
b. Weak competition.                                                  A. Processed, organized, integrated
c. Aiming high and going for major changes instead of small           b. Processed, programmed, evaluated
rearrangements.                                                       c. Organized, programmed, evaluated
d. Overcoming resistance from customers.                              d. Integrated, programmed, evaluated
e. All of the above are true
                                                                      49. Information technology offers the ability to alter the way
42. Information technology is used to support which of the            companies are ____________ and ______________.
following business trends and provide new management                  A. Organized, managed b. Analyzed, processed
alternatives.                                                         c. Audited, processed   d. Processed, organized

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50. Information systems enable executives to gather and         a. IT generalist, general management, database administration
manipulate information themselves or with automated             B. Project management, security, and database administration
systems; and consequently, there is _______ need for            c. Fry cook, project management, IT generalist
_________ managers to prepare and analyze data.                 d. Programmer, project management, store management
A. Less, middle          b. Less, upper
c. More, lower           d. More, middle                        Chapter 2

51. What is the computer-based information system called        1. Hardware is defined as:
that collects data on transactions and operations?              a. the physical elements of a computer system
A. Transaction processing system                                b. the logical components of a computer system
b. Decision support system                                      c. equipment, programs and data used in systems
c. Executive information system                                 d. sets of instructions to the system
d. Expert system
                                                                2. The data types commonly found in systems today include
52. What is the computer-based information system that          all of the following EXCEPT:
helps integrate data in a collaborative environment?            a. video                 b. sounds
A. Enterprise resource planning system                          c. images                d. smells
b. Decision support system
c. Executive information system                                 3. A 64-bit processor can handle _______ of data in one
d. Expert system                                                operation.
                                                                a. 64 bytes               b. 32 bytes
53. What is the software information system that provides a     c. 16 bytes               d. 8 bytes
flexible tool for analysis and helps managers make business
decisions?                                                      4. Each data type has certain characteristics. Pictures are
a. Transaction processing system                                described in terms of:
B. Decision support system                                      a. precision and scaling factor
c. Executive information system                                 b. resolution and number of colors
d. Expert system                                                c. frames per second
                                                                d. sampling and playback
54. What type of decision is required to change the overall
structure of the firm to give it an advantage over the          5. The ___________ character set can be used to represent
competition?                                                    all modern languages.
a. Tactical                B. Strategic                         a. ASCII               b. EBCDIC
c. Operational             d. None of the above                 c. UNICODE             d. Sans Serif

55. Technology products‟ price and performance typically        6. Which of the following methods of storing images on
exhibit what kind of trend over time?                           computers is best if you plan to allow changes in the size of
a. Price increases, performance decreases                       the image (shrinking and expanding) while keeping lines and
B. Performance increases, price decreases                       edges smooth?
c. Price stays the same, performance increases                  a. GIF                    b. JPEG
d. Performance stays the same, Price decreases                  c. Vector images          d. bitmap images

56. The franchising business trend impacts technology in the    7. CMYK is
following ways:                                                 a. an operating system
a. Reengineering, reducing middle management, security          b. a color template used by print shops
B. Reengineering, reducing middle management, supporting        c. a bitmap imaging system
rules                                                           d. a system for digitizing music
c. Speed, communication, supporting rules
d. Few companies dominate industries, increased data sharing,   8. Which of the following attributes of computer hardware
specialized MIS tools.                                          has been decreasing over the past few decades, and is
                                                                expected to decrease further in the next decade?
57. Which implication has technology participated in            a. speed                 b. quality
various business trends the most?                               c. capacity              d. price
a. Business Process Re-Engineering
B. Improved communication                                       9. Cache memory is used in computer systems to address the
c. Allowing few companies to dominate industries.               problem of:
d. Reducing and lowering costs of management.                   a. differences in the speed of the processor and the speed of I/O
                                                                devices
58. McDonald‟s has created multiple career tracks for           b. the need for portable storage
information technology specialists, which include:
                                                                                                                                4
c. ergonomics                                                     19. __________ image format consists of mathematical
d. parallel processing                                            description instead of dots for image transfer.
                                                                  a. GIF                    b. JPEG
10. Speech recognition systems:                                   c. PNG                    d. Vector
a. are extremely accurate
b. are designed to work with individual users without any         20. Graphic devices – including displays, printers, digital
training                                                          cameras, and scanners – are evaluated largely in terms of
c. can be trained to work with a specific user’s speech pattern   a. resolution             b. bandwidth
and accent                                                        c. frequency              d. amplitude
d. have not yet been built into common commercial systems
                                                                  21. Data compression techniques scan the data looking for
11. One of the first hardware-independent operating               a. resolutions          b. colors
systems was:                                                      c. patterns             d. frequency
a. DOS                   b. Windows
c. Open Systems          d. UNIX                                  22. The _________ carries out instructions written by
                                                                  programmers and uses ______ to temporarily store
12. If you were installing a Web server for your                  instructions and data. Data and instructions that need to be
organization‟s Web page, you would be concerned about             stored for a longer time are transferred to _________.
certain characteristics of the server. Desirable                  a. computer, disk, tape
characteristics of a Web server include all of the following      b. processor, RAM, secondary storage
EXCEPT:                                                           c. processor, RAM, ROM
a. scalability             b. easy backup                         d. processor, secondary storage, RAM
c. easy maintenance        d. portability
                                                                  23. One of the interesting aspects of computers is that the
13. Computers are typically discussed in terms of two             various components operate at
important classifications: _________ and _________.               a. the same scope         b. different scope
a. worker, manager        b. machine, people                      c. the same speed         d. different speed
c. hardware, software     d. data, program
                                                                  24. The exponential increase in processor performance
14. To a computer user, the most important aspect of the          arises because the industry has been able to follow _______
computer is                                                       Law: the number of components placed on a chip ________
a. the processor that it uses                                     every 18 months.
b. the storage space that it provides                             a. Moore’s, doubles               b. Moore’s, triples
c. the memory size that it has                                    c. Einstein’s, doubles            d. Einstein’s, triples
d. the data that it handles
                                                                  25. The purpose of an input device is to convert data into
15. The computer processor can handle only ________ in the        __________ form.
form of ______.                                                   a. electronic analog     b. electronic binary
a. binary data, bytes   b. binary data, bits                      c. regular English       d. regular character
c. decimal data, bits   d. English data, bits
                                                                  26. Some common problems in encountered in speech
16. Unicode is a(n) __________ standard that uses two bytes       recognition systems include
to count each character or ideogram, enabling it to handle        a. volume of the speech, speed of the speech, and pitch of the
_________ ideograms in each language.                             speech
a. international, 216             b. international, 28            b. amplitude of the speech, frequency of the speech, and
c. national, 216                  d. national, 28                 variations in speech dialects
                                                                  c. volume of the speed, variations in speech patterns, and the
17. The basic rule of thumb is that most printed text is          effects of punctuations on meaning
displayed at _______ to _______ points. It is also useful to      d. the use of homonyms, variations in speech patterns or
know that letters in a ______ points are approximately one        dialects, and the effects of punctuation on meaning
inch tall.
a. 10, 12, 14                     b. 10, 12, 18                   27. The _________ is software that is responsible for
c. 10, 16, 72                     d. 10, 12, 72                   communication among the hardware components.
                                                                  a. device driver                 b. operating system
18. A bitmap image is converted into _______ and evaluated        c. application program           d. groupware
in terms of the number of _____ and _______ of the picture.
a. dots, color, pixels           b. dots, pixels, color           28. The reason the browser is so important is that it has
c. pixels, color, resolution     d. pixels, dots, resolution      become the
                                                                  a. standard display mechanism
                                                                  b. standard operating system

                                                                                                                                   5
c. standard programming language                                  b. GIF files can depict the whole range of colors distinguishable
d. standard word processor                                        by the human eye.
                                                                  c. GIF format and JPEG format are both bitmap files.
29. To perform e-business tasks, the server needs to evaluate     d. A and C
programmed _______ and interact with a ________.                  e. B and C
a. Web site, server               b. Web server, Web site
c. Web code, database             d. database, Web server         38. In a given day, the main application that uses the
                                                                  processor is
30. Today, most companies rely on _________ software that         a. the Task Manager       b. the System Idle Process
is created to support the needs of millions of different users.   c. Internet Explorer      d. Microsoft Word
a. custom-written         b. commercial off-the-shelf             e. disk defragmenter
c. special application    d. special operating system
                                                                  39. The most popular pointing device in use today is(are)
31. Two important strengths of a database management              a. pressure-sensitive pens.     b. a mouse.
system are the easy ________ and the ability _______.             c. digitizer tablets.           d. touch screens.
a. to share data, to update data
b. to update data, to sort data                                   40. Which of the following is a type of data?
c. to add data, to delete data                                    a. File                     b. Database
d. to share data, to search for data                              c. Knowledgebase            d. Data warehouse
                                                                  e. None of the above is a type of data
32. Linux is a(n) ________ software.
a. open-source application       b. open-source system            41. Computer hardware trends include all of the following
c. communication                 d. customized                    except
                                                                  a. declining costs
33. Which of the following is the fastest component of the        b. declining size
computer?                                                         c. rapid changes in the hardware industry
a. RAM (Random Access Memory)               b. Processor          d. longer economic life of computers
c. Hard drive                               d. DVD                e. faster processors
e. CD-ROM
                                                                  42. Early uses of computers focused on improving ________
34. Which of the following is true with regard to open-source     by automating manual tasks and today, managerial uses
software?                                                         often focus on ___________.
a. Novices find the Linux/UNIX operating system easy to learn.    a. Processing, creativity        B. Efficiency, effectiveness
b. There’s a steady income stream so open-source is guaranteed    c. Processing, effectiveness     d. Efficiency, creativity
to be around for a long time.
c. Security is a resolved issue.                                  43. ________ files combine the advantages of both GIF and
d. Complex programs have been created by using the volunteer      JPEG formats.
talents of thousands of programmers around the world.             A. PNG                           b. MPG
                                                                  c. AVI                           d. TIF
35. Moore‟s law states “the number of components placed
on a chip doubles every 18 months”; however, limitations to       44. With the appropriate mail filters, junk mails can be
Moore‟s Law include which of the following?                       discarded
a. The cost of the doubled components will eventually be too      a. Manually                       B. Automatically
expensive for computer makers to make a profit.                   c. Remotely                       d. Precisely
b. The power requirements and heat generation increase
dramatically.                                                     45. Voice mail systems record messages much like an
c. When the components shrink too small, the electronic           answering machine, but they store the messages in ________
properties no longer behave the same as when components were      form on computers.
larger.                                                           a. Analog                        B. Digital
d. A and B are limitations to Moore’s Law.                        c. Irbid                         d. None of the above
e. B and C are limitations to Moore’s Law.
                                                                  46. Spreadsheets perform various __________ and
36. Activities which managers and decision makers perform,        __________ analyses.
that are supported by computer resources, include                 A. Statistical and mathematical
a. research                      b. analysis                      b. Graphical and financial
c. communication                 d. organizing resources          c. Physical and financial
e. All of the above                                               d. Physical and mathematical

37. Regarding graphics files and formats,                         47. To perform e-business tasks, the server needs to evaluate
a. GIF files are larger than JPEG files.                          programmed Web _____ and interact with a __________.

                                                                                                                                  6
a. Code, database         b. Site, server
c. Code, server                     d. Site, database             1. All of the following are asynchronous EXCEPT:
                                                                  a. email
48. Establishing an e-business requires that you either run a     b. IM
_______ or pay someone to run it for you.                         c. letters sent via the U.S. Postal Service
a. Server                 b. Printer                              d. voice mail
c. Scanner                d. Database
                                                                  2. An intranet:
49. Both Sun (Solaris) and IBM (AIX and Linux) focus on           a. is a global communications network for computers
______ versions for their servers.                                b. is usually an unmonitored site
a. Windows XP                           B. UNIX                   c. is open to users outside an organization
c. Windows NT                           d. Mac OS                 d. uses internet technologies

50. What is the nominal storage capacity of commercial            3. On a network, client computers:
DVDs for movies?                                                  a. are used by individuals
a. 18 GB                 B. 9 GB                                  b. store data used by other users or other computers
c. 27 GB                 d. 4.77 GB                               c. are often used to house web pages that can be accessed
                                                                  remotely
51. Besides silicon, what new chemical component is               d. are usually the most powerful computers in the network
proposed to be used to address the shrinking transistor size
(now approaching 45 nanometers)?                                  4. Which of the following is a wired, electric transmission
A) Silver                  B) Barium                              medium for networks:
c) Halfnium                d) Governmentium                       a. coaxial cable         b. fiber optic
                                                                  c. satellite             d. WiMax
52. Based on a study by Lawrence Berkeley Labs, computer
power consumption increased by what percentage from 2000          5. All of the following are wireless media EXCEPT:
to 2005?                                                          a. Satellite                        b. Fiber optics
a) 10%                   b) 50%                                   c. Microwave                        d. Infrared
c) 100%                  d) 72%
                                                                  6. Fiber optic cables are:
53. The search for extraterrestrial intelligence (SETI)           a. often used to transmit data over short distances
project is the most famous example of using a __________          b. subject to interference
approach.                                                         c. relatively inexpensive
A. Grid computing                  b. Serial computing            d. used as the backbone of the internet
c. Parallel computing              d. Serial-parallel computing
                                                                  7. The differences between WiMax and Wi-Fi include:
54. Several recent technological changes are _________ the        a. WiMax is wired; Wi-Fi is wireless
cost of digitized video, which will ultimately _________ its      b. WiMax is used over short distance; Wi-Fi is used over long
use in business.                                                  distances
a. Raising, increase                b. Lowering, decrease         c. WiMax is used over long distances; Wi-Fi is used over short
C. Lowering, increase               d. None of the above          distances
                                                                  d. WiMax is wireless; Wi-Fi is wired
55. Sound consists of two basic components: __________ and
__________.                                                       8. The standard or protocol most likely to be used to connect
A. Amplitude, frequency           b. Volume, speed                a wireless headset to your cell phone for hands-free
c. Frequency, velocity            d. Density, weight              operation while driving is:
                                                                  a. Wi-fi                  b. Bluetooth
56. Two major formats are used for sharing image files are        c. WiMax                  d. TCP/IP
_______ and ________.
a. MPG, AVI                     b. GIF, JPEG                      9. Data sent over the internet is converted to ______ form
c. TIF, WAV                     d. BMP, MID                       and split into ______ that contain a source address,
                                                                  destination address and sequencing information.
57. Existing functions for sound and video are often limited      a. analog, packets        b. analog, frequencies
to _________, _________, and _________.                           c. digital, packets       d. digital, frequencies
a. Totals, calculations, comparisons
b. Searching, formatting, spell-checking                          10. The Internet is a(n):
C. Recording, playback, compression                               a. circuit switching network         b. extranet system
d. None of the above                                              c. wireless network                  d. packet switching network

Chapter 3

                                                                                                                                   7
11. Multiplexing allows shared connections. Which of the       22. In the _______ process, only one computer can
following allows only one machine at a time to use the         communicate at a given time.
network medium?                                                a. time division multiplexing
a. TDM                   b. FDM                                b. frequency division multiplexing
c. DSSS                  d. CDMA                               c. direct sequence spread spectrum
                                                               d. mixed frequencies
12. The Internet uses the _______ protocol.
a. TCP/IP                 b. Wi-fi                             10. Many different types of computers and connection
c. Bluetooth              d. 4G                                devices exist. Without _______, there is no way to connect
                                                               computers or networks produced by different vendors.
13. In the email address, jones@smithsonian.art.museum         a. hubs                   b. routers
the top-level domain (TLD) name is:                            c. switches               d. standards
a. jones                   b. smithsonian
c. art                     d. museum                           23. In the TCP/IP Reference Model, the _______ layer is
                                                               concerned with routing messages to the appropriate
14. One of the most obvious uses of networks is                location.
a. sharing a printer     b. sending an e-mail                  a. physical             b. Internet
c. sharing data          d. controlling other computers        c. transport            d. application

15. E-commerce consists of a transaction system with the       24. In the TCP/IP Reference Model, the _________ layer is
Internet as the _____ and customer browsers as the _______.    responsible for dividing the application data into packets
a. network, client computers     b. network, web serves        and providing logical connections to the network.
c. servers, client computers     d. servers, network           a. physical               b. Internet
                                                               c. transport              d. application
16. Phone call is ______ and e-mail is ________.
a. digital, analog                                             25. Each network interface card has a unique __________.
b. asynchronous, synchronous                                   Switches use this number to identify every device on the
c. synchronous, asynchronous                                   network and send packets to the correct device.
d. public communication system, private communication system   a. e-mail address                b. IP address
                                                               c. media access control address  d. post address
17. Components of a network include
a. hardware, software, programmer                              26. ___________ is a technology that converts your phone
b. computers, transmission medium, and connection devices      call directly to Internet packets and ships them to the
c. computers, printers, and scanners                           destination.
d. processors, RAM, secondary storage devices                  a. long distance phone call
                                                               b. local phone call
18. __________ is a relatively new technology that is          c. plain old telephone system (POTS)
designed to transfer wireless data over relatively long        d. Voice over IP (VoIP)
distances.
a. Fiber high-end                  b. Wi-Fi                    27. The current Internet address uses ________ numbers.
c. WiMax                           d. Bluetooth                The Newer IPv6 support _______ addresses.
                                                               a. 16-bit, 32-bit        b. 32-bit, 64-bit
19. In telecommunications, transmission capacity is often      c. 32-bit, 128-bit       d. 64-bit, 128-bit
measured in _________. _______ has the greatest capacity.
a. millions of bits per second, Fiber-optic cable              28. As a business, you will need to register your _____
b. bytes per second, Fiber-optic cable                         domain name to make it accessible to other users. This
c. millions of bits per second, Wireless                       registration provides a tie between the _____ world and the
d. bytes per second, DSL                                       _____ world.
                                                               a. domain name, Internet, real
20. A key feature in sharing networks is to convert all data   b. company name, Internet, real
into ________ form and break into small ________.              c. domain name, Internet, virtual
a. analog, packets        b. analog, text files                d. company name, Internet, virtual
c. digital, packets       d. digital, text files
                                                               29. The two most important proposed features of Internet 2
21. The ________ and ________ choose the best path to send     are ________ and ________.
the data when each packet arrives.                             a. new IP address, high speed delivering
a. hubs, switches       b. switches, routers                   b. network address translation, high-speed connections
c. hubs, routers,       d. switches, database                  c. high-speed connections, quality-of-service provisions
                                                               d. domain name, IP address


                                                                                                                             8
30. Many western European nations have _________ laws             c. Scheduling             D. Case-based
concerning privacy that the United States.
a. much stricter         b. less strict                           40. Newer technologies are emphasizing the value of routing
c. more flexible         d. no                                    all communication over a single Internet-based network,
                                                                  often called:
31. Networks require infrastructure of __________ and are         a. Cellular network
based on __________.                                              B. Voice over Internet protocol (VoIP)
a. long distance companies, ISP                                   c. Packet switching network
b. ISP, local Internet service companies                          d. Private branch exchange (PBX)
c. connection devices, Internet protocols
d. Internet, web sites                                            41. One way to handle server scalability is to build a
                                                                  ________ where the workload is automatically distributed
32.The goal of telecommunications is to remove ________ as        across machines and new low-cost servers can be added at
a factor in management and decisions.                             any time.
a. finance                      b. marketing                      A. Server farm                   b. Network
c. inventory                    d. location                       c. Network interface card        d. None of the above

33. A fiber-optic cable consists of:                              42. Only a small number of radio frequencies:
a. Steel                                                          a. Are still available
b. A metallic foil wrapped around the entire cable                b. Are microwave frequencies
C. A glass or plastic core that is surrounded by a reflective     C. Can be used to carry data
material                                                          d. Can cover long distance
d. Non-conductive plastic
                                                                  43. DSL is a system offered by phone companies using:
34. Univar has followed two approaches to e-Business:             A. The twisted-pair phone line into your house
a. B2B, B2C                                                       b. The fiber-optic cable line into your house
b. RFID, EDI                                                      c. Coaxial cable line into your house
C. Elemica (chemical industry web site), Chempoint (B2B           d. None of the above
portal)
d. Elemica (chemical industry web site), EDI                      44. The DSL line is ____________ between your house and
                                                                  the phone company.
35. The third generation cell phone is being designed to          A. Not shared                   b. Shared
handle data at speeds from ____ to _______.                       c. Direct                       d. None of the above
A. 56 kbps, 2 mbps
b. 56 kbps, 100 mbps                                              45. Wireless radio connections always use a:
c. 56 kbps, 1000 mbps                                             a. Direct medium                  B. Shared medium
d. 56 kbps, 1000 kbps                                             c. Microwave guide                d. PSTN

36. Microwave satellite transmission is worth the expense if      46. _________ are crucial to improving efficiency in large
you:                                                              networks.
a. Require absolute security for your messages                    A. Routers and switches          b. Modems
b. Require speed for your messages                                c. Printers                      d. Servers
C. Have huge amounts of data to transfer
d. Have line-of-sight between sender and receiver                 47. In the TCP/IP reference model, the Internet layer is
                                                                  concerned with:
37. E-mail messages are:                                          A. Routing messages to the appropriate location
a. Synchronous           B. Asynchronous                          b. Checking the security level of the messages
c. Analog                d. None of the above                     c. Checking messages for major viruses
                                                                  d. Keeping the entire message together as one packet
38. A Web log is an interesting variation of a Web site, and it
is essentially:                                                   48.The newer IPv6 supports:
A. A diary on any topic posted on a special Web site for          a. 16-bit addresses                b. 32-bit addresses
everyone to read                                                  c. 64-bit addresses                D. 128-bit addresses
b. A log of business transactions
c. A description of a particular book                             Chapter 4
d. None of the above
                                                                  1. In a database table, the attributes or characteristics of
39. Corporate based wikis are a great tool for recording          objects/entities are represented by
__________ information                                            a. rows                    b. columns
a. Transactional        b. Groupware                              c. keys                    d. links

                                                                                                                                 9
2. The _______ is a unique identifier of a row.                        11. When a table has no repeating sections (i.e., repeating
a. search field          b. name                                       data within individual cells) and each non-key column in a
c. major field           d. primary key                                table depends on the entire key, the table is said to be in
                                                                       ________ form.
3. Composite keys:                                                     a. first normal                    b. second normal
a. are not unique                                                      c. third normal                    d. Boyce-Codd normal
b. represent one-to-one relationships                                  e. None of the above
c. are made up of more than one column
d. consist of data from more than one table                            12. The clause: WHERE LastName LIKE „%B‟ (or
                                                                       WHERE LastName LIKE “*B” in Access) will include
4. SQL and QBE are:                                                    which of the following last names in the results?
a. database management systems                                         a. ABLE                   b. ABRAMSON
b. data definition languages                                           c. AHAB                   d. A and B
c. operating systems                                                   e. A and C
d. database query languages
                                                                       13. Assume that there are 12 customer records in a table,
5. The general form of a simple SQL query is SELECT                    but the name for one of the customers is missing, although
_______ FROM _______ WHERE conditions are met                          the address, phone number, and e-mail address for that
a. rows, columns                 b. columns, tables                    customer are present. The COUNT(*) command will return
c. tables, database              d. rows, tables                       which of the following results.
                                                                       a. 1              b. 11
6. Complex or frequently-used queries can be saved as a                c. 12             d. The command would result in an error
_______, which can then be treated as any other table in the
database.                                                              14. In the following table definition: Customer(CustomerID,
a. database             b. key                                         LastName, Phone, Street, City, AccountBalance).
c. view                 d. QBE                                         CustomerID is
                                                                       a. the primary key                  b. a column name
7. Normalization is:                                                   c. the table name                   d. A and B
a. the process of designing tables to eliminate unnecessary data       e. B and C
duplication
b. a process that enables users to share access to a database          15. Assume that two members of the same household can be
c. a process for checking validity of data as it is entered into the   a company‟s customer. Which of the following would be
database                                                               considered safe to use as the primary key for the customer
d. a process for ensuring that menus designed for users are            record?
consistent                                                             a. Last name
                                                                       b. Phone number
8. Assume you are building a database for your college                 c. Street address
department that contains information on faculty, students,             d. Social Security Number
and courses. The relationship between students and courses             e. All of the above would be considered safe to use as the
is:                                                                    primary key
a. one-to-one                    b. one-to-many
c. many-to-many                  d. composite                          16.The DBMS performs which of the following tasks?
                                                                       a. It collects data for transaction processing.
9. When a table has no repeating sections (i.e., repeating             b. It creates reports.
data within individual cells), but a non-key column depends            c. Processes ad hoc queries for managers.
on only part of the key, the table is said to be in ________           d. The DBMS performs all of the above tasks.
form.                                                                  e. The DBMS performs none of the above tasks.
a. first normal                     b. second normal
c. third normal                     d. Boyce-Codd normal               17. The database management approach is important to
e. None of the above                                                   business because
                                                                       a. it focuses on the data and not on the programs
10. When a table has no repeating sections (i.e., repeating            b. it facilitates data independence
data within individual cells), each non-key column in a table          c. it increases speed of application development
depends on the entire key, and each non-key column                     d. A and B
depends on the whole key and nothing but the key, the table            e. A, B, and C
is said to be in ________ form.
a. first normal                    b. second normal                    18. The purposes of a database management system are
c. third normal                    d. Boyce-Codd normal                a. to provide shared access to the data, answer questions, and
e. None of the above                                                   create reports from the data

                                                                                                                                        10
b. to create files, format the files, and retrieve the data         b. determine what you want to see
c. to create data definitions, maintain data files, and manage      c. what tables are involved
database size                                                       d. translate business questions into queries
d. to collect and store data, manage data catalogs, and provide
data definitions                                                    28. In building queries, you need to
                                                                    a. know how to write SQL
19. One important characteristic of databases is that they          b. know how to use QBE
are designed to                                                     c. know what all of the tables mean and exactly what type of
a. become a massive database                                        data is store in each column.
b. affect managers’ performance                                     d. know how to perform simple calculations
c. help users examine the data from a variety of perspectives
d. maintain database at manageable size                             29. When designing databases, it is essential to
                                                                    a. learn SQL
20. In a relational DBMS, all data is stored in                     b. understand the relationship between various entities
a. trees with many data braches                                     c. look at the data from different views
b. networks with many data nodes                                    d. cram all of data into a single table
c. separate data files
d. tables of columns and rows of data                               30. The tables you design depend on the way the business is
                                                                    organized because data normalization is directly related to
21. _________ means that the data and programs ae                   a. the business processes        b. the company leadership
separate, which makes it possible to alter the database tables      c. the MIS team                  d. the DBMS
as needed, without destroying the programs.
a. Data volume                    b. Data integrity                 31. A table that contains repeating sections is not in
c. Data independence              d. Data focus                     a. first normal form              b. second normal form
                                                                    c. third normal form              d. fourth normal form
22. The QBE approach begins by asking you a hard question
first:                                                              32. A table in ________ means that each nonkey column in a
a. What output do you want to see?                                  table depends on the entire key.
b. What constraints are you given?                                  a. first normal form             b. second normal form
c. Which tables are involved?                                       c. third normal form             d. fourth normal form
d. How are the tables joined together?
                                                                    33. The conditions required for third normal form are
23. Using QBE, if the conditions are placed in the same row,        a. no repeating sections in the tables, one key in each table, and
they will be interpreted as _______ conditions; if conditions       one-to-many relationship between tables
are placed on separate rows, the interpretation is a(n)             b. no repeating sections in the tables, one-to-one relationship,
________ condition.                                                 and one-to-many relationship
a. AND, OR                b. OR, AND                                c. one key in each table, each non-key column depends on the
c. LIKE, WHILE            d. WHILE, LIKE                            key and nothing but the key
                                                                    d. no repeating sections in the tables, each non-key column
24. _________ is an international query language for                depends on the whole key and nothing but the key
retrieving data from database management systems.
a. QBE                    b. SOL                                    34. An input form is used to
c. COBOL                  d. Java                                   a. allow you to enter data directly into the tables
                                                                    b. create a completely new table and build the relationship
25. The true strength of a database management system lies          c. collect data from the user and perform basic computations
in its ability to                                                   d. enter data automatically and present a report quickly
a. combine data from multiple tables
b. retrieve data from any form of query system                      35. Application generators are tools that enable you to
c. create reports easily from a single table                        a. combine the various features into a single application
d. use the graphical QBE commends                                   b. combine many tables into a single table
                                                                    c. write an application with any programming language
26. The advantage of views is that you can                          d. match the application with the database
a. put all data from all tables into one table
b. block other users to see the data                                36. A database administrator is responsible for
c. look at the data in different ways without having to duplicate   a. defining the data, increasing storage space, generating reports,
the data                                                            and writing sorting demands
d. copy the data easily to another file                             b. determining the columns for each table, defining primary key
                                                                    for each table, and building relationships
27. The real challenge of using QBE and SQL is to                   c. creating the tables, building the relationships, creating input
a. write down the basic SQL clauses                                 forms, and generating reports

                                                                                                                                    11
d. coordinating users and designers, establishing data standards,     d. Each non-key column depends on the whole key, while
defining the data characteristics, and establishing security          many-to-many relationships are not supported because they are
safeguards                                                            not necessary

37. It is important to choose the right tool for your job.            44. When each non-key column in a table depends on the
_______ excel at handling huge amounts of data and sharing            entire key, the table is in:
it with other users; ________ are designed to perform                 a. First normal form           B. Second normal form
calculations and create graphs.                                       c. Third normal form           d. Fourth normal form
a. Spreadsheets, databases
b. Databases, spreadsheets                                            45. The advantage of views is that you can:
c. SQL, QBE                                                           a. Put a password on the view
d. QBE, SQL                                                           b. Limit the accessibility to immediate users
                                                                      c. See all the data in all the files in one report
38. Once tables are joined, the DBMS retrieves and displays           D. Look at the data in different ways without having to
the data:                                                             duplicate the data
a. Sequentially by record number
B. As if it were stored in one single table                           46. SQL has two advantages over QBE:
c. With random access                                                 a. It is easier to write, and it is a standardized language
d. For any report required                                            b. It is a standard language supported by many different
                                                                      database systems; and it is easier to read
39. Two competing architectures exist for eCommerce based             c. It becomes as the default query generator on most systems,
database applications:                                                and it can transfer to the Internet
a. IBM Websphere, Oracle JDeveloper                                   d. It is easier to write, and it can transfer to the Internet
B. Sun J2EE, Microsoft .Net
c. J2EE, IBM Websphere                                                47. Using QBE, if the conditions are placed on different
d. .Net, DCOM                                                         rows, the interpretation is a(n) _____________ condition.
                                                                      a. LIKE                   b. OR
40. When designing databases, it is essential to understand:          c. AND                    d. WHILE
a. DBMS training for management
b. The main format                                                    48. A nice feature of the DBMS is that the underlying tables:
c. The number of columns for each table                               a. Can be used separately by different departments
d. The relationships between various entities                         B. Can be expanded and new tables can be added without
                                                                      interfering with the existing tables or current programs
41 The SQL command to retrieve all the data in the Orders             c. Can be updated by multiple users at once
file is:                                                              d. Are always consistent
a. SELECT FROM Orders WHERE *
b. SELECT * FROM Orders                                               49. Using QBE, if the conditions are placed on the same row,
c. Orders, ALL                                                        the interpretation is a(n) _____________ condition.
d. Select * WHERE FILE Orders                                         a. LIKE                    b. OR
                                                                      c. AND                     d. WHILE
42. Data administrator (DA) is charged with:
a. Overseeing all of the data definitions and data standards for      50. A table that contains repeating sections is not in _______.
the company                                                           a. First normal form      b. Second normal form
b. Performing sufficient backup of data, ensuring continuous          c. Third normal form      d. Fourth normal form
data flow, planning reports as managers request them
c. Designing the entire system to handle the increased                51. The true power of a DBMS lies in the ability to:
processing, searching, and sorting demands                            a. Use any form of query system if the objects are carefully
d. Looking at the data in different ways without having to            defined
duplicate the data                                                    b. Create reports easily from one table
                                                                      c. Combine data from multiple tables
43. The conditions required for third normal form are:                d. Be understood by general management personnel
a. One primary key for each table, tables linked by order of
primary key, one-to-many relationships are required                   52. The pharmaceutical industry runs on
b. One-to-many, one-to-one, and many-to-many relationships            a. People, Information, and rules
are automatically delineated for each table with respect to all the   b. Information, databases
others                                                                C. Data, information, and knowledge
c. No repeating groups in the tables, each non-key column             d. Laws, knowledge
depends on the whole key, and nothing but the key
                                                                      53. A __________ value is automatically displayed on the
                                                                      input screen until the user enters data into the field.

                                                                                                                                      12
a. valid                       b. high                           c. most viruses are hidden in common applications such as word
c. key                         d. default                        or excel
                                                                 d. most viruses replicate themselves on your computer, but don’t
54. J2EE and .NET are:                                           do any damage
a. systems for building web-based database applications
b. database query languages                                      5. Malware that is designed to hide in your computer and
c. operating systems                                             capture and transmit information such as website visits,
d. ebusiness applications development systems designed to run    logon and passwords, and credit card numbers is called:
under UNIX                                                       a. a virus               b. spyware
                                                                 c. a worm                d. a patch
55. Using the sample table, what is the best key?
CourseID   CourseTitle         InstructorID   Name     Office    6. Which of the following is a good policy for passwords?
BA350      Principles of MIS   123            Jones    104B
                                                                 a. limit the number of characters to less than five so that users
BA465      Systems Analysis    234            Smith    317B
BA350      Principles of MIS   345            Miller   216H      can remember the password and will not need to write it down
BA366      DSS                 123            Jones    104B      b. allow users to keep the same password indefinitely
a.   CourseID                                                    c. allow passwords that contain only letters; do not require a mix
b.   InstructorID                                                of letters and numbers
c.   CourseID, InstructorID                                      d. force users to change their passwords every 2-3 months
d.   CourseID, CourseTitle
                                                                 7. Access controls include all of the following EXCEPT:
56. In the sample table, what is the relationship between the    a. mail                   b. read
entities Course and Instructor?                                  c. write                  d. modify
a. one-to-one                      b. one-to-many
c. many-to-many                    d. composite                  8. PKI, or public key encryption
                                                                 a. uses a single key
57. In the sample table, in what normal form is the table?       b. is faster than single key encryption
a. First, but not second or third                                c. requires both a public key and a private key
b. Second, but not third                                         d. can be used to detect viruses in email
c. Third
d. It is impossible to determine                                 9. According to your text, the most important security tool
                                                                 for ecommerce is
Chapter 5                                                        a. backup                 b. encryption.
                                                                 c. intrusion detection    d. firewalls
1. Computer security threats include all of the following
EXCEPT:                                                          10. The network providing secure lines for transactions
a. denial of service                                             across the internet is called a(n):
b. internal threats from employees                               a. Virtual private network (VPN) b. Carnivore
c. incompatible standards                                        c. Echelon                          d. PGP
d. hurricanes
                                                                 11. In wireless networks, encryption:
2. According to your text, the two most significant threats to   a. speeds up communications       b. slows access
computer systems today are:                                      c. decreases security             d. is impossible
a. the people inside the organization and viruses
b. external hackers and viruses                                  12. A key aspect of security and encryption is the need to
c. failure to have adequate backup and external hackers          _________. Consequently, the flip side of many security
d. failure to have adequate backup and viruses                   policies is the _______.
                                                                 a. update data, loss of control
3. Disaster recovery services provide support in the form of     b. identify users, loss of privacy
“hot” and “cold” sites. A “hot site” provided by a disaster      c. improve security, loss of flexibility
recovery service is:                                             d. increase control, loss of power
a. a facility wired for equipment, but lacking the equipment
itself                                                           13. Since the Internet is a ___________ network, data needs
b. a location for isolating machines infected by viruses         to be ________ in transmission to ensure it is not _______ or
c. a remote site used for data mirroring                         altered.
d. a fully configured computer center                            a. shared public, protected, intercepted
                                                                 b. private, blocked, shared
4. Which of the following statements about viruses is            c. secured, decoded, shared
FALSE?                                                           d. public, shared, charged
a. most viruses are transmitted as email attachments
b. most viruses are written in visual basic                      14. The biggest information threat is from

                                                                                                                                13
a. managers and customers                                            a. virus                  b. Trojan houses
b. earthquakes and fires                                             c. time bomb              d. spyware
c. legitimate users and developers
d. virus and time bomb                                               23. Computer security systems need to protect against three
                                                                     general problems: _________, ________, and _________.
15. Companies enforce a separation of duties among                   a. visiting web sites during office hours, careless use of
a. managers and workers                                              password, employee mistakes
b. employees and customers                                           b. unauthorized disclosure of information, unauthorized
c. staff programmers and system users                                modification, unauthorized withholding of information
d. managers and customers                                            c. downloading programs from Internet, open attachments,
                                                                     install spyware
16. A danger to computer security is that __________ might           d. employee mistakes, insufficient backup, unauthorized access
include a(n) _____________ that allows them to gain access           from outsiders
to the software even if they leave the company.
a. managers, time bomb                                               24. For years, the most common means of identifying
b. users, virus                                                      computer users is through ________. More recently, interest
c. customers, secret door                                            in _________ has been increasing.
d. programmers, trapdoor or secret password                          a. physical identification, password
                                                                     b. user identification, password
17. The best way to minimize security problems from                  c. usernames and password, biometrics
employees stems from typical management techniques:                  d. firewall, certificates
a. hire workers carefully, treat employees fairly, have separation
of jobs, use teamwork, and maintain constant checks on their         25. Companies are moving to two-factor authentication,
work                                                                 where
b. hire security employees, treat managers well, promote             a. a user needs a password and a second method of identification
employee often, use teamwork, and reward good performance            b. a user needs a password and username
c. change password frequently, limit employees to use                c. a user needs two different passwords
computers, and check employee e-mail constantly                      d. a user needs two different username
d. block employee e-mails, change password frequently, use
teamwork, and limit managers to use computers                        26. The common access controls available are
                                                                     a. add, delete, and modify
18. The biggest problems today arise from a group labeled            b. read, copy, and paste
________, who download system scanning/attack software               c. read, write, execute, and delete
from the Internet and randomly search computers for holes.           d. read, save, send, and delete
a. social engineering            b. hacker
c. outsiders                     d. script kiddies                   27. In a dual-key system, whenever someone wants to send
                                                                     you a secure message, he/she simple uses the ______ and
19. One key to protecting your servers is to make sure they          your ________. The message can only be decrypted using
have all the                                                         your ______.
a. virus kits            b. current operating system patches         a. RSA algorithm, public key, public key
c. Internet connections  d. downloadable programs                    b. RSA algorithm, public key, private key
                                                                     c. public key, private key, private key
20. Microsoft Office software presents a major point of              d. private key, public key, private key
vulnerability because the tools support
a. multiple users                                                    28. Most web sites use dual-key encryption through a system
b. multi-tasking                                                     known as
c. a macro programming language called Visual Basic for              a. secure sockets layer           b. virtual private network
Applications                                                         c. certificate authorities        d. digital certificates
d. many programming languages for applications
                                                                     29. Any time you open a connection from the Internet to
21. The best way to stop a virus is to                               your company data, _______ and ______ are two important
a. find a virus software kit                                         provisions.
b. accept e-mails only from friends                                  a. firewall, security access controls
c. not run software downloaded from Internet, and never open         b. security access controls, database security controls
script attachments sent through e-mail                               c. packet analysis, firewall
d. update your anti-virus daily and stay off the Internet            d. firewall, intrusion detection

22. A ________ takes residence inside your computer and              30. __________ are essentially routers that examine each
captures all of your activities such as Web sites visited,           packet of network data passing through them and block
passwords entered, and credit card numbers.

                                                                                                                                  14
certain types to limit the interaction of the company network        38. Another alternative disaster recovery support, called a
with the Internet.                                                   cold site, which provides:
a. Zombie computers         b. Internet protocols                    A. Fully functional computer room space, without the computer
c. Firewalls                d. Logical ports                         equipment
                                                                     b. A fully configured computer center
31. A(n) ________ is a combination of hardware and                   c. A software system
software that use a set of rules to monitor all Internet traffic     d. A secured PC
and search for patterns.
a. cable modem             b. firewall                               39. The difference between a hot site and a cold site is:
c. logical port            d. intrusion detection system             a. The hot site uses data mirroring techniques, the cold site uses
                                                                     backups
32. The three most difficult problems with protecting                B. The hot site has specific computer equipment already
transaction and accounting data are:                                 installed and ready to go, the cold site provides computer room
a. Employee mistakes, unauthorized access from outside               space
suppliers, loss of information through insufficient backup           c. The hot site is located within a ten mile radius, the cold site
b. Employee mistakes, unauthorized modification, insufficient        can be anywhere in the world
backup                                                               d. The hot site has programmers on hand to help; the cold site is
C. Unauthorized disclosure of information, unauthorized              staffed by the company involved
modification, unauthorized withholding of information
d. Unauthorized access from outside suppliers, sequestered           40. One key to protecting your servers is to make sure they:
information, careless use of password                                A. Have all current operating system patches
                                                                     b. Have good physical security
33. The fact that every device connected to the Internet is          c. Don't have too many people with password access to them
given a unique number as an address means that:                      d. Undergo continuous backup
a. Privacy is a dead issue
B. Every Web site you visit can track that number                    41. Microsoft Office software presents a major point of
c. Message can be tracked to the server from which they              vulnerability because the tools:
originated                                                           A. Support a macro programming language called Visual Basic
d. We are soon to run out of usable numbers                          for Applications
                                                                     b. Support FORTRAN for Applications
34. Data Encryption Standard (DES) system supported keys             c. Supports hypertext markup language
of:                                                                  d. Supports COBOL language for business applications
a. 256 bits             b. 3 bytes
c. 64 bits              D. 56 bits                                   42. The best way to stop a virus is:
                                                                     a. Keep your virus software updated daily
35.In a dual-key system, whenever someone wants to send a            B. Do not run software downloaded from Internet, and never
secure message, he or she simply uses ______________ and             open script attachments sent through e-mail
_______________.                                                     c. Stay off the Internet
A. RSA algorithm and public key                                      d. Accept mail only from persons you know
b. Private key and public key
c. Private key and private key                                       43. The biggest difficulty with user defined passwords is
d. Public key and public key                                         that:
                                                                     A. Users try to choose one they will remember--which is usually
36. PKI can be used for:                                             too simple
a. Browsing                                                          b. The system administrator knows them all
B. Authentication                                                    c. They are too easy to guess
c. A free encryption system, but monitored by the government         d. A hacker can keep trying until he/she gets a hit
d. Clipper chip encryption
                                                                     44. For securing backup files, smaller businesses can use:
37. For a firm to maintain virtually continuous information          a. Their own tape drives
system support, these are required:                                  b. Trade-off backups with non-competitors
A. Adequate backup copies, careful planning, organization, and       c. Hard-copy printouts
enough money                                                         D. Commercial data storage facilities
b. Adequate backup, trustworthy employees, trained personnel,
and a disaster plan                                                  45. The common access controls available are:
c. Trained personnel, a disaster plan, good security procedures,     a. Read, write, copy, delete
and adequate backup                                                  b. Create, modify, save, retrieve
d. Organization, trained personnel, a disaster plan, good security   C. Read, write, execute, delete
procedures                                                           d. Format, save, retrieve, send


                                                                                                                                    15
46. The essence of single-key encryption is that:
A. Both the person who encrypts the message and the person           5. Practices used to protect the integrity of data and guard
who decrypts it use the same key                                     against fraud include which of the following?
b. The message is encrypted twice                                    a. double entry accounting          b. separation of duties
c. The sender and receiver use different software for encryption     c. audit trails                     d. all of the above
and decryption
d. Both people do not need to have the same key                      6. Payroll reports, checks, position vacancies and
                                                                     government regulations are outputs generated by:
47. The essence of a dual-key system is that:                        a. the inventory system
a. The message is encrypted twice                                    b. the accounting system
B. It takes both keys to encrypt and decrypt a message               c. the human resource system
c. If one key doesn't work, the other will                           d. the production system
d. All keys can be private keys
                                                                     7. JIT (just-in-time) systems are designed to:
48. Alert customers can spot the fraud immediately, because          a. reduce inventory and associated costs
the_________ in the browser will be wrong.                           b. produce reports for OSHA
a. DTP                   B. URL                                      c. improve managers’ ability to schedule production processes
c. PIM                   d. CAD                                      d. respond to new government regulations

49. Encryption is particularly useful for:                           8. Systems that concentrate on the production side of ERP
a. Criminals                                                         are known as:
b. Terrorists                                                        a. customer relationship management (CRM)
C. Sending credit card data over the Internet                        b. supply chain management (SCM)
d. Banking houses                                                    c. just in time systems (JIT)
                                                                     d. executive information systems (EIS)
Chapter 6
                                                                     9. Which of the following statements about CRM systems is
1. Which of the following are examples of systems designed           FALSE?
to speed data entry by collecting transaction data                   a. CRM systems focus on contacts and sales
automatically?                                                       b. CRM systems are designed to improve customer service
a. accounting, finance, and production                               c. One of the main difficulties in CRM systems is data entry
b. mouse, keyboard, and scanner                                      d. CRM systems are new and their effectiveness is unknown
c. POS, EDI, and process control
d. XML, HTML, and EDI                                                10. Executive Information Systems
                                                                     a. have reduced the need for middle managers, whose job it was
2. Process control systems:                                          to provide data and reports to executives
a. enable organizations to change products and processes             b. are relatively intrusive systems
quickly                                                              c. provide data and reports to managers, but do not usually allow
b. allow organizations to transfer documents between firms           managers to drill down to learn more
electronically                                                       d. are difficult to use
c. make it more difficult to control quality
d. reduce the amount of data collected during the production         11. The focus of a transaction-processing system is twofold:
process                                                              _________ and ________.
                                                                     a. capturing data, storing data
3. The primary purposes of accounting system include all of          b. accomplishing the transaction, capturing data
the following EXCEPT:                                                c. collecting data, generating reports
a. capturing financial data                                          d. collecting data, analyzing the data
b. verifying customer identification
c. ensuring accuracy of transaction data                             12. Many stores use the data-collection method called
d. creating standard reports                                         ___________, where the sales register is actually a computer
                                                                     terminal that sends all data to a central computer.
4. Which of the following statements about general ledger            a. process control        b. bar code scanner
systems is true?                                                     c. point of sale          d. electronic data interchange
a. Managers can set their own categories for the chart of
accounts.                                                            13. Sharing data in EDI requires
b. Managers must use a standard chart of accounts used by all        a. a communication link and standards that define how the data
organizations.                                                       will be interpreted
c. The IRS/tax authority requires specific standards for the chart   b. common access control and procedures
of accounts.                                                         c. high bandwidth communication line and the same operating
d. The chart of accounts must be the same for all countries.         systems

                                                                                                                                   16
d. standardized format and security practice                         22. One of the primary strengths of the ERP systems is that
                                                                     they were designed to handle data for large companies
14. Extensible markup language (XML) was developed in                operating in
the last couple of years to                                          a. a local market environment
a. handle multiple connections to users                              b. multi-market environment
b. reduce EDI transactions                                           c. the national market
c. improve Web design                                                d. an international environment
d. provide better Internet support for EDI
                                                                     23. In today‟s manufacturing companies, logistics is
15. From the perspective of a vendor, the fundamental                important components of _______ inventory and ________
aspect of transactions is to                                         production.
a. receive the identified value for the product                      a. just-in-time, demand-driven
b. audit the transactions records and financial statements for the   b. just-in-time, mass
protection of investors                                              c. warehouse, just-in-time
c. receive the money from the transaction                            d. warehouse, build-to-order
d. let the credit card companies to take the risk
                                                                     24. ERP integration means that
16. The accounting system                                            a. all departments use one centralized computer
a. collets data throughout the company and produces centralized      b. all departments use one huge software application
reports that are used for planning and management                    c. all the computers are controlled by MIS department
b. facilitates the departments to share data and improve             d. all the data is stored in a central database
relationship with customers
c. breaks the data into specific categories such as accounts         25. One important catch with an ERP system is that it
receivable, accounts payable, inventory and cash                     requires changes to
d. collect data automatically and share data with customers          a. the real-time inventory level
                                                                     b. the way hardware and software are installed
17. Companies often build _________ into the accounting              c. the way the company operates
system that are triggered when some event occurs.                    d. the build-to-order production
a. exception reports     b. general ledger
c. chart of accounts     d. accounting journal                       26. The ___________ is the process of manufacturing
                                                                     products designed for specific consumers but using mass-
18. With EDI, the inventory control system can _______ and           production techniques to keep costs low.
________.                                                            a. mass production
a. know what items are available, know where they are located        b. mass customization production
b. monitor current sales, automatically place orders with the        c. customized production
supplier                                                             d. special order production
c. find items in warehouse, deliver to the customers
d. determine inventory level, prepare the reports                    27. The overall goal of JIT is to ________ and to eliminate
                                                                     bottlenecks by ________.
19. The goal of maintaining the integrity of the financial           a. reduce production costs, reducing the need for huge
data is to                                                           inventories
a. make sure the data was recorded                                   b. reduce production costs, increasing the number of suppliers
b. control inventory and improve sales                               c. keep production costs at a fixed level, increasing production
c. prevent mistakes and discourage fraud                             lines
d. track backward through the data to the source                     d. keep production costs at a fixed level, increasing inventory
                                                                     levels
20. An ERP system can integrate almost all aspects of the
company into ________ where management can retrieve any              28. XML is a tool that was established to help companies
piece of data by selecting options.                                  a. collect data          b. process data
a. one web site            b. one huge database                      c. analyze data          d. exchange data
c. one central computer d. one reporting system
                                                                     29. The main purpose of ________ systems is to provide
21. One of the key points of ERP systems is that they run on         individual attention to each customer to improve sales.
_________; hence, all of the data is centralized and                 a. ERP                    b. SCM
accessible via DBMS queries and reports.                             c. CRM                    d. DBMS
a. a web site
b. individual computers                                              30. The Sarbanes-Oxley Act requires top executives of
c. transaction processing systems                                    public companies to
d. top of a DBMS                                                     a. validate inventory numbers by physically counting the items


                                                                                                                                    17
b. sign a statement attesting to the validity of the annual          a. Patriot
financial statements                                                 b. Sarbanes-Oxley
c. examine all aspects of the transaction-processing system          c. Immigration
d. check physical assets to ensure that the numbers listed on the    d. Uniform Computer Information Transaction
financial statements tied to real-world data.
                                                                     39. To eliminate parts inventories held by manufacturers,
31. The two basic difficulties with process control are:             manufacturing firms implement:
a. Computer malfunctions and heat on the production floor            a. Human resources planning
b. Shift changes of personnel and the amount of data produced        b. Vendor verifications
c. Computer malfunctions and establishment of standards for          c. JIT inventory control
large number of machines                                             d. Checks and balances on their production systems
d. The amount of data produced and the establishment of
standards for large number of machines                               40. An important feature of the accounting system is that:
                                                                     a. Standard accounting reports can be generated at specific times
32. The major advantages to process control are that it              for different sections of the company
allows:                                                              b. Accounting reports can be generated at specific times for
a. Quick changes in production processes and products, better        different sections of the company
information, mass customization                                      c. Accounting reports can be generated at any time for some
b. Quick product updates, better reports faster, less training for   selected sections of the company
employees                                                            d. Standard accounting reports can be generated at any time for
c. Better data collection, occasional customization, efficient       any section of the company
production of standardized items
d. Problems show up faster, product characteristics are more         41. ERP integration is characterized by:
accurately measured, fewer employees are required                    a. Restricting data within departments
                                                                     b. Computers acting as drones for a centralized system
33. It is critical that transaction data be saved so that:           c. Providing security
a. The IRS can document the transactions of the company              d. Automate buyer, planner, and supplier functions in a shared
b. Auditing by an outside agency may be validated                    database.
c. Reports will be accurate
d. Verification may be made if conflicts arise                       42. Supply chain management (SCM) concentrates on the
                                                                     production side of
34. When many firms need to exchange data with several               a. ERP                 b. TPS
other firms, it is best if:                                          c. DSS                 d. EIS
a. All data are encrypted
b. The firms operate in an atmosphere of mutual trust                43. ________________ is the process of manufacturing
c. The largest firm sets the EDI format                              products designed for specific consumers but using mass-
d. They can agree to a common EDI transaction format                 production techniques to keep costs low.
                                                                     a. Mass production                b. Mass customization
35. A significant difference between the two primary                 c. Customization                  d. Total quality management
standards now in existence for EDI messages is:
a. One uses IBM formats, the other uses SUN systems                  44. ERP systems often have a CRM component that
b. The numbering system used to represent message types,             provides a unified view of
segments, and data elements                                          a. Sales data             b. Customer data
c. The data elements are different                                   c. Vendor data            d. Management data
d. One is faster, though much less secure, than the other
                                                                     45. ERP systems have self-service portals that enable
36. Extensible markup language (XML) was developed in                customers to check:
the last couple of years to:                                         a. The status of various items, order new products, and contact
a. Provide better Internet support for EDI                           the company
b. Provide better Web design support                                 b. The status of the relationship between managers and workers
c. Provide better HTML programming support                           at the tactical level
d. Provide better image compression technique                        c. The relationship between the managers and workers at the
                                                                     operational level
37. Credit card companies accept risks for the                       d. The relationship among the managers at different business
_______________ but not for the _________.                           levels.
a. Vendors, consumers   b. Consumers, vendors
c. Creditors, vendors   d. Manufacturers, consumers                  Chapter 7

38. Congress passed the _______________ Act that requires            1. For which of the following ecommerce areas is it hardest
executives to take responsibility for all financial reports.         to find examples in today‟s economy?

                                                                                                                                   18
a. B2B            b B2C                                              a. auctions use fixed prices
c. C2C            d. C2B.                                            b. auctions are good for high-priced items
                                                                     c. auctions are good for very low-priced items
2. Which of the following consumer benefits is better                d. auctions are good if you have a small number of items to sell
through traditional stores than in an internet setting?
a. the ability to search for a product                               10. Catalog management systems
b. the ability to compare prices                                     a. are easy for nonprogrammers to use
c. the ability to test products                                      b. help maintain a database of products
d. the ability to reach a large audience                             c. are designed to aid in updating content
                                                                     d. all of the above
3. Airlines selling tickets directly to consumers over the
internet, without requiring consumers to work through                11. Which of the following is viewed as an advantage of
travel agents, is an example of:                                     using an Application Service Provider (ASP) instead of
a. B2B                      b. disintermediation                     developing and supporting applications in-house?
c. C2C                      d. an auction                            a. cost
                                                                     b. flexibility in customizing applications
4. Digital Rights Managements is focused on:                         c. control over systems
a. preventing unauthorized copying of digital media                  d. ability to integrate applications with internal operations
b. ensuring that users have the right to access public data
c. ensuring that individual privacy rights are not violated on the   12. Many Web 2.0 firms like YouTube and MySpace
internet                                                             specialize in new service and provide
d. ensuring equal access to all individuals                          a. general products or service
                                                                     b. a framework for interaction and let users provide content
5. Which of the following statements about payment                   c. mail order service
methods and risk mitigation is TRUE?                                 d. retail sales
a. A consumer’s credit card information is more likely to be
stolen during transmission across the internet, than once it has     13. The fundamental goal of e-business is to increase sales
been stored in the          company computer.                        and reduce costs by
b. Credit card companies protect vendors, but not consumers.         a. improving relationships with existing customers, and by
c. As a percentage of total transactions, credit card fraud is       reaching new customers and providing new service
lower for online merchants than for traditional merchants.           b. managing information systems and handling data over the
d. Vendors have little or no protection from fraud in online         Internet
transactions.                                                        c. promoting product and service over the Internet
                                                                     d. selling products and service over the Internet
6. Which of the following statements about credit card
transactions is FALSE?                                               14. These business-to-consumer (B2C) foundations were
a. Credit cards have a relatively high transaction cost              created to facilitate purchasing and distribution in a world
b. Credit cards are not a feasible payment system for small          with
dollar amounts                                                       a. a specific mix of products
c. Credit card companies provide no protection for consumers         b. a relatively standard mix of products
d. Credit cards are the most common form of currency on the          c. high transportation costs and low communication costs
web                                                                  d. limited delivery systems and high communication costs

7. Which of the following statements comparing advertising           15. EC is not just an issue with new firms. In many ways,
on the Web and advertising in traditional media is TRUE?             existing firms have the most to gain from EC, because they
a. Web ads are easier to modify than ads in traditional media        can
b. Traditional ads are more easy to tailor to a specific audience    a. bypass the retail stores completely
c. Web advertising is more expensive than advertising in             b. change the ordering systems
traditional media                                                    c. leverage their existing strengths
d. Traditional ads reach a broader audience than web ads             d. negotiate process without expensive sales visits

8. Which of the following statements about basic static              16. A couple of simple rules dominating marketing include:
HTML web sites is FALSE?                                             a. Consumers prefer instant gratification; they prefer to pay a
a. the sites are usually interactive                                 lower total price; and they prefer to see and touch many
b. the sites are relatively hard to change and update                products before they buy them.
c. the sites seldom contain search and filter options                b. Producers provide a large selection of products in store and
d. the sites are relatively easy to create                           provide pictures and descriptions about their products over the
                                                                     Internet
9. Which of the following statements about auction sites is          c. Retailers create giant stores with a relatively standard mix of
TRUE?                                                                products

                                                                                                                                     19
d. Manufacturers find new ways to distribute food and clothing.
                                                                   26. One of the most important decisions to make regarding
17. The essence of a profitable Web site for products is to        the Internet is
identify items that can benefit most from                          a. where to find the programmers
a. flexible method of sharing data with suppliers and customers    b. how to create Web files
b. automated intelligence to handle ordering basic items           c. how to add photos on the Web site
c. the Internet features that are superior to traditional stores   d. where to locate the Web files
d. purchasing repeat items in bulk
                                                                   27. A major factor in the Web-hosting decision is
18. Economic theory shows that well-run B2B auctions are           a. to provide high-speed Internet connections
the most efficient way to                                          b. the degree of integration you want to establish between the
a. establish long-term relationship with a limited number of       Web site and your existing business application
companies                                                          c. to provide a variety of leasing options
b. negotiate the contract with the suppliers                       d. the characteristics of your business
c. establish an efficient market price
d. determine an asking price                                       28. Transaction on Web sites are often handled by
                                                                   _________, which provide all of the features needed to run a
19. On the production chain, the airlines bypassed the             commercial Web site.
intermediaries to sell directly to the consumers – a process       a. Web auctions                   b. Web commerce servers
known as                                                           c. Google                         d. Market Place
a. direct sales            b. e-commerce
c. disintermediation       d. vertical integration                 29. A _________ is designed to help you maintain a database
                                                                   of products for sale on Web sites.
20. The ________ Web sites provide new tools for people to         a. catalog management system
interact with each other, offering more reasons to spend           b. content management system
time online.                                                       c. catalog database system
a. auction                b. search engine                         d. content database system
c. e-commerce             d. social networking
                                                                   30. A _______ is designed to make it easy for
21. The challenge with consumer-oriented service Web sites         nonprogrammers to update content, maintain a consistent style,
is to                                                              and keep track of changes to a Web site.
a. make money                   b. find a hosting server           a. catalog management system
c. charge for the service       d. to market the new service       b. content management system
                                                                   c. catalog database system
22. Credit card companies accept risks for the _________,          d. content database system
but not for the _______.
a. banks, consumers              b. consumers, vendors             31. A(n) ________ is a Web-based business that provides a
c. firms, consumers              d. banks, vendors                 specific service to other businesses.
                                                                   a. Internet service provider        b. wireless service provider
23. The goal of digital cash payment mechanism is to create        c. application service provider     d. Web hosting provider
an electronic form of money
a. that can be verified                                            32. ____________ Web sites supported by ______________
b. that can support anonymity                                      can help customers select options and products or solve
c. that cannot be easily counterfeited                             problems.
d. all of above                                                    a. Library of Congress, decision support systems
                                                                   b. Chatting, transaction processing systems
24. To a consumer, __________ is an important element of           c. Educational, management information systems
buying products over the Internet.                                 d. Intelligent, expert systems
a. the location of a company
b. the size of a company                                           33. In 2003, Congress allowed the federal moratorium on:
c. name recognition of a company                                   a. Telephone taxes to expire
d. the income level                                                B. Internet taxes to expire
                                                                   c. Tobacco taxes to expire
25. Google keyword ads mean that                                   d. Occupancy taxes (staying in hotels) to expire
a. when a user enters that keyword in a Web search, Google
display an ad from a company that purchased that keyword           34. The main benefit of using an outside hosting company is
b. you register your Web site with the search engine for a fee     that:
c. use a search engine optimization to make your Web site          a. It will handle all of the detailed technical issues automatically
appear at the top of the search listing                            b. It will handle some of the technical issues automatically
d. the ads contain images and flash video                          c. It will not handle any of the technical issues

                                                                                                                                    20
d. It will handle some of the technical issues based on certain
conditions                                                         43. _______________ can create new opportunities in mobile
                                                                   commerce to improve contact with customers.
35. Amazon MarketPlace enables merchants to:                       a. Fixed data access   b. Portable data access
a. Sell items by setting dynamic price                             c. Vendor data access  d. Customer data access
Bb Sell items by setting a fixed price
c. Sell items by setting a variable price                          44. Automobile manufacturers find it worthwhile to
d. Sell items by setting no price                                  advertise on sites dedicated to
                                                                   a. Electronic games such as yahoo.com
36. Business-to-business e-commerce has the potential to be        b. Auto travel topics such as mapquest.com, yahoo.com
substantially more important than:                                 C. Automotive topics such as vehix.com, Edmunds, and
a. B2C e-commerce         b. Traditional businesses                autobytel.com
c. Auction sites          d. Local firms                           d. Auto repair topic such as autorepair.com

37. The consumer issues C2B and C2C make up:                       45. Electronic marketplaces and auctions enable businesses
a. A major portion of e-commerce                                   to find:
B. A minor portion of e-commerce                                   A. New suppliers and obtain supplies on short notice
c. A major aspect of business tactics                              b. New customers
d. A minor aspect of business tactics                              c. Programmers
                                                                   d. Technicians
38. The MarketPlace system has a good search engine and
works well for:                                                    Chapter 8
A. Small retailers who wish to maintain a continued presence on
the Web                                                            1. Which of the following technologies is most intrusive?
b. Large retailers who wish to maintain a continued presence on    a. email                 b. voice mail
the Web                                                            c. instant messaging     d. phone call
c. Large retailers who do not care for continued presence on the
Web                                                                2. Which of the following statements is TRUE?
d. Medium size retailers who not care for continued presence on    a. email is synchronous
the Web                                                            b. it is easy to store and search voice mail by topics
                                                                   c. email allows concurrent updates of attachments
39. One of the key aspects in B2C e-commerce is the ability        d. voice mail can be sent to multiple recipients
to bypass:
A. Entire section of the production chain                          3. From the sender‟s perspective, email, voice mail and
b. Some part of the production chain                               Instant Messenging are
c. Entire section of the supply chain                              a. Pull technologies
d. Some part of the supply chain                                   b. Push technologies
                                                                   c. Synchronous technologies
40. ___________________ was a dominant factor in the               d. useful as standalone groupware systems
failure of many of the early e-commerce firms.
a. Internet sales revenue                                          4. Which of the following is a PULL technology?
B. Internet advertising revenue                                    a. email                 b. voice mail
c. Internet auction sales revenue                                  c. instant messaging     d. blog
d. Internet-based clothes sales revenue
                                                                   5. Which of the following is a broadcast technology?
41. XML is creating opportunities for a new type of                a. email                 b. instant messaging
___________ Web sites that provide specific services that          c. web pages             d. all of the above
can be sold to other businesses.
a. C2C e-commerce         b. C2B e-commerce                        6. The major problem with videoconferencing systems is:
C. B2B e-commerce         d. B2C e-commerce                        a. they are unreliable
                                                                   b. they require extremely large bandwidth
42. Removing an intermediary:                                      c. they are asynchronous
a. Can increase your losses and cannot be used to reduce prices    d. they do not allow real-time interaction
to capture more market share
B. Can increase your profits and can be used to reduce prices to   7. Systems that support collaboration allow:
capture more market share                                          a. document sharing               b. tracking changes
c. Can decrease your profits and cannot be used to change          c. document protection            d. all of the above
market share
d. Can increase your profits and cannot be used to change          8. The check-out and check-in features of version control are
market share                                                       designed to handle problems related to:

                                                                                                                               21
a. concurrent editing      b. security                          a. network address translation
c. encryption              d. information rights management     b. FTP
                                                                c. Microsoft’s SharePoint system
9. Information rights management involves                       d. Microsoft Outlook Express
a. controlling access to documents
b. using encryption                                             18. Version control is a powerful tool that
c. limiting actions allowed on documents                        a. automatically creates multiple copies of a document
d. all of the above                                             b. automatically saves every revision of a document
                                                                c. tracks the changes everyone makes to the document
10. Which of the following statements about Knowledge           d. track changes and restrict change
Management (KM) Systems is FALSE.
a. KM systems are designed to store data about the context of   19. The power of information rights management is that
decisions                                                       a. the permissions are enforced regardless of how the document
b. KM systems store data about the discussions involved in      was obtained
reaching decisions                                              b. a server is needed to identify the users and provide the
c. the biggest challenge in developing KM systems is            decryption keys
convincing people to share their knowledge                      c. you can prevent your employees from copying files to their
d. KM systems are most useful in manufacturing and production   laptop
operations                                                      d. it makes easy for people to create work on the file together

11. Teamwork revolves around two fundamental concepts:          20. Specialized tools such as ________ were created to help
______ and _______.                                             groups make decisions.
a. communication, collaboration                                 a. expert system
b. group meeting, note taking                                   b. management information system
c. cost-saving, communication                                   c. group decision support system
d. net-meeting, electronic conference                           d. accounting system

12. _________ make(s) the scheduling a meeting or               21. In a GDSS, one feature of using the computer for the
conference a little easier.                                     entry of ideas and comments is that they can be ______, so
a. E-mail                   b. Electronic calendar tools        people are free to submit riskier ideas.
c. Instant messaging        d. Voice mail                       a. traced back to the original author
                                                                b. recorded and printed
13. Blogs technology was largely developed to overcome the      c. criticized
difficulties in                                                 d. anonymous
a. writing diaries
b. placing messages                                             22. Unlike in a traditional meeting, with a GDSS, your focus
c. creating and updating Web sites                              is continually drawn to the many different comments and
d. broadcasting messages                                        discussions taking place
                                                                a. at different times              b. at different places
14. ________ were created to help manage and control            c. at the same time                d. at the same place
groups of workers on large projects.
a. Electronic calendar tools                                    23. The use of a GDSS requires a _______ -- someone who
b. Scheduling tools                                             can lead discussion, help users, and control the GDSS
c. Graphic presentation tool                                    software on the network.
d. Project management tools                                     a. primary decision maker          b. trained facilitator
                                                                c. project manager                 d. CEO
15. Videoconference systems provide __________ so people
in different locations can hear and see each other.             24. A knowledge management (KM) system is designed to
a. television displays                                          a. store any type of data needed to convey the context of the
b. real-time voice and video connections                        decision and the discussion involved in making the decision.
c. scheduling and communication tools                           b. store scientific research articles
d. multiple cameras at each location                            c. retrieve information from local or company’s library
                                                                d. contain information about all products
16. The primary drawback of videoconference systems is the
_______ required to transmit realistic video data.              25. One of the biggest challenges with KM systems is
a. cameras              b. displays                             a. creating a giant database to store company’s information
c. bandwidth            d. microphones and video cameras        b. creating an organizational environment that encourages
                                                                decision makers to store their knowledge in the system
17. Most companies use __________ in their routers to           c. organizing information to assist people in research
isolate their internal networks from the Internet.              d. identifying related problems or consequences

                                                                                                                                22
                                                              35. Instead of relying on rigid management hierarchies,
26. Multi-touch screens create a new interface for            a. Small teams can be created to solve problems as they arise
interacting with ________ and enable several people to        b. Each employee is empowered to solve problems as they arise
_______.                                                      c. Employees at the operational level are asked to solve
a. people, work on objects at different times                 problems as they arise
b. computers, work on objects at different places             d. Employees at the tactical level are asked to solve problems as
c. objects on the screen, work on objects at the same time    they arise
d. manager, speak to the manager at the same time
                                                              36. If you need to solve a difficult problem, you could turn to
27. To collaborate with shared documents, all participants    the ______________ to find similar problems or suggestions
need to be able to                                            from workers who faced the same problems.
a. receive the files through e-mail system                    a. Database                b. Knowledge base
b. read and write the files in the exact same format          c. Transaction systems     d. Management systems
c. forward the files to other members
d. modify the files at the same time                          37. If designed properly, a GDSS can give each participant:
                                                              A. Access to the corporate data while he or she is in the meeting
28. In 2006, the International Organization for               b. Access to the software programs while he or she in the office
Standardization approved the _______ as a world-wide          c. Access to the company library while he or she is in the office
standard for storing common office documents.                 d. Access to the list of hardware while he or she is traveling
a. XML            b. proprietary Microsoft format
c. HTML           d. Open Document Format                     38. In BPM, a large purchase requires:
                                                              a. Approval and evaluation by the head of the department
29. As a communicator, one of your challenges is to           B. Approvals and evaluations by several groups
a. choose the appropriate communication channel for the       c. Approval and evaluation by the CEO
specific type of message                                      d. Approval and evaluation by the CIO
b. learn how to use e-mail and instant messaging
c. schedule and coordinate tasks                              39. The main drawback to the IRM is that you need:
d. store and share the message                                a. A computer to record all user IDs
                                                              b. A printer to print the documents
30. _________ help automate collaborative processes by        c. A modem to send the e-mails
adding triggers and rules.                                    D. A server to identify the users and provide the decryptions
a. Groupware tools                                            keys
b. Business process management tools
c. E-mail and voice mail tools                                40. Version control systems save:
d. Microsoft Office tools                                     a. Latest copy of every document
                                                              B. Multiple copies of every document
31. For complete version control including the ability to     c. Last two copies of every document
automatically track changes, you will need:                   d. Only the first copy of every document
a. Microsoft Outlook Express
B. Visual Source Safe, Microsoft's version control software   41. Most version control systems work from:
c. Netscape Navigator                                         a. A database             b. PDAs
d. Microsoft NetMeeting                                       c. Netscape Navigator     d. Cell phones

32. ______________________ make (s) the scheduling a          42. You _____________ a file when you want to change it
meeting or conference a little easier.                        a. Check out           b. Check in
a. GIS                             b. GPS                     c. Open                d. Close
C. Electronic calendar tools       d. FTP
                                                              43. With GDSS, your focus is continually drawn to the many
33. Most of the initial use of instant messaging has been     different comments and discussions:
among:                                                        a. Taking place at different times
A. Individuals in a social context                            B. Taking place at the same time
b. Individuals in a business community                        c. Taking place at different places
c. Individuals in a teaching community                        d. Taking place at the same place
d. Individuals in a law and enforcement context
                                                              44. KM systems are designed to:
34. Instant messaging has become popular in the past few      A. Organize information and to assist people in collaborative
years – particularly with _________.                          projects and research
a. Executives             b. Managers                         b. Organize research data and assist scientists for making
c. Students               d. Teachers                         experiments
                                                              c. Assist employees to determine trip plans

                                                                                                                              23
d. Assist salespersons to sell certain products                  a. models are mathematical representations of processes and
                                                                 relationships
45. One of the biggest challenges with KM systems is             b. simulations are used to forecast outcomes
creating an organizational environment that:                     c. predictive models use parameters to predict values of a
a. Encourages every employee to contribute knowledge into the    dependent variable
system                                                           d. optimization models search for a best solution
b. Encourages managers to participate in developing the system
c. Encourages the operational employees to help develop the      3. Data warehouses were designed to address which of the
system                                                           following problems?
d. Encourages decision makers to store their knowledge in the    a. relational databases are slow for large databases
system                                                           b. data collected during transaction processing is not integrated
                                                                 c. transaction data is stored, but is not easily analyzed or
46. Web logs or blogs were created largely for individuals to    searched
use to                                                           d. all of the above
a. Create audio and video programs
b. Generate management programs                                  4. Which of the following statements about a data warehouse
c. Create diaries on the Internet                                is TRUE?
d. Create monthly budget reports                                 a. a data warehouse is relatively easy to use
                                                                 b. a data warehouse is dynamic; when company data change,
47. The primary drawback to the video conference systems         those changes are reflected in the warehouse
is the __________ required to transmit realistic video data.     c. a data warehouse is good for handling unexpected data
a. Power                          b. Gain                        queries
c. Bandwidth                      d. Entropy                     d. a data warehouse is more flexible than a database
                                                                 management system
48. Microsoft's Live Meeting is designed to handle as many
as                                                               5. A Pivot Table in Excel is an example of:
a. A few hundred participants                                    a. a data warehouse                b. a data mart
b. A few thousand participants                                   c. metadata                        d. an OLAP cube
c. Twenty or twenty five participants
d. Two or three participants                                     6. Data mining is a collection of techniques whose common
                                                                 purpose is determining:
49. _____________ makes it easy to create Web-based              a. the relationship among variables
projects and folders to hold team documents.                     b. optimal solutions to defined problems
a. Firmware                                                      c. subtotals from data stored as a cube
b. FTP                                                           d. all of the above
c. Microsoft's SharePoint system
d. Microsoft's PowerPoint system                                 7. Which of the following statements about market basket
                                                                 analysis is FALSE?
50. SharePoint will also integrate with:                         a. market basket analysis is used to determine which items are
a. Netscape Navigator, so meetings can be scheduled and the      purchased together
reminders will be forwarded for participation                    b. market basket analysis cannot be used with categorical data
B. Microsoft Outlook, so meetings can be scheduled and           c. market basket analysis may yield unrepeatable results
automatic reminders will be generated for participation          d. market basket analysis is also called association analysis
c. Microsoft PowerPoint, so slides can be generated for
presentation to an audience of computer literates                8. A Knowledge Base contains all of the following EXCEPT:
d. Microsoft Excel, so spreadsheets can be drawn for monthly     a. data                b. rules
budget maintenance                                               c. previous solutions  d. logic and links

Chapter 9                                                        9. Computers are better than humans at:
                                                                 a. searching and sorting large databases
1. Computers are best suited for use in decision making          b. pattern recognition
when:                                                            c. multitasking
a. the problem is unstructured                                   d. all of the above
b. data are not well-defined
c. data are numeric                                              10. The research into techniques that might make computers
d. all of the above                                              “think” more like humans is known as
                                                                 a. expert systems
2. Which of the following statements about models is             b. decision support systems
FALSE?                                                           c. management information systems
                                                                 d. artificial intelligence

                                                                                                                                24
11. As a manager, it is your responsibility to                     18. _________ evaluates a model in terms of the inputs or
a. identify decisions that can be handled by machine systems       control parameters and searches for the best solution.
and to recognize when these systems do not work                    a. Prediction            b. Forecasting
b. design artificial intelligence machine to mimic the processes   c. Optimization          d. Simulation
used by humans
c. create a set of rules and procedures that the computer can be   19. ________ is used to describe the source data, identify the
programmed to follow                                               transformation and integration steps, and define the way the
d. create a computer system to handle inventory                    data warehouse is organized.
                                                                   a. Data warehouse                  b. DBMS
12. ___________ use statistical tools to semiautomatically         c. SQL                             d. Metadata
evaluate data, searching for important relationships and
clustering or classifying groups of data.                          20. _______ allow managers to retrieve data and examine
a. Expert systems                  b. Optimization systems         totals from ______ perspectives.
c. Simulation systems              d. Data mining systems          a. OLAP, different       b. Data warehouse, different
                                                                   c. OLAP, the same        d. Data warehouse, the same
13. In the companies that focus on continual improvement
and growth, managers are encouraged to                             21. The key to a DSS is that you need ______ to analyze.
a. learn program language                                          a. data warehouse         b. database
b. identify the systems that can make business decisions           c. model                  d. DBMS
c. explore new ideas and replace the existing processes
d. avoid any element of risk                                       22. A __________ is designed to identify and display
                                                                   relationships between business data and location.
14. Without models, people tend to rely on simplistic “rules       a. map                   b. location database
of thumb” and fall prey to a variety of common mistakes;           c. DSS                   d. GIS
however, these errors can be minimized with _________ and
by _________.                                                      23. One common task of data mining is to
a. wishful thinking, social pressure                               a. determine how independent variables affect the dependent
b. training and experience in a discipline, having computer        fact variable
systems perform much of the initial analysis                       b. draw a map of the area in which you are interested
c. data availability, data presentation                            c. display the data graphically
d. one’s skill, chance                                             d. make the decision makers bury into the flood of data

15. The main point to remember is that making decision             24. One of data mining techniques is ________, which tries
without _______ leads to _______.                                  to find groups of items that have similar attribute values.
a. a good model and process, poor decisions                        a. correlation            b. multi-correlation
b. rules of thumb, good decisions                                  c. clustering             d. market basket analysis
c. chance, risky decision
d. thinking, good decisions                                        25. A ________ arise when the decision maker is presented
                                                                   with a set of symptoms and is asked to find the cause of the
16. There are four primary reasons for building and using          problem, as well as solutions.
models:                                                            a. salesman problem               b. diagnostic problem
a. collect more data, understand data, reduce human biases,        c. clustering problem             d. market basket problem
make better decisions
b. understand data, analyze data, identify pattern, make better    26. When you are creating expert system, the most challenge
conclusions                                                        part is
c. collect data, understand data, apply rules and procedures,      a. to hire programmers to write the program
make better decisions                                              b. to purchase hardware and software used in the system
d. understand the process, search for the best solution, predict   c. to find a cooperative expert who fully understands and can
future outcomes, examine what might happen if we make              explain the problem.
changes to the process or relationships                            d. to create the database to store the data

17. Prediction first requires that you have a ______ that          27. In an expert system, a knowledge base not only consists
describes the situation, then data is collected and ________       of data but also contains
techniques are used to estimate the ______ of the model for        a. the rules for retrieving the data
the specific problem.                                              b. the rules, logic, and links among data elements
a. business case, accounting, outcomes                             c. the rules and relationships among the hardware components
b. model, statistical, parameters                                  d. the rules that guide the communication between the expert
c. model, regression, outcomes                                     and users
d. business case, regression, parameters

                                                                                                                                 25
28. Neural networks are used to                                    a. Provide detailed data on any aspect of business
a. recognize patterns automatically                                b. Display audio outputs of the systems
b. define the rules and logic between expert and users             c. Provide the high level codes of the systems
c. find the links among data                                       D. Show charts, summaries, and detailed data
d. help employees learn rules and gain the experience needed to
deal with problems                                                 38. The study of human brains yielded clues that led to the
                                                                   development of
29. The greatest danger with language comprehension is that        a. Wide area networks            b. Local area networks
a. the machine cannot understand your questions                    C. Neural networks               d. Wonderlands
b. the machine actually understand what you mean
c. you don’t have to be intelligent to carry on a conversation     39. The main point to remember is that making decisions
with the machine                                                   without:
d. the machine interpret your question incorrectly and gives you   a. Assumptions lead to poor decisions
the “right” answer to the “wrong” question                         B. A good model and process leads to poor decisions
                                                                   c. The knowledge of the daily sales data leads to poor decisions
30. Optimization evaluates a model in terms of the:                d. Consulting with the operational managers leads to poor
a. Outputs and searches for the most efficient output              decisions
b. Environmental factors and searches for the best output
C. Inputs or control parameters and searches for the best          40. Prediction techniques such as:
solution                                                           a. Extrapolation techniques are used to examine the data,
d. Ambient pressure and temperature, and searches for the best     identify trends, and predict possible independent variables
output                                                             b. Fourier series forecasting are used to examine the data,
                                                                   identify trends, and predict possible independent variables
31. Choosing between the two methods, regression and               C. Regression and time series forecasting are used to examine
moving averages, requires some expertise in:                       the data, identify trends, and predict possible independent
a. Geometrical analysis         B. Statistical analysis            variables
c. Numerical analysis           d. Vector analysis                 d. Discrete mathematics are used to examine the data, identify
                                                                   trends, and predict possible independent variables
32. Most OLAP tools depict the data as:
a. One-dimensional plot         b. Two-dimensional plot            41. A (n) _________________ extracts and stores the data in
c. 3 D cubes                    D. Multidimensional cubes          a clean, easy-to-analyze format.
                                                                   a. Executive information system b. Expert system
33. Each digitized map data is stored by its location as           c. Data mining                   D. Data warehouse
measured by:
a. Radius, azimuth, and height in cylindrical coordinates          42. A data warehouse is commonly used as a method to
B. Latitude, longitude, and sometimes its elevation                provide data to decision makers without interfering with the
c. x, y, and z in Cartesian coordinates in space                   A. Transaction processing operations
d. Radius, elevation and azimuth in spherical coordinates          b. Executive information systems
                                                                   c. Decision support systems
34. A knowledge base consists of:                                  d. Expert systems
a. Data, inference engine, and database
B. Data, rules, logic, and links among data elements               43. _____________ is used to describe the source data,
c. Input data, database, and inference engine                      identify the transformation and integration steps, and define
d. Output data, inference engine and processing rules              the way the data warehouse is organized.
                                                                   a. Data marts             b. K-Mart
35. In general, if there are N cells in a neural network, there    C. Metadata               d. Wal-Mart
are:
a. N/2 possible connections                                        44. Managers use specific OLAP tools to examine:
b. N (N-1) possible connections                                    a. One section of the data
C. N (N-1)/2 possible connections                                  b. Two sections of the data
d. N (N+1)/2 possible connections                                  C. Multiple sections of the data
                                                                   d. Three sections of the data
36. In many ways, training a neural network uses:
a. Linear systems theory                                           45. A pivot table is created on the user's machine – most
b. Random processes and estimation theory                          users will build pivot table inside of
C. Basic properties of statistics related to data sampling and     a. Microsoft PowerPoint             b. Microsoft Word
regression                                                         c. Microsoft Access                 D. Microsoft Excel
d. Mathematical statistics related to data processing
                                                                   46. A decision support system consists of three basic
37. EIS systems can:                                               components:

                                                                                                                                 26
a. Input data, model parameter estimates, and model outputs        6. Which of the following information technologies are used
B. Data retrieval, model evaluation, and visualization of the      to support research activities?
results                                                            a. modeling                      b. statistical analysis
c. Information technology, model optimization, and                 c. collaborative technologies    d. all of the above
visualization of the results
d. Information systems, model evaluation, and data processing      7. Among the challenges of early adoption are:
                                                                   a. employee resistance to change b. risk of failure
47. GISs have been designed to identify and display:               c. high costs                     d. all of the above
a. Relationships between daily sales and the weather of the day
B. Relationships between business data and locations               8. Which of the following statements is FALSE
c. Relationships between business profits and retail sales         a. managers fear being first with new technology
d. Relationships between the customers' travel patterns and the    b. gains achieved through technology are not sustainable
daily sales                                                        c. large firms are more open to early adoption than smaller firms
                                                                   are
48. In most situations, an inference engine:                       d. some strategies for achieving competitive advantage violate
a. Applies new data to the database and analyzes all the data to   anti-trust laws
reach a conclusion
b. Applies new observations to the database and analyzes the       9. In some ways, information systems designed for
observations to reach a conclusion                                 competitive advantage are _______ transaction-processing
C. Applies new observations to the knowledge base and              and decision support systems.
analyzes the rules to reach a conclusion                           a. totally different from        b. the same as
d. Applies new data to the database and analyzes the latest data   c. more expensive than           d. not much different from
to reach a conclusion
                                                                   10. The real difference with strategy lies in its goal:
Chapter 10                                                         a. to install new information technologies
                                                                   b. to develop an information system that is better than other
1. Competition to local firms can come from:                       firms’ information systems
a. internet businesses             b. large retail stores          c. to change the way the business operates and gain an
c. other local businesses          d. all of the above             advantage over the other firms in the industry
                                                                   d. to reduce prices and provide better service
2. Electronic links to suppliers
a. add layers to the relationship                                  11. Business statistics indicate a clear trend toward the
b. result in more errors                                           increased importance of
c. decrease delivery delays                                        a. service-oriented firms            b. European manufacturers
d. increase costs                                                  c. external agents                   d. Porter’s Five Forces

3. A retail store that uses an inventory system through which      12. From a systems perspective, each of the entities in
the store can place orders directly from the manufacturer of       Porter‟s Five Forces model is
a specific product is engaging in which of the following           a. under the firm’s control
strategies for improving competitive advantage?                    b. outside the control of the firm
a. quality control                                                 c. unrelated to the firm
b. control of distribution channels                                d. irrelevant to the firm
c. product differentiation
d. all of the above                                                13. With multiple layers of buyers between the company and
                                                                   the ultimate consumer, it can be difficult to
4. Which of the following is an example of switching costs?        a. purchase goods in bulk
a. the costs associated with changing suppliers                    b. order and obtain the product
b. the costs associated with holding inventory                     c. determine what the customer wants
c. the costs of ordering new inventory                             d. place orders in advance
d. the cost of product delivery
                                                                   14. Three major issues involving suppliers are _______,
5. Statistical quality control systems are designed to:            ________, and _______.
a. find failures                                                   a. price, quality, delivery schedules
b. determine whether observed differences are random or            b. cost, quality, efficiency
systematic                                                         c. price, type, size
c. determine whether value is added at each step in the value      d. price, payment, delivery
chain
d. increase barriers to entry                                      15. __________ is more difficult when there are several
                                                                   layers of suppliers.
                                                                   a. process management

                                                                                                                                   27
b. product management
c. quality management                                                 25. In many cases, the true strategy does not lie in the _____;
d. service management                                                 instead, the gains came from changing the way ________.
                                                                      a. hardware, the software is installed
16. Modern companies have ties to hundreds or thousands of            b. compute system, the business operates
entities; each linkage requires _____ and offers the _______.         c. machines, the employees work
a. connection, communication channel                                  d. efficiency, the firm organizes
b. communication, possibility for strategic gain
c. communication software, upgrade                                    26. The main lesson from the failures of the early dot-com
d. human operator, connection between two entities                    firms in 2000 is that, to succeed in business, you must
                                                                      a. make a profit on operations
17. An interesting strategic capability of information                b. become the dominant player by selling products below cost
systems is their ability to create ______ for your consumers.         c. spend huge amounts of money on national advertising
a. barriers to entry                 b. switching costs               d. build a creative business plan
c. inventory systems                 d. cost disadvantages
                                                                      27. If you spend large amounts of money on new technology
18. The additional costs of creating a sophisticated                  to gain market share, you need to be able to
information system make it harder for other firms to                  a. spend more money to implement new technologies
a. enter the industry              b. distribute products             b. sustain an increase in profits for a long enough time to
c. control distribution channels   d. manage quality                  recover your costs
                                                                      c. pay more money than anyone else on new hardware
19. Any firm that wishes to sell products or parts to firms in        d. prove your ideas have merit and will work
the European Union must build an information system to
a. control distribution channels                                      28. The use and application of technology depends heavily
b. create barriers to entry that keep out potential competitors and   on
substitutes                                                           a. the hardware and software
c. monitor quality and provide information to customers               b. the employee and managers
d. control manufacturing costs                                        c. the programmers and employee
                                                                      d. the people and management of the organization
20. There are four key features to production:
a. costs, customer, service, and quality                              29. Frequent flier programs are a way that airline
b. employee, managers, human resources, and information               companies increase the ___________ to the consumer.
systems                                                               a. computing costs                b. switching costs
c. customers, suppliers, distribution, and retailers                  c. transaction costs              d. base costs
d. costs, speed, quality, and flexibility                             e. None of the above

21. IT support for engineering and design takes the form of           30. Which of the following is not a component of Porter‟s
_______ that make it easy to create, modify, store, and share         Five Forces model?
new designs.                                                          a. existing competition
a. expert systems                 b. CAD/CAM systems                  b. new competition
c. manufacturing systems          d. AI systems                       c. threat of substitute products and services
                                                                      d. threat of technology entrance
22. Mass customization requires an IT system that links the           e. None of the above
________ directly to the _______ and through to supply.
a. customers, manufacturers                                           31. Which of the following scenarios represents the idea of
b. suppliers, manufacturers                                           the threat of new entrants?
c. accounting system, production system                               a. McDonald’s offering a coffee bar in its stores to compete with
d. sales system, production line                                      Starbucks in 2008
                                                                      b. McDonald’s opening a restaurant across the street from a
23. A well-known application of IT to improve marketing is            Burger King in 2008
the use of                                                            c. Pizza Hut offering a meat-lovers pizza to compete with
a. JIT inventory systems to cut inventory costs                       Subway in 2008
b. frequent-buyer databases that identify major customers             d. All of the above represent the idea of the threat of new
c. the Internet to locate potential suppliers                         entrants
d. expert systems that locate the source of problems                  e. None of the above represents the idea of the threat of new
                                                                      entrants
24. The implementation of JIT inventory systems is largely
credited to                                                           32. Many dot-com companies failed because
a. General Motors                b. Japanese manufacturers            a. they sold product below cost.
c. Michael Porter                d. FedEx

                                                                                                                                    28
b. they didn’t have enough time to develop loyal customers            d. Wal-Mart buying from Proctor and Gamble.
before running out of investor funding                                e. All of the above exhibit the bargaining power of the buyer.
c. there weren’t enough people who knew what the Internet was
to make online businesses successful                                  39. The design process must:
d. A and B                                                            a. Optimize the production line to maximize costs and retain
e. A, B, and C                                                        high quality
                                                                      b. Optimize the production line to minimize costs and retain
33. ________ is defined as a support function in the value            high quality
chain.                                                                c. Minimize the production line to minimize costs and retain
a. Marketing and sales            b. Operations                       high quality
c. Outbound logistics             d. Service                          d. Maximize the production line to maximize costs and retain
e. Strategic management                                               high quality

34. Which of the following explains why information                   40. Mass customization requires an IT system that:
technology solutions are hard to sell to top management?              a. Links the production system to the engineering system
a. Few managers truly understand technology.                          b. Links the sales system directly to the production line and
b. Managers have become cautious about being the first                through to supply.
organization to try new technologies.                                 c. Links the supply system directly to the engineering system
c. Most large companies have encountered the delays and               d. Links the design system to the engineering system
frustrations of trying to develop and implement new
technologies.                                                         41. _________ is (are) being used by leading firms to develop
d. All of the above                                                   initial ideas for advertising and promotional campaigns.
e. None of the above                                                  a. CAD
                                                                      b. CAM
35. First mover advantage results from                                c. Multimedia tools
a. the organization that adopts a strategy or technology first will   d. HTTP
be seen as the leader and will acquire customers who will then
be reluctant to switch back.                                          42. The discount airlines, led by ___________________, have
b. the organization gaining a reputation for being innovative,        been profitable over the last few years-because they have
which might attract additional customers.                             found a way to attract customers and hold down costs.
c. the organization that adopts a strategy or technology first        a. Northwest and joined by TWA and JetBlue
often incurs lower technology costs.                                  b. American and joined by Delta and Southwest
d. A and B                                                            c. US Air and joined by American and AirTrans
e. A and C                                                            d. Southwest and joined by JetBlue and AirTrans

36. Which of the following exhibits the bargaining power of           43. A common thread in gaining a competitive advantage is
the supplier?                                                         to improve the:
a. A residential citizen receiving trash pickup services from the     a. Ties with employees and inventories
city.                                                                 b. Relationships among operational managers and tactical
b. A group of friends going out for a fast-food lunch.                managers
c. A gas station on a busy intersection with gas stations on each     d. Ties and communication with suppliers and consumers
of the other three corners.                                           d. Ties and communications with managers and executives
d. Wal-Mart buying from Proctor and Gamble.
e. All of the above exhibit the bargaining power of the supplier.     44. ____________ consist (s) of suppliers, customers, rivals,
                                                                      potential new entrants, substitute products, and sometimes
37. Which of the following are leading to increased                   the government.
competition?                                                          a. Internal agents                 b. External agents
a. Improved telecommunications.                                       c. European Unions                 d. Mexican Unions
b. The Internet makes it easier for consumers to compare prices.
c. The international search for lower manufacturing costs.
d. All of the above are leading to increased competition.             45. Form a systems perspective, each of the entities in the
e. None of the above is leading to increased competition.             Porter's Five Forces model:
                                                                      a. Has strong relationship with the firm
38. Which of the following exhibits the bargaining power of           b. Is under the control of the firm
the buyer?                                                            C. Is outside the control of the firm
a. A residential citizen receiving trash pickup services from the     d. Can greatly influence the firm
city.
b. A small town with only one doctor.                                 46. It is called ______________ when a company owns
c. Using eBay to bid on the original Declaration of                   several pieces of the production chain.
Independence.                                                         a. Horizontal integration          b. Customer integration

                                                                                                                                       29
c. Employee integration            D. Vertical integration         a. degree of dominance in the industry
                                                                   b. dollars of sales
47. It is called ______________ when a company expands by          c. number of employees
building related businesses.                                       d. all of the above
A. Horizontal integration         b. Customer integration
c. Employee integration           d. Vertical integration          3. Which of the following statements about small business is
                                                                   FALSE?
48. Three major issues involving suppliers are:                    a. annual growth of small businesses is usually small
a. Inventories, vendors, and quality                               b. small businesses usually know how to use IT strategically
b. Quality, sales, and profits                                     c. small businesses lack strategic power
c. Price, quality, and delivery                                    d. small businesses rarely hire IT specialists
d. Price, profits, and operational managers
                                                                   4. Small businesses typically resort to the following to handle
49. American Airlines and United Airlines spent millions of        their IT solutions
dollars to build reservation systems as                            a. outsourcing application development to service providers
a. Operational systems             b. Strategic systems            b. hiring in-house specialists
c. Executive systems               d. Tactical systems             c. training employees to become programmers and software
                                                                   developers
50. The critical feature of a ________ is the ability to display   d. all of the above
geo-coded data.
a. EIS                     b. MIS                                  5. Transactions at the operational level in small businesses
c. GIS                     d. DSS                                  are usually handled by:
                                                                   a. a database system such as Access         b. Excel
51. A fundamental concept of economics is that in order to         c. Accounting systems                       d. EIS
make extra profits, you need some mechanism to:
a. Allow other firms to enter the production chain                 6. Decision support systems at the tactical level in small
b. Allow other firms to develop a unique strategy                  businesses are usually handled by:
c. Allow other firms to enter the industry                         a. a database system such as Access         b. Excel
d. Prevent other firms from entering the industry                  c. Acounting systems                        d. EIS

52. Robots and process-control systems can be used to control      7. Outside the technology industry, few small businesses
a. Inventory ordering and holding costs                            have ________ information technology.
b. Administrative costs                                            a. any interest in                b. any expertise with
c. Manufacturing costs                                             c. positive attitude towards to   d. transaction and operation
d. Marketing costs
                                                                   8. The term _______ derives from the concept that the
53. ISO 9000 requires companies to measure quality at              business buys the package of hardware and software, plugs
a. Early stages of production                                      it in, turns the metaphorical key, and has everything
b. Later stages of production                                      necessary to run the business.
c. Middle stages of production                                     a. turn-key systems       b. off-the-shelf packages
d. All stages of production                                        c. service contracts      d. ERP systems

54. Production processes are directly supported by:                9. Often the bigger constraint is that small businesses do not
a. Operational managers                                            know ________ , particularly in terms of searching for a
b. Tactical managers                                               competitive advantage.
c. Design, engineering, and marketing                              a. how to purchase hardware
d. Customers and employees                                         b. how to install application software
                                                                   c. how to use IT to solve business problems
Chapter 11                                                         d. how to find IT specialists

1. Small business face constraints in the area of information      10. _________ is another critical area of expertise that is
systems and technology. Those constraints include all of the       unavailable in most small businesses.
following EXCEPT:                                                  a. Purchasing hardware             b. Installing software
a. lack of strategic opportunities for IT solutions                c. Internet access                 d. Computer security
b. lack of IT skills
c. lack of time to think about IT solutions                        11. Small businesses face _________ but tend to concentrate
d. lack of money                                                   on ________.
                                                                   a. the same decision levels, the day-to-day operations
2. The definition of a small business includes which of the        b. different decision levels, the day-to-day operations
following measures?                                                c. the same decision levels, the strategic decisions

                                                                                                                                 30
d. different decision levels, the strategic decisions                a. to make sense to put an ERP system into the business
                                                                     b. the ability to reduce the need for MIS workers
12. The good news is that most large businesses already have         c. the ability to obtain complex services online
_________, so a small business will be able to use the client‟s      d. the ability to build a collaboration system
computer system to ________.
a. expert systems, help its manager make better decisions            20. You should not consider becoming an entrepreneur
b. accounting systems, collect data to respond to the needs of the   unless you are willing to.
larger customer                                                      a. come up with an idea for a product or service
c. transaction systems, conduct its business over the Internet       b. accept a high risk of loss – loss of time and loss of money
d. ERP systems that provide Web-based support for suppliers          c. forecast exactly how the new product will be received y
and customers, track orders, returns, and payments                   customers
                                                                     d. be the least-cost producer to attract customers from older
13. Most small businesses can handle day-to-day                      firms
transactions through ________, because the standard
financial data is often the most important information to the        21. When you are looking for ideas, you should examine
managers and the _______ stores everything in a database             a. the production chain for various industries
that has basic search and reporting capabilities.                    b. the final price and profit of the products
a. accounting systems, accounting system                             c. your closest competitors
b. ERP systems, accounting system                                    d. any potential substitute products
c. expert systems, ERP system
d. decision support systems, expert system                           22. Once you have identified a reasonable idea and done the
                                                                     basic research so that you understand the industry, you need
14. Because an accounting package does not automatically             to
solve all of the transaction issues, every accounting system         a. expand your focus      b. write a business plan
has to                                                               c. hire managers          d. purchase equipments and supplies
a. be developed by in-house programmers
b. be managed by an accounting firm                                  23. The goal of the business plan is to
c. be configured to match the specific company                       a. forecast sales and costs
d. be written in different programming language                      b. estimate the infrastructure scale and operating costs
                                                                     c. precisely describe the business you wish to start, the market
15. Search data is a powerful tool to ________, giving               environment, and your strategy
entrepreneurs the chance to see what customers want.                 d. convince prospective investors that your serious
a. evaluate current situation in the business
b. evaluate what potential customers are looking for                 24. When you send commercial (advertising) messages to
c. evaluate your competitor’s strategies                             potential customers, you need to follow the rules defined by
d. evaluate your suppliers’ productions                              a. the CAN-SPAM Act
                                                                     b. your ISP
16. The biggest decision to be made in Internet connections          c. the FTC
is                                                                   d. local telecommunication companies
a. whether you need to control and monitor your business
b. whether you need to run a global business                         25. One theme repeatedly echoed by entrepreneurs is that
c. whether you need full-time high-speed access lines                you need to be
d. whether your employees need cell phones so they can be            a. well-educated
reached at any location                                              b. an expert in IT
                                                                     c. willing to accept smaller salaries in exchange for stock
17. Small businesses often lack money and expertise, so it is        options
important to                                                         d. flexible
a. implement the state-of-the-art technology
b. hire the best IT specialists for its information systems          26. ___________ was a dominant factor in the failure of
c. match the technology level to the resources of the business       many of the early e-commerce firms.
d. search for lower-cost options                                     a. Low product prices
                                                                     b. Internet advertising revenue
18. For small businesses, buying hardware and software is            c. Dropping NASDAQ market index
only one factor in creating an information system; often the         d. Inherent risk
most critical problem is
a. the cost of MIS workers         b. the cost of employee           Chapter 12
c. the operations costs            d. the back-office expenses
                                                                     1. The systems development methodology that is most
19. For small businesses, one of the most important aspects          appropriate for large systems that will be used by many
to technology today is                                               different users is:

                                                                                                                                      31
a. SDLC                               b. prototyping                10. Who is ultimately responsible for determining whether a
c. end user development               d. RAD                        system is good or not?
                                                                    a. managers              b. programmers
2. The systems development method that is most appropriate          c. IS staff              d. end users
for building decision support systems for analysis and
reports is:                                                         11. The advantages of prototyping include all of the
a. SDLC                           b. prototyping                    following EXCEPT:
c. end user development           d. RAD                            a. systems are designed to be easily changed
                                                                    b. the end user is the programmer
3. The systems development method that is most appropriate          c. users are involved very early in the development process
for situations in which one or two users need a small, one-         d. users have significant input into systems development
time application is:
a. SDLC                           b. prototyping                    12. In Data Flow Diagrams, entities or objects are described
c. end user development           d. RAD                            using
                                                                    a. nouns                b. verbs
4. What is the advantage to an organization of doing                c. adjectives           d. arrows
software development (programming) in house?
a. it costs less to write software from scratch                     13. Today it is important that managers select applications
b. it takes less time to write software than to install purchased   that support _____ and _____ because those applications
software                                                            will be able to interact with other services on the internet.
c. software developed in house is customized to the                 a. SOAP, XML               b. SDLC, JAD
organization’s needs                                                c. DFD, OOD                d. CMMI, RAD
d. there are fewer security concerns related to software
developed in house                                                  14. As a business manager, you need to understand
                                                                    _________ issues facing MIS departments.
5. In general, which of the following approaches to acquiring       a. costs and management
software systems is the fastest and least expensive?                b. programming language
a. program from scratch                                             c. development tools
b. pay an outside organization to develop                           d. hiring and firing programmers
c. assemble purchased components
d. purchase an application from another company                     15. The goal of SDLC is to
                                                                    a. split the problem into smaller pieces and combine the pieces
6. Event driven systems involve                                     into a complete solution
a. code that is executed when some event is triggered               b. build a system by analyzing the business process and
b. systems that are designed for special events in the company      breaking the problem into smaller, more manageable pieces
c. systems that are upgraded when events, such as errors, occur     c. interact with developers to ensure that you get the system you
d. all of the above                                                 need
                                                                    d. create an operational version of the system as quickly as
7. The feasibility study in the Systems Development Life            possible
Cycle involves assessment of all of the following EXCEPT
a. whether the proposed system is cost effective                    16. If you can buy existing software or even components, the
b. operational feasibility                                          cost is _______, and you reduce risk by ________.
c. technological feasibility                                        a. higher, development time
d. user training                                                    b. lower, increasing development time
                                                                    c. substantially lower, using code that has already been tested
8. In the Systems Analysis phase, the emphasis is on                d. substantially higher, using code that hasn’t been tested
a. backup and recovery
b. studying the current system in detail                            17. Writing your own custom program gives you
c. developing a complete design of the new system                   a. the fastest way to get a new system
d. testing                                                          b. a cheaper and simpler solution
                                                                    c. longer development time but lower development cost
9. What is the primary problem with the direct cutover              d. complete control over the application
approach to system conversion?
a. it is expensive                                                  18. A good way to reduce development time and costs is to
b. it is time consuming                                             a. buy portions of the system from other companies
c. it requires extensive coordination among different units         b. let employees develop their own systems
d. if the new system does not work properly, the entire company     c. hire and fire programmers for a single project
is at risk                                                          d. stick with older and less useful systems

                                                                    19. The primary advantage of outsourcing is that

                                                                                                                                  32
a. the external company takes responsibility to clearly define      27. An important concept for managers to remember when
exactly how the application should work                             dealing with new systems is that
b. the external company takes responsibility for managing the       a. the evaluation should be ignored until someone questions the
process and producing the application                               value of the finished system
c. the external company takes responsibility for building new       b. the evaluation mechanism should be determined at the end of
applications faster with fewer errors                               the project
d. the external company takes responsibility for selling the        c. the evaluation mechanism should be determined at the start of
application to other firms to reduce your costs                     the project
                                                                    d. the evaluation mechanism should be determined during the
20. The combination of ______, ______ and _______ is                implementation stage
difficult to find; which partly explains why good
programmers receive relatively high salaries.                       28. SDLC works best if
a. hard-working, intelligence, patience                             a. the organization don’t want to change
b. long hours, complex work, patience                               b. the project is hard to define
c. creativity, logic, detail-orientation                            c. the users and programmers want to include additional features
d. programming skill, system analysis methods, development          d. the entire system can be accurately specified in the beginning
tools
                                                                    29. A system designed with ________ is much easier to
21. With the object-oriented approach, the _________ are            change because it was designed to be modified from the
combined into the definition of the object.                         start.
a. graphical operating systems and personal productivity tools      a. SDLC          b. the prototyping method
b. spreadsheet objects and internal tools                           c. JAD           d. RAD
c. specific properties and attributes
d. properties and functions                                         30. One of the most difficult steps in creating any new
                                                                    system is
22. One role handled by a systems analyst is to                     a. to organize the development team
a. identify business needs and translate those into concepts that   b. to find the programmers
the programmers understand                                          c. to determine the user requirements
b. build a relatively complex system in a short period of time      d. to design a prototype
c. define a set of properties and function for each object
d. develop related systems with less effort                         31. With ________ the main system is designed in an intense
                                                                    workshop in which users, managers and systems analysts
23. A factor in many runaway projects is the concept of             participate in a series of intense meetings to design the
_______, which means that once the project starts, users and        inputs and outputs needed by the new system.
programmers continually include additional features into            a. SDLC                     b. the prototyping method
the project.                                                        c. JAD                      d. RAD
a. system scope          b. scope creep
c. inheritance           d. loops                                   32. The purpose of a process diagram is
                                                                    a. to define the initial goals and attribute of a large project
24. Large projects involving many analysts and                      b. to describe how the individual processes interact with each
programmers will always have problems with                          other
a. in-depth analysis                                                c. to provide most control on the processes
b. communications and feasibility                                   d. to control the development and record progress
c. coordination and compatibility
d. users and programmers                                            33. A diagramming technique called _________ has been
                                                                    developed to represent an information system and show how
25. The primary goal of system analysis is to                       the system is divided into smaller portions and to highlight
a. identify problems and determine how they can be solved with      the flow of data between those parts.
a computer system                                                   a. data flow diagram
b. determine whether the problem can reasonably be solved with      b. spreadsheet chart
a computer system                                                   c. system boundary map
c. sell the project to upper management                             d. process relationships map
d. evaluate the progress of the programmer team
                                                                    34. In most organizations today as much as ________ of the
26. In many ways, the safest choice is to use ______, in which      MIS staff is devoted to modifying existing programs.
the new system and the old one are operated at the same             a. 10%                   b. 25%
time until the new system is acceptable.                            c. 50%                   d. 80%
a. direct cutover        b. parallel conversion                     e. None of the above
c. pilot testing         d. phased implementation


                                                                                                                                      33
35. Which of the following represents strengths of the               c. systems that belong to acquired companies become part of the
systems development life cycle?                                      cost basis of the acquired company.
a. Programmers will find the system easier to modify and             d. A and B.
maintain later due to adherence to standards.                        e. B and C.
b. Speed in delivery of the system to the client is faster than
alternate methods.                                                   42. Three basic development techniques are:
c. It tolerates changes in MIS staffing.                             a. Preliminary investigation, systems analysis, and systems
d. A and B                                                           design
e. A and C                                                           b. Systems acquisition, systems implementation, and systems
                                                                     maintenance
36. Which of the following represents weaknesses of the              c. Fact-finding, documentation, and presentation
systems development life cycle?                                      D. Systems development life cycle (SDLC), prototyping, and
a. Increased development time.                                       end-user
b. Systems must be defined up front.
c. User input is sometimes limited.                                  43. _______________, started by Ross Perot, purchased by
d. All of the above represent weaknesses of the SDLC                 GM, and now independent, is the largest outsourcing
e. None of the above represent weaknesses of the SDLC                company.
                                                                     a. McKinsey and Co.     b. Electronic Data Systems
37. Which of the following development choices is like to cost       c. Accenture            d. Rational Rose
the most in terms of costs and development time?
a. Purchase a complete solution.                                     44. With ___________________, led by Richard Stallman
b. Assemble from components.                                         and the GNU project, thousands of programmers around
c. Outsource or contract programmers.                                the globe are building complex projects in a loosely knit
d. Custom programming.                                               organization.
                                                                     a. Microsoft             b. Proprietary source
38. The order of stages in the SDLC is                               C. Open source           d. Rational Rose
a. (1) feasibility and planning, (2) systems analysis, (3) systems
design, (4) implementation, and (5) maintenance and review.          45. Systems design turns business requirements into a
b. (1) systems analysis, (2) feasibility and planning, (3) systems   ________________ that is implemented, creating a new
design, (4) implementation, and (5) maintenance and review.          system.
c. (1) systems analysis, (2) systems design, (3) feasibility and     A. Technical design      b. Technical report
planning, (4) implementation, and (5) maintenance and review.        c. Feasibility study     d. Data flow diagram
d. (1) maintenance and review, (2) feasibility and planning, (3)
systems design, (4) implementation, and (5) systems analysis.        46. Systems implementation involves:
e. (1) systems analysis, (2) systems design, (3) feasibility and     a. Splitting the new system as a collection of modules or
planning, (4) implementation, and (5) maintenance and review.        subsystems
                                                                     b. Designing the new system
39. Which of the following is true with regard to the SDLC           c. Generating complete technical specifications for the new
a. The SDLC works well when requirements can be specified up         system
front.                                                               D. Installation and changeover from the previous system to the
b. It is usually unsuitable for smaller projects.                    new one, including training users and making adjustments to the
c. It does not work well for decision support systems.               system
d. A and C
e. A, B, and C                                                       47. One of the most difficult steps in creating any new
                                                                     system is:
40. Regarding outsourcing, which of the following is true?           a. determining the time line
a. The outsourcers take responsibility for managing the process      b. Gaining management acceptance
and producing the application.                                       c. Deciding which method to use to create it
b. The outsourcers may run your entire MIS department.               D. Determining the user requirements
c. The outsourcers may run just your servers or networks.
d. The outsourcers may run just handle PC maintenance.               48. One new aspect to XP is:
e. All of the above are true with regard to outsourcing.             a. Parallel programming, where many programmers work
                                                                     together
41. Inheritance means                                                B. Paired programming, where two programmers work together
a. items that are subordinate to the base class share the same       constantly
elements present in the base class.                                  c. Parallel programming, where three programmers work
b. when the base class expires, items that are subordinate to the    together constantly
base class receive the elements from the base class before non-      d. Serial programming, where one programmer works constantly
subordinate items.
                                                                     49. The first step in creating a DFD is to:

                                                                                                                                   34
a. Determine the goals                                               d. Does not require any technical assistance
b. Determine the main entities
c. Identify the primary processes                                    58. Projects are typically evaluated in three areas of
D. Identify the environment and the boundaries of the system         feasibility:
                                                                     a. Financial, time involved, and training
50. The last step in creating a DFD is to:                           b. Size of the project, testing, and implementation
a. Document the design                                               C. Economical, operational, and technical
b. Look at each process in detail and draw the expanded              d. Hardware, software, and training
subsystems
C. Build the control flows                                           59. The drawback to extensive customization is that it:
d. Interconnect the data                                             a. Usually doesn't work correctly
                                                                     B. Requires specially-trained programmers and delays the
51. A real problem with end-user development is that:                project
A. Users generally lack the training and experience of MIS           c. Often results in unexpected outcomes
analysts and programmers                                             d. Invalidates the warranty on the program
b. End users are too close to the problem to see the solution
c. End users have their own agendas and are not always aligned       60. The primary advantage of outsourcing is that:
with company needs                                                   a. Saving trouble for your own IS department
d. They prefer off-the-shelf software                                B. The external company takes responsibility for managing the
                                                                     process and producing the application
52. Linus Torvalds uses open source development approach             c. They have more experience with a variety of programming
to create and distribute the                                         needs
a. Windows XP                    b. Excel program                    d. They will define for you exactly how the application should
C. Linux operating system        d. Windows 98                       work

53. The two primary drawbacks to SDLC are:                           61. The third method of creating software systems,
a. Cost and the necessity for complex, long-term programming         ________, relies on users to create their own systems.
help                                                                 a. SDLC                            b. Prototyping
b. It does not allow for a prototype, and it is very time-           C. End-user development            d. CASE
consuming
c. Getting everyone to agree to the feasibility study, and           Chapter 13
deciding if the outcomes have met the objectives
D. The time it takes and that all of the details must be specified   1. Decreased costs of networks and personal computers led
up front                                                             to increased:
                                                                     a. centralization         b. decentralization
54. SDLC works best if:                                              c. certification          d. control
a. Managers do not know what the system should do long before
the system is created                                                2. Which of the following is viewed as the least important
b. Users do not have any idea about the proposed system              component in an information system?
C. The entire system can be accurately specified in the              a. hardware                       b. network
beginning                                                            c. database                       d. applications
d. Documentations are not written
                                                                     3. The advantages of establishing corporate standards for
55. The primary purpose of the SDLC method of designing              hardware, software and data include all of the following
systems is to:                                                       EXCEPT:
a. Make sure everyone works together                                 a. easier maintenance and upgrades
b. Outline the entire plan for management                            b. training is easier and less expensive
c. Save programming time                                             c. standards ease information sharing
D. Provide guidance and control over the development process         d. standards encourage innovation

56. In most large projects, the actual coding takes ________         4. In a large, fully-staffed MIS department, who has day-to-
percent of the total development time.                               day responsibility for data definition, data structures, data
a. 8 to 10                B. 15 to 30                                integrity, data security, privacy, and database backup and
c. 40 to 50               d. 60 to 75                                recovery procedures?
Answer: B                                                            a. programmers                      b. systems analysts
                                                                     c. the data/database administrator d. end users
57. Without planning and control, any project:
a. Gets successfully completed                                       5. In which of the following situations is outsourcing most
B. Will become a runaway                                             appropriate?
c. Is completed within deadline                                      a. the application is unique

                                                                                                                                   35
b. the application has a low fixed cost                                a. the focus on creating information systems and controlling
c. the application requires very advanced technology                   data
d. the application requires tight security                             b. the function for hardware and software acquisition
                                                                       c. the goal of increasing support for workers, not their
6. Which of the following statements about service level               replacement, so employees can do their jobs better on their own
agreements (SLAs) is TRUE?                                             d. the ability to determine the exact skills of any potential
a. the agreement includes defined performance measures                 employee
b. there are no penalties if actual performance is not as stated in
the agreement                                                          14. One key issue in managing information technology is
c. SLAs tend to encourage continuous improvement                       a. hiring programmers when the project starts and firing them
d. SLAs incorporate unanticipated requirements                         when the project ends
                                                                       b. organizing the MIS function so that it matches the structure of
7. Which of the following statements is TRUE?                          the firm
a. centralized systems are more flexible than decentralized            c. focusing on creating new information systems
systems                                                                d. forcing central IT decisions on a decentralized organization
b. centralized systems are more responsive than decentralized
systems                                                                15. MIS is a service organization, which means that
c. decentralized systems encourage innovation                          a. information technology contributes through helping other
d. all of the above                                                    workers do their jobs better
                                                                       b. the users don’t pay for the information technology
8. Which of the following statements about hardware                    c. MIS department should bill for its services in terms of
decentralization/centralization is TRUE?                               hardware, software, and personnel
a. decentralization makes it easier to impose standards across         d. There is no incentive for the MIS department to behave
the organization                                                       efficiently
b. reliability of the overall system is greater with a decentralized
system                                                                 16. The objective of building scalable systems is
c. centralization makes it easier to personalize hardware systems      a. to install large enough capacity of hardware to meet future
d. decentralized systems are easier to monitor and control             demand
                                                                       b. to simplify purchasing and asset tracking
9. The advantages of decentralizing data include:                      c. to purchase only the level of hardware that is needed, and
a. easier backup         b. local ownership                            then, as demand increases, add more servers to handle the
c. tighter security      d. all of the above                           increased load
                                                                       d. to require that all employees have the exact same hardware
10. The advantages of centralizing MIS personnel include:
a. Centralized support is faster                                       17. Over time, MIS has learned that the firm gets into
b. MIS personnel understand the business applications better           trouble if all of its people
when they work centrally                                               a. purchase the same computers
c. MIS personnel communicate more effectively with end users           b. install the same application software
when they work centrally                                               c. use the same MIS department
d. it is easier to track costs associated with the MIS staff when      d. work independently
they work centrally
                                                                       18. A _________ is responsible for maintaining the corporate
11. When you are evaluating the CIO, MIS and the overall               databases, monitoring performance of the database
structure, remember one rule:                                          management system, and solving day-to-day problems that
a. The job of MIS is to help the organization and the other            arise with the databases.
managers                                                               a. data administrator     b. database administrator
b. MIS managers have so much power, compared with a typical            c. CIO                    d. MIS manager
business manger
c. MIS departments provide many important services                     19. Because today‟s databases are so crucial to the company,
d. MIS personnel show other people how to use the information          the business needs
systems                                                                a. stricter privacy rules
                                                                       b. a separate data administrator to coordinate the definition of
12. A key decision involves positioning the resources in the           the data
organization which revolves around                                     c. a carefully defined disaster and recovery policy
a. hardware versus software                                            d. a procedure to define the structure of the databases
b. programmer versus user
c. MIS department versus business departments                          20. Network management involves
d. Decentralization versus centralization                              a. creating and managing Web sites
                                                                       b. installing network hardware and software, diagnosing
13. The role of the MIS department has changed toward                  problems, and designing new networks

                                                                                                                                        36
c. database design and administration                                  d. that it can be difficult to determine the information needs
d. training users, answering questions, and installing software        from each employee, that users are responsible for making their
                                                                       own backup copies
21. A major benefit to outsourcing is the opportunity
_______, and a key economic point with outsourcing is that             27. One complication with enabling users to choose different
you convert upfront fixed costs into ______.                           software is that
a. to use programmers from India and Russia, smaller salaries          a. it can be difficult to determine the configuration of each
b. to hire specialized talent, non-management expenses                 machine
c. to transfer control of a crucial resource to an outside             b. it is easy for users to exchange data with coworkers
company, variable monthly fees                                         c. there will be fewer compatibility problems
d. to hire experts in IT management, somewhat variable monthly         d. upgrades, training, and assistance are much simpler
fees                                                                   Answer: a
                                                                       Page: 817
22. Outsourcing entails many trade-offs. If you are really             Level: Medium
interested in development of strategic applications and
leading-edge applications, it is usually better to use                 28. Most of the advantages of a centralized MIS staff accrue
a. an internal development team                                        to
b. an outside firm                                                     a. the users             b. the managers
c. an expert through outsourcing                                       c. the MIS workers       d. the customers
d. a hosting firm
                                                                       29. The primary advantage to decentralized MIS staffing is
23. Outsourcing has many drawbacks. One bigger question                that
is the issue of                                                        a. MIS workers often feel more comfortable with people in other
a. how terminating the outsourcing contract early if the firm          departments
signed a long-term contract                                            b. It is easier for the firm to provide additional training to MIS
b. who is responsible for identifying solutions and new uses of        staffers
technology for the firm                                                c. the support is closer to the users
c. how calculating the outsourcing costs                               d. it is harder to see how much MIS is costing the firm
d. how firing your MIS employees
                                                                       30. Internet technologies can be used internally to ________
24. Proponents of decentralization argue that moving                   but still support _________.
control to smaller units produces                                      a. centralize data, decentralized user access
a. more efficiency that can be gained from large-scale                 b. centralize user access, decentralized data
operations                                                             c. centralize MIS staff, decentralized database
b. a more flexible system that can respond faster to market            d. decentralize MIS staff, centralized hardware
changes, encourage individual differences, and innovate
c. smaller governments and communities that can coordinate             31. The strongest advantage to decentralizing data is that it:
large-scale activities                                                 a. Makes it more difficult to hack into
d. larger governments and communities that can coordinate              b. It replicates data in many locations
large-scale activities                                                 C. Gives ownership of the data to the group that creates and
                                                                       maintains it
25. By keeping all hardware, software, data, and IS                    d. Does not interfere with other users which many people need
personnel in one location, it is easier to                             access to the data
a. get access to the printer and other hardware
b. negotiate lower prices from vendors                                 32. A key benefit of the thin-client approach is that:
c. customize the hardware and software to match user’s                 a. It allows for large data transfer
preferences                                                            b. It minimizes data replication
d. avoid duplication and keep costs down                               C. Clients can be built from relatively simple hardware and
                                                                       software
26. The most important feature of centralized data is                  d. It does not need a middle-ware component
_______; while the strongest advantage to decentralizing
data is ______.                                                        33. Outsourcing provides:
a. to avoid data replication, that the users have complete control     a. A short-term increase in cash for the company
of the data                                                            b. Better services than in-house MIS can offer
b. to prevent the users from customizing the data to meet their        c. Less expensive because fewer in-house MIS personnel will be
needs, to encourage the users to customize the data to meet their      needed
needs                                                                  d. Less need to upgrade continually the skills of in-house
c. the ability to share it with other users, that it gives ownership   personnel
of the data to the group that creates and maintains it


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34. Making effective use of information systems requires          c. Several levels of analysts and programmers
organizing the MIS resources:                                     D. Training users, answering questions, and installing software
a. Technical expertise and programming abilities
B. Hardware, software, data, and personnel                        43. In the 1990s, the inability to hire IT workers, the
c. Technical expertise, hardware and data                         increasing standardization of IT services, the desire to cut
d. Hardware, software, and technical expertise                    costs, and the need to focus on core business management
                                                                  resulted in:
35. In organizing information system resources, the goal is to    a. Larger companies breaking up into smaller ones
balance:                                                          b. Smaller companies being overwhelmed
a. The need to update continuously and the costs of so doing      C. The huge growth in outsourcing
B. The need for central control with the value of decentralized   d. Increased emphasis in colleges on IT training
decisions
c. Maintaining networks and training for new software             44. An SLA is a (n):
d. Maintaining data and purchasing new hardware                   a. Expert system used by the managers
                                                                  B. Defined performance measure that is specified in the contract
36. Commercial software versions change almost every year,        c. Memorandum of understanding
requiring more:                                                   d. Simulation technique
a. Hardware that is needed
B. Training for users                                             45. With information systems, four basic areas subject to
c. Software that is needed                                        centralization or decentralization:
d. Word-processed documents                                       A. Hardware, software, data, and staffing
                                                                  b. Security, software, data, and hardware
37. Most companies have ___________ track records in              c. Staffing, security, hardware, and software
managing software projects.                                       d. Data, security, staffing, and hardware
a. Excellent            b. Good
C. Poor                 d. Fair                                   46. An advantage to the centralization of hardware is:
                                                                  a. Easier to see and control costs
38. Security administration includes:                             b. Security control and monitoring
a. Installing network hardware and software, diagnosing           c. Ease of maintenance
problems, and designing new networks                              D. Efficient use of resources
B. Training users, testing system configuration, and monitoring
networks for ongoing attacks                                      47. Related to the ability to share data between users,
c. Several levels of analysts and programmers                     another advantage to the centralization of data is:
d. Database design and administration                             a. Easier to see and control costs
                                                                  B. Security control and monitoring
39. The CIO is responsible for:                                   c. Ease of maintenance
a. Installing network hardware and software, and diagnosing       d. Efficient use of resources
problems
b. Database design and administration                             48. An advantage to the centralization of personnel is:
c. Long-run planning in terms of information technology           a. Easier to see and control costs
d. Training users, answering questions, and installing software   b. Security control and monitoring
                                                                  c. Ease of maintenance
40. Network management involves:                                  d. Efficient use of resources
A. Installing network hardware and software, diagnosing
problems, and designing new networks                              49. An advantage to the centralization of software is:
b. Database design and administration                             a. Easier to see and control costs
c. Several levels of analysts and programmers                     b. Security control and monitoring
d. Training users, answering questions, and installing software   c. Ease of maintenance
                                                                  d. Efficient use of resources
41. Both India and Russia have:
a. No educational programs                                        50. MIS workers generally prefer a ________________
b. Lots of jobs for local programmers                             environment.
c. Very few programmers                                           a. Centralized          b. Decentralized
d. Extensive educational programs and few jobs for local          c. Programming          d. Controlled
programmers
                                                                  51. The primary advantage to decentralized MIS staffing is
42. End-user support consists of:                                 that:
a. Installing network hardware and software, diagnosing           a. The support is closer to the users
problems, and designing new networks                              b. It is less expensive
b. Database design and administration                             c. The MIS staff on location can maintain hardware

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d. Networks will fail less frequently                               b. its relationship with politicians
                                                                    c. relationships with customers, employees, and other
Chapter 14                                                          companies
                                                                    d. its operational scope
1. Advances in technology can result in:
a. lower prices                                                     10. Businesses, employers, and governments all have reasons
b. loss of privacy                                                  to collect data on individuals; the challenge lies in
c. improved products and services                                   a. making these data available to the public
d. all of the above                                                 b. balancing these needs with the privacy of the individuals
                                                                    c. forbidding these organizations to release these data until 50
2. Which of the following statements about privacy is               years after the collection date
FALSE?                                                              d. creating laws that limit the use of personal data
a. all societies require citizens to give up some privacy
b. consumers have little control over the collection of personal    11. Consumers have _______ control over the collection of
data                                                                personal data, but also they will _______ give up their
c. federal laws guarantee US citizens a right to privacy            privacy.
d. US privacy rights are weaker than privacy rights in the          a. strong, easily         b. little, hardly
European Union                                                      c. little, cheaply        d. strong, hardly

3. In the U.S. employers have the right to do all of the            12. By most indications, new jobs created by technology tend
following EXCEPT:                                                   to be ________ than those replaced by technology.
a. monitor online activities of employees at any time               a. higher paying, physically safer and less repetitive
b. open and read employee email                                     b. less paying but with higher status
c. listen in on phone conversation without letting employees        c. more physically dangerous and less paying
know                                                                d. higher paying but lower status
d. install online tracking devices that log web sites visited by
employees                                                           13. As individuals, you need to remember that changing
                                                                    technology can eliminate virtually any job; so the best plan
4. Which of the following statements is TRUE?                       is
a. in the EU it is legal to use email to distribute unsolicited     a. to change your job every five years
information to potential customers                                  b. to find a job with higher pay but lower status
b. in the US it is illegal to use email to distribute unsolicited   c. to continue your education and learn new skills
information to potential customers                                  d. to learn how to predict the future
c. anonymity servers are not allowed in the US
d. proxy servers are not allowed in the US                          14. To the worker, the most obvious benefit from
                                                                    telecommuting lies in _______, but the biggest drawback lies
5. The Digital Millenium Copyright Act (DMCA)                       in _______.
a. makes it illegal to copy any copyrighted material                a. getting away from the job, interruptions and distractions at
b. makes it illegal to circumvent copy protection mechanisms        home
c. develops a mechanism to ease digital sharing of intellectual     b. reducing the time and expense of commuting to work, the loss
property                                                            of personal contact
d. was designed to facilitate finding and sharing digital music     c. flexible schedule, requiring strong motivation
                                                                    d. no loyalty to any particular firm, little or no job security
6. The property rights laws that prevent others from
developing similar products are:                                    15. One key factor of the Internet is that it is impossible to
a. copyrights            b. patents                                 a. find and share digital music files
c. trademarks            d. trade secret protection                 b. find a fellow enthusiast within a particular area
                                                                    c. destroy knowledge once it has been created
7. Consultants are often asked to sign non-disclosure               d. post illegal contents on the Internet
agreements (NDAs) to ensure that they observe:
a. copyright laws                  b. patent protection             16. With digital rights management, when digital content is
c. trademark protection            d. trade secret protection       purchased, it
                                                                    a. is encrypted with a set of rules that tie it to the purchaser’s
8. The most challenging property rights to apply and enforce        computer
are:                                                                b. is free to everyone
a. copyrights            b. patents                                 c. can be used only with Microsoft media software
c. trademarks            d. trade secret protection                 d. allows the purchaser to circumvent any copyright protection
                                                                    scheme
9. Companies influence the world through
a. its size and economic power

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17. Web sites can be created by anyone, so it becomes harder        25. As commerce moves to digital form, our traditional
for the public to                                                   views on crime might
a. sell fiction novels over the Internet                            a. apply to information era crimes
b. tell the difference between mainstream, professional             b. not apply to crime related to information
commentary and radical extremists                                   c. not exist
c. pay to the publishers, distributors and retailers                d. not be changed
d. see a computer-generated image on the Internet
                                                                    26. By making it more difficult for people to copy a work,
18. When working in a global environment, access to the             the copyright laws essentially
Internet requires more than simple PCs; it requires                 a. stop all illegal data sharing activities
a. foreign currency tools                                           b. protect copyright holders
b. a language translation tools                                     c. raise the cost of stealing a copyrighted work
c. using the most powerful online FX converter                      d. protect everyone’s right to use the work
d. high-bandwidth connections to other nations
                                                                    27. Technology is generally believed to
19. The _____ is one of the most crucial requirements to            a. increase the total number of jobs available
being a programmer.                                                 b. decrease the total number of jobs available
a. programming skill      b. college degree                         c. have no affect on total number of jobs available
c. trust                  d. professional certificate               d. have no affect on the structure of jobs available

20. Programmers have an obligation to test everything they          28. One important social issue is providing access to
do, which means that companies have                                 technology for everyone. It would be easy to create a world
a. the responsibility to provide adequate time for programmers      consisting of
to perform the test                                                 a. rich and poor in terms of salaries and wages
b. to hire other programmer to test the work                        b. haves and have-nots in terms of access to information
c. the responsibility to detect the errors before the test          c. high and low in terms of working status
d. the right to fire the programmer if the test identify errors     d. developed and developing in terms of nations

21. Firms must ensure privacy of data, which means that
companies will
a. collect any data from the customers but cannot sell it
b. collect only the data that they truly need and must safeguard
the data so that only those who need it for their job have access
c. allow consumers to remove their data from companies’
database
d. allow consumers to retrieve their data from companies’
database

22. If a company wants to work with another company or a
consultant, it is a good idea to have the outsiders sign a(n)
________, in which they agree not to reveal any information
you share.
a. transaction contract             b. employment contract
c. copyright protection agreement d. nondisclosure agreement

23. The federal white paper _________ contains an extended
discussion of copyright issues and possible federal solutions.
a. Intellectual Property and the National Information
Infrastructure
b. Information Infrastructure Task Force
c. Feist Publications v. Rural Telephone Service
d. U.S. Copyright Law

24. The _________ generally provides people with the ability
to obtain information held by government agencies.
a. Fair Credit Reporting Act
b. Privacy Protection Act of 1980
c. Freedom of Information Act
d. CAN-SPAM Act of 2003


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